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Financial Statement Analysis Of Infosys Technologies Finance Essay

Infosys Technologies Limited (NASDAQ: INFY, BSE: 500209) is an information technology services company headquartered in Bangalore, India. Infosys is one of the largest IT companies in India, a global leader in the "next generation" of IT and consulting with revenues of over ₨222.72 billion (FY 10).

Infosys and its subsidiaries have 114,822 employees as on June 30, 2010 [1] . Infosys has a global footprint with 63 offices (across 28 countries) and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan.

Infosys offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing.

Infosys takes pride in building strategic long-term client relationships. Over 97% of our revenues come from existing customers (FY 10).

History

Infosys was founded by seven entrepreneurs N R Narayana Murthy, Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora with N. S. Raghavan officially being the first employee of the company on 2 July 1981. Founders started the company with an initial investment of just Rs.10, 000. The company was incorporated as "Infosys Consultants Pvt Ltd." in Model Colony, Pune as the registered office.

Infosys headquarters in Bangalore, India (left). Infosys boosts of having the biggest corporate university, which located on its Mysore campus (right).

For the first time in 1993, Infosys went public. Interestingly, Infosys IPO was under subscribed but it was bailed out by US investment banker Morgan Stanley which picked up 13% of equity at the offer price of Rs. 95 per share. The share price surged to Rs. 81,000 by the year 1999 and by the year 2000 Infosys's shares touched Rs. 1, 56,000 before the catastrophic incident of 9/11, changed all that.

According to Forbes magazine, since listing on the Bombay Stock Exchange till the year 2000, Infosys' sales and earnings compounded at more than 70% a year. In the year 2000, President of the United States Bill Clinton complimented India on its achievements in high technology areas citing the example of Infosys.

In 2001, it was rated Best Employer in India by Business Today. Infosys was rated best employer to work for in 2000, 2001, and 2002 by Hewitt Associates. In 2007, Infosys received over 1.3 million applications and hired fewer than 3% of applicants.

Infosys won the Global MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004 and 2005, being the only Indian company to win this award and is inducted into the Global Hall of Fame for the same.

Infosys Technologies Limited

Type

Public

BSE: 500209

NASDAQ: INFY

Industry

IT services

IT consulting

Founded

2nd July, 1981

Founder(s)

N R Narayana Murthy

Nandan Nilekani

N. S. Raghavan

Kris Gopalakrishnan

S. D. Shibulal

K. Dinesh

Ashok Arora

Headquarters

Bangalore, Karnataka, India

Key people

N R Narayana Murthy

(Chairman)

Kris Gopalakrishnan

(CEO & MD)

S. D. Shibulal

(COO & Director)

Products

Finacle

Services

Information technology consulting services, solutions and outsourcing.

Revenue

▲ $4.804 billion (31st March, 2010)[1]

Operating income

▲ 1.18€ billion (2010)[1]

Profit

▲ 1.06€ billion (2010)[1]

Total assets

▲ 4.96€ billion (2010)[1]

Total equity

▲ 4.33€ billion (2010)[1]

Employees

113,796 (2010)[2]

Divisions

Infosys BPO

Infosys Consulting

Infosys Public Services

Infosys Australia

Infosys Brazil

Infosys China

Infosys Mexico

Infosys Sweden

Website

Infosys.com

Global offices

Asia Pacific

India - Bangalore, Pune-Maharashtra, Bhubaneswar, Chandigarh, Chennai, Gurgaon, Hyderabad, Jaipur, Mangalore, Mumbai, Mysore, New Delhi, Thiruvananthapuram

Australia - Melbourne, Sydney and China - Beijing, Shanghai

Further information: Infosys China

Hong Kong - Hong Kong, Japan - Tokyo, Mauritius - Mauritius, New Zealand - Wellington, UAE - Sharjah, Philippines - Taguig City, Fiji Island - Suva and Thailand - Bangkok

North America

Canada - Toronto, USA - Atlanta (GA), Bellevue (WA), Bridgewater (NJ), Charlotte (NC), Southfield (MI), Fremont (CA), Houston (TX), Glastonbury (CT), Lake Forest (CA), Lisle (IL), New York, Phoenix (AZ), Plano (TX), Quincy (MA), Reston (VA) and Mexico - Monterrey

Europe

Czech Republic - Brno, Belgium - Brussels, Denmark - Copenhagen, Finland - Helsinki, France - Paris, Germany - Frankfurt, Stuttgart, Italy - Milano, Norway -Oslo, Poland - Łódź, The Netherlands - Amsterdam, Spain - Madrid, Burgos, Sweden - Stockholm, Switzerland - Zürich and UK - Canary Wharf, London

South America

Brazil - Belo Horizonte

Infosys, Pune campus

Movie Theatre, Mysore campus

Swimming pool & spa, Bangalore campus

Mangalore campus

Bangalore campus

Infosys Mysore campus

Dancing fountains, Bangalore campus

Pune campus

Swimming pool, Mysore campus

Infosys Chennai main block at Mahindra World City, New Chennai

The integrated Eco-Friendly Block at Chennai, one of the largest in the world

The largest TV screen in Asia, Chennai campus

BPO Building, Bangalore campus

Canteen, Bangalore campus

Financial Statement Analysis

The process of identifying financial strength and weakness of a company by correctly establishing connection between the elements of the balance sheet and the profit and loss account is called financial statement analysis.

There are numerous methods or techniques that are used in analyzing financial statements, for example comparative statements, schedule of changes in working capital, common size percentages, funds analysis, trend analysis, and ratios analysis.

Financial statements are mainly prepared to meet up the external reporting obligation and also for decision making purpose. They act as a principal tool in creating the structure for managerial decisions. However, the information available through the financial statements isn’t an end in itself, as there is no meaningful conclusion which can be drawn out of these statements. However, the information derived from the financial statements is of great use in making decisions during analysis and interpretation of financial statements.

Following are the most important tools and techniques of financial statement analysis:

Horizontal and Vertical Analysis

Ratios Analysis

1. Horizontal and Vertical Analysis:

Horizontal Analysis or Trend Analysis:

Comparison of two or more year's financial data is known as horizontal analysis, or trend analysis. Horizontal analysis is facilitated by showing changes between years in both dollar and percentage form.

Trend Percentage:

Horizontal analysis of financial statements can also be carried out by computing trend percentages. Trend percentage states several years' financial data in terms of a base year. The base year equals 100%, with all other years stated in some percentage of this base.

Vertical Analysis:

Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as well as in dollar form. Each item is stated as a percentage of some total of which that item is a part. Key financial changes and trends can be highlighted by the use of common size statements.

2. Ratios Analysis:

Accounting Ratios Definition, Advantages, Classification and Limitations:

The ratios analysis is the most powerful tool of financial statement analysis. A ratio simply means one number expressed in terms of another. A ratio is a statistical yardstick by means of which relationship between two or various figures can be compared or measured. Ratios can be found out by dividing one number by another number. Ratios show how one number is related to another.

Profitability Ratios:

Profitability ratios measure the results of business operations or overall performance and effectiveness of the firm. Some of the most popular profitability ratios are as under:

Gross profit ratio

Net profit ratio

Operating ratio

Expense ratio

Return on shareholders’ investment or net worth

Return on equity capital

Return on capital employed (ROCE) Ratio

Dividend yield ratio

Dividend payout ratio

Earnings Per Share Ratio

Price earnings ratio

Liquidity Ratios:

Liquidity ratios measure the short term solvency of financial position of a firm. These ratios are calculated to comment upon the short term paying capacity of a concern or the firm's ability to meet its current obligations. Following are the most important liquidity ratios.

Current ratio

Liquid / Acid test / Quick ratio

Activity Ratios:

Activity ratios are calculated to measure the efficiency with which the resources of a firm have been employed. These ratios are also called turnover ratios because they indicate the speed with which assets are being turned over into sales. Following are the most important activity ratios:

Inventory / Stock turnover ratio

Debtors / Receivables turnover ratio

Average collection period

Creditors / Payable turnover ratio

Working capital turnover ratio

Fixed assets turnover ratio

Over and under trading

Long Term Solvency or Leverage Ratios:

Long term solvency or leverage ratios  convey a firm's ability to meet the interest costs and payment schedules of its long term obligations. Following are some of the most important long term solvency or leverage ratios.

Debt-to-equity ratio

Proprietary or Equity ratio

Ratio of fixed assets to shareholders funds

Ratio of current assets to shareholders funds

Interest coverage ratio

Capital gearing ratio

Over and under capitalization

Financial-Accounting- Ratios Formulas:

A collection of financial ratios formulas which can help you calculate financial ratios in a given problem.

Limitations of Financial Statement Analysis:

Although financial statement analysis is highly useful tool, it has two limitations. These two limitations involve the comparability of financial data between companies and the need to look beyond ratios.

Advantages of Financial Statement Analysis:

There are various advantages of financial statements analysis. The major benefit is that the investors get enough idea to decide about the investments of their funds in the specific company. Secondly, regulatory authorities like International Accounting Standards Board can ensure whether the company is following accounting standards or not. Thirdly, financial statements analysis can help the government agencies to analyze the taxation due to the company. Moreover, company can analyze its own performance over the period of time through financial statements analysis.

Financial Performance:

A study of financial performance comprises of analyzing the company’s financial position by using 7 different tools of financial management. They are as under

Comparative balance sheet technique

Common size balance sheet technique

Trend analysis

Cash flow Analysis

Fund flow Analysis

Break even Analysis

Ratio Analysis

COMPARATIVE BALANCE SHEET

The percentage analysis of increases and the decreases in the corresponding items in comparative financial statements is called horizontal analysis. Horizontal analysis involves the computation of amount changes and percentage changes from previous year to the current year. The amount of each item on the most recent statement is compared with corresponding item on one more recent statement is compared with the corresponding item on one more earlier statement.

COMMON SIZE BALANCE SHEET

Common size statements involve expressing comparison in percentages. Common size statement may be prepared to compare percentages of current period with past periods to compare individual business, or compare one business with industry percentage by trade associations and financial information services.

A company financial statement that displays all items as percentage of a common base figure, this type of financial statement allows for easy analysis between companies or between time periods of a company.

The values on the common size statement are expressed as percentages of a statement component such as revenue. While most firms don’t report their statements in common size, it is beneficial to compute of you want to analyze two or more companies of differing size against each other.

Formatting financial statements in this way reduces the bias that can occur when analyzing companies of differing sizes. It also allows for the analysis for the analysis of a company over various time periods, revealing, for example, what percentage of sales is cost of goods sold and how that value has changed over time.

TREND ANALYSIS

The concept of collecting information and attempting to spot a pattern, or trend, in the information is called trend analysis.

In project management trend analysis is a mathematical technique that uses historical results to predict future outcome. This is achieved by tracking variances in cost and schedule performance. In this context, it is a project management quality control tool.

Although trend analysis is often used to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned.

Today, trend analysis often refers to the science of studying changes in social patterns, including fashion, technology and the consumer behaviour.

Using the previous year’s data of business enterprise, trend analysis can be done to observe percentage changes over time in selected data in trend analysis, percentage changes are calculated for several successive years instead of between two years.

CASH FLOW STATEMENT

A cash flow statement discloses the net increase or decrease in cash during accounting period. It provides information about the flow of cash into and out of a company. A cash flow statement focuses on various activities and items which bring about changes in the cash balance between two balance sheet dates. A cash flow statement has classified cash flows into three categories

Operating activities

Investing activities

Financial activities

FUND FLOW STATEMENT

The net of all cash inflows and outflows in and out, of various financial assets. Fund flow is usually measured usually measured on a monthly or quarterly basis. The performance of an asset or fund is not taken into account, only share redemptions (outflows) and share purchases (inflows).

Net inflows create excess cash for managers to invest, which theoretically creates demand for securities such as stocks and bonds.

Investors and market analysts watch fund flows to gauge investor sentiment within specific asset classes, sectors, or for the market as a whole. For instance, if net fund flows for bonds funds during a given month is negative by a large amount, this would signal broad-based pessimism over the fixed-income markets.

Fund flow statement is a statement of changes in financial position which can be prepared using different concepts of funds as a basis. For instance statement changes in financial position may focus on changes in working capital, cash, or total financial resources of a business enterprise.

BREAK EVEN ANALYSIS

Break-even analysis is a technique widely used by production management and management accountants. It is based on categorizing production costs between those which are “Variable” (costs that change when the production output changes) and those that are “fixed” (costs not directly related to the volume of production).

Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes neither a profit nor a loss (the “break-even point”).

It is an important medium through which one can have an insight into effect of profitability due to the variations in cost and sales. It enables the entrepreneur to take effective decision. It entails a company to know where it stands at any level of output. Cost reduction is the urgent need of the industry. The industry will have to learn live with global cycle while simultaneously improving its own cost competitiveness. The companies can take the expansion programme in the face of large margin of safety.

ANALYSIS AND INTERPRETATIONS

COMPARATIVE BALANCE SHEET FOR THE YEAR 2006 AND 2007

Particulars

Amount (Rs crore )

 

March ' 06

March ' 07

Difference

%

Sources of funds

Owner's fund

Equity share capital

138

286

148

107.25

Reserves & surplus

6,759.00

10,876.00

4117

60.91

Loan funds

Secured loans

-

-

-

-

Unsecured loans

-

-

-

-

Total

6,897.00

11,162.00

4,265.00

61.84

Uses of funds

Fixed assets

Gross block

2,837.00

3,889.00

1052

37.08

Less : revaluation reserve

-

-

-

-

Less : accumulated depreciation

1,275.00

1,739.00

464

36.39

Net block

1,562.00

2,150.00

588

37.64

Capital work-in-progress

571

957

386

67.60

Investments

876

839

-37

-4.22

Net current assets

Current assets, loans & advances

6,105.00

9,040.00

2935

48.08

Less : current liabilities & provisions

2,217.00

1,824.00

-393

-17.73

Total net current assets

3,888.00

7,216.00

3328

85.60

Miscellaneous expenses not written

-

-

-

-

Total

6,897.00

11,162.00

4,265.00

61.84

Interpretation: Comparative Balance Sheet for 2006 and 2007 revealed that there is a drastic increase in the items of the balance sheet like Equity share capital (107.25%), Reserves & surplus (60.91%) , Gross block (37.08%), accumulated depreciation (36.39%), Net block (37.64%), Capital work-in-progress (67.60%), Current assets, loans & advances (48.08%), Total net current assets (48.08%).At the same time there is a decrease in the Investments (-4.22%), current liabilities & provisions (-17.73%).

This comparative study helps us conclude that there is a favorable growth in the company.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2007 AND 2008

Particulars

Amount(Rs crore )

 

March ' 07

March ' 08

Difference

%

Sources of funds

Owner's fund

Equity share capital

286

286

0

0.00

Reserves & surplus

10,876.00

13,204.00

2328

21.40

Loan funds

Secured loans

-

-

-

-

Unsecured loans

-

-

-

-

Total

11,162.00

13,490.00

2,328.00

20.86

Uses of funds

Fixed assets

Gross block

3,889.00

4,508.00

619

15.92

Less : revaluation reserve

-

-

-

-

Less : accumulated depreciation

1,739.00

1,837.00

98

5.64

Net block

2,150.00

2,671.00

521

24.23

Capital work-in-progress

957

1,260.00

303

31.66

Investments

839

964

125

14.90

Net current assets

Current assets, loans & advances

9,040.00

12,326.00

3286

36.35

Less : current liabilities & provisions

1,824.00

3,731.00

1907

104.55

Total net current assets

7,216.00

8,595.00

1379

19.11

Miscellaneous expenses not written

-

-

-

-

Total

11,162.00

13,490.00

2,328.00

20.86

Interpretation:

Comparative Balance Sheet for 2007 and 2008 revealed that there is a drastic increase in the items of the balance sheet like Reserves & surplus (21.40%) , Gross block (15.92%), accumulated depreciation (5.64%), Net block (24.23%), Capital work-in-progress (31.66%), Investments (14.90%), Current assets, loans & advances (36.35%), current liabilities & provisions (104.55%) Total net current assets (19.11%).

This comparative study helps us conclude that there is a favorable growth in the company.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2008 AND 2009

Particulars

Amount(Rs crore )

 

March ' 08

March ' 09

Difference

%

Sources of funds

Owner's fund

Equity share capital

286

286

0

0.00

Reserves & surplus

13,204.00

17,523.00

4319

32.71

Loan funds

Secured loans

-

-

-

-

Unsecured loans

-

-

-

-

Total

13,490.00

17,809.00

4319

32.02

Uses of funds

Fixed assets

Gross block

4,508.00

5,986.00

1478

32.79

Less : revaluation reserve

-

-

-

-

Less : accumulated depreciation

1,837.00

2,187.00

350

19.05

Net block

2,671.00

3,799.00

1128

42.23

Capital work-in-progress

1,260.00

615

-645

-51.19

Investments

964

1,005.00

41

4.25

Net current assets

Current assets, loans & advances

12,326.00

15,732.00

3406

27.63

Less : current liabilities & provisions

3,731.00

3,342.00

-389

-10.43

Total net current assets

8,595.00

12,390.00

3795

44.15

Miscellaneous expenses not written

-

-

-

-

Total

13,490.00

17,809.00

4,319.00

32.02

Interpretation:

Comparative Balance Sheet for 2008 and 2009 revealed that there is a drastic increase in the items of the balance sheet like Reserves & surplus (32.71%) , Gross block (32.79%), accumulated depreciation (19.05%), Net block (42.23%), Investments (4.25%), Current assets, loans & advances (27.63%), Total net current assets (44.15%).

At the same time there is a decrease in the Capital work-in-progress (-51.19%), current liabilities & provisions (-10.43%).

This comparative study helps us conclude that there is a favorable growth in the company.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2009 AND 2010

Particulars

Amount(Rs Crore )

 

March ' 09

March ' 10

Difference

%

Sources of funds

Owner's fund

Equity share capital

286

287

1

0.35

Reserves & surplus

17,523.00

21,749.00

4226

24.12

Loan funds

Secured loans

-

-

-

-

Unsecured loans

-

-

-

-

Total

17,809.00

22,036.00

4,227.00

23.74

Uses of funds

Fixed assets

Gross block

5,986.00

3,779.00

-2207

-36.87

Less : revaluation reserve

-

-

-

-

Less : accumulated depreciation

2,187.00

-

-

-

Net block

3,799.00

3,779.00

-20

-0.53

Capital work-in-progress

615

409

-206

-33.50

Investments

1,005.00

4,636.00

3631

361.29

Net current assets

Current assets, loans & advances

15,732.00

17,242.00

1510

9.60

Less : current liabilities & provisions

3,342.00

4,030.00

688

20.59

Total net current assets

12,390.00

13,212.00

822

6.63

Miscellaneous expenses not written

-

-

-

-

Total

17,809.00

22,036.00

4,227.00

23.74

Interpretation:

Comparative Balance Sheet for 2009 and 2010 revealed that there is a increase in the items of the balance sheet like Equity share capital (0.35%), Reserves & surplus (24.12%) , Investments (361.29%),Current assets, loans & advances (9.60%), current liabilities & provisions (20.59%), Total net current assets (6.63%).

At the same time there is a decrease in the Gross block (-36.87%), Net block (-0.53%) and Capital work-in-progress (-33.50%).

This comparative study helps us conclude that there is a favorable growth in the company.

RATIO ANALYSIS

Current Ratio = Current Assets / Current Liabilities

Current Ratio

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Current Asset

17242

15732

12326

9040

6105

Current Liability

4030

3342

3731

1824

2217

Ration

4.28

4.71

3.30

4.96

2.75

The current ratio of the company is on an average steadily increasing from 2.75 in 2006 to 4.28 in 2010. The current ratios ascertained with the help of relevant financial figures. The ideal current ratio is 2:1. From the above table we can conclude that the current ratio is more than the ideal ratio. This is a good sign for the company’s liquidity solvency position.

FIXED ASSETS TURNOVER RATIO = NET SALES(Operating Income)/FIXED ASSETS

Fixed Asset Turnover Ratio

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Operating income

21140

20264

15648

13149

9028

Net block/Net Fixed Asset

3779

3799

2671

2150

1562

Ratio

5.59

5.33

5.86

6.12

5.78

Fixed Assets turnover ratio is the ratio between fixed assets and turnover. It indicates as to what extent the fixed assets of a concern have contributed to sales. The standard fixed assets turnover ratio is 5 times, which indicates better utilization of fixed assets and vice versa.

The Fixed assets turnover ratio is above 5 i.e. 5.78 in 2006 to 5.59 in 2010. The Fixed assets turnover ratios ascertained with the help of relevant financial figures. The ideal current ratio is 5:1. From the above table we can conclude that the fixed assets turnover ratio is more than the ideal ratio. This is a good sign for the company.

Operating Profit Ratio = Operating profit / Operating Income*100

Operating Profit Ratio

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Operating profit

7369

6908

4964

4226

2990

Operating income

21140

20264

15648

13149

9028

Ratio (%)

34.86

34.09

31.72

32.14

33.12

Operating Profit Ratio is the ratio between operating profit and operating income. Operating profit is the net profit which is the excess of net sales over operating cost. The ideal operating profit ratio is 10%.

The Operating Profit Ratio is the ideal above 10% i.e. 33.12% in 2006 to 34.86 % in 2010. The Operating Profit ratios ascertained with the help of relevant financial figures. The ideal current ratio is 1:10. From the above table we can conclude that the Operating Profit ratio is more than the ideal ratio. This is a good sign for the company.

Earnings per share = Operating profit/ Number of equity shares

Operating profit per share

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Operating profit (Cr)

7369

6908

4964

4226

2990

Number of equity shares outstanding (Lacs)

5728.3

5728.3

5719.96

5712.1

2755.55

Operating profit per share (Rs)

128.64

120.59

86.78

73.98

108.51

Operating Profit per share is the ratio between operating profit and total number of shares i.e. operating profit after taxes and preference dividend and the number of equity shares.

The Operating Profit per share is Rs. 108.51 in 2006 to Rs. 128.64 in 2010. The Operating Profit per share ascertained with the help of relevant financial figures. This is a good sign for the company.

Dividend per share = Equity dividend / Number of equity shares outstanding (Lacs)

Dividend per share

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Equity dividend (Cr)

1434

1345

1902

649

1238

Number of equity sharesoutstanding (Lacs)

5728.3

5728.3

5719.96

5712.1

2755.55

Dividend per share (Rs)

25.03

23.48

33.25

11.36

44.93

Dividend per share is the ratio between Equity dividend and total number of shares.

The Dividend per share is Rs. 44.93 in 2006 to Rs. 25.03 in 2010. The Dividend per share ascertained with the help of relevant financial figures. This is a good sign for the company.

Owners fund as % of total source = Total Owner's Fund/ Total Source * 100

Owners fund as % of total source

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Equity share capital

287

286

286

286

138

Reserves & surplus

21749

17523

13204

10876

6759

Total Owner's Fund

22036

17809

13490

11162

6897

Total Source

22036

17809

13490

11162

6897

Percentage

100.00

100.00

100.00

100.00

100.00

Owners fund as percentage of total source the percentage of total source which owner has funded. The ideal for Owners fund as percentage of total source is 1:1, which indicates least utilization of other source of fund and vice versa.

Owners fund as percentage of total source is 100% from 2006 to 2010. The Owners fund as percentage of total source ascertained with the help of relevant financial figures. From the above table we can conclude that the Owners fund as percentage of total source is more than the ideal ratio.

Free reserves per share = Reserves & surplus / Number of equity shares outstanding (Lacs)*100

Free reserves per share

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Reserves & surplus

21749

17523

13204

10876

6759

Number of equity sharesoutstanding (Lacs)

5728.3

5728.3

5719.96

5712.1

2755.55

Free reserves per share (Rs)

379.68

305.90

230.84

190.40

245.29

The free reserves per share is the ratio between Reserves & Surplus and total number of shares.

The free reserves per share is Rs. 245.29 in 2006 to Rs. 379.68 in 2010. The Dividend per share ascertained with the help of relevant financial figures shows there is an increase in reserves and surplus over years, this is a good sign for the company’s financial position and share holder trust.

Long term assets / total Assets

Long term assets / total Assets

March ' 10

March ' 09

March ' 08

March ' 07

March ' 06

Net block

3779

3799

2671

2150

1562

Capital work-in-progress

409

615

1260

957

571

Investments

4636

1005

964

839

876

Long Term Assets

8824

5419

4895

3946

3009

Current assets, loans & advances

17242

15732

12326

9040

6105

Total Asset

26066

21151

17221

12986

9114

Long term assets / total Assets

0.34

0.26

0.28

0.30

0.33

The Long term assets per total assets are 0.33 in 2006 to Rs. 0.34 in 2010. The Long term assets per total assets ascertained with the help of relevant financial figures shows there is an increase in Long term assets over years; this is a good sign for the company’s long term position.

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