ALSTOM

Registered Office

The International, 5th floor,

16, Marine Lines Cross Road No.1,

Off Maharshi Karve Road,

Church gate, Mumbai – 400 020

Tele: +91(22) 22000487/490/528

Fax: +91(22) 22000324

Website: www.in.alstom.com

Email:sekhar.bhattacharya@power.alstom.com

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 INDEX

Chapter Detailed Index Pg.no.

1. Company Profile
1.1 Name of the Company
1.2 Registered address of the company
1.3 Brief introduction of the activities of the business
1.4 Status in the market
1.5 Special Achievements
1.6 Financial Highlight
1.7 Meaning of analysis and objective of study

2. Results of operations
2.1 Profit of 3 years GP,NP,EBIT,EBT,EAT
2.2 Meaning and Importance of cash flow statement.
2.3 Cash flow statement of the company Concerned
2.4 Conclusion

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3. Ratio analysis

3.1 MEANING AND IMPORTANCE OF RATIO ANALYSIS

AND CLASSIFICATON

3.2 PROFITABILITY RATIO

3.2.1 Gross profit ratio

3.2.2 Net profit ratio

3.2.3 Expense ratio

3.2.4 Operating ratio

3.2.5 Return on investment/ Capital employed

3.2.6 Return on share holders fund

3.2.7 Return on equity share capital

3.2.8 Return on equity share holders fund

3.2.9 Earnings per share

3.2.10 Dividend per share

3.2.11 Price earnings ratio

3.2.12 Dividend yield ratio

3.3 Activity/ turnover ratios

3.3.1 Overall turnover ratio

3.3.2 Fixed asset turnover ration

3.3.3 Debtors ratio

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3.3.4 Debtor turnover ratio

3.3.5 Creditors ratio

3.3.6 Creditor turnover ratio

3.3.7 Stock turnover ratio

3.3.8 Working capital turnover

3.3.9 Book value per share

3.4 LIQUIDITY RATIO

3.4.1 Current ratio

3.4.2 Liquid ratio

3.4.3 Quick / Acid test ratio

3.5 LEVERAGE RATIO

3.5.1 Proprietary ratio

3.5.2 Debt equity ratio

3.5.3 Capital gearing ratio

3.5.4 Long term fund to fixed asset

3.6 COVERAGE RATIO

3.6.1 Interest coverage ratio

3.6.2 Debt coverage ratio

4. Accounting policies and notes

5. Director’s report

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6. Auditors report

7. Common sized statement

8. Conclusion & findings

1 COMPANY PROFILE

1.1 Name of the company –ALSTOM

1.2 Registered Office
The International, 5th floor,
16, Marine Lines Cross Road No.1,
Off Maharshi Karve Road,
Church gate, Mumbai – 400 020
Tele: +91(22) 22000487/490/528
Fax: +91(22) 22000324
Website: www.in.alstom.com
Email:sekhar.bhattacharya@power.alstom.com

1.3

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 1.4 Status in the market

1.6 Financial highlight

Profit before tax-2,484,266

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 Profit after tax-1,674,757

Equity per share-24.99

2. Result of Operations

2.1 Profit of 3 years GP, NP, EBIT, EBT, EAT (Rupees thousands)

March 31 2010 March 31 2009 March 31 2008

Sales 20,427,251 22,902,790 15,470,701

Less: Material cost And Production

Cost 12,852,717 16,008,308 11,034,600

Gross profit

Add: Other Income 405,380 427,506 397,720

Less: Personnel Expenses 2,700,296 2,381,842 1,798,330

Other Expenses 2,363,520 2,540,542 1,663,806

Depreciation 417,126 330,918 233,688

Earnings Before Interest & Tax (EBIT)

Less: Interest 1,245 1,014 1,352

Earnings Before Tax

Less: Provision for the Tax (809,509) (608,437) (733,087)

Earnings After Tax

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 Less: Exceptional Item - 2,067,672 1,133,645

Reversal of the Provision of earlier - - 54,375

Year

Net Profit 1674757 2067672

2.2 Meaning and Importance of cash flow Statement.

Meaning

A statement showing inflow of cash and outflow of cash during the

last year and as a result the balance of cash at the end of the year, is known as
“Cash Flow Statement”.

Importance

1. Efficient Cash Management:

If the finance manager has a clear idea of cash receipts and payment,
cash resources can be efficiently manage.

2. Use full for Internet Financial Management:

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 The management can plan out payment of dividend, repayment of long
term loans, purchase of machines or equipments etc.

3. Information about Cash Receipts and Payment:

Such a statement will give information about the trend of cash

receipts and payments.

4. Useful for Control:

The historical cash flow statement prepared for last year is useful for
comparing the figures of cash budgets and point of differences may be
located.

5. Ease in Obtaining Funds:

By comparing the figure of cash flow statement and cash budgets, the
planning and control becomes more effective.

2.3 Cash Flow Statement of the company concerned.

Consolidated Cash flow statement for the year ended March 31, 2010

(A) Cash flows from operating Activity March 31, 2010 March 31, 2009

Profit before Tax and Exceptional item 2,484,266 2,119,824

Adjustments for

Depreciation 417,126 330,953

Provision for doubtful debt and Advances (52,210) 12,222

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 Gain/(loss) on foreign currency and liability (net) (25,033) (148,680)

Loss on sale of fixed Assets (2,550) (27,626)

Interest Income

Interest Expenses

Operating Profit Before working capital Changes

Adjustments for changes in Working capital

(Increase)/Decrease in Sundry debtors

(Increase)/Decrease in Inventories

(Increase)/Decrease in Other current Assets

(Increase)/Decrease in Loan and Advances

Increase/(Decrease) in Current Liability&

Provision

Cash from Operating Activities

Income Tax including FBT

3. Ratio analysis

3.1 Meaning and Importance of ratio Analysis and Classification.

Meaning

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 If relationship between various related items in these financial statement
are established , they can provide usefull clue to gauge accurately the financial
health and ability of business to make profit . This relationship between two
related items of financial statement is known as RATIO.

Importance

1. Profitability

2. Liquidity

3. Efficiency

4. Inter-firm comparison

5. Indicate Trend

6. Useful for budgetary control

7. Useful for decision-making

Classification

(A) Traditional classification

(B) Functional classification

(A) Traditional classification

1. Revenue statement ratio

2. Balance sheet ratio
3. Composite ratio

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(B) Functional classification

1. Liquidity ratio

2. Profitability ratio

3. Leverage ratio or structural ratio

4. Activity ratio or efficiency ratio

6. AUDITORS REPORT
 Name of the auditors
For price water house
Firm Registration Number: 0127541
Chartered Accountants
 To state whether the report is qualified or unqualified

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 (i) The company is maintaining proper record showing full
particular, including quantitative details and situate fixed
assets.
(ii) The inventory has been physically verified by the management
during the year. In our opinion, the frequent verification is
reasonable
(iii) The company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of act and the
rules framed there under.
(iv) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(v) The central Government of India has not prescribed the
maintenance of cost records under clause (d) of sub-sector (1)
of section 209 of the act for any of products of the company.

Name of the status Nature of dues Amount Period to which Forum

in(Rs.`000) the amount where the
relates dispute is
pending

Andhra Pradesh Works contract

2004-2008
General sales tax tax on 520,219
High court
1957; Andhra interstate sales
Pradesh value
added tax, 2005
and central sales
tax act 1956

Central Excise act, Excise duty and 216,962 1985-2007 CESTAT

1944 penalty

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(Cst) act 1956 Central sales 14,185 1993-1999 First\second
tax penalty
Appellate
authority

Bombay sales tax (Wct) on 10,391 1984-1992 First\second

act, 1957 and (cst) interstate sales
Appellate
act,1956
authority

Orissa general sales

tax act, 1947 and
(cst)act, 1956

Tamil nadu (gst)

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7. Common sized statement

(A) P & L A/C (Rupees thousands)

March 31,2010 March 31,2009 March 31,2008

INCOME

Sales and services(Gross) 20,805,602 23,181,615 15,961,440

Less: Excise duty 378,351 278,825 490,739

Net sales and services 20,427,251 22,902,790 15,470,701

Other income 401,192 427,506 397,720

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 20,828,443 23,330,296 15,868,421

EXPENDITURE

Material cost & erection

services 12,372,613 16,003,308 11,034,600

Personnel expenses 2,693,239 2,383,642 1,798,330

Other expenses 2,361,070 2,540,542 1,663,806

Depreciation/Amortization 422,421 335,734 241,249

Less: Transfer from (4,297) (4,816) (4,561)

revaluation Reserve

Interest 1,244 1,014 1,352

18,345,340 21,262,624 14,734,775

Profit Before Tax

Provision for Income Tax 2,483,103 2,067,672 1,133,645

Current Tax

Deferred Tax (876,000) (697,666) (405,546)

Fringe Benefit Tax 65,408 25,072 (20,287)

Profit After Tax - (46,157) (29,000)

1,672,506 1,348,921 733,087
Balance Brought Forward
1,792,645 1,362,766 1,330,308

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(B)Balance Sheet – Common Sized (Rupees thousands)

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 March 31,2010 March 31,2009 March 31,2008

Sources of funds

Shareholders` funds

Share capital 670,242 670,242 670,242

Reserves and surplus 4,294,714 3,410,655 2,850,700

Loan funds

Secured loan - 11,263 16,895

Deferred tax liability - 24,625

4,964,956 4,092,160 3,562,462

APPLICATION OF FUNDS

Fixed assets

Gross block 6,083,480 4,885,769 3,694,728

Less: Accumulated dep./a 2,668,538 2,292,129 2,004,501
Net book value 3,414,944 2,593,640 1,690,227
Capital work-in-progress 540,677 1,193,338 505,269
& advances on capital a/c

Investments 36 36 551
Deferred Tax Asset (net) 65,850 447 -

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Current Asset, Loan and

Advances.

Inventories 2,003,533 642,630 612,986

Sundry debtors 6,233,223 6268205 5,662,040

Cash & bank balances 5,980,600 3,659,035 3,946,693

Other current assets 6,737,436 8,141,945 4,748,689

Loans and advances 3,203,772 4,887,687 2,924,890

24,188,564 23,599,502 17,895,298

Less: Current liabilities &

Provisions 22,150,894 22,378,365 15,777,927

Current liabilities 1,094,221 916,438 750,956

Provisions 23,245,115 23,294,803 16,528,883

943,449 304,699 13,66,415
Net current assets 4,964,956 4,092,160 3,562,462

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