A PROJECT REPORT ON FINANCIAL ANALYSIS OF SUZLON ENERGY LTD.

IN PARTIAL FULFILLMENT OF ACADEMIC REQUIREMENT OF M.B.A (RM) SEM. I

Academic Year: 2012

SUBMITTED by:-

Sr.n 1 2 3 4

NAME BUSA DHYANASH K DAVE HEMANT B GAUSWAMI ARUN D PATEL JIGNESH I

R.no 2 5 9 14

class RM RM RM RM

SUBMITTED TO:POOJA THAKKAR CENTRAL FOR MANAGEMENT STUDIES

1

No.
1. Introduction

Particular

Page No
4

2. Vision

3. Bord of Directors

4. Directors report

10

3. Auditors report

15

4. Corporate governance

20

5. Horizontal analysis

26

6. Common size analysis

35

7. Multistep analysis

40

8. Ratio analysis

43

9. Bibliography

67

10. Balance sheet

69

11. Profit & loss a/c

71

12. Finding

13. Conclusion

PREFACE
This is a part of studies for the students of management. The analytical knowledge at MBA (RM) SEM-01 level helps us to know the working problems of industries before we enter into any organization as an employee or executive. This will help the students to come out & exhibit by analytical preparation.

Under this report, one has to stay there in the company & collect the information & prepare a report. In accordance with MBA(RM) SEM-01 syllabus, We have undergone my at SUZLON ENERGY LIMITES

We are glad to present our report based on SUZLON ENERGY LIMITES

ACKNOWLEDGEMENT
We first of all want to thank to the College for giving us such an opportunity for expanding our knowledge. We would like to express our thanks to the management of SUZLON ENERGY LTD. For giving us the opportunity of make a study of practical training in their organization. We also would like to thank to our PRO.POOJA THAKAR for helping us and also giving guidance in preparing the project report.

INTRODUCTION

The Company was incorporated in 1995 by Tulsi Tanti. Tulsi Tanti was primarily in the textile business and was introduced to wind energy through a wind power project that he had commissioned for his textile factory.

The Company entered into a technical collaboration agreement in 1995 with a German company, Sudwind GmbH Windkrafttanlagen to source the latest technology for the production of WTGs in India.

The parties entered into a fresh agreement dated September 30, 1996, under which Sudwind proposed to share technical knowhow relating to 0.27 MW, 0.30 MW, 0.35 MW, 0.60 MW and 0.75 MW WTGs in consideration for royalty to be paid on the basis of each WTG sold over the course of five years from the date of this agreement.

SWSL, a subsidiary of the Company, was incorporated in 1998 with the objective of providing O&M for wind power projects set up by the Company.

Suzlon Energy A/S, a wholly owned subsidiary of the Company was incorporated in August, 2004 to supervise the international marketing activities of the Company.

Cannon Ball Wind Energy Park-I, LLC ("Cannon Ball") was incorporated as a limited liability company in July, 2002 for the purpose of setting up a wind power project in North Dakota, USA. Cannon Ball is a wholly owned subsidiary of SWECO which is a subsidiary of Suzlon Energy A/S.

VISION

To be the technology leader in the wind industry To be among the top three wind energy companies in the world To be the most respected brand and preferred Company for all stake holders To be the best team and best place to work To be the fastest growing and most profitable Company in the sector

Board of Directors

Name Mr. Tulsi R Tanti e Mr. Ashish Mr. Pradip Kumar Khaitan Mr. V Raghuraman Mr. Ajay Relan Mr. Girish R Tanti Mr. Toine van Megen Mr. Robin Banerjee Mr. Sumant Sinha Mr. Hemal A Kanuga

Designation Chairman and Managing director Dhawan Independent Director Independent Director Independent Director Independent Director Whole Time Director Chief Executive Officer Chief Finance Officer Chief Operating Officer Co. Secretary & Compl. Officer

AWARDS
Minister for Non-Conventional Energy Sources Vilas Muttemwar and his Ministry has been honoured with the World Wind Energy Award-2005 for "Outstanding Achievements in Favourable Policies for Wind Energy". Energy Association (WWEA). Suzlon Energy, Indias leading and the worlds fifth largest wind power solutions company, has been awarded the Euromoney and Ernst & Young Global Renewable Energy Award for M&A of the Year for the successful acquisition of REpower Systems AG of Germany. Suzlon Corp. (Pune, India) was recently awarded U.S. Environmental Protection Agency (EPA) recognition for implementing a program from Ashland Distribution . The company received the EPA's "Design for the Environment" formulator initiative award in recently By the World Wind

PRODUCTS
Wind Turbine Generators Above 1MW up to Wind Turbine Generators Above 2MW Wind Turbine Generator Upto 1MW Wind Turbine Generator 2MW

COMPETITORS
Main Competitors

Bharat heavy electrical limited Reliance infrastructure Nuclear power corporation of India Tata powers

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Directors report

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Directors report
The Directors present the Seventeenth Annual Report of your Company together with the audited financial statements for the financial year ended March 31,2012

1) Financial performance: The standalone and consolidated audited financial results for the Year ended March 31,2012 are asunder:

STANDALONE
Particulars Revenue from operation Other operating income EBITDA LESS: Depreciation & amortization Exp. EBIT ADD: finance Income LESS: finance Costs loss before tax before exception item LESS: exception items loss before tax Less: current Tax LESS: Deferred Tax loss after tax ADD: share In Associate LESS: Share of Loss/(profit) Of minority Net Loss For The Year ADD: Balance Brought Forward ADD: Additions Due to merger Profit Available for Appropriations LESS: Transfer to Legal and Statutory Res. LESS: Transfer to Capital Redemption reserve surplus carried to balance sheet N.A N.A -505.38 200.34 191 N.A -114.04 0 0 -114.04 2012-2011 6853.52 17.69 569.79 182.68 387.11 347.06 884.02 -149.85 348.92 -498.77 6.61 0 -505.38 N.A N.A -185.66 386 2011-2010 4357.55 8.84 260.33 156.89 103.44 331.67 658.32 -223.21 37.28 -260.49 19.19 -55.64 -185.66

200.34 0 0 200.34

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CONSOLIDATED

PARTICULAR Revenue from operation Other operating income EBITDA LESS: Depreciation & amortization Exp. EBIT ADD: Finance Income LESS: Finance Costs Loss before tax before exception item LESS: Exception items Loss before tax LESS: current Tax (Net of earlier years TAX And MAT Credit Entitlement) LESS: Deferred Tax Loss after tax ADD: share In Associate LESS: Share of Loss/(profit) Of minority Net Loss For The Year ADD: Balance Brought Forward ADD: Additions Due to merger Profit Available for Appropriations LESS: Transfer to Legal and Statutory Res. LESS: Transfer to Capital redemption reserve

2012-11

2011-10

21,082.37 17,879.13 276.84 211.1 1,821.20 1,047.24 661.23 1,159.97 125.74 1,654.74 -369.03 -227.24 -141.79 95.43 235.37 -472.59 -33.29 27.3 -478.58 -553.16 -31.26 -1,063.00 0 0 -1,063 657.40 389.84 106.6 1,374.78 -878.34 253.28 -1131.62 146.90 38.37 -1,316.89 -27.83 20.75 -1323.97 943.03 0 -380.94 142.22 30 -553.16

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.2) OPERATIONS REVIEW: On a standalone basis, the Company achieved revenue from operations of Rs 6,853.52 Crores and EBIT of Rs 387.11 Crores as against Rs4,357.55Crores and Rs 103.44 Crores respectively in the previous year. Net loss after tax is Rs 505.38 Crores as compared to net loss after tax of Rs 185.66 Crores in the previous year. Though the volume and performance improved compared to previous year, there is increase in loss compared to previous year, primarily due to provision for diminution in value of investment in subsidiaries of Rs 348.92 Crores, foreign exchange loss and increase in finance cost.

On consolidated basis, the Group achieved revenue from operations of Rs 21,082.37 Crores and EBIT of Rs 1,159.97 Crores as against Rs 17,879.13 Crores and Rs 389.84 Crores respectively in the previous year. Net loss for the year is Rs 478.58 Crores as compared to loss of Rs 1,323.97 Crores in the previous year. During the year, there is decrease in loss compared to previous year primarily due to increase in sales volume resulting to higher EBIT. Also during the year, sale of Hansen stake and reversal of provision towards diminution in investment in Hansen contributed gain of Rs 227.24 Crores while in previous year provision towards diminution in investment in Hansen resulted into loss of Rs216.00 Crores.

3. DIVIDEND: In view of losses incurred during the year 2011-12 the Board of Directors do not recommend any dividend for the year under review.

4. CAPITAL: Authorized and paid-up share capital - During the year under review there was no change in the Authorized Share Capital and Paid- up Share Capital. As on date, the Authorized Share Capital of the Company is Rs 700,00,00,000/- divided into 350,00,00,000 equity shares of Rs 2/- each and the paid-up capital of the Company is Rs 355,47,31,294/- divided 177,73,65,647 equity shares of Rs 2/-each.

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5. Particulars of conservation of energy, research and development, technology absorption and foreign exchange earnings and outgo: Information as required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 has been provided in an Annexure which forms part of the Directors'' Report.

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Auditors report

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Auditors report
1. We have audited the attached Balance Sheet of Suzlon Energy Limited (''theCompany'')a sat March 31,2012and also the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility ofthe Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India.Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion. 3. As required by the Companies (Auditor''s Report) Order, 2003 (asamended) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the

Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and5 of the said Order. 4. Further to our comments in the Annexure referred to above, we report that:

i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

iii. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

iv. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211ofthe Companies Act, 1956;

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v. On the basis of the written representations received from the directors, as on March 31, 2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2012 from being appointed as a director in terms of clause (g)of sub-section (1)of section 274oftheCompanies Act, 1956;

vi. Without qualifying our opinion we draw attention to Note 4 of the accompanying financial statements regarding the existence of certain liabilities on account of foreign currency convertible bonds (''FCCB'') which are due for redemption during June 2012 and Oct. 2012 having an aggregate redemption value of USD 568.96 Million (Rs. 2,894.58 Crore). The Company is in the process of tying up funds for redemption of these FCCB Liabilities and consequently, there exists a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern, which is dependent on generating the required funds before the redemption date. Management''s plans forraising funds for such redemption have been more fully discussed in Note 4 to the accompanying financial statements, in view of which the accompanying financial statements have been prepared under the going concern assumption, and consequently, no adjustment shave been made tothe carrying value so classification of balance sheet accounts;

7. In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed Accounts and records have been made and maintained.

9.

(a) Undisputed statutory dues including provident fund, investor education and

protection fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in some cases.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees''
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state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the Company, the dues outstanding of income-tax, salestax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are as follows:

NAME OF THE STATUTE Income Tax Act,1961 Income Tax Act , 1961 Finance Act ,1994

NATURE OF DUE

AMOUNT RS.

PERIOD TO WHICH THE AMT. 2007-08 2009-10 1999-2000

Income Tax Income Tax Service Tax On Consulting

13,641,256 6,15,628 32,358,885

FORUM WHERE THE DISPUTE IS PENDING Commissioner Of Income Tax Commissioner Of Income Tax CESTAT

10. The Company''s accumulated losses at the end of the financial year are less than fifty per cent of its net worth but it has incurred cash losses in the current and immediately preceding financial year.

11. Based on our audit procedures and as per the information and explanations given by management, the Company has defaulted in repayment of dues to Financial Institutions and Banks in respect of Letters of Credit/Buyers'' Credit/Bills Discounting, Term Loan an Interest Liabilities. The following are the details of the defaults:

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(Rs in Crore)

PARTICULARS

DELAY UPTO DAYS

DELAY 30 31-60 DAYS

73.73

DELAY ABOVE 60 DAYS

11.18

TOTAL AMOUNT

Letters credit/buyers credit/bills discounting Term loan Ineterest Liabilities

417.57

502.18

54.35 173.91

12.60 25.07

6.76

66.95 205.74

Approximately Rs 121.25 Crore in respect of Letters of Credit/Buyers'' Credit/Bill Discounting and Rs 38.59 Crore in respect of term loans were in arrears as of the Balance Sheet date. The company did not have any debentures outstanding during the year.

12. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. provisions of clause 4(xii) of the CARO are not applicable. Accordingly, the

13. In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund/society. Accordingly, the provisions of clause 4(xiii) of the CARO are not applicable.

14. In our opinion, the Company does not deal or trade in shares, securities, debentures and other investments. Accordingly, the provisionsofclause4(xiv) of the CARO are not applicable.

15. According to the information and explanations given to us, the Company has given guarantee for loans taken by others from banks or financial institutions, the terms and conditions whereof in our opinion are prima-facie not prejudicial to the interests of the Company.

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CORPORATE GOVERNANCE

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CORPORATE GOVERNANCE INTRODUCTION

This Code of Ethics applies to all employees of Suzlon Energy Limited and of all majority held subsidiaries worldwide. It also applies to the directors of the said companies Each Region (country) has a Regional Ethics Officer (REO) who reports to Global Ethics Officer (GEO). The REO investigates the concern either himself/herself or through an appointed committee. The Regional Ethics Committee (REC) comprising the Business Unit Head, Business Unit Chief Financial Officer, and the Business Unit Chief Legal Officer, will formulate the decision which the REO will communicate to the GEO.

DO CONSIDER COMPLIANCE AS A PERSONAL RESPONSIBILITY

It is the responsibility of each employee to read carefully and understand the Code, to comply with the Code and to avoid any activity or interest which might compromise the employee or the company. All employees must conduct themselves accordingly and seek to avoid even the appearance of improper behavior. When confronted with a questionable decision or act, it will be of no relief to pretend later that it was the company or somebody or Suzlon who took the questionable decision. It will be you and nobody else, and it is your actual responsibility and also a right not to get involved in any improper behavior

DO ASK QUESTIONS
In case you have questions or you are in doubt as to whether a specific conduct complies with the Code, you should discuss the same with your supervisor or your manager. Alternatively, you can submit your question to the Regional Ethics Officer at your location or Business Head, or to the Global Ethics Officer

CONFLICT OF INTEREST
All employees are obligated to act at all times solely in the best interests of Suzlon. A conflict of interest arises when you have a personal relationship or a financial or other interest that could interfere within this obligation, or when you use your position in the company for personal gain. A conflict of interest can also arise when a family member receives improper

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personal benefits as a result of your position or role in the company. Examples of actual or potential conflicts of interests include:

Besides your working relationship with Suzlon, you are working for any other company or have a position in any company (e.g. as a consultant or director) or you are providing free-lance services to anyone.

You or a member of your household or immediate family, have a financial or other interest in a person or company that competes with Suzlon.

A member of your household or immediate family competes with Suzlon or is employed by a person or company that competes with Suzlon.

A member of your household or immediate family is a supplier or customer of Suzlon, or an employee of a supplier or customers

You or members of your household or immediate family have an interest in supplier or customer of Suzlon.

A member of your direct family is an employee of Suzlon and you are in a position to influence employment decisions concerning this family member..

ACCURACY OF COMPANY BOOKS AND RECORDS

Suzlon employees are expected to be truthful and accurate in their accounting and time reporting practices. Financial professionals are expected to stay up-to-date with all financial reporting regulations related to their job functions, and to report financial statement items in a manner consistent with applicable laws and reporting standards. All Suzlon employees involved in financial reporting or communications are expected to produce disclosures that are full, fair, accurate, timely and understandable. Examples of non-compliant behavior or practices include:

In order to speed up revenue recognition, you arrange to advance ship goods, without an explicit request from the customer.

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You are requested to report certain data, or the conformity of a given activity or the achievement of certain quality or production levels. Because things have usually conformed in the past, you tick the boxes without double-checking the actual situation or data.

In order to be in line with your budget, you prepay future costs and charge it to the current accounting period, or the reverse: you defer recognizing an expense and push it forward to the next reporting period so as not to exceed the budget.

The Suzlon approach:

If you are responsible for recording transactions or events into Suzlon records, dont intentionally delay them, or intentionally record incorrect, incomplete or misleading information. Do provide timely, accurate and complete information to those colleagues who report the same.

GIFTS AND ENTERTAINMENT

You should neither accept nor offer gifts (including entertainment) from or to any internal or external party.

Examples of non-compliant behavior or practices include:

At Christmas, a consultant sends you an expensive exclusive watch to thank you for the good working relationship. You thank him and keep the watch. A supplier offers you a free trip in a holiday resort to thank you for the business received from Suzlon (even if he doesnt say so explicitly).

The Suzlon approach:

Except token gifts (e.g. one bottle of wine, a book, an agenda, a pen,), never give or accept gifts. In case it would be embarrassing or impolite to refuse, you may ask a special authorization from your Regional Ethics Officer. In such case, the gift will be accepted on behalf of the company and turned over for company use (through the Regional Ethics Officer).

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CORRUPTION AND BRIBERY

You will refrain from getting involved in any practice that constitutes or can be perceived to constitute an act of corruption or bribery. Corruption or bribery is defined as the receiving or the offering of an undue reward -financial, in kind or of any other nature- to any internal or external party, regardless of the actual motivation. Examples of non-compliant behavior or practices include:

A supplier gives you a lump sum, or any other consideration, in order to secure orders from Suzlon or he gives you a commission calculated on the basis of past order

GOVERNMENT RELATIONS
It is the Company's policy to comply fully with all applicable laws and regulations governing contact and dealings with government employees and public officials,and to adhere to high ethical, moral and legal standards of business conduct. This policy includes strict compliance with all central, local, state, federal, foreign and other applicable laws, rules and regulations. If you have any questions concerning government relations you should contact the Company's Legal Department. You must refrain from giving money or gifts to an official or an employee of a government entity if doing so could be reasonably construed as having any connection with the Companys business relationship. The respective laws in most countries prohibit such actions or payment and adherence to such laws are prerequisite before dealing with any official or employee of a government. Any proposed payment or gift to a foreign official, political party or candidate must have prior approval of by the Companys Legal Department, even if such payment is common in that country. In countries where local customs call for giving gifts to customers or others on special occasions, you may, with prior approval from management and Legal Department, present gifts that are lawful, appropriate and of nominal value, provided the action cannot be seen as seeking special favour.

LOBBYING
Employees, agents or contractors whose work requires lobbying communication with any member or employee of a legislative body or with any government official or employee in the formulation of legislation must have prior written approval of such activity from the Company's Chief Financial Officer. Activity covered by this policy includes meetings with
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legislators or members of their staffs or with senior executive branch officials. Preparation, research, and other background activities that are done in support of lobbying communication are also covered by this policy even if the communication ultimately is not made.

GOVERNMENT CONTRACTS
It is the Company's policy to comply fully with all applicable laws and regulations that apply to government contracting. It is also necessary to strictly adhere to all terms and conditions of any contract with central, local, state, federal, foreign or other applicable governments. The Company's Legal Department must review and approve all contracts with any government entity.

FREE AND FAIR COMPETITION/ANTITRUST

The Company is required to furnish promptly any request to support a boycott or information concerning a boycott. A foreign country or an entity associated with the country could make such a request in a bid invitation, purchase order or contract, letter of credit or orally in connection with a transaction or in a number of ways. If you hear of a boycott or receive a request to support a boycott or to provide information related to a boycott, you should contact your manager or the Legal Department of the Company.

INDUSTRIAL ESPIONAGE
It is the Company's policy to lawfully compete in the marketplace. This commitment to fairness includes respecting the rights of our competitors and abiding by all applicable laws in the course of competing. The purpose of this policy is to maintain the Company's reputation as a lawful competitor and to help ensure the integrity of the competitive marketplace. Company employees, agents and contractors may not steal or unlawfully use the information, material, products, intellectual property, or proprietary or confidential information of anyone including suppliers, customers, business partners or competitors.

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Horizontal analysis

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Balance Sheet of Suzlon Energy

in Rs. Cr Mar '12

in Rs. Cr Mar '11 355.47 355.47 20.43 0 6,418.58 0 6,794.48 4,395.74 2,281.59 6,677.33 13,471.81 1,439.52 576.35 863.17 38.15 7,845.07 1,014.95 2,283.90 129.64 3,428.49 4,994.03 301.42 8,723.94 0 3,606.83 391.69 3,998.52 4,725.42 0 13,471.81 3,526.50 38.11

Increase/Decrease rs.in.cr 0 0 -20.43 0 -1276.14 0 -1296.57 527.29 -788.4 -261.11 -1557.68 0 183.78 79.67 104.11 -22.28 970.55 450.99 1154.03 133.01 1738.03 456.52 -93.96 2100.59 0 3624.34 1086.31 4710.65 -2610.06 0 -1557.68 68.97 -7.18 %age 0 0 -100 0 -19.881968 0 -19.082697 11.995477 -34.55485 -3.9103953 -11.562515 0 12.766756 13.823198 12.061355 -58.401048 12.371464 44.434701 50.52892 102.59951 50.693746 9.1413147 -31.17245 24.078455 0 100.48547 277.33922 117.80984 -55.234455 0 -11.562515 1.9557635 -18.840199

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 1,623.30 656.02 967.28 15.87 8,815.62 1,465.94 3,437.93 262.65 5,166.52 5,450.55 207.46 10,824.53 0 7,231.17 1,478.00 8,709.17 2,115.36 0 11,914.13 3,595.47 30.93 355.47 355.47 0 0 5,142.44 0 5,497.91 4,923.03 1,493.19 6,416.22 11,914.13

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Balance Sheet of Suzlon Energy Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

in Rs. Cr Mar '11 355.47 20.43 0 6,418.58 0 6,794.48 4,395.74 2,281.59 6,677.33 13,471.81 1,439.52 576.35 863.17 38.15 7,845.07 1,014.95 2,283.90 129.64 3,428.49 4,994.03 301.42 8,723.94 0 3,606.83 391.69 3,998.52 4,725.42 0 13,471.81 3,526.50 38.11

in Rs. Cr Mar '10 311.35 15.72 0 5,277.24 0 5,604.31 3,891.16 3,710.06 7,601.22 13,205.53 1,355.74 438.58 917.16 10.38 7,592.60 797.8 2,986.81 469.32 4,253.93 4,187.79 129.9 8,571.62 0 3,641.87 244.36 3,886.23 4,685.39 0 13,205.53 2,572.67 35.9

Increase/Decrease rs.in.cr 44.12 4.71 0 1141.34 0 1190.17 504.58 1428.47 -923.89 266.28 0 83.78 137.77 -53.99 27.77 252.47 217.15 -702.91 -339.68 -825.44 806.24 171.52 152.32 0 -35.04 147.33 112.29 40.03 0 266.28 953.83 2.21 0 %age 14.170548 29.961832 0 21.627593 0 21.236691 12.967341 -38.502612 -12.154496 2.016428 0 6.179651 31.412741 -5.8866501 267.53372 3.3252114 27.218601 -23.533804 -72.377056 -19.404174 19.252159 132.04003 1.777027 0 -0.9621431 60.292192 2.8894327 0.8543579 0 2.016428 37.07549 6.1559889 0

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Balance Sheet of Suzlon Energy Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

in Rs. Cr Mar '10 311.35 311.35 15.72 0 5,277.24 0 5,604.31 3,891.16 3,710.06 7,601.22 13,205.53 1,355.74 438.58 917.16 10.38 7,592.60 797.8 2,986.81 469.32 4,253.93 4,187.79 129.9 8,571.62 0 3,641.87 244.36 3,886.23 4,685.39 0 13,205.53 2,572.67 35.9

in Rs. Cr Mar '09 299.66 299.66 103.25 0 6,177.41 0 6,580.32 4,006.23 3,323.25 7,329.48 13,909.80 915.83 364.33 551.5 286.97 7,127.80 1,383.62 4,745.14 70.95 6,199.71 3,273.41 141.45 9,614.57 0 3,301.77 369.27 3,671.04 5,943.53 0 13,909.80 7,220.74 43.23

Increase/Decrease rs.in.cr 11.69 11.69 -87.53 0 -900.17 0 -976.01 -115.07 386.81 271.74 -704.27 0 439.91 74.25 365.66 -276.59 464.8 -585.82 -1758.33 398.37 -1945.78 914.38 -11.55 -1042.95 0 340.1 -124.91 215.19 -1258.14 0 -704.27 -4648.07 -7.33 %age 3.9010879 3.9010879 -84.774818 0 -14.571965 0 -14.832257 -2.8722764 11.63951 3.7074936 -5.063121 0 48.034024 20.379875 66.302811 -96.382897 6.5209462 -42.33966 -37.055387 561.47992 -31.385016 27.933562 -8.1654295 -10.847599 0 10.300536 -33.826198 5.8618266 -21.168228 0 -5.063121 -64.371103 -16.955818

30

Horizontal Analyses of Suzlon Energy ltd.

Balance sheet 1. Total Assets/Liabillities up by in March 2009 to 2010 -5.06% and in March 2010 to 2011 up to 37.07% and 2011 to 2012 down to -11.56%. 2. Net worth up by in 2010-11 is 12.96% and Decrease by -19.08% and Loan and Advancement growth 132.04% Strong Financial position in 2010 to 2011. 3. Investment grow by 27.21% in 2010 t0 2011 and decrease 6.52% in year 2009-10 4. Inventory management very efficient.Growth of inventory is 44.43% 5. Current Liabilities growth by 100% in year 2011-12.

31

suzlon energy ltd.(P&L)

in Rs. Cr Mar '12 6,871.99 0.78 6,871.21 -314.14 96.23 6,653.30 4,594.15 8.85 337.02 108.2 739.44 317.15 0 6,104.81 548.49 864.58 -316.09 182.68 0 -498.77 -6.61 -505.38 0 -505.38 1,510.66 0 0 0

in Rs. Cr Mar '11 4,358.66 1.11 4,357.55 259.01 223.69 4,840.25 3,000.88 5.05 215.23 308.99 366.38 415.92 0 4,312.45 527.8 631.4 -103.6 156.89 0 -260.49 19.19 -241.3 -55.64 -185.66 1,311.57 0 0 0

Increase/Decrease rs.in.cr %age 2,513.33 -0.33 2,513.66 -573.15 -127.46 1,813.05 1,593.27 3.80 121.79 -200.79 373.06 -98.77 0.00 1,792.36 20.69 233.18 -212.49 25.79 0.00 -238.28 -25.80 -264.08 55.64 -319.72 199.09 0.00 0.00 0.00 57.662906 -29.72973 57.685167 -221.28489 -56.980643 37.457776 53.093426 75.247525 56.585978 -64.982686 101.82324 -23.747355 0 41.562453 3.9200455 36.93063 205.10618 16.438269 0 91.473761 -134.44502 109.44053 -100 172.20726 15.179518 0 0 0

INCOME Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses PBDIT
Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

17,773.66 -2.84 0 30.93

17,773.66 -1.04 0 38.11

0.00 -1.80 0.00 -7.18

0 173.07692 0 -18.840199

32

suzlon energy ltd.(P&L)

in Rs. Cr Mar '11 4,358.66 1.11 4,357.55 259.01 223.69 4,840.25 3,000.88 5.05 215.23 308.99 366.38 415.92 0 4,312.45 527.8 631.4 -103.6 156.89 0 -260.49 19.19 -241.3 -55.64 -185.66 1,311.57 0 0 0

in Rs. Cr Mar '10 3,505.72 1.38 3,504.34 -182.59 -254.97 3,066.78 2,284.16 3.93 181.01 235.23 371.27 369.25 0 3,444.85 -378.07 734.35 -1,112.42 126.27 0 -1,238.69 0 -1,238.69 175.4 -1,414.09 1,160.69 0 0 0

Increase/Decrease rs.in.cr %age 852.94 24.32995 -0.27 -19.5652 853.21 24.34724 441.6 -241.853 478.66 -187.732 1773.47 57.82841 716.72 31.37784 1.12 28.49873 34.22 18.90503 73.76 31.35654 -4.89 -1.3171 46.67 12.63913 0 0 867.60 25.18542 905.87 -239.604 -102.95 -14.0192 1008.82 -90.687 30.62 24.24962 0 0 978.20 -78.9705 19.19 0 997.39 -80.5197 -231.04 -131.722 1,228.43 -86.8707 150.88 12.99916 0.00 0 0 0 0.00 0

INCOME Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses PBDIT
Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

17,773.66 -1.04 0 38.11

15,567.32 -9.08 0 35.9

2,206.34 14.1729 8.04 -88.5463 0.00 0 2.21 6.155989

33

suzlon energy ltd.

in Rs. Cr Mar '10

in Rs. Cr Mar '09

Increase/Decrease rs.in.cr %age

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 2,284.16 3.93 181.01 235.23 371.27 369.25 0 3,444.85 -378.07 734.35 -1,112.42 126.27 0 -1,238.69 0 -1,238.69 175.4 -1,414.09 1,160.69 0 0 0 4,651.06 4.46 199.07 286.79 694.13 620.08 0 6,455.59 -4.45 436.35 -440.8 99.16 0 -539.96 0.92 -539.04 -70.69 -469.27 1,804.53 0 0 0 -2,366.90 -0.53 -18.06 -51.56 -322.86 -250.83 0.00 -3,010.74 -373.62 298.00 -671.62 27.11 0.00 -698.73 -0.92 -699.65 246.09 -944.82 -643.84 0.00 0.00 0.00 -50.889475 -11.883408 -9.0721857 -17.978312 -46.512901 -40.451232 0 -46.63772 8395.9551 68.293801 152.36388 27.339653 0 129.40403 -100 129.79556 -348.12562 201.33825 -35.679096 0 0 0 3,505.72 1.38 3,504.34 -182.59 -254.97 3,066.78 7,254.47 2.53 7,251.94 -869.17 68.37 6,451.14 -3,748.75 -1.15 -3,747.60 686.58 -323.34 -3,384.36 -51.675036 -45.454545 -51.677206 -78.992602 -472.92672 -52.461425

15,567.32 -9.08 0 35.9

14,982.95 -3.13 0 43.23

584.37 -5.95 0.00 -7.33

3.9002333 190.09585 0 -16.955818

34

Horizontal Analyses of Suzlon Energy ltd.

Profit and Loss Account 1. Net Sales Growth by 57.68% and down by -51.67%. 2. Increase in Expenses like Material cost is increased by 53%, Finance charges and Expenses is increased by 68.29%,other Expenses is increase by 23.64%. thus we can says that Companys expenses and cost increase. 3. Companys total Expenses is 41.56% . 4. Depriciation is increase by 27.33% compare to net sales. 5. Companys Other Income is Decrease at 221.28% in the year of 2011-11. 6. Companys PBT growth by 129.40% ,pbt is very poor because of increasing of other expenses.

35

Common-size analysis

36

Balance sheet of Suzlon Energy Year Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

.in cr

common size %age

.in cr

common size %age

.in cr

common size %age

Mar '12

Mar '11

Mar '10

355.47 355.47 0 0 5,142.44 0 5,497.91 4,923.03 1,493.19 6,416.22 11,914.13

2.9836001 2.9836001 0 0 43.162531 0 46.146131 41.320936 12.532934 53.853869 100

355.47 355.47 20.43 0 6,418.58 0 6,794.48 4,395.74 2,281.59 6,677.33 13,471.81

2.6386209 2.6386209 0.15165 0 47.644526

311.35 311.35 15.72 0 5,277.24 0

2.3577244 2.3577244 0.119041 0 39.962349 0 42.439115 29.46614 29.46614 57.560885 100

50.434797 32.629172 16.936032 49.565203 100

5,604.31 3,891.16 3,710.06 7,601.22 13,205.53

1,623.30 656.02 967.28 15.87 8,815.62 1,465.94 3,437.93 262.65 5,166.52 5,450.55 207.46 10,824.53 0 7,231.17 1,478.00 8,709.17 2,115.36 0 11,914.13 3,595.47 30.93

13.624998 0.1426877 8.1187632 0.1332032 60.694067 12.304214 28.855905 2.2045252 43.364643 45.748619 207.46 90.854557 0 60.694067 B30*C34/B34 73.099505 17.755052 0 100 30.1782 0.2596077

1,439.52 576.35 863.17 38.15 7,845.07 1,014.95 2,283.90 129.64 3,428.49 4,994.03 301.42 8,723.94 0 3,606.83 391.69 3,998.52 4,725.42 0 13,471.81 3,526.50 38.11

10.900888 4.2781928 6.4072311 0.2831839 0.1410352 7.53388 16.953179 0.9623057 25.449364 37.070223 2.2374128 64.757 0 26.773166 2.9074787 29.680644 35.076356

1,355.74 438.58 917.16 10.38 7,592.60 797.8 2,986.81 469.32 4,253.93 4,187.79 129.9 8,571.62 0 3,641.87 244.36 3,886.23 4,685.39 0

10.266457 3.3211844 6.9452722 0.0786034 57.49561 6.0414084 22.617873 3.5539656 32.213247 31.712396 0.9836788 64.909322 0 27.578371 1.8504369 29.428807 35.480515 0 100 19.481763 0.2718558

100 26.176883 0.282887

13,205.53 2,572.67 35.9

37

Common-Sized Analysis of Suzlon Energy ltd

Balance sheet 1. Net sales of Suzlon Energy ltd in year 2010-11 is 42.43% during the year of 201112,size of the company is Different Substaintualy in the Same year. 2. Loan and Advancement is 31.71% during the year of 2011 and Inventory is 6.01% this is good for production department. 3. Total Share Capital is increased by by 2.31% , this means it is good situation for Company . 4. Companys Current Liabilities is 27.57% Increased from 2010-11 to 2012. It means Companys working capital is in Situation. 5. Investment of companys Investment is 57.49% compare to previous year. It is increased that means position is good.

38

Profit & Loss account of Suzlon Energy year Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

.in cr

common size %age

.in cr

common size %age

.in cr

common size %age

Mar '12 6,871.99 0.78 6,871.21 -314.14 96.23 6,653.30 4,594.15 8.85 337.02 108.2 739.44 317.15 0 6,104.81 548.49 864.58 -316.09 182.68 0 -498.77 -6.61 -505.38 0 -505.38 1,510.66 0 0 0 100.011352 0.01135171 100 -4.5718294 1.40048114 96.8286517 66.8608586 0.12879828 4.90481298 1.57468626 10.7614234 4.61563538 0 88.8462149 7.98243686 12.5826456 -4.6002087 2.65862927 0 -7.258838 -0.0961985 -7.3550364 0 -7.3550364 21.9853563 0 0 0 0 258.668561 -0.0413319 0 0.45013906

Mar '11 4,358.66 1.11 4,357.55 259.01 223.69 4,840.25 3,000.88 5.05 215.23 308.99 366.38 415.92 0 4,312.45 527.8 631.4 -103.6 156.89 0 -260.49 19.19 -241.3 -55.64 -185.66 1,311.57 0 0 0 100.025473 100 5.94393639 5.13338918 111.077326 68.8662207 0.11589081 4.93924338 7.09091118 8.40793565 9.54481303 0 98.9650147 12.1123108 14.4897936 -2.3774828 3.60041767 0 -5.9779004 0.44038508 -5.5375153 -1.2768643 -4.2606511 30.098794 0 0 0 0 407.881952 -0.0238666 0 0.87457402

Mar '10 3,505.72 1.38 3,504.34 -182.59 -254.97 3,066.78 2,284.16 3.93 181.01 235.23 371.27 369.25 0 3,444.85 -378.07 734.35 -1,112.42 126.27 0 -1,238.69 0 -1,238.69 175.4 -1,414.09 1,160.69 0 0 0 100.03938 100 -5.2103963 -7.2758351 87.5137686 0 65.18089 0.11214665 5.1653093 6.7125336 10.594577 10.5369342 0 98.3023907 -10.788622 20.9554438 -31.744066 3.60324626 0 -35.347312 0 -35.347312 5.0052221 -40.352534 33.1215008 0 0 0 0 444.229727 -0.2591073 0 1.02444398

17,773.66 -2.84 0 30.93

17,773.66 -1.04 0 38.11

15,567.32 -9.08 0 35.9

39

Profit and Loss account

1. Net Sales is 100% of Suzlon Energy Ltd in year of 2010 increase by 3504.34% and in the year of 2011 is increase by 4357.55% and in the year of 2012 increase by 6871.21%. 2. The Suzlon Energy Ltd other income is -5.21. in the year of 2010 other income was 182.59 and year of 2011 other Income was increase 259.01 and year of 2012 other Income Was Decrease by -314.314 . 3. In the year of 2010 interest % was 20.95, and in the year of 2011 Interest Decrease by 14.48% and at the year of 2012 Interest rate is 12.58%. 4. By looking of Other Manufacturing Expenses is Decrease by 1.57% comparing the year of 2011 it was 7.09%. 5. Interst rate and Other Manufacturing Expenses is decreasing and increasing it is very different.

40

Multi-step analysis

41

Profit & Loss account of Suzlon Energy

------------------- in Rs. Cr. ------------------Mar '12 12 mths Mar '11 12 mths 4,358.66 1.11 4,357.55 259.01 223.69 4,840.25 3,000.88 5.05 215.23 308.99 366.38 415.92 0 4,312.45 527.8 631.4 -103.6 156.89 0 -260.49 19.19 -241.3 -55.64 -185.66 1,311.57 0 0 0 Mar '10 12 mths 3,505.72 1.38 3,504.34 -182.59 -254.97 3,066.78 2,284.16 3.93 181.01 235.23 371.27 369.25 0 3,444.85 -378.07 734.35 -1,112.42 126.27 0 -1,238.69 0 -1,238.69 175.4 -1,414.09 1,160.69 0 0 0

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

6,871.99 0.78 6,871.21 -314.14 96.23 6,653.30 4,594.15 8.85 337.02 108.2 739.44 317.15 0 6,104.81 548.49 864.58 -316.09 182.68 0 -498.77 -6.61 -505.38 0 -505.38 1,510.66 0 0 0

17,773.66 -2.84 0 30.93

17,773.66 -1.04 0 38.11

15,567.32 -9.08 0 35.9

42

Ratio anaylsis

43

1) LIQUIDITY RATIOS:

1.1 CURRENT RATIO = Current assets/current liabilities

Current Ratio Mar '12 Total Current Assets Total CA, Loans & Advances
5,166.52 10,824.53

Mar '11
3,428.49 8,723.94

Mar '10
4,253.93 8,571.62

Mar '09
6,199.71 9,614.57

Mar '08
4,993.79 7,048.40

0.47

0.39

0.49

0.64

0.70

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

44

INTERPRETATION
If the C.R. is less than 2: 1, it indicates lack of liquidity and shortage of working capital But a much higher ratio, even though it is beneficial to the short-term creditors, is not necessarily good for the company. A much higher ratio than 2:1 may indicate the poor investment policies of the management. So liquidity of Bank is satisfactory. C.R of the company is 64% in 2009 it decrease to 49% in 2010 and 39%. It further increases by 47% in 2012.

45

1.2 QUICK RATIO = Quick Assets/Quick Liabilities

Quick Ratio Mar '12 Quick Assets Quick Liabilities

5,166.52 8,709.17

Mar '11
3,428.49 3,998.52

Mar '10
4,253.93 3,886.23

Mar '09
6,199.71 3,671.04

Mar '08
4,993.79 2,582.33

0.59

0.85

1.09

1.68

1.93

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

46

INTERPRETATION
It Shows the liquidly position of a firm. Higher the ratio higher the liquidity position. The Quick ratio of the company in 2009 is 100.68 % it decreased to 100.09% and 85% in 2010-11. Currently it is 59% compare to past year which is good for the company.

47

2.0 SOLVENCY RATIO

2.1 DEBT EQUITY RATIO = Borrowers fund/Owners fund

Debt Equity Ratio Mar '12 Borrower's Fund Owner's Fund

6,416.22 5,497.91

Mar '11
6,677.33 6,794.48

Mar '10
7,601.22 5,604.31

Mar '09
7,329.48 6,580.32

Mar '08
3,084.74 6,947.66

1.16

0.98

1.35

1.11

0.44

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

48

INTERPRETATION
This ratio reflects the relative claims of creditors and shareholders against the assets of the firm. Alternatively this ratio indicates the relative proportions of debts and equity in financing the assets of a firm. The debt equity ratio of the company in 2009-10 is 100.11% it increased 35 % 2010-11 and decreased 98% in 2011,current is 100.16% it is good for company.

49

2.2 INTEREST COVERAGE/DEBT SERVICE RATIO = Net profit

(before interest and taxes)/ Fixed interest Charge

Interest Coverage Mar '12 PBDIT Interest

548.49 864.58

Mar '11
527.80 631.40

Mar '10
-378.07 734.35

Mar '09
-4.45 436.35

Mar '08
1,584.14 142.14

0.63

0.83

-0.51

-0.010

11.14

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

50

INTERPRETATION

This ratio uses the concept of net profits before taxes because tax is calculated after paying interest on long term loan. This ratio as the name suggests, show how many times the interest changes are covered by EBIT out of which they will be paid. The coverage ratio of the company is -1% in 2009; it is decrease to -51% and increased 83 % in 2011. It is 63% in 2012.

51

3.0 PROFITABILITY RATIO

3.1 GROSS PROFIT RATIO= PBDT/Net sales*100

Gross Profit Margin Ratio

Mar '12 PBDT Net Sales

-316.09 6,871.21

Mar '11
-103.60 4,357.55

Mar '10
-1,112.42 3,504.34

Mar '09
-440.80 7,251.94

Mar '08
1,442.00 6,942.24

-4.60

-2.37

-31.74

-6.07

20.77

350 300 250 200

150
100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

52

INTERPRETATION
The gross profit ratio can also be used in determining the extent of loss caused by theft, spoilage, damage and so on in the case of those firms which follow the policy of fixed gross profit margin in pricing their product. The gross profit of the company is -6.07 % in 2009 and it decreased -31.74 in 2010.-2.37% in 2011and in 2012 is for -4.60%This is good for the company.

53

3.2 NET PROFIT RATIO = Net Profit/Net Sales*100

Net Profit Ratio Mar '12 Net Profit Net Sales

-505.38 6,871.21

Mar '11
-185.66 4,357.55

Mar '10
-1,414.09 3,504.34

Mar '09
-469.27 7,251.94

Mar '08
1,416.88 6,942.24

-7.35

-4.26

-40.35

-6.46

20.40

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

54

INTERPRETATION
The net profit ratio is indicative of managements ability to operate the business with sufficient success not only to recover from revenue of the period the cost of merchandise or services. The higher the ratio, the better will be the profitability. In order to have a better idea of profitability, the gross profit ratio and net profit ratio may be simultaneously considered. If the gross profitability increases over the five years but net profit is declining, it indicates that administrative expenses are slowly rising. Net profit of the company in 2009 was 6.46% and it is -40.35% in 2010. In current year and 2011 it was decreased.

55

3.2 EARNING PER SHARE (EPS):

= Net profit after interest, tax & preference dividend /No. of equity shares*100

Earnings Per Share Mar '12 Net Profit No. of Equity Shares
-505.38 17,773.66

Mar '11
-185.66 17,773.66

Mar '10
-1,414.09 15,567.32

Mar '09
-469.27 14,982.95

Mar '08
1,416.88 14,969.34

-2.84

-1.04

-9.08

-3.09

-9.46

350 300 250

200
150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

56

INTERPRETATION
This ratio shows the profitability of the firm from the owners point of view. By comparing EPS of the current year with past years the path of the trend of profitability can be ascertained.

It is essential that EPS of the company should be compared with the other companies and also average of the company before giving final opinion. The limitation of EPS is that it does not show how much dividend is actually paid to shareholders and how much profit is retained in business. The EPS of the company is -3.09% in 2009 .it decrease to -9.08% in 2010, -1.04% in 2011 and currently it is -2.84%.

57

4.0 RETURN RATIOS

4.1 RETURN ON CAPITAL EMPLOYED = Gross Profit/Capital Employed*100

Return on Capital Employed Mar '12 Gross Profit Share Capital + Reserve & Surplus Reserves Capital Employed
355.47 5,142.44 355.47 6,418.58 311.35 5,277.24 299.66 6,177.41 299.39 6,648.27 548.49

Mar '11
527.80

Mar '10
-378.07

Mar '09
-4.45

Mar '08
1,584.14

5497.91 6774.05 5588.59 6477.07 6947.66 9.9 7.79 -6.76 -0.07 22.86

350 300

250
200 150 100 50

0
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

58

INTERPRETATION
Return on investment indicates the profitability of business and is very much in use among financial analysis. The ratio is an indicator of the measure of the success of a business from the owners point of view. The ultimate interest of any business is the rate of return on invested capital. It may be measured by the ratio of income to equality capital. ROI of company is -0.07% in 2009-10 it increase to -6.76% in 2010-11 and it is 9.9% in 2012. It is beneficial for company.

59

4.2 RETURN ON TOTAL ASSETS = Net Sales/Total Assets

Return On Total Assets Mar '12 Net Profit Total Assets
-505.38 11,914.13

Mar '11
-185.66 13,471.81

Mar '10
-1,414.09 13,205.53

Mar '09
-469.27 13,909.80

Mar '08
1,416.88 10,032.40

- 0.024

-0.01

-0.10

-0.03

0.14

350 300 250 200 150 100

50
0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

INTERPRETATION
In 2009 ROTA -0.03%, and it increased by -0.10% in 2010. And Present year it was -0.024%.

60

5.0 TURNOVER RATIO:

5.1 FIXED ASSETS TURNOVER RATIO = Net Sales/Total Fixed Assets

Fixed Assets Turnover Ratio Mar '12 Net Sales Net Block Capital Work in Progress Total Fixed Assets
6,871.21 967.28 15.87

Mar '11
4,357.55 863.17 38.15

Mar '10
3,504.34 917.16 10.38

Mar '09
7,251.94 551.50 286.97

Mar '08
6,942.24 512.22 134.63

983.15 6.98

901.32 4.83

927.54 3.77

338.47 21.42

646.85 10.73

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

61

INTERPRETATION
To ascertain efficiency and profitability of the business. The higher the turnover ratio, the more efficiency is the management and utilization of the assets while low turnover ratios are indicative of underutilization of available resources. The fixed asset turnover ratio of the company is 4.25% in 2009 and it drecreased By 3.77% in 2010 and Present yearit was near by 6.98%.

62

5.2 NETWORTH TURNOVER RATIO = Net Sales/Networth

Networth Turnover Ratio Mar '12 Net Sales Networth

6,871.21 5,497.91

Mar '11
4,357.55 6,794.48

Mar '10
3,504.34 5,604.31

Mar '09
7,251.94 6,580.32

Mar '08
6,942.24 6,947.66

1.24

0.64

0.62

1.10

0.71

350 300 250 200 150 100 50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

63

INTERPRETATION
It is the ratio of net profit to share holder's investment. It is the relationship between net profit (after interest and tax) and share holder's/proprietor's fund. This ratio establishes the profitability from the share holders' point of view. The ratio is generally calculated in percentage. Ratio used for measuring the overall efficiency of a firm. The networth turnover ratio of the company was 21.42% in 2009, it decrease slightly by 3.77% in 2010 2012.and4.83% in 2011. and constantly increcreased by 6.98% in

64

6.0 AVERAGE COLLECTION PERIOD RATIO

AVERAGE COLLECTION PERIOD RATIO = (Trade Debtors No. of Working Days) / Net Credit Sales

Average collection period ratio Mar '12 Debtors Net Sales

3,437.93 6,871.21

Mar '11
2,283.90 4,357.55

Mar '10
2,986.81 3,504.34

Mar '09
4,745.14 7,251.94

Mar '08
3,306.59 6,942.24

182.62

191.30

311.09

238.82

173.84

350 300 250 200 150

100
50 0 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

65

INTERPRETATION

This ratio measures the quality of debtors. A short collection period implies prompt payment by debtors. It reduces the chances of bad debts. Similarly, a longer collection period implies too liberal and inefficient credit collection performance. It is difficult to provide a standard collection period of debtors. Average collection period allowed to debtor was 298 days in 2009 it was increcreased upto 311 days and constantly decreasedsed for two years 2011-12 .

66

Bibliography

67

Bibliography:-

website
www.maonycontrol.com www.autherstrem.com www.suzlonenergy.com

Book
Ch:18 Financial Statement Anaylysis And The Tool Kit Of The Analyst:1 Book name:-Financial Accounting For Management(Edition 4) Author name:-Ambrish Gupta

68

Balance Sheet

69

Balance Sheet of Suzlon Energy

Mar '12 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 355.47 355.47 0.00 0.00 5,142.44 0.00 5,497.91 4,923.03 1,493.19 6,416.22 11,914.13 Mar '12 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 1,623.30 656.02 967.28 15.87 8,815.62 1,465.94 3,437.93 262.65 5,166.52 5,450.55 207.46 10,824.53 0.00 7,231.17 1,478.00 8,709.17 2,115.36 0.00 11,914.13 3,595.47 30.93

------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths

355.47 355.47 20.43 0.00 6,418.58 0.00 6,794.48 4,395.74 2,281.59 6,677.33 13,471.81 Mar '11 12 mths

311.35 311.35 15.72 0.00 5,277.24 0.00 5,604.31 3,891.16 3,710.06 7,601.22 13,205.53 Mar '10 12 mths

299.66 299.66 103.25 0.00 6,177.41 0.00 6,580.32 4,006.23 3,323.25 7,329.48 13,909.80 Mar '09 12 mths

299.39 299.39 0.00 0.00 6,648.27 0.00 6,947.66 672.26 2,412.48 3,084.74 10,032.40 Mar '08 12 mths

1,439.52 576.35 863.17 38.15 7,845.07 1,014.95 2,283.90 129.64 3,428.49 4,994.03 301.42 8,723.94 0.00 3,606.83 391.69 3,998.52 4,725.42 0.00 13,471.81 3,526.50 38.11

1,355.74 438.58 917.16 10.38 7,592.60 797.80 2,986.81 469.32 4,253.93 4,187.79 129.90 8,571.62 0.00 3,641.87 244.36 3,886.23 4,685.39 0.00 13,205.53 2,572.67 35.90

915.83 364.33 551.50 286.97 7,127.80 1,383.62 4,745.14 70.95 6,199.71 3,273.41 141.45 9,614.57 0.00 3,301.77 369.27 3,671.04 5,943.53 0.00 13,909.80 7,220.74 43.23

779.20 266.98 512.22 134.63 4,919.48 1,483.23 3,306.59 203.97 4,993.79 1,383.08 671.53 7,048.40 0.00 1,946.67 635.66 2,582.33 4,466.07 0.00 10,032.40 7,584.65 46.41

70

Profit & Loss A/C.

71

Profit & Loss account of Suzlon Energy

Mar '12 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 4,594.15 8.85 337.02 108.20 739.44 317.15 0.00 6,104.81 Mar '12 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 17,773.66 -2.84 0.00 30.93 862.63 548.49 864.58 -316.09 182.68 0.00 -498.77 -6.61 -505.38 0.00 -505.38 1,510.66 0.00 0.00 0.00 6,871.99 0.78 6,871.21 -314.14 96.23 6,653.30

------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths

4,358.66 1.11 4,357.55 259.01 223.69 4,840.25 3,000.88 5.05 215.23 308.99 366.38 415.92 0.00 4,312.45 Mar '11 12 mths 268.79 527.80 631.40 -103.60 156.89 0.00 -260.49 19.19 -241.30 -55.64 -185.66 1,311.57 0.00 0.00 0.00 17,773.66 -1.04 0.00 38.11

3,505.72 1.38 3,504.34 -182.59 -254.97 3,066.78 2,284.16 3.93 181.01 235.23 371.27 369.25 0.00 3,444.85 Mar '10 12 mths -195.48 -378.07 734.35 -1,112.42 126.27 0.00 -1,238.69 0.00 -1,238.69 175.40 -1,414.09 1,160.69 0.00 0.00 0.00 15,567.32 -9.08 0.00 35.90

7,254.47 2.53 7,251.94 -869.17 68.37 6,451.14 4,651.06 4.46 199.07 286.79 694.13 620.08 0.00 6,455.59 Mar '09 12 mths 864.72 -4.45 436.35 -440.80 99.16 0.00 -539.96 0.92 -539.04 -70.69 -469.27 1,804.53 0.00 0.00 0.00 14,982.95 -3.13 0.00 43.23

6,945.13 2.89 6,942.24 -18.97 154.14 7,077.41 4,429.10 4.48 139.34 382.20 516.40 21.75 0.00 5,493.27 Mar '08 12 mths 1,603.11 1,584.14 142.14 1,442.00 86.21 0.00 1,355.79 -0.13 1,355.66 89.95 1,416.88 1,064.17 0.00 149.69 25.44 14,969.34 9.47 50.00 46.41

72

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