CHAPTER IV INDIVIDUAL COMPANY...

65

CHAPTER IV

INDIVIDUAL COMPANY PERFORMANCE

4.1 INTRODUCTION:-

The present study is an assessment of financial performance of selected sectors of

India and UAE. An attempt is made to test the liquidity, leverage and profitability of

the sample companies for selected sectors for both the countries.

The chapter focuses upon the financial performance of individual company for the

period of study. The data was collected from the company’s annual report, final a/c

published by Stock Exchange Foundation of India and for United Arab Emirates

(UAE).

The data for the selected companies was feed to the computer and several ratios

pertaining to profitability, Liquidity, Activity and Leverage have been computed. The

analysis is based on various statistical tools such as average variance percentage

coefficient variance, standard deviation, X2 etc.

The present chapter deals with analysis of individual company performance during

the period under study. Each ratio computed for the individual companies is presented

in the table showing the year along with percentage change over the year as per fixed

base and chain base methods. The table also indicates the mean of respective ratio for

the period under study and co-efficient of variation, standard deviation,X2.

Following Ratios are calculated for financial performance for individual company for

each selected sectors for both the countries.

66

Table No.4.1

ICICI BANK OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT

RATIO % CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.66 100.00 100.00 -0.51

0.2601

2002 1.32 200.00 200.00

0.15 0.0225

2003 1.12 169.96 169.96 -0.05

0.0025

2004 1.48 224.24 224.24 0.31

0.0961

2005 1.20 181.81 181.81 0.03

0.0009

2006 1.16 175.75 175.75 -0.01

0.0001

2007 1.25 189.39 189.39 0.08

0.0064

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual report for both the Countries i.e. India and United Arab Emirates.

Mean: - 1.17

S.D:- 0.06

C.V:- 5.13 The Current Ratio pertaining to ICICI Bank is shown in the Table No. 4.1 for the

period 2001 to 2007. The ratio has moved in the range of 0.66 and 1.48. In the year

2004 it was highest at 1.48. The average of the current ratio for the period is 1.17 and

standard deviation 0.06. And the coefficient of variation is observed to be at 5.13

percent.

67

Table No.4.2 CANARA BANK OF INDIA

CURRENT ASSETS TO CURRENT LIABILITIES CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.01 100.00 100.00 -0.69

0.4761

2002 1.04 102.97 102.97

-0.66 0.4356

2003 1.15 113.86 110.58 -0.55

0.3025

2004 1.39 137.62 120.87 -0.31

0.0961

2005 1.82 180.19 130.94 0.12

0.0144

2006 3.01 306.93 165.38 1.31

1.7161

2007 2.54 251.48 84.39 0.84

0.7056

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates.

Mean: - 1.70

S.D:- 0.54

C.V:- 31.76 In case of Canara Bank India Ltd the Current Ratios for the period 2001 – 2007 are

shown in Table No. 4.2. The average Current Ratio is 1.70. In the year 2006 and 2007

it is observed that the current ratio have exceeded the ideal value of 2:1. It shows the

company has better short term liquidity position for seven years. During the year 2006

the growth rate as per fixed base was highest at 306.93. The standard deviation is

computed at 0.54 and coefficient of variation is calculated at 31.76 percent.

68

Table No.4.3

STATE BANK OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.17 100.00 100.00 0.08

0.0064

2002 1.15 98.29 98.29

0.06 0.0036

2003 1.10 94.01 95.65 0.01

0.0001

2004 1.10 94.01 100.00 0.01

0.0001

2005 0.98 83.76 89.09 -0.11

0.0121

2006 1.08 92.30 110.20 -0.01

0.0001

2007 1.10 94.01 101.85 0.01

0.0001


Mean: - 1.09

S.D:- 0.0032

C.V:- 0.29

Table No. 4.3 highlight the current ratios of State Bank of India for the period of 2001

– 2007. It is observed that the Current Ratio has ranged in between 0.98 and 1.17.

The highest Current Ratio was shown in the year 2001. During the year 2002 as per

fixed base the ratio was highest at 98.29 percent for the year 2005 and 2006 the

deviation from mean was negative. The average Current Ratio for the period was 1.09

and Standard deviation 0.0032. The coefficient of variation at 0.29

69

Table No.4.4

ARAB BANK [ARABBANK] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.39 100.00 100.00 -0.03

0.009

2002 1.74 125.18 125.18

0.32 0.1024

2003 0.69 49.64 39.66 -0.73

0.5329

2004 1.25 89.93 181.16 -0.17

0.0289

2005 1.98 142.45 158.40 0.56

0.3136

2006 1.95 140.29 98.48 0.53

0.2809

2007 0.97 69.78 49.74 -0.45

0.2025


Mean: - 1.42

S.D:- 0.208

C.V:- 14.65

The current ratio pertaining to Arab Bank is shown in the Table No. 4.4 for the period

2001 to 2007. The ratio has moved in the range of 0.69 and 1.98. In the year 2005 it

was highest. The average of the current ratio for the period is 1.42 and Standard

Deviation 0.20. The coefficient of variation is at 14.65 percent.

70

Table No.4.5 ABU DHABI COMMERCIAL BANK [ADCB] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.07 100.00 100.00 -0.17

0.0289

2002 1.33 124.30 124.30

0.09 0.0081

2003 1.15 110.28 86.47 -0.09

0.0081

2004 1.47 137.38 127.83 0.23

0.0529

2005 1.53 142.99 104.08 0.29

0.0841

2006 1.06 99.06 69.28 -0.18

0.0324

2007 1.09 101.86 102.83 -0.15

0.0225


Mean: - 1.24

S.D:- 0.033

C.V:- 2.66 The above given Table No. 4.5 reveals the year wise Current Ratios of Abu Dhabi

Commercial Bank for the period of study. The average for the period of the study was

1.24 and Standard Deviation 0.033. The Coefficient of variation is determines at 2.66

percent. It is further observed that the current ratio for all the years under study was

more than 1.

71

Table No.4.6 EMIRATES BANK [EBI] UAE


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.87 100.00 100.00 0.44

0.1936

2002 1.16 62.03 62.03

-0.27 0.0729

2003 1.29 68.98 111.21 -0.14

0.0196

2004 0.87 46.52 67.44 -0.56

0.3136

2005 0.69 36.89 79.31 -0.74

0.5476

2006 1.38 73.79 200.00 -0.05

0.0025

2007 2.79 149.19 202.17 1.36

1.8496

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Rreport for both the Countries i.e. India and United Arab Emirates.

Mean: - 1.43

S.D:- 0.43

C.V:- 30.07 The yearly Current Ratio of Emirates Bank UAE is given in Table No. 4.6. The

average Current Ratio is at 1.43. In the year 2007 the current ratio is observed to have

reached the level of 2:1. It shows the company has better short term liquidity position.

During the year 2007 the growth rate as per fixed base was highest at 149.19. The

standard deviation is computed at 0.43 and coefficient of variation is calculated at

30.07 percent.

72

Table No.4.7 NATIONAL BANK OF ABU DHABI [NBAD] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.25 100.00 100.00 -0.43

0.1849

2002 0.35 140.00 140.00

-0.33 0.1089

2003 0.75 300.00 214.29 0.07

0.0049

2004 0.94 376.00 125.33 0.26

0.0676

2005 0.36 144.00 38.30 0.32

0.1024

2006 1.09 436.00 302.78 0.41

0.1681

2007 1.06 424.00 97.25 0.38

0.1444


Mean: - 0.68

S.D:- 0.11

C.V:- 16.32

Table No. 4.7 depicts the yearly Current Ratio for National Bank of Abu Dhabi, UAE

for the period of study. The bank has recorded highest Current Ratio was at 1.09 for

2006. The average Current Ratio for the period at 0.68 and Standard Deviation 0.11

and Coefficient of Variation is found to be 16.13 percent.

73

Table No.4.8 CURENT RATIO

MEANS AND COEFFICIENT OF VARIATION BANKING SECTOR ANALYSIS (INDIA & UAE)

[Period of Study 2001 – 2007] Sr. No BANKS NAME Means [SD/M*100]

CV 1

INDIA ICICI BANK 1.17 5.13

2 CANARA BANK 1.70 31.76 3 STATE BANK OF INDIA 1.09 0.29

4

UAE

ARAB BANK [ARABBANK]

1.42 14.65

5 ABU DHABI COMMERCIAL BANK (ADCB)

1.24 2.66

6 EMIRATES BANK [EBI] 1.43 30.07

7 NATIONAL BANK OF ABU DHABI (NBAD)

0.68 16.32


CONCLUSION

(BANKING SECTOR)

The table No. 4.8 summarises the mean of current ratios of sample banks selected

from India and UAE for the period of study. It also gives the C.V values for the

sample banks.

It is observed that none of the banks has an ideal current ratio of 2:1. At the same

majority of the banks have current ratio above 1:1. It means they are maintaining

assets higher than liabilities. This shows that the banking companies are keen on

maintaining not much risky but lower current ratio.

The highest current ratio is observed in case of Canara Bank at 1.70 for the period of

study. However, the variation too is highest for the bank, indicating the high

fluctuations in the current ratio over the period of study. Abu Dhabi Commercial

Bank has average Current ratio 1.24. The lowest Current ratio is observed by the

National Bank of Abu Dhabi at 0.68. This depicts the risky financial health of the

bank. The highest variability is found in Canara bank India and Emirates Bank UAE

while lowest variation was recorded for SBI India and ADCB (UAE).

74

Table No.4.9 AMBUJA CEMENTS LTD. INDIA


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.83 100.00 100.00 -0.14

0.0196

2002 1.24 149.40 149.40

0.27 0.0729

2003 1.15 138.55 92.74 0.18

0.0324

2004 0.88 106.02 76.52 -0.09

0.081

2005 0.77 92.77 87.50 -0.20

0.04

2006 1.15 138.55 149.35 0.18

0.0324

2007 0.80 96.38 69.57 -0.17

0.0289


Mean: - 0.97

S.D:- 0.03

C.V:- 3.09

Table No. 4.9 highlights the yearly Current Ratio of Ambuja Cement Ltd, India for

year 2001 to 2007. The highest current ratio was recorded in the year 2002 (1.24). The

average current ratio for the period is 0.97 and Standard Deviation 0.03, Coefficient

of variation is 3.09 percent.

75

Table No.4.10

DECCAN CEMENTS LTD. INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.25 100.00 100.00 -0.68

0.4624

2002 0.98 392.00 392.00

0.05 0.0025

2003 0.42 168.00 42.86 -0.51

0.2601

2004 0.52 208.00 123.81 -0.41

0.1681

2005 1.46 584.00 280.77 0.53

0.2809

2006 1.67 668.00 114.38 0.74

0.5476

2007 1.27 508.00 76.05 0.34

0.1156


Mean: - 0.93

S.D:- 0.25

C.V:- 26.88 The Current Ratio for Deccan Cement Ltd. India is summarised in table no 4.10

above. It is observed that the Current Ratio ranged in between 0.25 and 1.67. The

average Current Ratio is at 0.93 and Standard Deviation 0.25. The coefficient of

variation was computed at 26.88 percent. The highest growth rate of Current Ratio

was recorded in 2006 at 1.67 percent. Since 2002 it was above its base. The deviation

from mean was negative for year 2001, 2003 and 2004. The coefficient and variation

was determined to be 26.88.

76

Table No.4.11 J K LAKSHMI CEMENTS LTD. INDIA


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.18 100.00 100.00 -0.15

0.0225

2002 1.12 94.92 94.92

-0.21 0.0441

2003 1.30 110.16 116.07 -0.03

0.0009

2004 1.28 108.47 98.46 -0.05

0.0025

2005 1.35 114.40 105.47 0.02

0.0004

2006 1.49 126.27 110.37 0.16

0.0256

2007 1.61 136.44 108.05 0.28

0.0784


Mean: - 1.33

S.D:- 0.02

C.V:- 1.50 Table No. 4.11 gives the yearly Current Ratio of JK Lakshmi Cement Ltd India for

the period of study. The Current Ratio is observed to have ranged in between 1.12 and

1.61. The highest Current Ratio (1.61) was shown in 2007. During the year 2007 as

per fixed base, the growth in current ratio was highest at 136.44 percent. The Mean

Current Ratio is 1.33 with a standard deviation of 0.02. The coefficient is determined

at 1.50

77

Table No.4.12

GULF CEMENT [GCEM] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.38 100.00 100.00 -0.47

0.2209

2002 0.47 123.68 123.68

-0.38 0.1444

2003 0.64 168.42 136.17 -0.21

0.0441

2004 0.96 252.63 150.00 0.11

0.0121

2005 0.15 39.47 15.63 -0.70

0.49

2006 1.61 423.68 1073.33 0.76

0.5776

2007 1.74 457.89 108.07 0.89

0.7921


Mean: - 0.85

S.D:- 0.33

C.V:- 38.82

Table No. 4.12 shows the Current Ratio for the period of 2001 – 2007 for Gulf

Cement UAE. From 2001 to 2004 consistent increase in current ratio is observed.

However year 2005 shows a steep fall in the current ratio (0.15). However, the

company is observed to have recovered in year 2006 with significant increase have

recovered in the year 2006 with significant increase in current ratio to 1.61, the

average current ratio is 0.85 and Standard Deviation 0.33 and Coefficient of Variation

was 38.82.

78

Table No.4.13 NATIONAL CEMENT [NCC] UAE


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.57 100.00 100.00 -0.26

0.0676

2002 0.96 168.42 168.42

0.13 0.0169

2003 0.34 59.64 35.42 -0.49

0.2401

2004 0.87 153.63 255.88 0.04

0.0016

2005 0.44 77.19 50.57 -0.39

0.1521

2006 1.28 224.56 290.91 0.45

0.2025

2007 1.36 238.59 106.25 0.53

0.2809

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. .

Mean: - 0.83

S.D:- 0.14

C.V:- 16.87 The above Table No. 4.13 reveals that the Current Ratio for National Cement UAE

Company has ranged in between 0.34 and 1.36, for the period of study (2001 -2007)

the average Current Ratio was 0.83 and Standard Deviation at 0.14. The Coefficient

of Variation was computed at 16.87.

79

Table No.4.14 SHARJAH CEMENT [SCIDC] OF UAE


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.26 100.00 100.00 -0.21

0.0441

2002 0.96 76.19 76.19

-0.51 0.2601

2003 1.37 108.73 142.71 -0.10

0.01

2004 1.68 133.33 122.63 0.21

0.0441

2005 2.09 165.87 124.40 0.62

0.3844

2006 1.64 130.15 78.47 0.17

0.0289

2007 1.31 103.96 79.88 -0.16

0.0256


Mean: - 1.47

S.D:- 0.11

C.V:- 7.48 The yearly Current Ratio of Sharjah Cement Company Ltd. UAE are summarised in

Table No. 4.14. The current ratios are observed to have ranged in between 0.96 and

2.09. The highest Current Ratio (2.09) was shown in 2005. During the year 2005, as

per fixed base the ratio was highest at 165.87 percent. For the year 2001, 2002, 2003

and 2007 the Deviation of means was negative. The average Current ratio was 1.47

and Standard Deviation 0.11. And the Coefficient of Variation was 7.48

80

Table No. 4.15 CURRENT RATIO

MEANS AND COEFFICIENT OF VARIATION CEMENT SECTOR ANALYSIS INDIA & UAE

[Period of Study 2001 – 2007] Sr. No

COMPANIES NAME MEANS [SD/M*100]

CV

1

INDIA

AMBUJA CEMENT LTD.

0.97 3.09

2 DECCAN CEMENT LTD.

0.93 26.88

3 JK LAKSHMI CEMENT LTD. 1.33 1.50

4

UAE

GULF CEMENT [GCEM]

0.85 38.82

5 NATIONAL CEMENT [NCC]

0.83 16.87

6 SHARJAH CEMENT [SCIDC]

1.47 7.48

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (CEMENT SECTOR) The table No.4.15 summaries the mean of current ratios of Cement sector, cement

companies selected from India and UAE for the period of study. It also gives the C V

values for the sample Cement companies

The highest current ratio is observed in case of Sharjah cement of UAE at 1.47. Out of

the total six companies under study, four companies are observed to have average

Current Ratio less than 1. This shows maximum utilisation of debt and not locking of

capital by these companies. As a convention 2:1 is considered as most desired current

ratio. But the business environment, nature of business and prevailing practices are

determinants of level of desired current ratio. During the period of Study the highest

variability is observed in Deccan Cement India and Gulf Cement UAE, and lowest

variation was recorded for JK Lakshmi Cement India and Sharjah Cement UAE.

Highest variation indicated fluctuation and lowest indicated stabilities in current ratios

81

Table No.4.16

NATIONAL INSURANCE COMPANY OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.05 100.00 100.00 -0.05

0.0021

2002 1.03 98.10 98.10

-0.07 0.0043

2003 1.06 100.95 102.91 -0.04

0.0013

2004 1.08 102.86 101.89 -0.02

0.002

2005 1.11 105.71 102.78 0.01

0.0002

2006 1.15 109.52 103.60 0.05

0.0029

2007 1.19 113.33 103.48 0.09

0.0089


Mean: - 1.10

S.D:- 0.0028

C.V:- 0.26 The year-wise Current Ratios for National Insurance India as presented in Table No.

4.16. It was highest at 1.19 in 2007. It was lowest at 1.03 in 2002. From the year 2005

to 2007 upward trend is observed. The average for the period is 1.10 and Standard

Deviation 0.0028. The Coefficient of Variation is at 0.26 percent.

82

Table No.4.17

ORIENTAL INSUREANCE COMPANY OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.08 100.00 100.00 0.29

0.0841

2002 4.09 196.63 196.63

2.30 5.29

2003 1.09 52.40 26.65 -0.70

0.49

2004 1.02 49.03 93.58 -0.77

0.5929

2005 1.17 56.25 114.71 -0.62

0.3844

2006 1.45 69.71 123.93 -0.34

0.1156

2007 1.69 81.25 116.55 -0.10

0.01


Mean: - 1.79

S.D:- 1.00

C.V:- 55.87 Table No. 4.17 shows the year-wise Current Ratio of Oriental Insurance India for the

period of study. The current ratio during the period of study has ranged in between

1.02 and 4.09. The average Current Ratio is computed at 1.79. The Standard

Deviation is 1.00. The Coefficient of Variation is at 55.87 percent.

83

Table No.4.18

UNITED INDIA INSURANCE COMPANY CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.13 100.00 100.00 0.96

0.9216

2002 1.31 61.50 61.50

0.14 0.0196

2003 1.23 57.74 93.89 0.06

0.0036

2004 0.98 46.00 79.67 -0.19

0.00361

2005 0.93 43.66 94.90 -0.24

0.0576

2006 0.92 43.19 98.92 -0.25

0.0625

2007 0.70 32.86 76.09 -0.47

0.2209


Mean: - 1.17

S.D:- 0.19

C.V:- 16.24

The Current Ratio for the year 2001 -2007 of United India Insurance Company is

given in Table No. 4.18. The company recorded the highest current ratio 2.13 in year

2001, thereafter a downward trend is observed. The average Current Ratio for the

period under study is 1.17. And Standard Deviation 0.19 and Coefficient of Variation

is computed at 16.24 percent.

84

Table No.4.19

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.75 100.00 100.00 -0.28

0.0784

2002 0.69 92.00 92.00

-0.34 0.1156

2003 0.85 113.33 123.19 -0.18

0.0324

2004 0.71 94.66 83.53 -0.32

0.1024

2005 1.26 168.00 177.46 0.23

0.0529

2006 1.09 145.33 86.51 0.06

0.0036

2007 1.87 249.33 171.56 0.84

0.7056


Mean: - 1.03

S.D:- 0.16

C.V:- 15.53

Table No. 4.19 gives the yearly Current Ratios of Abu Dhabi National Insurance

Company UAE for the period of study. The Current Ratio range in between 0.71 and

1.87. The average Current Ratio is 1.03 and Standard Deviation is at 0.16. The

Coefficient of Variation was computed at 15.53.

85

Table No.4.20

ALLIANCE INSURANCE [ALLIANCE] COMPANY OF UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.56 100.00 100.00 -0.13

0.01727

2002 0.84 150.00 150.00

0.15 0.02207

2003 0.96 171.43 114.29 0.27

0.07213

2004 0.73 130.36 76.04 0.04

0.00149

2005 0.68 121.43 93.15 -0.01

0.00013

2006 0.32 57.14 47.06 -0.37

0.13796

2007 0.75 133.93 234.38 0.06

0.00343


Mean: - 0.69

S.D:- 0.04

C.V:- 5.26 Table No. 4.20 gives the Current Ratio of Alliance Insurance Company UAE for the

period 2001 to 2007. The table reveals that the Current Ratio of Alliance Insurance

was highest at 0.96 in 2003. It was lowest in the year 2006. It is further observed that

the Current Ratio for the entire study period was less than 1. The average Current

Ratio for the period was 0.69 and Standard Deviation at 0.04. The Coefficient of

Variation is at 5.26

86

Table No.4.21

DUBAI NATIONAL INSURANCE [DNIR] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.35 100.00 100.00 0.23

0.0529

2002 0.36 26.67 26.67

-0.76 0.5776

2003 1.35 100.00 375.00 0.23

0.0529

2004 2.36 174.81 174.81 1.24

1.5376

2005 0.18 13.33 7.63 -0.94

0.8836

2006 1.55 114.81 861.11 0.43

0.1849

2007 0.69 51.11 44.52 -0.43

0.1849


Mean: - 1.12

S.D:- 0.50

C.V:- 44.64 The Current Ratio for 2001 -2007 of Dubai National Insurance, UAE are summarised

in Table No.4.21. It is observed that the Current Ratio was 0.18 in 2005 and 2.36 in

2004. The average Current Ratio was at 1.12. The Deviation from mean was negative

in year 2002, 2005 and 2007. The Standard Deviation was computed at 0.50 and

Coefficient of Variation was calculated at 44.64.

87

Table No.4.22

UNITED INSURANCE [UIC] COMPANY OF UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.54 100.00 100.00 0.31

0.09699

2002 0.63 116.67 116.67

-0.22 0.04903

2003 0.69 127.78 109.52 -0.16

0.02606

2004 0.88 162.96 127.54 0.03

0.00082

2005 1.09 201.85 123.26 0.24

0.05692

2006 1.01 187.04 92.66 0.16

0.02514

2007 1.12 207.41 110.89 0.27

0.0721


Mean: - 0.85

S.D:- 0.05

C.V:- 5.88 Table No. 4.22 depicts the Current Ratio values for 2001 -07 of United Insurance

UAE. The average Current ratio 0.85 and Standard Deviation is at 0.05, The

Coefficient of Variation at 5.88.

88

Table No. 4.23

CURRENT RATIO MEANS AND COEFFICIENT OF VARIATION

INSURANCE SECTOR ANALYSIS [INDIA & UAE] [Period of Study 2001 – 2007]

Sr. No COMPANIES NAME MEANS

[SD/M*100] CV

1

INDIA

NATIONAL INSUREANCE

1.10 0.26

2 ORIENTAL INSUREANCE

1.79 55.87

3 UNITED INDIA INSURANCE.

1.17 16.24

4

UAE

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC]

1.03 15.53

5 ALLIANCE INSURANCE [ALLIANCE]

0.69 5.26

6 DUBAI NATIONAL INSURANCE [DNIR]

1.12 44.64

7 UNITED INSURANCE [UIC]

0.85 5.88

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (INSURANCE SECTOR)

Table No. 4.23 highlights the Mean Current Ratio of Insurance sector under study. Of

the sample for individual companies, the highest Mean Current Ratio and Coefficient

of Variation are observed for Oriental insurance of India and Dubai National

Insurance, UAE. It is further observed that majority of the Insurance Companies have

current ratio above 1:1. It means they are keeping assets higher than liabilities.

89

Table No.4.24 CADILA HEALTHCARE COMPANY OF INDIA

CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT

RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.98 100.00 100.00 0.24

0.0576

2002 1.45 73.23 73.23

-0.29 0.0841

2003 2.59 130.80 178.62 0.85

0.7225

2004 1.38 69.69 53.28 -0.36

0.1296

2005 1.82 91.91 131.88 0.08

0.0064

2006 1.87 94.44 102.75 0.13

0.0169

2007 1.10 55.55 58.82 -0.64

0.4096


Mean: - 1.74

S.D:- 0.20

C.V:- 11.49 Table No. 4.24 gives the Current Ratio for the period 2001-2007 of Cadila Health

Care Company India. It was observed that the Current Ratio was 1.10 in 2007, but in

2003 highest ratio (2.59) was recorded. The average current ratio for period was 1.74

and Standard Deviation 0.20 The Coefficient of variation is computed at 11.49

percent.

90

Table No.4.25

CIPLA LTD. COMPANY OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.29 100.00 100.00 0.11

0.0121

2002 1.16 89.92 89.92

-0.02 0.0004

2003 1.07 82.95 92.24 -0.11

0.0121

2004 1.03 79.84 96.26 -0.15

0.0225

2005 0.98 75.97 95.15 -0.20

0.04

2006 1.54 119.38 157.14 0.36

0.1296

2007 1.24 96.12 80.52 0.06

0.0036


Mean: - 1.18

S.D:- 0.03

C.V:- 2.54

Table no. 4.25 states the year – wise Current Ratio values of “Cipla Pharma Co. Ltd

India” for the period of study is observed to have moved in between 0.98 and 1.54

during the period under study. Highest Current Ratio was recorded in the year 2006.

The Average Current Ratio for the period was 1.18 and Standard Deviation 0.03,

Coefficient of Variation was at 2.54.

91

Table No.4.26 SUN PHARMA. COMPANY OF INDIA


CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.88 100.00 100.00 0.63

0.3969

2002 1.05 55.85 55.85

-0.20 0.04

2003 0.45 23.93 42.86 -0.80

0.64

2004 1.83 97.34 406.67 0.58

0.3364

2005 0.98 52.12 53.55 -0.27

0.0729

2006 1.74 92.53 177.55 0.49

0.2401

2007 0.82 43.61 47.13 -0.43

0.1849


Mean: - 1.25

S.D:- 0.27

C.V:- 21.60 The above given Table No. 4.26 details the yearly Current Ratio of “Sun Pharma”

Company India for the period under study. The Current Ratio is observed to range

between 0.45 and 1.88 during the period of study. The average Current Ratio was

1.25. The standard deviation at 0.27 and coefficient variation is at 21.60 percent.

92

Table No.4.27 GULF MEDICAL PROJECTS [GMPC] COMPANY OF UAE


CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.35 100.00 100.00 -0.48

0.2304

2002 0.47 134.29 134.29

-0.36 0.1296

2003 0.96 274.29 204.26 0.13

0.0169

2004 0.37 105.71 38.54 -0.46

0.2116

2005 0.96 274.29 259.46 0.13

0.0169

2006 1.83 522.86 190.63 1.00

0.1

2007 0.89 254.29 48.63 0.06

0.0036


Mean: - 0.83

S.D:- 0.23

C.V:- 27.71 The Current Ratio of a “Gulf Medical” UAE for year 2001 – 2007 is given in Table

No. 4.27. The Current Ratio has ranged between 0.35 and 1.83. The Average Current

Ratio is at 0.83 and Standard Deviation was 0.23 The Coefficient of Variation is at

27.71. The highest growth rate (522.86) was recorded in 2006. It is also observed that

the deviations from Mean are negative for year 2001, 2002 and 2004.

93

Table No.4.28

GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] COMPANY OF UAE


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.56 100.00 100.00 -0.40

0.16

2002 0.74 132.14 132.14

-0.22 0.0484

2003 0.63 112.50 85.14 -0.33

0.1089

2004 0.98

175.00 155.56

0.02

0.0004

2005 0.44 78.57 44.90 -0.52

0.2704

2006 2.14 382.14 486.36 1.18

1.3924

2007 1.25 233.21 58.41 0.29

0.0841


Mean: - 0.96

S.D:- 0.29

C.V:- 30.21

Table No. 4.28 provides the year-wise Current Ratio of “Gulf Pharmaceutical” UAE

for the period of study. The Current Ratio has ranged between 0.44 and 2.27. The

Average current ratio is 0.96 and Standard Deviation is at 0.29. The Coefficient of

Variation is 30.21 percent. In above table in the year 2006 has reached the level of 2:1

which means the company has better short term Liquidity Position. During this one

year the growth rate was highest.

94

Table No. 4.29


PHARMACEUTICAL SECTOR ANALYSIS [INDIA & UAE] [Period of Study 2001 – 2007]


[SD/M*100] CV

1

INDIA

CADILA HEALTH CARE

1.74 11.49

2 CIPLA LTD.

1.18 2.54

3 SUN PHARMA.

1.25 21.60

4

UAE

GULF MEDICAL PROJECTS [GMPC]

0.83 27.71

5 GULF PHARMACEUTICAL INDUSRIES [JULPHAR]

0.96 30.21


CONCLUSION (PHARMACEUTICAL SECTOR) The mean Current Ratios of Pharmaceutical sector for individual company

performance for both the countries India and United Arab Emirates (UAE) are given

in Table No.4.29. The Indian pharmaceutical companies are observed to be

maintaining higher Current Ratio than the Pharmaceutical companies from UAE. The

India Pharma company’s understudies have current ratio above 1. While those from

United Arab Emirates (UAE) companies are working under high risk belt with current

ratio less than 1.

95

Table No.4.30

TATA COMMUNICATION OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.83 100.00 100.00 -0.05

0.0025

2002 0.96 115.66 115.66

0.08 0.0064

2003 0.92 110.84 95.83 0.04

0.0016

2004 0.84 101.20 91.30 -0.04

0.0016

2005 0.82 98.80 97.62 -0.06

0.0036

2006 0.95 114.46 115.85 0.07

0.0049

2007 0.82 98.80 86.32 -0.06

0.0036


Mean: - 0.88

S.D:- 0.0034

C.V:- 0.39 The Current Ratio of “Tata Communication as presented in Table No. 4.30 pertains to

the period from 2001 to 2007. It is observed that the company is maintaining less than

1 current ratio for the entire period of study. The Average Current Ratio was 0.88 and

Standard Deviation was 0.0034. The Coefficient of Variation was 0.39.

96

Table No.4.31 BHARTI AIRTEL LTD. INDIA


CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 ---- ----- ------ -----

------

2002 2.05 100.00 100.00

-0.51 0.2601

2003 1.09 53.17 53.17 -1.47

2.1609

2004 5.44 265.36 499.08 2.88

8.2944

2005 1.25 60.97 22.98 -1.31

1.72161

2006 2.86 139.51 228.80 0.30

0.09

2007 2.67 130.24 93.36 0.11

0.0121


Mean: - 2.56

S.D:- 2.09

C.V:- 81.64

The Table No. 4.31 depicts the current ratio values for the years 2002 – 2007 for

Bharti Airtel Ltd., India. As Bharti Airtel India was established in year 2002, the data

for the year 2002 onwards is used for analysis. The highest growth rate (265.36) of

Current Ratio was recorded in 2004. The average Current Ratio for the period is 2.56

and Standard Deviation is 2.09 The Coefficient of Variation is computed at 81.64

percent.

97

Table No.4.32 MTNL INDIA


CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.06 100.00 100.00 -1.00

1.00

2002 1.08 101.89 101.89

-0.98 0.9604

2003 1.09 102.83 100.93 -0.97

0.9409

2004 2.99 282.08 274.31 0.93

0.8649

2005 2.02 190.57 67.56 -0.04

0.0016

2006 3.04 286.79 150.50 0.98

0.9604

2007 3.15 297.17 103.62 1.09

1.1881


Mean: - 2.06

S.D:- 0.85

C.V:- 41.26 The above given Table No. 4.32 gives the year-wise Current Ratio of “MTNL India”

for the period 2001 – 2007. The Current Ratio as presented in above table reveals that

it was highest at 3.15 in 2007. It was lowest at 1.06 in 2001. From the year of study

2001 to 2007, upwards trend was noticed. The average for the period was 2.06 and

Standard Deviation was 0.85. The Coefficient of variation was at 41.29 percent.

98

Table No.4.33

ETISALAT TELCOM UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 -0.11

0.0121

2002 1.98 126.92 126.92

0.31 0.09

2003 1.63 104.48 82.32 -0.04

0.0016

2004 1.41 90.38 86.50 -0.26

0.0676

2005 1.93 123.71 136.88 0.26

0.0676

2006 1.43 91.66 74.09 -0.24

0.0576

2007 1.78 114.10 124.48 0.11

0.0121


Mean: - 1.67

S.D:- 0.04

C.V:- 2.40 The above given Table No. 4.33 reveals the Current Ratio of “Etisalat Telecom” UAE

for the period of study. The current ratio is observed to have ranged in between 1.41

and 1.98. The average Current Ratio is 1.67 and Standard Deviation is 0.04, The

Coefficient of Variation was computed at 2.40 percent however, it is noted that from

the year 2002, 2005 and 2007 it was above the average.

99

Table No. 4. 34


TELECOMMUNICATION SECTOR ANALYSIS [INDIA &UAE]

[Period of Study 2001 – 2007]

Sr. No

COMPANIES NAME Means

[SD/M*100] CV

1

INDIA

TATA COMMUNICATION 0.88 0.39

2 BHARTI AIRTEL LTD

2.56 81.64

3 MTNL. INDIA 2.06 41.26

4 UAE ETISALAT TELCOM UAE

1.67 2.40


CONCLUSION (TELECOMMUNICATION SECTOR) Table No. 4.34 provides a summary of the Mean Current Ratios of

Telecommunication sector from both India and UAE for individual company

performance. As the standard norm 2:1 is considered as most desired current ratio. It

is observed that Bharati Airtel Ltd and MTNL India have recorded the current ratio at

highest as compare to others. ETISALAT Telecom UAE has average current ratio of

1.67. Tata Communications however is observed to be performing with current ratio

as low as 0.88. The Coefficient of Variation point out stabilities in Indian Telecom

Companies.

100

Table No.4.35 STEEL AUTHORITY OF INDIA LTD


CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.00 100.00 100.00 0.58

0.3364

2002 1.48 74.00 74.00

0.06 0.0036

2003 0.52 26.00 35.14 -0.90

0.81

2004 1.43 71.50 275.00 0.01

0.001

2005 1.67 83.50 116.78 0.25

0.0625

2006 1.27 63.50 76.05 -0.15

0.0225

2007 1.57 78.50 123.62 0.15

0.0225


Mean: - 1.42

S.D:- 0.18

C.V:- 12.68

The above given Table No. 4.35 provides the Current Ratio of “Steel Authority of

India Ltd” for the period of study. The current ratio is recorded lowest at 0.52 in the

year 2003 and the highest in year 2001 at 2.00. The average Current Ratio for the

period was 1.42 and Standard Deviation at 0.18. The Coefficient of Variation is

determined as 12.68 percent.

101

Table No.4.36

STEEL COMPANY GUJARAT LTD. INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.48 100.00 100.00 0.18

0.0324

2002 1.00 67.56 67.57

-0.30 0.09

2003 1.21 81.75 121.00 -0.09

0.0081

2004 1.20 81.08 99.17 -0.10

0.01

2005 1.66 112.16 138.33 0.36

0.1296

2006 1.30 87.83 78.31 -0.01

0.0001

2007 1.31 88.51 100.77 0.01

0.001


Mean: - 1.30

S.D:- 0.04

C.V:- 3.08

Table No.4.36 gives the Current Ratio of “Steel Company Gujarat Ltd” India for the

period 2001 – 2007. The current ratio is found to have moved in between 1.00 and

1.66 during the period of study. The highest Current Ratio was recorded in the year

2005. (1.66). as per fixed base growth rate of Current Ratio was more than 100 in

2005. The Average Current Ratio for the period was 1.30 and Standard Deviation

0.04, The Coefficient of Variation was 3.08 percent.

102

Table No.4.37 BOULDER STEEL [BGD] UAE


CURRENT RATIO

YEARS CURRENT

RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.09 100.00 100.00 0.31

0.0961

2002 0.08 7.34 7.34

-0.71 0.49

2003 0.54 49.54 675.00 -0.24

0.0576

2004 0.63 57.80 116.67 -0.15

0.0225

2005 0.71 65.14 112.70 -0.07

0.49

2006 1.34 122.94 188.73 0.56

0.3136

2007 1.08 99.08 80.60 0.30

0.09


Mean: - 0.78

S.D:- 0.22

C.V:- 28.46

The above Table No. 4.37 presents the Current Ratio of “Boulder Steel Company of

UAE” for 2001 – 2007. The average Current Ratio was 0.78 and Standard Deviation

0.22 The Coefficient of Variation was 28.46. The Deviation from means was negative

for years 2002 -2005.

103

Table No.4.38

JAZEERA STEEL [ATMI] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.86 100.00 100.00 -0.12

0.0144

2002 0.74 86.05 86.05

-0.24 0.0576

2003 0.64 74.42 86.49 -0.34

0.1156

2004 0.79 91.86 123.44 -0.19

0.0361

2005 0.35 4070 44.30 0.63

0.3969

2006 1.64 190.70 468.57 0.66

0.4356

2007 1.88 218.60 114.63 0.90

0.81


Mean: - 0.98

S.D:- 0.27

C.V:- 27.55 The above given Table No. 4.38 reflects the Current Ratio of “Jazeera Steel Company

of UAE” for the period 2001 – 2007. The current ratio in the year 2007 was recorded

highest at 1.88. The Ratio was widely fluctuating over the year 2005 and 2006. The

average Current Ratio for the period was 0.98 and Standard Deviation 0.27. The

Coefficient of Variation was indicated at 27.55 percent.

104

Table No. 4.39 CURRENT RATIO

MEANS AND COEFFICIENT OF VARIATION IRON AND STEEL SECTOR ANALYSIS

[INDIA & UAE] [Period of Study 2001 – 2007]

Sr. No COMPANIES NAME Means

[SD/M*100] CV

1

INDIA

STEEL AUTHORITY OF INDIA LTD.

1.42 12.68

2 STEEL COMPANY GUJARAT LTD.

1.30 3.08

3

UAE

BOULDER STEEL 0.78 28.46

4 JAZEERA STEEL [ATMI]

0.98 27.55

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IRON AND STEEL SECTOR) Table No. 4.39 highlight the Mean Current Ratio for Iron and Steel sector, individual

company performance companies India and United Arab Emirates (UAE). The

Boulder Steel company is found to be undertaking high risk by working with a low

current ratio. It also shows that they are not locking in their funds in the current assets.

The Indian companies are observed to be having higher current ratio than the UAE

steel companies with relatively low coefficient of variation (CV), the Indian

companies confirm their stability as well.

105

Table No.4.40

H C L TECHNOLOGYIES LTD. IT COMPANY OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT

RATIO % CHANGE FIXD BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.78 100.00 100.00 0.79

0.62184

2002 0.58 32.58 32.58

-0.41 0.16927

2003 0.88 49.44 151.72 -0.11

0.01242

2004 1.03 57.87 117.05 0.04

0.00149

2005 0.98 55.06 95.15 -0.01

0.00013

2006 0.96 53.93 97.96 -0.03

0.00099

2007 0.73 41.01 76.04 -0.26

0.06834


Mean: - 0.99

S.D:- 0.12

C.V:- 12.60

Table No. 4.40 show the Current Ratio values of “HCL Technologies Ltd” India for

the period under study. The table states that the current ratio during the period ranged

in between 0.58 and 1.78. The average ratio was 0.99 and Standard Deviation 0.12.

The coefficient variation is determined at 12.60 percent.

106

Table No.4.41

INFOSYS TECH LTD. IT COMPANY OF INDIA


YEARS CURRENT

RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.55 100.00 100.00 -0.51

0.2601

2002 0.46 83.64 83.64

-0.60 0.36

2003 1.04 189.09 226.09 -0.02

0.0004

2004 1.02 185.49 98.08 -0.04

0.0016

2005 1.45 263.63 142.16 0.39

0.1521

2006 1.00 181.81 68.97 -0.06

0.0036

2007 1.92 349.09 192.00 0.86

0.7396


Mean: - 1.06

S.D:- 0.22

C.V:- 20.75

Table No. 4.41 presents the Current Ratio values of “Infosys Tech Ltd” for period

2001 – 2007. The average Current Ratio is 1.06 and Standard Deviation is 0.22. The

coefficient variation is at 20.75.

107

Table No.4.42

WIPRO LTD. IT COMPANY OF INDIA CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.25 100.00 100.00 -0.16

0.0256

2002 1.36 108.80 108.80

-0.05 0.0025

2003 1.48 118.40 108.82 0.07

0.0049

2004 1.38 110.40 93.24 -0.03

0.0009

2005 1.24 99.20 89.86 -0.17

0.0289

2006 1.33 106.40 107.26 -0.08

0.0064

2007 1.83 146.40 137.59 0.42

0.1764


Mean: - 1.41

S.D:- 0.04

C.V:- 2.84 The Current Ratio values of “Wipro Ltd India” for the period 2001 -2007 are given in

Table No. 4.42. The Current Ratio is found moving between 1.24 and 1.83. The

average ratio at 1.41 and Standard Deviation is 0.04. The coefficient variation is at

2.84 percent

108

Table No.4.43

ABU DHABI NATIONAL COMPANY FOR BUILDING MATERIALS [BILDCO] UAE


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.56 100.00 100.00 -0.37

0.1369

2002 1.28 228.57 228.57

0.35 0.1225

2003 1.19 212.50 92.97 0.26

0.0676

2004 0.04 7.14 3.36 -0.89

0.7921

2005 0.63 112.50 1575.00 -0.30

0.09

2006 1.04 185.71 165.08 0.11

0.0121

2007 1.80 321.42 173.08 0.87

0.7569


Mean: - 0.93

S.D:- 0.28

C.V:- 30.11

The year-wise Current ratio values of “Abu Dhabi National Company are presented in

Table No. 4.43. The average Current Ratio is 0.93. While Standard Deviation at 0.28.

The Coefficient of Variation at 30.11 Negative Deviation from mean are recorded for

year 2001, 2004, and 2005.

109

Table No.4.44

DUBAI DEVELOPMENT COMPANY [DDC] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.36 100.00 100.00 -0.25

0.0625

2002 0.46 127.78 127.78

-0.15 0.0225

2003 1.06 294.44 230.43 0.45

0.2025

2004 0.69 191.67 65.09 0.08

0.0064

2005 0.45 125.00 65.22 -0.16

0.0256

2006 1.10 305.56 244.44 0.49

0.2401

2007 0.16 44.44 14.55 -0.45

0.2025


Mean: - 0.61

S.D:- 0.11

C.V:- 18.03

The above Table No. 4.44 reveals the yearly Current Ratios of “Dubai Development

Company” for the period 2001 – 2007. It is observed to have ranged in between 0.16

and 1.10. The average Current Ratio 0.61 and Standard Deviation at 0.75 The

Coefficient of Variation is at 18.03. The highest current ratio is recorded in year 2006

while the company has also recorded a steep fall to 0.16 in year 2007

110

Table No.4.45 EMAAR PROPERTIES [EMAAR] UAE


YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.98 100.00 100.00 0.06

0.36

2002 0.26 26.53 26.53

-0.66 0.4356

2003 1.37 139.79 526.92 0.45

0.2025

2004 1.04 106.12 75.91 0.12

0.0144

2005 1.07 109.18 102.88 0.15

0.0225

2006 1.10 112.24 102.80 0.18

0.0324

2007 0.67 68.36 60.91 -0.25

0.0625


Mean: - 0.92

S.D:- 0.16

C.V:- 17.39

Table No. 4.45 gives the Current Ratio for period 2001 – 2007 of “Emaar Properties”

UAE. The average current ratio for the study is 0.92, the highest ratio was observed in

the year 2003 at 1.37 and lowest was in year 2002 at 0.26. Standard Deviation is

determined to be 0.16 and Coefficient of Variation is at 17.39

111

Table No.4.46

UNION PROPERTIES [UPP] UAE CURRENT ASSETS TO CURRENT LIABILITIES

CURRENT RATIO

YEARS CURRENT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.75 100.00 100.00 0.68

0.4624

2002 0.09 5.14 5.14

-0.98 0.9604

2003 1.64 93.71 1822.22 0.57

0.3249

2004 0.23 13.14 14.02 -0.84

0.7056

2005 1.36 77.71 591.30 0.29

0.0841

2006 1.31 74.85 96.32 0.24

0.0576

2007 1.11 63.42 84.73 0.01

0.01


Mean: - 1.07

S.D:- 0.37

C.V:- 34.58

The Table No. 4.46 gives details of Current Ratio of “Union Properties UAE

companies” for the period of study The Highest Ratio is observed in 2001 at 1.75. The

lowest Ratio was in year 2002 at 0.09. The average Current Ratio for the period under

study is 1.07, and Standard Deviation is 0.37, The Coefficient of variation was 34.58

percent.

112

Table No. 4.47


IT FOR INDIA AND CONSTRUCTION FOR UAE COMPANIES ANALYSIS


Sr. No

COMPANIES NAME MEANS [SD/M*100]

CV

1

INDIA

H C L TECHNOLOGIES LTD 0.99 12.60

2 INFOSYS TECH LTD. 1.06 20.75

3 WIPRO LTD 1.41 2.84

4

UAE

ABU DHABI NATIONAL COMPANY FOR BUILDING MATERIAL [BILDCO]

0.93 30.11

5 DUBAI DEVELOPMENT COMPANY [DDC]

0.61 18.03

6 EMAAR PROPERTIES [EMAAR]

0.92 17.39

7 UNION PROPERTIES [UPP]

1.07 34.58

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IT FOR INDIA AND CONSTRUCTION SECTOR UAE)

A summary of the means Current Ratio of IT Companies from India and Construction

Companies from UAE is presented in Table No. 4.47. Among the sample IT

companies from India, Wipro Ltd is observed to be maintaining high and stable

Current Ratio. On the other hand among the construction companies from UAE Union

Properties is maintaining highest Current Ratio at 1.07. However it shows longer

fluctuations over the period of study.

113

Table No.4.48

ICICI BANK INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.66 100.00 100.00 -0.51

0.2601

2002 1.32 200.00 200.00

0.15 0.0225

2003 1.12 169.96 84.85 -0.05

0.0025

2004 1.48 224.24 132.14 0.31

0.0961

2005 1.20 181.81 81.08 0.03

0.0009

2006 1.16 175.75 96.67 -0.01

0.0001

2007 1.25 189.39 107.76 0.08

0.0064


Mean: - 1.17

S.D:- 0.06

C.V:- 5.13 The year – wise details of Quick Ratio of “ICICI Bank” are presented in Table No.

4.48. The average Quick Ratio is quite better at 1.17 and Standard Deviation 0.06.

The Coefficient of Variation is determined at 5.13. The Ratio is found to be well

above its average. The highest ratio (1.48) was seen in the year 2004. The growth rate

as per fixed base and chain base method in the year 2002 was 200 percent as shown in

the table.

114

Table No.4.49

CANARA BANK QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.01 100.00 100.00 -0.71

0.5041

2002 1.04 102.97 102.97

-0.68 0.4624

2003 1.15 113.86 110.58 -0.57

0.3249

2004 1.39 137.62 120.87 0.33

0.1089

2005 1.82 180.19 130.94 0.10

0.01

2006 3.01 306.93 170.33 1.38

1.9044

2007 2.54 251.48 87.94 0.82

0.6724


Mean: - 1.72

S.D:- 0.57

C.V:- 33.14 Table No. 4.49 presents the year –wise details of Quick Ratio of “Canara Bank of

India” for the period under study. The Average for the period was 1.72 and Standard

Deviation at 0.57. The Coefficient of Variation is calculated at 33.14 percent. From

2001 it was continuously showing negative deviation. It is also observed that for the

year 2001 the ratio is lowest at 1.01. In the year 2006 and 2007 it has reached the

level of 1:1 which means the company has better short term liquidity position.

115

Table No.4.50

STATE BANK OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.17 100.00 100.00 0.08

0.0064

2002 1.15 98.29 98.29

0.06 0.0036

2003 1.10 94.01 95.65 0.01

0.0001

2004 1.10 94.01 100.00 0.01

0.0001

2005 0.98 83.76 89.09 -0.11

0.0121

2006 1.08 92.30 110.20 -0.01

0.0001

2007 1.11 94.87 102.78 0.02

0.0004


Mean: - 1.09

S.D:- 0.0032

C.V:- 0.29 The yearly Quick Ratio of State Bank of India (SBI) for the period of study is given in

Table No.4.50. The average Quick Ratio is at 1.09 and Standard Deviation 0.0032.

The Ratio is well above its average for major period of study. The coefficient of

Variation is computed at 0.29 percent.

116

Table No.4.51

ARAB BANK [ARABBANK] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.28 100.00 100.00 0.16

0.0256

2002 2.11 164.84 164.84

0.99 0.9801

2003 1.65 128.90 78.20 0.53

0.2809

2004 0.25 19.53 15.15 -0.87

0.7569

2005 1.45 113.28 580.00 0.33

0.1089

2006 0.42 32.81 28.97 -0.70

0.49

2007 0.71 55.46 169.05 -0.41

0.1681


Mean: - 1.12

S.D:- 0.40

C.V:- 35.80 The Quick Ratio for period 2001 – 2007 of “Arab Bank” UAE is given in Table No.

4.51. It is revealed that the quick ratio has ranged in between 0.42 and 2.11. The

Average for the period is determined at 1.12. In the year 2002 and 2003 the quick

ratio is well above the average. In 2002 it was all time high at 2.11 and in the year

2005 the percentage growth as per chain base method was observed at highest. The

standard deviation is computed as 0.40. And the coefficient of variation was

calculated at 35.80.

117

Table No.4.52

ABU DHABI COMMERCIAL BANK [ADCB] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.96 100.00 100.00 -0.40

0.16

2002 1.56 162.50 162.50

0.20 0.04

2003 1.12 116.66 71.79 -0.24

0.0576

2004 1.57 163.54 140.18 0.21

0.0441

2005 1.34 139.58 85.35 -0.02

0.0004

2006 1.49 155.20 111.19 0.13

0.0169

2007 1.54 160.41 103.36 0.18

0.0324


Mean: - 1.36

S.D:- 0.05

C.V:- 3.69

The above Table No. 4.52 shows the year wise Quick Ratio of “Abu Dhabi

Commercial Bank” for the period of study. The quick ratio is observed to have moved

in the range of 0.96 to 1.57. The average for the period is shown as 1.36 and the

Standard Deviation is 0.05 The Coefficient of Variation is computed at 3.69 percent.

Negative deviation from mean was recorded for the year 2001, 2003 and 2005

118

Table No.4.53

EMIRATES BANK [EBI] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.42 100.00 100.00 -0.32

0.1024

2002 1.69 119.01 119.01

-0.05 0.02

2003 1.45 102.11 85.80 -0.29

0.0841

2004 2.64 185.91 182.07 0.90

0.81

2005 1.56 109.85 59.09 -0.18

0.0324

2006 1.69 119.01 108.33 -0.05

0.0025

2007 1.55 109.15 91.72 -0.19

0.361


Mean: - 1.74

S.D:- 0.15

C.V:- 8.62

The Quick Ratio of “Emirates Bank of UAE” for the period 2001 – 2007 is presented

in above Table No.4.53. The Average for the period was 1.74 and Standard Deviation

at 0.15. And Coefficient of Variation is calculated at 8.62 percent. From 2001 it was

continuously showing negative deviation except in the year 2004 where the ratio at all

time high (2.64). However for the entire period of study the quick ratio is observed

above the ideal level of 1:1 which means the company has better short term liquidity

position.

119

Table No.4.54

NATIONAL BANK OF ABU DHABI [NBAD] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.25 100.00 100.00 -0.60

0.36

2002 0.35 140.00 140.00

-0.50 0.25

2003 0.75 300.00 214.29 -0.10

0.01

2004 0.94 376.00 125.33 0.09

0.0081

2005 0.36 144.00 38.30 -0.49

0.2401

2006 1.44 576.00 400.00 0.59

0.3481

2007 1.87 748.00 129.86 1.02

1.0404


Mean: - 0.85

S.D:- 0.32

C.V:- 37.65

The above Table No. 4.54 shows the yearly Quick Ratio of “National Bank of Abu

Dhabi” for period 2001 – 2007. It indicates that the ratio has moved in the range of

0.25 and 1.87 during the period from 2001 to 2007. It was highest in 2007 at 1.87 The

Average quick ratio was 0.85 and Standard Deviation 0.32. The Coefficient of

Variation is computed at 37.65. The bank is observed to be working with reasonably

low quick ratio in the initial years from 2001 – 2005. In the later year of study the

bank has been maintaining quick ratio above 1.

120

Table No.4.55

QUICK RATIO MEANS AND COEFFICIENT OF VARIATION

BANKING SECTOR ANALYSIS [INDIA & UAE]


Sr. No BANKS NAME Means

[SD/M*100] CV

1

INDIA

ICICI BANK

1.17 5.13

2 CANARA BANK

1.72 33.14

3 STATE BANK OF INDIA 1.09 0.29

4

UAE


1.12 35.80


1.36 3.69

6 EMIRATES BANK [EBI]

1.74 8.62


0.85 37.65

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION

(BANKING SECTOR) The summary pertaining to Quick Ratio of banking sector of India and UAE for

individual company performance is given in Table No. 4.55. Of the Seven banks,

under study other than National Bank of Abu Dhabi (NBAD), all the sample banks

have Quick Ratio of more than 1. The higher Quick Ratio for these Banks is an

Indicator of sound short term solvency position. The National Bank of Abu Dhabi has

Low Quick Ratio which is indicates higher risk. These banks are keeping the Quick

Assets Minimum. It indicates that investment opportunities are present in Indian

Banking sector.

121


QUICK ASSETS TO CURRENT LIABILITIES QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.83 100.00 100.00 0.03

0.0009

2002 0.67 80.72 80.72

-0.13 0.0169

2003 0.69 83.13 102.99 -0.11

0.0121

2004 0.81 97.59 117.39 0.01

0.0001

2005 0.73 87.95 90.12 -0.07

0.0049

2006 0.79 95.18 108.22 -0.01

0.001

2007 1.05 126.51 132.91 0.25

0.0625


Mean: - 0.80

S.D:- 0.01

C.V:- 1.77 The Quick Ratio for Ambuja Cement India Company Ltd is presented in above Table

No. 4.56 for the period 2001 - 2007. The average for the period is 0.80 and Standard

Deviation 0.01. The Coefficient of Variation is at 1.77. During the period of study

Quick Ratio is observed to be seasonably stable.

122

Table No.4.57 DECCAN CEMENTS LTD. INDIA


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.25 100.00 100.00 -0.51

0.2601

2002 0.98 392.00 392.00

0.22 0.0484

2003 0.14 56.00 14.29 -0.62

0.3844

2004 0.52 208.00 371.43 -0.24

0.0576

2005 0.46 184.00 88.46 -0.30

0.09

2006 1.70 680.00 369.57 0.94

0.8836

2007 1.28 512.00 75.29 0.52

0.2704


Mean: - 0.76

S.D:- 0.28

C.V:- 36.84

The Table No.4.57 above depicts clearly the Quick ratio of “Deccan Cement India

Company” for the period 2001 - 2007. It indicates that the ratio has moved in the

range of 0.14 and 1.70 during the period from 2001 to 2007. The average Quick Ratio

was 0.76 and Standard Deviation 0. 28. The Coefficient of variation is computed at

36.84. The quick ratio for years 2001, 2003, 2004 mean quick ratio. Thus, fluctuations

are recorded in the quick ratio.

123

Table No.4.58

J K LAKSHMI CEMENTS LTD. INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.20 100.00 100.00 -0.13

0.0169

2002 1.15 95.83 95.83

-0.18 0.0324

2003 1.25 104.17 108.70 -0.08

0.0064

2004 1.30 108.33 104.00 -0.03

0.0009

2005 1.37 114.17 105.38 0.04

0.0016

2006 1.44 120.00 105.11 0.11

0.0121

2007 1.60 133.33 111.11 0.27

0.0729


Mean: - 1.33

S.D:- 0.02

C.V:- 1.54 Table No.4.58 states the year wise Quick Ratio of “JK Lakshmi Cement India

Company” for 2001 – 2007. The quick ratio has moved in between 1.15 and 1.60. The

average Quick Ratio for the period is 1.33 and Standard Deviation is 0.02. The

Coefficient of Variation is 1.54 for the period under study. The Quick Ratio for the

period 2001 to 2004 was below the average. There was significant improvement in

ratio from year 2005 to 2006. It is highest at 1.60 in 2007. A consistent rise is

observed in the quick ratio of the company

124

Table No.4.59

GULF CEMENT [GCEM] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.40 100.00 100.00 -0.39

0.14878

2002 0.57 142.50 142.50

-0.22 0.04653

2003 0.60 150.00 105.26 -0.19

0.03449

2004 0.76 190.00 126.67 -0.03

0.00009

2005 0.19 47.50 25.00 -0.60

0.35488

2006 1.40 350.00 736.84 0.61

0.37735

2007 1.58 395.00 112.86 0.79

0.63089


Mean: - 0.79

S.D:- 0.23

C.V:- 28.96.

The Quick Ratios of “Gulf Cement UAE Companies” for the period 2001 – 2007 are

presented in Table No.4.59. The Quick Ratio has ranged in between 0.19 and 1.58.

The average Quick Ratio is 0.79 and Standard Deviation is 0.23. The Coefficient of

Variation was computed at 28.96 percent. The highest growth rate of Quick Ratio was

recorded in 2007, with Fixed Base Method at 395.00. The company has been

maintaining quick ratio below 1 from 2001 – 2005. For the years 2006 and 2007, the

company is observed with high quick ratio at 1.40 and 1.58 respectively

125



YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.95 100.00 100.00 -0.06

0.00343

2002 0.77 81.05 81.05

-0.12 0.01474

2003 0.43 45.26 55.84 -0.46

0.21292

2004 0.78 82.11 181.40 -0.11

0.01242

2005 0.54 56.84 69.23 -0.35

0.1235

2006 1.37 144.21 253.70 0.48

0.22903

2007 1.40 147.37 102.19 0.51

0.25864


Mean: - 0.89

S.D:- 0.12

C.V:- 13.70.

Table No.4.60 gives the Quick Ratio value of “National Cement UAE for period 2001

– 2007. The average Quick Ratio at 0.89 and Standard Deviation is at 0.12. The

Coefficient of Variation is indicated at 13.70. The Ratio is well above its average for

four years. The highest ratio is observed in the year 2007 at 1.40.

126

Table No.4.61

SHARJAH CEMENT [SCIDC] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.96 100.00 100.00 0.34

0.1156

2002 1.44 73.47 73.47

-0.18 0.0324

2003 1.36 69.39 94.44 -0.26

0.0676

2004 1.57 80.10 115.44 -0.05

0.00025

2005 1.88 95.92 119.75 0.26

0.0676

2006 1.54 78.57 81.91 -0.08

0.0064

2007 1.59 81.12 103.25 -0.03

0.0009


Mean: - 1.62

S.D:- 0.04

C.V:- 2.58

The Quick Ratio of “Sharjah Cement UAE” for period 2001 – 2007 is given in Table

No. 4.61. The average for the period is 1.62 and Standard Deviation is at 0.04. The

Coefficient of Variation is calculated at 2.58. For the entire period of study the Quick

Ratio maintained by the company is well above the standard ratio of 1:1.

127

Table No. 4.62


CEMENT SECTOR ANALYSIS [INDIA & UAE]



[SD/M*100] CV

1

INDIA

AMBUJA CEMENT LTD.

0.80 1.77


0.76 36.84

3 JK LAKSHMI CEMENT LTD.

1.33 1.54

4

UAE

GULF CEMENT [GCEM]

0.79 28.96


0.89 13.70


1.62 2.58

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (CEMENT SECTOR) The Quick Ratio of Cement sector from both India and UAE is summarised in Table

No.4.62. It is observed that out of the six cement companies under study only 2

companies have Quick Ratio above 1. At the same majority of the Cement Companies

have Quick Ratio below 1:1. The higher Quick Ratio of JK Lakshmi Cement

Companies and Sharjah Cement Companies is an indicator of sound short term

investment position. The remaining companies in majority have lower Quick Ratio.

Coefficient of Variation of UAE Cement Companies is higher as compare to Indian

Companies. This indicates higher investment opportunities in India cement sector.

128

Table No.4.63

NATIONAL INSURANCE COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.10 100.00 100.00 0.33

0.1089

2002 1.03 93.64 93.64

0.26 0.0676

2003 2.03 184.54 197.09 1.26

1.5876

2004 1.02 92.72 50.25 0.25

0.0625

2005 0.08 72.72 7.84 -0.69

0.4761

2006 0.06 54.54 75.00 -0.71

0.5041

2007 0.08 72.72 133.33 -0.69

0.4761


Mean: - 0.77

S.D:- 0.47

C.V:- 61.04

Table No. 4.63 reveals the Quick Ratio of “National Insurance India” for period 2001

- 2007. The average for the period is at 0.77 and Standard Deviation at 0.47. The

Coefficient of Variation is calculated at 61.04 percent. From 2005 it is continuously

showing negative deviations. The highest Ratio was observed in the year 2003 at 2.03

and the fixed base and chain base variation is observed more than 100 percent in the

same year.

129

Table No.4.64

ORIENTAL INSUREANCE COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.08 100.00 100.00 0.29

0.0841

2002 4.09 196.63 196.63

2.30 5.29

2003 1.09 52.40 26.65 -0.70

0.49

2004 1.02 49.03 93.58 -0.77

0.5929

2005 1.17 56.25 114.71 -0.62

0.3844

2006 1.45 69.71 123.93 -0.34

0.1156

2007 1.69 81.25 116.55 -0.10

0.01


Mean: - 1.79

S.D:- 1.00

C.V:- 55.87 The year – wise Quick Ratios of “Oriental Insurance India” are presented in Table

No.4.64. Steep fluctuation in quick ratio is observed for year 2001 – 2003. The

average for the period was 1.79 and Standard Deviation at 1.00. The Coefficient of

Variation is calculated at 55.87. From 2003 it is continuously showing negative

deviation and in the year 2004 the ratio is lowest at 1.02.

130

Table No.4.65

UNITED INDIA INSURANCE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.13 100.00 100.00 0.96

0.9216

2002 1.31 61.50 61.50

0.14 0.0196

2003 1.23 57.74 93.89 0.06

0.06

2004 0.98 46.00 79.67 -0.19

0.00361

2005 0.93 43.66 94.90 -0.24

0.0576

2006 0.92 43.19 98.92 -0.25

0.0625

2007 0.70 32.86 76.09 -0.47

0.2209


Mean: - 1.17

S.D:- 0.19

C.V:- 16.24

Table No.4.65 gives the Quick Ratio of “United India Insurance” for period 2001 –

2007. The quick ratio was highest at 2.13 in base year 2001. Year 2002 onwards a

declining trend is observed. The average quick ratio is indicated at 1.17 and Standard

Deviation at 0.19 The Coefficient of Variation is calculated at 16.24 percent.

131

Table No.4.66

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.75 100.00 100.00 0.66

0.431837

2002 0.69 39.43 39.43

-0.40 0.162294

2003 0.85 48.57 123.19 -0.24

0.05898

2004 0.71 40.57 83.53 -0.38

0.14658

2005 1.22 69.71 171.83 0.13

0.016165

2006 1.19 68.00 97.54 0.10

0.009437

2007 1.24 70.86 104.20 0.15

0.021651


Mean: - 1.09

S.D:- 0.12

C.V:- 11.07 Table No.4.66 depicts the Quick Ratio for period 2001 – 2007 of “Abu Dhabi

National Insurance Company”. The Company recorded lowest Quick Ratio in 2002 at

0.69 and highest in 2001(1.75). The average Quick Ratio of the company is 1.09 and

Standard Deviation 0.12. The Coefficient of Variation is indicated at 11.07.

132

Table No.4.67 ALLIANCE INSURANCE [ALLIANCE] COMPANY OF UAE


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.65 100.00 100.00 0.38

0.1444

2002 1.87 113.33 113.33

0.60 0.36

2003 0.96 58.18 51.34 -0.31

0.0961

2004 0.73 44.24 76.04 -0.54

0.2916

2005 0.68 41.21 93.15 -0.59

0.3481

2006 1.31 79.39 192.65 0.04

0.16

2007 1.74 105.45 132.82 0.47

0.2209


Mean: - 1.27

S.D:- 0.23

C.V:- 18.11

Table No.4.67 reveals the yearly Quick ratio of “Alliance Insurance UAE” for the

period 2001 - 2007. The average for the period is 1.27 and Standard Deviation is 0.23.

The Coefficient of Variation is calculated at 18.11. In the initial year the quick ratio

increased from 1.65 to 1.87. However, marginal fall was recorded for year 2003, 2004

and 2005. Later in year 2006 and 2007 reap.

133

Table No.4.68

DUBAI NATIONAL INSURANCE [DNIR] COMPANY OF UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.39 100.00 100.00 -0.01

0.0002

2002 1.31 94.24 94.24

-0.09 0.00089

2003 1.35 97.12 103.05 -0.05

0.00295

2004 1.36 97.84 100.74 -0.04

0.00196

2005 1.18 84.89 86.76 -0.22

0.0503

2006 1.55 111.51 131.36 0.15

0.02123

2007 1.69 121.58 109.03 0.29

0.08163


Mean: - 1.40

S.D:- 0.02

C.V:- 1.70 The above Table No.4.68 indicates the Quick Ratio of “Dubai National Insurance

Company UAE for period of study. It is observed that the quick ratio of Dubai

National Insurance Company [DNIR] was lowest at 1.18 in the year 2005. The

highest Quick Ratio was shown in the year 2007 at 1.69 percent. The ratio has

maintained the level of 1:1 for all the period of study. It means the company has better

short term liquidity position. The average quick ratio is 1.40 and standard deviation is

0.02. The coefficient variation is also low at 1.70, thus depicting stability.

134

Table No.4.69 UNITED INSURANCE [UIC] COMPANY OF UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.54 100.00 100.00 0.37

0.1369

2002 0.63 40.91 40.91

-0.54 0.2916

2003 0.74 48.05 117.46 -0.43

0.1849

2004 1.24 80.52 167.57 0.07

0.49

2005 1.39 90.26 112.10 0.22

0.0484

2006 0.75 48.70 53.96 -0.42

0.1764

2007 1.94 125.97 258.67 0.77

0.5929


Mean: - 1.17

S.D:- 0.27

C.V:- 23.08 Table No.4.69 states the Quick Ratio of “United Insurance” for period 2001 – 2007.

The quick ratio ranges between 0.63 and 1.94 for the period of study. The company

has an average Quick Ratio of 1.17 and Standard Deviation of 0.27. The Coefficient

of Variation is calculated at 23.08 percent.

135

Table No. 4.70


INSURANCE SECTOR ANALYSIS [INDIA & UAE]


Sr.No

INSURANCE COMPANIES Means [SD/M*100]

CV

1

INDIA

NATIONAL INSURANCE

0.77 61.04

2 ORIENTAL INSURANCE

1.79 55.87

3 UNITED INDIA INSURANCE. 1.17 16.24

4

UAE


1.09 11.07


1.27 18.11

6 DUBAI NATIONAL INSURANCE DNIR]

1.40 1.70


1.17 23.08

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (INSURANCE SECTOR) Table No.4.70 summarises the average Quick Ratio for individual company

performance for Insurance sector for India and UAE except National Insurance India,

all other sample company are observed to maintaining quick ratio above 1. High

fluctuations are observed for National Insurance India. There is a need of investment

in both countries India and UAE because an India Insurance companies is one of the

booming sectors of the economy and growing at the rate of 15.20 percent annum.

Other side UAE Insurance companies’ outlook is bright as it expected to one of the

booming sectors in UAE with in the economy in the medium term.

136

Table No.4.71 CADILA HEALTHCARE COMPANY OF INDIA


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.45 100.00 100.00 0.65

0.42064

2002 2.29 93.47 93.47

0.49 0.2387

2003 2.01 82.04 87.77 0.21

0.0435

2004 1.83 74.69 91.04 0.03

0.00082

2005 1.54 62.86 84.15 -0.26

0.06834

2006 1.39 56.73 90.26 -0.41

0.016927

2007 1.10 44.90 79.14 -0.70

0.492


Mean: - 1.80

S.D:- 0.20

C.V:- 11.37 Table No.4.71 shows year – wise Quick Ratio of “Cadila Health Care” for the period

of study. It reveals that the ratio was highest at 2.45 in 2001 which is base year of

study. But in Subsequent years till 2007 it dropped down to 1.10 Deviation from mean

was negative from 2005 to 2007. The average quick ratio was at 1.80 and standard

deviation 0.20. The coefficient of variation is at11.37.

137

Table No.4.72

CIPLA LTD. COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.40 100.00 100.00 0.47

0.21956

2002 1.23 87.86 87.86

0.30 0.08914

2003 1.10 78.57 89.43 0.17

0.02842

2004 1.03 73.57 93.64 0.10

0.00972

2005 0.98 70.00 95.15 0.05

0.00236

2006 0.54 38.57 55.10 -0.39

0.15322

2007 0.24 17.14 44.44 -0.69

0.47807


Mean: - 0.93

S.D:- 0.14

C.V:- 15.04 The year – wise details of Quick Ratio for the period 2001 - 2007 of “Cipla Pharma

Company of India” are presented in above Table No. 4.72. The average Quick Ratio

is quite better at 0.93 and Standard Deviation 0.14. The Coefficient of Variation is

indicated at 15.04. During the period of study the highest ratio has been observed in

the year 2001 which is base year of the study. A steady decline is observed then from

and the lowest ratio is recorded in year 2007 at 0.24.

138

Table No.4.73 SUN PHARMA COMPANY OF INDIA


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.87 100.00 100.00 0.68

0.4624

2002 1.75 93.58 93.58

0.56 0.3136

2003 1.45 77.54 82.86 0.26

0.0676

2004 1.12 59.89 77.24 -0.07

0.0049

2005 0.98 52.41 87.50 -0.21

0.0441

2006 0.74 39.57 75.51 -0.45

0.2025

2007 0.42 22.46 56.76 -0.77

0.5929


Mean: - 1.19

S.D:- 0.24

C.V:- 20.26 Table No.4.73 presents the Quick Ratio of “Sun Pharma India Company” for period

2001 – 2007. The average Quick Ratio is at 1.19 and Standard Deviation is 0.24. The

Coefficient of variation is indicated at 20.26. The ratio is well above its average in

initial three years. The highest ratio is seen in the year 2001 at 1.87. Steady decline in

quick ratio is observed from year 2001 to 2007.

139

Table No.4.74

GULF MEDICAL PROJECTS [GMPC] COMPANY OF UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.96 100.00 100.00 0.16

0.0256

2002 0.74 77.08 77.08

-0.06 0.0036

2003 0.69 71.88 93.24 -0.11

0.0121

2004 0.73 76.04 105.80 -0.07

0.0049

2005 0.76 79.17 104.11 -0.04

0.0016

2006 0.83 86.46 109.21 0.03

0.0009

2007 0.89 92.71 107.23 0.09

0.0081


Mean: - 0.80

S.D:- 0.01

C.V:- 1.01 Table No.4.74 highlights the Quick Ratio figures for year 2001 – 2007 of “Gulf

Medical UAE”. The Quick Ratio was highest at 0.96 in the year 2001 and the lowest

at 0.69 in 2003. The average quick ratio is 0.80 and Standard Deviation is 0.01. The

Coefficient of Variation was calculated at 1.01 percent. This depicts stability in quick

ratio. However the company is also observed to be performing under risk with low

quick ratio.

140

Table No.4.75 GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] OF UAE


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.98 100.00 100.00 0.39

0.14988

2002 0.75 76.53 76.53

0.16 0.02469

2003 0.63 64.29 84.00 0.04

0.00138

2004 0.58 59.18 92.06 -0.01

0.00017

2005 0.44 44.90 75.86 -0.15

0.02337

2006 0.41 41.84 93.18 -0.18

0.03344

2007 0.36 36.73 87.80 -0.23

0.05422


Mean: - 0.59

S.D:- 0.04

C.V:- 6.92 The above Table No.4.75 shows the Quick Ratio of “Gulf Pharmaceutical Industries

UAE” for period 2001 – 2007. It indicates that the Ratio has moved in the range of

0.36 to 0.98 during the period from 2001 to 2007. A declining trend is observed. The

average Quick Ratio is 0.59 and Standard Deviation is 0.04. The Coefficient of

Variation is computed at 6.92 percent.

141

Table No. 4.76


PHARMACEUTICAL SECTOR ANALYSIS [INDIA & UAE]


Sr.No PHARMACEUTICAL

COMPANIES Means [SD/M*100]

CV

1

INDIA

CADILA HEALTH CARE

1.80 11.37

2 CIPLA LTD.

0.93 15.04

3 SUN PHARMA.

1.19 20.26

4

UAE


0.80 1.01


0.59 6.92

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (PHARMACEUTICAL SECTOR)

Table No.4.76 gives the average Quick Ratio for pharmaceutical companies from

India and UAE. The Performance of two India Pharma Companies is better i.e.

Cadila Health Care and Sun Pharma India. India Pharma companies are observed with

Quick Ratio of more than 1. The higher Quick Ratio for these companies is an

indicator of better short term position but there is need to invest for long term

position. On the other side UAE Pharma Companies have low quick ratio which

indicates that the companies are working under higher

142

Table No.4.77 TATA COMMUNICATION COMPANY OF INDIA


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.99 100.00 100.00 0.20

0.0383

2002 0.97 97.98 97.98

0.18 0.03088

2003 0.92 92.93 94.85 0.13

0.0158

2004 0.84 84.85 91.30 0.05

0.00209

2005 0.81 81.82 96.43 0.02

0.00025

2006 0.59 59.60 72.84 -0.20

0.04173

2007 0.44 44.44 74.58 -0.35

0.12552


Mean: - 0.79

S.D:- 0.04

C.V:- 4.58 Table No.4.77 gives the Quick Ratio values for year 2001 – 2007 of “Tata

communication India Ltd”. The Quick Ratio is observed to be ranged in between 0.44

and 0.99. The average Quick Ratio is 0.79 and Standard Deviation is 0.04.The

Coefficient of Variation is computed at 4.58 percent. Steady decline in Quick Ratio is

observed from 2001 – 2007.

143

Table No.4.78

BHARTI AIRTEL LTD. COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ----- ----- ----- -----

------

2002 2.00 100.00 100.00

0.65 0.4225

2003 1.89 94.50 94.50 1.54

0.2916

2004 1.44 72.00 76.19 0.09

0.00751

2005 1.26 63.00 87.50 -0.09

0.00871

2006 0.86 43.00 68.25 -0.49

0.24338

2007 0.67 33.50 77.91 -0.68

0.46694


Mean: - 1.35

S.D:- 0.24

C.V:- 17.74 Table No.4.78 depicts the Quick Ratio of “Bharti Airtel India Ltd” for the period of

study. The average Quick Ratio is 1.35. The highest Quick Ratio was shown in 2001

at 2.00 it was all time high. Then from declining trend is observed in the Quick Ratio

the company lowest ratio is recorded in year 2007 at 0.67. The Standard Deviation is

0.24 and Coefficient of Variation is computed at 17.74 percent.

144

Table No.4.79

MTNL TELECOMMUNICATION COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.20 100.00 100.00 -0.63

0.3951

2002 1.18 98.33 98.33

-0.65 0.42064

2003 1.22 101.67 103.39 -0.61

0.37036

2004 2.53 210.83 207.38 0.70

0.492

2005 2.44 203.33 96.44 0.61

0.37384

2006 2.14 178.33 87.70 0.31

0.09699

2007 2.09 174.17 97.66 0.26

0.06834


Mean: - 1.83

S.D:- 0.32

C.V:- 17.32 The above given Table No. 4.79 gives the year-wise Quick Ratio of”MTNL India” for

the period 2001 – 2007. The Quick Ratio as present in above table reveals that it is

highest at 2.53 in 2004 and lowest at 1.18 in 2002. The average for the period is 1.83

and Standard Deviation is 0.32. And Coefficient of variation is calculated at 17.32.

The above table ratio show the upward trend and it has above the level of 1:1 which

means the company has better short term liquidity position.

145

Table No.4.80

ETISALAT TELCOM COMPANY OF UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.65 100.00 100.00 0.14

0.01881

2002 1.54 93.33 93.33

0.03 0.00074

2003 1.36 82.42 88.31 -0.15

0.02337

2004 1.38 83.64 101.47 -0.13

0.01765

2005 1.22 73.94 88.41 -0.29

0.08577

2006 1.57 95.15 128.69 0.06

0.00327

2007 1.87 113.33 119.11 0.36

0.012755


Mean: - 1.51

S.D:- 0.04

C.V:- 2.62 The above Table No. 4.80 reveals the Quick Ratio of “Etisalat Telecom UAE

Company” for the period of study. The Quick Ratio is having lowest in 2005 at 1.22

and it was highest at 1.87 in 2007. The average Quick Ratio for the year 2001 to 2007

was 1.51 and Standard Deviation is 0.04. The Coefficient of Variation is 2.62. As per

Fixed base and Chain base is more than 100 percent in 2007 have been observed.

146

Table No.4.81


TELECOMMUNICATION SECTOR ANALYSIS [INDIA &UAE]


Sr. No

TELECOMMUNICATION COMPANIES

Means [SD/M*100]

CV

1

INDIA

TATA COMMUNICATION

0.79 4.58

2 BHARTI AIRTEL LTD

1.35 17.74

3 MTNL. INDIA

1.83 17.32


1.51 2.62

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (TELECOMMUNICATION SECTOR)

Table No. 4.81 provides a summary of the Mean Quick Ratio of India and UAE

Telecom Companies. Out of four Telecom company, three companies have shown the

quick Ratio at 1:1 which is satisfactory, they are Bharti Airtel, MTNL India and

Etisalat Telecom UAE. The higher Quick Ratio for these Companies is indicates of

sound short term investment. The performance of MTNL during the period of study is

in a better position as compare to UAE Telecom Companies. The Coefficient of

variation points out stabilities in Indian telecom companies.

147

Table No.4.82

STEEL AUTHORITY OF INDIA LTD QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.00 100.00 100.00 0.59

0.3481

2002 1.45 72.50 72.50

0.04 0.0016

2003 0.52 26.00 35.86 -0.89

0.7921

2004 1.43 71.50 275.00 0.02

0.0004

2005 1.67 83.50 116.78 0.26

0.0676

2006 1.27 63.50 76.05 -0.14

0.0196

2007 1.57 78.50 123.62 0.16

0.0256


Mean: - 1.41

S.D:- 0.18

C.V:- 12.77 The above given Table No. 4.82 provides the Quick Ratio of “Steel Authority of

India” for the period of study. The Quick Ratio is lowest at 0.52 in the year 2003. The

highest Quick Ratio is show in the base year 2001 at 2.00. The ratio is low during the

entire period under study. Deviation from mean was also recorded a high position in

the 2001 which was 0.59 and X2 at 0.3481.

148

Table No.4.83

STEEL COMPANY GUJARAT LTD INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.50 100.00 100.00 0.12

0.0144

2002 1.32 88.00 88.00

-0.06 0.0036

2003 1.28 85.33 96.97 -0.10

0.01

2004 1.21 80.67 94.53 -0.17

0.0289

2005 1.36 90.67 112.40 -0.02

0.0004

2006 1.41 94.00 103.68 0.03

0.0009

2007 1.58 105.33 112.06 0.20

0.04


Mean: - 1.38

S.D:- 0.01

C.V:- 1.02 The Table No.4.83 gives the Quick Ratio of “Steel Company Gujarat Ltd” for the

period 2001 – 2007. The quick ratio is highest in the year 2007 (1.58) and lowest ratio

is recorded in 2004 (1.21). The average Quick Ratio for the period is 1.38 and

Standard Deviation is 0.01. The Coefficient of Variation is calculated at 1.02 percent.

The Deviation from Mean was Negative for years 2002, 2003, 2004 and 2005.

149

Table No.4.84

BOULDER STEEL [BGD] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.90 100.00 100.00 0.03

0.0009

2002 1.88 98.95 98.95

0.01 0.0001

2003 1.54 81.05 81.91 -0.33

0.11079

2004 1.63 85.79 105.84 -0.24

0.05898

2005 1.73 91.05 106.13 -0.14

0.02041

2006 2.08 109.47 120.23 0.21

0.04291

2007 2.35 123.68 112.98 0.48

0.22767


Mean: - 1.87

S.D:- 0.07

C.V:- 3.52 The above Table No. 4.84 shows the yearly Quick Ratio of “Boulder Steel UAE” for

the period 2001 to 2007. The quick ratio have move in the range of 1.54 and 2.35

during the period of study. The highest quick ratio in the year 2007 at 2.35. The

average Quick Ratio is 1.87 and Standard Deviation 0.07. The Coefficient of

Variation is computed at 3.52 percent. As per the fixed base in 2007 is more than 100

percent

150

Table No.4.85

JAZEERA STEEL [ATMI] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.90 100.00 100.00 0.03

0.0009

2002 0.77 85.56 85.56

-0.10 0.0001

2003 0.61 67.78 79.22 -0.26

0.06539

2004 0.70 77.78 114.75 -0.17

0.02746

2005 0.53 58.89 75.71 -0.34

0.1127

2006 0.65 72.22 122.64 -0.22

0.04653

2007 1.90 211.11 292.31 1.03

1.06975


Mean: - 0.87

S.D:- 0.19

C.V:- 21.83 The above Table No. 4.85 reflects the Quick Ratio of “Jazeera Steel Company of

UAE” for the period 2001 to 2007. The Quick Ratio is recorded lowest in 2005 at

0.53. And the growth rate of Quick Ratio of the company is highest in last year in

2007 during the period of study. The average for the period is shown as 0.87 and

Standard Deviation is 0.19 and Coefficient of Variation is calculated at 21.83 percent.

151

Table No. 4.86


IRON AND STEELSECTOR ANALYSIS [INDIA & UAE]


Sr.No

IRON AND STEEL COMPANIES

Means [SD/M*100]

CV

1

INDIA

STEEL AUTHORITY OF INDIA LTD

1.41 12.77


1.38 1.02

3

UAE

BOULDER STEEL

1.87 3.52


0.87 21.83

Source: - Calculations made by the Researcher on the basis of the stock Exchange Data of both Countries i.e. India and United Arab Emirates

CONCLUSION (IRON AND STEEL SECTOR)

The Table No. 4.86 highlights the Means Quick Ratio for steel companies from India

and UAE. There are Indian Steel Companies which is having strong ratio 1:1. The

higher Quick Ratio for Indian steel company companies is an indicator of sound short

term position. But the Coefficient of Variation of UAE steel company is higher it

indicate that Indian Iron and Steel sector is observed a stabilities in Quick Ratio as

well.

152

Table No.4.87

H C L TECHNOLOGYIES LTD. IT COMPANY INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.78 100.00 100.00 0.35

0.0009

2002 2.50 89.93 89.93

0.07 0.0001

2003 2.03 73.02 81.20 -0.40

0.16

2004 1.98 71.22 97.54 -0.45

0.2025

2005 2.15 77.34 108.59 -0.28

0.0784

2006 2.69 96.76 125.12 0.26

0.0676

2007 2.88 103.60 107.06 0.45

0.2025


Mean: - 2.43

S.D:- 0.10

C.V:- 4.19 Table 4.87 shows the Quick Ratio values of “HCL Technologies Ltd” India for the

period under study. The table states that the quick ratio during the period ranged in

between 1.98 and 2.88. The average Quick Ratio is 2.43 and Standard Deviation is

0.10. The Quick Ratio was lowest in 2004 and it was at its peak in 2007. The Ratio is

observed in upward trend. The Standard norm for Quick Ratio is considered as 1:1

during the period of study 2001 to 2007 it has reached the level of 1:1, and coefficient

of variation is at 4.19

153

Table No.4.88 INFOSYS TECH LTD. IT COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X) X2

2001 0.65 100.00 100.00 -0.65

0.4225

2002 0.76 116.92 116.92

-0.54 0.2916

2003 1.14 175.38 150.00 -0.16

0.02469

2004 1.02 156.92 89.47 -0.28

0.07681

2005 1.45 223.08 142.16 0.15

0.02337

2006 2.09 321.54 144.14 0.78

0.62862

2007 1.97 303.08 94.26 0.67

0.45274


Mean: - 1.30

S.D:- 0.27

C.V:- 21.15 The above Table No. 4.88 presents the Quick Ratio of “Infosys Tech Ltd India” for

the period 2001 – 2007. The Quick Ratios move in the range of 0.65 to 2.09. The

average for the period was 1.30. In the year 2005 to 2007 the Quick Ratio is observe

above the average. The lowest quick ratio is in the year 2001 at 0.65. As per the Fixed

Base Method was above 200 percent in last two year which is 2006 and 2007. The

Coefficient of Variation is 21.15

154

Table No.4.89

WIPRO LTD. IT COMPANY OF INDIA QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.57 100.00 100.00 0.09

0.4225

2002 1.68 107.01 107.01

0.20 0.2916

2003 1.37 87.26 81.55 -0.11

0.01306

2004 1.22 77.71 89.05 -0.26

0.06985

2005 1.14 72.61 93.44 -0.34

0.11853

2006 1.56 99.36 136.84 0.08

0.00573

2007 1.85 117.83 118.59 0.37

0.13375


Mean: - 1.48

S.D:- 0.15

C.V:- 10.15 The Quick Ratio of “Wipro India Ltd” for the period 2001 – 2007 is given in Table

No. 4.89. The Quick Ratio is lowest in 2005 at 1.14 and highest at 1.85 in 2007. The

average Quick Ratio for the company at 1.48 and Standard Deviation is 0.15. During

the period of study quick ratio show an upward trend after 2006. Deviation of Mean is

seen negative in the year 2003, 2004 and 2005.

155

Table No.4.90



YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.89 100.00 100.00 0.11

0.4225

2002 1.16 130.34 130.34

0.38 0.2916

2003 1.29 144.94 111.21 0.51

0.26449

2004 1.09 122.47 84.50 0.31

0.09878

2005 0.54 60.67 49.54 -0.24

0.05556

2006 0.28 31.46 51.85 -0.50

0.24573

2007 0.18 20.22 64.29 -0.60

0.35488


Mean: - 0.78

S.D:- 0.25

C.V:- 31.93

The year – wise Quick Ratio of “Abu Dhabi National Company for Building

Material” is present in Table No. 4.90 above. The Quick Ratio ranged in between 0.18

and 1.29. The highest Quick Ratio in the year 2003 at 1.29 and the lowest in the year

2007 at 0.18. During the period of study quick ratio is observe fluctuated. Average of

Quick Ratio is0.78 percent, Standard Deviation is 0.25 and Coefficient of Variation is

31.93 percent

156

Table No.4.91

DUBAI DEVELOPMENT COMPANY [DDC] UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.37 100.00 100.00 -0.21

0.4225

2002 0.23 62.16 62.16

-0.35 0.2916

2003 0.16 43.24 69.57 -0.42

0.1764

2004 0.93 251.35 581.25 0.35

0.1225

2005 0.84 227.03 90.32 0.26

0.0676

2006 0.51 137.84 60.71 -0.07

0.0049

2007 1.02 275.68 200.00 0.44

0.1936


Mean: - 0.58

S.D:- 0.18

C.V:- 31.50 The above Table No. 4.91 reveals the yearly Quick Ratio of “Dubai Development

Company” UAE for the period 2001 – 2007. The lowest Quick Ratio in year 2003 at

0.16 and it is highest at 1.02 in the year 2007. The average Quick Ratio for the

company is 0.58 and Standard Deviation is 0.18. The Coefficient of Variation

indicates at 31.50. In the year 2007 the Ratio was above 1. It has not reached the

level 1:1 in all years undertaken from 2001 to 2006. It means the company has better

liquidity position as measured by the Quick Ratio.

157

Table No.4.92

EMAAR PROPERTIES [EMAAR] CONSTRUCTION COMPANY OF UAE


YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.92 100.00 100.00 -0.29

0.4225

2002 0.67 72.83 72.83

-0.54 0.2916

2003 0.58 63.04 86.57 -0.63

0.39331

2004 1.15 125.00 198.28 -0.06

0.00327

2005 1.51 164.13 131.30 0.30

0.09172

2006 1.64 178.26 108.61 0.43

0.18737

2007 1.98 215.22 120.73 0.77

0.59731


Mean: - 1.21

S.D:- 0.28

C.V:- 23.52 The Table No 4.92 gives the Quick Ratio for period 2001 - 2007 of “Emaar Properties

UAE” The highest quick ratio is observe in the year 2007. The average Quick Ratio

for the period is 1.21 and Standard Deviation is determined to be 0.28. The

Coefficient of Variation is calculated at 23.52. The highest X2 was in 2007 at

0.59731.

158

Table No.4.93 UNION PROPERTIES [UPP]

CONSTRUCTION COMPANY OF UAE QUICK ASSETS TO CURRENT LIABILITIES

QUICK RATIO

YEARS QUICK RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.97 100.00 100.00 0.28

0.4225

2002 1.89 95.94 95.94

0.20 0.2916

2003 1.34 68.02 70.90 -0.35

0.1215

2004 1.29 65.48 96.27 -0.40

0.15886

2005 1.63 82.74 126.36 -0.06

0.00343

2006 1.98 100.51 121.47 0.29

0.08493

2007 1.72 87.31 86.87 0.03

0.00099


Mean: - 1.69

S.D:- 0.15

C.V:- 9.17

The Table No. 4.93 given above details of Quick Ratio pertaining to “Union

Properties UAE” for the period 2001 to 2007, on three occasions that is in the year

2003, 2004 and 2005 deviation from mean was negative. The average for the period

of study was at 1.69 and standard deviation at 0.15 and the Coefficient of Variation at

9.17 percent

159

Table No. 4.94


IT COMPANY OF INDIA AND CONSTRUCTION COMPANIES OF UAE ANALYSIS


Sr. No

NAME OF COMPANIES Means [SD/M*100]

CV

1

INDIA

H C L TECHNOLOGIES LTD

2.43 4.19

2 INFOSYS TECH LTD.

1.30 21.15

3 WIPRO LTD.

1.48 10.15

4

UAE


0.78 31.93


0.58 31.50


1.21 23.52


1.69 9.17


CONCLUSION (IT FOR INDIA AND CONSTRUCTION SECTOR UAE) A summary for Mean Quick Ratio for IT and Construction Companies of India and

UAE is presents in above Table No. 4.94. The Quick Ratio of IT Companies of India

which have 1:1. And in UAE Construction Companies, “Emaar Properties” and

“Union Properties” which is having Ratio 1:1 and the remaining Construction

Companies have low Quick Ratio which indicates the higher risk these companies are

taking and keeping the Quick assets minimum. During the period of study Coefficient

of Variation of Union Properties of UAE Construction companies is fluctuation.

160

Table No. 4.95

ICICI BANK INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.39 100.00 100.00 -0.66

0.4356

2002 1.47 105.75 105.76

-0.58 0.3364

2003 2.64 189.92 179.59 -0.59

0.3481

2004 1.98 142.44 75.00 -0.07

0.0049

2005 1.49 107.19 75.25 -0.56

0.3136

2006 2.65 190.64 177.85 0.60

0.36

2007 2.74 197.12 103.40 0.69

0.4761


Mean: - 2.05

S.D:- 0.32

C.V:- 15.61

The Debt Equity Ratio pertaining to ICICI Bank is shown in the Table No. 4.95 above

for the period from year 2001 to 2007. The Debt Equity Ratio is observing highest in

the year 2006 at 2.65. The average indicates at 2.05 with standard deviation 0.32. In

the year, 2006 the ratio is well above the average and the coefficient of variation

indicates at 15.61 percent.

161

Table No. 4.96

CANARA BANK INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.32 100.00 100.00 -0.25

0.0625

2002 0.45 34.09 34.09

-1.12 1.2544

2003 1.41 106.81 313.33 -0.16

0.0256

2004 2.35 178.03 166.67 0.78

0.6084

2005 1.45 109.84 61.70 -0.12

0.0144

2006 2.56 193.93 176.55 0.99

0.9801

2007 1.46 110.60 57.03 -0.11

0.0121


Mean: - 1.57

S.D:- 0.42

C.V:- 26.75 The details of Debt Equity ratios for Canara Bank India Ltd are furnished in Table

No.4.96 above for the period of 2001 – 2007. The Debt Equity Ratio has moved

between 2.56 and 0.45. The Standard Deviation indicates at 0.42 and average Debt

Equity Ratio for the period under study is computed at 51.57. And coefficient of

variation is observed to be at 26.75 percent

162

Table No. 4.97 STATE BANK OF INDIA

TOTAL LIABILITIES TO NET WORK DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.72 100.00 100.00 0.19

0.0361

2002 1.54 89.53 89.53

0.01 0.0001

2003 1.63 94.76 105.84 0.10

0.01

2004 1.74 101.11 106.75 0.21

0.0441

2005 1.44 83.72 82.76 -0.09

0.0081

2006 1.39 80.81 96.53 -0.14

0.0196

2007 1.28 74.41 92.09 -0.25

0.0625


Mean: - 1.53

S.D:- 0.03

C.V:- 1.96 Table No. 4.97 highlight the Debt Equity Ratio of “State Bank of India” for the period

of 2001 – 2007. Debt Equity Ratio average for the period was at 1.53 with standard

deviation 0.03. Coefficient of variation is computed at 1.96. The Debt Equity Ratio is

highest in the year 2004 and lowest in the year 2007 at 1.28 percent.

163

Table No. 4.98 ARAB BANK [ARABBANK] UAE


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.54 100.00 100.00 1.02

1.0404

2002 1.52 59.84 59.84

0.06 0.036

2003 2.63 103.54 173.03 1.11

1.2321

2004 0.98 38.58 37.26 -0.54

0.2916

2005 1.35 53.14 137.76 -0.17

0.0289

2006 0.65 25.59 48.15 -0.87

0.7569

2007 0.97 38.18 149.23 -0.55

0.3025


Mean: - 1.52

S.D:- 0.52

C.V:- 34.34

The above Table No. 4.98 presents Debt Equity Ratio pertaining to “Arab Bank

UAE”. In the year 2003 the Debt Equity Ratio is highest at 2.63. It went on declining

in subsequent year and reached all time low at 0.65 in 2006. The average for the entire

period indicates at 1.52, Standard Deviation at 0.52 and the coefficient of variation

was calculated at 34.34.

164

Table No. 4.99

ABU DHABI COMMERCIAL BANK [ADCB] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.75 100.00 100.00 -0.15

0.00225

2002 1.62 92.57 92.57

-0.28 0.0784

2003 1.53 87.42 94.44 -0.37

0.1369

2004 1.21 69.14 79.08 -0.69

0.4761

2005 1.58 90.28 130.58 -0.32

0.1024

2006 3.25 185.71 205.70 1.35

1.8225

2007 2.42 138.28 74.46 0.52

0.2704


Mean: - 1.90

S.D:- 0.41

C.V:- 21.84 The above Table No. 4.99 reveals the year-wise the Debt Equity Ratio of “Abu Dhabi

Commercial Bank UAE” for the period of study. Debt Equity Ratio average is 1.90.

Standard Deviation is 0.41. And Coefficient of variation indicates at 21.84. It is

observed that the ratio was on increasing trend.

165

Table No. 4.100

EMIRATES BANK [EBI] UAE TOTAL LIABILITIES TO NET WORTH

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.65 100.00 100.00 0.37

0.1369

2002 1.24 75.15 75.15

-0.04 0.0016

2003 0.46 27.88 37.10 -0.82

0.6724

2004 1.67 101.21 363.04 -0..39

0.1521

2005 0.25 15.15 14.97 -1.03

1.0609

2006 1.68 101.82 672.00 -0.40

0.16

2007 1.97 119.39 117.26 0.69

0.4761


Mean: - 1.28

S.D:- 0.38

C.V:- 29.69 The yearly Debt Equity Ratio of “Emirates Bank UAE” is given in Table No. 4.100

above. The average Debt Equity Ratio is 1.28. During the year 2007 the growth rate

as per fixed base was highest at 119.39. The standard deviation is computed at 0.38

and coefficient of variation is calculated at 29.69 percent.

166

Table No. 4.101

NATIONAL BANK OF ABU DHABI [NBAD] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.84 100.00 100.00 -0.44

0.1936

2002 0.38 45.24 45.24

-0.90 0.81

2003 2.64 314.29 694.74 1.36

1.8496

2004 2.08 247.62 78.79 0.80

0.64

2005 1.07 127.38 51.44 -0.21

0.0441

2006 0.44 52.38 41.12 -0.84

0.7056

2007 1.56 185.71 354.55 0.28

0.0784


Mean: - 1.28

S.D:- 0.61

C.V:- 47.66 The above Table No. 4.101 shows the Debt Equity Ratio a figure pertaining to

“National Bank of Abu Dhabi UAE” The debt equity ratio is fluctuating from year to

year, the highest ratio of 2.64 was observed in 2003. The year 2002 has the lowest

ratio at 0.38. The average for the period is 1.28 and Standard Deviation 0.61 and

Coefficient of Variation at 47.66 percent.

167

Table No.4.102 DEBT EQUITY RATIO

MEANS AND COEFFICIENT OF VARIATION BANKING SECTOR ANALYSIS


Sr.No NAME OF BANKS MEANS

[SD/M*100] CV

1

INDIA

ICICI BANK

2.05 15.61

2 CANARA BANK

1.57 26.75

3 STATE BANK OF INDIA

1.53 1.96

4

UAE


1.52 34.34


1.90 21.84


1.28 29.69


1.28 47.66

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (BANKING SECTOR) The Debt Equity Ratio of India and UAE Banking sector is presents in Table No.

4.102. All the Banks of India and UAE have shown significantly high Ratio of more

than 1. The Banks with high cash flow has recorded high debt equity ratio. The ICICI

bank of India is observed to have Debt-Equity Ratio as high as 2.05. This suggests

greater risk that the bank is taking for getting higher returns. The higher degree of

risk and greater scope of profitability are the features of high Debt-Equity Ratio. And

Coefficient of Variation of National Bank of Abu Dhabi is higher, a higher variation

indicates fluctuation. It shows that India Banking Sector have higher stability reflect.

168

Table No. 4.103 AMBUJA CEMENTS LTD. COMPANY OF INDIA


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.25 100.00 100.00 -1.69

2.8561

2002 2.64 1056.00 1056.00

0.70 0.49

2003 2.67 1068.00 101.14 0.73

0.5329

2004 2.57 1028.00 96.25 0.63

0.3969

2005 1.46 584.00 56.81 -0.48

0.2304

2006 3.46 1384.00 236.99 1.52

2.3104

2007 0.54 216.00 15.61 -1.40

1.96


Mean: - 1.94

S.D:- 1.25

C.V:- 64.43

Table No 4.103 highlights the yearly Debt Equity Ratio of “Ambuja Cement Ltd

India” for the year 2001 to 2007. The Debt Equity Ratio reveals that the average for

the period of study is 1.94 with Standard Deviation 1.25; Coefficient of variation is

computed at 64.43 percent. The highest Debt Equity Ratio in the year 2006 and lowest

in the year 2001 at 0.25 as shown in above table.

169

Table No. 4.104 DECCAN CEMENTS LTD. COMPANY OF INDIA


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.54 100.00 100.00 -1.35

1.8225

2002 0.68 125.92 125.92

-1.21 1.4641

2003 0.98 181.48 144.12 -0.91

0.8281

2004 2.55 472.22 260.20 0.66

0.4356

2005 1.46 270.37 57.25 -0.43

0.1849

2006 3.48 644.44 238.36 1.59

2.5281

2007 3.59 664.81 103.16 1.70

2.89


Mean: - 1.89

S.D:- 1.45

C.V:- 76.72

The Debt Equity Ratio for “Deccan Cement Ltd. India” are summarised in Table No.

4.104 above. It is observed that the Debt Equity Ratio is highest in the year 2007 at

3.59. The average is indicate at 1.89 with Standard Deviation is 1.45. In the year 2004

the ratio is well above the average except in the year 2005. The coefficient of

variation was computed at 76.72 percent.

170

Table No. 4.105 J K LAKSHMI CEMENTS LTD. COMPANY OF INDIA


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.25 100.00 100.00 -0.41

0.1681

2002 1.48 118.40 118.40

-0.18 0.0324

2003 1.89 151.20 127.70 0.23

0.0529

2004 1.96 156.80 103.70 0.30

0.09

2005 1.87 149.60 95.41 0.21

0.0441

2006 1.48 118.40 79.14 -0.18

0.0324

2007 1.75 140.00 118.24 0.09

0.0081


Mean: - 1.66

S.D:- 0.06

C.V:- 3.61

Table No. 4.105 gives the yearly Debt Equity Ratio of “JK Lakshmi Cement Ltd

India” for the period of study. The Debt Equity Ratio is observed to have range in

between 1.25 and 1.96. In the year 2004, the Debt Equity Ratio is highest at 1.96

which declined drastically in later year as it was 1.48 in 2006. In subsequent year it

improved at 1.75 in 2007. The average for the period is computed at 1.66 and

Standard Deviation 0.06. And coefficient of variation is calculated at 3.61.

171

Table No. 4.106 GULF CEMENT [GCEM] COMPANY OF UAE


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.63 100.00 100.00 0.23

0.0529

2002 1.94 119.02 119.02

0.54 0.2916

2003 0.75 46.01 38.66 -0.65

0.4225

2004 2.49 152.76 332.00 1.09

1.1881

2005 0.98 60.12 39.36 -0.42

0.1764

2006 0.64 39.26 65.31 -0.76

0.5776

2007 1.42 87.12 221.88 0.02

0.0004


Mean: - 1.40

S.D:- 0.39

C.V:- 27.86 Table No. 4.106 shows the Debt Equity Ratio of “Gulf Cement UAE company” for

the period of 2001 – 2007.The average Debt. Equity Ratio for the period is 1.40. The

year 2006 has recorded lowest ratio of 0.64. The higher Debt Equity Ratio is shown in

the year 2004 which is higher than average. The Standard Deviation is 0.39

Coefficient of Variation is determined at 27.86

172

Table No. 4.107 NATIONAL CEMENT [NCC] COMPANY OF UAE


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.86 100.00 100.00 0.52

0.2704

2002 1.97 105.91 105.91

0.63 0.3969

2003 0.43 23.11 21.83 -0.91

0.8281

2004 2.28 122.58 530.23 0.94

0.8836

2005 0.94 50.53 41.23 -0.40

0.16

2006 0.63 33.87 67.02 -0.71

0.5041

2007 1.27 68.27 201.59 -0.07

0.0049


Mean: - 1.34

S.D:- 0.44

C.V:- 32.84 The above Table No.4.107 reveals that the Debt Equity Ratio pertaining to “National

Cement UAE Company” for the period of study (2001 – 2007). The average for the

period is shown as 1.34. The highest Debt Equity Ratio is record in the year 2004 at

2.28 and lowest in 2003 at 0.43, the Debt Equity Ratio is fluctuating from year to

year. The Standard Deviation is indicated at 0.44 and the Coefficient of Variation is

determined at 32.84

173

Table No. 4.108

SHARJAH CEMENT [SCIDC] COMPANY OF UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.08 100.00 100.00 -0.17

0.0289

2002 1.64 151.85 151.85

0.39 0.1521

2003 0.93 86.11 56.71 -0.32

0.1024

2004 2.47 228.70 265.59 1.22

1.4884

2005 0.39 36.11 15.79 -0.86

0.7396

2006 0.76 70.37 194.87 -0.49

0.2401

2007 1.49 137.96 196.05 0.24

0.576


Mean: - 1.25

S.D:- 0.40

C.V:- 32.00

The yearly Debt Equity Ratio is presents in Table No. 4.108 pertain to “Sharjah

Cement company Ltd UAE” for the period 2001 to 2007. The Debt Equity Ratio

ranged in between 0.39 and 2.47. There is a wide fluctuation in the Debt Equity Ratio.

The Standard Deviation is 0.40. And the Coefficient of Variation at 32.00 and the

average of Debt Equity Ratio is 1.25

174

Table No.4.109

DEBT EQUITY RATIO MEANS AND COEFFICIENT OF VARIATION



Sr.No

CEMENT COMPANIES Means [SD/M*100] CV

1

INDIA

AMBUJA CEMENT LTD.

1.94 64.43


1.89 76.72

3 JK LAKSHMI CEMENT LTD. 1.66 3.61

4

UAE

GULF CEMENT [GCEM]

1.40 27.86


1.34 32.84


1.25 32.00


CONCLUSION (CEMENT SECTOR)

The above given Table No. 4.109 details the average Debt Equity Ratio of Cement

Companies from India and UAE. The Debt Equity Ratio at Ambuja Cements India is

highest at 1.94. It is further observed that the Cement Companies from India have

Debt Equity Ratio above 1.5 while there from UAE have Debt Equity Ratio below

1.5. Coefficient of Variation [CV] of Indian Cement Companies is higher which is

more than UAE Cement companies.

175

Table No. 4.110

NATIONAL INSURANCE COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.25 100.00 100.00 0.01

0.0001

2002 3.64 161.77 98.10

1.40 1.96

2003 1.54 68.44 161.78 -0.70

0.49

2004 3.64 161.77 42.31 1.40

1.96

2005 0.25 11.11 236.36 -1.99

3.9601

2006 0.64 28.44 6.87 -1.60

2.56

2007 3.78 168.00 256.00 1.54

2.3716


Mean: - 2.24

S.D:- 1.90

C.V:- 84.82 The year - wise Debt Equity Ratio for National Insurance India as presented in above

Table No. 4.110. It is highest at 3.78 in 2007. It was lowest at 0.25 in 2005. The

average for the period was 2.24 and Standard Deviation is 1.90. The Coefficient of

Variation is at 84.82 percent.

176

Table No. 4.111

ORIENTAL INSUREANCE COMPANY OF INDIA TOTAL LIABILITIES TO NET WORTH

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.65 100.00 100.00 1.14

1.2996

2002 2.44 66.84 66.84

-0.07 0.0049

2003 2.69 73.69 110.25 0.18

0.0324

2004 2.47 67.67 91.82 -0.04

0.0016

2005 1.68 46.02 68.02 -0.83

0.6889

2006 1.99 54.52 118.45 -0.52

0.2704

2007 2.68 73.42 134.67 0.17

0.0289


Mean: - 2.51

S.D:- 0.33

C.V:- 13.15 Table No. 4.111 shows the year-wise Debt Equity Ratio of “Oriental Insurance India”

for the period under study 2001 to 2007. The average Debt Equity Ratio for the period

is record at 2.51 percent and Standard Deviation is computed at 0.33. The Debt Equity

Ratio is fluctuated over the year. The higher Ratio is observed at 3.65 in the base year

2001 and the lowest at 1.68 for the 2005. The Coefficient of Variation is at 13.15

percent.

177

Table No. 4.112

UNITED INDIA INSURANCE COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.46 100.00 100.00 0.94

0.8836

2002 2.16 87.80 87.80

0.64 0.4096

2003 1.83 74.39 84.72 0.31

0.0961

2004 1.19 48.37 65.03 -0.33

0.1089

2005 1.20 48.78 100.84 -0.32

0.1024

2006 0.15 6.09 12.50 -1.37

1.8769

2007 1.68 68.29 1120.00 0.16

0.0256


Mean: - 1.52

S.D:- 0.50

C.V:- 32.89

The Debt Equity Ratio for year 2001 – 2007 of “United India Insurance Company” is

furnished in Table No. 4.112. The Debt Equity Ratio is move in between 2.46 to 0.15.

The Standard Deviation is 0.50 and the average ratio for the period under study is

computed at 1.52. Further Coefficient of Variation is at 32.89 percent.

178

Table No. 4.113

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.78 100.00 100.00 -0.24

0.0576

2002 0.64 82.05 82.05

-0.38 0.1444

2003 1.35 173.07 210.94 0.33

0.1089

2004 0.76 97.43 56.30 -0.26

0.0676

2005 1.98 253.84 260.53 0.96

0.9216

2006 0.21 26.92 10.61 -0.81

0.6561

2007 1.43 183.33 680.95 0.41

0.1681


Mean: - 1.02

S.D:- 0.30

C.V:- 29.41 Table No. 4.113 above gives the yearly Debt Equity Ratio of “Abu Dhabi National

Insurance company” UAE for the period of study. The highest Debt Equity Ratio is

observed in the year 2005 at 1.98. In the year 2001, 2002, 2004 and 2006 deviation of

mean is negative. During the period of study the Debt Equity Ratio was fluctuating.

The average of Debt Equity Ratio is 1.02 and Standard Deviation at 0.30 And

Coefficient of Variation is determining at 29.41.

179

Table No. 4.114

ALLIANCE INSURANCE [ALLIANCE] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.39 100.00 100.00 0.09

0.0081

2002 0.75 53.96 53.96

-0.55 0.3025

2003 1.81 130.22 241.33 0.51

0.2601

2004 0.64 46.04 35.36 -0.66

0.4356

2005 1.72 123.74 268.75 0.42

0.1764

2006 0.82 58.99 47.67 -0.48

0.2304

2007 1.99 143.17 242.68 0.69

0.4761


Mean: - 1.30

S.D:- 0.27

C.V:- 20.77 The Table No. 4.114 shows the figures of Debt Equity Ratio of “Alliance Insurance

UAE” for the period 2001 to 2007. The Debt Equity Ratio ranged in between 1.99 to

0.64. The average for the period is indicates at 1.30 and Standard Deviation is 0.27

And the Coefficient of Variation at 20.77.

180

Table No. 4.115

DUBAI NATIONAL INSURANCE [DNIR] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.36 100.00 100.00 -1.17

1.3689

2002 3.65 154.66 154.66

0.12 0.0144

2003 2.35 99.57 64.38 -1.18

1.3924

2004 4.68 198.30 199.15 1.15

1.3225

2005 5.36 227.11 114.53 1.83

3.3489

2006 3.64 154.23 67.91 0.11

0.0121

2007 2.69 113.98 73.90 -0.84

0.7056


Mean: - 3.53

S.D:- 1.17

C.V:- 33.14 The Debt Equity Ratio for 2001 – 2007 of “Dubai National Insurance” UAE are

summarised in Table No. 4.115 above. The average Debt Equity Ratio is 3.53. The

Standard Deviation is 1.17. The highest Debt Equity Ratio is show in the year 2005 at

5.36 and the lowest in the year 2003 at 2.35. On 03 occasions that is in the year 2001,

2003 and 2007 Deviation of mean is negative and Coefficient of Variation was


181

Table No. 4.116

UNITED INSURANCE COMPANY [UIC] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.63 100.00 100.00 0.99

0.9801

2002 1.96 74.52 74.52

0.32 0.1024

2003 0.99 37.64 50.51 -0.65

0.4225

2004 0.87 33.08 87.88 -0.77

0.5929

2005 1.43 54.37 164.37 -0.21

0.0441

2006 1.91 72.62 133.57 0.27

0.0729

2007 1.72 65.40 90.05 0.08

0.0064


Mean: - 1.64

S.D:- 0.32

C.V:- 19.51 Table No. 4.116 depicts the Debt Equity Ratio value for 2001 – 2007 of “United

Insurance UAE”. The Debt Equity Ratio average is 1.64 and Standard Deviation at

0.32. Coefficient of Variation is compute at 19.51. In the year 2003, 2004 and 2005

Deviation of mean is observed negative.

182

Table No. 4.117 DEBT EQUITY RATIO

MEANS AND COEFFICIENT OF VARIATION INSURANCE SECTOR ANALYSIS


Sr. No NAME OF INSURANCE

COMPANIES MEANS [SD/M*100]

CV

1

INDIA

NATIONAL INSURANCE

2.24 84.82


2.51 13.15


1.52 32.89

4

UAE


1.02 29.41


1.30 20.77

6 DUBAI NATIONAL INSURANCE [DNIR]

3.53 33.14

7 UNITED INSURANCE [UIC] 1.64 19.51

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (INSURANCE SECTOR) Table 4.117 highlights the Mean Debt Equity Ratio of Insurance companies of India

and UAE under study. The highest Debt Equity Ratio is at 3.53 for Dubai National

Insurance UAE. On the other hand Oriental Insurance India is maintaining Debt

Equity Ratio at 2.51. This suggests that both countries are depending mainly on

internal sources and owners funds. A considerable degree of risk is involved when a

business is financed to a large extent by creditors. Higher Coefficient of Variation in

National Insurance Company of India and Dubai National Insurance Company UAE

is present.

183

Table No. 4.118 CADILA HEALTHCARE PHARAMACEUTICAL

COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 -0.01

0.0001

2002 2.98 191.03 191.03

1.41 1.9881

2003 1.78 114.10 59.73 0.21

0.0441

2004 1.66 106.41 93.26 0.09

0.0081

2005 0.45 28.85 27.11 -1.12

1.2544

2006 0.93 59.62 206.67 -0.64

0.4096

2007 1.33 85.26 143.01 -0.24

0.0576


Mean: - 1.57

S.D:- 0.54

C.V:- 34.39

Table No. 4.118 gives the Debt Equity Ratio for the period 2001 – 2007 of “Cadila

Health Care” company of India for the period of study 2001 to 2007. The average

Debt Equity Ratio for the period is shown as 1.57 percent and Standard Deviation is

0.54. The highest Debt Equity Ratio observed in the year 2002 at 2.98 percent and the

lowest at 0.45 in 2005.And Coefficient of variation at 34.39.

184

Table No. 4.119

CIPLA LTD. PHARAMACEUTICAL COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.26 100.00 100.00 -0.28

0.0784

2002 2.56 203.17 203.17

1.02 1.0404

2003 1.84 146.03 71.88 0.30

0.09

2004 1.96 155.56 106.52 0.42

0.1764

2005 0.87 69.05 44.39 -0.67

0.4489

2006 0.35 27.78 40.23 -1.19

1.4161

2007 1.96 155.56 560.00 0.42

0.1764


Mean: - 1.54

S.D:- 0.49

C.V:- 31.82 Table No.4.119 states the year wise Debt Equity Ratio pertaining to “Cipla Pharma

Co. Ltd India” for the period of study is observed to have, the Debt Equity Ratio is

fluctuate from year to year. The Highest Debt Equity Ratio recorded in two year that

is 2004 and 2007. The year 2006 has the lowest Debt Equity Ratio at 0.35 The

Average for the period is 1.54 and Standard Deviation is 0.49, Coefficient of

Variation is computed at 31.82.

185

Table No. 4.120

SUN PHARMA. COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.45 100.00 100.00 0.55

0.3025

2002 3.64 148.57 148.57

1.74 3.0276

2003 1.95 79.59 53.57 0.05

0.0025

2004 1.73 70.61 88.72 -0.17

0.0289

2005 0.98 40.00 56.65 -0.92

0.8464

2006 0.88 35.92 89.80 -1.02

1.0404

2007 1.69 68.98 192.05 -0.21

0.0441


Mean: - 1.90

S.D:- 0.76

C.V:- 40.00 The above given Table No. 4.120 details the yearly Debt Equity Ratio pertaining to

“Sun Pharma” company India for the period under of study 2001 to 2007 The average

for the period is shown as 1.90 with standard deviation of 0.76, In the year 2001 and

2002 the Debt Equity Ratio is well above the average and coefficient of variation is

indicates at 40.00

186

Table No. 4.121

GULF MEDICAL PROJECTS [GMPC] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.74 100.00 100.00 0.37

0.1369

2002 1.85 106.32 106.32

0.48 0.2304

2003 0.94 54.02 50.81 -0.43

0.1849

2004 2.08 119.50 221.28 0.71

0.5041

2005 0.97 55.74 46.63 -0.40

0.16

2006 0.74 42.52 76.29 -0.63

0.3969

2007 1.33 76.43 179.73 -0.04

0.0016


Mean: - 1.37

S.D:- 0.23

C.V:- 16.79

The Debt Equity Ratio of “Gulf Medical” UAE for the period under study 2001 to

2007 is given in Table No.4.121 above. The Average for the period is shown 1.37.

The high Debt Equity Ratio recorded in the year 2004 at 2.08. The Debt Equity Ratio

fluctuating from year to year. The Standard Deviation indicates at 0.23 and

Coefficients of Variation at 16.79.

187

Table No. 4.122

GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.05 100.00 100.00 -0.18

0.0324

2002 1.66 158.10 158.10

0.43 0.1849

2003 0.09 8.57 5.42 -1.14

1.2996

2004 2.65 252.38 2944.44 1.42

2.0164

2005 0.43 40.95 16.23 -0.80

0.64

2006 0.82 78.10 190.70 -0.41

0.1681

2007 1.97 187.62 240.24 0.74

0.5476


Mean: - 1.23

S.D:- 0.70

C.V:- 56.91 Table No. 4.122 provides the year – wise Debt Equity Ratio of “Gulf Pharmaceutical”

UAE for the period under study 2001 to 2007 is present. The Average for the period

is shown as 1.23. The highest Debt Equity Ratio recorded in the year 2004 at 2.65 and

the lowest in 2003 at 0.09. The Debt Equity Ratio fluctuating from year to year. The

Standard Deviation indicated at 0.70 and Coefficient of Variation at 56.91 percent.

188

Table No.4.123


PHARAMACEUTICAL SECTOR ANALYSIS [INDIA & UAE]


Sr.No

PHARMA COMPANIES MEANS [SD/M*100] CV

1

INDIA

CADILA HEALTH CARE

1.57 34.39

2 CIPLA LTD.

1.54 31.82

3 SUN PHARMA.

1.90 40.00

4

UAE


1.37 16.79


1.23 56.91

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (PHARMACEUTICAL SECTOR) The mean Debt Equity Ratio for Pharma Companies is given in the Table No. 4.123.

The higher means indicates India Sun Pharma Company. UAE Pharma companies

have shown the Debt Equity Ratio not as much of Indian Pharma Companies. This

suggests that the Indian companies are working under greater risk getting higher

returns. The higher degree of risk and greater scope of profitability are the features of

higher debt Equity ratio. During the period of study the UAE Gulf Pharma Industries

(JULPHAR) has higher Coefficient of Variation. Higher variation indicated

fluctuation and lowest indicated stabilities in ratios

189

Table No. 4.124

TATA COMMUNICATION COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.56 100.00 100.00 0.86

0.7396

2002 1.65 64.45 64.45

-0.05 0.0025

2003 1.36 53.13 82.42 -0.34

0.1156

2004 1.88 73.44 138.24 0.18

0.0324

2005 0.93 36.33 49.47 -0.77

0.5929

2006 0.69 26.95 74.19 -1.01

1.0201

2007 2.85 111.33 413.04 1.15

1.3225


Mean: - 1.70

S.D:- 0.50

C.V:- 29.41

The detail of Debt Equity Ratio for “Tata Communication” is furnished in Table

No.4.124 above for the period from 2001 to 2007. The Debt Equity Ratio have move

in between 2.85 and 0.69. The standard deviation indicates at 0.50 and average Debt

Equity Ratio for the period under study computed at 1.70. The Coefficient of

Variation at 29.41

190

Table No. 4.125

BHARTI AIRTEL LTD COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ---- ----- ------ -----

------

2002 2.09 100.00 100.00

0.68 0.4624

2003 0.69 33.01 33.01 0.72

0.5184

2004 2.15 102.87 311.59 0.74

0.5476

2005 0.89 42.58 41.40 -0.52

0.2704

2006 0.98 46.89 110.11 -0.43

0.1849

2007 0.98 81.82 174.49 0.30

0.81


Mean: - 1.41

S.D:- 0.35

C.V:- 24.82 Table No.4.125 depicts the Debt Equity Ratio values fro year 2002 – 2007 for “Bharti

Airtel Ltd” India. The data for the year 2001 is not available the average for the

period 1.41. Three occasions that is 2005, 2006 and 2007 deviation from mean is

observe negative, Standard Deviation is 0.35. The Coefficient of Variation is

computed at 24.82.

191

Table No. 4.126

MTNL TELECOMMUNICATION COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.52 100.00 100.00 0.07

0.0049

2002 1.64 107.89 107.89

0.19 0.0361

2003 1.26 82.89 76.83 -0.19

0.0361

2004 1.45 95.39 115.08 -0.90

0.81

2005 0.96 63.16 66.21 -0.49

0.2401

2006 0.59 38.82 61.46 -0.86

0.7396

2007 2.78 182.89 471.19 1.33

1.7689


Mean: - 1.45

S.D:- 0.52

C.V:- 35.86 The above given Table No 4.126 gives the year-wise Debt Equity Ratio of “MTNL

India” for the period under study 2001 to 2007. The Debt Equity Ratio as presents in

above table reveals that it is highest at 2.78 in the year 2007. The average Debt Equity

Ratio for the period recorded at 1.45 percent and Standard Deviation is 0.52. In the

year 2007 the highest X2 recorded at 1.7689. The Coefficient of variation was at 35.86

percent.

192

Table No. 4.127

ETISALAT TELCOM COMPANY OF UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.65 100.00 100.00 1.37

1.8769

2002 2.46 67.40 67.40

0.18 0.0324

2003 2.74 75.07 111.38 0.46

0.2116

2004 2.63 72.05 95.99 0.35

0.1225

2005 1.52 41.64 57.79 -0.76

0.5776

2006 1.39 38.08 91.45 -0.89

0.7921

2007 1.61 44.11 115.83 -0.67

0.4489


Mean: - 2.28

S.D:- 0.58

C.V:- 25.44 The above given Table No. 4.127 shows the figure of Debt. Equity Ratio of “Etisalat

Telecom” UAE company for the period of study. A lowest Debt Equity Ratio

recorded at 1.39 in the year 2006. The higher Debt Equity Ratio in the base year 2001

and Standard Deviation at 0.58 and the Coefficient of Variation is computed as at

25.44 percent

193

Table No. 4.128


TELECOM SECTOR ANALYSIS [INDIA & UAE]


Sr.No TELECOM COMPANIES MEANS [SD/M*100]

CV

1

INDIA

TATA COMMUNICATION

1.70 29.41

2 BHARTI AIRTEL LTD

1.41 24.82

3 MTNL. INDIA

1.45 35.86


2.28 25.44

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (TELECOMMUNICATION SECTOR) Table No. 4.128 provides a summary of the Mean of Debt Equity Ratio for

Telecommunication sector for India and UAE. The performance of Etisalat Telecom

UAE and Tata Communication of India is observes higher Debt Equity Ratio. All

telecom companies India and UAE have shown significantly high average of more

than 1. These suggest greater risk these companies are taking for getting higher return.

It is also observed that the Etisalat Telecom Companies UAE is having high Debt

Equity Ratio [2.28]. This indicates the high risk borne by the company.

194

Table No. 4.129

STEEL AUTHORITY OF INDIA LTD TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.25 100.00 100.00 -0.48

0.2304

2002 1.64 131.20 131.20

-0.09 0.0081

2003 1.87 149.60 114.02 0.14

0.0196

2004 0.98 78.40 52.41 -0.75

0.5625

2005 1.25 100.00 127.55 -0.48

0.2304

2006 2.64 211.20 211.20 0.91

0.8281

2007 2.54 203.20 96.21 0.81

0.6561


Mean: - 1.73

S.D:- 0.36

C.V:- 20.81

The above given Table No. 4.129 provides the Debt Equity Ratio of “Steel Authority

of India Ltd” for the period of study. The Debt Equity Ratio is recorded lowest at

0.98 in the year 2004 and the highest in year 2.64 in the year 2006. The mean Debt

Equity Ratio is 1.73 for the period under study and Standard Deviation at 0.36 and

Coefficient of Variation at 20.81. It is observed that the Debt Equity Ratio on

increasing trend in 2006 and 2007 when it was more than 1 percent.

195

Table No. 4.130

STEEL COMPANY GUJARAT LTD. INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.54 100.00 100.00 0.05

0.0025

2002 1.75 113.63 113.64

0.26 0.0676

2003 1.96 127.27 112.00 0.47

0.2209

2004 1.54 100.00 78.57 0.05

0.0025

2005 0.92 59.74 59.74 -0.57

0.3249

2006 0.56 36.36 60.87 -0.93

0.8649

2007 2.18 141.55 389.29 0.69

0.4761


Mean: - 1.49

S.D:- 0.28

C.V:- 18.79

Table No. 4.130 gives the Debt Equity Ratio of “Steel Company Gujarat Ltd” for the

period 2001 – 2007. The Debt Equity Ratio moved in between 0.56 and 2.18 during

the period of study. The average Debt Equity Ratio for the period at 1.49 with

Standard Deviation 0.28 Coefficient of Variation is computed at 18.79 percent. The

Debt Equity Ratio highest in the year 2007 at 2.18.

196

Table No. 4.131

BOULDER STEEL [BGD] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.25 100.00 100.00 -0.16

0.0256

2002 1.75 140.00 140.00

0.34 0.1156

2003 0.64 51.20 36.57 -0.77

0.5929

2004 2.89 231.20 451.56 1.48

2.1904

2005 0.73 58.40 25.26 -0.68

0.4624

2006 0.81 64.80 110.96 -0.60

0.36

2007 1.84 147.20 227.16 0.43

0.1849


Mean: - 1.48

S.D:- 0.56

C.V:- 37.83 The above Table No. 4.131 presents the Debt Equity Ratio of “Boulder Steel

Company of UAE” for the period under study 2001 to 2007. The average for the

period is shown at 1.41. The highest Debt Equity Ratio recorded in the year 2004 at

2.89 and the lowest in 2003 at 0.64. The Debt Equity Ratio fluctuates from year to

year. The Standard Deviation is indicated at 0.56 and Coefficient of Variation is


197

Table No. 4.132 JAZEERA STEEL [ATMI] UAE


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.75 100.00 100.00 0.31

0.0961

2002 1.96 112.00 112.00

0.52 0.2704

2003 0.43 24.57 21.94 -1.01

1.0201

2004 2.61 149.14 606.98 1.17

1.3689

2005 0.84 48.00 32.18 -0.60

0.36

2006 0.55 31.43 65.48 -0.89

0.7921

2007 1.94 110.86 352.73 0.50

0.25


Mean: - 1.44

S.D:- 0.59

C.V:- 40.97 The above Table No. 4.132 reflects the Debt Equity Ratio of “Jazeera Steel Company

of UAE” for the period under study 2001 to 2007. The average for the period is

shown as 1.44. The highest Debt Equity Ratio recorded in the year 2004 at 2.61 the

ratio fluctuates from year to year. The Standard Deviation is 0.59 and Coefficient of

Variation indicates at 40.97 percent.

198




Sr.No IRON AND STEEL


CV

1

INDIA


1.73 20.81


1.49 18.79

3

UAE

BOULDER STEEL

1.48 37.83


1.44 40.97

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IRON AND STEEL SECTOR)

Table No.4.133 highlights the Mean Debt Equity Ratio for Iron and Steel Companies

for India and UAE. The highest average was observed at 1.73 for steel authority of

India Ltd, All Steel Companies of India and UAE have shown significantly high

average of more than 1. The companies with a high cash flow have recorded high

Debt Equity Ratio. This suggests considerable risk is involved when a company is

financed to a large extent by creditors, and company is depending mainly on internal

sources and owners funds. During the period of Study Coefficient of Variation of

UAE Iron and Steel companies if observe highest and the highest variation indicated

fluctuation and lowest indicated stabilities in ratios.

199

Table No. 4.134 H C L TECHNOLOGYIES LTD. IT COMPANY OF INDIA


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.45 100.00 100.00 -0.87

0.7569

2002 1.63 112.41 112.41

-0.69 0.4761

2003 1.95 134.48 119.63 -0.37

0.1369

2004 0.89 61.38 45.64 -1.43

2.0449

2005 3.87 266.90 434.83 1.55

2.4025

2006 2.59 178.62 66.93 0.27

0.0729

2007 3.88 267.59 149.81 1.56

2.4336


Mean: - 2.32

S.D:- 1.19

C.V:- 51.29 The Table No. 4.134 above shows the Debt Equity Ratio of “HCL Technologies Ltd”

India for the period under study. The table states that the Debt Equity Ratio during the

period ranged in between 0.89 and 3.88. In the year 2007 the Debt Equity Ratio is

observes highest at 3.88, and the lowest Debt Equity Ratio recorded 0.89 in the year

2004. The average Debt Equity Ratio is shown at 2.32 and Standard Deviation at 1.19

Coefficient of variation is determined at 51.29 percent.

200

Table No. 4.135 INFOSYS TECH LTD. IT COMPANY OF INDIA


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.23 100.00 100.00 -0.27

0.0729

2002 1.63 132.52 132.52

0.13 0.0169

2003 1.52 123.57 93.25 0.02

0.004

2004 0.23 18.69 15.13 -1.27

1.6129

2005 2.25 182.92 978.26 0.75

0.5625

2006 1.56 126.82 69.33 0.06

0.0036

2007 2.09 169.91 133.97 0.59

0.3481


Mean: - 1.50

S.D:- 0.37

C.V:- 24.67 Table No. 4.135 presents the Debt Equity Ratio of “Infosys Tech Ltd” for the period

2001 – 2007. The highest Debt Equity Ratio is in the year 2005 at 2.25 which

declined drastically in later year. It improved at the end of the financial year 2007 it is

2.09.The average for the period is computed at 1.50 and Standard Deviation at

0.37.Coefficeint of variation is at 24.67.

201

Table No. 4.136 WIPRO LTD. IT COMPANY OF INDIA TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.66 100.00 100.00 -0.07

0.0049

2002 1.24 74.70 74.70

-0.49 0.02401

2003 1.12 67.46 90.32 -0.61

0.3721

2004 2.06 124.09 183.93 0.33

0.1089

2005 1.59 95.78 77.18 -0.14

0.0196

2006 1.89 113.85 118.87 0.16

0.0256

2007 2.56 154.21 135.45 0.83

0.6889


Mean: - 1.73

S.D:- 0.21

C.V:- 12.14 The Debt Equity Ratio of “Wipro Ltd India” for the period 2001 – 2007 is given in

Table No. 4.136 above. The Debt Equity Ratio is found moving between 1.12 and

2.56. The average for the period is indicates at 1.73 and Standard Deviation at 0.21.

The coefficient of variation is at 12.14 percent.

202

Table No. 4.137 ABU DHABI NATIONAL COMPANY FOR BUILDING

MATERIALS [BILDCO] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.45 100.00 100.00 0.43

0.1849

2002 1.96 80.00 80.00

-0.06 0.36

2003 2.36 96.32 120.41 0.34

0.1156

2004 2.54 103.67 107.63 0.52

0.2704

2005 1.49 60.81 58.66 -0.53

0.2809

2006 1.56 63.67 104.70 -0.46

0.2116

2007 1.78 72.65 114.10 -0.24

0.0576


Mean: - 2.02

S.D:- 0.21

C.V:- 10.45 The year – wise Debt Equity Ratio values of “Abu Dhabi National Company for

Building Material” is presents in Table No. 4.137 above. The average of Debt Equity

Ratio is 2.02. The highest Debt Equity Ratio observes in 2004 at 2.54 and the lowest

is in the year 2005 at 1.49. Negative deviations from mean are recorded for year 2002,

2005, 2006 and 2007 Standard Deviation at 0.21 and Coefficient of Variation at

10.45.

203

Table No. 4.138

DUBAI DEVELOPMENT COMPANY [DDC] UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.25 100.00 100.00 -0.33

0.1089

2002 2.36 188.80 188.80

-0.78 0.6084

2003 3.69 295.20 156.36 2.11

4.4521

2004 0.59 47.20 15.99 -0.99

0.9801

2005 0.36 28.80 61.02 -1.22

1.4884

2006 0.89 71.20 247.22 -0.69

0.4761

2007 1.97 157.60 221.35 0.39

0.1521


Mean: - 1.58

S.D:- 1.18

C.V:- 74.68 The above Table No. 4.138 reveals the yearly Debt Equity Ratio of “Dubai

Development Company” for period 2001 – 2007. It is observed to have ranged in

between 0.36 and 3.69. The highest Debt Equity Ratio observes in the year 2003 at

3.69 and lowest in the year 2005 at 0.36. The average for the above table is at 1.58.

And Standard Deviation at 1.18 and Coefficient of Variation at 74.68

204

Table No. 4.139 EMAAR PROPERTIES [EMAAR]

CONSTRUCTION COMPANY OF UAE TOTAL LIABILITIES TO NET WORK

DEBT EQUITY RATIO

YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.38 100.00 100.00 -1.05

1.1025

2002 2.69 194.93 194.93

0.26 0.0676

2003 5.17 374.64 192.19 2.74

7.5076

2004 2.19 158.90 42.36 -0.24

0.0576

2005 1.49 107.97 68.04 -0.94

0.8836

2006 1.96 142.03 131.54 -0.47

0.2209

2007 2.18 157.97 111.22 -0.25

0.0625


Mean: - 2.43

S.D:- 1.41

C.V:- 58.02

Table No. 4.139 gives the Debt Equity Ratio for period 2001 – 2007 of “Emaar

Properties” UAE. The Debt Equity Ratio have moved in between 5.17 and 1.38 the

Standard Deviation is indicated at 1.41 and the average Debt Equity Ratio for the

period under study computed at 2.43, and the coefficient of variation at 58.02.

205

Table No. 4.140 UNION PROPERTIES [UPP] UAE


YEARS DEBT

EQUITY RATIO

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.26 100.00 100.00 -0.81

0.6561

2002 4.25 337.30 337.30

2.18 4.7524

2003 0.94 74.60 22.12 -1.13

1.2769

2004 0.63 50.00 67.02 -1.44

2.0736

2005 1.74 138.10 276.19 -0.33

0.1089

2006 2.55 202.38 146.55 0.48

0.2304

2007 3.16 250.79 123.92 1.09

1.1881


Mean: - 2.07

S.D:- 1.47

C.V:- 71.01 Table No. 4.140 highlight the details of Debt Equity Ratio of “Union Properties UAE

companies “for the period of study. The average for the period under study at 2.07, on

four occasion deviation from mean is negative, Standard Deviation at 1.47. As per

fixed base method was more than 200 in the year 2007 which is 250.79 and the

coefficient of variation at 71.01.

206


MEANS AND COEFFICIENT OF VARIATION IT OF INDIA & CONSTRUCTION OF UAE SECTOR ANALYSIS


Sr.No NAME OF COMPANIES MEANS

[SD/M*100] CV

1

INDIA


2.32 51.29


3 WIPRO LTD. 1.73 12.14

4

UAE


2.02 10.45


1.58 74.68


2.43 58.02


2.07 71.01


(IT FOR INDIA AND CONSTRUCTION SECTOR UAE)

A summary of the Mean Debt Equity Ratio IT companies for India and Construction

Companies from UAE is presented in Table No.4.141. The highest means of 2.32 and

2.43 was indicates by HCL Technologies India and Emaar Properties UAE. Both

Sectors IT India and Construction UAE have shown significantly high average of

more than 1. Both Sectors with a high cash flow have recorded high Debt Equity

Ratio. This suggests firm is depending mainly on internal sources and owners funds.

Coefficient of variation Dubai Development Company of UAE is higher as again to

other companies. During the period of study IT sector of India and Construction

Sector of UAE is Booming sector and there is a lot of investment needed in both

sector.

207

Table No. 4.142 ICICI BANK INDIA

LONG TERM DEBT TO TOTAL CAPITALISATION DEBT TO TOTAL CAPITAL

YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.49 100.00 100.00 -0.18

0.0324

2002 0.68 128.57 128.57

-0.04 0.0016

2003 0.99 202.04 157.14 -0.04

0.0016

2004 0.68 138.78 68.69 0.01

0.0001

2005 0.47 95.92 69.12 -0.20

0.04

2006 0.69 140.82 146.81 0.02

0.0004

2007 0.74 151.02 107.25 0.07

0.0049


Mean: - 0.67

S.D:- 0.03

C.V:- 4.47

The year – wise Debt to Total Capital Ratio of “ICICI Bank” India is presented in the

Table No. 4.142 pertains to for the period under study 2001 to 2007. The average

Debt to Total Capital Ratio for the period recorded at 0.67 and standard deviation at

0.03. And the coefficient of variation is determined at 4.47 percent.

208

Table No. 4.143 CANARA BANK INDIA


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.38 100.00 100.00 -0.18

0.3188776

2002 0.45 118.42 118.42

-0.11 0.01178776

2003 0.97 255.26 215.56 0.41

0.16927347

2004 0.49 128.95 50.52 -0.07

0.00470204

2005 0.47 123.68 95.92 -0.09

0.0078449

2006 0.74 194.74 157.45 0.18

0.03291633

2007 0.41 107.89 55.41 -0.15

0.02207347


Mean: - 0.56

S.D:- 0.04

C.V:- 7.17 Table No. 4.143 above presents the year – wise details of Debt to Total Capital Ratio

of “Canara Bank India Ltd” for the period under study. In the year 2003, the Debt to

Total Capital Ratio highest at 0.97.The average Debt to Total Capital for the period

under study is record at 0.56. And standard deviation is compute at 0.04. The

coefficient of variation is calculated at 7.17 percent.

209

Table No. 4.144 STATE BANK OF INDIA


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.58 100.00 100.00 0.07

0.0049

2002 0.92 158.62 158.62

0.41 0.1681

2003 0.45 77.58 48.91 -0.06

0.0036

2004 0.63 108.62 140.00 0.12

0.0144

2005 0.38 65.51 60.32 -0.13

0.0169

2006 0.49 84.48 128.95 -0.02

0.0004

2007 0.18 31.03 36.73 -0.33

0.1089


Mean: - 0.51

S.D:- 0.05

C.V:- 9.80

The yearly Debt to Total Capital Ratio of “State Bank of India” for the period of study

is given in Table No. 4.144 above. The average Debt to Total Capital Ratio for the

period at 0.51 and Standard deviation is computed at 0.05. Coefficient of variation is

calculated at 9.80 percent.

210

Table No. 4.145 ARAB BANK [ARABBANK] UAE


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.86 100.00 100.00 0.30

0.09

2002 0.91 105.81 105.81

0.35 0.1225

2003 0.79 91.86 86.81 0.23

0.0529

2004 0.63 73.25 79.75 0.07

0.049

2005 0.13 15.11 20.63 -0.43

0.1849

2006 0.43 50.00 330.77 -0.13

0.0169

2007 0.18 20.93 41.86 -0.38

0.1444


Mean: - 0.56

S.D:- 0.088

C.V:- 15.71

The Debt to Total Capital Ratio for period 2001 – 2007 of “Arab Bank UAE” is given

in Table No. 4.145 above. It is revealed that Debt to Total Capital Ratio has ranged in

between 0.13 and 0.91. From 2003 onward more or less constant trend was observed.

The average of the Debt to Total Capital for the period is 0.56 and Standard Deviation

0.08. The highest Debt to Total Capital Ratio record for the year 2002 at 0.91.the

coefficient of variation is indicates at 15.71 percent.

211

Table No. 4.146 ABU DHABI COMMERCIAL BANK [ADCB] UAE


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.39 100.00 100.00 0.04

0.0016

2002 0.29 74.35 74.36

-0.06 0.0036

2003 0.44 112.82 151.72 0.09

0.0081

2004 0.28 71.79 63.64 -0.07

0.0049

2005 0.27 69.23 96.43 -0.08

0.0064

2006 0.41 105.12 151.85 0.06

0.0036

2007 0.38 97.43 92.68 0.03

0.0009


Mean: - 0.35

S.D:- 0.0041

C.V:- 1.19 The above Table No. 4.146 furnished the Debt to Total Capital ratio pertaining to

“Abu Dhabi Commercial Bank UAE” for the period under study. The average for the

period is shown at 0.35 and Standard Deviation at 0.0041.The Debt to Total Capital

Ratio ranged in between 0.44 to 0.27. The highest Debt to Total Capital Ratio

recorded for the year 2003 and the lowest for the year 2005. The Coefficient of

variation is calculated at 1.19 percent.

212

Table No. 4.147 EMIRATES BANK [EBI] UAE


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.68 100.00 100.00 0.01

0.00020408

2002 0.97 142.65 142.65

0.30 0.0925898

2003 0.61 89.71 62.89 -0.06

0.0310408

2004 0.59 86.76 96.72 -0.08

0.00573265

2005 0.62 91.18 105.08 -0.05

0.00020898

2006 0.44 64.71 70.97 -0.23

0.05094694

2007 0.75 110.29 170.45 0.08

0.00710408


Mean: - 0.67

S.D:- 0.02

C.V:- 3.47

The Debt to Total Capital Ratio of “Emirates Bank UAE” for the period 2001 -2007 is

presents in above Table No.4.147. The average Debt to Total Capital at 0.67. The

standard deviation is compute at 0.02 and coefficient of variation is calculated at 3.47

percent.

213

Table No. 4.148

NATIONAL BANK OF ABU DHABI [NBAD] UAE LONG TERM DEBT TO TOTAL CAPITALISATION

DEBT TO TOTAL CAPITAL

YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.42 100.00 100.00 -0.15

0.02380408

2002 0.55 130.95 130.95

-0.02 0.0005898

2003 0.25 59.52 45.45 -0.32

0.10516122

2004 0.98 233.33 392.00 0.41

0.16460408

2005 0.75 178.57 76.53 0.18

0.03087551

2006 0.36 85.71 48.00 -0.21

0.04591837

2007 0.71 169.05 197.22 0.14

0.01841837


Mean: - 0.57

S.D:- 0.06

C.V:- 9.69

The above Table No. 4.148 shows the yearly Debt to Total Capital of “National Bank

of Abu Dhabi” for period 2001 -2007 indicate the Debt to Total Capital Ratio has

moved in the range of 0.25 and 0.98. The ratio has upwards trend during the year

2006 and 2007. The Standard Deviation indicates at 0.06 and average ratio for the

period under the study is compute at 0.57, Coefficient of Variation is calculates at

9.69 percent.

214

Table No. 4.149

DEBT TO TOTAL CAPITAL LONG TERM DEBT TO TOTAL CAPITALISATION



Sr.No NAME OF BANKS MEANS

[SD/M*100] CV

1

INDIA

ICICI BANK

0.67 3.88

2 CANARA BANK

0.56 7.17


0.51 9.80

4

UAE


0.56 15.71


0.35 1.19


0.67 3.47


0.57 9.69


(BANKING SECTOR) The summary pertaining to Debt to Total Capital Ratio for banking sector for India

and UAE is given in Table No. 4.149. Mean of Debt to Total Capital Ratio, both

ICICI Bank in India and Emirates Bank [EBI] in UAE was at 0.67. However,

Coefficient of Variation of Arab Bank UAE is higher as compared to other banks in

the above table. Highest variation indicates fluctuation and lowest indicates stability

in Ratio. A low Debt to Total Capital Ratio represents security to creditors in

extending credit and a very high ratio represents a greater risk to creditors and to

shareholders under adverse conditions.

215

Table No. 4.150

AMBUJA CEMENTS LTD. INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.45 100.00 100.00 -0.10

0.00943673

2002 0.49 108.89 108.89

-0.06 0.00326531

2003 0.52 115.56 106.12 -0.03

0.00073673

2004 0.68 151.11 130.77 0.13

0.01765102

2005 0.62 137.78 91.18 0.07

0.00530816

2006 0.59 131.11 95.16 0.04

0.00183673

2007 0.48 106.67 81.36 -0.07

0.00450816


Mean: - 0.55

S.D:- 0.006

C.V:- 1.09 The Debt to Total Capital Ratio “Ambuja Cement Ltd India” is presents in Table

No.4.150. The average Debt to Total Capital for the period is 0.55 and Standard

Deviation is 0.006. The Coefficient of variation is determines at 1.09 percent. The

highest Debt to Total Capital Ratio observed in 2004 at 0.68 and fixed base method is

more than 100 in 2004.

216

Table No. 4.151

DECCAN CEMENTS LTD. INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.66 100.00 100.00 0.03

0.0009

2002 0.69 104.55 104.55

0.06 0.0036

2003 0.65 98.48 94.20 0.02

0.004

2004 0.67 101.52 103.08 0.04

0.0016

2005 0.46 69.70 68.66 -0.17

0.0289

2006 0.84 127.27 182.61 0.21

0.0441

2007 0.44 66.67 52.38 -0.19

0.0361


Mean: - 0.63

S.D:- 0.02

C.V:- 3.17 The Table No. 4.151 above depicts clearly the Debt to Total Capital Ratio “Deccan

Cement Ltd. India” for the period 2001 - 2007. From 2001 onwards more or less

constant rend is observe. The highest Debt to Total Capital Ratio recorded for the year

2006 at 0.84. The average for the period is calculated at 0.63. And Standard Deviation

at 0.02, the coefficient of variation computed at 3.17 percent.

217

Table No. 4.152

J K LAKSHMI CEMENTS LTD. INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.55 100.00 100.00 -0.13

0.01580408

2002 0.64 116.36 116.36

-0.04 0.00127551

2003 0.98 178.18 153.13 0.30

0.0925898

2004 0.58 105.45 59.18 -0.10

0.00916122

2005 0.98 178.18 168.97 0.30

0.0925898

2006 0.55 100.00 56.12 -0.13

0.01580408

2007 0.45 81.82 81.82 -0.23

0.05094694


Mean: - 0.68

S.D:- 0.04

C.V:- 5.88

Table No.4.152 states the year wise Debt to Total Capital of “JK Lakshmi Cement Ltd

India” for the period under study 2001 to 2007. The average ratio for the period is at

0.68 and standard deviation is at 0.04, Coefficient of variation at 5.88, on the five

occasion deviation from mean x was observed negative.

218

Table No. 4.153

GULF CEMENT [GCEM] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.67 100.00 100.00 0.07

0.0049

2002 0.54 80.60 80.60

-0.06 0.0036

2003 0.56 83.58 103.70 -0.04

0.0016

2004 0.58 86.57 103.57 -0.02

0.0004

2005 0.62 92.54 106.90 0.02

0.0004

2006 0.59 88.06 95.16 -0.01

0.0001

2007 0.64 95.52 108.47 0.04

0.0016


Mean: - 0.60

S.D:- 0.001

C.V:- 0.16 The Debt to Total Capital Ratio of “Gulf Cement UAE” for the period 2001 – 2007 is

presents in Table No.4.153. In the year 2001 the Debt to Total Capital Ratio highest at

0.67.The average Debt to Total Capital for the period recorded at 0.60, and Standard

Deviation 0.001 and Coefficient of Variation is to be determines at 0.16.

219

Table No. 4.154

NATIONAL CEMENT [NCC] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.75 100.00 100.00 0.28

0.08000816

2002 0.54 72.00 72.00

0.07 0.00530816

2003 0.44 58.67 81.48 -0.03

0.00073673

2004 0.36 48.00 81.82 -0.11

0.01147959

2005 0.42 56.00 116.67 -0.05

0.00222245

2006 0.31 41.33 73.81 -0.16

0.02469388

2007 0.45 60.00 145.16 -0.02

0.00029388


Mean: - 0.47

S.D:- 0.02

C.V:- 4.25 Table No.4.154 gives the Debt to Total Capital Ratio of “National Cement UAE

Company” for the period 2001 - 2007 in above table. The highest Debt to Total

Capital Ratio at 0.75 is observed in the year 2001. The Debt to Total Capital Ratio is

more or less to the industry average of 0.47 and Standard Deviation at 0.02, and the

Coefficient of Variation is indicated as at 4.25

220

Table No. 4.155

SHARJAH CEMENT [SCIDC] UAE LONG TERM DEBT TO TOTAL CAPITALISATION

DEBT TO TOTAL CAPITA L

YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.39 100.00 100.00 -0.24

0.05897959

2002 0.53 135.90 135.90

-0.10 0.01057959

2003 0.61 156.41 115.09 -0.02

0.00052245

2004 0.72 184.62 118.03 0.99

0.00759388

2005 0.93 238.46 129.17 0.30

0.08829388

2006 0.43 110.26 46.24 -0.20

0.04115102

2007 0.82 210.26 190.70 0.19

0.03502245


Mean: - 0.63

S.D:- 0.03

C.V:- 4.76

The Debt to Total Capital for ‘Sharjah Cement company Ltd’ UAE for the period

2001 – 2007 are given in Table No. 4.155. The Debt to Total Capital Ratio moved in

between 0.39 to 0.93. In the year 2005 the Debt to Total Capital Ratio is observed

highest. The average Debt to Total Capital is recorded 0.63 and Standard Deviation at

0.03 And the Coefficient of Variation at 4.76.

221

Table No. 4.156

DEBT TO TOTAL CAPITAL MEANS AND COEFFICIENT OF VARIATION



Sr. No CEMENT


CV

1

INDIA

AMBUJA CEMENT LTD.

0.55

1.09


0.63

3.17


0.68

5.88

4

UAE

GULF CEMENT [GCEM]

0.60

0.16


0.47

4.25


0.63

4.76


CONCLUSION (CEMENT SECTOR)

The Debt to Total Capital Ratio of Cement Companies for India and UAE is presents

in Table No. 4.156. Out of six companies of India and UAE, one JK Lakshmi Cement

company of India having higher Means and higher coefficient of variation is observed

as compare to UAE Cement Companies. Highest variation indicated fluctuation.

Hence, the performance of India Cement Companies is better compare to UAE for the

period of 2001-2007.

222

Table No. 4.157

NATIONAL INSUREANCE INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.46 100.00 100.00 -0.29

0.08163265

2002 0.85 184.78 184.78

0.10 0.01087551

2003 0.64 139.13 75.29 -0.11

0.01117551

2004 0.98 213.04 153.13 0.23

0.0548898

2005 0.79 171.74 80.61 0.04

0.00196122

2006 0.76 165.22 96.20 0.01

0.00020408

2007 0.75 160.87 97.37 -0.01

3.265305


Mean: - 0.75

S.D:- 0.02

C.V:- 2.66 Table No.4.157 above reveals the Debt to Total Capital Ratio of “National Insurance

company” India is presents in table 4.157. The Debt to Total Capital Ratio is highest

at 0.98 in 2004 and lowest at 0.46 in 2001. From the year 2002 to 2004 upward trend

is observed. The average for the period was recorded at 0.75 and Standard Deviation

at 0.02 and Coefficient of Variation is calculated at 2.66 percent.

223

Table No. 4.158

ORIENTAL INSUREANCE INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.45 100.00 100.00 -0.30

0.0925898

2002 0.69 153.33 153.33

-0.06 0.00413265

2003 0.74 164.44 107.25 -0.01

0.00020408

2004 0.89 197.78 120.27 0.14

0.01841837

2005 0.86 191.11 96.63 0.11

0.01117551

2006 0.67 148.89 77.91 -0.08

0.00710408

2007 0.98 217.78 146.27 0.23

0.05094694


Mean: - 0.75

S.D:- 0.03

C.V:- 4.00 The year – wise Debt to Total Capital Ratio of “Oriental Insurance Company” India

are presented Table No. 4.158 above. The Debt to Total Capital Ratio moved in

between 0.45 and 0.98 increasing trends observed. The standard deviation is indicated

at 0.03 and average Debt to Total Capital for the period under study was computed at

0.75 Coefficient of Variation is calculated at 4.00 percent.

224

Table No. 4.159

UNITED INDIA INSURANCE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL % CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.16 100.00 100.00 -0.84

0.7056

2002 0.49 306.25 306.25

-0.51 0.2601

2003 0.69 431.25 1.41 -0.31

0.0961

2004 0.98 612.50 1.42 -0.02

0.0004

2005 1.56 975.00 1.59 0.56

0.3136

2006 1.35 843.75 0.87 0.35

0.1225

2007 1.82 1137.50 1.35 0.82

0.6724


Mean: - 1.00

S.D:- 0.31

C.V:- 31.00 Table No.4.159 highlight the Debt to Total Capital Ratio of “United India Insurance”

for the period under study 2001 to 2007. The average Debt to Total Capital for the

period is recorded at 1.00; And Standard Deviation at 0.31 and Coefficient of

Variation at 31.00 percent. From 2004 onwards increasing trend was observed.

225

Table No. 4.160

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.63 100.00 100.00 -0.08

0.0064

2002 0.56 88.89 88.89

-0.15 0.0225

2003 0.45 71.43 80.36 -0.26

0.0676

2004 0.69 109.52 153.33 -0.02

0.0004

2005 0.78 123.81 113.04 0.07

0.0049

2006 0.98 155.56 125.64 0.27

0.0729

2007 0.88 139.68 89.80 0.17

0.0289


Mean: - 0.71

S.D:- 0.03

C.V:- 4.22 Table No.4.160 depicts the Debt to Total Capital Ratio for period 2001 – 2007 of

“Abu Dhabi National Insurance UAE” The highest Debt to Total Capital Ratio is

observed in the year 2006 at 0.98, On the 04 occasion that is 2001, 2002, 2003 and

2004 deviation of mean was negative. The average of Debt to Total Capital at 0.71

and Standard Deviation at 0.03 and Coefficient of Variation is computed at 4.22

Percent.

226

Table No. 4.161

ALLIANCE INSURANCE [ALLIANCE] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.68 100.00 100.00 0.03

0.00066122

2002 0.45 66.18 66.18

-0.20 0.04173265

2003 0.11 16.18 24.44 -0.54

0.29624694

2004 0.88 129.41 800.00 0.23

0.05094694

2005 0.77 113.24 87.50 0.12

0.0133898

2006 0.98 144.12 127.27 0.33

0.1060898

2007 0.71 104.41 72.45 0.06

0.00310408


Mean: - 0.65

S.D:- 0.07

C.V:- 10.76 Table No.4.161 reveals the yearly Debt to Total Capital Ratio of “Alliance Insurance

UAE” for the period 2001 - 2007. The lowest Debt to Total Capital Ratio in the year

2003 at 0.11and the highest is in the year 2006 at 0.98. The Standard Deviation at

0.07 and the average Debt to Total Capital Ratio for the period under study was

computed at 0.65 and Coefficient of Variation is calculated at 10.76 percent.

227

Table No. 4.162

DUBAI NATIONAL INSURANCE [DNIR] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.65 100.00 100.00 0.17

0.02938776

2002 0.36 55.38 55.38

-0.12 0.01405918

2003 0.39 60.00 108.33 -0.09

0.0078449

2004 0.25 38.46 64.10 -0.23

0.0522449

2005 0.36 55.38 144.00 -0.12

0.01405918

2006 0.69 106.15 191.67 0.21

0.04470204

2007 0.65 100.00 94.20 0.17

0.02938776


Mean: - 0.48

S.D:- 0.03

C.V:- 6.25 The above Table No. 4.162 indicates the Debt to Total Capital Ratio of “Dubai

National Insurance” UAE for the period of study. The Debt to Total Capital Ratio

range is in between 0.36 to 69. It shows the increasing trend. The average Debt to

Total Capital is 0.48. The Standard Deviation is computed at 0.03 and Coefficient of

Variation is calculated at 6.25 percent.

228

Table No. 4.163

UNITED INSURANCE COMPANY [UIC] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL

CAPITAL

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.39 100.00 100.00 -0.27

0.0729

2002 0.45 115.38 115.38

-0.21 0.0441

2003 0.51 130.77 113.33 -0.15

0.0225

2004 0.89 228.21 174.51 0.23

0.0529

2005 0.96 246.15 107.87 0.30

0.09

2006 0.78 200.00 81.25 0.12

0.0144

2007 0.64 164.10 82.05 -0.02

0.0004


Mean: - 0.66

S.D:- 0.04

C.V:- 6.06 Table No. 4.163 states the Debt to Total Capital Ratio of “United Insurance UAE” for

the period 2001 – 2007. The average of Debt to Total Capital is 0.66 the highest Debt

to Total Capital Ratio is observed in the year 2005 at 0.96. It is observed the Debt to

Total Capital Ratio is in increasing trend. As per the chain base method the highest

Debt to Total Capital Ratio is in the year 2003 at 130.93. Standard Deviation of 0.04

And Coefficient of Variation is calculated at 6.06 percent.

229

TABLE NO. 4.164



[PERIOD OF STUDY 2001 – 2007]

Sr. No INSURANCE COMPANIES MEANS

[SD/M*100] CV

1

INDIA

NATIONAL INSURANCE

0.75 2.66


0.75 4.00


1.00 31.00

4

UAE


0.71 4.22


0.65 10.76


0.48 6.25


0.66 6.06

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (INSURANCE SECTOR) Table No.4.164 summarises the Debt to Total Capital Ratio for Insurance companies

from India and UAE. The highest Means and coefficient of variation of Debt to total

capital Ratio is shown by United Insurance of India at 1.00. However, the variation

too is highest for the Insurance Company indicating the high fluctuations in the Debt

to Total Capital Ratio over the period of study. And the lowest Means was observed at

0.48 for Dubai National Insurance. High fluctuation are observed for united insurance

India

230

Table No. 4.165

CADILA HEALTHCARE PHARAMACEUTICAL COMPANY OF INDIA


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.56 100.00 100.00 -0.10

0.0971633

2002 0.36 64.29 64.29

-0.30 0.0891449

2003 0.69 123.21 191.67 0.03

0.00098776

2004 0.65 116.07 94.20 -0.01

7.346905

2005 0.54 96.43 83.08 -0.12

0.01405918

2006 0.98 175.00 181.48 0.32

0.10331633

2007 0.83 148.21 84.69 0.17

0.02938776


Mean: - 0.66

S.D:- 0.04

C.V:- 6.06 Table No. 4.165 shows the year – wise Debt to Total Capital Ratio of “Cadila Health

Care” for the period of study. In the year 2006, the Debt to Total Capital Ratio was

observed highest at 0.98. The Average Debt to Total Capital for period at 0.66 and

Standard Deviation 0.04 and Co-efficient of Variation at 6.06.

231

Table No. 4.166

CIPLA LTD PHARAMACEUTICAL COMPANY OF INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.65 100.00 100.00 0.02

0.0004

2002 0.48 73.85 73.85

-0.15 0.0225

2003 0.39 60.00 81.25 -0.24

0.0576

2004 0.74 113.85 189.74 0.11

0.0121

2005 0.61 93.85 82.43 -0.02

0.0004

2006 0.59 90.77 96.72 -0.04

0.0016

2007 0.95 146.15 161.02 0.32

0.1024


Mean: - 0.63

S.D:- 0.03

C.V:- 4.76 The year – wise details of Debt to Total Capital Ratio for the period 2001 – 2007

“Cipla Pharma Co. Ltd India” are furnish in above Table No. 4.166 The Debt to Total

Capital Ratio is fluctuated over the year. The higher Debt to Total Capital Ratio was

observed at 0.95 in the year 2007. Deviation from mean x is negative for four year.

The average Debt to Total Capital for the period at 0.63 and Standard Deviation 0.03,

Coefficient of Variation is determines at 4.76 percent.

232

Table No. 4.167

SUN PHARMA. PHARAMACEUTICAL COMPANY OF INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.65 100.00 100.00 0.17

0.02793673

2002 0.46 70.77 70.77

-0.02 0.00052245

2003 0.89 136.92 193.48 0.41

016576531

2004 0.49 75.38 55.06 0.01

5.10205

2005 0.19 29.23 38.78 -0.29

0.08576531

2006 0.15 23.08 78.95 -0.33

0.11079388

2007 0.55 84.62 366.67 0.07

0.00450816


Mean: - 0.48

S.D:- 0.06

C.V:- 12.50 Table No4.167 presents the Debt to Total Capital Ratio of “Sun Pharma” India for the

seven year that is 2001 to 2007. The average for the period Debt to Total Capital

0.48 and the standard deviation is 0.06. The highest Debt to Total Capital Ratio is

observed at 0.89 in 2003 and the lowest in 2006 at 0.15 and the coefficient of

variation is computed at 12.50.

233

Table No. 4.168

GULF MEDICAL PROJECTS [GMPC] UAES LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.25 100.00 100.00 -0.42

0.17281837

2002 0.63 252.00 252.00

-0.04 0.00127551

2003 0.74 296.00 117.46 0.07

0.00551837

2004 0.69 276.00 93.24 0.02

0.0005898

2005 0.74 296.00 107.25 0.07

0.00551837

2006 0.96 384.00 129.73 0.29

0.08660408

2007 0.65 260.00 67.71 -0.02

0.00024694


Mean: - 0.67

S.D:- 0.04

C.V:- 5.97 Table No. 4.168 highlight the Debt to Total Capital Ratio figures for year 2001 –

2007 of “Gulf Medical” UAE. In the year 2006, the Debt to Total Capital Ratio was

highest at 0.96. The Average of Debt to Total Capital for the period under study S

recorded at 0.67 and Standard Deviation at 0.04 and Coefficients of Variation is


234

Table No. 4.169 GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.75 100.00 100.00 -0.07

0.005308016

2002 0.96 128.00 128.00

0.14 0.01880816

2003 0.81 108.00 84.38 -0.01

0.00016531

2004 0.67 89.33 82.71 -0.15

0.02336531

2005 0.88 117.33 131.34 0.06

0.00326531

2006 0.73 97.33 82.95 -0.09

0.00862245

2007 0.96 128.00 131.51 0.14

0.01880816


Mean: - 0.82

S.D:- 0.01

C.V:- 1.21 The above Table No 4.169 shows the Debt to Total Capital Ratio of “Gulf

Pharmaceutical” UAE for the period 2001 – 2007. The average Debt to Total Capital

for the period at 0.82 with Standard Deviation at 0.01 and Coefficient of Variation is

computed at 1.21 percent. The Debt to Total Capital Ratio is highest in the year 2002

and 2007 at 0.96 so there is a greater risk to creditor and also to shareholder under

adverse business conditions.

235

Table No. 4.170 DEBT TO TOTAL CAPITAL

MEANS AND COEFFICIENT OF VARIATION PHARAMACEUTICAL SECTOR ANALYSIS


Sr. No PHARMACEUTICAL


CV

1

INDIA

CADILA HEALTH CARE

0.66 6.06

2 CIPLA LTD.

0.63 4.76

3 SUN PHARMA. 0.48 12.50

4

UAE


0.67 5.97


0.82 1.21

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (PHARMACEUTICAL SECTOR) Table No. 4.170 indicates the average Debt to Total Capital Ratio for Pharmaceutical

companies from India and UAE. The higher Debt to total capital Ratio is shown by

UAE Pharma Companies. And the lower Debt to Total Capital Ratio is observed in

Indian Pharma Companies. Out of Five Pharma companies of India and UAE, Two

companies of UAE Pharma have been shown higher ratio. This suggests these UAE

companies are taking greater risk for getting higher return. The highest variability

found in Sun Pharma India. Investment opportunities are present in Indian and UAE

Pharma Sectors.

236

Table No. 4.171 TATA COMMUNICATION INDIA


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.25 100.00 100.00 -0.27

0.07060408

2002 0.63 252.00 252.00

0.11 0.01306122

2003 0.55 220.00 87.30 0.03

0.00117551

2004 0.41 164.00 74.55 -0.11

0.01117551

2005 0.36 144.00 87.80 -0.16

0.02424694

2006 0.45 180.00 125.00 -0.07

0.00431837

2007 0.96 384.00 213.33 0.44

0.1973898


Mean: - 0.52

S.D:- 0.05

C.V:- 9.61 “Tata Communication company” India the Debt to Total Capital Ratio for the period

under study is shown in above Table No. 4.171. In the year 2007 the Debt to Total

Capital Ratio is highest at 0.96. The average Debt to Total Capital Ratio for the

period under study is recorded at 1.51 and Standard Deviation at 0.05. Coefficient of

Variation is calculated at 9.61. The Debt to Total Capital Ratio is observed upwards

trends in last two year.

237

Table No. 4.172

BHARTI AIRTEL LTD. INDIA LONG TERM DEBT TO TOTAL CAPITALISATION

DEBT TO TOTAL CAPITA L

YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ---- ----- ------ -----

------

2002 0.32 100.00 100.00

-0.10 0.01

2003 0.26 81.25 81.25 -0.16

0.0256

2004 0.39 121.88 150.00 -0.03

0.009

2005 0.17 53.13 43.59 -0.25

0.0625

2006 0.56 175.00 329.41 0.14

0.0196

2007 0.84 262.50 150.00 0.42

0.1764

Source: - Calculations made by the Researcher on the basis of the stock Exchange Data of both Countries i.e. India and United Arab Emirates.

Mean: - 0.42

S.D:- 0.05

C.V:- 11.90. Table No.4.172 depicts the Debt to Total Capital Ratio values in year 2002 – 2007 for

‘Bharti Airtel Ltd’ India. The Debt to Total Capital Ratio moved in between 0.17 and

0.84. From 2006 onwards increasing trend is observed. The Data for the year 2001 is

not available. The average Debt to Total Capital Ratio for the period 0.05 and

Standard Deviation at 0.05 and Coefficient of Variation at 11.90

238

Table No. 4.173

MTNL TELECOMMUNICATION COMPANY OF INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.57 100.00 100.00 -0.11

0.01117551

2002 0.85 149.12 149.12

0.17 0.03037551

2003 0.75 131.58 88.24 0.07

0.00551837

2004 0.66 115.79 88.00 -0.02

0.00024694

2005 0.89 156.14 134.85 0.21

0.04591837

2006 0.47 82.46 52.81 -0.21

004231837

2007 0.54 94.74 114.89 -0.14

0.01841837


Mean: - 0.68

S.D:- 0.02

C.V:- 2.94 The above Table No. 4.173 gives the year –wise Debt to Total Capital Ratio for

“MTNL India” for the period 2001 - 2007. The Debt to Total Capital Ratio moved in

between 0.54 and 0.89, the Debt to Total Capital Ratio is fluctuations during the

period of study; the average at 0.68 and Standard Deviation 0.02. And Coefficient of

variation is at 2.94 percent.

239

Table No. 4.174

ETISALAT TELCOM UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.56 100.00 100.00 -0.07

0.00551837

2002 1.26 225.00 225.00

0.63 0.39151837

2003 0.39 69.64 30.95 -0.24

0.05967551

2004 0.74 132.14 189.74 0.11

0.01117551

2005 0.66 117.86 89.66 -0.03

0.00066122

2006 0.35 62.50 53.03 -0.28

0.08081837

2007 0.48 85.71 137.14 -0.15

0.02380408


Mean: - 0.63

S.D:- 0.08

C.V:- 12.69 The above given Table No. 4.174 shows the Debt to Total Capital Ratio figure

pertaining to “Etisalat Telecom” UAE company. From 2001 to 2007 onward more or

less constant trend was observed. The average Debt to Total Capital Ratio for the

period is calculated at 0.63 and Standard Deviation at 0.08. The highest ratio is

recorded in the year 2002 at 1.26. And the Coefficient of Variation is computed as at

12.69 per cent.

240

Table No. 4.175


TELECOMMUNICATION SECTOR ANALYSIS [INDIA & UAE]


Sr. No TELECOM


CV

1

INDIA

TATA COMMUNICATION

0.52 9.61

2 BHARTI AIRTEL LTD

0.42 11.90

3 MTNL. INDIA 0.68 2.94


0.63 12.69


CONCLUSION (TELECOMMUNICATION SECTOR) The above Table No. 4.175 provides Summaries for Telecom Companies of India and

UAE Means and coefficient of variation of Debt To total capital Ratio As compare to

India and UAE. Telecom companies the higher debt to total capital ratio 0.68 MTNL

India was observed. These suggest these telecom companies are taking greater risk for

getting higher return. Out of four Telecom companies two of India and UAE have

shown higher coefficient of variation consequently.

241

Table No. 4.176

STEEL AUTHORITY OF INDIA LTD LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.55 100.00 100.00 -0.10

0.01

2002 0.64 112.73 112.73

-0.03 0.0009

2003 0.63 125.45 111.29 0.04

0.0016

2004 0.67 121.81 97.10 0.02

0.004

2005 0.59 107.27 88.06 -0.06

0.0036

2006 0.64 116.36 108.47 -0.01

0.0001

2007 0.77 140.00 120.31 0.12

0.0144


Mean: - 0.65

S.D:- 0.01

C.V:- 1.53 The detail of the Debt to Total Capital Ratio for “Steel Authority of India Ltd” is

shown in above Tables No. 4.176. The Ratio is moved in between 0.55 and 0.77

during the pried 2001-2007. The average Debt to Total Capital Ratio for the period is

observed at 0.65 and Standard Deviation at 0.01 and Coefficient of Variation at 1.53.

242

Table No. 4.177

STEEL COMPANY GUJARAT LTD. INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.78 100.00 100.00 -0.11

0.01241633

2002 0.63 80.77 80.77

-0.26 0.683449

2003 0.74 94.87 117.46 -0.15

0.02293061

2004 1.25 160.26 168.92 0.36

0.12857347

2005 1.53 196.15 122.40 0.64

0.40777347

2006 0.55 70.51 35.95 -0.34

0.11657347

2007 0.76 97.44 138.18 -0.13

0.01727347


Mean: - 0.89

S.D:- 0.11

C.V:- 12.40 The above Table No 4.177 shows Debt to Total Capital Ratio figure pertaining to

“Steel Company Gujarat Ltd” for the year 2001 to 2007. The average Debt to Total

Capital for the period at 0.89, Standard Deviation at 0.11 Coefficient of Variation is

determines at 12.40 percent.

243

Table No. 4.178

BOULDER STEEL [BGD] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.69 100.00 100.00 -0.11

0.0121

2002 0.78 113.04 113.04

-0.02 0.0004

2003 0.64 92.75 82.05 -0.16

0.0256

2004 0.72 104.35 112.50 -0.08

0.0064

2005 0.88 127.54 122.22 0.08

0.0064

2006 0.96 139.13 109.09 0.16

0.0256

2007 0.93 134.78 96.88 0.13

0.0169


Mean: - 0.80

S.D:- 0.01

C.V:- 1.25 “Boulder Steel Company of UAE” figure of Debt to Total Capital Ratio are shown in

above Table No 4.178. The Average Debt to Total Capital Ratio at 0.80 for the period

of study 2001 to 2007 and Standard Deviation at 0.01, The Debt to Capital Ratio is

moved in between 0.64 in 2003 and 0.96 in the year 2006 and Coefficient of Variation

is indicated at 1.25 percent.

244

Table No. 4.179

JAZEERA STEEL [ATMI] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.36 100.00 100.00 -0.23

0.0529

2002 0.45 125.00 125.00

-0.14 0.0196

2003 0.96 266.67 213.33 0.37

0.1369

2004 0.33 91.67 34.38 -0.26

0.0676

2005 0.75 208.33 227.27 0.16

0.0256

2006 0.43 119.44 57.33 -0.16

0.0256

2007 0.87 241.67 202.33 0.28

0.0784


Mean: - 0.59

S.D:- 0.06

C.V:- 10.16 The above Table No 4.179 shows that the Debt to Total Capital Ratio figures

pertaining to “Jazeera Steel Company of UAE” The average Debt to Total Capital for

the period 2001 to 2007 is 0.59, Standard Deviation at 0.06 and Coefficient of

Variation is indicated at 10.16 percent.

245

Table No. 4.180


IRON AND STEEL SECTOR ANALYSIS [INDIA & UAE]


Sr. No


MEANS [SD/M*100]

CV

1

INDIA


0.65 1.53


0.89 12.40

3

UAE BOULDER STEEL 0.80 1.25


0.59 10.16

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IRON AND STEEL SECTOR) The above Table No 4.180 summaries India and UAE steel companies Means and

Variation Debt to Total Capital Ratio. The highest means was observed for Steel

Company Gujarat at 0.89 for the period of study 2001 to 2007. However, the variation

is highest for the Iron and Steel Company; it indicates the high fluctuations in the

Ratio over the period of study. The lower ratio is observed for steel Authority of

India and Jazeera Steel for UAE. Out of Four steel companies two companies have

shown higher ratio. One for Indian Steel Company and one for a UAE Steel

Company.

246

Table No. 4.181

H C L TECHNOLOGYIES LTD. IT COMPANY OF INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.85 100.00 100.00 0.10

0.01

2002 0.59 69.41 69.41

-0.16 0.269898

2003 0.69 81.17 116.95 -0.06

0.0036

2004 0.72 84.71 104.35 -0.03

0.0009

2005 0.88 103.53 122.22 0.13

0.0169

2006 0.99 116.47 112.50 0.24

0.0576

2007 0.56 65.88 56.57 -0.19

0.0361


Mean: - 0.75

S.D:- 0.02

C.V:- 2.66 The details of Debt to Total Capital Ratio “HCL Technologies Ltd” are furnished in

above Table No 4.181 for the period 2001 - 2007. The average Debt to Total Capital

Ratio for the study 2001 to 2007 was 0.75, Standard Deviation at 0.02.and the

coefficient of variation at 2.66 percent.

247

Table No. 4.182

INFOSYS TECH LTD. IT COMPANY OF INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.23 100.00 100.00 -0.18

0.0324

2002 0.65 282.61 282.61

0.24 0.0576

2003 0.29 126.09 44.62 -0.12

0.0144

2004 0.63 273.91 217.24 0.22

0.0484

2005 0.48 208.70 76.19 0.07

0.0049

2006 0.39 169.57 81.25 -0.02

0.0004

2007 0.21 91.30 53.85 -0.20

0.04


Mean: - 0.41

S.D:- 0.03

C.V:- 7.31 The Debt to Total Capital Ratio presents in above Table No 4.182 pertains to “Infosys

Tech Ltd” for the period under the study 2001 to 2007. The Average Debt to Total

Capital for the period is recorded 0.41 and Standard Deviation at 0.03 From the last

year the Debt to Total Capital Ratio is showing an downwards trend.

248

Table No. 4.183

WIPRO LTD. IT COMPANY OF INDIA LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.56 100.00 100.00 -0.02

0.0004

2002 0.43 76.79 76.79

-0.15 0.0225

2003 0.60 107.14 139.53 0.02

0.0004

2004 0.65 116.07 108.33 0.07

0.0049

2005 0.75 133.93 115.38 0.17

0.0289

2006 0.35 62.50 46.67 -0.23

0.0529

2007 0.74 132.14 211.43 0.16

0.0256


Mean: - 0.58

S.D:- 0.02

C.V:- 3.45 In Case of “Wipro Ltd India” the above Table No 4.183 reveals that the average Debt

to Total Capital for the period 2001 to 2007 is recorded at 0.58. The ratio is ranged in

between 0.35 and 0.75. The Standard Deviation is computed at 0.02 and Coefficient

of variation at 3.45.

249

Table No. 4.184



YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.18 100.00 100.00 -0.08

0.064

2002 0.19 105.56 105.56

-0.07 0.0049

2003 0.54 300.00 284.21 0.28

0.0784

2004 0.16 88.89 29.63 -0.10

0.01028776

2005 0.20 111.11 125.00 -0.06

0.0036

2006 0.24 133.33 120.00 -0.02

0.000045918

2007 0.32 177.78 133.33 0.06

0.0036


Mean: - 0.26

S.D:- 0.02

C.V:- 7.69 The above Table No 4.184 shows the Debt to Total Capital Ratio figures pertaining to

“Abu Dhabi National Company for Building Material” From 2001 onward more or

less constant trend is observed. The average for the period of Debt to Total Capital

Ratio is calculated at 0.26, Standard Deviation 0.02. The highest ratio is recorded for

the year 2003 at 0.54. The Coefficient of Variation is calculated at 7.69 percent.

250

Table No. 4.185

DUBAI DEVELOPMENT COMPANY [DDC] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.94 100.00 100.00 0.74

0.54

2002 0.93 98.94 98.94

0.19 0.04

2003 0.69 73.40 74.19 -0.05

0.0025

2004 0.96 102.13 139.13 0.22

0.05

2005 0.46 48.94 47.92 -0.28

0.08

2006 0.69 73.40 150.00 -0.05

0.00025

2007 0.49 52.13 71.01 -0.25

0.06


Mean: - 0.74

S.D:- 0.11

C.V:- 14.97 “Dubai Development Company “Debt to Total Capital Ratio is presents in above

Table No 4.185. The average Debt to Total Capital Ratio for the period 2001 to 2007

at 0.74, Standard Deviation at 0.11 and Coefficient of Variation at 14.97. On Four

occasions deviation of mean was observed negative.

251

Table No. 4.186

EMAAR PROPERTIES [EMAAR] UAE LONG TERM DEBT TO TOTAL CAPITALISATION


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.96 100.00 100.00 0.57

0.32327347

2002 0.54 56.25 56.25

0.15 0.02207347

2003 0.09 9.38 16.67 -0.30

0.09085918

2004 0.18 18.75 200.00 -0.21

0.04470204

2005 0.17 17.71 94.44 -0.22

0.04903061

2006 0.72 75.00 423.53 0.33

0.10795718

2007 0.08 8.33 1.11 -0.31

0.09698776


Mean: - 0.39

S.D:- 0.10

C.V:- 25.55 The Debt to Total Capital Ratio pertaining of “Emaar Properties” for the period under

study 2001 to 2007 is presented in above Table No 4.186. The average for the period

study is shows 0.39. The ratio is fluctuating from year to year. Standard Deviation at

0.10 and Coefficient of Variation at 25.55

252

Table No. 4.187

UNION PROPERTIES [UPP] CONSTRUCTION COMPANY OF UAE


YEARS DEBT TO TOTAL


% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 0.20 100.00 100.00 -0.07

0.00431837

2002 0.05 25.00 25.00

-0.22 0.04653265

2003 0.44 220.00 880.00 0.17

0.03037551

2004 0.54 271.00 122.73 0.27 0.07523265

2005 0.33 165.50 61.11 0.06

0.00413265

2006 0.14 70.00 42.42 -0.13

0.01580408

2007 0.16 80.00 114.29 -0.11

0.01117551


Mean: - 0.27

S.D:- 0.30

C.V:- 111.11 The above Table No 4.187 shows “Union Properties UAE companies” Debt to Total

Capital Ratio. The average for the period 2001 to 2007 is 0.27, Standard Deviation at

0.30, the Ratio is observed below 1 and The Coefficient of variation at 111.11

percent.

253

Table No. 4.188 DEBT TO TOTAL CAPITAL

MEANS AND COEFFICIENT OF VARIATION IT FOR INDIA & CONSTRUCTION FOR UAE


Sr. No NAME OF COMPANIES MEANS

[SD/M*100] CV

1

INDIA


0.75 2.66

2 INFOSYS TECH LTD.

0.41 7.31

3 WIPRO LTD. 0.58 3.45

4

UAE


0.26 7.69


0.74 14.97


0.39 25.55

7 UNION PROPERTIES [UPP] 0.27 111.11 Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION

(IT FOR INDIA AND CONSTRUCTION SECTOR FOR UAE) The above Table No 4.188 summaries IT companies India and construction

companies UAE Mean and Coefficient of Variation Debt to Total Capital Ratio. The

highest Debt to total capital ratio is shown in IT companies HCL Technologies at

0.75. As compare to remaining companies of IT and construction. Dubai

Development is having higher ratio as compare to other. Coefficient of Variation of

Union Properties UAE observed higher Variation and highest variation indicated

fluctuation. Hence, there is a need of investment because during the period of study

2001 to 2007 these two sectors is booming sector of both India and UAE.

254

Table No.4.189

ICICI BANK INDIA NET SALES TO TOTAL ASSETS

TOTAL ASSETS TURNOVER RATIO

YEARS Total Assets Turnover

Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.15 100.00 100.00 -0.06

0.00366

2002 1.82 84.65 84.65

-0.39 0.1521

2003 1.69 78.60 92.86 -0.52

0.2704

2004 1.43 66.51 84.62 -0.78

0.6084

2005 2.97 138.13 207.69 0.76

0.5776

2006 3.48 161.83 117.17 1.27

1.6129

2007 1.94 90.23 55.75 -0.27

0.0729


Mean: - 2.21

S.D:- 0.47

C.V:- 21.27 ICICI Bank details are presented in the above Table No 4.189. The average assets

turnover ratio for the period 2001 to 2007 is shown at 2.21. It is above average in

2005 to 2006 and below to the average from 2001 to 2005 the deviation from means is

shown negative except 2005 and 2006. And the coefficient of variation is calculated at

21.27 percent.

255

Table No.4.190

CANARA BANK INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.60 100.00 100.00 -0.25

0.0625

2002 0.74 46.25 46.25

-0.61 0.3721

2003 0.45 28.12 60.81 -0.90

0.81

2004 1.73 108.12 384.44 -0.38

0.1444

2005 1.98 123.75 114.45 0.63

0.3969

2006 1.56 97.50 78.79 0.21

0.0441

2007 1.43 89.37 91.67 0.08

0.0064


Mean: - 1.35

S.D:- 0.26

C.V:- 19.26 The Total Assets Turnover Ratio pertaining to Canara Bank India Ltd for the period

2001 to 2007 are presented in the above Table No 4.190. The average for the period

2001 to 2007 is shown at 1.35. From 2004 to 2007 it was above its average, but it is

below the average in 2002 and 2003. This indicates low turnover ratio due to decline

in sales. The year 2005 is considered as the best in which the ratio was 1.98. The

standard deviation at 0.26 and coefficient of variation is computed at 19.26 percent.

256

Table No.4.191

STATE BANK OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.28 100.00 100.00 -0.37

0.1369

2002 1.62 126.56 126.56

-0.03 0.0009

2003 1.53 119.53 94.44 -0.12

0.0144

2004 1.66 129.68 108.50 0.01

0.0001

2005 1.72 134.37 103.61 0.07

0.0049

2006 1.85 144.53 107.56 0.20

0.04

2007 1.95 152.34 105.41 0.30

0.09


Mean: - 1.65

S.D:- 0.04

C.V:- 2.42 State Bank of India is presented in the above Table No 4.191. The average Total

Assets Turnover Ratio for the period 2001 to 2007 was 1.65. It is above average from

2004 to 2007. The above Total Assets Turnover Ratio shows an increasing trend. On

three occasions the deviation of mean is shown as negative and coefficient of


257

Table No.4.192

ARAB BANK [ARABBANK] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.53 100.00 100.00 -0.49

0.2401

2002 1.67 109.15 109.15

-0.35 0.1225

2003 1.79 116.99 107.19 -0.23

0.0529

2004 1.81 118.30 101.12 -0.21

0.0441

2005 0.95 62.09 52.49 -1.07

1.1449

2006 2.48 162.09 261.05 0.46

0.2116

2007 3.92 256.20 158.06 1.90

3.61


Mean: - 2.02

S.D:- 0.77

C.V:- 38.12

The above Table No 4.192 presents the detail Arab Bank for the period 2001 to 2007.

The average of the Total Assets Turnover Ratio for the period was 2.02. There is

fluctuation in the ratio but the year 2007 is considered as the best in which the ratio

was 3.92. The Standard Deviation at 0.77, and the coefficient of variation is indicates

at 38.12 percent.

258

Table No.4.193

ABU DHABI COMMERCIAL BANK [ADCB] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.38 100.00 100.00 -0.13

0.0169

2002 1.68 121.74 121.74

0.17 0.0289

2003 1.62 117.39 96.43 0.11

0.0121

2004 1.91 138.40 117.90 0.40

0.16

2005 1.58 114.49 82.72 0.07

0.0049

2006 1.63 118.11 103.16 0.12

0.0144

2007 0.78 56.52 47.85 -0.73

0.5329


Mean: - 1.51

S.D:- 0.11

C.V:- 7.28 The Table No 4.193 above shows the details of Total Assets Turnover Ratio of Abu

Dhabi Commercial Bank. The Total Assets Turnover Ratio is quite high and above

the average during 2002 to 2006. But below the average in 2007.Standard Deviation

at 0.11, And Coefficient of variation is indicated at 7.28 percent.

259

Table No.4.194 EMIRATES BANK [EBI] UAE

NET SALES TO TOTAL ASSETS TOTAL ASSETS TURNOVER RATIO


Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.81 100.00 100.00 -0.39

0.1521

2002 1.67 92.27 92.27

-0.53 0.2809

2003 1.30 71.82 77.84 -0.90

0.81

2004 1.49 82.32 114.62 -0.71

0.5041

2005 2.64 145.86 177.18 0.44

0.1936

2006 2.87 158.56 108.71 0.67

0.4489

2007 3.67 202.76 127.87 1.47

2.1609


Mean: - 2.20

S.D:- 0.65

C.V:- 29.55 Table No.4.194 Total Assets Turnover Ratio of Emirates Bank UAE for the period

2001 – 2007. The Total Assets Turnover Ratio average is computed at 2.20. The

highest Total Assets Turnover Ratio is recorded in the year 2007 at 3.67.The Standard

Deviation computed at 0.65 and coefficient of variation is calculated at 29.55 percent.

Total Assets Turnover Ratio is recorded in increasing trends.

260

Table No.4.195

NATIONAL BANK OF ABU DHABI [NBAD] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.59 100.00 100.00 0.30

0.09

2002 3.67 141.70 141.70

1.38 1.9044

2003 0.35 13.51 9.54 -1.94

3.7636

2004 1.68 64.86 480.00 -0.61

0.3721

2005 0.58 22.39 34.52 -1.71

2.9241

2006 1.49 57.53 256.90 -0.80

0.64

2007 5.68 219.31 381.21 3.39

11.4921


Mean: - 2.29

S.D:- 3.02

C.V:- 131.88

Table No. 4.195 above depicts the yearly Total Assets Turnover Ratio for “National

Bank of Abu Dhabi” UAE. The average Total Assets Turnover Ratio for the period

was shown at 2.29. It was above the average from 2001, 2002 and 2007 and went

down rest of the years. From 2003 to 2006 the Deviation from mean is shown as

negative Coefficient of Variation is calculated at 131.88 percent.

261

Table No. 4.196

TOTAL ASSETS TURNOVER RATIO MEANS AND COEFFICIENT OF VARIATION



Sr. No

NAME OF BANKS MEANS [SD/M*100] CV

1

INDIA

ICICI BANK

2.21

21.27

2 CANARA BANK

1.35

19.26

3 STATE BANK OF INDIA 1.65

2.42

4

UAE

ARAB BANK [ARABBANK] 2.02

38.12


1.51

7.28


2.20

29.55


2.29

131.88


CONCLUSION

(BANKING SECTOR)

The Mean and Coefficient of Variation of Total Assets Turnover Ratio for bank of

India and UAE are furnished in Table No. 4.196. Out of seven banks of India and

UAE, Banks in UAE are observed to be maintaining sound financial health. However,

these banks have higher Coefficient of Variation. A very high CV is observed in case

of National Bank of Abu Dhabi UAE [NBAD] (131.88).

262

Table No.4.197

AMBUJA CEMENTS LTD. INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.41 100.00 100.00 -0.02

0.0004

2002 6.74 124.58 124.58

1.31 1.7161

2003 8.11 149.90 120.33 2.68

7.1824

2004 3.41 63.03 42.05 -2.02

4.0804

2005 4.28 79.11 125.51 -1.15

1.3225

2006 6.87 126.98 160.51 1.44

2.0736

2007 3.22 59.51 46.87 -2.21

4.8841


Mean: - 5.43

S.D:- 3.04

C.V:- 55.99

The Table No. 4.197 above shows the Total Assets Turnover Ratio of Ambuja

Cement Ltd. The average Total Assets Turnover Ratio for the period under study was

5.43. The Total Assets Turnover Ratio lowest in 2007 at 3.22 and it is highest in 2003

at 8.11. The Standard Deviation 3.04, Coefficient of variation was 55.99 percent.

263

Table No.4.198

DECCAN CEMENTS LTD. INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.65 100.00 100.00 -2.40

5.76

2002 3.55 215.15 215.15

-0.50 0.25

2003 4.85 293.93 136.62 0.80

0.64

2004 8.89 538.78 183.30 4.84

23.426

2005 5.47 331.51 61.53 1.42

2.0164

2006 0.28 16.96 5.12 -3.77

14.213

2007 3.68 223.03 1314.29 -0.37

0.1369


Mean: - 4.05

S.D:- 6.63 C.V:- 163.70

The Total Assets Turnover Ratio for Deccan Cement Ltd. India details are presented

in the Table No. 4.198. The average of Total Assets Turnover Ratio 4.05, it is at its all

time high in the year 200 at 8.89. Out of Seven year under study in Four years the

deviation from mean is shown as negative. The low Total Assets Turnover Ratio

recorded for the year 2006 at 0.28. This is due to decline in sales. Standard Deviation

6.63.And coefficient of variation is computed at 163.70 percent.

264

Table No.4.199 J K LAKSHMI CEMENTS LTD. INDIA



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.54 100.00 100.00 -0.66

0.4356

2002 2.69 105.90 105.90

-0.51 0.2601

2003 2.48 97.63 92.19 -0.72

0.5184

2004 2.74 107.87 110.48 -0.46

0.2116

2005 3.54 139.37 129.20 0.34

0.1156

2006 1.98 77.95 55.93 -1.22

1.4884

2007 6.48 255.11 327.27 3.28

10.758


Mean: - 3.20

S.D:- 1.97

C.V:- 61.56

The Table No. 4.199 above shows the details of Total Assets Turnover Ratio of JK

Lakshmi Cement Ltd India. The average is indicates at 3.20. The Total Assets

Turnover Ratio is quite high and above its average in 2005 and 2007. For all the year

under study the average is above 1. This suggests better utilization of assets for

generating higher sales and in subsequent years the significant increase in the ratio

may be due to steep increase in the sales of the company despite increase in total

assets. Standard Deviation was observed at 1.97 and Coefficient of Variation at 61.56

percent.

265

Table No.4.200

GULF CEMENT [GCEM] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.38 100.00 100.00 0.17

0.0289

2002 1.15 83.33 83.33

-0.06 0.0036

2003 1.64 118.84 142.61 0.43

0.1849

2004 1.93 139.85 117.68 0.72

0.5184

2005 0.37 26.81 19.17 -0.84

0.7056

2006 0.84 60.68 227.03 -0.37

0.1369

2007 1.22 88.40 145.24 0.01

0.0001


Mean: - 1.21

S.D:- 0.23

C.V:- 19.01 Table No. 4.200 show the Total Assets Turnover Ratio for the period of 2001 – 2007

of “Gulf Cement UAE” shown in above table, the average Total Assets Turnover

Ratio at 1.21. It is observed that during 2004 the Total Assets Turnover Ratio was

above the average. Then next year it was below the average and mean deviation for

the period also was negative. The Standard Deviation 0.23 and Coefficient of

Variation is determines at 19.01 percent.

266

Table No.4.201

NATIONAL CEMENT [NCC] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.39 100.00 100.00 0.12

0.0144

2002 1.76 126.62 126.62

0.49 0.2401

2003 1.08 77.70 61.36 -0.19

0.0361

2004 1.11 79.86 102.78 -0.16

0.0256

2005 0.94 67.63 84.68 -0.33

0.1089

2006 0.77 55.40 81.91 -0.50

0.25

2007 1.89 135.97 245.45 0.62

0.3844


Mean: - 1.27

S.D:- 0.15

C.V:- 11.81

The above Table No. 4.201 reveals that the Total Assets Turnover Ratio of “National

Cement UAE Company” for the period 2001 – 2007. The average Total Assets

Turnover Ratio for the period shows 1.27. It is above average in three years i.e. 2001,

2002 and 2007 and went down rest of the year. From 2003 to 2006 the deviation from

mean shows negative. And the Coefficient of Variation is computed at 11.81 percent.

267

Table No.4.202

SHARJAH CEMENT [SCIDC] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.76 100.00 100.00 0.51

0.2601

2002 1.42 80.68 80.68

0.17 0.0289

2003 1.87 106.25 131.69 0.62

0.3844

2004 1.06 60.22 56.68 -0.19

0.0361

2005 0.13 7.38 12.26 -1.12

1.2544

2006 0.87 49.43 669.23 -0.38

0.1444

2007 1.64 93.18 188.51 0.39

0.1521


Mean: - 1.25

S.D:- 0.32

C.V:- 25.60 The yearly Total Assets Turnover Ratio pertaining to Sharjah Cement UAE Company

Ltd for the period 2001 to 2007 has presented in Table No. 4.202. The average Total

Assets Turnover Ratio for the period shows 1.25, from 2001 to 2003 and 2007 it is

above its average, but it is below the average during the next period under study from

2004 to 2006 which indicates low turnover ratio due to decline in sale. The year 2001

have considered as best in which the Total Assets Turnover Ratio 1.76, The Standard

Deviation 0.32 And the Coefficient of Variation at 25.60 percent.

268

Table No. 4.203




Sr. No CEMENT COMPANIES MEANS

[SD/M*100] CV

1

INDIA

AMBUJA CEMENT LTD.

5.43

55.99


4.05 163.70

3 JK LAKSHMI CEMENT LTD. 3.20

61.56

4

UAE

GULF CEMENT [GCEM]

1.21

19.01

5 NATIONAL CEMENT [NCC] 1.27

11.81

6 SHARJAH CEMENT [SCIDC] 1.25

25.60


CONCLUSION

(CEMENT SECTOR) The Means and Coefficient of Variation Total Assets Turnover Ratio for Cement

Companies are furnished in Table No. 4.203. The highest Total Assets Turnover Ratio

which is desirable is observed in case of Ambuja Cement of India and in UAE

National cement. The performance of India cement companies is well, as compared to

UAE companies. Indian company’s i.e. Deccan cement Ltd is having higher

Coefficient of Variation. The Cement Companies from UAE are observed to be

maintaining a low Total Assets Turnover Ratio. Thus inferred that the Cement

Companies in India reflect performance over those from UAE, Hence opportunities is

present in India cement sector.

269

Table No.4.204

NATIONAL INSUREANCE INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.56 100.00 100.00 -0.39

0.1521

2002 1.64 64.06 64.06

-1.31 1.7161

2003 0.67 26.17 40.85 -2.28

5.1984

2004 1.95 76.17 291.04 -1.00

1.00

2005 3.64 142.18 186.67 0.69

0.4761

2006 7.25 283.20 199.18 4.30

18.49

2007 2.98 116.40 41.10 0.03

0.0009


Mean: - 2.95

S.D:- 3.86

C.V:- 130.85 The year - wise Total Assets Turnover Ratio for National Insurance India as presented

in Table No. 4.204. The highest Total Assets Turnover Ratio at 7.25 in 2006. It’s

lowest at 0.67 in 2003. The average for the period 2.95 and Standard Deviation 3.86

and Coefficient of Variation is computed at 130.85 percent.

270

Table No.4.205

ORIENTAL INSUREANCE INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.95 100.00 100.00 -0.91

0.8281

2002 2.67 281.05 281.05

0.81 0.6561

2003 0.97 102.10 36.33 -0.89

0.7921

2004 2.68 282.10 276.29 -0.82

0.6724

2005 1.90 200.00 70.90 0.04

0.0016

2006 2.76 290.52 149.19 0.90

0.81

2007 1.09 114.74 39.49 -0.77

0.5929


Mean: - 1.86

S.D:- 0.62

C.V:- 33.33

Table No. 4.205 shows the year – wise Total Assets Turnover Ratio of “Oriental

Insurance India” for the period 2001-2007. Average Total Assets Turnover Ratio is

shown at 1.86. From 2001 to 2007 here were fluctuations in the Total Assets

Turnover Ratio, in the year 2001 and 2003 an decreases in the average was observed.

But later on went below the average in the subsequent year may be due to decline in

sales.

271

Table No.4.206

UNITED INDIA INSURANCE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.42 100.00 100.00 0.10

0.01

2002 0.65 45.77 45.77

-0.67 0.4489

2003 0.92 64.78 141.54 -0.40

0.16

2004 1.61 113.38 175.00 0.29

0.0841

2005 1.29 90.84 80.12 -0.03

0.0009

2006 1.98 139.43 153.49 0.66

0.4356

2007 1.38 97.18 69.70 0.06

0.0036


Mean: - 1.32

S.D:- 0.16

C.V:- 12.12 The Total Assets Turnover Ratio for the year 2001 - 2007 of United India Insurance is

presents in Table No. 4.206 above. The average Total Assets Turnover Ratio for the

period was 1.32 The Total Assets Turnover Ratio is quite high and above the average

during 2001, 2006 and 2007, but below the average in 2002 and 2005 the decline in

ratio since 2005 onwards can be attributed to continues increase in total assets of the

company in recent year Standard Deviation is 0.16 and Coefficient of Variation at

12.12 percent.

272

Table No.4.207

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.75 100.00 100.00 1.20

1.44

2002 1.95 70.91 70.91

0.40 0.16

2003 0.74 26.91 37.95 -0.81

0.6561

2004 0.69 25.09 93.24 -0.86

0.7396

2005 0.43 15.64 62.32 -1.12

1.2544

2006 1.87 68.00 434.88 0.32

0.1024

2007 2.45 89.09 131.02 0.90

0.81


Mean: - 1.55

S.D:- 0.74

C.V:- 47.74

Table No. 4.207 above gives the details of the Total Assets Turnover Ratio of “Abu

Dhabi National Insurance” for the period 2001 - 2007. The average of Total Assets

Turnover Ratio was 1.55. The highest ratio was observed in base year 2001 and

lowest was on 0.43 and Standard Deviation of 0.74 And Coefficient of Variation was

computed at 47.74 Percent.

273

Table No.4.208

ALLIANCE INSURANCE [ALLIANCE] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 6.35 100.00 100.00 4.26

18.1476

2002 1.68 26.46 26.46

-0.41 0.1681

2003 0.74 11.65 44.05 -1.35

1.8225

2004 0.88 13.86 118.92 -1.21

1.4641

2005 0.59 9.29 67.05 -1.50

2.25

2006 1.71 26.93 289.83 -0.38

0.1444

2007 2.69 42.36 157.31 0.60

0.36


Mean: - 2.09

S.D:- 3.48

C.V:- 166.51

Above Table No. 4.208 shows the Total Assets Turnover Ratio of Alliance Insurance

UAE. The average of ratio at 2.09, the highest Total Assets Turnover Ratio observed

in the base year 2001 and lowest in the year 2005. The Total Assets Turnover Ratio

has been observed on decline trends, and Standard Deviation at 3.48, And the


274

Table No.4.209

DUBAI NATIONAL INSURANCE [DNIR] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.34 100.00 100.00 -0.32

0.1024

2002 0.87 255.88 255.88

0.21 0.0441

2003 0.72 21.17 82.76 0.06

0.36

2004 0.94 276.47 130.56 0.28

0.0784

2005 0.74 217.64 78.72 0.08

0.0064

2006 0.41 120.58 55.41 -0.25

0.0625

2007 0.63 185.29 153.66 -0.03

0.09


Mean: - 0.66

S.D:- 0.11

C.V:- 16.67 Total Assets Turnover Ratio for 2001 – 2007 of “Dubai National Insurance” UAE is

summaries in Table No. 4.209 above. As per the fixed base ratio is highest in the year

2002 was more then 200, the highest Total Assets Turnover Ratio is in the year 2004

at 0.94 and the lowest is in the year 2001 at 0.34. The average Total Assets Turnover

Ratio at 0.66. The Standard Deviation is computed at 0.11and Coefficient of Variation

is calculated at 16.67.

275

Table No.4.210 UNITED INSURANCE [UIC] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.96 100.00 100.00 -1.91

3.6481

2002 3.69 384.38 384.38

0.82 0.6724

2003 1.98 206.25 53.66 -0.82

0.7921

2004 2.58 268.75 130.30 -0.29

0.0841

2005 1.99 207.29 77.13 -0.88

0.7744

2006 2.96 308.33 148.74 0.09

0.0081

2007 5.96 620.83 201.35 3.09

9.5481


Mean: - 2.87

S.D:- 2.22

C.V:- 77.35 Table No. 4.210 depicts the Total Assets Turnover Ratio values for 2001 – 2007 of

“United Insurance [UIC] UAE” For the period 2001 -2007, the average of Total

Assets Turnover Ratio 2.87 The highest Total Assets Turnover Ratio in the year 2007

at 5.96. As per fixed base method the highest ratio of percent was observed in 2007 at

620.83, and Standard Deviation at 2.22 and Coefficient of Variation was 77.35.

276

Table No. 4.211




Sr. No

NAME OF INSURANCE COMPANIES

MEANS [SD/M*100]

CV

1

INDIA

NATIONAL INSURANCE

2.95 130.85


1.86 33.33


1.32 12.12

4

UAE


1.55 47.74


2.09 166.51


0.66 16.67

7 UNITED INSURANCE [UIC] 2.87 77.35


(INSURANCE SECTOR)

The above Table No. 4.211 provides a consolidated view of Total Assets Turnover

Ratio for Insurance Sector of India and UAE. Among the Indian companies the

National Insurance is observed with highest Total Assets Turnover Ratio Mean. At

the same it also witnesses large fluctuations, in case of UAE companies the United

Insurance companies is with high Total Assets Turnover Ratio mean and

comparatively less fluctuations. Investment opportunities are much more in India as

compare too UAE.

277

Table No.4.212




Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.69 100.00 100.00 -0.05

0.0025

2002 1.87 110.65 110.65

0.13 0.0169

2003 1.93 114.20 103.21 0.19

0.0361

2004 1.89 111.83 97.93 0.15

0.0225

2005 1.39 82.25 73.54 -0.35

0.1225

2006 1.76 104.14 126.62 0.02

0.0004

2007 1.69 100.00 96.02 -0.05

0.0025


Mean: - 1.74

S.D:- 0.03

C.V:- 1.72

Table No. 4.212 above presents Total Assets Turnover Ratio pertaining to India

Pharmaceutical Company “Cadila Health Care” for the period 2001 to 2007. The

average Total Assets Turnover Ratio for period was shown as 1.74. The year 2003 is

considered as the best in which the Total Assets Turnover Ratio is 1.93. The Standard

Deviation 0.03 and Coefficient of variation at 1.72 percent

278

Table No.4.213

CIPLA LTD PHARAMACEUTICAL COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.35 100.00 100.00 -0.36

0.1296

2002 1.75 129.63 129.63

0.04 0.0016

2003 1.94 143.70 110.86 0.23

0.0529

2004 1.83 135.56 94.33 0.12

0.0144

2005 1.76 130.37 96.17 0.05

0.0025

2006 1.49 110.37 84.66 -0.22

0.0484

2007 1.87 138.52 125.50 0.16

0.0256


Mean: - 1.71

S.D:- 0.04

C.V:- 2.34 Table No. 4.213 states the year – wise Total Assets Turnover Ratio for the period of

study “Cipla Pharma Co. Ltd India”. The Average Total Assets Turnover Ratio for the

period at 1.71. Total Assets Turnover Ratio in the year 2003 at 1.94 and Standard

Deviation 0.04, Coefficient of Variation was at 2.34.

279

Table No.4.214

SUN PHARMA PHARAMACEUTICAL COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.45 100.00 100.00 0.09

0.0081

2002 1.96 135.17 135.17

0.60 0.36

2003 1.52 104.82 77.55 0.16

0.0256

2004 1.67 115.17 109.87 0.31

0.0961

2005 0.25 17.24 14.97 -1.11

1.2321

2006 0.94 64.82 376.00 -0.42

0.1764

2007 1.73 119.31 184.04 0.37

0.1369


Mean: - 1.36

S.D:- 0.29

C.V:- 21.32

The Total Assets Turnover Ratio of “Sun Pharma” India Company is presented in

Table No. 4.214 above. The average Total Assets Turnover Ratio for the period

under the study shows 1.36. The lowest Total Assets Turnover Ratio is recorded in the

year 2005 at 0.25. It is above the average in 2002 at 1.96. Standard deviation 0.29 and

the Coefficient of variation are computed at 21.32.

280

Table No.4.215

GULF MEDICAL PROJECTS [GMPC] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.36 100.00 100.00 0.72

0.5184

2002 1.69 71.61 71.61

0.05 0.0025

2003 1.05 44.49 62.13 -0.59

0.3481

2004 1.69 71.61 160.95 0.05

0.0025

2005 1.47 62.28 86.98 -0.17

0.0289

2006 1.91 80.93 129.93 0.27

0.0729

2007 1.33 56.35 69.63 -0.31

0.0961


Mean: - 1.64

S.D:- 0.15

C.V:- 9.15

The Total Assets Turnover Ratio of “Gulf Medical” [GMPC] UAE for the year 2001

– 2007 is given in Table No. 4.215. The Total Assets Turnover Ratio has ranged

between 1.05 and 2.36. The Average of Total Assets Turnover Ratio was 1.64. It is at

its all time high in the base year 2001 at 2.36. Out of 07 year under study, in 03 year

the deviation from mean is shows negative. The low Total Assets Turnover Ratio was

recorded for the year 2003 at 1.05. This is due to decline in sales, and Standard

Deviation 0.15 and Coefficients of Variation is calculated at 9.15

281

Table No.4.216

GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.15 100.00 100.00 0.56

0.3136

2002 1.41 65.58 65.58

-0.18 0.0324

2003 1.63 75.81 115.60 0.04

0.0016

2004 1.74 80.93 106.75 0.15

0.0225

2005 1.44 66.97 82.76 -0.15

0.0225

2006 1.37 63.72 95.14 -0.22

0.0484

2007 1.42 66.04 103.65 -0.17

0.0289


Mean: - 1.59

S.D:- 0.07

C.V:- 4.40

Table No. 4.216 highlight the year – wise the Total Assets Turnover Ratio of “Gulf

Pharmaceutical” [JULPHAR] for the period of study. The Average Total Assets

Turnover Ratio for the period under study was shown at 1.59. The highest Total

Assets Turnover Ratio recorded base year 2001 at 2.15 and Standard Deviation 0.07

and Coefficient of Variation is computed 4.40 percent.

282

Table No. 4.217


PHARMA SECTOR ANALYSIS [INDIA & UAE]


Sr. No PHARMA

COMPANIES MEANS

[SD/M*100] CV

1

INDIA

CADILA HEALTH CARE

1.74 1.72

2 CIPLA LTD.

1.71 2.34

3 SUN PHARMA. 1.36 21.32

4

UAE


1.64 9.15

5

GULF PHARMACEUTICAL INDUSRIES [JULPHAR]

1.59 4.40


CONCLUSION

(PHARMACEUTICAL SECTOR) India and UAE Pharma Companies are Summaries in Table No. 4.217. The higher

mean is observed for India Pharma Cadila Health. The highest variability found in

Sun Pharma India and Gulf Medical UAE while lowest variation was recorded for

Cadila Health Care India and Gulf Pharma (UAE) Highest variation indicated

fluctuation and lowest indicated stabilities in Ratios.

283

Table No.4.218

TATA COMMUNICATION COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.85 100.00 100.00 -0.81

0.6561

2002 3.65 197.30 197.30

0.99 0.9801

2003 3.74 202.16 102.47 1.08

1.1664

2004 2.39 129.19 63.90 -0.27

0.0729

2005 2.49 134.59 104.18 -0.17

0.0289

2006 2.58 139.46 103.61 -0.08

0.0064

2007 1.96 105.95 75.97 -0.70

0.49


Mean: - 2.66

S.D:- 0.49

C.V:- 18.42 The Total Assets Turnover Ratio of “Tata Communication India details are presented

in Table No. 4.218. The Average Total Assets Turnover Ratio was 2.66. It is at its all

time high in the year 2003 at 3.74. Out of Seven year under study, in Five year the

deviation from mean is shown negative. The low Total Assets Turnover Ratio was

recorded for the year 2001 at 1.85. This is due to decline in sales, Standard Deviation

was 0.49 Coefficient of Variation is calculated 18.42.

284

Table No.4.219

BHARTI AIRTEL LTD COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ---- ----- ------ -----

------

2002 1.00 100.00 100.00

-0.32 0.1024

2003 1.69 169.00 169.00 0.37

0.1369

2004 1.42 142.00 84.02 1.42

2.0164

2005 1.81 181.00 127.46 0.49

0.2401

2006 1.63 163.00 90.06 0.31

0.0961

2007 1.72 172.00 105.52 0.40

0.16


Mean: - 1.32

S.D:- 0.46

C.V:- 34.85 The Table No. 4.219 depicts the Total Assets Turnover Ratio values for year 2002 –

2007 of “Bharti Airtel India” for the period under study, The average Total Assets

Turnover Ratio for the period 1.32 the data for the year 2001 is not available, From

2002 to 2007 there is fluctuations in the Total Assets Turnover Ratio, and Standard

Deviation 0.46 and Coefficient of Variation at 34.85 percent.

285

Table No.4.220

MTNL TELECOMMUNICATION COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.35

100.00 100.00

-0.97

0.9409

2002 3.86 249.03 249.03

1.34 1.7956

2003 3.71 239.35 96.11 1.34

1.4161

2004 2.35 151.61 63.34 -0.17

0.0289

2005 2.46 158.71 104.68 -0.06

0.0036

2006 1.82 117.42 73.98 -0.70

0.49

2007 1.95 125.81 107.14 -0.57

0.3249


Mean: - 2.52

S.D:- 0.71

C.V:- 28.17 The above Table No. 4.220 shows Total Assets Turnover Ratio for “MTNL India”. It

is observed that during 2002 and 2003 the Total Assets Turnover Ratio is quite high

than the average of 2.52, but in the later year it is quite below the average. Though the

sales have increased for two year, but increase in total assets is more than the sales

which resulted in decline of ratio in recent years. From 2004 to 2007 the deviation

from mean shows negative. The Standard deviation at 0.71 and coefficient of

variation at 28.17 percent.

286

Table No.4.221

ETISALAT TELCOM UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.38 100.00 100.00 -0.17

0.0289

2002 1.89 136.96 136.96

0.34 0.1156

2003 1.49 107.97 78.84 -0.06

0.0036

2004 1.55 112.32 104.03 -0.07

0.0049

2005 1.69 122.46 109.03 0.14

0.0196

2006 1.87 135.51 110.65 0.32

0.1024

2007 0.99 71.74 52.94 -0.56

0.3136


Mean: - 1.55

S.D:- 0.08

C.V:- 5.16 The above given Table No. 4.221 reveals the Total Assets Turnover Ratio “Etisalat

Telecom” UAE company for the period of study. The Average Total Assets Turnover

Ratio at 1.55. It is at its all time high in the year 2002 at 1.89, out of Seven year under

study in three year the deviation from mean was negative. Standard Deviation at 0.08.

And the Coefficient of Variation was computed as at 5.16 percent.

287

Table No. 4.222


TELECOM SECTOR ANALYSIS [INDIA &UAE]


Sr. No TELECOM

COMPANIES MEANS

[SD/M*100] CV

1

INDIA

TATA COMMUNICATION

2.66

18.42

2 BHARTI AIRTEL LTD 1.32 34.85

3 MTNL. INDIA 2.52

28.17

4 UAE ETISALAT TELECOM UAE

1.55 5.16

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (TELECOMMUNICATION SECTOR) The Means and Coefficient of Variation Total Assets Turnover Ratio for India and

UAE Telecom Companies are furnished in above Table No. 4.222. The highest Total

Assets Turnover Ratio which is desirable is observed in case of Tata communication

at 2.66 followed by MTNL, India. A higher Total Assets Turnover Ratio indicates

better utilization. During the period of study a higher Variation is observed in Bharti

Airtel Ltd. It indicated fluctuation and on other side MTNL and Tata Communication

stabilities in variation is found respectively in India. From the above figures it is

observed that in Indian Telecom companies are making high profit compare to UAE.

In UAE monopoly of Etisalat Telecom was observed there for there is variation in the

average of India and UAE i.e. Mean at 1.55 and Coefficient Variation at 5.16 for

UAE.

288

Table No.4.223

STEEL AUTHORITY OF INDIA LTD NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.65 100.00 100.00 0.74

0.5476

2002 2.34 88.30 88.30

0.43 0.1849

2003 1.55 58.49 66.24 -0.36

0.1296

2004 1.96 73.96 126.45 0.05

0.0025

2005 1.84 69.43 93.88 -0.07

0.0049

2006 1.37 51.69 74.46 -0.54

0.2916

2007 1.68 63.39 122.63 -0.23

0.0529


Mean: - 1.91

S.D:- 0.17

C.V:- 8.90 The above given Table No. 4.223 provides the Total Assets Turnover Ratio of “Steel

Authority of India Ltd” for the period of study. The highest Total Assets Turnover

Ratio is indicated 2.65 in 2001 base year of study. But it is on declining trend in

downward rest of year. The percentage change as per fixed base method in 2002

shows 88.30 against base value of 100 The Average Total Assets Turnover Ratio for

the period was 1.91 and Standard Deviation of 0.17 and Coefficient of Variation is

computed at 8.90 percent.

289

Table No.4.224

STEEL COMPANY GUJARAT LTD. INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.74 100.00 100.00 0.53

0.2809

2002 2.69 98.17 98.18

0.48 0.2304

2003 1.85 67.51 68.77 -0.36

0.1296

2004 1.74 63.50 94.05 -0.47

0.2209

2005 1.69 61.67 97.13 -0.52

0.2704

2006 1.93 70.43 114.20 -0.28

0.0784

2007 2.85 104.01 147.67 0.64

0.4096


Mean: - 2.21

S.D:- 0.23

C.V:- 10.41

Table No. 4.224 gives the Total Assets Turnover Ratio of “Steel Company Gujarat

Ltd” for the period 2001 – 2007. Total Assets Turnover Ratio is found to have moved

in between 1.69 and 2.85 during the period of study. There is fluctuation in Total

Assets Turnover Ratio from 2001 to 2007. The highest Total Assets Turnover Ratio

was recorded in the year 2007 at 2.85. The Average Total Assets Turnover Ratio for

the period was 2.21 and Standard Deviation 0.23 Coefficient of Variation was 10.41

percent.

290

Table No.4.225

BOULDER STEEL [BGD] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.05 100.00 100.00 0.35

0.1225

2002 1.79 87.32 87.32

0.09 0.0081

2003 1.63 79.51 91.06 -0.07

0.49

2004 1.87 91.22 114.72 0.17

0.0289

2005 1.36 66.34 72.73 -0.34

0.1156

2006 1.77 86.34 130.15 0.07

0.0049

2007 1.46 71.22 82.49 -0.24

0.0576


Mean: - 1.70

S.D:- 0.11

C.V:- 6.47

The above Table No. 4.225 presents Total Assets Turnover Ratio of “Boulder Steel

Company of UAE” for 2001 – 2007. The Average Total Assets Turnover Ratio was

1.70. Mean was observed more than 1 from the year 2002. This suggests efficient

utilization of assets for generating high sales, but then in later year it showed a low

turnover ratio. The Standard Deviation computed 0.11 and Coefficient of Variation

was 6.94. The Deviation from means was negative in three years.

291

Table No.4.226

JAZEERA STEEL [ATMI] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.63 100.00 100.00 0.81

0.6561

2002 1.84 69.96 69.96

0.02 0.04

2003 1.59 60.45 86.41 -0.23

0.0529

2004 1.72 65.39 108.18 -0.10

0.01

2005 1.66 63.11 96.51 -0.16

0.0256

2006 1.43 54.37 86.14 -0.39

0.1521

2007 1.88 71.48 131.47 0.06

0.0036


Mean: - 1.82

S.D:- 0.13

C.V:- 7.14 The above Table No.4.226 presents the details of Total Assets Turnover Ratio of

“Jazeera Steel Company of UAE”. For the period under study, the average Total

Assets Turnover Ratio for the period was 1.82. The deviation from mean was negative

four times it show a decline in sales and Coefficient of Variation was indicates at 7.14

percent.

292

Table No. 4.227

TOTAL ASSETS TURNOVER RATIO MEANS AND COEFFICIENT OF VARIATION IRON AND STEEL SECTOR ANALYSIS


Sr. No


MEANS [SD/M*100]

CV

1

INDIA


1.91 8.90


2.21 10.41

3



1.82 7.14


(IRON AND STEEL SECTOR) The mean and Coefficient and Variation of Total Assets Turnover Ratio for four Steel

Companies of India and UAE are furnished in above Table No. 4.227. The high mean

and Coefficient of Variation which is observed in case of Steel Company Gujarat and

in UAE Steel Companies Jazeera Steel was at 1.82. Out of four Iron and Steel

Companies of India and UAE, indicated stabilities in variation.

293

Table No.4.228

H C L TECHNOLOGYIES LTD IT COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.30 100.00 100.00 -0.68

0.4624

2002 1.85 142.31 142.31

-0.13 0.0169

2003 1.94 149.23 104.86 -0.04

0.0016

2004 1.63 125.38 84.02 -0.35

0.1225

2005 1.78 136.92 109.20 -0.20

0.04

2006 2.93 225.38 164.61 0.95

0.9025

2007 2.46 189.23 83.96 0.48

0.2304


Mean: - 1.98

S.D:- 0.25

C.V:- 12.63 Table No. 4.228 focuses the Total Assets Turnover Ratio of “HCL Technologies Ltd”

for the period under study. The average Total Assets Turnover Ratio for the period

was 1.98. It is above average in 2006 and 2007. It went below the average in

subsequent year. Five year the deviation from mean was negative. The standard

deviation 0.25 and coefficient of variation is determines at 12.63 percent.

294

Table No.4.229

INFOSYS TECH LTD IT COMPANY OF INDIA NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.39 100.00 100.00 -0.43

0.1849

2002 1.96 141.01 141.01

0.14 0.0196

2003 1.53 110.07 78.06 -0.29

0.0841

2004 1.64 117.98 107.19 -0.18

0.0324

2005 1.75 125.89 106.71 -0.07

0.0049

2006 2.56 184.17 146.29 0.74

0.5476

2007 1.95 140.28 76.17 0.13

0.0169


Mean: - 1.82

S.D:- 0.13

C.V:- 7.14 The above Table No. 4.229 presents the details of Total Assets Turnover Ratio of

“Infosys Tech Ltd” The Average Total Assets Turnover Ratio for the period 1.82.

From 2001 to 2007 it is above 1. It’s below the average during the period 2001 to

2005 except in the year 2002. In 2001 it was lowest at 1.39 due to decline in sales.

However, it improved significantly. From 2006 it was above the average. This

suggests efficient utlisation of assets for generating higher sales in recent year.

295

Table No.4.230 WIPRO LTD IT COMPANY OF INDIA



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.58 100.00 100.00 -0.17

0.0289

2002 1.56 98.73 98.73

-0.19 0.0361

2003 1.67 105.69 107.05 -0.08

0.0064

2004 1.46 92.40 87.43 -0.29

0.0841

2005 1.54 97.46 105.48 -0.21

0.0441

2006 1.89 119.62 122.73 0.14

0.0196

2007 2.55 161.39 134.92 0.80

0.64


Mean: - 1.75

S.D:- 0.12

C.V:- 6.86 Total Assets Turnover Ratio of “Wipro Ltd India” Ltd India for the period 2001 –

2007 highlights in Table No. 4.230. The average Total Assets Turnover Ratio during

the period under study has shown at 1.75. It is above the average in 2006 and 2007. It

went below the average in subsequent year. It is observed that 2001 to 2005 in five

years the deviation from mean was negative. The standard deviation was at 0.12 and

coefficient of variation at 6.86 percent.

296

Table No.4.231 ABU DHABI NATIONAL COMPANY FOR BUILDING

MATERIALS [BILDCO] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.26 100.00 100.00 -0.08

0.0064

2002 1.06 84.13 84.13

-0.28 0.0784

2003 1.48 117.46 139.62 0.14

0.0196

2004 1.63 129.37 110.14 0.29

0.0841

2005 1.58 125.40 96.93 0.24

0.0576

2006 1.72 136.51 108.86 0.38

0.1444

2007 0.68 53.97 39.53 -0.66

0.4356


Mean: - 1.34

S.D:- 0.11

C.V:- 8.21 The above Table No. 4.231 shows the Total Assets Turnover Ratio “Abu Dhabi

National Company for Building Material”. The average of Total Assets Turnover

Ratio for the period under study was 1.34. It was lowest in the year 2007 at 0.68 and

was highest in the year 2006 at 1.72. There was fluctuation in ratio. The Standard

Deviation calculated was at 0.11 and Coefficient of Variation was seen at 8.21.

297

Table No.4.232

DUBAI DEVELOPMENT COMPANY [DDC] UAE NET SALES TO TOTAL ASSETS



Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.94 100.00 100.00 -4.43

19.6249

2002 2.82 300.00 300.00

-2.55 6.5025

2003 5.26 559.57 186.52 -0.11

0.0121

2004 6.16 655.31 117.11 0.79

0.6241

2005 7.18 763.82 116.56 1.81

3.2761

2006 9.16 974.46 127.58 3.79

14.3641

2007 6.09 647.87 66.48 0.72

0.5184


Mean: - 5.37

S.D:- 6.42

C.V:- 119.55 The above Table No. 4.232 gives the detail the Total Assets Turnover Ratio of “Dubai

Development Company” for the period 2001 o 2007 is presents in above Table No..

The highest Total Assets Turnover Ratio was observed in 2006 at 9.16 and the lowest

Total Assets Turnover Ratio in the year 2001 at 0.94. The average Total Assets

Turnover Ratio 5.37 and Standard Deviation was at 6.42 and Coefficient of Variation

was determines at 119.55 percent.

298

Table No.4.233




Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.15 100.00 100.00 -3.73

13.9129

2002 3.18 147.91 147.91

-2.70 7.29

2003 4.17 193.95 131.13 -1.71

2.9241

2004 6.18 287.44 148.20 0.30

0.09

2005 8.17 380.00 132.20 2.29

5.2441

2006 8.14 378.60 99.63 2.26

5.1076

2007 9.17 426.51 112.65 3.29

10.8241


Mean: - 5.88

S.D:- 6.48

C.V:- 110.20

Table No. 4.233 gives the Total Assets Turnover Ratio of “Emaar Properties” for the

period 2001 – 2007 shows in the above table. The average ratio under the study 5.88,

on three occasion deviation of mean was negative. But later on from 2001 onwards

there is increase trend in Total Assets Turnover Ratio which is more than the average.

It is significant to the increase in net sale during year due to which the ratio is quite

high. This shows that the company is able to manage efficiently the total assets for

generating higher sales. The Standard Deviation 6.48 and Coefficient of Variation

110.20 percent

299

Table No.4.234




Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.21 100.00 100.00 -2.40

5.76

2002 4.15 129.28 129.28

-1.46 2.1316

2003 5.96 185.66 143.61 0.35

0.1225

2004 7.48 233.02 125.50 1.87

3.4969

2005 6.35 197.81 84.89 0.74

0.5476

2006 5.36 166.97 84.41 -0.25

0.0625

2007 6.77 210.90 126.31 1.16

1.3456


Mean: - 5.61

S.D:- 1.92

C.V:- 34.22 Table 4.234 gives above details the Total Assets Turnover Ratio of “Union Properties

UAE companies” for the period of study. The Highest Total Assets Turnover Ratio

observed in the year 2004 at 7.48 and the lowest Total Assets Turnover Ratio in the

year 2001 at 3.21 The Average for the period under study at 5.61, seven year out of

three occasion deviation from mean was negative. Standard Deviation 1.92, The

Coefficient of variation was 34.22 percent.

300

Table No. 4.235


IT FOR INDIA & CONSTRUCTION FOR UAE SECTOR ANALYSIS



[SD/M*100] CV

1

INDIA


1.98 12.63

2 INFOSYS TECH LTD.

1.82 7.14

3 WIPRO LTD.

1.75 6.86

4

UAE


1.34 8.21


5.37 119.55


5.88 110.20


5.61 34.22


(IT FOR INDIA AND CONSTRUCTION SECTOR FOR UAE) Means and Coefficient of Variation Total Assets Turnover Ratio for Indian IT

Companies and UAE Construction Companies are Summaries in above Table No.

4.235. In Indian IT Companies the highest ratio was observed at 1.98. HCL

Technologies Ltd, and UAE Construction Emaar Properties has highest ratio at 5.88

percent. A higher ratio indicates better utilization and increases more revenue of total

investment in assets. During the period of study HCL Technologies and Dubai

Development Company found highest Variation it indicated fluctuation.

301

Table No.4.236

ICICI BANK INDIA NET SALE TO FIXED ASSETS

FIXED ASSETS TURNOVER RATIO

YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.65 100.00 100.00 -0.51

0.2601

2002 3.48 131.32 131.32

0.32 0.1024

2003 2.79 105.28 80.17 -0.37

0.1369

2004 2.11 79.62 75.63 -1.05

1.1025

2005 3.64 137.35 172.51 0.48

0.2304

2006 4.89 184.52 134.34 1.73

2.9929

2007 2.58 97.35 52.76 0.58

0.3364


Mean: - 3.16

S.D:- 0.74

C.V:- 23.42 Table No. 4.236 highlights the Fixed Assets Turnover Ratio Velocity of ICICI Bank

India. The average of 3.16 from the period 2001 to 2007 was recorded. The Fixed

Assets Turnover Ratio is widely fluctuating over the years. From 2003 and 2004 the

fixed assets velocity trend is below the average and lowest in the year 2004. However,

it improved significantly from the year 2005 and 2006; it shows better utilization of

the available fixed assets.

302

Table No.4.237

CANARA BANK INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.75 100.00 100.00 -0.39

0.1521

2002 2.11 120.57 120.57

-0.03 0.0009

2003 1.98 113.14 93.84 -0.16

0.0256

2004 1.49 87.64 75.25 -0.65

0.4225

2005 1.98 113.14 132.89 -0.16

0.0256

2006 2.45 140.00 123.74 0.31

0.0961

2007 3.24 185.14 132.24 1.10

1.21


Mean: - 2.14

S.D:- 0.28

C.V:- 13.08 The Table No. 4.237 The Fixed Assets Turnover Ratio of “Canara Bank India Ltd”

for the period 2001 – 2007. The average Fixed Assets Turnover Ratio was 2.14. On

two occasions, only the Fixed Assets Turnover Ratio is above the average and for the

rest of the year’s it declined and fell below the average. This is due to shear decline in

sales on one hand and setup increase in Fixed Assets on other hand. The standard

deviation was at 0.28 and Coefficient of variation was calculated at 13.08 percent.

303

Table No.4.238

STATE BANK OF INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 -1.03

1.0609

2002 2.12 135.90 135.90

-0.47 0.2209

2003 2.32 148.71 109.43 -0.27

0.0729

2004 4.18 267.94 180.17 1.59

2.5281

2005 3.19 204.48 76.32 0.60

0.36

2006 2.46 157.69 77.12 -0.13

0.0169

2007 2.32 148.71 94.31 0.27

0.0729


Mean: - 2.59

S.D:- 0.62

C.V:- 23.94 The Table No. 4.238 gives the Fixed Assets Turnover Ratio of State Bank of India for

the period 2001 – 2007. The average fixed assets velocity is 2.59. On two occasions,

only the ratio was above the average and for rest of the years it declined and fell

below the average. This is due to shear decline in sales on one hand and steep increase

in fixed assets on other hand. Standard Deviation was at 0.62 and Coefficient of


304

Table No.4.239

ARAB BANK [ARABBANK] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 4.56 100.00 100.00 1.18

1.3924

2002 2.69 58.99 58.99

-0.69 0.4761

2003 3.95 86.62 146.84 0.57

0.3249

2004 2.59 56.79 65.57 -0.79

0.6241

2005 2.55 55.92 98.46 -0.83

0.6889

2006 3.64 79.82 142.75 0.26

0.0676

2007 3.69 80.92 101.37 0.31

0.0961


Mean: - 3.38

S.D:- 0.52

C.V:- 15.38

The Fixed Assets Turnover Ratio for 2001 – 2007 of Arab Bank UAE are summarised

in Table No. 4.239. The Arab bank UAE has quite high average of 3.38 which is

desirable. The Fixed Assets Turnover Ratio is below its average from 2004 and 2005.

The standard deviation was at 0.52 and coefficient of variation was 15.38 percent.

305

Table No.4.240

ABU DHABI COMMERCIAL BANK [ADCB] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.65 100.00 100.00 -0.18

0.0324

2002 2.55 96.23 96.23

-0.28 0.0784

2003 2.75 103.77 107.84 -0.08

0.0064

2004 3.21 121.13 116.73 0.38

0.1444

2005 3.18 120.00 99.07 0.35

0.1225

2006 3.30 124.53 103.77 0.47

0.2209

2007 2.21 83.40 66.97 -0.62

0.3844


Mean: - 2.83

S.D:- 0.141

C.V:- 4.98 Table No. 4.240 the Fixed Assets Turnover Ratio of Abu Dhabi Commercial Bank

UAE for the period 2001- 2007. The highest Fixed Assets Turnover Ratio is recorded

in 2006 at 3.30 and the lowest is observed in the year 2007. The average Fixed Assets

Velocity at 2.83 times. In the year 2004 to 2006 it is above the average which

suggests efficient management of fixed assets in generation higher sales.

306

Table No.4.241

EMIRATES BANK [EBI] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 -1.15

1.3225

2002 1.98 126.92 126.92

-0.73 0.5329

2003 2.97 190.38 150.00 0.26

0.0676

2004 2.44 156.41 82.15 -0.27

0.0729

2005 2.69 172.44 110.25 -0.02

0.0004

2006 3.44 220.51 127.88 -0.73

0.5329

2007 3.89 249.36 113.08 1.18

1.3924


Mean: - 2.71

S.D:- 0.56

C.V:- 20.66

Table No. 4.241 highlights the Fixed Assets Turnover Ratio of Emirates Bank UAE

for the period 2001 - 2007. Average Fixed Assets Turnover Ratio computed at 2.71.

The standard deviation is calculated at 0.56 and coefficient of variation is calculated is


307

Table No.4.242

NATIONAL BANK OF ABU DHABI [NBAD] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.69 100.00 100.00 -1.38

1.9044

2002 2.97 430.43 430.43

0.90 0.81

2003 1.85 268.12 62.29 -0.22

0.0484

2004 1.49 215.94 80.54 -0.58

0.3364

2005 1.87 271.01 125.50 -0.20

0.04

2006 2.67 386.96 142.78 0.60

0.36

2007 2.97 430.43 111.24 0.90

0.81


Mean: - 2.07

S.D:- 0.615

C.V:- 29.71 Table No. 4.242 depicts the Fixed Assets Turnover Ratio of National Bank of Abu

Dhabi UAE for the period 2001 – 2007. The Fixed Assets Turnover Ratio is

computed at 2.07 averages. From 2005 it shows upward trend and in 2007 it has

reached 2.97. This reveals that significant improvement in recent year. For two

consecutive financial years that is 2002 and 2007 the ratio was indicated at 2.97 and

X2 also seen 0.81 in the year 2002 and 2007. Standard Deviation at 0.615 and


308

Table No. 4.243

FIXED ASSETS TURNOVER RATIO MEANS AND COEFFICIENT OF VARIATION



Sr. No NAME OF BANKS MEANS

[SD/M*100] CV

1

INDIA

ICICI BANK

3.16

23.42

2 CANARA BANK

2.14

13.08


23.94

4

UAE


3.38

15.38


2.83

4.98


2.71

20.66


2.07

29.71


(BANKING SECTOR) The Mean and coefficient of variation Fixed Assets Turnover Ratio is summaries in

Table No. 4.243 Two Banks ICICI Bank India and Arab Bank having Fixed Assets

Turnover Ratio at 3.16 and 3.38 respectively, and reaming near and close to this

banks. It is observed that low fixed assets turnover is due to costly fixed assets added

by the Banks in recent years. The higher coefficient of variation is observed in State

Banks of India and National Bank of Abu Dhabi. It observed investment is needed in

Banking Sector for both the countries.

309


NET SALE TO FIXED ASSETS FIXED ASSETS TURNOVER RATIO

YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 8.22 100.00 100.00 4.10

16.81

2002 5.64 68.61 68.61

1.52 2.3104

2003 2.46 29.92 43.62 -1.66

2.7556

2004 3.99 48.54 162.20 -0.13

0.0169

2005 2.57 31.26 64.41 -1.55

2.4025

2006 3.49 42.45 135.80 -0.63

0.3969

2007 2.48 30.17 71.06 -1.64

2.6896


Mean: - 4.12

S.D:- 3.91

C.V:- 94.90 The above Table No. 4.244 shows the Fixed Assets Turnover Ratio of Ambuja

Cement Ltd India for the period under study 2001 – 2007. The highest Fixed Assets

Turnover Ratio is recorded in the year 2001 at 8.22 base year of study. Then after it

declined trend and fell below the average. Below the average due to rapid increase in

fixed assets of the company, And Standard Deviation 3.91, Coefficient of variation at

94.90 percent.

310

Table No.4.245

DECCAN CEMENTS LTD. INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.56 100.00 100.00 -2.06

4.2436

2002 4.89 137.35 137.36

-0.73 0.5329

2003 5.89 137.35 120.45 0.27

0.0729

2004 6.33 177.80 107.47 0.71

0.5041

2005 5.77 162.07 91.15 0.15

0.0225

2006 6.98 196.06 120.97 1.36

1.8496

2007 5.94 166.85 85.10 0.32

0.1024


Mean: - 5.62

S.D:- 1.05

C.V:- 18.68 Table No. 4.245 gives the detail of Fixed Assets velocity figures pertaining to Deccan

Cement India company Ltd. for the year 2001 - 2007. The average of Fixed Assets

Turnover Ratio for the period under study is shown as 5.62 times. From 2003 to 2007

it is above the average. The highest Fixed Assets Turnover Ratio is in the year 2006 at

6.98 times. The standard deviation is computed at 1.05 and coefficient of variation is


311

Table No.4.246

J K LAKSHMI CEMENTS LTD. INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 -1.74

3.0276

2002 2.65 169.87 169.87

-0.65 0.4225

2003 3.48 223.07 131.32 0.18

0.0324

2004 3.47 222.43 99.71 0.17

0.0289

2005 5.49 351.92 158.21 2.19

4.7961

2006 3.65 233.97 66.48 0.35

0.1225

2007 2.85 182.69 78.08 -0.45

0.2025


Mean: - 3.30

S.D:- 1.23

C.V:- 37.27 The Table No. 4.246 shows the Fixed Assets Velocity figures pertaining to JK

Lakshmi Cement Ltd India Company for the period 2001 - 2007. The average velocity

for the period under study is shown as 3.30 times. From 2001, 2002 and 2007 it is

below the average from 2003 to 2006 it’s more than 3. The highest Fixed Assets

Turnover Ratio is in the year 2005 at 5.49 times. The standard deviation is 1.23 and

coefficient of variation is 37.27 percent.

312

Table No.4.247

GULF CEMENT [GCEM] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.09 100.00 100.00 -0.93

0.8649

2002 2.16 198.17 198.17

0.14 0.0196

2003 2.34 214.68 108.33 0.32

0.1024

2004 1.68 154.13 71.79 -0.34

0.1156

2005 2.91 266.97 173.21 0.89

0.7921

2006 2.33 213.76 80.07 0.31

0.0961

2007 1.64 150.46 70.39 -0.38

0.1444


Mean: - 2.02

S.D:- 0.31

C.V:- 15.35

Table No. 4.247 depicts the Fixed Assets Turnover Ratio of “Gulf Cement UAE” for

the period 2001 – 2007. The average Fixed Assets Velocity Ratio for the period is

indicated as 2.02. The Fixed Assets Turnover Ratio very low at 1.09 in 2001 due to

sharp decline in sales on one hand and step increase in fixed assets on the other hand.

Standard Deviation at 0.31 and Coefficient of Variation at 15.35 percent.

313

Table No.4.248

NATIONAL CEMENT [NCC] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.43 100.00 100.00 -0.77

0.5929

2002 2.86 200.00 200.00

0.66 0.4356

2003 2.34 1.63.63 81.82 0.14

0.0196

2004 1.92 134.26 82.05 -0.28

0.0784

2005 2.84 198.60 147.92 0.64

0.4096

2006 2.61 182.51 91.90 0.41

0.1681

2007 1.43 100.00 54.79 -0.77

0.5929


Mean: - 2.20

S.D:- 0.33

C.V:- 15.00

Table No. 4.248 The Fixed Assets Turnover Ratio for the period 2001 – 2007 of

National Cement UAE Company. Fixed Assets Velocity Ratio is fluctuating from

year to year and an average Fixed Assets Turnover Ratio at 2.20. During 2002 to 2006

except 2004, it is above the average. But again it declined in last year 2007, the ratio

2.86 in 2002 all time high. Standard Deviation was shows at 0.33 and Coefficient of

Variation at 15.00 percent.

314

Table No.4.249

SHARJAH CEMENT [SCIDC] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.29 100.00 100.00 -0.97

0.9409

2002 1.96 151.94 151.94

-0.30 0.09

2003 2.78 215.50 141.84 0.52

0.2704

2004 2.66 206.20 95.68 0.40

0.16

2005 2.49 193.02 93.61 0.23

0.0529

2006 2.74 212.40 110.04 0.48

0.2304

2007 1.94 150.39 70.80 -0.32

0.1024


Mean: - 2.26

S.D:- 0.26

C.V:- 11.50 The Table No. 4.249 present details of Fixed Assets Velocity Ratio pertaining to

Sharjah Cement UAE company Ltd. It indicates that the average at 2.26 for the period

of 2001 to 2007. In the year 2007, Fixed Assets Turnover Ratio is below its average

consequent of increase in fixed assets in higher proportion than the increase in sales.

Standard Deviation at 0.26 and Coefficient of Variation at 11.50 percent.

315

Table No. 4.250 FIXED ASSETS TURNOVER RATIO

MEANS AND COEFFICIENT OF VARIATION CEMENT SECTOR ANALYSIS


Sr. No CEMENT COMPANIES MEANS

[SD/M*100] CV

1 INDIA AMBUJA CEMENT LTD.

4.12 94.90


5.62

18.68


3.30

37.27

4 UAE GULF CEMENT [GCEM]

2.02 15.35


2.20

15.00


2.26

11.50


CONCLUSION

(CEMENT SECTOR) The Mean and coefficient of variation of Fixed Assets Turnover Ratio have

summaries in Table No. 4.250. It is important to note that the performance of India

cement companies have higher Ratio. Deccan cement Ltd. is having highest ratio at

5.62. India Cement Companies is having higher ratio than UAE. A high fixed assets

turnover ratio indicates a high degree of efficiency in assets utilization. The highest

variability found in Ambuja Cement India and Gulf Cement UAE while lowest

variation is recorded for Deccan Cement India and Sharjah Cement (UAE).Hence, it

is suggested that investment opportunities is present in India cement sector.

316

Table No.4.251 NATIONAL INSURANCE COMPANY OF INDIA


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.64 100.00 100.00 -1.72

2.9584

2002 1.67 260.93 260.94

-0.69 0.4761

2003 3.98 621.87 238.32 1.62

2.6244

2004 0.94 146.87 23.62 -1.42

2.0164

2005 3.68 575.00 391.49 1.32

1.7424

2006 1.98 309.37 53.80 -0.38

0.1444

2007 3.68 575.00 185.86 1.32

1.7424

India and United Arab Emirates

Mean: - 2.36

S.D:- 1.67

C.V:- 70.76 The Table No. 4.251 the Fixed Assets Turnover Ratio of National Insurance India for

period 2001 – 2007. The Fixed Assets Turnover Ratio is highest at 3.98 in 2003. It is

lowest at 0.64 in 2001. On two consequently year 2005 and 2007 the Fixed Assets

Turnover Ratio at 3.68. The average for the period was at 1.10 and Standard

Deviation 1.67 and Coefficient of Variation at 70.76 percent.

317

Table No.4.252

ORIENTAL INSUREANCE COMPANY OF INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.85 100.00 100.00 -0.27

0.0729

2002 3.75 131.58 131.58

0.63 0.3969

2003 4.26 149.47 113.60 1.14

1.2996

2004 1.68 58.94 39.44 -1.44

2.0736

2005 2.97 104.21 176.79 -0.15

0.0225

2006 3.59 125.96 120.88 0.47

0.2209

2007 2.74 96.14 76.32 -0.38

0.1444


Mean: - 3.12

S.D:- 0.60

C.V:- 19.23 The Table No. 4.252 show the details of Fixed Assets Velocity Ratio pertaining to

Oriental Insurance India. Fixed Assets Turnover Ratio average at 3.12 for the period

of 2001 to 2007. The Fixed Assets Velocity Ratio is below its average from 2004 to

2007 except 2006. The below average ratio is result of increase in fixed assets of the

company in recent year. Standard Deviation at 0.60 and Coefficient of Variation

calculated 19.23 percent.

318

Table No.4.253

UNITED INDIA INSURANCE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 -0.60

0.36

2002 2.09 133.97 133.97

-0.07 0.0049

2003 1.49 95.51 71.29 -0.67

0.4489

2004 1.19 76.28 79.87 -0.97

0.9409

2005 2.58 165.38 216.81 0.42

0.1769

2006 2.56 164.10 99.22 0.40

0.16

2007 3.68 235.89 143.75 1.52

2.3104


Mean: - 2.16

S.D:- 0.63

C.V:- 29.17 Table No. 4.253 states the year – wise Fixed Assets Turnover Ratio of United India

Insurance for the period of study. The company has quite high average Fixed Assets

Velocity Ratio for the period was at 2.16. Which is desirable, the fixed assets velocity

is below its average from 2001. The below average ratio is the result of substantial

increase in the fixed assets of the company in recent years. Standard Deviation 0.63

and Coefficient of Variation at 29.17

319

Table No.4.254

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.85 100.00 100.00 0.01

0.01

2002 2.68 144.86 144.86

0.84 0.7056

2003 2.22 120.00 82.84 0.38

0.1444

2004 1.64 88.64 73.87 -0.20

0.04

2005 2.01 18.65 122.56 0.17

0.0289

2006 1.96 105.94 97.51 0.12

0.0144

2007 0.74 40.00 37.76 -1.10

1.21


Mean: - 1.84

S.D:- 0.31

C.V:- 16.84 The Table No. 4.254 above presents Fixed Assets Turnover Ratio Abu Dhabi National

Insurance Company for the period of 2001 to 2007. The Fixed Assets Turnover Ratio

shows the decline trend. The lowest Fixed Assets Turnover Ratio recorded in 2007 at

0.74. The average of Fixed Assets Velocity Ratio 1.84 and Standard Deviation at

0.31. The Coefficient of Variation is determines at 16.84 percent

320

Table No.4.255

ALLIANCE INSURANCE [ALLIANCE] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.57 100.00 100.00 -1.32

1.7424

2002 2.42 154.14 154.14

-0.47 0.2209

2003 1.86 118.47 76.86 -1.03

1.0609

2004 2.74 174.52 147.31 -0.15

0.0225

2005 3.96 252.22 144.53 1.07

1.1449

2006 2.84 180.89 71.72 -0.05

0.25

2007 4.88 310.82 171.83 1.99

3.9601


Mean: - 2.89

S.D:- 1.20

C.V:- 41.52 Fixed Assets Velocity Ratio of Alliance Insurance of UAE Company is present in

Table No.4.255. The highest at 4.88 in 2007, and the lowest Fixed Assets Turnover

Ratio in the year 2001at 1.57, the Fixed Assets Turnover Ratio has been observed in

increasing trend. The average of the Fixed Assets Turnover Ratio for the period was

2.89 and Standard Deviation 1.20. And the Coefficient of Variation at 41.52, as per

the fixed base more than 300 percent in 2007

321

Table No.4.256

DUBAI NATIONAL INSURANCE [DNIR] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.35 100.00 100.00 -1.13

1.2769

2002 2.39 177.04 177.04

-0.09 0.0081

2003 3.54 262.22 148.12 1.06

1.1236

2004 2.34 173.33 66.10 -0.14

0.0196

2005 2.66 197.04 113.68 0.18

0.0324

2006 2.47 182.96 92.86 -0.01

0.01

2007 2.63 194.81 106.48 0.15

0.0225


Mean: - 2.48

S.D:- 0.36

C.V:- 14.52

Table No. 4.256 above gives the Fixed Assets Turnover Ratio of Dubai National

Insurance the Fixed Assets Velocity Ratio as present in above table. The average

Fixed Assets Turnover Ratio was at 2.48, the highest Fixed Assets Turnover Ratio in

the year 2003 at 3.54 and the lowest in the year 2001 at 1.35. The Fixed Assets

Turnover Ratio is fluctuating during the period of study. Standard Deviation is at


322

Table No.4.257

UNITED INSURANCE COMPANY [UIC] OF UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.96 100.00 100.00 -4.21

17.7241

2002 2.59 132.14 132.14

-3.58 12.8164

2003 5.88 300.00 227.03 -0.29

0.0841

2004 7.48 381.63 127.21 1.31

1.7161

2005 9.63 491.33 128.74 3.46

11.9716

2006 8.19 417.86 85.05 2.02

4.0804

2007 7.46 380.61 91.09 1.29

1.6641


Mean: - 6.17

S.D:- 7.15

C.V:- 115.88 Table No. 4.257 states the year – wise Fixed Assets Turnover Ratio of “United

Insurance UAE” for the period of study. Highest Fixed Assets Turnover Ratio is in

the year 2005 at 9.63 and the lowest in 2001 at 1.96. During the period of study 2001

to 2007 average 6.17.Standard Deviation was at 7.15 and Coefficient of Variation is at

computed at 115.88. On three occasions deviation of mean was negative.

323

Table No. 4.258




Sr. No

INSURANCE COMPANIES

MEANS [SD/M*100]

CV

1

INDIA

NATIONAL INSURANCE

2.36 70.76


3.12 19.23


2.16 29.17

4

UAE


1.84 16.84


2.89 41.52


2.48 14.52


6.17 115.88


(INSURANCE SECTOR) Means and Coefficient of Variation of Fixed Assets Turnover Ratio are summarised

in the Table No. 4.258. United Insurance, UAE and Orient Insurance, India has Ratio

higher than other insurance companies. However, a high Coefficient of Variation is

observed in case of United Insurance Companies, UAE. On the other hand, the

Oriental Insurance is successful in maintaining stable and high Fixed Assets Turnover

Ratio. This indicates the better performance of Indian Insurance sector.

324

Table No.4.259



YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.63 100.00 100.00 1.47

2.1609

2002 6.32 112.26 112.26

2.16 4.6656

2003 7.45 132.33 117.88 3.29

10.8241

2004 5.63 100.00 75.57 1.47

2.1609

2005 2.31 41.03 41.03 -1.85

3.4225

2006 0.99 17.58 42.86 -3.17

10.0489

2007 0.84 14.92 84.85 -3.32

11.0224


Mean: - 4.16

S.D:- 6.33

C.V:- 152.16 Fixed Assets Turnover Ratio pertaining to India Pharmaceutical Company “Cadila

Health Care” presented in Table No. 4.259; the average Fixed Assets Turnover Ratio

for period is shown at 4.16. From 2001 to 2004 it is above its average, but it’s below

the average during the next period under study i.e. from 2006 and 2007. Standard

Deviation 6.33 and Coefficient of variation is computed at 152.16 percent.

325

Table No.4.260

CIPLA LTD PHARAMACEUTICAL COMPANY OF INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.99 100.00 100.00 -0.35

0.1225

2002 1.67 83.92 83.92

-0.67 0.4489

2003 1.74 87.44 104.19 -0.60

0.36

2004 1.93 96.98 110.92 -0.41

0.1681

2005 2.54 127.64 131.61 0.20

0.04

2006 3.69 185.43 145.28 1.35

1.8225

2007 2.85 143.22 77.24 0.51

0.2601


Mean: - 2.34

S.D:- 0.46

C.V:- 19.66 Table No. 4.260 gives the Fixed Assets Turnover Ratio for the period 2001 – 2007 of

“Cipla Pharma Co. Ltd. India” Fixed Assets Turnover Ratio is computed as 2.34

averages From 2001 to 2004 it is below the average as shown in the above table. Only

during 2005 to 2007 onwards it is showing upwards trend. This indicates optimum

utilization of the fixed assets for generation of more sales. Standard Deviation is 0.46

and Coefficient of Variation is determines at 19.66 percent.

326

Table No.4.261

SUN PHARMA. INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 4.58 100.00 100.00 -0.56

0.3136

2002 2.56 55.90 55.90

-2.58 6.6564

2003 9.35 204.15 365.23 4.21

17.7241

2004 8.64 188.65 92.41 3.50

12.25

2005 6.29 137.34 72.80 1.15

1.3225

2006 3.64 79.48 57.87 -1.50

2.25

2007 0.93 20.31 25.55 -4.21

17.7241


Mean: - 5.14

S.D:- 8.32

C.V:- 161.87

Table No. 4.261 state the year wise Fixed Assets Turnover Ratio values pertaining to

India Company “Sun Pharma” for the period of study. The average Fixed Assets

Turnover Ratio for the period was at 5.14. Since, 2005 the fixed velocity is well above

the average. The highest is recorded in 2003 at 9.35 times and lowest in the year 2007

at 0.93 times. Hence, there are opportunities in pharmaceutical company of India.

Standard Deviation at 8.32 and Coefficient of Variation is computed at 161.87

percent.

327

Table No.4.262 GULF MEDICAL PROJECTS [GMPC] PHARMACEUTICAL

COMPANY OF UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.25 100.00 100.00 -0.67

0.4489

2002 2.43 194.40 194.40

0.51 0.2601

2003 2.33 186.40 95.88 0.41

0.1681

2004 1.56 124.80 66.95 -0.36

0.1296

2005 2.10 168.00 134.62 0.18

0.0324

2006 2.44 195.20 116.19 0.52

0.2704

2007 1.36 108.80 55.74 -0.56

0.3136


Mean: - 1.92

S.D:- 0.23

C.V:- 11.98 Table No. 4.262 gives the Fixed Assets Turnover Ratio for the period 2001 – 2007

of “Gulf Medical” UAE company is presents. The average of Fixed Assets Velocity

Ratio for the period under study is shown at 1.92 times, and Standard Deviation 0.23

and Coefficients of Variation at 11.98.

328

Table No.4.263 GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.36 100.00 100.00 -0.85

0.7225

2002 2.85 209.56 209.56

0.64 0.4096

2003 2.42 177.94 84.91 0.21

0.0441

2004 1.75 128.68 72.31 -0.46

0.2116

2005 2.36 173.53 134.86 0.15

0.0225

2006 2.94 216.18 124.58 0.73

0.5329

2007 1.84 135.29 62.59 -0.37

0.1369


Mean: - 2.21

S.D:- 0.30

C.V:- 13.57

Table No. 4.263 states that the Fixed Assets Turnover Ratio of “Gulf

Pharmaceutical” UAE for the period 2001 – 2007 under study. The company has quite

high average of 2.21 which is desirable. Standard Deviation is computed at 0.30

percent. The Coefficient of Variation at 13.57 percent.

329


MEANS AND COEFFICIENT OF VARIATION PHARMACEUTICAL SECTOR ANALYSIS




CV

1

INDIA

CADILA HEALTH CARE

4.16 152.16

2 CIPLA LTD.

2.34 19.66

3 SUN PHARMA.

5.14 161.87

4

UAE


1.92 11.98


2.21 13.57


(PHARMACEUTICAL SECTOR) The Mean and coefficient of variation of Fixed Assets Turnover Ratio for India and

UAE Pharma Companies are summarised in the Table No. 4.264. It is important to

note that the performance of India Pharma companies is better as compare to UAE

Pharma companies. This show that the high Fixed Assets Turnover Ratio indicates a

high degree of efficiency in assets utilization and a low ratio reflects inefficient use of

assets. Sun Pharma Company has higher coefficient of variation.

330

Table No.4.265 TATA COMMUNICATION OF INDIA


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.69 100.00 100.00 -0.76

0.5776

2002 1.58 93.49 93.49

-0.87 0.7569

2003 1.96 115.98 124.05 -0.49

0.2401

2004 2.95 174.56 150.51 0.50

0.25

2005 3.45 204.14 116.95 1.00

1.00

2006 2.96 175.15 85.80 0.51

0.2601

2007 2.59 153.25 87.50 0.14

0.0196


Mean: - 2.45

S.D:- 0.44

C.V:- 17.96 Table No. 4.265 give the details Fixed Assets Turnover Ratio of “Tata

Communication” India company for the period 2001 - 2007. The company has quite

high average of 2.45, which is desirable. The fixed assets velocity is below its average

from 2004. The below average ratio is the result of substantial increase in the fixed

assets of the company in recent years. Standard Deviation at 0.44 and Coefficient of

Variation is calculated at 17.93

331

Table No.4.266 BHARTI AIRTEL LTD INDIA


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ---- ----- ------ -----

------

2002 2.21 100.00 100.00

-0.43 0.1849

2003 2.75 124.43 124.43 0.11

0.0121

2004 3.13 141.63 113.82 0.49

0.2401

2005 2.96 133.94 94.57 0.32

0.1024

2006 2.46 111.31 83.11 -0.18

0.0324

2007 2.34 105.88 95.13 -0.30

0.09


Mean: - 2.64

S.D:- 0.11

C.V:- 4.17 The Table No. 4.266 depicts the Fixed Assets Turnover Ratio for the year 2002 - 2007

pertaining to Bharti Airtel India Company for the period under study. The Average

Fixed Assets Turnover Ratio for the period is shown at 2.64. The data for the year

2001 is not available. In 2006 and 2007 Fixed Assets Velocity is below its average

consequent to the increase in fixed asses in higher proportion than the increase in

sales. The Standard Deviation is computed at 0.11 and coefficient of variation is

determines as 4.17 percent.

332

Table No.4.267

MTNL TELECOMMUNICATION COMPANY OF INDIA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.35 100.00 100.00 -1.61

2.5921

2002 1.56 115.56 115.56

-1.40 1.96

2003 1.65 122.22 105.77 -1.31

1.7161

2004 3.85 285.19 233.33 0.89

0.7921

2005 7.54 558.52 195.84 4.58

20.9764

2006 1.98 146.67 26.26 -0.98

0.9604

2007 2.79 206.67 140.91 -0.17

0.0289


Mean: - 2.96

S.D:- 4.15

C.V:- 140.20 The above Table No. 4.267 gives the year – wise Fixed Assets Turnover Ratio

“MTNL India” for the period 2001 – 2007 The Fixed Assets Turnover Ratio is

indicated at 2.96 in the above table. The highest Ratio is recorded in 2005 at 7.5 and

it’s lowest in 1.35 in the year 2001. An above table Fixed Assets Turnover Ratio

above 1. This suggests efficient management of fixed assets in generation of higher

sales. The Standard Deviation at 4.15 and Coefficient of Variation at 140.20 percent.

333

Table No.4.268 ETISALAT TELCOM UAE


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.22 100.00 100.00 -0.55

0.3025

2002 2.28 102.70 102.70

-0.49 0.2401

2003 4.15 186.94 182.02 1.38

1.9044

2004 3.16 142.34 76.14 0.39

0.1521

2005 2.69 121.17 85.13 -0.08

0.0064

2006 2.45 110.36 91.08 -0.32

0.1024

2007 2.48 111.71 101.22 -0.29

0.0841


Mean: - 2.77

S.D:- 0.40

C.V:- 14.44 The above given Table No. 4.268 shows the Fixed Assets Turnover Ratio of “Etisalat

Telecom” UAE company. The average Fixed Assets Turnover Ratio for the period

recorded at 2.77. During the year 2003 and 2004 the Fixed Assets Velocity is well

above average. But again it decline and fell below the average. From 2005 it is

continuously below the average due to rapid increase in fixed assets of the company.

334


MEANS AND COEFFICIENT OF VARIATION TELECOMMUNICATION SECTOR ANALYSIS


Sr. No TELECOM


CV

1

INDIA

TATA COMMUNICATION

2.45 17.96

2 BHARTI AIRTEL LTD

2.64 4.17

3 MTNL. INDIA 2.96 140.20


2.77 14.44

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (TELECOMMUNICATION SECTOR) The means coefficient of variation fixed asset turnover ratio of India and UAE

Telecom Companies are summaries in above Table No.4.269. During the period of

study the higher means and coefficient of variation was observed MTNL 2.96 and

140.20 India. A high fixed assets turnover ratio indicates a high degree of efficiency

in assets utilization and highest variation indicates fluctuation. Hence, Telecom Sector

of India and UAE is having a Investment opportunities

335

Table No.4.270 STEEL AUTHORITY OF INDIA LTD


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.22 100.00 100.00 -2.77

7.6729

2002 6.54 125.28 125.28

-1.45 2.1025

2003 8.87 169.92 135.63 0.88

0.7744

2004 7.65 146.55 86.25 -0.34

0.1156

2005 11.45 219.34 149.67 3.46

11.9716

2006 6.88 131.80 60.09 -1.11

1.2321

2007 9.35 179.11 135.90 1.36

1.8496


Mean: - 7.99

S.D:- 3.67

C.V:- 45.93 The above Table No. 4.270 provides the Fixed Assets Turnover Ratio of “Steel

Authority of India Ltd.” for the period of study the Fixed Asses Velocity Ratio is very

large having an average of 7.99 as shown in the above table. During the entire period

it is above 1, this indicates optimum utilization of the Fixed Assets for generation of

more sales, Standard Deviation of 3.67 and Coefficient of Variation at 45.93.

336

Table No.4.271 STEEL COMPANY GUJARAT LTD INDIA


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.74 100.00 100.00 -1.90

3.61

2002 1.98 72.26 72.26

-2.66 7.0756

2003 2.58 94.16 130.30 -2.06

4.2436

2004 4.65 169.70 180.23 0.01

0.0001

2005 9.68 353.28 208.17 5.04

25.402

2006 7.25 264.59 74.90 2.61

6.8121

2007 3.65 133.21 50.34 -0.99

0.9801


Mean: - 4.64

S.D:- 6.87

C.V:- 148.06 Table No. 4.271 highlight the Fixed Assets Turnover Ratio pertaining to “Steel

Company Gujarat Ltd.” India for the period 2001 – 2007 is shown in above table. The

Average Fixed Assets Turnover Ratio for the period is at .4.64. Since 2004, the

highest is recorded in 2005 at 9.68 times and lowest in the year 2002 at 1.98. Standard

Deviation 4.64 Coefficient of Variation was 148.06 percent.

337

Table No.4.272 BOULDER STEEL [BGD] UAE


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.85 100.00 100.00 -0.36

0.1296

2002 2.71 146.49 146.49

0.50 0.25

2003 2.69 145.41 99.26 0.48

0.2304

2004 1.32 71.35 49.07 -0.89

0.7921

2005 2.42 130.81 183.33 0.21

0.0441

2006 2.64 142.70 109.09 0.43

0.1849

2007 1.89 102.16 71.59 -0.33

0.1024


Mean: - 2.21

S.D:- 0.24

C.V:- 10.85 The above Table No. 4.272 presents the Fixed Assets Turnover Ratio of “Boulder

Steel Company of UAE” The average indicates of 2.21 for the period 2001 to 2007.

The ratio is fluctuating over the year. It improved significantly from the years it

shows better utilization of the available fixed assets. Standard Deviation at 0.24 and

Coefficient of variation is computed at 10.85 percent.

338

Table No.4.273 JAZEERA STEEL [ATMI] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.75 100.00 100.00 -0.62

0.3844

2002 2.96 169.14 169.14

0.59 0.3481

2003 2.83 161.71 95.61 0.46

0.2116

2004 1.72 98.28 60.78 -0.65

0.4225

2005 2.66 152.00 154.65 0.29

0.0841

2006 2.72 155.42 102.26 0.35

0.1225

2007 1.95 111.42 71.69 -0.42

0.1764


Mean: - 2.37

S.D:- 0.24

C.V:- 10.13

The above Table No. 4.273 reflects the Fixed Assets Turnover Ratio of “Jazeera Steel

Company of UAE” for the period 2001 – 2007. The company has quite high average

2.37, which is desirable, which suggests efficient management of fixed assets in

generation of higher sales. The average Fixed Assets Turnover Ratio for the period is

at 2.37 and Standard Deviation of 0.24 and Coefficient of Variation was indicates at

10.13 percent.

339




Sr. No


MEANS [SD/M*100]

CV

1

INDIA


7.99 45.93


4.64 148.06

3



2.37 10.13


(IRON AND STEEL SECTOR)

The Means and Coefficient of Variation of Fixed Assets Turnover Ratio are

summaries in the above Table No. 4.274. Indian Steel Companies have higher Fixed

Assets Turnover Ratio. Hence, the performance of UAE iron and steel companies is

low as compare to India. Thus it is observed that Investment opportunities are present

in Iron and Steel Sector of India.

340

Table No.4.275 H C L TECHNOLOGYIES LTD IT COMPANY OF INIDA


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 15.69 100.00 100.00 5.45

29.7025

2002 15.63 99.62 99.62

5.39 29.0521

2003 8.56 54.55 54.77 -1.68

2.8224

2004 9.63 61.37 112.50 -0.61

0.3721

2005 11.25 71.70 116.82 1.01

1.0201

2006 6.35 40.47 56.44 -3.89

15.1321

2007 4.59 29.25 72.28 -5.65

31.9225


Mean: - 10.24

S.D:- 15.72

C.V:- 153.52

Table No. 4.275 shows the Fixed Assets Turnover Ratio of “HCL Technologies Ltd.”

for the period under study. The table states that the Fixed Assets Turnover Ratio

during the period ranged in between 4.59 and 15.69. The Fixed Assets Turnover Ratio

is computed at 10.24 averages for the period under study. From four year 2003, 2004,

2006 and 2007 it is below the average as shown in above table. But after 2004 it is

shown upwards in 2005 at 11.25. This reveals significant improvement in recent year.

Standard Deviation is at 15.72 and Coefficient of Variation is computed at 153.52.

341

Table No.4.276 INFOSYS TECH LTD COMPANY OF INIDA


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.63 100.00 100.00 -1.95

3.8025

2002 4.96 88.09 88.09

1.28 1.6384

2003 2.56 45.47 51.61 -1.12

1.2544

2004 1.25 22.20 48.83 -2.43

5.9049

2005 3.29 58.43 263.20 -0.39

0.1521

2006 3.96 70.33 120.36 0.28

0.0784

2007 4.11 73.00 103.79 0.43

0.1849


Mean: - 3.68

S.D:- 1.86

C.V:- 50.54 Table No. 4.276 present Fixed Assets Turnover Ratio of “Infosys Tech Ltd.” India

for period 2001 – 2007. The average Fixed Assets Turnover Ratio is at 3.68 for the

period 2001 -2007. In 2003 to 2005 it fell below the average. In rest of the years it is

around the average. It is above 1 in all the year as shown in the above table. This

indicates better performance. The Standard Deviation at 1.86 and Coefficient of

variation is computed at 50.54 percent.

342

Table No.4.277

WIPRO LTD COMPANY OF INIDA NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.45 100.00 100.00 -0.81

0.6561

2002 2.65 108.16 108.16

-0.61 0.3721

2003 3.54 144.48 133.58 0.28

0.0784

2004 2.56 104.48 72.32 -0.70

0.49

2005 4.23 172.65 165.23 0.97

0.9409

2006 3.21 131.02 75.89 -0.05

0.0025

2007 4.23 172.65 131.78 0.97

0.9409


Mean: - 3.26

S.D:- 0.50

C.V:- 15.34

The Fixed Assets Turnover Ratio of “Wipro Ltd. India” for the period 2001 – 2007 is

given in Table No. 4.277. The average Fixed Assets Turnover Ratio is quite good at

3.26. From 2001 to 2006 except 2005 it is below the average. But after 2006 it is well

over the average suggests better utilization of the available fixed assets in past two

years. Standard Deviations at 0.50 and Coefficient of variation at 15.34 percent.

343

Table No.4.278

ABU DHABI NATIONAL COMPANY FOR BUILDING MATERIALS [BILDCO] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.22 100.00 100.00 -0.42

0.1764

2002 4.15 128.88 128.88

0.51 0.2601

2003 3.65 113.35 87.95 0.01

0.0001

2004 3.15 3.22 86.30 -0.49

0.2401

2005 4.12 127.95 130.79 0.48

0.2304

2006 3.27 101.55 79.37 -0.37

0.1369

2007 3.96 122.98 121.10 0.32

0.1024


Mean: - 3.64

S.D:- 0.16

C.V:- 4.40

The year – wise Fixed Assets Turnover Ratio of “Abu Dhabi National Company for

Building Material” are presented in Table No. 4.278. The highest Fixed Assets

Turnover Ratio is recorded in 2002 at 4.15 and it is lowest in 3.15 in the year 2004.

The average of Fixed Assets Turnover Ratio is at 3.64 times. During the three year of

study it is above the average, which suggests efficient management of fixed assets in

generation of higher sales.

344

Table No.4.279

DUBAI DEVELOPMENT COMPANY [DDC] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.96 100.00 100.00 -3.69

13.6161

2002 4.19 213.78 213.78

-1.46 2.1316

2003 5.18 264.29 123.63 -0.47

0.2209

2004 6.39 326.02 123.36 0.74

0.5476

2005 7.18 366.33 112.36 1.53

2.3409

2006 8.49 433.16 118.25 2.84

8.0656

2007 6.18 315.31 72.79 0.53

0.2809


Mean: - 5.65

S.D:- 3.89

C.V:- 68.85 The above Table No. 4.279 reveals the yearly Fixed Assets Turnover Ratio of “Dubai

Development Company” for the period 2001 – 2007. It is observed to have ranged in

between 1.96 and 8.49. The average Fixed Assets Turnover Ratio 5.65. The highest

Fixed Assets Turnover Ratio is observed in 2006 at 8.49. As per fixed base ratio in

2006 it was more than 400 and Standard Deviation 3.89 and Coefficient of Variation

are computed at 68.85 percent.

345

Table No.4.280

EMAAR PROPERTIES [EMAAR] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.38 100.00 100.00 -0.29

0.0841

2002 2.75 199.28 199.28

1.08 1.1664

2003 1.08 78.26 39.27 -0.59

0.3481

2004 0.15 10.87 13.89 -1.52

2.3104

2005 2.09 151.45 1393.33 0.42

0.1764

2006 1.09 78.99 52.15 -0.58

0.3364

2007 3.19 231.16 292.66 1.52

2.3104


Mean: - 1.67

S.D:- 0.96

C.V:- 57.49 Table No. 4.280 gives the Fixed Assets Turnover Ratio for the period 2001 - 2007 of

“Emaar Properties” UAE the Fixed Assets Velocity Ratio is fluctuating from year to

year and an average for the study 1.67. In the year 2002 it is above the average. But

again it decline in 2003, 2004. In the year 2005 it is above the average. The Fixed

Assets Turnover Ratio all time high in the year 2007 at 3.19 Standard Deviation 1.67

and Coefficient of Variation 57.49 percent.

346

Table No.4.281

UNION PROPERTIES [UPP] UAE NET SALE TO FIXED ASSETS


YEARS Fixed Assets

Turnover Ratio

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.52 100.00 100.00 -0.93

0.8649

2002 3.26 214.47 214.47

0.81 0.6561

2003 4.74 311.84 145.40 2.29

5.2441

2004 0.35 23.02 7.38 -2.10

4.41

2005 1.28 84.21 365.71 -1.17

1.3689

2006 3.15 207.23 246.09 0.70

0.49

2007 2.86 188.15 90.79 0.40

0.1681


Mean: - 2.45

S.D:- 1.89

C.V:- 77.14 Table No. 4.281 given details the Fixed Assets Turnover Ratio of “Union Properties

UAE companies” for the period of study. The average for the period under study at

2.45, the highest Fixed Assets Velocity was observed in the year 2003 at 4.74 and the

lowest in the year 2004 at 0.35. As per chain base method in 2005 it was 367.71

Standard Deviation 1.89, and Coefficient of variation was 77.14 percent.

347

Table No. 4.282


IT FOR INDIA & CONSTRUCTION FOR UAE ANALYSIS [INDIA & UAE]


Sr. No NAME OF COMPANIES MEANS

[SD/M*100] CV

1

INDIA


10.24 153.52

2 INFOSYS TECH LTD.

3.68 50.54

3 WIPRO LTD. 3.26 15.34

4

UAE


3.64 4.40


5.65 68.85


1.67 57.49

7 UNION PROPERTIES [UPP] 2.45 77.14 Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IT FOR INDIA AND CONSTRUCTION SECTOR FOR UAE) The means and coefficient of variation of Fixed Assets Turnover Ratio for Indian IT

Company and UAE Construction Companies are summaries in above table 4.282. It

is important to note that Indian IT companies HCL Technology Ltd. have higher ratio

and coefficient of variation and in constructor companies Dubai Development

Company have 5.65. And other companies have below this suggests the companies

needs to generate higher investment.

348

Table No.4.283

ICICI BANK INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS

YEARS Profit / Assets

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.15 100.00 100.00 -0.79

0.6241

2002 3.26 151.63 151.63

0.32 0.1024

2003 2.49 115.81 76.38 -0.45

0.2025

2004 2.97 138.13 119.28 0.03

0.0009

2005 4.16 193.48 140.07 1.22

1.4884

2006 2.49 115.81 59.86 -0.45

0.2025

2007 3.11 144.65 124.90 0.17

0.0289


Mean: - 2.94

S.D:- 0.38

C.V:- 12.93

Table No. 4.283 highlights the Return on Assets Ratio of “ICICI Bank India” for the

period of study. Return on Assets Ratio shown wide fluctuations, it is highest in 2005

at 4.16 and lowest at 2.15 in 2001. The average for the period is shown at 2.94 and

standard deviation 0.38. And the coefficient of variation is indicates at 13.93 percent.

349

Table No.4.284

CANARA BANK INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.55 100.00 100.00 -0.24

0.0576

2002 2.75 177.42 177.42

0.96 0.9216

2003 1.85 119.35 67.27 0.06

0.0036

2004 1.69 109.03 91.35 -0.10

0.01

2005 2.46 158.70 145.56 0.67

0.4489

2006 0.74 47.74 30.08 -1.05

1.1025

2007 1.49 96.12 201.35 -0.30

0.09


Mean: - 1.79

S.D:- 0.38

C.V:- 21.23 The above Table No. 4.284 presents the Return on Assets of Canara Bank India Ltd.

The ratio is widely fluctuating over the year. The lowest ratio was observed in 2006 at

0.74. It Return on Assets is highest at 2.75 in 2002. The average Return on Assets for

the period was at 1.79. It is observed that in three year 2002, 2003 and 2005 it is well

above its average.

350

Table No.4.285 STATE BANK OF INDIA

NET PROFIT TO TOTAL ASSETS RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.19 100.00 100.00 -0.07

0.0049

2002 0.56 294.74 294.74

0.30 0.09

2003 0.18 94.73 32.14 -0.08

0.0064

2004 0.16 84.21 88.89 -0.10

0.01

2005 0.21 110.52 131.25 -0.05

0.0025

2006 0.24 126.31 114.29 -0.02

0.0004

2007 0.32 168.42 133.33 0.06

0.0036


Mean: - 0.26

S.D:- 0.02

C.V:- 7.69 Table No. 4.285 shows the Return on Assets of State Bank of India for the period

2001 - 2007. The average Return on Assets for the period is shown at 0.26 in the

above table. Return on Assets highest at 0.32 and lowest at 0.16 in 2004 and Standard

deviation 0.02. The coefficient of variation at 7.69

351

Table No.4.286

ARAB BANK [ARABBANK] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.69 100.00 100.00 -0.02

0.0004

2002 0.78 113.04 113.04

0.07 0.0049

2003 0.35 50.72 44.87 -0.36

0.1296

2004 0.68 98.55 194.29 -0.03

0.0009

2005 0.91 131.88 133.82 0.20

0.04

2006 0.76 110.14 83.52 0.05

0.0025

2007 0.82 118.84 107.89 0.11

0.0121


Mean: - 0.71

S.D:- 0.027

C.V:- 3.80

As regards Arab Bank the average of the Return on Assets for the period is shown

0.71 in above Table No. 4.286 for the year 2001 -2007. The Return on Assets is

highest at 0.91 percent. And in the year 2003 it was lowest at 0.35 percent. The

standard deviation at 0.027 coefficient of variation at 3.80

352

Table No.4.287 ABU DHABI COMMERCIAL BANK [ADCB] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.35 100.00 100.00 -0.27

0.0729

2002 0.74 211.43 211.43

0.12 0.0144

2003 0.69 197.14 92.24 0.07

0.0049

2004 0.73 208.57 105.80 0.11

0.0121

2005 0.67 191.43 91.78 0.05

0.0025

2006 0.72 205.71 107.46 0.10

0.01

2007 0.44 125.71 61.11 -0.18

0.0324


Mean: - 0.62

S.D:- 0.02

C.V:- 3.22

Abu Dhabi Commercial Bank Return on Assets ratio details is presented in the above

Table No. 4.287.the Return on Assets is indicates that the average is at 0.62 percent

for the period under study. In the year 2001 and 2007 it is below the average. The

standard deviation at 0.62 and coefficient of variation is computed at 3.22 percent.

353

Table No.4.288

EMIRATES BANK [EBI] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.35 100.00 100.00 -1.13

1.2769

2002 0.75 214.29 214.29

-0.73 0.5329

2003 1.22 348.57 162.67 -0.26

0.0676

2004 2.54 725.71 208.20 1.06

1.1236

2005 0.63 180.00 24.80 -0.85

0.7225

2006 3.15 900.00 500.00 1.67

2.7889

2007 1.74 497.14 55.24 0.26

0.0676


Mean: - 1.48

S.D:- 0.94

C.V:- 63.51 Table No. 4.288 shows the Return on Assets Ratio of “Emirates Bank UAE for the

period 2001 - 2007. The average Return on Assets at 1.48. In the year 2006 the

highest ratio at 3.15, the standard deviation is computed at 0.94 and coefficient of


354

Table No.4.289

NATIONAL BANK OF ABU DHABI [NBAD] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.68 100.00 100.00 -0.61

0.3721

2002 1.84 109.52 109.52

-0.45 0.2025

2003 1.39 82.74 75.54 -0.90

0.81

2004 1.94 115.48 139.57 -0.35

0.1225

2005 2.67 158.93 137.63 0.38

0.1444

2006 3.69 200.54 138.20 1.40

1.96

2007 2.87 170.83 77.78 0.58

0.3364


Mean: - 2.29

S.D:- 0.11

C.V:- 4.80

Table No. 4.289 depict yearly the Return on Assets Ratio for “National Bank of Abu

Dhabi” for the period of study. The Return on Assets Ratio is indicated the average

of 2.29 for the period under study. In the year 2001 to 2004 it is below average and

Deviation of mean is negative during the year 2001 to 2004 and Coefficient of

Variation at 4.80 percent.

355

Table No. 4.290

RETURN ON ASSETS MEANS AND COEFFICIENT OF VARIATION



Sr. No

NAME OF BANKS MEANS [SD/M*100]

CV

1

INDIA

ICICI BANK

2.94

12.93

2 CANARA BANK

1.79

21.23


7.69

4

UAE


3.80


0.62

3.22


1.48

63.51


2.29

4.80

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (BANKING SECTOR)

The Table No. 4.290 summaries Mean of the Return on Assets Ratio for India and

UAE Banking Sector. The highest the Return on Assets Ratio is observed for ICICI

bank India and National Bank of Abu Dhabi. The increase in assets has two fold

effects. It results in increase in figure of total assets in balance sheet and secondly it

reduces the profit by way of charging depreciation as while computing Return on

Assets Ratio total assets are divided by net profit. The highest variability is found for

Emirates Bank UAE and Canara Bank India. Thus it is suggested that Banking Sector

of India and UAE have Investment opportunities.

356

Table No.4.291

AMBUJA CEMENTS LTD INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.11 100.00 100.00 -0.67

0.4489

2002 2.45 78.78 78.78

-1.33 1.7689

2003 5.68 182.63 231.84 1.90

3.61

2004 3.84 123.47 67.61 0.06

0.0036

2005 2.97 95.49 77.34 -0.81

0.6561

2006 3.67 118.00 123.57 -0.11

0.0121

2007 4.79 154.01 130.52 1.01

1.0201


Mean: - 3.78

S.D:- 1.07

C.V:- 28.31

The Table No. 4.291 highlight the yearly the Return on Assets of Ambuja Cement

Ltd. India. The Return on Assets ratio is widely fluctuating over the year. The lowest

the Return on Assets Ratio is observed in 2002 at 2.45. The Return on Assets Ratio is

highest at 5.68 in 2003. The average Return on Assets for the period at 3.78. It is

observed that in three year 2003, 2004 and 2007 it is well above the average. And

Standard Deviation 1.07, Coefficient of variation is computed at 28.31 percent.

357

Table No.4.292

DECCAN CEMENTS LTD INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.98 100.00 100.00 -1.37

1.8769

2002 2.65 133.83 133.84

-0.70 0.49

2003 3.68 185.85 138.87 0.33

0.1089

2004 2.44 123.23 66.30 -0.91

0.8281

2005 5.88 296.96 240.98 2.53

6.4009

2006 3.98 201.01 67.69 0.63

0.3969

2007 2.85 143.93 71.61 -0.50

0.25


Mean: - 3.35

S.D:- 1.48

C.V:- 44.18 Table No. 4.292 show the Return on Assets Ratio of “Deccan Cement Ltd. India” for

the period 2001 -2007 understudy. Return on Assets ratio shows wide fluctuation. The

Return on Assets Ratio is highest in 2005 at 5.88. The average of Return on Assets for

the period is at 3.35. It is well above its average in 2006 at 3.98 percent. The standard

deviation at 1.48 and coefficient variation was computed at 44.18 percent.

358

Table No.4.293

J K LAKSHMI CEMENTS LTD INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.25 100.00 100.00 -1.33

1.7689

2002 0.69 276.00 276.00

-0.89 0.7921

2003 0.98 392.00 142.03 -0.60

0.36

2004 0.96 384.00 97.96 -0.62

0.3844

2005 3.67 1468.00 382.29 2.09

4.3681

2006 2.56 1024.00 69.75 0.98

0.9604

2007 1.97 788.00 76.95 0.39

0.1521


Mean: - 1.58

S.D:- 1.26

C.V:- 79.75

The above Table No. 4.293 present the details of Return on Assets pertaining to ‘JK

Lakshmi Cement Ltd. India’ for the year 2001 - 2007. Return on Assets Ratio at its

peak in the year 2005 and 2006 a better position of the company in this two year. It is

lowest in 2001 at 0.25. The average the Return on Assets Ratio for the period under

study is computed at 1.58 percent. Standard deviation is at 1.26 and coefficient of


359

Table No.4.294

GULF CEMENT [GCEM] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.68 100.00 100.00 0.47

0.2209

2002 0.94 55.95 55.95

-0.27 0.0729

2003 0.26 15.47 27.66 -0.95

0.9025

2004 1.54 91.66 592.31 0.33

0.1089

2005 1.92 114.28 124.68 0.71

0.5041

2006 1.36 80.95 70.83 0.15

0.0225

2007 0.82 48.80 60.29 -0.39

0.1521


Mean: - 1.21

S.D:- 0.28

C.V:- 23.14 Table No. 4.294 shows the Return on Assets Ratio of “Gulf Cement UAE Company”

The average Return on Assets Ratio for the period is shown at 1.21. Return on Assets

Ratio is highest at 1.92 in 2005. On 03 occasions deviation from mean is negative.

Standard Deviation at 0.28 and Coefficient of Variation is computed 23.14 percent.

360




% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.86 100.00 100.00 0.59

0.3481

2002 0.91 48.92 48.92

-0.36 0.1296

2003 0.47 25.26 51.65 -0.80

0.64

2004 1.69 90.86 359.57 0.42

0.1764

2005 1.87 100.53 110.65 0.60

0.36

2006 1.39 74.73 74.33 0.12

0.0144

2007 0.72 38.70 51.80 -0.55

0.3025


Mean: - 1.27

S.D:- 0.28

C.V:- 22.05 The Table No. 4.295 above present the Return on Assets Ratio pertaining to National

Cement UAE Company. The highest Return on Assets Ratio for the period is shown

at 1.86 in 2001 base year of study. Since 2004 and 2005 it is above to the average.

The average Return on Assets at 1.27 and Standard Deviation 0.28. And the

Coefficient of Variation is computed at 22.05 percent.

361

Table No.4.296 SHARJAH CEMENT [SCIDC] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.85 100.00 100.00 0.68

0.4624

2002 0.34 18.38 18.38

-0.83 0.6889

2003 0.86 46.49 252.94 -0.31

0.0961

2004 1.91 103.24 222.09 0.74

0.5476

2005 1.06 57.30 55.50 -0.11

0.0121

2006 1.75 94.59 165.09 0.58

0.3364

2007 0.43 23.24 24.57 -0.74

0.5476


Mean: - 1.17

S.D:- 0.48

C.V:- 41.03 The net profit to total assets ratio of Sharjah Cement UAE Company Ltd. is presented

in Table No. 4.296 For the period of 2001 - 2007. Return on Assets Ratio average at

1.17 for the period under study. During the year 2002, 2003 and 2007 it is less than 1.

In four years it is above 1. The lowest at 0.34 is in the year 2002. The standard

deviation is at 0.48 and coefficient of variation is at 41.03 percent.

362

Table No. 4.297 RETURN ON ASSETS

MEANS AND COEFFICIENT OF VARIATION CEMENT SECTOR ANALYSIS

[INDIA &UAE] [Period of Study 2001 – 2007]


[SD/M*100] CV

1

INDIA

AMBUJA CEMENT LTD.

3.78

28.31


3.35

44.18


1.58

79.75

4

UAE

GULF CEMENT [GCEM]

1.21

23.14


1.27

22.05


1.17 41.03


(CEMENT SECTOR) The Means and Coefficient of Variation Return on Assets Ratio is summaries in

above Table No. 4.297 for the period under study 2001 – 2007. Indian and UAE

Sample Cement Companies, The performance of India Cement Companies is better as

compare to UAE. Hence, the above figures show that there is an investment

opportunities in Indian Cement Sector. The highest variability found in JK Lakshmi

Cement India and Sharjah Cement UAE. Thus it is suggested that investment

opportunities are present in cement sector of India.

363

Table No.4.298 NATIONAL INSUREANCE COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.64 100.00 100.00 -0.68

0.4624

2002 1.98 120.73 120.73

-0.34 0.1156

2003 2.64 160.97 133.33 0.32

0.1024

2004 1.97 120.12 74.62 -0.35

0.1225

2005 2.68 163.41 136.04 0.36

0.1296

2006 2.67 162.80 99.63 0.35

0.1225

2007 2.69 164.02 100.75 0.37

0.1369


Mean: - 2.32

S.D:- 0.17

C.V:- 7.33

The year – wise Return on Assets of “National Insurance India” is presented in Table

No. 4.298. In the year 2005 to 2007 Return on Assets Ratio noticed upward trend.

The average for the period is at 2.32 and Standard Deviation 0.17 and Coefficient of


364

Table No.4.299 ORIENTAL INSUREANCE COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.52 100.00 100.00 0.83

0.6889

2002 0.64 42.11 42.11

-0.05 0.0025

2003 0.69 45.39 107.81 -0.23

0.0529

2004 0.09 5.92 13.04 -0.60

0.36

2005 0.26 17.10 288.89 -0.43

0.1849

2006 1.35 88.81 519.23 0.66

0.4356

2007 0.28 18.42 20.74 -0.41

0.1681


Mean: - 0.69

S.D:- 0.27

C.V:- 39.13 Table No. 4.299 show the year wise Return on Assets Ratio of Oriental Insurance

India for the period of study. The Return on Assets Ratio shows wide fluctuations

during the study. Return on Assets Ratio is highest in the year 2001 at 1.52 and lowest

at 0.09 in 2004. The average Return on Assets is at 0.69. On two occasions it was

above 1. Standard deviation at 0.27 and coefficient of variation is at 39.13 percent.

365

Table No.4.300 UNITED INDIA INSURANCE COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.34 100.00 100.00 -0.70

0.49

2002 0.19 55.88 55.88

-0.85 0.7225

2003 0.17 50.00 89.47 -0.87

0.7569

2004 0.58 170.58 341.18 -0.46

0.2116

2005 1.94 570.58 334.48 0.90

0.81

2006 1.56 458.82 80.41 0.52

0.2704

2007 2.55 750.00 16346 1.51

2.2801


Mean: - 1.04

S.D:- 0.79

C.V:- 75.96

The Return on Assets Ratio for the year 2001 - 2007 of United India Insurance

Company is given in Table No. 4.300.The Return on Assets average at 1.04 for the

period under study. In the year 2001 to 2004 it is below the average. The standard

deviation is at 0.79 and coefficient of variation 75.96 percent

366

Table No.4.301

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.59 100.00 100.00 -1.61

2.5921

2002 1.67 105.03 105.03

-1.53 2.3409

2003 2.09 131.44 125.15 -1.11

1.2321

2004 2.17 136.47 103.83 -1.03

1.0609

2005 3.63 228.30 167.28 0.43

0.1849

2006 6.59 414.46 181.54 3.39

11.4921

2007 4.71 296.22 71.47 1.51

2.2801


Mean: - 3.20

S.D:- 3.03

C.V:- 94.69

The Table No. 4.301 shows Return On Assets of Abu Dhabi National Insurance

Company. The highest Return on Assets Ratio is in the year 2006 at 6.59 and lowest

at 1.59 in the year 2001. The average of Return on Assets is at 3.20 and Standard

Deviation of 3.03 and Coefficient of Variation is computed at 94.69 percent.

367

Table No.4.302 ALLIANCE INSURANCE [ALLIANCE] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.54 100.00 100.00 -0.83

0.6889

2002 1.26 81.82 81.82

-1.11 1.2321

2003 2.98 193.51 236.51 0.61

0.3721

2004 3.64 236.36 122.15 1.27

1.6129

2005 1.89 122.73 51.92 -0.48

0.2304

2006 3.47 225.32 183.60 1.10

1.21

2007 1.84 119.48 53.03 -0.53

0.2809


Mean: - 2.37

S.D:- 0.80

C.V:- 33.76

Table No. 4.302 show the Return on Assets Ratio of “Alliance Insurance UAE

Company” for the period under study 2001 – 2007. Return on Assets range in

between 1.26 and 3.64. The average of Return on Assets Ratio for the period is at 2.37

and Standard Deviation at 0.80 And the Coefficient of Variation as 33.76.

368

Table No.4.303 DUBAI NATIONAL INSURANCE [DNIR] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 7.45 100.00 100.00 1.33

1.7689

2002 8.69 116.64 116.64

2.57 6.6049

2003 3.39 45.50 39.01 -2.73

7.4529

2004 6.35 85.23 187.32 0.23

0.0529

2005 8.94 120.00 140.79 2.82

7.9524

2006 3.67 49.26 41.05 -2.45

6.0025

2007 4.35 58.38 118.53 -1.77

3.1329


Mean: - 6.12

S.D:- 4.71

C.V:- 76.96 The Table No. 4.303 shows Return on Assets for the year 2001 – 2007 of Dubai

National Insurance UAE Company. The average Return on Assets for the period was

6.12. The highest Return on Assets Ratio is observed in 2005 at 8.94 and the lowest in

the year 2003 at 3.39. The Standard Deviation is computed at 4.71 and Coefficient of

Variation is calculated at 76.96 percent.

369

Table No.4.304 UNITED INSURANCE [UIC] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.98 100.00 100.00 -1.19

1.4161

2002 2.00 101.01 101.01

-1.17 1.3689

2003 1.93 97.47 96.50 -1.24

1.5376

2004 3.85 194.44 199.48 0.68

0.4624

2005 2.58 130.30 67.01 -0.59

0.3481

2006 5.96 301.01 231.01 2.79

7.7841

2007 3.94 198.99 66.11 0.77

0.5929


Mean: - 3.17

S.D:- 1.93

C.V:- 60.88 Table No. 4.304 depicts the Return on Assets Ratio values for 2001 – 2007 of United

Insurance UAE Company. The highest Return on Assets Ratio is observed in the year

2006 at 5.96 and lowest is in the year 2003 at 1.93. The average of Return on Assets

3.17 and Standard Deviation 1.93, And Coefficient of Variation is 60.88 percent.

370

Table No. 4.305 RETURN ON ASSETS

MEANS AND COEFFICIENT OF VARIATION INSURANCE SECTOR ANALYSIS


Sr. No INSURANCE


CV

1

INDIA

NATIONAL INSURANCE 2.32

7.33

2 ORIENTAL INSURANCE 0.69

39.13


1.04

75.96

4

UAE


3.20 94.69


2.37

33.76


6.12

76.96


3.17

60.88


(INSURANCE SECTOR)

Table No. 4.305 highlight the Mean Return on Assets Ratio for Insurance Companies

under study. The examination reveals that the Insurance companies of India and UAE.

The highest Means is indicated at 6.12 pertaining to Dubai National Insurance UAE

Company. This is due to the fact that in recent years substantial increase in assets is

done by majority of UAE companies. The increasing in assets has two fold effects. It

results in increase in figure of total assets in balance sheet and secondly it reduces the

profit by way of charging depreciation as while computing return on assets ratio the

total assets are divided by net profit. Hence, the performance of UAE Insurance

Companies is better than India Companies.

371

Table No.4.306 CADILA HEALTHCARE PHARAMACEUTICAL

COMPANY OF INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.99 100.00 100.00 -0.28

0.0784

2002 0.57 57.58 57.58

-0.70 0.49

2003 0.91 91.92 159.65 0.36

0.1296

2004 0.67 67.68 73.63 -0.60

0.36

2005 1.68 169.70 250.75 0.41

0.1681

2006 2.15 217.17 127.98 0.88

0.7744

2007 1.95 196.97 90.70 0.68

0.4624


Mean: - 1.27

S.D:- 0.35

C.V:- 27.56 The Table No. 4.306 furnishes Return On Assets Ratio pertains to India

Pharmaceutical Company “Cadila Health Care” for the period 2001- 2007 The

average Return On Assets Ratio for period is indicated at 1.27. The highest Return on

Assets Ratio is recorded in the year 2006. The year 2002 has witnessed the lowest

Return on Assets Ratio of just 0.57. In the year 2007 the return of assets is shown as

1.95 percent.

372

Table No.4.307 CIPLA LTD PHARAMACEUTICAL COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.32 100.00 100.00 0.72

0.5184

2002 2.69 115.95 115.95

1.09 1.1881

2003 1.74 75.00 64.68 0.14

0.0196

2004 0.91 39.22 52.30 -0.69

0.4761

2005 0.83 35.78 91.21 -0.77

0.5929

2006 0.77 33.19 92.77 -0.83

0.6889

2007 1.96 84.84 254.55 0.36

0.1296


Mean: - 1.60

S.D:- 0.52

C.V:- 32.50 Table No. 4.307 states the year – wise Return on Assets Ratio of “Cipla Pharma Co.

Ltd. India” for the period 2001 to 2007 is presented in above table. The average

Return on Assets Ratio for the period is shown at 1.60. The Return on Assets Ratio

has somewhat improved in 2007. In the year 2004 and 2005 it is less than the average

due to losses suffered by the company.

373

Table No.4.308

SUN PHARMA PHARAMACEUTICAL COMPANY OF INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.64 100.00 100.00 0.40

0.16

2002 0.96 58.54 58.54

-0.28 0.0784

2003 0.78 47.56 81.25 -0.46

0.2116

2004 0.53 32.32 67.95 -0.71

0.5041

2005 1.76 107.32 332.08 0.52

0.2704

2006 2.82 171.95 160.23 1.58

2.4964

2007 0.25 15.24 8.87 -0.99

0.9801


Mean: - 1.24

S.D:- 0.67

C.V:- 54.03

Table No. 4.308 the year – wise Return on Assets Ratio of “Sun Pharma” India

Company for the period of 2001 – 2007. The Return on Assets Ratio is highest in

2006 at 2.82. In 2007 it is lowest to 0.25 as a result of net losses suffered by the

company. Standard deviation is 0.67 and coefficient of variation at 54.03 percent.

374

Table No.4.309 GULF MEDICAL PROJECTS [GMPC]

COMPANY (UAE) NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.65 100.00 100.00 2.08

4.3264

2002 0.42 11.51 11.51

-1.15 1.3225

2003 0.96 26.30 228.57 -0.61

0.3721

2004 1.83 50.14 190.63 0.26

0.0676

2005 1.67 45.75 91.26 0.10

0.01

2006 1.88 51.51 112.57 0.31

0.0961

2007 0.63 17.26 33.51 -0.94

0.8836


Mean: - 1.57

S.D:- 1.01

C.V:- 64.33 The Return on Assets Ratio of “Gulf Medical” UAE Company for the year 2001 –

2007 is given in Table No. 4.309. The average of Return on Assets for the period is

shown 1.57. The Return on Assets Ratio somewhat improved from 2004 to 2006. It is

all time low in 2002 at 0.42 as a result of net losses suffered by the company.

375

Table No.4.310

GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 4.25 100.00 100.00 2.61

6.8121

2002 0.87 20.47 20.47

-0.77 0.5929

2003 0.63 14.82 72.41 -1.01

1.0201

2004 1.42 33.41 225.40 -0.22

0.0484

2005 1.77 41.64 124.65 0.13

0.0169

2006 1.63 38.35 92.09 -0.01

0.0001

2007 0.94 22.11 57.67 -0.70

0.49


Mean: - 1.64

S.D:- 1.28

C.V:- 78.05 Table No. 4.310 provides the year – wise Return on Assets Ratio of “Gulf

Pharmaceutical” UAE Company for the period of study. The Return on Assets Ratio

is highest in base year during the period of study 2001 at 4.25. The average Return on

Assets Ratio for the period under study is computed at 1.6 percent. Standard

Deviation is 1.28 and coefficient of variation at 78.05 percent.

376

Table No. 4.311

RETURN ON ASSETS MEANS AND COEFFICIENT OF VARIATION PHARAMACEUTICAL SECTOR ANALYSIS




CV

1

INDIA

CADILA HEALTH CARE

1.27 27.56

2 CIPLA LTD.

1.60 32.50

3 SUN PHARMA. 1.24 54.03

4

UAE


1.57 64.33


1.64 78.05


CONCLUSION (PHARMACEUTICAL SECTOR) Mean and Variation of Return on Assets Ratio is presents in the Table No. 4.311 For

Pharmaceutical Companies of India and UAE. Out of Five Pharma companies from

India and UAE, Cipla Ltd. India and Gulf Pharma UAE [JULPHUR] have shown

ratio respectively 1.60 and 1.64. Highest variability is observed in UAE Gulf Pharma

Companies [JULPHAR] and in India Sun Pharma. It could be suggested that

Investment opportunities is present in India Pharma companies.

377

Table No.4.312 TATA COMMUNICATION INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 0.28

0.0784

2002 0.98 62.82 62.82

-0.30 0.09

2003 0.63 40.38 64.29 -0.65

0.4225

2004 1.78 114.10 282.54 0.50

0.25

2005 1.49 95.51 83.71 0.21

0.0441

2006 0.69 44.23 46.31 -0.59

0.3481

2007 1.88 120.51 272.46 0.60

0.36


Mean: - 1.28

S.D:- 0.23

C.V:- 17.97

The Return on Assets Ratio of “Tata Communication Company” India is presented in

Table No. 4.312 For the period of 2001 – 2007. The Return on Assets Ratio show

wide fluctuations. The Return on Assets Ratio is observed highest in 2007 at 1.88 and

is lowest at 0.63 in 2003. The average Return on Assets Ratio is shown at 1.28, and

Standard Deviation is 0.23 Coefficient of Variation at 17.97. Percent

378

Table No.4.313

BHARTI AIRTEL LTD INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ---- ----- ------ -----

------

2002 0.04 100.00 100.00

-0.73 0.5329

2003 0.06 150.00 150.00 -0.71

0.5041

2004 1.63 4075.00 2716.67 0.86

0.7396

2005 1.22 3050.00 74.85 0.45

0.2025

2006 1.30 3250.00 106.56 0.53

0.2809

2007 0.38 950.00 29.23 -0.39

0.1521


Mean: - 0.77

S.D:- 0.40

C.V:- 51.95 Table No. 4.313 depicts the Return on Assets Ratio values for year 2002 – 2007 for

Bharti Airtel India Company Ltd. The Data for the year 2001 is not available. It

indicated an Average Return on Assets for the period at 0.77 for the period under

study. In three year it was above 1 and it was more than average. Standard Deviation

is 0.40 and Coefficient of variation at 51.95 percent.

379

Table No.4.314

MTNL TELECOMMUNICATION COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.18 100.00 100.00 1.35

1.8225

2002 0.69 31.65 31.65

-0.66 0.4356

2003 0.79 36.24 114.49 -0.56

0.3136

2004 1.88 86.24 237.97 0.53

0.2809

2005 1.41 64.68 75.00 0.06

0.0036

2006 0.58 26.61 41.13 -0.77

0.5929

2007 1.95 89.45 336.21 0.60

0.36


Mean: - 1.35

S.D:- 0.54

C.V:- 40.00

The above Table No. 4.314 gives the year – wise Return on Assets Ratio of “MTNL

India” for the period 2001 – 2007. The Return on Assets Ratio show wide fluctuations

during the period of study. The Return on Assets Ratio is highest in 2001 base year at

2.18 and lowest at 0.58 in 2006. The Average for the period was 1.35 and Standard

Deviation 0.54. And Coefficient of variation was at 40.00 percent.

380

Table No.4.315

ETISALAT TELCOM UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.29 100.00 100.00 -0.89

0.7921

2002 1.96 675.86 675.86

0.78 0.6084

2003 0.76 262.06 38.78 -0.42

0.1764

2004 1.89 651.72 248.68 0.71

0.5041

2005 1.37 475.41 72.49 0.19

0.0361

2006 1.29 444.82 94.16 0.11

0.0121

2007 0.71 244.82 55.04 -0.47

0.2209


Mean: - 1.18

S.D:- 0.34

C.V:- 28.81 The above Table No. 4.315 reveals Return on Assets Ratio of “Etisalat Telecom”

UAE company The Average Return on Assets for the period is shown at 1.18 in the

above. Return on Assets Ratio is highest at 1.96 in the year 2002 and lowest at 0.71.

During the period of study Return on Assets Ratio shows wide fluctuation and

Standard Deviation is 0.34. And the Coefficient of Variation is computed as at 28.81

percent.

381

Table No. 4.316


TELECOMMUNICATION SECTOR ANALYSIS [INDIA & UAE]


Sr. No TELECOM COMPANIES MEANS

[SD/M*100] CV

1

INDIA

TATA COMMUNICATION 1.28

17.97

2 BHARTI AIRTEL LTD

0.77 51.95

3 MTNL. INDIA 1.35

40.00

4 UAE ETISALAT TELCOM UAE 1.18

28.81


CONCLUSION

(TELECOMMUNICATION SECTOR) Table No. 4.316 provide a summary of the Means and Coefficient of Variation of

Return on Assets Ratio for India and UAE telecom companies. Out of four telecom

companies from India and UAE, MTNL and Bharti Airtel, India record high return on

Assets with 1.35 and 1.28 respectively. This indicates better utilisation of assets by

these companies have highest variability found it indicated fluctuation during the

period of study. The highest Return on Assets ratio and is indicated at 1.35 pertaining

to MTNL India.

382

Table No.4.317

STEEL AUTHORITY OF INDIA LTD NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.56 100.00 100.00 0.14

0.0196

2002 0.75 48.07 48.07

-0.67 0.4489

2003 0.88 56.41 117.33 -0.54

0.2916

2004 1.95 125.00 221.59 0.53

0.2809

2005 2.30 147.43 117.95 0.88

0.7744

2006 0.67 42.94 29.13 -0.75

0.5625

2007 1.89 121.15 282.09 0.47

0.2209


Mean: - 1.42

S.D:- 0.37

C.V:- 26.06

The above Table No. 4.317 provides the Net Profit to Total Assets Ratio of “Steel

Authority of India Ltd” for the period of study. The Return on Assets Ratio average is

1.42 for the period under study. It is highest in 2005 at 2.30. In three year it was above

1 it was all time low in 2002 at 0.75 and Standard Deviation at 0.37 and Coefficient

of Variation at 26.06.

383

Table No.4.318

STEEL COMPANY GUJARAT LTD INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.74 100.00 100.00 0.42

0.1764

2002 0.86 49.43 49.43

-0.46 0.2116

2003 0.91 52.29 105.81 -0.41

0.1681

2004 1.58 90.80 173.63 0.26

0.0676

2005 1.96 112.64 124.05 0.64

0.4096

2006 0.25 14.36 12.76 -1.07

1.1449

2007 1.95 112.06 780.00 0.63

0.3969


Mean: - 1.32

S.D:- 0.37

C.V:- 28.03 Table No. 4.318 highlight the Return on Assets Ratio of “Steel Company Gujarat

Ltd” for the period 2001 – 2007. The Return on Assets Ratio shows wide fluctuation.

It is highest in 2005 and lowest at 0.25 in 2006. The Average Return on Assets Ratio

for the period is shown at 1.32. In 2007 it is well above its average and Standard

Deviation 0.37 Coefficient of Variation was 28.03 percent.

384

Table No.4.319

BOULDER STEEL [BGD] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 7.98 100.00 100.00 5.88

34.5744

2002 0.74 9.27 9.27

-1.36 1.8496

2003 0.35 4.39 47.30 -1.75

3.0625

2004 1.77 22.18 505.71 -0.33

0.1089

2005 1.49 18.67 84.18 -0.61

0.3721

2006 1.61 20.18 108.05 -0.49

0.2401

2007 0.82 10.28 50.93 -1.28

1.6384


Mean: - 2.10

S.D:- 5.97

C.V:- 284.67 The Table No. 4.319 present the Net Profit to Total Assets Ratio of “Boulder Steel

Company of UAE” for the period 2001 - 2007. It indicates above an average of 2.10

in the 2001 base year during study since 2002 it is shown a downward trend till 2007.

Standard Deviation of 5.97 and Coefficient of Variation is 284.67.

385

Table No.4.320

JAZEERA STEEL [ATMI] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 7.28 100.00 100.00 5.27

27.7729

2002 0.19 2.61 2.61

-1.82 3.3124

2003 0.64 8.79 336.84 -1.37

1.8769

2004 1.83 25.14 285.94 -0.18

0.0324

2005 1.42 19.51 77.60 -0.59

0.3481

2006 1.87 25.69 131.69 -0.14

0.0196

2007 0.88 12.09 47.06 -1.13

1.2769


Mean: - 2.01

S.D:- 4.94

C.V:- 245.77. The above Table No. 4.320 reflects the Return on Assets pertains to “Jazeera Steel

Company of UAE” The average Return on Assets for the period is indicated at 2.01.

The highest Return on Assets Ratio is recorded in the year 2001. The year 2002 has

witnessed the lowest ratio is recorded just 0.19. In the year 2003 and 2007 it is less

than the average due to losses suffered by the company.

386

Table No. 4.321


IRON AND STEEL SECTOR ANALYSIS [INDIA & UAE]


Sr. No IRON & STEEL


CV

1

INDIA


1.42 26.06


1.32 28.03

3

UAE

BOULDER STEEL

2.10 284.67


2.01 245.77


CONCLUSION (IRON AND STEEL SECTOR) Table No. 4.321 highlights Means and Variation of Return on Assets Ratio for Iron

and Steel Companies India and for UAE is present in the above table. The highest

Return on Assets Ratio is observed in case of Boulder Steel at 2.10 for the period of

study. However, the variation too is highest for the Iron and Steel Company,

indicating the high fluctuations in the Return on Assets Ratio over the period of study.

The performance of UAE Iron and Steel Companies is better as compare to India

Companies. Hence, we may say that investment opportunities between India and

United Arab Emirate (UAE) in Iron and steel sector are present.

387

Table No.4.322

H C L TECHNOLOGYIES LTD IT COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.88 100.00 100.00 -0.10

0.01

2002 1.02 115.91 115.91

0.04 0.0016

2003 0.83 94.31 81.37 -0.15

0.0225

2004 0.91 103.40 109.64 -0.05

0.0049

2005 1.54 175.00 169.64 0.56

0.3136

2006 0.69 78.40 44.81 -0.29

0.0841

2007 1.09 123.86 157.97 0.11

0.0121


Mean: - 0.98

S.D:- 0.06

C.V:- 6.12

Table No. 4.322 above show the Return on Assets Ratio of “HCL Technologies Ltd”

for the period 2001 – 2007. The Return on Assets Ratio is highest at 1.54 in 2005 and

it is at lowest at 0.88 in the 2001 base year as shown in above table. The average ratio

is 0.98 and Standard Deviation at 0.06, the coefficient of variation at 6.12 percent.

388

Table No.4.323

INFOSYS TECH LTD IT COMPANY OF INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.85 100.00 100.00 -0.31

0.0961

2002 0.63 74.12 74.12

-0.53 0.2809

2003 0.91 107.06 144.44 -0.25

0.0625

2004 0.79 92.94 86.81 -0.37

0.1369

2005 2.45 288.24 310.13 1.29

1.6641

2006 1.95 229.41 79.39 0.79

0.6241

2007 0.56 65.88 28.72 -0.60

0.36


Mean: - 1.16

S.D:- 0.46

C.V:- 39.66 The Table No. 4.323 presents the Return on Assets of “Infosys Tech Ltd” for the

period 2001 – 2007. The Average Return on Assets is shown as 1.16 percent; the

examination of this ratio reveals that since 2005 and 2006 the ratio is above the

average. In 2007, it is lowest as result of net losses suffered by the company and

Standard Deviation at 0.46. The coefficient of variation is at 39.66 percent.

389

Table No.4.324

WIPRO LTD IT COMPANY OF INDIA NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.23 100.00 100.00 -0.49

0.2401

2002 0.59 256.52 256.52

-0.13 0.0169

2003 0.89 386.95 150.85 0.17

0.0289

2004 1.25 543.47 140.45 0.53

0.2809

2005 0.56 243.47 44.80 -0.16

0.0256

2006 0.89 386.95 158.93 0.17

0.0289

2007 0.65 282.60 73.03 -0.07

0.0049


Mean: - 0.72

S.D:- 0.09

C.V:- 12.50 The Return on Assets Ratio of “Wipro Ltd India” for the period 2001 – 2007 is given

in Table No. 4.324 above. The Return on Assets indicates wide variations. In 2004, it

is highest at 1.25 since than it showed declining trend. The average Return on Assets

Ratio for the period is shown at 0.72. On four occasion Deviation of mean negative.

Standard Deviation at 0.09. The coefficient of variation is 12.50 percent.

390

Table No.4.325




% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.09 100.00 100.00 -0.14

0.0196

2002 0.06 66.67 66.67

-0.17 0.0289

2003 0.07 77.78 116.67 -0.16

0.0256

2004 0.03 33.33 42.86 -0.20

0.04

2005 0.08 88.89 266.67 -0.15

0.0225

2006 1.14 1266.67 1425.00 0.91

0.8281

2007 0.19 211.11 16.67 -0.04

0.0016


Mean: - 0.23

S.D:- 0.14

C.V:- 60.87

The year - wise net profit to total assets ratio of “Abu Dhabi National Company for

Building Material” is presents in Table No. 4.325 for the period 2001 – 2007 under

study. It indicates an average of 0.23. The lowest Return on Assets Ratio at 0.03 is in

the year 2004. During entire period of study except 2006, it is less than 1. In 2006 it is

above 1 and more than average Standard Deviation 0.14. Coefficient of variation is

60.87 percent.

391

Table No.4.326

DUBAI DEVELOPMENT COMPANY [DDC] UAE NET PROFIT TO TOTAL ASSETS

RETURN ON ASSETS


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 6.38 100.00 100.00 1.11

1.2321

2002 8.19 128.37 128.37

2.92 8.5264

2003 5.15 80.72 62.88 -0.12

0.0144

2004 4.09 64.11 79.42 -1.18

1.3924

2005 0.98 15.36 23.96 -4.29

18.4041

2006 3.07 48.12 313.27 -2.20

4.84

2007 9.06 142.01 295.11 3.79

14.3641


Mean: - 5.27

S.D:- 6.97

C.V:- 132.26

The above Table No. 4.326 reveals the yearly Return on Assets of “Dubai

Development Company” for the year 2001 to 2007. The average Return on Assets

Ratio is at 5.27 and Standard Deviation at 6.97 and Coefficient of Variation at 132.26.

The highest Return on Assets Ratio is observed in 2007 at 9.06 and the lowest in 2005

at 0.98. The above Return on Assets Ratio observed in declining trend.

392

Table No.4.327




% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.69 100.00 100.00 -0.11

0.0121

2002 0.72 104.35 104.35

-0.08 0.0064

2003 0.69 100.00 95.83 -0.11

0.0121

2004 0.45 65.22 65.22 -0.35

0.1225

2005 0.63 91.30 140.00 -0.17

0.0289

2006 1.49 215.94 236.51 0.68

0.4761

2007 0.96 139.13 64.43 0.16

0.0256


Mean: - 0.80

S.D:- 0.10

C.V:- 12.50

The Table No. 4.327 above shows the Net profit Total Assets Ratios of “Emaar

Properties” for the period 2001 – 2007. It indicates an average for the study 0.80, for

the period under study. Since 2001, The Return on Assets Ratio showed below 1

except 2006, Standard Deviation 0.10 and Coefficient of Variation 12.50 percent.

393

Table No.4.328




% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.45 100.00 100.00 -0.59

0.3481

2002 0.36 80.00 80.00

-0.68 0.4624

2003 0.81 180.00 225.00 -0.23

0.0529

2004 1.93 428.88 238.27 0.89

0.7921

2005 1.88 417.77 97.41 0.84

0.7056

2006 1.11 246.66 59.04 0.07

0.04

2007 0.77 171.11 69.37 -0.27

0.0729


Mean: - 1.04

S.D:- 0.35

C.V:- 33.65 Table No. 4.328 given above details of Return on Assets Ratio of “Union Properties

UAE companies” for the period 2001 - 2007. The highest Return on Assets Ratio

shown in 2004 at 1.93 percent. As per fixed base method in 2004 it observe more than

400, Standard Deviation 0.32, Coefficient of variation was 33.65 percent.

394

Table No. 4.329


IT OF INDIA & CONSTRUCTION OF UAE ANALYSIS [INDIA &UAE]


Sr.No

NAME OF COMPANIES MEANS [SD/M*100]

CV

1

INDIA


0.98 6.12

2 INFOSYS TECH LTD.

1.16 39.66

3 WIPRO LTD. 0.72 12.50

4

UAE


0.23 60.87


5.27 132.26


0.80 12.50


1.40 33.65

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IT FOR INDIA AND CONSTRUCTION SECTOR FOR UAE) The Table No. 4.329 is summaries Indian IT and UAE Construction companies

Means and Coefficient Variation of Return on Asset Ratio, out of seven companies of

IT and Construction. The highest means is observed in case of Dubai Development

Company UAE at 5.27 for the period of study. However, the variation too is highest

for the UAE Construction Company, indicating the high fluctuations in the Return on

Assets Ratio over the period of study. During the period of study this two Booming

sector is recorded of Indian IT and UAE Construction. It suggests that there is an

investment opportunities in both sector of India and UAE.

395

Table No.4.330 ICICI BANK INDIA

NET PROFIT TO CAPITAL EMPLOYED RETURN ON CAPITAL EMPLOYED

YEARS Return on

Capital Employed

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.53 100.00 100.00 -0.29

0.0841

2002 1.64 64.82 64.82

-1.18 1.3924

2003 2.49 98.41 151.83 -0.33

0.1089

2004 3.56 140.71 142.97 0.74

0.5476

2005 2.97 117.39 83.43 0.15

0.0225

2006 3.15 124.50 106.06 0.33

0.1089

2007 3.46 136.75 109.84 0.64

0.4096


Mean: - 2.82

S.D:- 0.38

C.V:- 13.48 The year – wise details of Return on Capital Employed (ROCE) of ICICI Bank from

2001 to 2007 is present in Table No. 4.330. The average at 2.82. The Return on

Capital Employed (ROCE) is highest at 3.56 for the year 2004 and the lowest at 1.64

in 2002. And as per Chain base method the growth rate of Return on Capital

Employed (ROCE) is 151.83 percent for the year 2003. The average of the (ROCE)

for the period is 2.82 and standard deviation is recorded at 0.38. And the coefficient of

variation is indicates at 13.48 percent.

396

Table No.4.331

CANARA BANK INDIA NET PROFIT TO CAPITAL EMPLOYED

RETURN ON CAPITAL EMPLOYED

YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.53 100.00 100.00 0.46

0.2116

2002 2.78 109.88 109.88

0.71 0.5041

2003 0.97 38.33 34.89 -0.10

1.21

2004 1.41 55.73 145.36 -0.66

0.4256

2005 1.65 65.21 117.02 -0.42

0.1764

2006 2.42 95.65 146.67 0.35

0.1225

2007 2.78 109.88 114.88 0.71

0.5041


Mean: - 2.07

S.D:- 0.45

C.V:- 21.74. Table No. 4.331 presents year – wise details of the Return On Capital Employed of

Canara Bank India Ltd for the period under study. The average Return on Capital

Employed (ROCE) from 2001 to 2007 is computed at 2.07. The highest Return on

Capital Employed (ROCE) is recorded in the year two consecutive years 2002 and

2007. As per chain base method on Return on Capital Employed (ROCE) was highest

at 146.67 percent in 2006. The standard deviation is computed at 0.45 and coefficient

of variation is calculated at 21.74 percent.

397

Table No.4.332

STATE BANK OF INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 9.16 100.00 100.00 3.93

15.4449

2002 2.26 24.67 24.67

-2.97 8.8209

2003 2.12 23.14 93.81 -3.11

9.6721

2004 7.12 77.72 335.85 1.89

3.521

2005 8.13 88.75 114.19 2.90

8.41

2006 3.14 34.27 38.62 2.09

4.3681

2007 4.72 51.52 150.32 -0.51

0.2601


Mean: - 5.23

S.D:- 7.22

C.V:- 138.05

The yearly Return on Capital Employed (ROCE) of “State Bank of India” is given in

Table No. 4.332 for the period 2001 – 2007 under study. The average recorded is at

5.23 percent. The highest Return on Capital Employed (ROCE) is observed in 2001.

It is lowest in 2003. For three year it is more than the average. This suggests better

utilisation of capital employed in the year 2001, 2004 and 2005. The average Return

on Capital Employed for the period was 5.23 and Standard deviation 7.22 the

coefficient of variation at 138.05

398

Table No.4.333

ARAB BANK [ARABBANK] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.56 100.00 100.00 -2.18

4.7524

2002 0.69 44.23 44.23

-3.05 9.3025

2003 4.85 310.89 702.90 1.11

1.2321

2004 2.36 151.28 48.66 -1.38

1.9044

2005 4.95 317.30 209.75 1.21

1.4641

2006 5.45 349.35 110.10 1.71

2.9241

2007 6.35 407.05 116.51 2.61

6.8121


Mean: - 3.74

S.D:- 4.05

C.V:- 108.29

The Return on Capital Employed (ROCE) for the period 2001 – 2007 of “Arab Bank

UAE” is given in Table No. 4.333. The average of the Return on Capital Employed

for the period at 3.74 percent. It is highest in 2007 at 6.35. For the year 2005 it is

showing improvement and it is above the average. On three occasions Deviation from

mean is negative. The standard deviation at 4.05 and coefficient of variation is


399

Table No.4.334 ABU DHABI COMMERCIAL BANK [ADCB] UAE


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.55 100.00 100.00 -1.78

3.1684

2002 3.15 123.53 123.53

-1.18 1.3924

2003 8.56 335.69 271.75 4.23

17.8929

2004 4.55 178.43 53.15 0.22

0.0484

2005 5.68 222.75 124.84 1.35

1.8225

2006 3.68 144.31 64.79 -0.65

0.4225

2007 2.15 84.31 58.42 -2.18

4.7524


Mean: - 4.33

S.D:- 4.21

C.V:- 97.23 The above Table No. 4.334 shows the year wise Return on Capital Employed (ROCE)

of “Abu Dhabi Commercial Bank UAE”. The average ROCE from 2001 to 2007 is

computed at 4.33. The highest return on capital employed ROCE is recorded in year

2005 at 5.68. And the lowest Return on Capital Employed ROCE is observed in the

year 2007 at 2.15 percent. As per fixed base method the return on capital employed

(ROCE) was highest at 335.69 percent and Standard Deviation 4.21. Coefficient of


400

Table No.4.335

EMIRATES BANK [EBI] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.64 100.00 100.00 -1.21

1.4641

2002 1.88 114.63 114.63

-0.97 0.9409

2003 2.67 162.80 142.02 -0.18

0.0324

2004 3.66 223.17 137.08 0.81

0.6561

2005 2.45 149.39 66.94 -0.40

0.16

2006 2.48 212.20 142.04 0.63

0.3969

2007 4.22 257.32 121.26 1.37

1.8769


Mean: - 2.85

S.D:- 0.79

C.V:- 27.68 Return on Capital Employed (ROCE) of “Emirates Bank UAE” for the period 2001 –

2007 is present in Table No. 4.335. The average Return on Capital Employed is at

2.85.The standard deviation is computed at 0.79 and coefficient of variation is


401

Table No.4.336

NATIONAL BANK OF ABU DHABI [NBAD] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.35 100.00 100.00 -0.28

0.0784

2002 1.69 125.19 125.19

0.06 0.0036

2003 1.78 131.85 105.33 0.15

0.0225

2004 0.95 70.37 53.37 -0.68

0.4624

2005 2.74 202.96 288.42 1.11

1.2321

2006 1.38 102.22 50.36 -0.25

0.0625

2007 1.58 117.04 114.49 -0.05

0.0025


Mean: - 1.63

S.D:- 0.27

C.V:- 16.69 The above Table No. 4.336 shows the yearly Return on Capital Employed of National

Bank of National Bank of Abu Dhabi UAE. The average Return on Capital Employed

from 2001 to 2007 is computed at 1.63. The highest Return on Capital Employed is

recorded in the 2005 at 2.7 percent. And the lowest Return on Capital Employed is

observed in the year 0.95 percent. As per fixed base method the Return on Capital

Employed was highest at 202.96 and Standard Deviation is at 0.27. The Coefficient


402

Table No. 4.337 RETURN ON CAPITAL EMPLOYED

MEANS AND COEFFICIENT OF VARIATION BANKING SECTOR ANALYSIS


Sr. No NAME OF BANKS MEANS

[SD/M*100] CV

1

INDIA

ICICI BANK

2.82

13.48

2 CANARA BANK

2.07

21.74


138.05

4

UAE


108.29


4.33

97.23


2.85

27.68


1.63

16.69

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (BANKING SECTOR) The Table No. 4.337 above is summaries the figures of Return on Capital Employed

Ratio [ROCE] Means and Coefficient Variation of India and UAE Banking Sector.

The highest Return on capital Employed Ratio is observed in case of State Bank of

India at 5.23 for the period of study. However, the variation too is highest for the

bank, indicating the high fluctuations in the ROCE over the period of study. Further

reveals that there are three Banks having Return on Capital Employed Ratio is higher.

The higher the ratio the more efficient use of the capital employed by the banks. It

suggests that there is an investment opportunity in banking sector of India and UAE.

403

Table No.4.338

AMBUJA CEMENTS LTD INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.54 100.00 100.00 -1.03

1.0609

2002 3.64 143.30 143.31

0.07 0.0049

2003 3.45 135.82 94.78 -0.12

0.0144

2004 4.68 184.25 135.65 1.11

1.2321

2005 3.98 156.69 85.04 0.41

0.1681

2006 2.79 109.84 70.10 -0.78

0.6084

2007 3.97 156.29 142.29 0.40

0.16


Mean: - 3.57

S.D:- 2.36

C.V:- 66.11

The Return on Capital Employed (ROCE) of “Ambuja Cement India Company Ltd”

is present in Table No. 4.338 for the period under study 2001 to 2007. Return on

Capital Employed is highest in 2004 at 4.68 percent. In 2002 with growth rate of

143.31 percent as per the chain base method, the average Return on Capital Employed

for the period is 3.57 and Standard Deviation is 2.36, Coefficient of variation at 66.11

percent.

404

Table No.4.339

DECCAN CEMENTS LTD INDIA NET PROFIT TO CAPITAL EMPLOYED

RETURN ON CAPITAL EMPLOYE D

YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.55 100.00 100.00 0.09

0.0081

2002 0.95 37.25 37.25

-1.51 2.2801

2003 2.98 116.86 213.68 0.52

0.2704

2004 1.45 56.86 48.66 -1.01

1.0201

2005 6.45 252.94 444.83 3.99

15.92

2006 0.98 38.43 15.19 -1.48

2.1904

2007 1.89 74.11 192.86 -0.57

0.3249


Mean: - 2.46

S.D:- 3.14

C.V:- 127.64 The Table No. 4.339 above depicts clearly the Return on Capital Employed (ROCE)

of “Deccan Cement Ltd. India”. The average of Return on Capital Employed (ROCE)

from 2001 to 2007 is computed at 2.46. The highest Return on Capital Employed

(ROCE) is recorded in the year 2005 at 6.45 percent. As per fixed base method Return

on Capital Employed (ROCE) is highest at 252.94 percent and Standard Deviation at

3.14 percent. The coefficient of variation at 127.64 percent.

405

Table No.4.340

J K LAKSHMI CEMENTS LTD INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.45 100.00 100.00 0.11

0.0121

2002 1.56 63.67 63.67

-0.78 0.6084

2003 1.64 66.93 105.13 -0.70

0.49

2004 1.67 68.16 101.83 -0.67

0.4489

2005 3.54 144.48 211.98 1.20

1.44

2006 2.64 107.75 74.58 0.30

0.09

2007 2.89 117.95 109.47 0.55

0.3025


Mean: - 2.34

S.D:- 0.48

C.V:- 20.51 Table No. 4.340 states year – wise Return On Capital Employed of JK Lakshmi

Cement Ltd India Company for 2001 – 2007. The average is at 2.34 percent and

Standard deviation at 0.48 respectively. The Return on Capital Employed (ROCE)

ratio ranged in between 1.56 and 3.54 percent. Since 2005, it shows increasing trend.

Standard deviation is 0.48 and coefficient of variation at 20.51 percent.

406

Table No.4.341

GULF CEMENT [GCEM] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.63 100.00 100.00 -0.90

0.81

2002 2.79 106.08 106.08

-0.74 0.5476

2003 4.94 187.83 177.06 1.41

1.9881

2004 3.68 139.92 74.49 0.15

0.0225

2005 5.41 205.70 147.01 1.88

3.5344

2006 3.19 121.29 58.96 -0.34

0.1156

2007 2.10 79.84 65.83 -1.43

2.0449


Mean: - 3.53

S.D:- 1.29

C.V:- 36.54

The Return on Capital Employed (ROCE) of Gulf Cement UAE Company for the

period 2001 – 2007 is presented in Table No. 4.341. The average Return on Capital

Employed is indicated at 3.53 percent for the entire period. The highest is observed

during 2005. The lowest Return on capital Employed (ROCE) is at 2.10. On four

Occasions the deviation from mean is negative. Coefficient of Variation was 36.54.

407

Table No.4.342

NATIONAL CEMENT [NCC] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.09 100.00 100.00 -1.51

2.2801

2002 2.18 104.31 104.31

-1.42 2.0164

2003 4.38 209.57 200.92 0.78

0.6084

2004 5.07 242.58 115.75 1.47

2.1609

2005 6.06 289.95 119.53 2.46

6.0516

2006 2.86 136.84 47.19 -0.24

0.5476

2007 2.61 124.88 91.26 -0.99

0.9801


Mean: - 3.60

S.D:- 2.09

C.V:- 58.06 The Return on Capital Employed (ROCE) of National Cement UAE Company is

presented in Table No. 4.342 above. The average Return on Capital Employed was

3.60. The highest ratio is recorded at 6.06 percent for the year 2005 and the lowest

Return on Capital Employed (ROCE) is at 2.09 percent. Since 2002 it is showing a

significant improvement and it reached the peak in the year 2005, Standard Deviation

2.09, and the Coefficient of Variation is computed at 58.06.

408

Table No.4.343

SHARJAH CEMENT [SCIDC] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.83 100.00 100.00 -0.90

0.81

2002 2.42 132.24 132.24

-0.31 0.0961

2003 2.63 143.71 108.68 -0.10

0.01

2004 2.77 151.36 105.32 0.04

0.0016

2005 2.94 160.65 106.14 0.21

0.0441

2006 3.83 209.28 130.27 1.10

1.21

2007 2.74 149.72 71.54 0.01

0.0001


Mean: - 2.73

S.D:- 0.31

C.V:- 11.36 Table No. 4.343 above shows the Return on Capital Employed (ROCE) “Sharjah

Cement UAE company Ltd” for the period 2001 to 2007. The Return on Capital

Employed (ROCE) is quite high in 2006 at 3.83 and the lowest is observed at 1.83

percent for 2001. The average Return on Capital Employed for the period indicates at

2.73 and Standard Deviation at 0.31. And the Coefficient of Variation at 11.36

409

Table No. 4.344

RETURN ON CAPITAL EMPLOYED MEANS AND COEFFICIENT OF VARIATION



Sr.No

NAME OF CEMENT COMPANIES

MEANS [SD/M*100]

CV

1

INDIA

AMBUJA CEMENT LTD.

3.57

66.11


2.46

127.64


2.34

20.51

4

UAE

GULF CEMENT [GCEM]

3.53

36.54


3.60

58.06


2.73

11.36

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (CEMENT SECTOR) Table No. 4.344 above summaries the Means of Return on Capital Employed Ratio

from India and UAE cement companies. Two companies of India and one companies

of UAE have shown the means very close. The higher return on capital employed at

3.60 of National Cement UAE. The higher Return on Capital Employed indicated

better profitability in comparison with the investment due to modernisation and

economic utilization of funds and overall investment in business. It is therefore called

as overall profitability ratio. The highest variability is observed in Deccan Cement

India it indicating the high fluctuations in the ROCE over the period of study. So it is

suggest that there is an investment opportunities present in Cement Sector of India

and UAE

410

Table No.4.345 NATIONAL INSURANCE INDIA


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.64 100.00 100.00 -0.16

0.0256

2002 2.68 101.51 101.51

-0.12 0.0144

2003 3.48 131.81 129.85 -0.68

0.4624

2004 2.68 101.51 77.01 -0.12

0.0144

2005 1.25 47.34 46.64 -1.55

2.4025

2006 6.28 237.87 502.40 3.48

12.1104

2007 0.64 24.24 10.19 -2.16

4.6656


Mean: - 2.80

S.D:- 2.81

C.V:- 100.36

Table No. 4.345 above reveals the Return on Capital Employed of “National

Insurance India” for the period 2001 – 2007. It is highest at 6.28 in 2006. Return on

Capital Employed (ROCE) is fluctuations year to year. The average for the period is

2.80 and Standard Deviation is at 2.81 and Coefficient of Variation at calculated at

100.36 percent.

411

Table No.4.346

ORIENTAL INSURANCE INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 3.45 100.00 100.00 1.28

1.6384

2002 0.98 28.41 28.41

-1.19 1.4161

2003 2.71 78.55 276.53 0.54

0.2916

2004 4.35 126.08 160.52 2.18

4.7524

2005 1.58 45.79 36.32 -0.59

0.3481

2006 1.34 38.84 84.81 -0.83

0.6889

2007 0.79 22.89 58.96 -1.38

1.9044


Mean: - 2.17

S.D:- 1.58

C.V:- 72.81

The year – wise Return on Capital Employed (ROCE) of “Oriental Insurance India”

for the period 2001 – 2007 is shown in the Table No. 4.346 above. The average

Return on Capital Employed for the period is computed as 2.17 percent. It is highest

in 2001 and it is on declining till 2007. Except 2003 and 2004 it is showing

improvement and it is near and above average. The standard deviation at 2.17 and

coefficient variation is computed at 72.81 percent.

412

Table No.4.347

UNITED INDIA INSURANCE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 7.59 100.00 100.00 3.90

15.21

2002 1.39 18.18 18.18

-2.31 5.3361

2003 2.26 29.77 163.77 -1.43

2.0449

2004 1.59 20.94 70.35 -2.10

4.41

2005 2.58 33.99 162.26 -1.11

1.2321

2006 8.46 111.46 327.91 4.77

22.753

2007 1.98 26.08 23.40 -1.71

2.9241


Mean: - 3.69

S.D:- 7.70

C.V:- 208.67 Table No. 4.347 gives the Return on Capital Employed (ROCE) of “United India

Insurance” for the period 2001 to 2007. The average Return on Capital Employed

(ROCE) is quite high in 2006 at 8.46 percent. From 2002 it improved slightly and

reached 2.58 percent in 2005. The average for the period is shown at 3.69 percent.

The standard deviation at 7.70 and coefficient of variation at 208.67 percent.

413

Table No.4.348

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.09 100.00 100.00 -2.12

4.4944

2002 4.08 374.31 374.31

0.87 0.7569

2003 1.69 155.04 41.42 -1.52

2.3104

2004 3.48 319.26 205.92 0.27

0.0729

2005 4.09 375.22 117.53 0.88

0.7744

2006 5.07 465.13 123.96 1.86

3.4596

2007 3.03 277.98 59.76 -0.18

0.0324


Mean: - 3.21

S.D:- 1.70

C.V:- 52.96 Table No. 4.348 depicts the Return on Capital Employed (ROCE) of “Abu Dhabi

National Insurance Company” for the period 2001 – 2007 under study. The average of

Return on Capital Employed at 3.21 and Standard Deviation at 1.70 and Coefficient

of Variation is at 52.96, As per Fixed base in 2006 the ratio was more than 400.

414

Table No.4.349

ALLIANCE INSURANCE [ALLIANCE] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 3.69 100.00 100.00 -1.43

2.0449

2002 4.87 131.98 131.98

-0.25 0.0625

2003 5.71 154.74 117.25 0.59

0.3481

2004 3.66 99.19 64.10 -1.46

2.1316

2005 8.55 231.71 233.61 3.43

11.7649

2006 5.44 147.43 63.63 0.32

0.1024

2007 3.97 107.59 72.98 -1.15

1.3225


Mean: - 5.12

S.D:- 2.54

C.V:- 49.61 Table No. 4.349 reveals the yearly Return on Capital Employed (ROCE) Ratio of

“Alliance Insurance UAE Company”. During the study 2001 to 2007 average is 5.12.

The highest Return on Capital Employed (ROCE) is shown in 2005 at 8.55 and

lowest has in the year 2004 at 3.66 on four year deviation of mean is negative.

Standard Deviation is at 2.54 and coefficient Variation is to be determines at 49.61

percent.

415

Table No.4.350

DUBAI NATIONAL INSURANCE [DNIR] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 7.36 100.00 100.00 3.80

14.44

2002 5.39 73.23 73.23

1.83 3.3489

2003 4.18 56.79 77.55 0.62

0.3844

2004 3.65 49.59 87.32 0.09

0.0081

2005 2.56 34.78 70.14 -1.00

1.00

2006 0.39 5.29 15.23 -3.17

10.0489

2007 1.39 18.88 356.41 -2.17

4.7089


Mean: - 3.56

S.D:- 4.85

C.V:- 136.24 The above Table No. 4.350 indicates the Return on Capital Employed (ROCE) of

“Dubai National Insurance” for the period of study. The highest Return on Capital

Employed (ROCE) is in the year 2001 base year and the lowest in the year 2006 at

0.39. The Return on Capital Employed (ROCE) Ratio is shown a declining trend. The

average Return on Capital Employed (ROCE) is at 3.56. The Standard Deviation is


416

Table No.4.351

UNITED INSURANCE [UIC] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.63 100.00 100.00 -3.06

9.3636

2002 2.96 181.60 181.60

-1.73 2.9929

2003 3.65 223.93 123.31 -1.04

1.0816

2004 5.63 345.40 154.25 0.94

0.8836

2005 5.96 365.64 105.86 1.24

1.6129

2006 3.64 223.31 61.07 -1.05

1.1025

2007 9.36 574.23 257.14 4.67

21.8089


Mean: - 4.69

S.D:- 5.55

C.V:- 118.34 Table No. 4.351 states the Return on Capital Employed (ROCE) of “United Insurance

UAE” for the period 2001 – 2007 under study The highest Return on Capital

Employed (ROCE) is in the year 2007 at 9.36 and lowest is in the year 2001 at 1.63.

The average of Return on Capital Employed 4.69, during the period of 2001 to 2007

the Return on Capital Employed (ROCE) is seen increasing trend. The standard

deviation is at 5.55 and coefficient of variation at 118.34 percent.

417

Table No. 4.352




Sr. No INSURANCE COMPANIES MEANS

[SD/M*100] CV

1

INDIA

NATIONAL INSURANCE

2.80

100.36


2.17

72.81

3 UNITED INDIA INSURANCE. 3.69 208.67

4

UAE


3.21

52.96


5.12 49.61


3.56

136.24

7 UNITED INSURANCE [UIC] 4.69

118.34

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (INSURANCE SECTOR)

Table No. 4.352 summarises the average of Return on Capital Employed Ratio of

sample Insurance companies from India and UAE. The highest return on capital

employed is at 5.12 of Alliance Insurance UAE. The higher return on capital

employed indicated better profitability and the highest variability found in United

India Insurance and Dubai National Insurance UAE. While lowest variation was

recorded for Alliance Insurance UAE and Orient Insurance India. Hence, the

performance of UAE Insurance Sector is better in comparison with the Indian

Insurance sector.

418

Table No.4.353



YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 16.21 100.00 100.00 3.94

15.5236

2002 13.54 83.53 83.53

1.27 1.6129

2003 15.46 95.37 114.18 3.19

10.1761

2004 9.56 58.98 61.84 -2.71

7.3441

2005 11.67 71.99 122.07 -0.60

0.36

2006 10.57 65.21 90.57 -1.70

2.89

2007 8.91 54.97 84.30 -3.36

11.2896


Mean: - 12.27

S.D:- 7.03

C.V:- 57.29

Table No. 4.353 shows the year wise Return on Capital Employed (ROCE) of “Cadila

Health Care” for the period of study. Return on Capital Employed (ROCE) is quite

high in 2001 which is base year of study at around 16.21 percent. From 2003 it

improved slightly and reaches 15.46 percent. The average Return on Capital

Employed for period is at 12.27. The Standard Deviation is 7.03 and Coefficient of


419

Table No.4.354

CIPLA LTD PHARAMACEUTICAL COMPANY OF INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 13.59 100.00 100.00 1.45

2.1025

2002 11.54 84.92 84.92

-0.60 0.36

2003 16.75 123.25 145.15 4.61

21.2521

2004 10.75 79.10 64.18 -1.39

1.9321

2005 9.58 70.49 89.12 -2.56

6.5536

2006 8.57 63.06 89.46 -3.57

12.7449

2007 14.25 104.86 166.28 2.11

4.4521


Mean: - 12.14

S.D:- 7.06

C.V:- 58.15 The year – wise details of Return on Capital Employed (ROCE) for the period 2001 –

2007 of “Cipla Pharma Co. Ltd India” is present in Table No. 4.354. The Average

Return on Capital Employed for the period under the study is 12.14, the highest

Return on Capital Employed (ROCE) is observed in 2003. Standard Deviation is

computed at 7.06 and Coefficient of variation at 58.15 percent.

420

Table No.4.355

SUN PHARMA INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 11.52 100.00 100.00 -1.16

1.3456

2002 16.35 141.93 141.93

3.67 13.4689

2003 9.65 83.77 59.02 -3.03

9.1809

2004 10.56 91.67 109.43 -2.12

4.4944

2005 13.46 116.84 127.46 0.78

0.6084

2006 17.98 156.08 133.58 5.30

28.09

2007 9.29 80.64 51.67 -3.39

11.4921


Mean: - 12.68

S.D:- 9.81

C.V:- 77.37

Table No. 4.355 present the Return on Capital Employed (ROCE) of “Sun Pharma”

India for the period under study 2001 – 2007 The average Return on Capital

Employed is at 12.68. The lowest is observed during 2003 and 2007. Standard

Deviation is at 9.81. The coefficient of variation was recorded at 77.37 percent.

421

Table No.4.356

GULF MEDICAL PROJECTS [GMPC] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.36 100.00 100.00 -0.77

0.5929

2002 6.35 269.07 269.07

3.22 10.3684

2003 2.14 90.68 33.70 -0.99

0.9801

2004 2.65 112.29 123.83 -0.48

0.2304

2005 2.94 124.58 110.94 -0.19

0.0361

2006 2.87 121.61 97.62 -0.26

0.0676

2007 2.66 112.71 92.68 -0.47

0.2209


Mean: - 3.13

S.D:- 1.79

C.V:- 57.19 Table No. 4.356 highlight the Return on Capital Employed (ROCE) of “Gulf

Medical” UAE company for the period 2001 to 2007. The Return on Capital

Employed (ROCE) is highest at 6.35 in 2002 and it was all time low. On six occasions

the deviation from mean is negative. The mean for the period is computed at 3.13.

Standard Deviation is 1.79 and Coefficient of Variation at 57.19 percent.

422

Table No.4.357

GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 7.66 100.00 100.00 4.20

17.64

2002 3.64 47.52 47.52

0.18 0.0324

2003 2.56 33.42 70.33 -0.90

0.81

2004 2.87 37.47 112.11 -0.59

0.3481

2005 2.31 30.16 80.49 -1.15

1.3225

2006 2.68 34.99 116.02 -0.78

0.6084

2007 2.55 33.29 95.15 -0.91

0.8281


Mean: - 3.46

S.D:- 3.08

C.V:- 89.02

The above Table No. 4.357 shows the Return on Capital Employed (ROCE) of “Gulf

Pharmaceutical” UAE. The Average Return on Capital Employed (ROCE) for the

period under study 3.46. The highest return on capital employed (ROCE) is observed

in 2001. But on five occasions the deviation from mean is negative. The mean for the

period is computed at 89.02. Standard Deviation is 3.08 and Coefficient of Variation

at 89.02 percent.

423



[INDIA &UAE] [Period of Study 2001 – 2007]

Sr. No PHARMA COMPANIES MEANS

[SD/M*100] CV

1

INDIA

CADILA HEALTH CARE

12.27 57.29

2 CIPLA LTD.

12.14 58.15

3 SUN PHARMA. 12.68 77.37

4

UAE


3.13 57.19

5

GULF PHARMACEUTICAL INDUSRIES [JULPHAR]

3.46 89.02

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (PHARMACEUTICAL SECTOR) Table No. 4.358 gives the average Return on Capital Employed (ROCE) for

Pharmaceutical companies India and UAE. In Indian Pharma Companies the Ratio of

Return on Capital Employed is higher than UAE Pharma Companies. The higher

Return on Capital Employed indicates better profitability in comparison with the

investment due to modernization and economic utilisation of the funds and overall

business and climate. It is therefore called as overall profitability Ratio. The highest

variability is found in Gulf Pharmaceutical Industries UAE and Sun Pharma India.

424

Table No.4.359 TATA COMMUNICATION INDIA


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 3.65 100.00 100.00 1.12

1.2544

2002 2.58 70.68 70.68

0.05 0.0025

2003 2.59 70.96 104.26 0.06

0.0036

2004 2.61 71.51 100.77 0.08

0.0064

2005 2.69 73.70 100.00 0.16

0.0256

2006 1.25 34.25 46.47 -1.28

1.6384

2007 2.36 64.66 188.80 -0.17

0.0289


Mean: - 2.53

S.D:- 0.42

C.V:- 16.60

The Return on Capital Employed (ROCE) of “Tata Communication” India is

presented in Table No. 4.359 pertains to period from 2001 to 2007, The Average

Return on Capital Employed (ROCE) of 2.53 and Standard Deviation was 0.42

respectively. The Return on Capital Employed (ROCE) Ratio ranged between 1.25

and 2.69 Coefficient of Variation 16.60.

425

Table No.4.360 BHARTI AIRTEL LTD INDIA


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 ---- ----- ------ -----

------

2002 2.64 100.00 100.00

-3.04 9.2416

2003 1.96 74.24 74.24 -3.72

13.8384

2004 8.65 327.65 441.33 2.97

8.8209

2005 4.78 181.06 55.26 -0.90

0.81

2006 6.35 240.53 132.85 0.67

0.4489

2007 9.75 369.32 153.54 4.07

16.5649


Mean: - 5.68

S.D:- 8.29

C.V:- 145.95 The Bharti Airtel Ltd Return on Capital Employed (ROCE) for the period 2002 to

2007 is presents in the above Table No. 4.360. The data for the year 2001 is not

available. In 2002 and 2003 Return on Capital Employed (ROCE) is below the

average. The Return on Capital Employed (ROCE) is highest in 2007. This suggests

that the company is utilizing efficiency in Return on Capital Employed (ROCE). It is

low all time low at 1.96 in 2003 which recovered significantly. In 2004 with growth

rate of 441.33 percent as per the chain base method

426

Table No.4.361 MTNL TELECOMMUNICATION COMPANY OF INDIA


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 5.68 100.00 100.00 2.06

4.2436

2002 6.48 114.08 114.08

2.86 8.1796

2003 2.72 47.89 41.98 -0.90

0.81

2004 1.92 33.80 7059 -1.70

2.89

2005 1.88 33.10 97.92 -1.74

3.0276

2006 2.93 51.58 155.85 -0.69

0.4761

2007 3.76 66.20 128.33 0.14

0.0196


Mean: - 3.62

S.D:- 0.85

C.V:- 23.48 The Table No. 4.361 shows Return on Capital Employed (ROCE) of “MTNL India”

Ltd. For the period year 2001 – 2007 under study. The average on Return on Capital

Employed (ROCE) from 2001-2007 is indicated as 3.62 percent. It is highest at 6.48

in 2002 and lowest at 1.88 in 2005. As per chain base methods the highest growth rate

is observed in 2006 at 155.85. Standard Deviation is 0.85 and Coefficient of Variation

is at 23.48 percent.

427

Table No.4.362 ETISALAT TELCOM UAE


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 5.44 100.00 100.00 0.98

0.9604

2002 3.16 58.09 58.09

-1.30 1.69

2003 2.55 46.88 80.70 -1.91

3.6481

2004 3.99 73.35 156.47 -0.47

0.2209

2005 3.47 63.79 86.97 -0.99

0.9801

2006 5.43 99.82 156.48 0.97

0.9409

2007 7.18 131.99 132.23 2.72

7.3984


Mean: - 4.46

S.D:- 2.26

C.V:- 50.67 Table No. 4.362 shows Return on Capital Employed (ROCE) of “Etisalat Telecom”

UAE company for the period 2001 to 2007. Return on Capital Employed (ROCE) is

quite high in 2007 at 7.18 percent. It is lowest at 2.55 percent during 2003. From 2006

it improved slightly and reached 5.43 percent. The average for the period is shown as

4.46 percent. Standard Deviation at 2.26 and Coefficient of Variation at 50.67

percent.

428




Sr. No TELECOM


CV

1

INDIA

TATA COMMUNICATION

2.53

16.60

2 BHARTI AIRTEL LTD

5.68

145.95

3 MTNL. INDIA 3.62

23.48


4.46

50.67


CONCLUSION (TELECOMMUNICATION SECTOR) The above Table No. 4.363 summaries the figure of Means and Variation for Return

on Capital Employed Ratio for India and UAE Telecom Companies. The highest

Return on Capital Employed Ratio was observed in case of Bharti Airtel at 5.68 for

the period of study. However, the variation too is highest for the Bharti Airtel,

indicating the high fluctuations in the Return on Capital Employed Ratio over the

period of study. The higher Return on Capital Employed indicted better profitability.

The profitability as shown by return on capital in all India telecom companies reveals

that it is on increasing trend. In some year due to net losses the return on capital

employed was shown as low.

429

Table No.4.364

STEEL AUTHORITY OF INDIA LTD NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 6.88 100.00 100.00 1.50

2.25

2002 9.77 142.01 142.01

4.39 19.2721

2003 3.54 51.45 36.23 -1.84

3.3856

2004 2.44 35.46 68.93 -2.94

8.6436

2005 2.45 35.61 100.41 -2.93

8.5849

2006 9.35 135.90 381.63 3.97

15.7609

2007 3.25 47.23 34.76 -2.13

4.5369


Mean: - 5.38

S.D:- 8.92

C.V:- 165.80 Table No. 4.364 shows the Net Profit on Capital Employed Ratio of “Steel Authority

of India Ltd” for the period 2001 – 2007 under study. The Average Return on Capital

Employed for the period at 5.38. The highest Ratio in 2002 at 9.77 it mean more

efficient is the use of the capital employed. For five year it is more than the average.

This suggests better utilisation of capital employed, Coefficient of Variation at 165.80

percent.

430

Table No.4.365

STEEL COMPANY GUJARAT LTD INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 3.45 100.00 100.00 0.63

0.3969

2002 2.78 80.58 80.58

-0.04 0.0016

2003 1.63 47.24 58.63 -1.19

1.4161

2004 2.94 85.21 180.37 0.12

0.0144

2005 2.78 80.57 94.56 -0.04

0.0016

2006 3.66 106.08 131.65 0.84

0.7056

2007 2.54 73.62 69.40 -0.28

0.0784


Mean: - 2.82

S.D:- 0.37

C.V:- 13.12 The Table No. 4.365 above Return on Capital Employed (ROCE) figures pertains to

“Steel Company Gujarat Ltd” for the period 2001 - 2007. The Return on Capital

Employed (ROCE) is highest at 3.66 in 2006. On four occasions the deviation from

mean is negative. The mean for the period is computed at 2.82. The Standard

Deviation is computed at 0.37 and Coefficient of Variation is 0.37 percent.

431

Table No.4.366

BOULDER STEEL [BGD] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.08 100.00 100.00 -1.85

3.4225

2002 2.35 112.98 112.98

-1.58 2.4964

2003 4.94 237.50 210.21 1.01

1.0201

2004 5.73 275.48 115.99 1.80

3.24

2005 6.84 328.85 119.37 2.91

8.4681

2006 2.94 141.35 42.98 -0.99

0.9801

2007 2.67 128.37 90.82 -1.26

1.5876


Mean: - 3.93

S.D:- 3.03

C.V:- 77.10 The Table No. 4.366 states the Return on Capital Employed (ROCE) of “Boulder

Steel Company of UAE” It is lowest at 2.08 in 2001 and its peak in subsequent year in

2003 to 2005. This shows an excellent utilization of capital employed. The average

Return on Capital Employed (ROCE) for the period is shown at 3.93 and Standard

Deviation at 3.03 and Coefficient of Variation is 77.10 percent.

432

Table No.4.367

JAZEERA STEEL [ATMI] UAE NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.56 100.00 100.00 -1.09

1.1881

2002 2.22 86.72 86.72

-1.43 2.0449

2003 4.15 162.11 186.94 0.50

0.25

2004 5.11 199.61 123.13 1.46

2.1316

2005 6.19 241.80 121.14 2.54

6.4516

2006 2.74 107.03 44.26 -0.91

0.8281

2007 2.64 103.13 96.35 -1.01

1.0201


Mean: - 3.65

S.D:- 1.98

C.V:- 54.25 The “Jazeera Steel Company of UAE” Return on Capital Employed (ROCE) for the

period 2001 to 2007 is presents in above Table No. 4.367. In the year 2005 Return on

Capital Employed (ROCE) Ratio is 6.19 which are more than average for the period.

In 2003 it is peak in subsequent. The average Return on Capital Employed (ROCE)

for the period is 3.65 and Standard Deviation at 1.98 and Coefficient of Variation is

indicates at 54.25 percent.

433

Table No.4.368


IRON & STEEL SECTOR ANALYSIS [INDIA & UAE]


Sr. No IRON & STEEL


CV

1

INDIA


5.38 165.80


2.82 13.12

3



3.65 54.25


CONCLUSION (IRON AND STEEL SECTOR) The above Table No. 4.368 summaries the figures of Means and Variation, Return on

Capital Employed Ratio [ROCE] India and UAE steel companies. The highest ROCE

was observed in case of Steel Authority of India at 5.38 for the period of study.

However, the variation too is highest for the Steel Authority of India, indicating the

high fluctuations in the ROCE over the period of study. Ratio pertaining Boulder

Steel and Jazeera Steel UAE at 3.93 and 3.65 respectively, this is due to efficiently the

long-term funds of owners and creditors are utilized. It suggests that there is an

investment opportunities present in Iron and Steel Sector of India and UAE.

434

Table No.4.369

H C L TECHNOLOGYIES LTD IT COMPANY OF INDIA NET PROFIT TO CAPITAL EMPLOYED

RETURN ON CAPITAL EMPLOYE D

YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 7.89 100.00 100.00 -1.04

1.0816

2002 6.35 80.48 80.48

-2.58 6.6564

2003 4.56 57.79 71.81 -4.37

19.0969

2004 3.85 48.79 84.43 -5.08

25.8064

2005 11.85 150.19 307.79 2.92

8.5264

2006 12.56 159.18 105.99 3.63

13.1769

2007 15.45 195.81 123.01 6.52

42.5104


Mean: - 8.93

S.D:- 16.69

C.V:- 186.90 The above Table No. 4.369 shows the Return on Capital Employed (ROCE) of “HCL

Technologies Ltd” The average Return on Capital Employed (ROCE) for the period

under study is 8.93 percent. The highest Return on Capital Employed (ROCE)

observed in 2007 and lowest in 2004. From 2005 it is more than the average. This

suggests better utilisation of capital employed since 2005. The standard deviation is

16.69 and Coefficient of variation at 186.90

435

Table No.4.370

INFOSYS TECH LTD IT COMPANY OF INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS

RETURN ON CAPITAL

EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 52.36 100.00 100.00 38.41

1475.3281

2002 5.96 11.38 11.38

-7.99 63.8401

2003 7.98 15.24 133.89 -5.97

35.6409

2004 9.61 18.35 120.43 -4.34

18.8356

2005 11.63 22.21 121.02 -2.32

5.3824

2006 4.21 8.04 36.20 -9.74

94.8676

2007 5.96 11.38 141.57 -7.99

63.8401


Mean: - 13.95

S.D:- 251.10

C.V:- 1800.00 Table No. 4.370 above shows Return on Capital Employed (ROCE) of “ Infosys Tech

Ltd” for the period 2001 to 2007. The Return on Capital Employed is highest in 2001

base year and the lowest is recorded in 2002 at 5.96, the Return on Capital Employed

(ROCE) has wide fluctuating from year to year. This suggest decline in the efficiency

of utilisation of capital employed. The average of Return on Capital Employed

(ROCE) is 13.95. Standard Deviation is 251.10 and Coefficient of Variation is


436

Table No.4.371

WIPRO LTD IT COMPANY OF INDIA NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 9.56 100.00 100.00 3.19

10.1761

2002 2.32 24.27 24.27

-4.05 16.4025

2003 7.32 76.57 315.52 0.95

0.9025

2004 8.32 87.03 113.66 1.95

3.8025

2005 9.32 97.49 112.02 2.95

8.7025

2006 4.54 47.49 48.71 -1.83

3.3489

2007 3.21 33.58 70.70 -3.16

9.9856


Mean: - 6.37

S.D:- 7.62

C.V:- 119.62

The Table No. 4.371 shows the Return on Capital Employed (ROCE) of “Wipro Ltd

India” for the period under study 2001 – 2007. The average Return on Capital

Employed Ratio for the period is computed at 6.37 percent. It is highest in 2001 at

9.56 which are base year for study and it went on declining till last. For 2003 it is

showing improvement and it is above the average, Standard Deviation is 7.62 and

coefficient variation at 119.62 percent.

437

Table No.4.372

ABU DHABI NATIONAL COMPANY FOR BUILDING MATERIALS [BILDCO]


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 8.46 100.00 100.00 3.33

11.089

2002 2.63 31.09 31.09

-2.50 6.25

2003 3.48 41.13 132.32 -1.65

2.7225

2004 2.48 29.31 71.26 -2.65

7.0225

2005 3.16 37.35 127.42 -1.97

3.8809

2006 9.63 113.83 304.75 4.50

20.25

2007 6.09 71.99 63.24 0.96

0.9216


Mean: - 5.13

S.D:- 7.45

C.V:- 145.22

The above Table No. 4.372 furnishes Return on Capital Employed (ROCE) pertain to

“Abu Dhabi National company for Building Material”. The average of Return on

Capital Employed (ROCE) for the period is indicated at 5.13. The highest Return on

Capital Employed (ROCE) is recorded in the year 2006. The year 2004 has witnessed

the lowest ratio. In 2007 it is quite good and acceptable. The standard deviation at

7.45 and coefficient of variation is at 145.22 percent.

438

Table No.4.373

DUBAI DEVELOPMENT COMPANY [DDC] NET PROFIT TO CAPITAL EMPLOYED


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 1.26 100.00 100.00 -4.23

17.8929

2002 3.06 242.86 242.86

-2.43 5.9049

2003 5.36 425.40 175.16 -0.13

0.0169

2004 6.75 535.71 125.93 1.26

1.5876

2005 8.19 650.00 121.33 2.70

7.29

2006 5.09 403.97 62.15 -0.40

0.16

2007 8.77 696.03 172.30 3.28

10.7584


Mean: - 5.49

S.D:- 6.23

C.V:- 113.48 Table No. 4.373 states the Return on Capital Employed (ROCE) of “Dubai

Development Company” for the year 2001 to 2007. The average Return on Capital

Employed (ROCE) at 5.49 and Standard Deviation is 6.23 and Coefficient of

Variation is 113.48. On 04 occasions deviation of mean was negative. The highest X2

was observed in 2001 at 17.8929.

439

Table No.4.374

EMAAR PROPERTIES [EMAAR] CONSTRUCTION COMPANIES OF UAE


YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.36 100.00 100.00 -2.57

6.6049

2002 4.19 177.54 177.54

-0.74 0.5476

2003 9.15 387.71 218.38 4.22

17.8084

2004 7.09 300.42 77.49 2.16

4.6656

2005 6.59 279.23 92.95 1.66

2.7556

2006 3.09 130.93 46.89 -1.84

3.3856

2007 2.09 88.55 67.64 -2.84

8.0656


Mean: - 4.93

S.D:- 6.26

C.V:- 126.98

The Table No. 4.374 states the Return on Capital Employed (ROCE) of “Emaar

Properties” for the period 2001 to 2007 is presents. The Return on Capital Employed

(ROCE) is quite high in 2003 at around 9.15 percent. It is lowest at 2.09 percent

during 2007. Which is declining trend is observed, the average for the study 4.93,

Standard Deviation is 6.26 and Coefficient of Variation at 126.98 percent.

440

Table No.4.375



YEARS RETURN ON

CAPITAL EMPLOYED

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From Mean (X)

X2

2001 2.11 100.00 100.00 -3.04

9.2416

2002 3.41 161.61 161.61

-1.74 3.0276

2003 0.74 35.07 21.70 -4.41

19.4481

2004 6.34 300.47 856.76 1.19

1.4161

2005 7.18 340.28 113.25 2.03

4.1209

2006 8.19 388.15 114.07 3.04

9.2416

2007 8.14 385.78 99.39 2.99

8.9401


Mean: - 5.15

S.D:- 7.92

C.V:- 153.79 The above Table No. 4.375 shows the Return on Capital Employed (ROCE) of

“Union Properties UAE companies” The Average for the period under study at 5.15,

the highest ratio is observed in 2007 at 8.14 and lowest is in 2003 at 0.74. From 2004

onwards Return on Capital Employed (ROCE) on increasing trend, Standard

Deviation is at 7.92; on two consequently year 2001 and 2006 X2 was observed at

9.2416. Coefficient of variation at 153.79 percent.

441


MEANS AND COEFFICIENT OF VARIATION IT OF INDIA & CONSTRUCTION OF UAE ANALYSIS


Sr. No


CV

1

INDIA


8.93 186.90

2 INFOSYS TECH LTD.

13.95 1800.00

3 WIPRO LTD. 6.37 119.62

4

UAE


5.13 145.22


5.49 113.48


4.93 126.98

7 UNION PROPERTIES [UPP] 5.15 153.79 Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates.

CONCLUSION (IT FOR INDIA AND CONSTRUCTION SECTOR FOR UAE) Means and Coefficient of Variation of Return on Capital Employed Ratio [ROCE] is

summaries in above Table No. 4.376. The highest ROCE is observed in case of

Indian IT Company an Infosys tech Ltd at 13.95 the variation too is higher it indicates

the high fluctuation in ROCE and in Construction Dubai Development Company at

5.49, is observed highest means and the higher variability observed in Union

Properties UAE. In IT Company of India and Construction Companies of UAE both

need an investment because the inefficient use of the Capital Employed by both sector

India and UAE.

442

Table No.4.377 ICICI BANK INDIA

NET PROFIT TO NET SALES NET PROFIT MARGIN

YEARS Net Profit Margin

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.65 100.00 100.00 0.22

0.0484

2002 1.68 46.03 46.03

-1.75 3.0625

2003 2.44 66.84 145.24 -0.99

0.9801

2004 3.68 100.82 150.82 0.25

0.0625

2005 4.71 129.04 127.99 1.28

1.6384

2006 3.16 86.57 67.09 -0.27

0.0729

2007 4.71 129.04 149.05 1.28

1.6384


Mean: - 3.43

S.D:- 1.07

C.V:- 31.20

Net Profit Margin of ICICI Bank India is shown in the above Table No. 4.377 from

2001 to 2007. The average margin for the period under study is computed as 3.43

only and standard deviation is 1.07. And the coefficient of variation is computed at

31.20 percent. For two consecutive financial years that is 2005 and 2007 the ratio is

indicated at 4.71 percent. The deviation from mean was negative for three year.

443

Table No.4.378

CANARA BANK INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT

MARGIN % CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 11.45 100.00 100.00 5.13

26.317

2002 9.85 86.03 86.03

3.53 12.461

2003 8.46 73.88 85.89 2.14

4.5796

2004 2.46 21.48 29.08 -3.86

14.89

2005 6.13 53.53 249.19 -0.19

0.0361

2006 3.46 30.21 56.44 -2.86

8.1796

2007 2.47 21.57 71.39 -3.85

14.823


Mean: - 6.32

S.D:- 11.61

C.V:- 183.70

The figures of Net Profit Margin pertaining to Canara Bank India are shown in above

Table No. 4.378 for the period under study 2001 – 2007. In 2001 the Net Profit

Margin is above the average and was all time high at 11.45. The average for the

period under study is 6.32 and coefficient of variation is calculated at 183.70 percent.

444

Table No.4.379

STATE BANK OF INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.32 100.00 100.00 -0.26

0.0676

2002 1.64 124.24 124.24

0.06 0.0036

2003 1.52 115.15 92.68 -0.06

0.0036

2004 1.44 109.09 94.74 -0.14

0.0196

2005 1.56 118.18 108.33 -0.02

0.0004

2006 1.74 131.81 111.54 0.16

0.0256

2007 1.84 139.39 105.75 0.26

0.0676


Mean: - 1.58

S.D:- 0.03

C.V:- 1.90

The above Table No. 4.379 shows the Net Profit Margin figure of State Bank of India.

The mean ratio for the period under study is indicated at 1.58 and Standard Deviation

0.03 the Coefficient of variation is computed at 1.90. The highest margin is recorded

at 1.84 in 2007 and the lowest is observed in 2001 at 1.32. But from 2002 onwards

there is a constant increase in net profit margin throughout may be due to constant

increase in net sale.

445

Table No.4.380

ARAB BANK [ARABBANK] UAE NET PROFIT TO NET SALES

NET PROFIT MARGI N

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.86 100.00 100.00 0.16

0.0256

2002 1.48 79.57 79.57

-0.22 0.0484

2003 2.35 126.34 158.78 0.65

0.4225

2004 1.39 74.73 59.15 -0.31

0.0961

2005 1.64 88.17 117.99 0.06

0.0036

2006 1.48 79.57 90.24 -0.22

0.0484

2007 1.73 93.01 116.89 0.03

0.0009


Mean: - 1.70

S.D:- 0.09

C.V:- 5.42

The Net Profit Margin figure for the period 2001 to 2007 pertaining to “Arab Bank”

UAE is presents in the Table No. 4.380 above. After 2003 the margin is declining

trend. The average of the Net Profit Margin for the period is at 1.70 and Standard

Deviation is 0.09. And the coefficient of variation is calculated at 5.42 percent.

446

Table No.4.381

ABU DHABI COMMERCIAL BANK [ADCB] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.09 100.00 100.00 -0.46

0.2116

2002 1.45 133.03 133.03

-0.10 0.01

2003 2.08 190.83 143.45 0.53

0.2809

2004 1.72 157.80 82.69 0.17

0.2809

2005 1.46 133.94 84.88 -0.09

0.081

2006 1.35 123.85 92.47 -0.20

0.04

2007 1.71 156.88 126.67 0.16

0.0256


Mean: - 1.55

S.D:- 0.08

C.V:- 5.16

The above Table No. 4.381 reveals that the Net Profit Margin figure of Abu Dhabi

Commercial Bank UAE for the period 2001 – 2007. The Net Profit Margin ratio has

ranged between 1.09 and 2.08 percent during the period under study. The Standard

Deviation is indicates at 0.086. And the average margin 1.55 percent. Coefficient of


447

Table No.4.382

EMIRATES BANK [EBI] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.56 100.00 100.00 0.86

0.7396

2002 2.33 91.02 91.02

0.63 0.3969

2003 1.65 64.45 70.82 -0.05

0.0025

2004 0.89 34.77 53.94 -0.81

0.6561

2005 0.64 25.00 71.91 -1.06

1.1236

2006 1.33 51.95 207.81 -0.37

0.1369

2007 2.55 99.61 191.73 0.85

0.7225


Mean: - 1.70

S.D:- 0.54

C.V:- 31.75

Table No. 4.382 shows the Net Profit Margin of “Emirates Bank” UAE for the period

2001 – 2007. The average Net Profit Margin is at 1.70. The standard deviation is

computed at 0.54 and coefficient of variation is calculated at 31.75 percent.

448

Table No.4.383

NATIONAL BANK OF ABU DHABI [NBAD] UAE NET PROFIT TO NET SALES NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.26 100.00 100.00 0.20

0.04

2002 1.48 117.46 117.46

0.02 0.0004

2003 1.98 157.14 133.78 0.52

0.2704

2004 0.89 70.63 44.95 -0.57

0.3249

2005 0.99 66.89 111.24 -0.47

0.2209

2006 0.74 58.73 74.75 -0.72

0.5184

2007 2.87 227.78 387.84 1.41

1.9881


Mean: - 1.46

S.D:- 0.48

C.V:- 32.88 The above Table No. 4.383 furnishes the Net Profit Margin of National Bank of Abu

Dhabi UAE for the period 2001 – 2007. The average Net Profit Margin for the period

under study is at 1.46 and Standard Deviation 0.48. Ratio was above he average in

2007 at 2.87. This reflects tremendous increase in component of cost and overheads

without any increase in net sale over the previous year. The Coefficient of Variation is

indicated at 32.88 percent.

449

Table No. 4.384

NET PROFIT MARGIN MEANS AND COEFFICIENT OF VARIATION



Sr. No

NAME OF BANKS MEANS [SD/M*100]

CV

1

INDIA

ICICI BANK

3.43

31.20

2 CANARA BANK

6.32

183.70


1.58

1.90

4

UAE


1.70

5.42


1.55

5.16


1.70

31.75


1.46

32.88


CONCLUSION (BANKING SECTOR) The above Table No. 4.384 Summaries a Means and Variation of Net Profit Ratio for

India and UAE Banking Sector. The highest current ratio is observed in case of

Canara Bank at 6.32 for the period of study. However, the variation too is highest for

the bank, indicating the high fluctuations in the Net Profit Ratio over the period of

study. The higher Net Profit Ratio of Indian banking sector is an indication of the

higher overall efficiency of the business and better utilization of total resources

450

Table No.4.385

AMBUJA CEMENTS LTD INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.25 100.00 100.00 -1.17

1.3689

2002 6.15 189.23 189.23

-1.73 2.9929

2003 4.85 149.23 78.86 0.43

0.1849

2004 2.48 76.30 51.13 -1.94

3.7636

2005 3.93 121.53 159.27 -0.47

0.2209

2006 6.58 202.46 166.58 2.16

4.6656

2007 3.68 113.23 55.93 -0.74

0.5476


Mean: - 4.42

S.D:- 1.96

C.V:- 44.34 The above Table No. 4.385 presents Net Profit Margin figure of Ambuja Cement

India Company Ltd. The average Net Profit Margin was recorded at 4.42 and

Standard Deviation 1.96, Coefficient of variation is 44.34 percent. From 2002, 2003

and 2006 this is quite below the average.

451

Table No.4.386

DECCAN CEMENTS LTD INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT MARGIN

% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.55 100.00 100.00 -1.72

2.9584

2002 2.69 173.54 173.55

-0.58 0.3364

2003 1.84 118.70 68.40 -1.43

2.0449

2004 2.98 192.25 161.96 -0.29

0.0841

2005 3.87 249.67 129.87 0.60

0.36

2006 4.75 306.45 122.74 1.48

2.1904

2007 5.25 338.70 110.53 1.98

3.9204


Mean: - 3.27

S.D:- 1.70

C.V:- 51.99 The above Table No.4.386 shows the Net Profit Margin figures of Deccan Cement

Ltd. India Company. The mean of Net Profit Margin for the period under study is

indicated at 3.27 and Standard Deviation 1.70, and coefficient of variation was

computed at 51.99 percent. The highest growth rate of Net Profit Margin is recorded

at 5.25 percent in 2007 and lowest is observed in 2001 at 1.55 percent. But from 2002

onwards here is a constant increase in the net profit margin throughout may be due to

constant increase in net sales.

452

Table No.4.387 J K LAKSHMI CEMENTS LTD INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.72 100.00 100.00 0.05

0.0025

2002 2.61 151.74 151.74

0.94 0.8836

2003 1.98 115.11 75.86 0.31

0.0961

2004 0.56 32.55 28.28 -1.11

1.2321

2005 0.84 48.83 150.00 -0.83

0.6889

2006 0.94 56.65 111.90 -0.73

0.5329

2007 3.05 177.32 324.47 1.38

1.9044


Mean: - 1.67

S.D:- 0.76

C.V:- 45.51

The above Table No. 4.387 reveals the Net Profit Margin figure of JK Lakshmi

Cement Ltd. India Company for the period 2001- 2007. The Net Profit Margin Ratio

has ranged between 0.56 and 3.05 percent during the period under study. The standard

deviation is indicated at 0.76 and average margin 1.67 percent. Coefficient of

variation is calculated at 45.51

453

Table No.4.388 GULF CEMENT [GCEM] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.69 100.00 100.00 -0.45

0.2025

2002 2.42 143.20 143.20

0.28 0.0784

2003 1.83 108.28 75.62 -0.31

0.0961

2004 2.15 127.22 117.49 0.01

0.0001

2005 1.28 75.74 59.53 -0.86

0.7396

2006 3.19 188.76 249.22 1.05

1.1025

2007 2.44 144.38 76.49 0.30

0.09


Mean: - 2.14

S.D:- 0.33

C.V:- 15.42

The above table 4.388 reveals the Net Profit Margin Ratio of “Gulf Cement UAE

Company. The average Net Profit Margin for the period is computed at 2.14. The

examination of the figures reveals that the ratio is on increasing trend 2006 and 2007.

The improvement in the Net Profit Margins may because of the constant increase in

net sales.

454




% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.68 100.00 100.00 -0.81

0.6561

2002 2.42 144.05 144.05

-0.07 0.0049

2003 1.87 111.31 77.27 -0.62

0.3844

2004 3.94 234.52 210.70 1.45

2.1025

2005 2.23 132.74 56.60 -0.26

0.0676

2006 2.63 156.55 117.94 0.14

0.0196

2007 2.72 161.90 103.42 0.23

0.0529


Mean: - 2.49

S.D:- 0.47

C.V:- 18.88 The above Table No. 4.389 shows the details of Net Profit Margin of National

Cement UAE Company Ltd for the period 2001 – 2007. The Net Profit Margin moved

in between 3.94 to 1.68. The average for the period is 2.49 and Standard Deviation is

0.47. And the Coefficient of Variation is computed as at 18.88 percent.

455

Table No.4.390 SHARJAH CEMENT [SCIDC] UAE


YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.86 100.00 100.00 -0.92

0.8464

2002 1.37 159.30 159.30

-0.41 0.1681

2003 1.54 179.06 112.41 -0.24

0.0576

2004 1.36 158.13 88.31 -0.42

0.1764

2005 2.94 341.86 216.18 1.16

1.3456

2006 1.97 229.06 67.01 0.19

0.036

2007 2.44 283.72 123.86 0.66

0.4356


Mean: - 1.78

S.D:- 0.44

C.V:- 24.72

Table No. 4.390 reveals Net Profit Margin “Sharjah Cement UAE Company Ltd”.

The average Net Profit Margin for the period under study at 1.78 and Standard

Deviation 0.44. The margin is above the average since 2005. It is indicated that in

2007 Net Profit Margin Ratio is at 2.44. This reflects tremendous increase in

component of cost and overheads without any increase in net sales over the previous

year; The Coefficient of Variation is indicated at 24.72.

456

Table No.4.391



[Period of Study 2001 – 2007] Sr. No CEMENT COMPANIES MEANS

[SD/M*100] CV

1

INDIA

AMBUJA CEMENT LTD.

4.42

44.34


3.27

51.99


1.67

45.51

4

UAE

GULF CEMENT [GCEM]

2.14

15.42


2.49

18.88


1.78

24.72


CONCLUSION (CEMENT SECTOR) The Means and Coefficient Variation Net Profit Ratio is summaries in above Table

No. 4.391 India and UAE Cement Companies. Out of six companies of India and

UAE, the performance of Indian Cement companies is better as compare to UAE

Cement Companies. Ambuja Cement, Deccan Cement India have net profit margin

and Variation more than other cement companies, a higher ratio is an indication of

the higher overall efficiency of business and better utilization of total resources. JK

Lakshmi India and Sharjah Cement UAE has suffered heavy losses brought down the

average of the cement companies to low level. The remaining companies show the net

profit margin ratio of more than 1. This reveals improvement in investment to gain

profit.

457

Table No.4.392

NATIONAL INSUREANCE INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.98 100.00 100.00 -1.41

1.9881

2002 0.97 48.98 48.98

-2.42 5.8564

2003 2.67 134.84 275.26 -0.72

0.5184

2004 3.99 201.51 149.44 0.60

0.36

2005 4.73 238.88 118.55 1.34

1.7956

2006 5.81 293.43 122.83 2.42

5.8564

2007 3.64 183.83 62.65 0.25

0.0625


Mean: - 3.39

S.D:- 2.35

C.V:- 69.32

The Net Profit Margin for National Insurance India is presented in above Table No.

4.392 for the period 2001 – 2007. It was highest at 5.81 in 2006. It is lowest at 0.97 in

2002. The average for the period is 3.39 and Standard Deviation at 2.35 and

Coefficient of Variation is determines at 69.32 percent.

458

Table No.4.393

ORIENTAL INSUREANCE COMOPANY INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.16 100.00 100.00 2.33

5.4289

2002 4.75 92.05 92.05

1.92 3.6864

2003 3.15 61.04 66.32 0.32

0.1024

2004 1.97 38.17 62.54 -0.86

0.7396

2005 2.56 49.61 129.95 -0.27

0.0729

2006 0.13 2.51 5.08 -2.70

7.29

2007 2.09 40.50 1607.69 -0.74

0.5476


Mean: - 2.83

S.D:- 2.55

C.V:- 90.11

The above Table No. 4.393 presents the Net Profit Margin figure of Oriental

Insurance India. The average Net Profit Margin is recorded as 2.83 and Standard

Deviation at 2.55 and Coefficient of Variation at 90.11 percent. From 2001 onwards

there is a decline in the average profit which is quite below the average. The decline

can be attributed to decrease in net sale and increase in component of cost of goods

sold and the interest charges but on the open land there is an increase in the profit

margin. In 2005 onwards may be to increase in net sale.

459

Table No.4.394

UNITED INDIA INSURANCE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 11.25 100.00 100.00 6.31

39.8161

2002 9.85 87.56 87.56

4.91 24.1081

2003 5.64 50.13 57.26 0.70

0.49

2004 2.36 20.97 41.84 -2.58

6.6564

2005 1.46 12.97 61.86 -3.48

12.1104

2006 1.46 12.97 100.00 -3.48

12.1104

2007 2.56 22.75 175.34 -2.38

5.6644


Mean: - 4.94

S.D:- 14.42

C.V:- 291.90 Table No. 4.394 states Net Profit Margin of United India Insurance for the period of

2001 – 2007. The Net Profit Margin is highest in 2001 base year and it is lowest in

2005. Since 2004 it is below average of 4.94. The Standard Deviation is indicated as

14.42 and Coefficient of Variation at 291.90 percent. In 2001 it is decline due to

decline in net sale and slight increase overheads deferred adjusted but then it should

an increase in its profit above the average.

460

Table No.4.395

ABU DHABI NATIONAL INSURANCE COMPANY [ADNIC] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.85 100.00 100.00 0.81

0.6561

2002 1.08 58.38 58.38

0.04 0.0016

2003 0.75 40.54 69.44 -0.29

0.0841

2004 0.59 31.89 78.67 -0.45

0.2025

2005 0.63 34.05 106.78 -0.41

0.1681

2006 0.84 45.41 133.33 -0.20

0.04

2007 1.59 85.95 189.29 0.55

0.3025


Mean: - 1.04

S.D:- 0.21

C.V:- 20.19

Table No. 4.395 shows the Net Profit Margin of Abu Dhabi National Insurance

Company UAE. The average of Net Profit Margin is at 1.04. In 03 times the ratio was

more than 1, and Standard Deviation of 0.21 And Coefficient of Variation was 20.19

percent.

461

Table No.4.396

ALLIANCE INSURANCE [ALLIANCE] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 9.36 100.00 100.00 4.00

16.00

2002 4.25 45.41 45.41

-1.11 1.2321

2003 6.15 65.71 144.71 0.79

0.6241

2004 7.18 76.71 116.75 1.82

3.3124

2005 4.36 46.58 60.72 -1.00

1.00

2006 2.75 29.38 63.07 -2.61

6.8121

2007 3.48 37.18 126.55 -1.88

3.5344


Mean: - 5.36

S.D:- 4.65

C.V:- 86.75 The Net Profit Margin Ratio for the year 2001 – 2007 of Alliance Insurance UAE

Company is given in Table No. 4.396. The mean of Net Profit Margin Ratio for the

period under study is indicated at 5.36 and Standard Deviation at 4.65. And the

Coefficient of Variation as 86.75, the highest margin is recorded at 9.36 percent.

462

Table No.4.397

DUBAI NATIONAL INSURANCE [DNIR] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.35 100.00 100.00 -1.76

3.0976

2002 6.35 270.21 270.21

2.24 5.0176

2003 4.18 177.87 65.83 0.07

0.49

2004 3.64 154.89 87.08 -0.47

0.2209

2005 3.28 139.57 90.11 -0.83

0.6889

2006 6.34 269.78 193.29 2.23

4.9729

2007 2.66 113.19 41.96 -1.45

2.1025


Mean: - 4.11

S.D:- 2.37

C.V:- 57.66 Table No. 4.397 The yearly Net Profit Margin of Dubai National Insurance UAE.

The average Net Profit Margin of the study 4.11, the highest Net Profit Margin Ratio

in the year 2002 and the lowest is in the year 2001 The Standard Deviation is


463

Table No.4.398 UNITED INSURANCE [UIC] UAE


YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.96 100.00 100.00 -0.34

0.1156

2002 4.59 115.91 115.91

0.29 0.0841

2003 7.48 188.89 162.96 3.18

10.1124

2004 6.68 168.69 89.30 2.38

5.6644

2005 4.36 110.10 65.27 0.06

0.0036

2006 0.69 17.42 15.83 -3.61

13.0321

2007 2.39 60.35 346.38 -1.91

3.6481


Mean: - 4.30

S.D:- 4.67

C.V:- 108.60

The Net Profit Margin of United Insurance UAE shown in above Table No. 4.398

from the period 2001 -2007 the average of Net Profit Margin 4.30 and Standard

Deviation 4.67 and Coefficient of Variation was 108.60. The highest X2 was in the

year 2006 at 13.0321

464

Table No. 4.399




Sr.No


CV

1

INDIA

NATIONAL INSURANCE

3.39

69.32


2.83

90.11


4.94 291.90

4

UAE


1.04

20.19


5.36

86.75


4.11

57.66


4.30

108.60


(INSURANCE SECTOR)

India and UAE Insurance Companies Means and Coefficient of Variation Net Profit

Ratio are Summaries in above Table No. 4.399. The highest margin of 5.36 is

indicated by ‘Alliance Insurance UAE and In India United India Insurance at 4.94.

And the higher Variation is observed united India Insurance. It is indicating the high

fluctuations in the Net Profit Ratio over the period of study.

465

Table No.4.400

CADILA HEALTHCARE INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.67 100.00 100.00 -0.38

0.1444

2002 1.48 55.43 55.43

-1.57 2.4649

2003 6.93 259.55 468.24 3.88

15.0544

2004 1.43 53.56 20.63 -1.62

2.6244

2005 5.32 199.25 372.03 2.27

5.1529

2006 1.25 46.82 23.50 -1.80

3.24

2007 2.33 87.27 186.40 -0.72

0.5184


Mean: - 3.05

S.D:- 4.17

C.V:- 136.72 The above Table No. 4.400 give the Net Profit Margin details of India Pharmaceutical

Company “Cadila Health Care” The margin is lowest in 2006 and it recorded the

highest ratio in 2003. The average Net Profit Margin for period from 2001 to 2007 is

3.05 and Standard Deviation is at 4.17 and Coefficient of variation at 136.72. A

growth rate of fixed base is more than 200 in 2003

466

Table No.4.401 CIPLA LTD INDIA


YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.96 100.00 100.00 -0.61

0.3721

2002 0.79 82.29 82.29

-0.78 0.6084

2003 1.89 196.88 239.24 0.32

0.1024

2004 0.69 71.88 36.51 -0.88

0.7744

2005 0.82 85.42 118.84 -0.75

0.5625

2006 2.98 310.42 363.41 1.41

1.9881

2007 2.89 301.04 96.98 1.32

1.7424


Mean: - 1.57

S.D:- 0.88

C.V:- 56.05

The figures of Net Profit Margin pertaining to “Cipla Pharma Company Ltd India” are

given in above Table No. 4.401. The average Net Profit Margin for the period is at

1.57 and Standard Deviation at 0.88, Coefficient of Variation is at 56.05 percent. The

net profit margin moved in between 0.69 and 2.98 percent.

467

Table No.4.402 SUN PHARMA INDIA


YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 6.45 100.00 100.00 -0.65

0.4225

2002 7.89 122.33 122.33

0.79 0.6241

2003 8.95 138.76 113.43 1.85

3.4225

2004 9.67 149.92 108.04 2.57

6.6049

2005 10.56 163.72 109.20 3.46

11.9716

2006 2.59 40.16 24.53 -4.51

20.3401

2007 3.64 56.43 140.54 -3.46

11.9716


Mean: - 7.10

S.D:- 7.91

C.V:- 111.41.

Table No. 4.402 shows Net Profit Margin of “Sun Pharma” India. The margin is

highest in 2005 and suddenly in next year it is lowest in 2006. The decline can be

attributed to decrease in net sales and increase in component of cost of good sold and

the interest changes. The average Net Profit Margin is recorded at 7.10 and Standard

deviation at 7.91 and coefficient of variation at 111.41.

468

Table No.4.403 GULF MEDICAL PROJECTS [GMPC] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.06 100.00 100.00 -1.23

1.5129

2002 2.65 250.00 250.00

0.36 0.1296

2003 1.06 100.00 40.00 -1.23

1.5129

2004 3.64 343.39 343.40 1.35

1.8225

2005 2.25 212.36 61.81 -0.04

0.0016

2006 2.74 258.49 121.78 0.45

0.2025

2007 2.63 248.11 95.99 0.34

0.1156


Mean: - 2.29

S.D:- 0.76

C.V:- 33.19

The Net Profit Margin figure for the period 2001 to 2007 pertaining to “Gulf

Medical” UAE companies are presents in above Table No. 4.403. The average of Net

Profit Margin for the period is recorded at 2.29 and Standard Deviation 0.76 and

Coefficients of Variation at 33.19.

469

Table No.4.404 GULF PHARMACEUTICAL INDUSTRIES [JULPHAR] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.35 100.00 100.00 -1.14

1.2996

2002 2.94 217.78 217.78

0.45 0.2025

2003 1.71 126.67 58.16 -0.78

0.6084

2004 3.39 251.11 198.25 0.90

0.81

2005 2.42 179.26 71.39 -0.07

0.0049

2006 2.76 204.44 114.05 0.27

0.0729

2007 2.88 213.33 104.35 0.39

0.1521


Mean: - 2.49

S.D:- 0.45

C.V:- 18.07

The Table No. 4.404 states the Net Profit Margin figure for the period 2001 to 2007

pertaining to “Gulf Pharmaceutical” UAE. The average Net Profit Margin for the

periods is recorded at 2.49 and Standard Deviation as 0.45. The highest margin is

observed at 3.39 for the year 2004, and Coefficient of Variation as 18.07 percent.

470

Table No. 4.405 NET PROFIT MARGIN





CV

1

INDIA

CADILA HEALTH CARE

3.05 136.72

2 CIPLA LTD.

1.57 56.05

3 SUN PHARMA.

7.10 111.41

4

UAE


2.29 33.19


2.49 18.07

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (PHARMACEUTICAL SECTOR) India and UAE Pharmaceutical Companies the Means and Variation of Net Profit

Margin is summaries in above Table No. 4.405. The highest Net Profit Margin is

observed for Sun Pharma India at 7.10. The highest variability found in Cadila Health

Care India. The performance of India Pharma Companies is better as compare to UAE

Pharma Companies. The remaining Pharma companies show the net profit margin

ratio of more than 1. This reveals improvement in Investment to overall profitability

in recent year of majority companies.

471

Table No.4.406

TATA COMMUNICATION INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.35 100.00 100.00 0.95

0.9025

2002 2.63 49.16 49.16

-1.77 3.1329

2003 5.96 111.40 226.62 1.56

2.4336

2004 3.74 69.91 62.75 -0.66

0.4356

2005 3.15 58.88 84.22 -1.25

1.5625

2006 6.69 125.05 212.38 2.29

5.2441

2007 3.29 61.50 49.18 -1.11

1.2321


Mean: - 4.40

S.D:- 2.13

C.V:- 48.41

The above Table No. 4.406 reveals Net Profit Margin of “Tata Communication for the

period 2001 – 2007. Net Profit Margin is highest in 2006 and it is lowest in 2002. The

average Net Profit Margin Ratio for the period is computed at 4.40 percent, and

Standard Deviation is 2.13 Coefficient of Variation is calculated at 48.41.

472

Table No.4.407

BHARTI AIRTEL LTD INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 ---- ----- ------ -----

------

2002 1.05 100.00 100.00

-0.85 0.7225

2003 1.11 105.71 105.71 -0.79

0.6241

2004 2.44 232.38 219.82 0.54

0.2916

2005 2.25 214.29 92.21 0.35

0.1225

2006 2.63 250.48 116.89 0.73

0.5329

2007 1.96 186.67 74.52 0.06

0.0036


Mean: - 1.90

S.D:- 0.38

C.V:- 20.00 The above Table No. 4.407 gives the Net Profit Margin Details of “Bharti Airtel India

Company”. The Data for the year 2001 is not Available of Bharti Airtel. The Net

Profit Margin is lowest in 2002 and it recorded the highest in 2006. The Average Net

Profit Margin for the period from 2002 to 2007 is 1.90 and Standard Deviation is

0.38. In 2002 and 2003 the margin is below the average and it improved significantly

from 2004 onwards. A growth rate 250.48 percent as per fixed base in 2006, And

Coefficient of Variation at 20.00

473

Table No.4.408

MTNL TELECOMMUNICATION COMPANY OF INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 5.44 100.00 100.00 0.23

0.0529

2002 6.25 114.89 114.89

1.04 1.0816

2003 7.25 133.27 116.00 2.04

4.1616

2004 3.68 67.65 50.76 -1.53

2.3409

2005 3.68 67.65 100.00 -1.53

2.3409

2006 6.95 127.76 188.86 1.74

3.0276

2007 3.22 59.19 46.33 -1.99

3.9601


Mean: - 5.21

S.D:- 2.42

C.V:- 46.44

The Net Profit Margin pertaining to “MTNL India” is shows in above Table No.

4.408. The Average for the period under study is computed at 5.21 only and Standard

Deviation is 2.42. And Coefficient of variation is at 46.44 percent. For two

consecutive financial years that is 2004 and 2005 the Net Profit Margin Ratio is

indicated at 3.68 percent. The deviation from mean was negative for three years.

Coefficient of variation is determines at 46.44 percent.

474

Table No.4.409

ETISALAT TELCOM UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.95 100.00 100.00 0.14

0.0196

2002 1.74 58.98 58.98

-1.07 1.1449

2003 2.41 81.69 138.51 -0.40

0.16

2004 3.96 134.23 164.32 1.15

1.3225

2005 3.69 125.08 93.18 0.88

0.7744

2006 2.59 100.00 70.19 -0.22

0.0484

2007 2.39 81.01 92.28 -0.42

0.1764


Mean: - 2.81

S.D:- 0.52

C.V:- 18.51. The above Table No. 4.409 reveals that the Net Profit Margin details of “Etisalat

Telecom” UAE company. The margin is lowest in 2002 and it recorded the highest in

2004. The average Net Profit Margin for the period from 2001 to 2007 is 2.81 and

Standard Deviation 0.52. Since 2006, the Margin is below the average. In 2004 a

growth rate of 134.23 percent as per fixed base. And the Coefficient of Variation was

computed as at 18.51 percent.

475




Sr. No TELECOM COMPANIES MEANS

[SD/M*100] CV

1

INDIA

TATA COMMUNICATION

4.40

48.41

2 BHARTI AIRTEL LTD

1.90

20.00

3 MTNL. INDIA

5.21

46.44

4 UAE ETISALAT TELECOM UAE

2.81 18.51


CONCLUSION (TELECOMMUNICATION SECTOR) India and UAE Telecommunication Companies Means and Variation are summaries

in above Table No. 4.410. The performance of Indian Telecom companies is superior

as compare to UAE Telecom Companies. The highest margin of India telecom

companies MTNL India at 5.21 and Tata Communication at 4.40, a higher ratio is an

indication of the higher overall efficiency of the business and better utilization of total

resources. Etisalat Telecom UAE shows the net profit margin ratio of more than 2.

The highest variability found in Tata Communication India and Etisalat Telecom.

While the lowest Variation recorded for Bharti Airtel India. Hence, it suggests that

investment opportunities between India and UAE are Present in Telecommunication

Sector.

476

Table No.4.411

STEEL AUTHORITY OF INDIA LTD NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.65 100.00 100.00 -0.34

0.1156

2002 3.54 214.54 214.55

1.55 2.4025

2003 1.27 76.96 35.88 -0.72

0.5184

2004 2.69 163.03 211.81 0.70

0.49

2005 1.46 88.48 54.28 -0.53

0.2809

2006 1.55 93.93 106.16 -0.44

0.1936

2007 1.77 107.27 114.19 -0.22

0.0484


Mean: - 1.99

S.D:- 0.58

C.V:- 29.15

The Table No. 4.411 above presents the Net Profit Margin figure of “Steel Authority

of India Ltd. for the period 2001 – 2007. The average Net Profit Margin is recorded at

1.99 and Standard Deviation of 0.58 and Coefficient of Variation at 29.15. From 2005

onwards there is a decline in the average profit which is quite below the average. The

decline can be attributed to decrease in net sales and increase in component of cost of

goods sold and the interest changes on the open land there is an increase in the profit

margin from 2002 onwards may be due to increase in net sale.

477

Table No.4.412

STEEL COMPANY GUJARAT LTD. INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.86 100.00 100.00 -0.46

0.2116

2002 2.62 140.86 140.86

0.30 0.09

2003 1.79 96.23 68.32 -0.53

0.2809

2004 2.94 158.06 164.25 0.62

0.3844

2005 1.82 97.84 61.90 -0.50

0.25

2006 2.83 152.15 155.49 0.51

0.2601

2007 2.39 128.49 84.45 0.07

0.0049


Mean: - 2.32

S.D:- 0.21

C.V:- 9.05

The Table No. 4.412 above shows figures of Net Profit Margin pertaining to “Steel

Company Gujarat Ltd” India for the period 2001 – 2007. The average Net Profit

Margin for the period is at 2.32 and Standard Deviation is at 0.21 Coefficient of

Variation is 9.05 percent. The net profit margin moved in between 1.79 and 2.94. The

net profit margin is above the average is all time high at 2.9 in 2004

478

Table No.4.413

BOULDER STEEL [BGD] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.08 100.00 100.00 -1.46

2.1316

2002 2.96 274.07 274.07

0.42 0.1764

2003 1.74 161.11 58.78 -0.80

0.64

2004 3.63 336.11 208.62 1.09

1.1881

2005 2.72 251.85 74.93 0.18

0.0324

2006 2.81 260.19 103.31 0.27

0.0729

2007 2.84 262.96 101.07 0.30

0.09


Mean: - 2.54

S.D:- 0.62

C.V:- 24.41 Table No. 4.413 gives the Net Profit Margin figures for the period 2001 to 2007 to

“Boulder Steel Company of UAE”. The average for the period is recorded at 2.54 and

Standard Deviation at 0.62.The highest Net Profit Margin observed at 3.63 in the year

2004. From 2004 onwards the Net Profit Margin is above the average and the lowest

Net Profit Margin is observed at 1.08 for the year 2001 and the Coefficient of

Variation was 24.41.

479

Table No.4.414 JAZEERA STEEL [ATMI] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN

YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.62 100.00 100.00 -0.86

0.7396

2002 2.88 177.78 177.78

0.40 0.16

2003 1.69 104.32 58.68 0.79

0.6241

2004 3.41 210.49 201.78 0.93

0.8649

2005 2.38 146.91 69.79 -0.10

0.01

2006 2.69 166.05 113.03 0.21

0.0441

2007 2.74 169.14 101.86 0.26

0.0676


Mean: - 2.48

S.D:- 0.35

C.V:- 14.11 The Table No. 4.414 above gives the Net Profit Margin of “Jazeera Steel Company

UAE” for the period 2001 - 2007. The average Net Profit Margin for the period is

2.48 and Standard Deviation at 0.35 and Coefficient of Variation is indicates at 14.11

percent. During 2004 the Net Profit Margin is above the average and it is all time high

at 3.41 in 2004, in 2001; the profit margin went below the average due to higher

depreciation amount and increase in cost of goods sold.

480

Table No. 4.415

NET PROFIT MARGIN MEANS AND COEFFICIENT OF VARIATION IRON AND STEEL SECTOR ANALYSIS


Sr.No

IRON & STEEL COMPANIES

MEANS [SD/M*100]

CV

1

INDIA


1.99 29.15


2.32 9.05

3

UAE

BOULDER STEEL

2.54 24.41


2.48 14.11

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IRON AND STEEL SECTOR) The Means and Variation Net profit Ratio of India and UAE Iron and Steel companies

Summaries is presents in Table No. 4.415. The highest margin is recorded in case of

Boulder Steel at 2.54 for the period of study. However, the variation too is highest for

the Boulder Steel, indicating the high fluctuations in the Net Profit Ratio over the

period of study. The lowers margin of India steel companies steel Authority of India

and steel company Gujarat have Net Margin is inadequate, the company fail to

achieve satisfactory Return on owner’s equity. UAE steel companies have Net Profit

Margin higher. But during the period of study the higher Variation is observe in Steel

Authority of India Ltd. Indian Iron and Steel Companies. The performance of UAE

steel companies show the net profit margin ratio is higher as compare to India steel

company. These reveal higher overall efficiency of the business and better utilization

of total resources

481

Table No.4.416

H C L TECHNOLOGYIES LTD IT COMPANY OF INDIA NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.87 100.00 100.00 0.11

0.0121

2002 1.95 104.28 104.28

0.19 0.0361

2003 1.45 77.54 74.36 -0.31

0.0961

2004 1.59 85.02 109.66 -0.17

0.0289

2005 1.93 103.20 121.38 0.17

0.0289

2006 1.48 79.14 76.68 -0.28

0.0784

2007 1.77 94.65 119.59 0.01

0.0001


Mean: - 1.76

S.D:- 0.04

C.V:- 2.27 The Table No. 4.416 above figure out the Net Profit Margin pertaining to “HCL

Technologies Ltd” Indian IT Company for the period 2001 - 2007. The Net Profit

Margin during the period under study ranged in between 1.45 and 1.95. The average

Net Profit Margin Ratio is 1.76 and Standard Deviation is 0.04 Coefficient of

variation computed at 2.27 percent. During the entire study Net Profit Margin Ratio is

above 1percent.

482

Table No.4.417 INFOSYS TECH LTD IT COMPANY OF INDIA



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.39 100.00 100.00 -0.57

0.3249

2002 1.56 112.23 112.23

-0.40 0.16

2003 1.93 138.85 123.73 -0.03

0.0009

2004 1.87 134.53 96.89 -0.09

0.0081

2005 2.91 209.35 155.61 0.95

0.9025

2006 2.68 192.81 92.10 0.72

0.5184

2007 1.43 102.88 53.36 -0.53

0.2809


Mean: - 1.96

S.D:- 0.31

C.V:- 15.82

The Table No. 4.417 show the Net Profit Margin of “Infosys Tech Ltd” The highest

Net Profit Margin is recorded in the year 2005 at 2.91. It went on fluctuating in

subsequent years. The standard deviation is shown at 0.31 and average margin 1.96,

Coefficient variation at 15.82.

483

Table No.4.418 WIPRO LTD. IT COMPANY OF INDIA


YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 1.23 100.00 100.00 -0.34

0.1156

2002 1.23 100.00 100.00

-0.34 0.1156

2003 1.45 117.88 117.89 -0.12

0.0144

2004 1.45 117.88 100.00 -0.12

0.0144

2005 2.30 186.99 158.62 0.73

0.5329

2006 2.15 174.79 93.48 0.58

0.3364

2007 1.21 98.73 56.28 -0.36

0.1296


Mean: - 1.57

S.D:- 0.18

C.V:- 11.46

The table 4.418 above furnishes the Net Profit Margin of “Wipro Ltd India” for the

period 2001 – 2007. The average Net Profit Margin Ratio is recorded at 1.57 and

Standard Deviation at 0.18. The lowest Net Profit Margin Ratio observed in 2007. In

the year 2005 it is highest at 2.30, it fell below the average in 2007, Owing to step like

in the interest and the depreciation despite significant increase in sales over previous

years.

484

Table No.4.419

ABU DHABI NATIONAL COMPANY FOR BUILDING MATERIALS [BILDCO] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 3.15 100.00 100.00 0.42

0.1764

2002 1.69 53.65 53.65

-1.04 1.0816

2003 2.98 94.60 176.33 0.25

0.0625

2004 3.13 99.36 105.03 0.40

0.16

2005 4.11 130.47 131.31 1.38

1.9044

2006 1.99 63.17 48.42 -0.74

0.5476

2007 2.06 65.39 103.52 -0.67

0.4489


Mean: - 2.73

S.D:- 0.63

C.V:- 23.08

The Table No. 4.419 shows the details of Net Profit Margin of “Abu Dhabi National

Company for Building Material” UAE for the period of study 2001 – 2007. The

average of Net Profit Margin for the period is shown as 2.73 percent. The Standard

Deviation is indicated at 0.63. The highest margin is 4.11 percent observed in 2005

and lowest at 1.69 in 2002. The percentage per fixed base method is above 100 in the

year 2005. In 2007 this shows the better position of profitability of company during

the last year.

485

Table No.4.420

DUBAI DEVELOPMENT COMPANY [DDC] UAE NET PROFIT TO NET SALES

NET PROFIT MARGIN


% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.98 100.00 100.00 -1.65

2.7225

2002 3.84 128.86 128.86

-0.79 0.6241

2003 2.08 69.80 54.17 -2.55

6.5025

2004 3.09 103.69 148.56 -1.54

2.3716

2005 4.15 139.26 134.60 -0.48

0.2304

2006 9.16 307.38 220.72 4.53

20.5209

2007 7.16 240.27 78.17 2.53

6.4009


Mean: - 4.63

S.D:- 5.62

C.V:- 121.38

The Table No. 4.420 shows the details of Net Profit Margin of “Dubai Development

Company” for the period 2001 to 2007. The Net Profit Margin Ratio is in between

2.08 to 7.16 as in present in above table. The average Net Profit Margin at 4.63 and

Standard Deviation 5.62, And Coefficient of Variation was 121.38.

486

Table No.4.421 EMAAR PROPERTIES [EMAAR] UAE


YEARS NET PROFIT


% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 0.36 100.00 100.00 -1.58

2.4964

2002 0.48 133.33 133.33

-1.46 2.1316

2003 3.69 1025.00 768.75 1.75

3.0625

2004 0.47 130.55 12.74 -1.47

2.1609

2005 5.14 1427.77 1093.62 3.20

10.24

2006 0.98 272.22 19.07 -0.96

0.9216

2007 2.48 688.88 253.06 0.54

0.2916


Mean: - 1.94

S.D:- 3.04

C.V:- 156.70

The Table No. 4.421 reveals the Net Profit Margin figure of “Emaar Properties”. The

average margin is computed at 1.94, Standard Deviation is at 3.04. During the period

of study three year Net Profit Margin remained above the average. The highest Net

Profit Margin Ratio is indicated in the year 2005 at 5.14 percent and the lowest in

2001 at 0.36 and the Coefficient of Variation 156.70.

487

Table No.4.422 UNION PROPERTIES [UPP] UAE



% CHANGE FIXED BASE

% CHANGE CHAIN BASE

Dev. From

Mean (X) X2

2001 2.39 100.00 100.00 -1.72

2.9584

2002 7.28 304.60 304.60

3.17 10.0489

2003 3.44 143.93 47.25 -0.67

0.4489

2004 1.63 68.20 47.38 -2.48

6.1504

2005 5.14 215.06 315.34 1.03

1.0609

2006 6.47 270.71 125.88 2.36

5.5696

2007 2.44 102.09 37.71 -1.67

2.7889


Mean: - 4.11

S.D:- 4.15

C.V:- 100.97 The Table No. 4.422 gives the details of Net Profit Margin Ratio of “Union Properties

UAE companies” for the period 2001 - 2007. The Average for the period under study

at 4.11, the highest X2 was in 2002 at 10.0489. Standard Deviation is 4.15, Coefficient

of variation is to be determines at 100.97 percent.

488


MEANS AND COEFFICIENT OF VARIATION IT OF INDIA & CONSTRUCTION OF UAE ANALYSIS



[SD/M*100] CV

1

INDIA


1.76 2.27


3 WIPRO LTD. 1.57 11.46

4

UAE


2.73 23.08


4.63 121.38


1.94 156.70


4.11 100.97

Source: - Calculations made by the Researcher on the basis of the Stock Exchange Annual Report for both the Countries i.e. India and United Arab Emirates. CONCLUSION (IT FOR INDIA AND CONSTRUCTION SECTOR FOR UAE) The Table No. 4.423 above summaries IT Companies India and Construction

Companies UAE Means and Coefficient of Variation Net Profit Ratio The highest Net

Profit Margin Ratio is present in construction company of UAE 4.63 is indicated by

Dubai Development company. And in IT Company India was highest margin

recorded Infosys Tech Ltd. However, the variation too is highest for IT Company of

India; it indicates the high fluctuations in the margin over the period of study. The

highest variability found in Emaar Properties UAE. The performance of IT

Companies and Construction Companies UAE is not achieving satisfactory return on

owner’s equity. It suggests that Investment Opportunities are present in both sector of

India and UAE

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CHAPTER IV INDIVIDUAL COMPANY...

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