ravi barot

“Let’s Build Better Roads”

SHREE T.S. PATEL COLLEGE OF M.B.A. 1


HISTORY OF COMPANY

The company was establishing in 1974. At that time in the India, road construction

and other related to equipment work was going on. At that time the owner the “Anilbhai Patel”

had thought that why they can’t establish one branch in “Mehsana” in G.I.D.C related to produce

these type of machinery or equipment and his thought applied and established this company

“APOLLO EARTHMOVERS LTD” in “Mehsana”.

The Group started business operation in 1965 by establishing Apollo Engineering

Company for water welt drilling constructs over a period of time, the company integrated

backwards into production of drilling rigs. It has also started manufacturing of trailers and

agriculture equipments.

An Apollo Industrial Product Private Limited had set up for manufacture mechanical

pavers finisher and hot mox plants. The company’s business grew steadily and its product earned

a good reputation in the market

In 1986 the Apollo Earthmover Private Limited termed with Gujarat Industrial

Investment Corporation (GIIC) to set up Gujarat Apollo Equipments Limited (G.A.E.L.).The

company started manufacturing drum type asphalt plant and hydrostatic sensor paver finishers

under a technical collaboration arrangement with Barber Greene, USA.Apollo earthmovers

Limited has been entered in stock exchange just from 19th June 2001.Apollo Earthmover Limited

company is ISO 9001:2000 certified.



DEVELOPMENT OF COMPANY

The company today offers almost the entire range of equipment that lends them

selves admirably to the road building industry.

The company investment in R&D and quality manpower help in continuous

improvement in product quality that more then meets the existing quality standards of ministry of

surface transport. Indian roads congress irrigation projects. The Apollo group is a Gujarat

industrial house with a business track record of 35 yrs. Their main interests are in,

Road Construction Equipment

Road Construction

Filtration System

Ship Breaking.

For 35 year Apollo have retained leadership by offering state of the art construction

equipment developed through in house R &D and strategic technology tie-ups Apollo company

today offers the entire range of road construction equipment that helps in building roads, which

are safe, durable & economical. Apollo’s mission is to retain the leadership through continuous

R &D and world class technology availed through technology transfers.

They believe that customer satisfaction is achieved through quality of products &

procedure.



Reason for select this (G.I.D.C.) location for firm:

In those days there was one rule that the company should be in premises. And

electricity was also less costly. The transportation actively very easy because it is established in

the G.I.D.C. The third reason for this location is the mainly this locations very easy to get more

labor for production of product.

Reason for select the name of the company” Apollo Earthmovers

Ltd.”

When the company was started at that time the satellite name was “Apollo” was

fallen down on the earth approximately in 1982, so the decider has thought that the name should

be kept the Apollo. And the company producing the road construction or related to help in earth

work so the company have decide the company’s name as “APOLLO EARTHMOVER LTD”



COMPANY PROFILE

Name of the company

APOLLO EARTHMOVERS LTD

Establishment year

The “APOLLO EARTHMOVERS LTD” was established in1974.

Registered Office

The firm’s registered office is located in

212-A, G.I.D.C.

ESTATE,

Mehsana-384002

North Gujarat

Ph- (02762) 252362

Fax: 251337

Banker

BANK OF BARODA

Auditor

M.M.SALVI & CO.

Chartered Accountants, Mahesana.

Production Unit

The production of this unit is located at


“Let’s Build Better Roads”APOLLO EARTHMOVERS LTD

212-A, G.I.D.C.

ESTATE,

Mehsana-384002

Board of Directors

Ajitkumar. T. Patel. Chairman & Managing Director

Anand. A. Patel. Executive Director

Mitul A.Patel Executive Director

Manibhai. V. Patel Director

Rashminbhai. H. Patel Director

Dharmeshbhai. M. Mashru Director

Tejas. M. Patel. Director

Corporate Office

“Parishram”,

5/B, Rashmi Society, Mithakhali Circle,

Navrangpura,

Ahmedabad- 380009.



Vision of the company

To increase turn over of the product. And to establish prestige of number one at the

world level

Mission of the company

The company’s goal is to retain the leadership by designing & building the state of

the art equipment, through technology that is proven and is the best in the world, availed by

license and joint venture with pioneers and leaders in respective field. To make it possible to

give India and the developing world.

With the P’s process, product and people, well and truly in place, Apollo shall be the

supplier by choice of the road construction industry.



SIZE & FORM ORGANISATION

Generally size of the unit is based on the total investment & total employment

made by particular unit. While form of organization is decide on the basis of internal

relationship, authority & responsibility to concerned departments.

Industry can how classified into three categories

(1) small scale industry

(2) medium scale industry

(3) large scale industry

An industry unit said to be large scale unit which invest capital in plant & machinery

APPOLO EARTHMOVERS LTD.

More than 1 crore & use power and also employed workers more than small scale &

medium scale industry.

It is a small industry which is obvious following are the main forms of organization.


“Let’s Build Better Roads”EXPERTISE

We are in the road construction industry for a long time - from day 1 of the

mechanization of road construction. From a modest beginning in the year 1972, the group today

offers almost the entire range of equipment that lend themselves admirably to the bituminous

road building industry. One may ask - are you still doing the same thing even 30 years later? The

answer is yes but with one important difference. Today we are doing it better and are moving

forward with the firm belief that our best is yet to come.

The reason- we are constantly on the job to improve on the quality of our products &

services and avoid "waste".

Our definition of "waste" is simple. Any activity that does not add value to the

customer is a waste.We keep abreast of the changes and aim to maintain our leadership through

innovation and world class technology. Value engineering is a way of life at Apollo. No wonder

the advances in Production Engineering you notice in an Apollo equipment is rarely matched by

competition. Advances that help you complete the job faster with high cost savings.

Indigenisation of the technologies for optimum utilization in Indian conditions is the

focus of our design department. Apollo's investment in R & D and quality manpower helps in

continuous improvement in product quality that more than meets the exacting quality standards

of Ministry of Surface Transport, Indian Roads Congress, International Consultants and

customers.

Yes, we have been in this business for a long time, 30 years long. Thirty years during

which we have earned an enviable reputation with the customers for high quality road

construction equipment , prompt after sales service and a customer friendly approach.

No stopping but. We will continue to build on our strengths-rich experience, accent on R & D, customer orientation and adaptability to change. We will keep on improving, Refining,Changing, Leading the way. Apollo - the best piece of road construction equipment you'll ever own.


“Let’s Build Better Roads”Organization chart


M.DAJIT.T.PATEL

DGMMITUL. A. PATEL

Production ManagerS.K.Patel

Roller prod.Mr.Prajapati

DM ProdJayesh Dave

Sales force & Time keeper

Marketing Executive

Marketing manager

Bpd Prod.Jignesh Modi

DesigningBabulal /Tripathi

Asst.Devang/chirag

Mnts & TrainingM.G.Darji

Gen. MntsVasuji

Electric depart.Raju & team

PLNG, S&S,K,R.SonI

Asst.Bela Raturi

Service team.

Finance DeptFin. Manager

AccountantB.P.Dave

TaxesV.L.Desai

Purchase manager

Anil M Patel

Purchase Assistant

R.K.Sharma

StoreK.K.Patel


QUALITY POLICY


WE AT APOLLO EARTHMOVERS LIMITAD shall strive to enhance customer

satisfaction by manufacturing product and excellent Quality with customer requirement in focus

quick delivery and providing nation wide services.

We shall continuously improve our quality management system, customer satisfaction

and bring new technology to the customer.

PRODUCTS

Stationary Drum Mix Plants. (DM Series 30 to 150tph)

Mobile Drum Mix Type Asphalt Plants (Mobimix Series 20 to 90tph)

Wet Mix Macadam Plants. (wm Series 60 to 300 tph)

Bitumen Pressure Distributor ( Atm Series 3000 to 10000 liters

Mechanical Broomer.

Hydraulic Broomer.

Tandem Vibratory Roller.

Wet dust Collector.

Chips Spreader

Mechanical Paver Finisher

Hydrostatic Paver Finisher

Wet Mix Paver Finisher

Kerb Laying Machine

Job Work Of;- Mahindra & Mahindra, Sicom (ITALY)



PRICING POLICY

Price is the main base of the marketing department. Pricing policy is most important

feature in any organization. Without prepare pricing policy organization can not declared the

price of the product. The Apollo Earthmover Ltd is the Sole proprietor firm. The goal of the

company is to provide better quality of the product with reasonable profit.

DM 60- which most costlier then the other equipment the capacity of the machine is

90-120 ton the price is 30-40 lacs

Mechanical Broomer is cheapest machine of all the product the price is 1.75 lacs.


“Let’s Build Better Roads”MEANING

Financial department is concerned with acquisition of funds and investing those funds

in such sources where earning will be higher. Finance play very important role in the every

company. The process of estimation of fund which is requirement for firm & main source of the

fund is called financial planning.

Management Finance is concerned with funds management or treasury function. It is

the duty of the finance manager to arrange for the funds at competitive rates & terms & advises

on its deployment to maximize share holder’s or owner’s wealth.

STRUCTURE

Managing Director

Chief Accountant

Accountant

Taxes



FUNCTION

Budget Preparation.

Budget Administration.

Cost Allocation.

Account Payable.

Bring benefits.

Grants Administration..

Contract administration.

Billing.

Property Inventory.

General Accounting Records.

Fixed Assets Records.

Custody of Funds.

Cash Flow.

Investment.

Debt Administration.

Risk Management.

Internal Financial Reports.

External Financial Reports.

Statutory Reports.

Tax Reports.

Preparation of Budget, Appropriation of accounts, re-appropriation surrender and

savings.

Control of expenditure & ways & means position.

Audit.

Treasury Administrations.

Administrations of Taxes i.e. Sales Tax, Entertainment tax, Entry Tax etc.

Resource mobilization through loans, Institutional finance, small savings, credit &

investment & public debt.



ACCOUNTING PROCESS

.

SHREE T.S. PATEL COLLEGE OF M.B.A.

Identification of Transaction.

Preparation of Business documents.

Recording of Transaction in Journal.

Posting to Ledger.

Preparation of Unadjusted Trial Balance.

Passing of Adjusted Entries.

Preparation of Adjusted Trial Balance

Profit & Loss Account

Balance Sheet

Fund Flow Statement

16


FINANCIAL INFORMATION

When the company was started at that time the company was initial basis. The

production of goods was less and the sale of the company was also less at that time.

Finance play very important role in the every company. The process of estimation of

fund which is requirement for firm & main source of the fund is called financial planning.

The accountant of the company spares most of the time in making the financial

planning. In Apollo Earthmovers Ltd for requirement of fund the accountant has decided six

monthly or some time yearly forecast of fund.

The company has set targets for each job in terms of money period, time consumed,

and quality assured etc. Apollo Earthmovers Limited makes effective use of fund & collect wild

source of funds. In company financial planning has grater significance.


“Let’s Build Better Roads”Particular Amount(2008)

Paid up Capital 1,20,00,000

Reserve and surplus 195,221,997

Turn over 5,86,689,827

Profit before tax 1,21,763,888

Profit after tax 78,012,088

Earning Per share 65.01

The above table shows the information about finance of the company. The paid up capital of the

company is Rs.1, 20, 00, 000. On other hand the turnover of the company is more than Rs.58.66

cr. That we can see. In the year 2008 the profit before tax of the company was more than 1.21 cr.

And after tax profit was 0.78 cr. Their earning per share is 65.01. In the G.I.D.C, The Company

gets no. 1 prestige in turn over because in the G.I.D.C this is the first in the turnover more then

any other which is situated in G.I.D.C.



ACCOUNTING POLICY

Convention and basis of preparation of financial statements

There financial statements have been prepared on the accrual basis of accounting as

per double entry system, under the historical convention, and in accordance with relevant

presentational requirements of the companies Act, 1956 and in accordance with applicable

accounting standards issued by the institute of chartered Accountants of India.

Fixed Assets

Cost of fixed assets comprises purchase price, duties levies and any directly

attributable cost of bringing the asset to its working conditions for the intended use. Borrowing

costs related to the acquisition or construction of the qualifying fixed assets for the period up to

completion of their acquisition or construction are included in the book value of the assets.

All costs relating to up gradations/enhancements are generally charged off revenue expenditure

unless they bring significant additional benefits of lasting nature.

Convert claimed on fixed assets is reduced from the cost of respective assets.

Impairment of fixed assets

An asset is treated impaired when the carrying cost of the assets exceeds its

recoverable. An impairment loss is changed to profit and loss account in the year in which an

asset is identified as impaired. A previously recognized impairment loss is increased or revered

depending on changes in circumstances. However, the carrying value after reversal is not

increased beyond the carrying value that would have prevailed by charging usual depreciation if

there was no impairment.



Depreciation/ amortization

Depreciation on assets (except intangible assets) is provided in a manner that

amortizes the cost of the assets after commissioning, on the straight-line method at the rates and

in the rates and in the manner prescribed in schedules XIV to the companies, Act, 1956.

Investments

Long-term investments are valued at cost.

Inventories

Inventories are stated at the lower of cost and net realizable value, cost comprise of

expenditure incurred in the normal course of business in bringing such inventories to its location

and includes, where applicable, appropriate overheads based on normal level of activity.

Obsolete slow moving items and provision is made for such inventories. The cost of categories

of inventories is arrived at as follow:

- Store, spares, raw materials and components-at rates determined on first in first out basis.

- Finished goods – at full absorption cost method based on annual average cost of product.

- Packing materials, loose tools and miscellaneous consumables are charged off at the

point of purchase.

A. excise duty on finished goods and custom duty on raw material is accounted for on

clearance of goods from the factory.

B. Credit of excise duty under cenvat scheme on goods purchased is reduced from the cost

of purchase.



Retirement benefits

- Contributions payable, which are under defined contribution scheme and funded

and recognized as year’s expenditure. Contributions under defied benefit schemes, as determined

on the basis of actuarial valuation, are also funded and recognized as year’s expenditure.

- Liability for gratuity determined on basis of actuarial valuation is funded with life

insurance corporation of India under group gratuity ( Cash Accumulation) scheme and annual

premium thereon is paid and accounted for accordingly.

- Provision is made for Leave Encashment benefits based on actuarial valuation and

charged to the profit and loss account.

Revenue Recognition

- Sales of products and services are recognized on dispatch of goods or when the services

are rendered sales are stated at contractual realizable values, and trade discounts.

- Expenses are accounted for on accrual basis and provision is made for all known losses

and liabilities.

- Liquidated damages/penalties are provided for wherever there is a delayed delivery.

- Commission income if any is recognized as per contracts/receipt of credit note.

- Dividend income is recognized when the right to receive dividend is established.

- Interest income is recognized on the time proportion method.

Research and Development:

No such expenditure incurred during the year


“Let’s Build Better Roads”Taxation:

1. Provision for current income tax is made as per working under the income tax act,1961.

2. (a) Deferred tax is recognized as timing differences, being the difference between

taxable income and accounting income that originate in one period and are capable of

reversing in one or more subsequent periods.

(b) Deferred tax assets are recognized only to the extent there is a reasonable certainty of its

realization.

(c) Deferred tax assets arising from temporary timing differences are recognized to the

extent there is reasonable certainly that the assets can be realized in future. A deferred tax

asset on unabsorbed depreciation and carry forward losses is recognized only when there is

virtual certainty that there will be sufficient future taxable income available to realize such

assets.

3. Provision of fringe Benefit Tax(FBT) is made on the basis of expenses incurred on

employees/ other expenses as prescribed under the income tax act, 1961.

Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rate of the date of

transaction or at the exchange rates under forward exchange contracts. Current assets and current

liabilities not covered by forward exchange contracts are translated at the year end exchange

rates and the profit/ loss so determined and also the realized exchange gain/ losses are in the

profit & loss account, except those relating to acquisition of fixed assets which are capitalized.

Gains or losses on foreign exchange rate fluctuations relating to current assets and

liabilities are accounted at the year end.

Contingent liabilities

Contingent liabilities are not provided for in the accounts for in the accounts and are

disclosed separately in notes to accounts.

Borrowing Cost

No such has been made during the year.



BALANCE SHEET AS AT 31 ST MARCH

Mar-07 Mar-08 Mar-09SOURCES OF FUNDSOwners’ s FundEquity Share Capital 12000000 12000000 12000000Share Application Money 0 0 0Preference Share Capital 0 0 0Reserve & Surplus 85576186 117209108 195221997Loan FundsSecured Loans 1473873 9727947 4782592Unsecured Loans 22750296 1619225 19944062Deferred TaxDeferred Tax liabilities 2441617 2574195 2465195Total 124241972 143130475 234413846Application Of FundFixed AssetsGross Block 29807680 34720966 65934638Less: Revaluation Reserve 0 0 0Less: Accumulated Depreciation 12374601 14267802 16331353Net Block 17433079 20453164 49603285Capital Work –in-progress 0 0 0

Investment 52514500 56949353 56914500

Net Current AssetsCurrent Assets Loans & Advance 94536740 147004376 212942059Less: Current Liabilities & Provision 40242347 81276418 85045998Total net Current Assets 54294393 65727958 127896061Miscellaneous expenses not written 0 0 0Total 124241972 143130475 234413846Note:Book Value of Unquoted InvestmentsMarket Value of quoted InvestmentsContingent LiabilitiesNumber of Equity shares outstanding (in lacs)


“Let’s Build Better Roads”PROFIT AND LOSS FOR ENDED 31 ST MARCH

Apollo Earthmovers Ltd Mar-07 Mar-08 Mar-09Income:Operating Income 250873716 395005374 578169689

Expenses:Material Consumed 200508015 302642859 417993381Manufacturing Expanses 11221515 22042992 17716693employee cost 6274868 5959252 6579931Selling Expanses 1978294 7612859 2450935Administrative Expenses 4724097 1794818 13262645sales tax 4847749 3646880 3167558

Cost of sales 229554538 343699660 461171143

Operating Profit 21319178 51305714 116998546

Other Recurring Income

Adjusted PBDIT 21319178 51305714 116998546

Financial Expenses : 1085351 -102987 -6828893

Depreciation 1853093 1893201 2063551Other write offsAdjusted PBT 18380734 49515500 121763888

Tax Charges 6475693 17882578 43751000

Adjusted PAT 11905041 31632922 78012888Non Recurring ItemOther Non Cash Adjustment

Reported Net Profit 11905041 31632922 78012888

Last Year Profit 2771145 4676186 21309109Amt. Available for Appropriation 14676186 36309108 99321997General Reserve 10000000 15000000 60000000Retained Earnings 4676186 21309108 39321997

Research Methodology



The methods or the techniques which have been used for collection and analysis of data in this

study are as follows:

(i) Collection of Data: The data of study for the period 2008 to

2010 used in this study has been collected from the Annul

Reports for the years 2008 to 2010.

(ii) Analysis of Data : For analysing the data the technique of ratio analysis , simple

mathematical tools like percentages and averages etc. and simple statistical

technique like Simple Correlation Technique have been used

REASEARCH DESIGN: -

DATA COLLECTION:-

The information is collected through the PRIMARY SOURCES like:

Getting information from HR department.

Data was collected from following SECONDARY SOURCES like

Account department Audit department

PRIMARY DATA:-

The primary data is collected by discussion with the manager of account department and HR department.

SECONDARY DATA:-

Secondary data regarding sales figures, promotional expenses were collected from the company own record to analyze the impact on sales due to the running scheme and make cost benefit analysis.



MEANING

Ratio, broadly speaking, is the numerical relationship between to

numbers, and hence ratio analysis of statement stands for the process of

determining and presenting the relationship of items and groups of items in the

statements. The following are the importance and uses of ratio analysis.

Ratio analysis is the powerful tool of financial analysis. A ratio is defined as relation

between two or more thing or as the systematic use of the ratio to interpret the financial

statement. So that the strength and weakness of a firm as well historical performance & Current

financial condition can be defined.

According to Meyers, ratio analysis is a “study of relation among the various

financial factors in a business.”

It is used as benchmark for evaluation the financial position and performance of the

company.

“A ratio indicated quantities relationship which can be used to qualitative conclusion.

This relationship can be expressed as:


“Let’s Build Better Roads” Percentage

Proportion

Fraction

IMPORTANCE OF RATIO

The ratio analysis is one of the powerful tools of the financial analysis.

It is used as a device to analysis more clearly and decisions made from such

analysis.

The use of ratio is not confined to financial manager only. There are

different parties in ratio analysis for knowing the financial position of the firm

for different purposes. The supplier of the goods on credit, banks, financial

institutions, investors, shareholders and management make use of ratio analysis

as a tool in evaluating the financial position and performance of a firm for

granting credit, providing loans for making investments in the firm. Thus, ratios

have wide applications and are of immense use today.

Ratio analysis is the powerful tool of financial analysis. A ratio is defined as relation

between two or more thing or as the systematic use of the ratio to interpret the financial

statement. So that the strength and weakness of a firm as well historical performance & Current

financial condition can be defined.


“Let’s Build Better Roads”According to Meyers, ratio analysis is a “study of relation among the various

financial factors in a business.”

It is used as benchmark for evaluation the financial position and performance of the company.

“A ratio indicated quantities relationship which can be used to qualitative conclusion.

This relationship can be expressed as:

Percentage

Proportion

Fraction

ADVANTAGES OF RATIO ANALYSIS


“Let’s Build Better Roads”I. Lee observed that the process of producing financial ratio is essentially concerned with

the identification of the significant accounting data relationships, which give the decision makers insights into the company that is assessed.

II. A ratio analysis involves the study of total financial picture. By basing conclusion upon thorough understanding of the important of each ratio, the analyst can recommend and indicate positive action with confidence.

III. One of the most fruitful areas for the use of traditional financial ratio seems to be that of predication company failures.

IV. Ratio are tool which enables management to analysis business situation and to monitor their performance as well as that of their competitors.

V. Ratio analysis helps the management to diagnose the situation, monitor the performance and help plan forward.

VI. There are certain priority ratios for chief executives. There are related to key areas, which are common to nearly all businesses and with which top management is seriously concerned. These priority ratios enable the chief executive to understand the relationship between his organizations. At one end, and the market, investors, suppliers and employees. He is also in a position to watch how well the organization is using its assets and how well it is providing for the future.

VII. There are ratio which help the marketing manager, the purchasing manager, the financial manager and other representing the middle management to know the what positions are like how to make a way in typical situations, from time to time

DISADVANTAGES OF RATIO ANALYSIS


“Let’s Build Better Roads”I. Erich Helfert points out that it is essential for a person analyzing business performance to

have a clear awareness of the tests he should apply and the specific reasons for which he should apply them. Temptation arises in financial ratio analysis to run all the numbers, yet select only a few relationships, which would provide clues for judgment.

II. Financial statement is generally based on historical or original cost. The current economic conditions are ignored.

III. Not all ratio and percentages are significant and useful. One should be aware of the temptation to calculate them for their own sake.

IV. In using ratio computed by others, one should realize, that the computation of a particular ratio not necessarily been standardize.

V. Most ratios represent avg. and therefore, may tend to obscure large variations in the underlying causative factors above and below the avg.

VI. Ratio are based on financial statement suffer from the limitation inherent in these statements.

VII. Changes in many ratios are closely associated with one another.

CLASSIFICATION OF RATIO

A. LIQUDITY RATIO


“Let’s Build Better Roads”1) Current Ratio

2) Quick Ratio

3) Inventory Turnover Ratio

4) Debtor Turnover Ratio

5) Creditors Turnover Ratio

B. LEVERAGE RATIO

1) Debt-Equity Ratio

2) Debt Total Assets/capital Ratio

C. PROFITABILITY RATIO

1) Gross Profit Margin Ratio

2) Operating Profit Margin Ratio

3) Net Profit Ratio

D. EXPENSE RATIO

1) Operation Expense Ratio

2) Operating Ratio

E. PROFITABILITY RATIO RELATED TO INVESTMENT

1) Return on Assets

2) Return on Shareholders’ Equity

3) Earning per Share

LIQUIDITY RATIO

1) Current Ratio:



The current ratio is the measure of the firm’s short term solvency. It indicates the

availability of current assets in rupees for every one rupee of current liability. A ratio greater

than one means that the firm has more assets than the current claims against them. Current assets

normally include cash, marketable securities, accounts receivable and inventories. Current

liabilities consist of accounts payable, short term notes payable, short-term loans, current

maturities of long term debt, accrued income taxes and other accrued expenses (wages). The

current ratio can be found out from the following equation.

Current Ratio =Current Assets---------------------Current Liabilities

Year 2007 = 94536740

40242347 = 2.35 times


Mar-07 Mar-08 Mar-09

2.35 1.81 2.50

Current Ratio

2.35

1.81

2.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2007 2008 2009

Years

Rat

io

35


Year 2008 = 147004376

81276418 = 1.81 times

Year 2009 = 212942059

85045998 = 2.50 times

Interpretation:

A ratio of “1” would indicate that the company has exactly enough cash (or assets

that is relatively easy to turn into cash) to pay off its debt. If the ratio is higher than “1”, the

company can successfully pay off its debt while at the same time still has cash leftover to

continue operating. Naturally, if the ratio is under “1”, then investors should be weary of the

fact that the company cannot pay off its short-term debt if necessary. A company has a ratio of

“2.5”; one can say the company can pay off its liabilities more than two times over.

From the graph we can see the current ratio of the company of the last three years.

We can see that the current ratio of the company decrease 1.81 times in 2008 and increase 2.50

in 2009 as compare 2.35 in 2007. The conventional rule for this ratio is 2:1 or more is considered

satisfactory. The higher the current ratio the greater the margin of safety for creditors. That

means company’s currents assets are increasing in current year. So company is growing in strong

position against its current obligation.

2) Quick Ratio


“Let’s Build Better Roads”This ratio is called the Acid Test Ratio. It established the relationship between quick

assets and current liabilities. An asset is liquid if it can be converted in to cash immediately

without a loss of value. The quick ratio is a variant of the current ratio. It takes into account the

fact that inventory, while it is a current asset, is not as liquid as cash or accounts receivable. Cash

is completely liquid; accounts receivable can normally be converted to cash fairly quickly, by

pressing for collection from the customer. But inventory cannot be converted to cash except by

selling it. This ratio is calculated from the following equation.

Quick Ratio =Current Assets - Inventory---------------------Current Liabilities


1.94 1.53 2.13

Year 2007 = 94536740-16506906

40342347


Quick Ratio

1.94

1.53

2.13

0.00

0.50

1.00

1.50

2.00

2.50

2007 2008 2009

Years

Rat

io

37

“Let’s Build Better Roads”= 1.94 times

Year 2008 = 147004376-22500455

81276418= 1.53 times

Year 2009 = 212942059-31867935

85045998= 2.13 times

Interpretation:

Quick ratio represents the company ability to meet its immediate obligation.

Generally, a quick ratio of 1:1 is considered to present a satisfactory current financial condition.

A quick ratio 1:1 or more does not necessarily imply sound liquidity position. Thus, a company

with high value of quick ratio can suffer from the shortage of funds if it has slow paying,

doubtful and long-duration outstanding debtors. On the other hand, a company with a low value

of quick ratio may really be prospering and paying its current obligating in time if it has been

turning over its inventories efficiently.

From the graph we can see the quick ratio of the company of the last three years. The

company has very well in the quick ratio. In 2009, it increases. But it slightly decreases in the

year 2008. Over all the company’s position is good in terms of quick ratio. So we can say that

firm can able to pay their liability quickly.

3) Inventory Turnover Ratio


“Let’s Build Better Roads”The inventory turn over ratio indicates the efficiency of the firm in producing and

selling the product. It shows how much time the inventory has turnover in a year. More the

turnover, it is a better the company’s efficiency in handing the inventory. No company wants to

have too large an inventory (the sales force accepted: salespeople prefer to be able to tell their

customers that they can obtain their purchase this afternoon). Goods that remain in inventory too

long tie up the company's assets in idle stock, often incur carrying charges for the storage of the

goods, and can become obsolete while awaiting sale.

Just-in-Time inventory procedures attempt to ensure that the company obtains its

inventory no sooner than absolutely required in order to support its sales efforts. That is, of

course, an unrealistic ideal, but by calculating the inventory turnover rate you can estimate how

well a company is approaching the ideal. The inventory turnover ratio is calculated from the

following equation.

Inventory Turnover Ratio =Cost of Goods Sold---------------------Avg. Inventory


15.44 17.62 16.96


Inventory Turnover Ratio

15.44

17.62

16.96

14.00

14.50

15.00

15.50

16.00

16.50

17.00

17.50

18.00

2007 2008 2009

Years

Rat

io

39


Year 2007 = 229554538

{(13218970+16506906)/2}= 15.44 times

Year 2008 = 343699660

{(16506906+22500455)/2}= 17.62 times

Year 2009 = 461171143

{(22500906+ 31867935)/2}= 16.96 times

Interpretation:

It is important to see how well the company is able to sell its inventory compared to

its competitors. Naturally, the higher the ratio, the stronger the sales. A low ratio would possibly

indicate poor sales. The ratio shows a relatively high stock turnover which would seem to

suggest that the business deals in fast moving consumer goods.

The company turned over stock 15.44 times in 2007 and 16.96 in 2002. The trend shows a

marginal increase in times which indicates a fast turnover of stock. The high stock turnover ratio

would also tend to indicate that there was little chance of the firm holding damaged or obsolete

stock. The company is efficiency in handing the inventory. That means it is increase the sales.

4) Debtor Turnover Ratio

Measures the firm’s ability to collect payment from its customers, ex. its ability to

collect the cash from someone who paid by credit. A higher ratio indicates the firm’s efficiency

in its ability to collect those payments, and/or the company operates more on a cash basis. A low

ratio may mean that the company should possibly re-think its credit policies and find out why the

firm cannot collect its customer’s payments on a timely fashion.

Debtor Turnover Ratio =


“Let’s Build Better Roads”Net Credit Sales---------------------Avg. Debtors


15.71 19.41 25.80

Year 2007 = 250873716

{(11670861+20269067)/2}= 15.71 times

Year 2008 = 395005374

{(20269067+20433538)/2}= 19.41 times

Year 2009 = 578169689

{(20433538+24388657)/2}= 25.80 times


Debtor Turnover Ratio

15.71

19.41

25.80

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2007 2008 2009

Years

Rat

io

41


Interpretation:

From the graph we can see the debtor turnover ratio of the company of the last three

years. From the graph we can say that the company’s management of credit is efficient. The

debtor’s turnover ratio was 15.71 times in 2007 which goes up in last two years. That means the

company is efficient in their credit recovery.

5) Creditors Turnover Ratio

It is ratio between net credit purchase and the average amount of creditors

outstanding during the year. A low turnover ratio reflects liberal credit terms granted by

suppliers, while a high ratio shows that accounts are to be settled rapidly. The creditor’s turnover

ratio is an important tool of analysis as a firm can reduce its requirement of current assets by

relying on supplier’s credit. The creditor’s turnover ratio can be found out from the following

equation.

Creditors Turnover Ratio =

NetCreditPurchase---------------------Avg. Creditors


5.41 5.08 5.82



Year 2007 = 200508015

{(34087954+39990116)/2}= 5.41 times

Year 2008 = 395005374

{(39990116+79141246)/2}= 5.08 times

Year 2009 = 417993381

{(79141246+64612250)/2}= 5.82 times

Interpretation:

From the graph we can see the creditor’s turnover ratio of the company of the last

three years. We can see that the creditor’s turnover ratio was 5.41 times in 2006 which come

down for normal point in two years. That means it is low turnover ratio. It is liberal credit terms

granted by suppliers.

LEVERAGE RATIO


Creditors Turnover Ratio

5.41

5.08

5.82

4.60

4.80

5.00

5.20

5.40

5.60

5.80

6.00

2007 2008 2009

Years

Rat

io

43


1) Debt Equity Ratio

The Total Debt to Equity ratio helps us measure a company’s financial leverage. It

reflects the relative position of the equity holders and the lenders and indicates the company’s

policy on the mix of capital funds. It shows us how much of a company’s financing of assets is

due to investors putting in money into the company, or perhaps loans taken out by banks. The

debt-equity ratio can be found out from the following equation.

Debt Equity Ratio =LongTermDebt---------------------Share Holders Equity


0.02 0.08 0.02


Debt-Equity Ratio

0.02

0.08

0.02

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

2007 2008 2009

Years

Rat

io

44


Year 2007 = 4173873

12000000+85576186= 0.02

Year 2008 = 9727947

12000000+117209108= 0.08

Year 2009 = 4782592

12000000+195221997= 0.02

Interpretation:

The D/E ratio is an important tool of financial analysis to appraise the financial

structure of a firm. It has important implications from the view point of the creditors, owners and

the firm itself. The ratio reflects the relative contribution of creditors and owners of business in

its financing. The D/E ratio indicates the margin of safety to the creditors. A ratio greater than

“1” indicates the company’s assets are mainly financed with debt, while a ratio less than “1”

indicates the company’s assets are primarily supplied with equity. The higher the ratio, the more

leverage a company has, also indicating that it is aggressively financing its assets with debt. The

benefits are two-fold: This may mean that their earnings are/will be more volatile and at a higher

risk of defaulting (going bankrupt), but also means a higher potential payout to the company’s

investors and shareholders.

From the graph we can see that it is low ratio that means to the creditors, a relatively

high stake of the owners implies sufficient safety margin and substantial protection against

shrinkage in assets.

2) Debt Total Assets / Capital Ratio


“Let’s Build Better Roads”The relationship between creditors’ funds and owner’s capital can also be expressed

in terms of another leverage ratio. This is the debt to total capital ratio. Here, the outside

liabilities are related to the total capitalization of the firm and not merely to the shareholder’s

equity. The debt to capital ratio is to relate the total debt to the total assets of the firm the debt of

the firm comprises long term debt plus current liabilities. The debt total assets/capital ratio can

be found out from the following equation.

Debt Total Assets / Capital Ratio =TotalDebt---------------------Total Assets


0.34 0.13 0.14

Year 2007 = 4173873+22750296

17433079+54294393= 0.34

Year 2008 = 9727947+1619225


Debt Total Assets/capital Ratio

0.34

0.13 0.14

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2007 2008 2009

Years

Rat

io

46


20453164+65727958= 0.13

Year 2009 = 4782592+19944062

12000000+195221997= 0.14

Interpretation:

If the ratio is above “1”, that would indicate that the majority of the company’s

assets are financed through debt, while if the ratio is under “1”, than the company is primarily

financed through equity.

From the graph we can see that the debt total assets ratio is 0.13 in 2008 and 0.14 in

2008 as compare to the year of 2006. That means a low ratio is desirable from the creditors as

there is sufficient margin of safety available to them. But its implications for the shareholders are

that debt is not being exploited to make available to them the benefit of trading on equity

PROFITABILITY RATIO

1) Gross Profit Margin Ratio

The gross profit margin measures the amount that customers are willing to pay for a

company's product, over and above the company's cost for that product. As mentioned

previously, this is the value that the company adds to that of the products it obtains from its

suppliers. This margin can depend on the attractiveness of additional services, such as

warranties, that the company provides. The gross profit margin also depends heavily on the

ability of the sales force to persuade its customers of the value added by the company. The gross

profit margin ratio can be found out from the following equation.

Gross Profit Margin Ratio =


“Let’s Build Better Roads”GrossProfit ---------------------Sales


8.50% 12.99% 20.24%

Year 2007 = 23319178

250873716 = 8.50%

Year 2008 = 51305714

395005374 = 12.99%

Year 2009 = 116998546

578169689 = 20.24%


Gross Profit Margin Ratio

8.50%

12.99%

20.24%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2007 2008 2009

Years

Rat

io

48


Interpretation:

The ratio above shows the increasing trend in the gross profit since the ratio has

improved from 8.50% in 2007 to 20.24% on 2009. A high ratio of gross sales is sign of good

management as it implies that the cost of production of the firm is relatively low. This indicates

that the rate in increase in cost of goods sold are less than rate of increase in sales, hence the

increased efficiency.

2) Operating Profit Margin Ratio

The operating profit margin indicates how much profit a company makes after paying

for variable costs of production such as wages, raw materials, etc. It shows the efficiency of a

company controlling the costs and expenses associated with its business operations. The

operating margin is another measurement of management’s efficiency. It compares the quality of

a company’s operations to its competitors. A business that has a higher operating margin than its

industry’s average tends to have lower fixed costs and a better gross margin, which gives

management more flexibility in determining prices. This pricing flexibility provides an added

measure of safety during tough economic times.

Operating Profit Margin Ratio =EBIT---------------------Sales


7.76% 12.51% 19.88%



Year 2007 = 18380734+108551

250873716 = 7.76%

Year 2008 = 49515500+(102987)

395005374 = 12.51%

Year 2009 = 121763888+(6828893)

578169689 = 19.88%

Interpretation:

Operating profit margin measures a company’s operating efficiency and pricing

efficiency with its successful cost controlling. The higher the ratio, the better a company is. A

higher operating profit margin means that a company has lower fixed cost and a better gross

margin or increasing sales faster than costs, which gives management more flexibility in

determining prices. It also provides useful information for investors to determine the quality of a

company when looking at the trend in operating margin over time and to compare with industry


Operating Profit Margin Ratio

7.76%

12.51%

19.88%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2007 2008 2009

Years

Rat

io

50

“Let’s Build Better Roads”peers. The ratio indicates that there is increase in operating profit margin from 7.76% in 2007 to

19.88% in 2009. That means a company’s operating efficiency and pricing efficiency with its

successful cost controlling.

3) Net Profit Ratio

The net margin is indicative of management’s ability to operate the business with

sufficient success not only to recover from revenues of the period, the cost of merchandise or

service, the expenses of operating the business and the cost of the borrowed funds but also to

leave a margin of reasonable compensation to the owners for providing their capital at risk. The

ratio of net profit to sales essentially expresses the cost price effectiveness of the operation. The

net profit margin ratio can be found out from the following equation.

Net Profit Ratio =EAT---------------------Sales


4.75% 8.01% 13.49%



Year 2007 = 11905041

250873716 = 4.75%

Year 2008 = 31632922

395005374 = 8.01%

Year 2009 = 78012888

578169689 = 13.49%

Interpretation:

The ratio above shows the increasing trend in the net profit since the ratio has

improved from 4.75% in 2007 to 13.49% on 2009. That means a high net margin and it is

efficient management’s ability to operate the business. It can make better use of favorable

conditions, such as rising selling price, filling costs of production and increasing demand for the

products. We can conclude Apollo being very efficient with keeping its expenses at a minimum

and its ability to retain much of its sales as profit.


Net Profit Ratio

4.75%

8.01%

13.49%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

2007 2008 2009

Years

Rat

io

52


EXPENSE RATIO

1) Operation Expanse Ratio

The Operating Expense Ratio is usually viewed as a measurement of management

efficiency. This is because management usually has greater control over operating expenses than

they do over revenues. The operating expense ratio can tell you if management can expand

operations without dramatically increasing expenses. The earning per share ratio can be found

out from the following equation.

Operation Expanse Ratio =Administrativeexpenses+sellingexp---------------------Net Sales


2.67% 2.38% 2.72%


Operation Expanse Ratio

2.67%

2.38%

2.72%

2.20%

2.30%

2.40%

2.50%

2.60%

2.70%

2.80%

2007 2008 2009

Years

Rat

io

53


Year 2007 = 4724097+1978294

250873716 = 2.67%

Year 2008 = 1794818+7612859

395005374 = 2.38%

Year 2009 = 13262645+2450935

578169689 = 2.72%

Interpretation:

The operating expense ratio is an indicator of how efficiently a property is being

managed. The lower the operating expense ratio, the greater the profit for the investor or

investors. As the owner or manager of an income producing property, you should be assessing

what steps you can take to reduce vacancies, reduce operating expense items. The ratio indicates

that there is increase normal point from 2.67% in 2006 to 2.72% in 2008. That means it is

controlling the expenses and effective managed the firm.



2) Operating Ratio

Operating Ratio is calculated in order to calculate the operating efficiency of the

concern. As this ratio indicates about the percentage of operating cost to the net sales, so it is

better for a concern to have this ratio in less percentage. The less percentage of cost means

higher margin to earn profit. A company's operating ratio gives an indication of what percentage

of net sales is used to pay for the cost of goods and overhead. The lower the ratio, the more

money is available to pay off debts or to invest into the business.

Operating Ratio =Cost of goods sold+ Operating expenses---------------------Net Sales


95.98% 92.59% 82.83%

Operating Ratio

95.98%

92.59%

82.83%

75.00%

80.00%

85.00%

90.00%

95.00%

100.00%

2006 2007 2008

Years

Rat

io



Year 2006 = 229554538+11221515

250873716= 95.98%

Year 2007 = 343699660+22042992

395005374= 92.59%

Year 2008 = 461171143+17716693

578169689= 82.83%

Interpretation:

Operating Ratio is a measurement of the efficiency and profitability of the business

enterprise. The ratio indicates the extent of sales that is absorbed by the cost of goods sold and

operating expenses. Lower the operating ratio is better, because it will leave higher margin of

profit on sales and higher the operating ratio is bad, because it will leave lower margin of profit

on sales. The ratio indicates that there is decrease from 95.98% in 2006 to 82.83% in 2008. That

means it will leave higher margin of profit on sales.



PROFITABILITY RATIO RELATED TO INVESTMENT

1) Return on Assets

One of management's most important responsibilities is to bring about a profit by

effective use of the resources it has at hand. One ratio that speaks to this question is return on

assets. Here, the profitability ratio is measured in terms of the relationship between net profit and

assets. The ROA may also be called profit-to-asset ratio. The real return on the total assets is the

net earning available to owners. The return on assets ratio can be found out from the following

equation.

Return on Assets =Net Profit after Tax---------------------Average total Assets


9.58% 22.10% 33.28%



Return On Assets

9.58%

22.10%

33.28%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2006 2007 2008

Years

Rat

io

Year 2006 = 11905041

17433079+52514500+54294393= 9.58%

Year 2007 = 31632922

20453164+56949353+65727958= 22.10%

Year 2008 = 78012888

49603285+56914500+127896061= 33.28%

Interpretation:

This ratio measures the pre tax rate of return on assets and can be used to measure the

effective utilization of assets on the profitability of the business. An indicator of how profitable a

company is relative to its total assets. ROA gives an idea as to how efficient management is at

using its assets to generate earnings. The ratio indicates that there is increase in the ROA from

9.58% in 2006 to 33.28% in 2008. That means the percentage of the real return on the assets is

lead to increase net earning of the owners. The company is effective utilization of assets on the

profitability of the business.



2) Return on Total Shareholders' Equity

Return on Equity judges the profitability from the point of view of equity

shareholders. This ratio has great interest to equity shareholders. The return on equity measures

the profitability of equity funds invested in the firm. The investors favour the company with

higher ROE. The amount of net income returned as a percentage of shareholders equity. Return

on equity measures a corporation's profitability by revealing how much profit a company

generates with the money shareholders have invested. The return on shareholder’s equity ratio

can be found out from the following equation.

Return on Total Shareholders' Equity =Net Profit after Taxes---------------------Average total shareholders’ equity


99.21% 263.61% 650.11%



Return On Total Shareholders' Equity

99.21%

263.61%

650.11%

0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

700.00%

2006 2007 2008

Years

Rat

io

Year 2006 = 11905041

12000000= 99.21%

Year 2007 = 31632922

12000000= 263.61%

Year 2008 = 78012888

12000000= 650.11%

Interpretation:

This ratio relates the pre tax returns to the level of equity capital employed in the

business. Caution should be used when interpreting this ratio. A high ratio, normally associated

with a profitable firm, may indicate an under capitalized firm while a low ratio, which normally

indicates an inefficient or unprofitable firm. The ratio indicates that there is increase in the ROE

from 9.58% in 2006 to 33.28% in 2008. That means the firm has earned a satisfactory return for

its equity shareholders. The rate of return on shareholders’ equity is of crucial significance in

ratio analysis vis-à-vis from the point of the owners of the firm.



3) Earning Per Share

Whatever income remains in the business after all prior claims, other than owners

claims (i.e. ordinary dividends) have been paid, will belong to the ordinary shareholders who can

then make a decision as to how much of this income they wish to remove from the business in

the form of a dividend, and how much they wish to retain in the business. The shareholders are

particularly interested in knowing how much has been earned during the financial year on each

of the shares held by them. The earning per share ratio can be found out from the following

equation.

Earning Per Share =Net profit available to equity shareholders---------------------Number of ordinary share outstanding


9.92 26.36 65.01



Earning Per Share

9.92

26.36

65.01

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

2006 2007 2008

Years

Rat

io

Year 2006 = 11905041

12000000= 9.92

Year 2007 = 31632922

12000000= 26.36

Year 2008 = 78012888

12000000= 65.01

Interpretation:

The earnings per share ratio is mainly useful for companies with publicly traded

shares. Most companies will quote the earnings per share in their financial statements saving you

from having to calculate it yourself. By itself, EPS doesn't really tell you a whole lot. But if you

compare it to the EPS from a previous quarter or year it indicates the rate of growth a companies

earnings are growing (on a per share basis). The ratio indicates that there is increase in the EPS

from 9.58% in 2006 to 33.28% in 2008. That means it is increase the growth of company. The

company is able to use its equity share capital effectively with compare to other companies.



SWOT ANALYSIS

STRENGHTS

ISO 9001 certified company

Acknowledged market leader with high level of customer goodwill

Always close to the customer. Proactive lather than reactive to changing market needs

Large customer base & high brand loyalty

Fastest deliveries of equipment and spare parts.

WEAKNESSES

In competition with the foreign companies, price of the equipment is high compare to the foreign companies

There is a lot of noise pollution at the work place. This noise is dangerous for the workers



OPPORTUNITIES

Opportunity always exists but main thing is they need to be realized and recognized. This requires a strong motivational factor and premium foresight

THREATS

There is no interference of anyone except the government because the “Apollo Earthmovers Limited” is limited company

CONCLUSION

“APOLLO EARTHMOVERS LTD” is India’s No 1 manufacture of road

construction & maintenance equipment. There are very less competitors against Apollo’s product

in market and quality of its products is better than competitors. Its products are increasing every

year so there is bright future for company. The chairman and managing director is well-

experienced person. He has experience in this field. The most important is that company’s main

aim is not make profit but with profit to provide maximum service to the company in any time or

position.

Company also contributes to the nation by earning foreign exchange. Company serves

society providing full employment to the skilled and also unskilled people and brings up their

standard of living. “APOLLO EARTHMOVERS LTD” is able to use maximum capacity of

manpower and also of technical know how nowadays. This shows quality improvement of

product and best management company. By these step of company there may be possible of

improvement in technology knowledge in country.


“Let’s Build Better Roads”I have really a unique experience in Apollo Earthmovers Ltd, mehsana during my

training period. I have learnt many unknown things, which are out of my knowledge of

management aspects. I have found there the management in my practical life. I have collected all

my necessary information from the concerning department by myself. I have come across many

intelligent and expert persons in the Apollo Earthmovers Ltd.

BIBLIOGRAPHY

FINANCIAL MANAGEMENT: - BY I M Pandey

FINANCIAL MANAGEMENT: - M Y Khan & P K Jain

WEBSITE: - www.apollo.co.in


ravi barot

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