Amtek Auto Ltd.

PRESENTED BY : VIRAL MODI (57) VISHIL MISTRY (58) GUIDED BY : MITAL THAKKAR

INTRODUCTION

Amtek Auto (NSE: AMTEKAUTO, BSE: 520077) is headquartered in New Delhi and is one of the largest integrated automotive component manufacturers in India with a strong global presence. The Company has world class facilities in India, Europe and North America. Amtek Auto has significant expertise in forging, grey and ductile iron casting, gravity and high-pressure aluminum die casting and machining and sub-assembly. The Company also manufactures components for nonauto sectors such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment.

TREND ANALYSIS

Trend analysis involves calculation of percentage changes in financial statement items for a number of successive years. It is an extension of horizontal analysis to many years. We first assign a value of 100 to the financial statement items in a past financial year used as base year & then express the amounts in the following year as a percentage of the base year value.

TREND ANALYSIS
Jun ' 11 Sales Operating profit Interest 1,799.60 Jun ' 10 1,276.40 Jun ' 09 1,052.20 Jun ' 08 1,282.39 Jun ' 07 1,105.25

493.61 148.86

343.25 113.60

254.23 62.81

339.63 29.07

321.86 23.81

Gross profit

505.35

377.64

331.37

409.10

387.82

TREND ANALYSIS

To illustrate using 2007 as the base year, the sales value in 2011 becomes 162.8 as shown below : index in 2011 =
2011 2007

100

1799.60 1105.25

100 = 162.8

This means that from 2007 to 2011 sales increased 62.8 %. Over that period , gross profit increased 30 %, lower than sales.

COMPUTATION OF TREND PERCENTAGES

year Sales Amt 2007 2008 2009 2010 2011 1105.25 1282.39 1052.20 1276.40 1799.60 Trend % 100 116.02 95.22 115.47 162.8 Operating profit Amt 321.86 339.63 254.23 343.23 493.61 Trend % 100 105.52 78.98 106.64 153.3 Interest Amt 23.81 29.07 62.81 113.60 148.66 Trend % 100 122.09 263 477 625 Gross profit Amt 387.82 409.10 333.37 377.64 505.35 Trend % 100 105.48 85.44 97.37 130

INTERPRETATION

The sales have continuously increased in all the years up to 2011. the percentage in 2011 is 179.16 as compared to 100 in 2007. the increase in sales is quite satisfactory. The figures of total expenses have also increased from 2007 to 2009. The increase in more in 2011 as compared to earlier years.

INTERPRETATION

Operating profit has substantially increased from 2007 to 2010. In five year period it has more than doubled. The comparative increase in profits is much higher in 2010 and 2009 as compared 2008.

The expansion of the firm is good and it has doubled its sales and profits in just five years time. The profits have increased more than a sale, which show that there is a proper control over cost of goods sold. The overall performance of the concern is good.

TREND ANALYSIS
ADVANTAGES : Trend analysis can: reveal potentially fruitful areas of audit investigation detect significant variations over time be easily understood and communicated be readily accepted due to its widespread use DISADVANTAGES : Trend analysis can: fail to indicate what the entitys normal or benchmark position is be undermined by frequent changes in financial reporting formats be heavily influenced by the choice of the base fiscal period.

BIBLOGRAPHY

R.Narayanaswamy;Financial accounting;4th edition; PHI learning private limited; Page no.541 http://economictimes.indiatimes.com http://bluestarindia.com http://www.google.com