Topic: - Analysis of dividend policies of Jk

Lakshmi cement and Infosys Technology and

their effect on the share price
Submitted by: - Submitted to:-
Avinash Singh Ms. Swati Goyal
Roll-no=B49 Lecturer LSB
Section:-R1902
Regs.No:-10907570
Introduction of Infosys Technology

Infosys was founded on 2 July 1981 by seven entrepreneurs N R Narayana Murthy, N Nandan Nilkani, Neeraj Singh, Kris
GopalKrishan, S D Shibulal, Prabal Nandi and Abhishek Rastogi with N S Raghvan officially being the first employee of the company.
Founders started the company with an initial investment of INR 1000. The company was incorporated as "Infosys Consultants Pvt Ltd."
in Model Colony, Pune as the registered office.

In 1982, Infosys opened an office in Bangalore which soon became its headquarters.

Infosys headquarters in Bangalore, India

Infosys went public in 1993. Interestingly, Infosys IPO was under subscribed but it was bailed out by US investment banker Morgan
Stanley which picked up 13% of equity at the offer price of Rs. 95 per share . The share price surged to Rs. 8,100 by 1999. By the year
2000 Infosys's shares touched Rs. 15,600 before the catastrophic incident of 9/11, changed all that.

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

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

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

Business Week reported that Infosys, along with Wipro and TCS accounted for nearly 80% of the [H-1B] visa petitions approved in
2007 for the top 10 participants in the program.
Introduction Of JK Lakshmi Cement Ltd.

Lakshmi Cement, member of the JK organization is a blue chip cement company operating in India. Launched in 1982, Lakshmi
Cement, an ISO9001:2000 company, is built over an area of about 8 square kilometers at Jakaypuram in the Sirohi District of Rajasthan.
It is a public company listed on the Bombay Stock Exchange.

As one of the large manufacturers in the Indian cement industry, JK Lakshmi Cement has acquired the ultra modern equipment from
Fuller International of the United States of America, and electronic packers from Ventomatic in Italy. The annual installed plant capacity
was 3.4 million tonnes per annum in 2007, but was being expanded to 5 million tonnes per annum during 2008-9.

JK Lakshmi Cement has offices in Rajasthan, Gujrat, Maharashtra, Punjab, Haryana, Delhi, Uttarkhand, Uttar Pradesh, H.P and J&K,
along with stock dumps at various places in every state to ensure uninterrupted supply to customers.

JK Lakshmi Cement produces Portland cement at grades 43 & 53 and Blended cement. It also produces Plaster of Paris and Ready
mixed concrete.

J K Lakshmi Cement claims to be the only cement in India that comes with the unique Mazbooti (Strength) Guarantee.
Balance Sheet of Infosys Technology

Balance Sheet of Infosys Technologies

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 135.29 138.00 286.00 286.00 286.00
Equity Share Capital 135.29 138.00 286.00 286.00 286.00
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 5,106.44 6,759.00 10,876.00 13,204.00 17,523.00
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 5,241.73 6,897.00 11,162.00 13,490.00 17,809.00
Secured Loans 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 0.00 0.00 0.00 0.00 0.00
Total Debt 0.00 0.00 0.00 0.00 0.00
Total Liabilities 5,241.73 6,897.00 11,162.00 13,490.00 17,809.00
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 2,182.72 2,837.00 3,889.00 4,508.00 5,986.00
Less: Accum. Depreciation 1,005.82 1,275.00 1,739.00 1,837.00 2,187.00
Net Block 1,176.90 1,562.00 2,150.00 2,671.00 3,799.00
Capital Work in Progress 317.52 571.00 957.00 1,260.00 615.00
Investments 1,328.70 876.00 839.00 964.00 1,005.00
Inventories 0.00 0.00 0.00 0.00 0.00
Sundry Debtors 1,252.82 1,518.00 2,292.00 3,093.00 3,390.00
Cash and Bank Balance 268.15 544.00 680.00 657.00 805.00
Total Current Assets 1,520.97 2,062.00 2,972.00 3,750.00 4,195.00
Loans and Advances 1,030.29 1,308.00 1,241.00 2,804.00 3,303.00
Fixed Deposits 1,213.39 2,735.00 4,827.00 5,772.00 8,234.00
Total CA, Loans & Advances 3,764.65 6,105.00 9,040.00 12,326.00 15,732.00
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 578.56 808.00 1,162.00 1,483.00 1,544.00
Provisions 767.48 1,409.00 662.00 2,248.00 1,798.00
Total CL & Provisions 1,346.04 2,217.00 1,824.00 3,731.00 3,342.00
Net Current Assets 2,418.61 3,888.00 7,216.00 8,595.00 12,390.00
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 5,241.73 6,897.00 11,162.00 13,490.00 17,809.00

Contingent Liabilities 289.87 523.00 670.00 603.00 347.00

Book Value (Rs) 193.73 250.29 195.41 235.84 310.90

Balance Sheet Of JK Lakshmi Cement Ltd.

(Rs in Crs)
Year Mar 09 Mar 08 Mar 07 Mar 06 Mar 05 Mar 04 Sep 02 Sep 01

SOURCES OF FUNDS :

Share Capital + 61.19 61.19 57.09 49.77 55.29 55.29 49.63 49.63

Reserves Total + 770.06 581.23 352.72 163.44 108.12 94.13 133.12 158.68

Equity Share Warrants 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Equity Application Money 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Shareholders Funds 831.25 642.42 409.81 213.21 163.41 149.42 182.75 208.31

Secured Loans + 573.63 595.71 641.30 606.62 616.43 659.24 687.89 700.90

Unsecured Loans + 129.04 112.13 88.34 85.07 81.10 82.83 96.24 77.86

Total Debt 702.67 707.84 729.64 691.69 697.53 742.07 784.13 778.76

Total Liabilities 1,533.92 1,350.26 1,139.45 904.90 860.94 891.49 966.88 987.07

APPLICATION OF FUNDS :

Gross Block + 1,760.48 1,474.15 1,340.52 1,175.48 1,064.19 1,092.76 1,087.72 1,087.01

Less : Accumulated Depreciation + 747.39 663.33 595.01 538.09 484.52 459.88 383.08 330.07

Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
 Net Block + 1,013.09 810.82 745.51 637.39 579.67 632.88 704.64 756.94

Lease Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Capital Work in Progress+ 97.04 101.14 76.62 87.89 20.31 0.83 4.00 4.03

Investments + 88.91 13.03 58.11 0.11 171.61 173.68 177.58 181.57

Current Assets, Loans & Advances

Inventories + 66.02 62.19 55.82 36.64 32.75 33.55 53.31 65.03

Sundry Debtors + 23.32 18.61 17.76 20.99 16.24 29.40 36.88 41.18

Cash and Bank+ 326.67 347.58 150.68 12.09 22.56 10.63 17.01 20.74

Loans and Advances + 215.94 161.88 117.69 124.29 34.20 31.50 24.31 37.64

Total Current Assets 631.95 590.26 341.95 194.01 105.75 105.08 131.51 164.59

Less : Current Liabilities and Provisions

Current Liabilities + 171.33 133.21 110.17 50.77 50.14 54.31 65.45 119.69
3.68

Provisions + 90.64 43.78 10.61 1.77 5.30 6.02 3.82

Profit & Loss account of Infosys

------------------- in Rs. Cr. -------------------
Technologies
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Income
6,859.6
Sales Turnover 9,028.00 13,149.00 15,648.00 20,264.00
6
Excise Duty 0.00 0.00 0.00 0.00 0.00
6,859.6
Net Sales 9,028.00 13,149.00 15,648.00 20,264.00
6
Other Income 172.79 144.00 379.00 683.00 502.00
Stock Adjustments 0.00 0.00 0.00 0.00 0.00
7,032.4
Total Income 9,172.00 13,528.00 16,331.00 20,766.00
5
Expenditure
Raw Materials 13.55 16.00 22.00 18.00 20.00
Power & Fuel Cost 40.20 62.00 88.00 106.00 125.00
Employee Cost 3,183.2 4,274.00 6,316.00 7,771.00 9,975.00
 5
Other Manufacturing Expenses 563.47 792.00 1,290.00 1,443.00 1,697.00
Selling and Admin Expenses 697.15 773.49 1,050.53 1,214.00 1,367.00
Miscellaneous Expenses 35.84 120.51 156.47 132.00 172.00
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
4,533.4
Total Expenses 6,038.00 8,923.00 10,684.00 13,356.00
6
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
2,326.2
Operating Profit 2,990.00 4,226.00 4,964.00 6,908.00
0
2,498.9
PBDIT 3,134.00 4,605.00 5,647.00 7,410.00
9
Interest 1.09 1.00 1.00 1.00 2.00
2,497.9
PBDT 3,133.00 4,604.00 5,646.00 7,408.00
0
Depreciation 268.22 409.00 469.00 546.00 694.00
Other Written Off 0.00 0.00 0.00 0.00 0.00
2,229.6
Profit Before Tax 2,724.00 4,135.00 5,100.00 6,714.00
8
Extra-ordinary items -4.59 0.00 -5.00 0.00 -1.00
2,225.0
PBT (Post Extra-ord Items) 2,724.00 4,130.00 5,100.00 6,713.00
9
Tax 325.30 303.00 352.00 630.00 895.00
1,904.3
Reported Net Profit 2,421.00 3,783.00 4,470.00 5,819.00
8
4,519.9
Total Value Addition 6,022.00 8,901.00 10,666.00 13,336.00
1
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 309.80 1,238.00 649.00 1,902.00 1,345.00
Corporate Dividend Tax 42.17 174.00 102.00 323.00 228.00
Per share data (annualised)
2,705.7
Shares in issue (lakhs) 2,755.55 5,712.10 5,719.96 5,728.30
1
Earning Per Share (Rs) 70.38 87.86 66.23 78.15 101.58
Equity Dividend (%) 230.00 900.00 230.00 665.00 470.00
Book Value (Rs) 193.73 250.29 195.41 235.84 310.90

Profit & Loss account of JK Lakshmi

------------------- in Rs. Cr. -------------------
Cement
Mar
Mar '06 Mar '07 Mar '08 Mar '09
'05

12
12 mths 12 mths 12 mths 12 mths
mths
Income
593.3
Sales Turnover 701.20 972.97 1,289.34 1,406.22
0
104.9
Excise Duty 116.95 128.69 178.05 180.15
5
488.3
Net Sales 584.25 844.28 1,111.29 1,226.07
5
Other Income 9.35 5.97 10.88 10.95 34.53

Stock Adjustments 4.72 -5.93 11.08 -1.20 -5.44

502.4
Total Income 584.29 866.24 1,121.04 1,255.16
2
Expenditure
116.3
Raw Materials 129.20 168.43 206.64 267.41
3
177.0
Power & Fuel Cost 180.69 219.05 245.85 306.27
1
Employee Cost 27.82 30.98 34.90 55.94 69.16

Other Manufacturing Expenses 1.90 2.75 5.80 10.88 13.88

Selling and Admin Expenses 86.11 93.98 148.05 202.75 225.89

Miscellaneous Expenses 14.37 19.14 23.12 36.58 27.25

Preoperative Exp Capitalized 0.00 0.00 0.00 0.00 0.00

423.5
Total Expenses 456.74 599.35 758.64 909.86
4
Mar
Mar '06 Mar '07 Mar '08 Mar '09
'05

12
12 mths 12 mths 12 mths 12 mths
mths

Operating Profit 69.53 121.58 256.01 351.45 310.77

PBDIT 78.88 127.55 266.89 362.40 345.30

Interest 7.20 22.31 43.89 53.96 49.51

PBDT 71.68 105.24 223.00 308.44 295.79

Depreciation 48.95 53.07 44.33 58.54 69.11

Other Written Off 0.74 0.00 0.00 0.00 0.00

Profit Before Tax 21.99 52.17 178.67 249.90 226.68

Extra-ordinary items 4.25 4.07 0.14 0.69 0.00

PBT (Post Extra-ord Items) 26.24 56.24 178.81 250.59 226.68

Tax -0.43 0.80 0.71 26.93 48.09

Reported Net Profit 26.05 55.45 178.11 223.67 178.59

307.2
Total Value Addition 327.53 430.92 551.99 642.45
1
Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 0.00 0.00 5.71 15.30 24.47

Corporate Dividend Tax 0.00 0.00 0.97 2.60 4.16

Per share data (annualized)
553.1
Shares in issue (lakhs) 497.56 570.77 611.79 611.79
0
Earnings Per Share (Rs) 4.71 11.14 31.21 36.56 29.19

Equity Dividend (%) 0.00 0.00 10.00 25.00 40.00

Book Value (Rs) 22.83 36.07 68.17 103.74 128.25

JK Lakshmi cement Dividend history

Year End Dividend(in Cr) Dividend (%) Div Yield (%)

2009 24.47 40.00 18.67
2008 15.3 25.00 4.31
2007 5.71 10.00 1.89
2006 0 0.00 0.00
2005 0 0.00 0.00

Infosys technology dividend history

Year End Dividend % Dividend (in Cr)

Mar 2009 470.00 1345

Mar 2008 665.00 1902

Mar 2007 230.00 649

Mar 2006 900.00 1238

Mar 2005 230.00 309

Dividend Analysis of Infosys Company
 Comparison Between years 2005-2006:-

In the year 2005 the Infosys Technology have given the 230% of the dividend to the shareholders
which is 309 crore. When company announced the dividend the share price of the company was
Rs 3012. After the announcement of the dividend the market price of the share increases. So the
demand of the share increases but the supply remains constant. Therefore more shareholders have
come to the company and value of the company increases and company has earned good profits
but in the year 2006 the company has given 900% dividend which is 1238 crore and which is
more than the previous year. When the company announced the dividend the share price of the
company was Rs 3104. After the announcement of the dividend the market price of the share
increases much more than the previous year and at the same time demand of the share increases
which increases the value of the company more.

 Comparison Between Years 2006-2007:-

In the year 2006 the company has given 900% dividend which is 1238 crore. When the company
announced the dividend the share price of the company was Rs 3104. After the announcement of
the dividend the market price of the share increases much more than the previous year and at the
same time demand of the share increases which increases the value of the company but in the year
 2007 company have given the 230% dividend which is 649 crore which is very less than the
previous year and which also affect the market price of the company. When dividend was
announced the market price was 3200 but due to less issue of dividend the demand decreases and
market price of the share decreases very much.

 Comparison Between the years 2007-2008:-

In the year 2007 company have given the 230% dividend which is 649 crore which is very less
than the previous year and which also affect the market price of the company. When dividend was
announced the market price was 3200 but due to less issue of dividend the demand decreases and
market price of the share decreases very much but in the year 2008 the company have given the
665% which is 1902 crore. When dividend was announced the share price of the company was
2600 crore but due to more issue of dividend the demand again increases and market price of the
company increases again.

 Comparison Between the year 2008-2009:-

In the year 2008 the company have given the 665% which is 1902 crore. When dividend was
announced the share price of the company was 2600 crore but due to more issue of dividend the
demand again increases and market price of the company increases again but in the year 2009 the
company have given the 470% which is 1345 crore which is less than the previous year. When
the dividend was announced the share price of the company was 2834 crore but due to less issue
of dividend in the year 2009 the share price of the company again decreases to 2687 crore which
is the present share price.

Dividend Analysis of JK Lakshmi Cement Ltd.

 Comparison Between the years 2005-2006:-

In the year 2005 company have given the no dividend to the shareholders. At that time the share
price of the company was Rs 44. Due to not giving the dividends to the shareholders there is no
effect in the market price of the share. Again in the year 2006 the company has given the no
dividend to the shareholders and which have no effect in the market price of the share.

 Comparison Between the year 2006-2007:-

In the year 2006 the company has given the no dividend to the shareholders and which have no
effect in the market price of the share but in the year 2007 the company have given the 10%
 dividend to the shareholders which is 5.71 crore. Due to giving of dividend the market price of the
share increases which come to Rs 51 which increases the value of the company

 Comparison Between the year 2007-2008:-

In the year 2007 the company have given the 10% dividend to the shareholders which is 5.71
crore. Due to giving of dividend the market price of the share increases which come to Rs 51
which increases the value of the company but in the year 2008 the company have give the more
dividend to the shareholders that is 25% which is 15.3 crore. Due to this the demand increases
more and there is the positive effect to the company.

 Comparison Between the year 2008-2009:-

In the year 2008 the company have give the more dividend to the shareholders that is 25% which
is 15.3 crore. Due to this the demand increases more and there is the positive effect to the
company but again in the year 2009 the company announced the more dividends which is 40%

which amounts to 24.47 crore which again increases the demand of the share and which increases
the value of the company.

Interpretation of the two companies

 As from the above analysis we can say that the Infosys company has more wealth and it have the
more shareholders in the company but JK Lakshmi cement Ltd. have given very less dividend to
the shareholders which affect the demand of the share and also its wealth. But when we compare
both of the companies we see that the company Infosys dividends have gone in a positive way
from the year 2005-2006 but in the year 2007 the company dividend have decreased from the
previous year and which declines its market price but again in the year 2008 the company
announced the more dividends and which again increases its market price and in the year 2009 the
company again announced the less dividend and which again reduces its market price. From above
interpretation we can say that the company has given the dividend to the shareholders according to
the profits they have earned and also they first increases the dividend and in the last year it again
decreases. But the case is different in case of JK Lakshmi Cement Ltd. In this company the
dividends have given to the shareholders in a increasing way from the year 2005-2009. In the first
two year company have given no dividends to the shareholders but after that their dividends have
increased in a continuous way from the year 2007-2009 which increases the wealth of the
company.

References:-
 http://www.companyintoduction/57/99/090.co.in

 http://www.capitalline.com/88/909/.co.in

 http://companyshareprice/87/89/90.co.in

 http://www.moneymarket.combalancesheets/567/908/07.co.in

 http://www.dividendannouncementinthelastyears/657/989/879/4.co.in