SUMMER INTERSHIP PROJECT

OF

SHREE TIRUPATI HERO

AUTHORIZED DEALERSHIP OF HERO

PROJECT TITLE
ANALYSIS OF FINANCIAL STATEMENT

(Submitted in partial fulfillment of the requirements of Master Of

Business Administration in finance service)

BY
RAGHVENDRA SINGH

Roll no. : 1316570044

Batch

: 2013-2014

MBA IN FINANCE

DECLERATION

I hereby to declare that the summer training project report titled

analysis of financial statements of SHREE TIRUPATI HERO and
SHREE TIRUPATI MOTORS is my own work and has been
carried out under the guidance of JAYANT BAJPAI MA..AM. All
the care has been taken to keep this report error free and
sincerely regret for any unintended discrepancies that might have
crept in this report.

Thank you
RAGHVENDRA SINGH

ACKNOWLEDGEMEMT

I express my heartiest feeling of gratitude to my constant

encouragement, and sympathetic attitude , parental advice at every
step that enable to face and encounter all the difficulties that comes
in our way to reach this stage. I shall be highly grateful to him always.

I would also like to pay thanks to Almighty God for giving us power
and the mind to do work efficiently and effectively.

At last but not the least we are thankful to all the staff members of
account department and computer lab department for every possible
help.

TABLE OF CONTENTS
S.NO.

CONTANT

PAGE NO

Certificate

Declaration

Acknowledgement

Introduction

Background

objective

Scope and uses

Content and development

About Shree Tirupati Hero

10

Introduction of ratio analysis

11

Various types of ratios

12

Methodology

13

Methodology ( Sampling
details)

14

Methodology (Various)

15

Data analysis and finding

16

Partner s report

17

Finding of result

18

Press released information

19

Performance of the company

20

Suggestion , conclusion

21

Limitation of the study

22

Suggestion

23

Conclusion

24

Appendices

Make table in one page add no.??

INTRODUCTION
Why bold and
only news roman
with font size 14
SHREE TIRUPATI HERO was incorporated
on
5th
September 1998.
Today,
the company has
emerged as a
frontrunner
in
the
Dealership and marketing of Two whiller Four Whiller Vehicle

of Hero Moto Corp Ltd. & Mahindra & Mahindra Ltd.

.
Large Selling capacity is a
key
at SHREE TIRUPATI HERO.

and
strength

BUSINESS
SHREE TIRUPATI HERO is engaged in salling of two and four
whiller vehicles . The Company clocked revenues of Rs. 100.90
crores as on 31st March, 2012 of which 80 per cent came from
its principal revenue channel the two whiller vehicles business.
The Company's brands Red Tape and Oaktrak, have received
international recognition for quality, styling, durability and
pricing. In addition to smart bikes , SHREE TIRUPATI HERO .

Promoters
The Company has been promoted by MR. Nitin Gupta & Mr. Manish
Gupta who is partner of Shree Tirupati Hero is managed by
professionals.

Listing
Shree Tirupati Hero has engraved its name amongst the
premium Hero MotoCorp dealers in India. It is our duty to provide the
best in sales and services to our increasing number of customers in
the two-wheeler industry.

Rewards & Recognition

CERTIFICATE OF APPRECIATION

Shree Tirupati Hero was given a token of appreciation

for their excellent performance and support by ICICI
Bank in the year 2003-04.
CERTIFICATE OF EXCELLENCE
Shree Tirupati Hero was awarded the Certificate of
Excellence as a Winner in for Overall Performance in
the 'Hero Stars Contest' in the year 2003-04.
Reward 3
CERTIFICATE OF PARTICIPATION
Shree Tirupati Hero was given the Certificate of
Participation in the Free Pollution Check Drive in
SIAM-SAFE Free Pollution Check Camp organized on
5th June 2011.

COMPANY PROFILE
BACKGROUND OF SHREE
TIRUPATI HERO

 SHREE TIRUPATI HERO journey began in the year 1979 with a

small Dealership in two whiller vehicle at mall road Kanpur. The
company, established by partners Mr.Nitin Gupta and Mr.
Manish Gupta, was then called Shree Tirupati Hero & Shree
Tirupati Motors.

VISION
A World Class Integrated Indian Growth With Increasing
Global Presences

MISSION
DEVELOP AND PROVIDE RELATED AND RELIABLE PRODUCTS
SERVICES AT THEIR COMPETITOR PRICE

CORE VALUE-BCOMIT

B -------- BUSINESS ETHICS

C ---------CUSTOMER FOCUS (EXTERNAL INTERNAL)
O---------ORGANIZATIONAL PROFISSIONAL PRIDE
M---------MUTUAL RESPECT & TRUST
I---------INNOVATION SPEED
T---------TOTAL QUALITY FOR EXCELLENCE

SHREE TIRUPATI HERO

PARTNER OF FIRM
Mr. Manish Gupta
Mr. Nitin Gupta
COMPANY MANAGER
Mr. JAYANT BAJPAI
AUDITOR

 M/s. ,
Charaterad Accountant
Bankers
- Bank of Baroda
The Mall, Kanpur 208001
Registered office / Showroom
7/17/2, Parwati Bagla Road ,ilak Nagar,
Kanpur - 208002
Uttar Pradesh
Ph :0512-3048041
Email:shritirupati.kanpur@heromotocorp.biz

,
Competitors, Organization Structure, Products,
Company Profile (Background, History, Founder, Vision, Mission

RATIO ANALYSIS

INTRODUCTION

FINANCIAL ANALYSIS IS THE PROCESS OF IDENTIFYING

THE FINANCIAL STRENGTHS AND WEAKNESS OF THE FIRM
AND ESTABLISHING THE RELATIONSHIP BETWEEN THE
ITEMS OF THE BALANCESHEET & PROFIT AND LOSS
ACCOUNT.

FINANCIAL RATIOANALYSIS IS FORECASTING ABOUT THE

ACCOUNT AND BUSINESS. RATIO ANALYSIS WORK ON
PROFIT GENERATING OF THE ,HOW MUCH INCREASING
PROFIT IF THE BUSINESS.

Ratio analysis can provide an early warning of a potential

improvement or deterioration in a companys financial
situation or performance. Analysts engage in extensive
number-crunching of the financial data in a companys
quarterly financial reports for any such hints.

 Successful companies generally have solid ratios in all areas,

and any hints of weakness in one area may spark a significant
sell-off in the stock.

Ratios are usually only comparable across companies in the

same sector, since an acceptable ratio in one industry may be
regarded as too high in another.

For example, if the average P/E ratio of all companies in the S&P
500 index is 20, with the majority of companies having a P/E
between 15 and 25, a stock with a single-digit P/E would be
considered undervalued, while one with a P/E of 50 would be
considered overvalued. Of course, this ratio would typically only
be considered as a starting point, with further analysis required
to identify if these stocks are really as undervalued or
overvalued as the P/E ratios suggest.

Advantages of ratio analysis

Financial ratio analysis is a useful tool for users of

financial statements.

 FOLLOWING ARE THE MAIN ADVANTAGES OF

ACCOUNTING RATIO ANALYSIS
It simplifies the financial statements

It helps in comparing companies of different size with each other.

It helps in trends analysis in which involves comparing a single

company over a period.

To work out the solvency ratio of the company can be measured .

the ratio show the relationship between liabilities and assets.

To work out the profitability of the company by calculating the

various profitability ratio.

It highlights important information in simple form quickly. A user can

judge a company by just looking a few numbers instead of reading
the whole financial statements

LIMITATION OF RATIO ANALYSIS

There Are The Certain Limitation Of The Ratio Analysis

Techniques And They Should Kept In Mind While Using Them In
Interpreting Financial Statements.

FOLLOWING ARE THE MAIN LIMITATION OF ACCOUNTING

RATIO ANALYSIS.

Different companies operate in different industries each having

different environmental conditions such as regulation, market
structure, etc. Such factors are so significant that a comparison of
two companies from different industries might be misleading.

Financial accounting information is affected by estimates and

assumptions. Accounting standards allow different accounting
policies, which impairs comparability and hence ratio analysis is
less useful in such situations.

Ratio analysis explains relationships between past information

while users are more concerned about current and future
information.

 Limited comparability apply different accounting policies. There

are many difference for providing depreciation for fixed assets or
certain of the provision for doubtful debts

False result accounting is based on data drawn from accounting

records, the profit of the concern will be in flated

Effect of price level change often make the difference of the figure
difficult over a period of time, therefore it is necessary to make
proper adjustment of price level change any comparision.

CLASSIFICATION FOR RATIO ANALYSIS

Ratio may be classified in the number of ways to suit any

particular purposes. Different types of ratio analysis are selected
for different type of situation. The various types of ratio analysis
are classified under.

PROFITABILITY RATIO:

GROSS PROFIT RAIO

 NET PROFIT RATIO

OPERATING RATIO
RETURN ON SHAREHOLDERS INVESTMENT OR NET
WORTH
RETURN ON EQUITY CAPITEL
EARNING PER SHARE RATIO

LIQUIDITY RATIO:
CURRENT RATIO

QUICK RATIO

LIQUID RATIO
ACID TEST RATIO

ACTIVITY RATIO:
STOCK / INVENTORY TURNOVER RATIO
DEBTOR / RECEIABLE TURNOVER RATIO
WORKING CAPITAL TURNOVER RATIO

 FIXED ASSETS TURNOVER RATIO

D.LEVERAGE TURNOVER RATIOS:

DEBT TURNOVER RATIO
PROPRIETARY TURNOVER RATIO
FIXED ASSETS TO SHAREHOLDER FUNDS
INTEREST COVERAGE RATIO

METHODOLOGY

Objectives of Study, missing

Research Methodology,

(Types of Research - Research Design, Sampling Design, Tools, Sample Units, Hypothesis, Data

Collection Methods),

METHODOLOGY (SAMPLE DESIGNE)

Research Design Helps In Proper Collection And Analysis Of The Data

. It Helps In Further Course Of Action.

RESEARCH APPROACHES

The most appropriate research is descriptive. This is because goal of

the study is clear research will help to understand to concept better.

CLASSIFICATION OF DATA

SECONDARY DATA

 This include the information gathered from various websites.

SAMPLE SIZE
Selection of sample size is based on five years

SAMPLING TECHNIQUES
This sampling procedure employed for this is a judgmental
sampling technique in which element are based on the judgment
of research.

Methodology (ratio used for financial analysis)

 PROFITABILITY RATIOS:
GROSS PROFIT RATIO (GPR)

Gross profit ratio is the ratio of gross profit to net sale expressed
in the form of percentage. It creates the relationship between gross
profit and sales.

FORMULA:-

Gross Profit Ratio=Gross Profit / Net Sale *100

Gross profit ratio is find after deducting cost of goods sold from net
sales, higher the gross profit better for profit.
The gross profit earned should be sufficient to recover all operating
expenses and to build up reserve after paying all fixed interest
charges and dividend.

NET PROFIT RATIOS (NPR)

Net profit ratio is the ratio of net profit (after ratio ) to net sales. It
expressed as percentages.
FORMULA:-

Net profit ratio= net profit / net sale*100

The net profit obtained after deducting income-tax and generally

non operating expenses .Thus, income such as interest on
investments, outside the business, profit on sale of fixed assets
and loss on sale of fixed assets.

OPERATING RATIOS (OR)

Operating ratio is the ratio of cost of Vehicle sold plus operating

expenses to net sales. It generally expressed in percentage. It
measures the cost of operations of sales.
FORMULA:-

OPERATING RATIO= COST OF VEHICLE SOLD+OPERATING

EXPENSES/ NET SALES *100

Where, Cost Of Vehicle Sold = Opening Stock + Purchases+ Carriage

+ Wages + Other Direct Expenses - Closing Stock

Operating Expenses=Office And Administration Expenses + Selling

And Distribution Expenses + Discount + Dad Debts + Interest On
Short Term Loans

Operating ratio is a measurement of the efficiency and profitability

of the business enterprise. Lowering operating ratio is better
because it leave the higher margin of profit on sale.

RETURN ON PARTNERS INVESTMENT

It is the ratio of net profit to partners investments. It is the

relationship between net profit and other incomes. this ratio

establishing the profitability from the Partners points of view. It

generally calculated in percentage .
FORMULA:-

RETURN ON PARTNERS INVESTMENTS=(NET PROFIT AFTER

TAX PREFERENCE DIVIDEND)/ SHAREHOLDER /
FUNDS*100

This ratio is one of the most important for measruing the efficiency of
the firmdevelopment. The primary objective of the business in
maximize its earning. This ratio is very important in present as well as
futher development of the management.

RETURN ON EQUITY CAPITAL RATIO (ROECR)

 The return on equity is equal to a fiscal year's net income (after

preferred stock dividends but before common stock dividends) divided
by total equity (excluding preferred shares), expressed as a percentage.
As with many financial ratios, roe is best used to compare companies in
the same industry.

High roe yields no immediate benefit. Since stock prices are most strongly
determined by EARNINGS PER SHARE (EPS), you will be paying twice as
much (in price/book terms) for a 20% roe company as for a 10% roe
company.
FORMULA:-

Return On Equity Capital = Net Profit After Tax Preferrence

Dividend / Equity Share Per Dividend * 100

EARNING PER SHARES (EPS)

 Earnings per share are small variance of return on equity capital

ratio and re calculated by dividing the net profit after taxes and
preference dividend by total number of equity shares .
FORMULA:-

Earnings Per Share = Net Earnings / Number Of

Share Outstanding

LIQUIDITY RATIOS :

CURRENT RATIOS (CR)

This ratio create the relationship between current assets and

current liabilities of a business.

FORMULA:-

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES

CUEERNT ASSETS ----------IT IS THOSE ASSETS WHICH CAN BE

EASILY CONVERTED IN TO CASH WITH IN A YEAR.

CURRENT ASSETS = CASH IN HAND + CASH AT BANK + BILL

RECEIABLE + SHORT TERM INVESTMENT + DEBTORS + STOCK +
PREPAID EXPENSES

QUICK RATIOS (QR)

Quick ratio indicate the is liable to pay its current liability with in
monthly or yearly.

FORMULA:-

Quick ratio = liquid assets / current assets

LIQUID ASSETS ARE THOSE ASSETS WHICH CAN BE USED IN

SHORTLY TIME.

LIQUID ASSETS = CURRENT ASSETS STOCK

PREPAID EXPENSES

THIS RATIO IS USED FOR SHORT TERM FINANCIAL POSITION

OF THE COMPANY.

ACTIVITY RATIOS :

These ratio calculated on the cost of sale or sale, these ratio is also
known as turnover ratio. Turnover ratio indicate the number of the
employees has been included in the progress of the business.
Higher turnover ratio indicates the better uses of capital
and resources for the profitability of the company.
It includes the following:

i.STOCK TURNOVER RATIO

This ratio indicates the relationship between cost of goods during

the year and average stock keept during the year.
FORMULA:-

STOCK TURNOVER RATIO = COST OF GOODS SOLD / AVERAGE

STOCK

HERE, COST OF GOODS SOLD + NET SALE GROSS PROFIT

AVERAGE STOCK = OPENING STOCK + CLOESING STOCK / 2

Higher the ratio is better for selling the stock is quickly.

ii.DEBTOR TURNOVER RATIOT

This ratio is creating the relationship between credit sale and

average debtor during the year.
FORMULA:-

DEBTOR TURNOVER RATIO = NET CREDIT SALE / AVERAGE

DEBTOR + AVERAGE BILL RECEIABLE

iii.WORKING CAPITAL TURNOVER RATIO

a) The WORKING CAPITAL TURNOVER RATIO is also referred to

as net sales TO WORKING CAPITAL. It indicates a company's
effectiveness in using its working capital.

b) The working capital turnover ratio is calculated as follows: net

annual sales DIVIDED BY the average amount of working capital
during the same 12 month period.
C) WORKING CAPITAL is defined as the total amount of current
assets minus the total amount of current liabilities. As indicated
above, you should use the AVERAGE amount of working capital for
the
year
of
the
net
sales.
d) As with most financial ratios, you should compare the working
capital turnover ratio to other companies in the same industry and to
the same company's past and planned working capital turnover ratio.

FORMULA:-

WORKING CAPITAL TURNOVER RATIO = COST OF SALE / NET

WORKING CAPITAL

iv)FIXED ASSETS TURNOVER RATIO

The fixed assets turnover ratio is fixed for a long period of time
FOR THEIR proper utilization.

FORMULA:-

FIXED ASSETS TURNOVER RATIO = COST OF GOODS SOLD / NET

FIXED ASSETS

Here, Net Fixed Assets = Fixed Assets - Deprication

This ratio is particular important in manufacturing concerns where
the investment is fixed assets is quit high. If there is a fall in this ratio
, it will show that fixed assets have not been used as efficiently, as
they had been used in in the pervious year.

 LEVERAGE OR CAPITAL STRUCTURE RATIO:

Leverage Or Capital Structure Ratio Is A Ratio That Disclose The

Firms Ability To Meet The Interest Costs Regulary And Long Term

( in data analysis no
theory add this introduction)
Indebtedness At Maturity.

DATA ANALYSIS
PROFITABILITY RATIOS:
GROSS PROFIT RATIO (RS. IN CRORES)

YEAR
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

MARGINE OF GROSS PROFIT IN CRORE

45.53
51.38
55.03
63.69
61.85
70.73

 The Partners of ShreeTirupati Hero in its meeting held today has

taken on record the unaudited financial results of the Company for
the Quarter ended on 30th June, 2011.
The Company recorded a turnover of Rs. 122.02 Crores during the
Quarter as against Rs. 95.09 Crores recorded during the
corresponding period of previous year showing an upward growth
of about 28%.

The Profit before tax were Rs. 10.14 Crores as against Rs. 5.97
Crores during the corresponding period of previous year. After
providing for tax of Rs. 3.27 Crores, the net profit for the Quarter
ending 30th June, 2011 were Rs. 6.87 Crores as against Rs.
4.19Crores during the corresponding period of previous year, thus
showing an upward growth OF
64%.
The Board of Directors have already recommended a dividend of
Rs. 0.50 (25%) per equity share of Rs. 2/- each subject to approval
of shareholders of the Company in the ensuing Annual General
Meeting.

PROFIT AFTER TAX (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

MARGINE
3.61
5.35
18.18
39.19
35.31

2013-2014

43.44

After-Tax Profit Margin' A financial performance ratio, calculated by

dividing net income after taxes by net sales. A company'safter-tax
profit margin is important because it tells investors the percentage of
money a company actually earns per dollar of sales

 The net amount earned by

a business after
all taxation related expenses have been deducted. The profit after tax
is often a better assessment of what a business is really earning and
hence can use in its operations than its total revenues.

Remove hyperlinks

 DIVIDEND (RS. IN CRORES)

YEAR
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

Dividend
2.78
1.85
3.71
6.64
4.64
4.64

Directors have recommended a Dividend of Rs. 0.50(25%) per

equity shares of Rs.2 each of the year ended 31thMarch, 2012. The
said Dividend, if approved, will absorb Rs. 5.39 Crores (including
Rs.0.75 Crores towards dividend tax).

Directors have recommended a Dividend of Rs. 0.50(25%) per

equity shares of Rs.2 each of the year ended 31thMarch,2013. The

said Dividend, if approved, will absorb Rs. 5.43 Crores (including

Dividend Distribution Tax).

NET WORTH (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Net worth
126.86
118.29
144.44
178.54
206.79
251.29

Net worth is the difference between the asset and the liability of an
individual or a company.

Definition: Net worth is the difference between the asset and the
liability

of

an

individual

or

company.

Description: A high net worth relates to good financial strength and

ultimately good credit rating of an individual or a company. Similarly a
low or negative net worth will relate to a weaker financial strength and
a lower credit rating, thus directly affecting the individual's or the
company's ability to raise funds from the market.

 GROSS FIXED ASSETS (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Gross Fixed Assets

180.97
227.91
244.28
274.81
325.95
371.06

The aggregate amount of physical goods owned by a business.

The value of a company's gross fixed assets is typically assessed
by accounting for each item at the price that the individual asset was
originally obtained for, and so this measure does not take
into account the depreciation or consumption over
time of
the
fixed assets.
A long-term tangible piece of property that a firm owns and uses in
the production of its income and is not expected to be consumed or
converted into cash any sooner than at least one year's time.

Gross fixed capital formation (GFCF) refers to the net increase in

physical assets (investment minus disposals) within the
measurement period. It does not account for the consumption
(depreciation) of fixed capital, and also does not include land
purchases. It is a component of expenditure approach to calculating
GDP

 BOOK VALUE PER SHARE (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

MARGINE
13.68
12.76
15.58
19.26
22.26
27.11

OPERATING RATIO (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

MARGINE
28.08
25.04
31.13
36.23
25.11
26.81

 OPERATING RATIO (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

MARGINE
28.4
21.2
21.2
25.2
25.11
26.81

RETURN ON SHAREHOLDER INVESTMENT (RS. IN

CRORES)

YEAR
2008-2009
2009-2010

MARGINE
12.95
15.23

2010-2011
2011-2012
2012-2013
22013-2014

25.3
21.2
13.9
13.69

RETURN ON EQUITY CAPITAL (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

MARGINE
0.71
0.83
1.02
1.2
2
1.08

EARNING PER SHARE (RS. IN CRORES)

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

MARGINE
7.06
8.33
9.88
9.99
9.56
10.59

LIQUIDITY RATIOS

Current ratio

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Current Ratio
2.11
2.42
2.36
2.89
2.80
2.81

Quick ratio
YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Quick ratio
1.84
2.18
2.16
2.59
2.1
2.5

Activity ratios
Inventory turnover ratio

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Inventory turnover ratio

12.31
3.2
15.2
33.56
21.3
49

Debtor turnover ratios

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Debtor turnover ratio

Working capital turnover ratio

23.32
30.78
15.23
54.24
53
52

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Working capital turnover ratio

101.26
153.23
158.25
159.55
154.56
153.25

FIXED ASSETS TURNOVER

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Fixed assets turnover ratio

0.52
0.54
0.25
1.2
1
1.5

LEVERAGE RATIOS
Debt equity ratio

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Debt Equity ratio

Proprietary ratio

0.45
0.72
0.24
0.5
1.5
2.5

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Propriety Ratio
0.52
0.54
0.25
1.2
1
1.5

ixed assets to shareholders fund

YEAR
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
22013-2014

Fixed assets turnover ratio

0.52
0.54
0.25
1.2
1
1.5

PRESS RELEASED INFORMATION

NET PROFIT UP BY 105%

The Board of Partners of Shree Tirupati Hero in its meeting held

today i.e. 28th May, 2011 has taken on record the audited
financial results of the Company for the year ended on 31st
March, 2011. The Company recorded a turnover of Rs. 95.87
Crores in the year compared to Rs 378.89 Crores recorded in the
previous year showing an upward growth of 25%. The Profit
before tax was Rs.22 crores as against Rs. 27.61 Crores in the
previous year. After providing for tax of Rs 18.03 crores the net
profit for the year was Rs 36.19 Crores as against Rs 18.17
Crores during the previous year, thus showing an upward
growth
of
105%.
During the 4th quarter ended on 31.03.2011, the company
recorded Net Sale of Rs. 116.77 Crores as against Rs. 98.66
Crores during the corresponding period in the previous year.
The Board of Directors has recommended a dividend of Rs 0.50
per equity share of Rs 2/- each subject to approval of
shareholders of the Company in the ensuing Annual General
Meeting.
Production at newly set up Shoe Factory at Greater Noida has
also started and this will further augument the Company's
turnover
and
overall
profitability.
The Company is a leading exporter of Leather Footwear from
India. It also own RED TAPE, a premium brand of Footwear,
Garments and men's accessories.

GROSS INCOME INCREASED BY 28%

The Board of Directors of Mirza International Limited in its meeting

held today has taken on record the unaudited financial results of
the Company for the Quarter ended on 30th June, 2011. The
Company recorded a turnover of Rs. 122.02 Crores during the
Quarter as against Rs. 95.09 Crores recorded during the
corresponding period of previous year showing an upward growth
of about 28%. The Profit before tax were Rs. 10.14 Crores as
against Rs. 5.97 Crores during the corresponding period of
previous year. After providing for tax of Rs. 3.27 Crores, the net
profit for the Quarter ending 30th June, 2011 were Rs. 6.87 Crores
as against Rs. 4.19Crores during the corresponding period of
previous year, thus showing an upward growth of 64%.
The Board of Directors have already recommended a dividend of
Rs. 0.50 (25%) per equity share of Rs. 2/- each subject to approval
of shareholders of the Company in the ensuing Annual General
Meeting.
The Company has also started trial production at its newly set up
ultra Modern Shoe Factory at Greater Noida. The Company has
started reaping benefits of successfully completed first phase of
expansion programme. Further expansion in its capacities are in
progress. Company is also making efforts in the field of Garments
& Apparels marketing and has taken up an ambitious programme to
further enhance its turnover in this field too.

COMPANY DECLARED 25% DIVIDEND

The 32nd Annual General Meeting of theCompany was held

today at theAuditorium of Council for LeatherExports, HBTI
Campus, Nawab Ganj, Kanpur.
Mr.Irshad Mirza, Chairman of the Company
shareholders and other

addressed the

invitees present at the meeting. In his speech, the chairman

pointed out that your Company continues to be leading footwear
company in India. The Company recorded a gross turnover of Rs
474.38 Crores during the year as against Rs. 380 Crores in the
previous year showing a upward growth of about 25 %. The Net
Profit After Tax during the year remained at Rs. 39.85 Crores as
compared to Rs. 18.18 Crores for the previous year and thus
showing an increase of 119 %.
Shareholders approved the Dividend @ 25% on equity shares as
recommended by the Board of Directors of the Company for the
year ended 31st March, 2011. The dividend declared demonstrated
the managements intention to keep the shareholders interest at
heart.
At the end of his speech, Mr. Irshad Mirza whole-heartedly thanked
the shareholders of the Company for their valuable and
unshakable support over the years. He also thanked the Bankers
of the Company, Central Government, State Government and
Council for Leather Exports for their valuable support and
cooperation.
In the meeting, besides the shareholders, directors of the company
viz. Mr. Shahid Mirza, Mr. Tasneef Mirza, Mr. Q.N. Salam, Mr. P.N.
Kapoor, Mr. Sudhindra Jain, Mr. Subhash Sapra and Dr. Yashveer
Singh were present. The meeting was also attended by
representatives of the Companys Bankers, auditors and officers &
employees of the company.

TURNOVER INCREASED BY 12%

The Board of Directors of Mirza International Limited in its

meeting held today has taken on record the un-audited
financial results of the Company for the second quarter ended
on 30th September, 2011. Despite adverse conditions as
prevailing in the overseas market, the Company recorded a
Gross Income of Rs.155.46 Crores during the quarter as against
Rs. 139.03 Crores during the corresponding period in the
previous year and thus showing a growth of 12%.
Benefits of increased income could not result into increased
profits on account of steep increase in price of key raw material
items and increased borrowing costs. The Company has
already taken up its expansion programme and hopeful to get
benefits of the increased capacities by the end of ensuing
financial year.

TURNOVER INCREASED BY 18%

The Board of Directors of Mirza International Limited in its

meeting held today i.e. 6th February, 2012 has taken on record
the Un-Audited Financial Results of the Company for the third
quarter ended on 31st December, 2011. During the quarter
under review, the Company recorded a Gross Income of
Rs.147.40 Crores as against Rs.125.29 Crores during the
corresponding period in the previous year and thus showing a
growth of 18%. Further, during the quarter ended 31st
December, 2011, Company earned Net Profit of Rs. 13.09
Crores as against Rs. 10.55 Crores during the corresponding
period in the previous year and thus showing a growth of 24%.
However, on account of gloomy market situation prevailing in the
global market, Company's operations are witnessing pressure on
its overall income as well as on its gross margins. Company's
overall margins were lower mainly on account of increase in
prices of major raw material items like raw hides and other
chemical items, Borrowing Cost were also on higher side on
account of increased Working Capital requirement and also for
the financing of capital expenditure under expansion programme

of Shoe Units.
The Company is striving hard to achieve its best results and its
consistent growth. The Management is taking all possible steps to
curtail the cost and to improve the overall working of the
Company.
For the Financial Year 2010-11, the Company was awarded for
achieving First Place in Leather Footwear and the Second Place in
Overall Exports by the Council for Leather Exports.

PERFORMANCE
COMPANY

OF

THE

 The revenue from operations increased by 15% to Rs.556.85

Crores.

The EBITDA INCREASED TO Rs. 87.82 Crores as against in the

last year.

Export increased by 16% to Rs.362.33 Crores.

The Revenue from Domestic Market increased by 22% to Rs.

145.02 Crores.

The Profit before Tax decrease BY 12% TO Rs.51.56 Crores.

The Cash Profit decreased by 5% to Rs. 50.24 Crores.

 The Net Profit decreased by 11% to rs. 35.31 Crores.

DIVIDEND

Directors have recommended a Dividend of Rs. 0.50(25%) per equity

shares of Rs.2 each of the year ended 31thMarch,2012.The said
Dividend, if approved, will absorb Rs. 5.39 Crores (including Rs.0.75
Crores towards dividend tax).

EXPANSION PROGRAMME

The production at newly set up ultra moderm Shoes Unit of

Greater Nodia was started and capacitiesat oher Shoes Unit as
also being enhanced as planned. These will future augument the
overall production volume and also effiency level to improve
profitability.

Segment Wise Performance

The companys business segement is primelyShoes division

and Tannery division .Shoes division Revenue was Rs.494.32
Crores and Tannery division Revenue was Rs.144.24 crores.

RISK MANAGEMENT

The company organizational structure has well risk defined Risk

Management Policy. The key managerial personnel are
responsible to formulate, assess and review the key risk factors
and accordingly generate the risk management policies for
present and future performance.

HUMAN RESOURCE

Human Resource Policies are formed and implemented for the

development of the employees as well as the Organization. The
company has a staff strength of about 2611 employees
consisting of persons well qualified and trained in their
respective field.

PUBLIC DEPOSITES

The Company Has Not Accepted Any Deposit From Public With
In The Meaning Of The Sector 58A Of The Company Act, 1956
During The Year Under The Review.

EXPORTS

DURING THE YEAR UNDER REVIEW , THE EXPORTS

AMOUNTED TO RS.362.22 CRORES AS AGAIN RS.312.38
CRORES IN THE PREVIOUS YEAR SHOWINGTHE GROWTH OF
16%.

AUDITORS

AUDITOR OF THE COMPANY WILL RETIRE AT THE CONCLUSION

OF THE FORTHCOMMING ANNUAL GENERAL MEETING AND
BEING ELIGIBLE OFFER THEMSELVES FOR RE-APPOINTMENT.

THE COMPANY HAS RECEIVED LETTERS FROM THEM TO THE

EFFECT
THAT THEIR REAPPOINTMENT, WITH IN
THE PRESCRIBED LIMITS UNDER SECTION 224(1B)OF THE
COMPANY ACT, 1956AND THAT THEY ARE NOT DIS QUALIFIED
FOR REAPPOINTMENT WITH IN THE MEANING OF SECTION 226
OF THE SAID ACT.

AUDITORS REPORTS

Auditor in the report has not made any adverse observation and
hence does not call for any future comments.

COST AUDIT

The company cost records in respects of PVC/TPR Sole of the year

ended 31th march, 2012.cost audit report for the financial year
2010-2011was filled on 26.09.2011. The cost audit report for the
financial year 2011-2012was filled within 180days from the
commencement of the financial year 2012-2013.

MARKET PRICE DATA

The closing market price of equity share on 31st march ,2012(last

trading day of the year)was Rs.18.60 on NSE 7 Rs.18.60 on BSE.

Where is findings

Where is
reccommdation

CONCLUSION

To start a journey one needs to take small but firms steps. It is

these steps that allowed Mirza to gain foothold in the tannery
business. Although it started small but very soon became a name
to reckon with in the industry.
Mirzas journey began in the year 1979 with a small tannery for
manufacturing Finished Leather at Magarwara near Kanpur. The

Company was called Mirza Tanners Private Limited, established

by Mr. Irshad Mirza and Mr. Rashid Mirza.

The main reason behind the phenomenal success of the company,

right from the beginning, is the high quality standard set by the
promoters. The company focused on supplying high quality leather
and leather products to the overseas markets and gradually
became one of the largest exporters of finished leather in the
country.
The emphasis of company is to strive harder to achieve success
and reach new heights.

We need to strive harder than yesterday to reach further and to

excel. We need to set global benchmarks and we need to beat
ourselves at it always.

At a time when the leather footwear industry is emerging as an

outsourcing hub for global retail chains, and the domestic retail
sector is booming, Mirza Intrernational Ltd., a fully-integrated leather
shoe Company with an established name, is well placed to encash the
opportunities.

The Company's management has redesigned its business model

and chalked out an ambitious growth plan. First, it plans to open
Company-owned retail stores for menswear in India and enter the
high-potential ladies footwear segment. Next, it intends to leverage
its strengths in the footwear business and expand its footprints in
the fast-growing geographies of USA, France, Germany and other
attractive European markets.

Where is
Findings,

Conclusions,

Limitations of The Study,

Suggestions And Recommendations,

Bibliography, &

Annexure

APPENDIX

BALANCE SHEET AS AT 31ST MARCH

LIABILITIES

2014

2013

SHARE CAPITAL

1854

1854

23275

18825

LONG TERM BORROWINGS

5038

4586

TAX

1898

1830

OTHER LONG TERM LIABILITIES

203

173

LONG TERM PROVISION

483

434

10402

10240

TRADE PAYABLE

4850

3444

CURRENT LIABILIIES

1833

3775

759

715

50595

45876

RESERVE & SURPLUS

SHORT TERM BORROWINGS

SHORT TERM PROVISION

TOTAL

ASSETS

TANGIABLE ASSETS

2014

25161

2013

22477

WIP

2984

1652

70

70

471

633

13830

12744

3255

3696

CASH

387

1197

SHORT TERM LOAN

165

455

OTHER CURRENT ASSETS

4272

2952

TOTAL

50595

45876

NON CURRENT INVESTMENT

LONG TERM
LOAN
INVENTORIES
TRADE
INVENTORIES
RECEIABLE
TRADE RECEIABLE

PROFIT & LOSS A/C FOR YEAR ENDED 31ST

MARCH(Rs. In LAKHS)

PARTICULAR

REVENUE FROM
OPERATIONS
OTHER INCOME

2014

64340
33

2013

55653
32

TOTAL
REVENUE
EXPENSES:
COST OF MATERIAL
CONSUMED
PURCHASE OF STOCK IN
TRADE
WIP
EMPLOYEE BENEFITS
EPENSE
FINANCE COST
DEPRICATION
OTHER EXPENSE
TOTAL
EXPENSES
PROFIT BEFORE extra
ordinary items & TAX
PROFIT ON SALE OF
INVESTMENT

PROFIT
BEFORE
TAX
CURRENT TAX
DEFERRRED TAX
PROFIT of the year
EARNING
PER EQUITY
SHARE

64373

55685

22903

21391

15298
-1182

13241
-1813

3286
3157
1992
12480

2884
2720
1527
11200

57934

51150

6439

4535
621

6439
2027
68

5156
1536
89

4344

3531

4.69

3.81

CASH FLOW STATEMENT FOR YEAR

ENDED 31ST MARCH
PARTICULAR
CASH FROM OPERATING

2014

2013

ACTIVITY
Net profit before tax
ADD:
LOSS ON SALE OF FIXED ASSETS
DEPRICATION
INTEREST
LESS:
INTEREST INCOME

6439

4535

43
1992
3157
5192

46
1527
2720
4292

14

12

INCOME FROM GOV.

OPERATING PROFIT BEFORE WOKING CAPITAL
CHANGE

13

13

11604

8802

ADJUSTMENT
TRADE RECEIABLE
INVENTORY
TRADE PAYABLES
OTHERS
CASH GENERATE FROM OPERATIONS
DIRECT TAX PAID
CASH FLOW BEFORE EXTRA ORDINARY ITEMS
NET CASH FROM OPERATING ACTIVITY

-442
-1085
1289
-1461
10789
-1850
8939
8939

-574
-227
286
195
6436
-1440
4996
4996

-6069
245
0
0
14
0
0

-5385
99
-35
664
12
0
38

-5810

-4607

CASH FLOW FROM INVESTING

ACTIVITIES
PURCHASES OF FIXED ASSETS
SALE OF FIXED ASSETS
PURCHASES IF INVESTMENT
DSALE OF INVESTMENT
INTEREST RECEIVED
GOV.GRANT RECEIVED
NET CASH USED IN INVESTING ACTIVITIES

CASH FLOW FROM FINANCIAL

ACTIVITIES
DIVIDEND PAID
DIVIDEND TAX PAID
BROWING FROM BANK
PROCEED FROM TERM LOAN
REPAYMENT OF TERM LOAN

-460
-75
77
1900

-475
-77
1904
3100

-2225
-3157

-1125
-3000

-3940

327

NET INCREASED IN CASH

EQUIVALENTS

-811

717

CASH EQUIVALENT AS ON
01.04.2011(OPENING BALANCE)

1197

480

CASH EQUIVALENT AS ON
31.03.2012(CLOSING BALANCE)

386

1197

INTEREST PAID
NET CASH USED IN FINANCIAL
ACTIVITIES