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As at

Particulars 31.03.11SOURCES OF FUNDSSHAREHOLDERS' FUNDS

Capital 1,445Reserves and Surplus 116,906

118,351LOAN FUNDSSecured Loans 265Unsecured Loans 7,949

8,214DEFERRED TAX (Note 19 on Schedule 23)Deferred Tax Liabilities 2,206Deferred Tax Assets (836)

1,370Total 127,935

APPLICATION OF FUNDSFIXED ASSETSGross Block 104,067Less: Depreciation (53,820)

50,247Capital Work-In-Progress 3,876

54,123INVESTMENTS 71766CURRENT ASSETS, LOANS AND ADVANCESInventories 12,088Sundry Debtors 8,099Cash and Bank Balances 982Other Current Assets 848Loans and Advances 15,707

37,724

Current Liabilities 29,394Provisions 6,284

35,678Net Current Assets 2,046

Total 127,935Significant Accounting PoliciesNotes to Accounts

Balance Sheet as at 31 March

MARUT SUZUKI

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As at

31.03.10

1,44592,004

93,449

16,988

6,989

2,340(789)

1,551101,989

87,206(46,498)40,7088,613

49,32131,733

9,0239,37819,39098116,328

55,100

30,3583,80734,165

20,935

101,989

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For the year ended For the year endedParticulars 31/3/11 31/3/10

INCOMEGross Sales 318,073 230,852less: Excise Duty 28,488 27,269

Net Sales 289,585 203,583Income from Services [Net of expenses Rs 50million (previous year Rs 153 million)]

1,404 954

Other Income 10,209 10,001Total 301,198 214,538

EXPENDITUREConsumption of Raw Materials and Components 214,881 150,598Purchase of Traded Goods 9,050 7,256Consumption of Stores 2,432 1,978Employees Remuneration and Benefits 5,456 4,711

Manufacturing, Administrative and Other Expenses 17,938 15,685

Selling and Distribution Expenses 9,160 7,382Total 258,917 187,610Less: Vehicles/Dies for Own Use 296 223

Add: (Increase)/Decrease to Work-in-Progress and

Finished Goods and Spare Parts (1,933) 2,818Total 256,688 190,205

Earnings before Interest, Depreciation, Tax andAmortizations (EBIDTA) 44,510 24,333Interest 335 510Depreciation 8,250 7,065

8,585 7,575Profit before Tax 35,925 16,758Less : Tax Expense - Current Tax 11,230 4,592- Deferred Tax (Note 19 on Schedule 23) (281) (118)- Fringe Benefit Tax - 97Profit after Tax 24,976 12,187

Add: Brought forward from previous year's account 80,042 70,257

Profit available for Appropriation 105,018 82,444Less: Appropriation :General Reserve 2,498 1,219Proposed Dividend 1,733 1,011Corporate Dividend Tax 288 172Balance carried forward to Balance Sheet 100,499 80,042Basic/Diluted Earnings Per Share (in Rupees) 86.45 42.18

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COGS 231648.67 164437.33SGA 12,627 9,688

Financial Ratios 2011 2010 Formulae

Debt-Equity Ratio 0.04 0.07Long term Debt / TotalShareholder's Equity

Current Ratio 1.06 1.61 Current Assets / Current Liabilities

Interest Coverage Ratio 132.87 47.71 EBIT / Interest

Debt Service Coverage Ratio 14.48 8.57

(PAT + Depriciation + InterestPayment) / (Interest Payment +Total Debt/3)

Inventory Turnover 21.95 18.22 COGS / Avg Inventory

Days of Inventory on hand 16.63 20.03 365 / Inventory Turnover

Debtors Turnover 36.40 24.62 Gross Sales / Avg Sundry Debtors

Days of Sales Outstanding 10.03 14.83 365 / Receivables Turnover

Creditors Turnover #REF! #REF! Purchases / Avg Sundry Creditors

Days of Payables #REF! #REF! 365 / Payables Turnover

Total Assets Turnover 2.35 2.10 Revenue / Avg Total Assets

Net Fixed Assets Turnover 5.99 5.27 Revenue / Avg Fixed Assets

Operating Cycle (Days) 26.66 34.86Days of Sales Outstanding + Daysof Inventory on hand

Gross profit margin 20.00% 19.00% Gross profit/Net sales

Operating Profit Margin 20.01% 19.23% Operating Profit / Net Sales

Net Profit Margin 8.62% 5.99% PAT/ Net Sales

SGA Expenses to Net Sales 0.04 0.05 SGA / Net Sales

EBIT to Net Sales 0.09 0.06 EBIT / Net Sales

MARUTI SU

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Return on Capital Employed 19.73% 12.13%(PAT + Interest) / Equity + Loanfunds

Return on Equity 1728.44% 843.39% PAT / Equity Share Capital

Return on Net Worth 21.10% 13.04%PAT / Equity + Preference ShareCapital

Earnings Per Share (Rs.) 86.45 42.18 PAT / Outstanding Shares

Cash Earnings Per Share (Rs.) 115.00 66.64PAT + Depreciation / OutstandingShares

Price/Earnings Ratio 16.38 18.37 Market Price / Basic EPS

Dividend Payout Ratio 0.05 0.06 Proposed dividend / Net Income

Operating Income to Profit After Tax 2.32 3.21 (Net Sales - COGS) / PAT

Investments to Net Worth 0.61 0.34 Investments / Shareholders' funds

Investments to Capital Employed 0.57 0.32Investments / Shareholders' funds+ Loan funds

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InterpretationLow Debt Equity Ratio is good from a banker's point of view because their interests are better

protected in the event of a business decline. It should reduce its dependancy on current liabilityand probably could finance from long term debt

The company has taken out a large amount of cash and has put it in producing more goods andinvesting highly thereby generating more income, while keeping the ratio greater than 1 implyingthe company can meet short-term debt obligations without any stress

The ratio has increased due to the increase in the sales.It has reduced implies that the company has been able to convert the finished goods into salesfaster than it used to

The ratio has increased slightly owing to the increase in revenue generated by the company

The ratio has increased slightly owing to the increase in revenue generated by the companyThe operating cycle has reduced means that the inventory is turning into sales faster and thedebts are collected more efficientlyThe Gross Profit ratio has gone up marginally in the financial Yr.2010-11.It indicates a meagrerise in the way the company controls the cost of its inventory and the manufacturing of its

products.There hasnt been much increase in the margin inspite of the increase in the sales which implesthe cost of goods sold are increasing in proportionThe Net Profit Margin is ver low which means that the selling and administrative expenses islarge and companies need to cut on that

There has been a reduction in the SGA expenses which is reflected in the Net Profit margin

UKI

The company is generating enough profit to pay the interest. The ratio is very high because thecompany is equity driven and has very small debt on its books. The high difference can becontributed to the high profit because of the increase in sales which implies that the companyis doing very well

Higher ratio implies that the debts are collected more efficiently and it can also be contributedto the increase in sales.

The ratio has increased because the purchases have gone up significantly and the sundrycreditors have gone down. It also shows that the company is repaying its debt faster

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Rs. In Lakhs Rs. In Lakhs

I. Sources of Funds

1 Shareholders' Funds(a) Share Capital 3424.35

(b) Reserves & Surplus 59447.1

62871.452 Loan Funds

(a) Secured Loans 31205.11

(b) Unsecured Loans 34179.44

65384.553 Deferred Tax Adjustments

Deferred Tax Liabilities(Net) 2016.83

Total 130272.83

II. Application of Funds

1 Fixed Assets(a) Gross Block 125641.14(b) Less: Depreciation and write downs 48748.36(c) Net Block 76892.78

(d) Capital Work in progress, expenditure till date 23383.8

100276.582 Technical Know-how -3 Investments 5850.774 Current Assets, Loans and Advances

(a) Inventories 40607.57(b) Sundry Debtors 37631.61

(c) Cash and Bank Balances 13998.91

(d) Other Current Assets -(e) Loans and Advances 11010.26

103248.35Less: Current Liabilities and Provisions(a) Liabilities 75467.05

(b) Provisions 3635.8279102.87

24145.48

CEATBalance Sheet as at 31 March

Particulars2011

Net Current Assets

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5 Miscellaneous Expenditure not written off Voluntary Retirement Compensation -

130272.83Total

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2010Rs. In Lakhs

3424.35

45413.8

48838.15

39812.43

24701.99

64514.42

1630.38

114982.95

123405.9845867.39

77538.59

1956.1

79494.69-

4266.71

21941.6331870.85

20151.84

-7942.64

81906.96

48905.12

1780.2950685.41

31221.55

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-

114982.95

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Rs. In Lakhs

Sales 298997.2Less: Excise Duty 18249.6

Net Sales 280747.6

Other Income 4214.87

Materials 172825.69

Cost of Traded Goods Sold 16313.64

Personnel 19268.04

Other Expenses 46539.78

Interest 5683.13

Depreciation and write downs 3158.79

Less : Transferred from Revaluation Reserve 468.32

Less : Transferred to Pre-Operative Expenses 2.18

263318.57

Add / (Less) : Decrease / (Increase) in stock -2255.75

Current Tax 7409.05

Short /(Excess) Provision -

Deferred Tax 386.45

Fringe Benefit Tax -

Nominal value per share (Rs.)

Net Profit (Rs. In Lakh)Weighted average number of Shares (In Lakhs)

Transfer to General Reserve

Proposed DividendCorporate Dividend Tax thereon

Balance Carried to Balance SheetNotes forming part of the Financial Statements

Basic and diluted Earnings Per Share (Rs.)

Profit available for appropriation

CEATProfit and Loss Account for the year ended 31

Particulars2011

Income

Expenditure

Operating Profit before taxation and exceptional items

Taxation

Profit after taxAdd : Balance brought forward

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2010Rs. In Lakhs Rs. In Lakhs

261122.824473.88

236648.92

4913

284962.47 241561.92

170428.51

10664.56

16069.27

39765.1

6969.81

3452.02

876.94

13.35

246458.98

-1179.83

261062.82 245279.1523899.65 -3717.23

9.94

-1188.55

-1100.03

172.58

7795.5 -2106.0616104.15 -1611.17

10844.4 12455.57

26948.55 10844.41615 -

1369.74 -232.79 -

23731.02 -

47.03 -4.7110 10

26948.55 10844.4342.43534 342.427

arch

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Financial Ratios 2011 2010

Debt-Equity Ratio 1.040 1.32

Current Ratio 1.31 1.62

Quick Ratio 0.79 1.18

Interest Coverage Ratio 4.21 -0.53

Debt Service Coverage Ratio 0.63 0.28

Inventory Turnover 6.14 8.44

Creditors Turnover 4.59 6.39

Current Assets Turnover 2.72 2.89

EBIT to Net Sales 0.09 -0.02

Return on Capital Employed 16.99% 4.73%

Return on Equity 42.86% 22.20%

Return on Net Worth 42.86% 4.49%

Earnings Per Share (Rs.) 78.70 31.67

Cash Earnings Per Share (Rs.) 87.92 41.75

Price/Earnings Ratio 1.84 1.10

Dividend Payout Ratio 0.05 0.00

Operating Income to Profit After Tax 3.29 4.67

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Formulae

Long term Debt / Total Shareholder's

Equity

Current Assets / Current Liabilities

(Cash + Sundry Debtors) / (CurrentLiabilities)

EBIT / Interest Payment) / (Interest Payment + Total

COGS / Avg Inventory

Purchases / Avg Sundry Creditors

Revenue / Avg Total Assets

EBIT / Net Sales

(PAT + Interest) / Equity + Loan funds

PAT / Equity Share CapitalPAT / Equity + Preference ShareCapital

PAT / Outstanding Shares

PAT + Depreciation / OutstandingShares

Market Price / Basic EPS

Proposed dividend / Net Income

(Net Sales - COGS) / PAT

CEAT

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ANALSIS

D/E ratio has decreased YoY.This implies that the financial claim of the creditors is not great andthe company is well placed.As company's ROI is increasing YoY,it can afford to have some moredebt than it has if the need be.

Relative gap b/w current assets and current liabilities is decreasing.Although it's not that big aconcern at the moment,Company must ensure that it does not face any liquidity concerns in thefuture.

Quick Ratio has fallen in 2010 mainly due to almost doubling of current liabilities.Ideally,quick ratioshould be 1:1.

Increase in this ratio indicates better capability of the company to fulfill its interest obligationwhen compared to the previous year.

DSCR has increased more than twice due to the huge increase in profits in 2010.

Inventory turnover has decreased mainly due to increase in levels of average inventory.(Inventoryhas almost doubled in 2010.)

A low turnover ratio reflects liberal credit terms granted by suppliers.

Increase in sales has been offset by the increase in current assets.

Increase in this ratio shows profits from day to day operations of the company are increasing whichis a good sign.

High ROCE shows efficient use of capital employed.

Profits have almost doubled as the economy started coming out of recession.

Since there are no preference shares,Equity and net worth are the same.

Profit available to equity shareholders on a per share basis has more than doubled.

Cash earning available to equity shareholders on a per share basis has more than doubled which isa very good sign.

Even though EPS has more than doubled,P/E ratio still increased due to high increase in price of theshare.

In 2009,company din't pay any dividend as economic situation was bad.As the conditions startedimproving,company paid dividend in 2010.

OI to PAT has decreased which is a good sign.