SYNOPSIS OF TERM PAPER OF ACCOUNTING FOR MANAGERS

SUBMITTED TO:LECT.MISS SUKHWINDAR KAUR

PRESENTED BY:NAME:-BILAL AHMAD CLASS:-MBA IST SEM. SEC.:-RT1001 ROLL NO.:- B49 REG.NO.:-1101149

INDIAN PETROCHEMICALS CORPORATION LTD.

Indian Petrochemicals Corporation Limited (IPCL) is a petrochemicals company in India. It was established on March 22, 1969, with a view to promote and encourage the use of plastics in India. Its business consists of polymers, synthetic fibre, fibre intermediaries, solvents, surfactants, industrial chemicals, catalysts, adsorbents and polyesters. The Company operates three petrochemical complexes, a naphtha based complex at Vadodara and gas based complex each at Nagothane near Mumbai and at Dahej on Narmada estuary in bay of Khambhat. The Company also operates a catalyst manufacturing facility at Vadodara. Its turnover for the financial year 2005-06 has crossed the US $ 2 billion mark. In June 2002, the Government of India as a part of its disinvestment programme divested 26% of its equity shares in favour of Reliance Petroinvestments Limited (RPIL), aReliance Group Company. RPIL acquired an additional 20% equity shares through a cash offer in terms of SEBI (Takeover Regulations) and currently holds 46% of Company's equity shares. The Board of IPCL consists of ten directors led by Shri Mukesh Ambani as Chairman, five independent and five non-independent directors. Effective April 1, 2005, the six polyester companies namely Appollo Fibres Limited (AFL), Central India Polyesters Limited (CIPL), India Polyfibres Limited (IPL), Orissa Polyfibres Limited (OPL), Recron Synthetics Limited (RSL) and Silvassa Industries Private Limited (SIPL) have been amalgamated with IPCL. This marks the entry of the Company in the polyester sector. The polyester units are based in Hoshiarpur (Punjab), Nagpur (Maharashtra), Barabanki (Uttar Pradesh), Baulpur (Orissa), Allahabad (Uttar Pradesh) and Silvassa (Gujarat). Company Profile: Indian Petrochemicals Corporation Limited with management control by Reliance Petroinvest Co. and one of the Navratnas established in 1969 by Govt. of India is leading entity in corporate circles of India. IPCLs mutiproduct portfolio includes Polymers, Synthetic Rubber, Synthetic Fibre & Fibre Intermediates, Solvents, Industrial Chemicals, Synthetic Resins, Engineering Plastics, Catalysts, Absorbents, and Wire & Cable Compounds. IPCL have manufacturing facility at three location, (a) Baroda in Gujarat, (b) Nagothane in Maharashtre, (C) Gandhar near Bharuch in Gujarat.

GANDAHR COMPLEX The discovery of large reserves of oil and gas in the Gandhar region has given the region a fillip through a large-scale industrial development. Availability of raw materials like salt and access to a sea, besides hydrocarbon feed stock and good water sources in river Narmada offered favorable environment for growth of industries in the region. A survey had estimated Oil and Gas reserve in the Gandhar basin at around 190 million tones out of which 73 million tones was said to be recoverable. This important discovery and abundance of salt in nearby places formed the basis for IPCL's venture to set up an integrated gas cracker and a chlor alkali complex near Jageshwar village in Vagra taluka of Bharuch district of Gujarat. Gandhar task force was constituted in 1989. Mr. Rajiv Gandhi, Prime Minister of India, laid the foundation stone for the complex on October 6, 1989. The final investment clearance was granted on March 26, 1992. The special feature of this complex is that it has a fully integrated production of PVC starting from captive Chlorine and Ethylene with power drawn from a captive power plant. IPCLs entry as a producer of Caustic Soda, in synergy with fully integrated PVC plant, has provided an edge in the Caustic Soda and PVC business. Infrastructure development was taken up in tandem with the development of the manufacturing facilities. Exploitation of waterfront for strategic advantage is a unique proposition for any commodity business that has large volumes to handle liquid hydrocarbons inclusive of those at cryogenic temperatures has been set up and commissioned in the estuary of Narmda at Jageshwar near Gandhar Complex. The jetty is about a quarter km long and the water channel is seven to eight meters deep. This facilitates berthing of ship upto 8,000 DWT. The jetty was commissioned on December, 2 1996, when the first ship carrying vinyl chloride arrived. IPCL has also networked its manufacturing facilities at Dahej and Vadodara through three product pipelines. This has provided the opportunity to optimize capacity utilization at Vadodara and Gandhar and source feed stocks and other raw materials at competitive price from international sources. The major handicap of land locked locations has been overcome to a great extent in this way.

In the phase II, a gas cracker of 300,000 MTA of ethylene, 160,000 MTA of HDPE and 120,000 MTA of Ethylene Oxide/Glycol plants were built. The second phase plants have been commissioned during accounting year 1999-2000. The last set of plants of the II phase; gas cracker and C2/C3 separation unit were commissioned on February 10, 2000 (Vasant Panchmi). Flexibility to expand the cracker to 400,000 MTA of ethylene has also been built in during design stage. After addition of balancing equipment, this can also be raised further, to 500,000 MTA of ethylene. Ethylene Oxide/Glycol plant capacity has been expanded to 150,000 MTA in Nov. 03. Further capacity expansion work for CA, VCM, PVC, EO/EG and GCU plants are under progress. (II) Energy Consumption: Gandhar Complex energy consumption rate is approx. 43 Mt of Naphtha equivalent i.e.443 MMKCAL per hour.72 % of the total energy is purchased energy and balance 28 % energy is met through fuel gas and Mixed Oil generated in process internally. Please find the in the page trend of energy consumption of Gandhar complex for the period of 98 99 to 2003-04. Energy Cost as a Percentage of Manufacturing cost comes to Approx. 28.63

Company Background - Indian Petrochemicals Corporation Industry Name Petrochem Polymers House Name Ambani Group Collaborative Country Name N.A. Joint Sector Name N.A. Year Of Incorporation 1969 Year Of Commercial Production N.A. Regd. Office Address District State Pin Code P.O. Petrochemicals, N.A. Vadodra District Gujarat 391346

Tel. No. Fax No. Email : InvestorRelations.Corpo@ipcl.co.in

0265-6696000/7000 0265-6693834 Internet : http://www.ipcl.co.in

Company Facts - IPCL

Registered Address P.O. Petrochemicals ,Vadodra District Gujarat 391346 Tel: 0265-6696000/7000 Fax: 0265-6693834 Email: InvestorRelations.Corpo@ipcl.co.in Website: http://www.ipcl.co.in Group: Ambani Group

Explore IPCL connections

Registrars

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Competition
Last Price Market Cap. Sales Net Profit (Rs. cr.) Turnover 1,513.12 755.34 731.72 719.88 705.10 623.50 397.14 338.05 334.44 258.86 1,454.93 1,612.71 985.01 1,178.01 312.98 559.47 443.55 1,023.30 1,027.80 389.49 132.32 60.48 -128.16 86.38 10.53 48.99 34.03 66.48 67.63 21.06 Total Assets

Finolex Ind Supreme Petro Chemplast Sanma Savita Oil Tech Bhansali Eng INEOS ABS NOCIL S A Petrochem DCW Manali Petro

122.00 78.00 9.15 493.00 42.50 354.55 24.70 14.50 17.05 15.05

1,421.20 391.48 1,411.59 385.62 260.35 272.43 304.65 885.30 770.89 133.30

Listing Information
Face Value Of Equity Shares Market Lot Of Equity Shares BSE Code 10 1 500105

NSE Code BSE Group

0 A

Whether The Company Forms A Part Of The Following Indices Sensex Nifty BSE-100 BSE-200 S&P CNX 500 CNX Midcap CNX FMCG Listing On Listed On The Stock Exchange, Mumbai, National Stock Exchange of India Ltd., Luxembourg Stock Exchange No No No No No No No

Board of Directors:-

MUKESH D AMBANI (Chairman) Sandesh K Anand (Whole Time Director)

Rajendra S Lodha Nikhil R Meswani Anand J Jain Lalit Bhasin Kamal P Nanavaty Shiv Kumar Bhardwaj

Sandeep H Junnarkar

Shailesh V Haribhakti

Balance Sheet of IPCL:Particulars Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves 249.05 249.05 0 0 2,023.07 0 249.05 249.05 0 0 2,672.00 0 Mar '04 Mar '05

..........................Rs. in crores....................................
Increase/Decrease 0 0 0 0 648.93 0 %age 0 0 0 0 32.0764976 0 Mar '06 249.05 249.05 39.12 0 4,681.92 0 Increase/Decrease 0 0 39.12 0 2009.92 0 %age 0 0 0 0 75.221557 0

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

2,272.12 1,190.03 976.02 2,166.05 4,438.17 9,646.89 4,260.96 5,385.93 80.66 151.23 773.1 403.29 50.07 1,226.46 491.01 0.54 1,718.01 0 2,768.88 128.78 2,897.66 1,179.65 0 4,438.17 812.01

2,921.05 659.85 100.4 760.25 3,681.30 9,785.77 4,780.77 5,005.00 58.8 165.33 623.12 701.06 64.24 1,388.42 500.52 600.58 2,489.52 0 3,637.96 399.39 4,037.35 1,547.83 0 3,681.30 602.46

648.93 -530.18 -875.62 -1405.8 -756.87 138.88 519.81 -380.93 -21.86 14.1 -149.98 297.77 14.17 161.96 9.51 600.04 771.51 0 869.08 270.61 1139.69 -368.18 0 -756.87 -209.55

28.5605514 44.55181802 89.71332555 -64.9015489 -17.0536505 1.43963495 12.19936352 -7.07268754 27.10141334 9.32354692 -19.3998189 73.83520544 28.30037947 13.20548571 1.936824097 111118.5185 44.90718913 0 31.38742018 210.1335611 39.33139154 31.2109524 0 -17.0536505 -

4,970.09 596.24 605.17 1,201.41 6,171.50 11,201.77 5,340.47 5,861.30 97.07 179.82 1,226.13 450.48 12.99 1,689.60 1,737.40 1,066.58 4,493.58 0 4,029.54 430.73 4,460.27 33.31 0 6,171.50 577.18

2049.04 -63.61 504.77 441.16 2490.2 1416 559.7 856.3 38.27 14.49 603.01 -250.58 -51.25 301.18 1236.88 466 2004.06 0 391.58 31.34 422.92 1581.14 0 2490.2 -25.28

70.14738 9.6400697 502.75896 58.02828 67.64458 14.469991 11.707319 17.10889 65.085034 8.76429 96.772692 -35.74301 -79.77895 21.692283 247.119 77.591661 80.499855 0 10.763725 7.8469666 10.475188 -102.152 0 67.64458 -

25.80633243 Book Value (Rs) 91.53 117.68 26.15 28.5698678 198.65 80.97

4.1961292 68.805235

Comparative analysis of Balance Sheet of IPCL: Total Share Capital and Equity Share Capital is stable in all the three years. Reserves increases from 32.08% in 2005 to 75.22% in 2006. There is very much increase in Total Debts from 2005 to 2006 which is due to the increase in unsecured loans and decrease in secured loans. Investment has decreased from 9.32% in 2005 to 8.76% in 2006. Inventories has increased from -19.39% in 2005 to 96.77% in 2006, this is due to the increase in work in progress. Sundry Debtors has increased from 73.83% in 2005 to -35.74 % in 2006. Cash and bank balance has also decreased from 28.30% to -79.77%. Loans and advanced has very much increased, which means that company had borrowed very much from outsiders.

Profit and Loss Account of IPCL:Particulars Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments 9,080.46 895.73 8,184.73 -59.28 -129.59 9,470.40 1,185.17 8,285.23 -32.23 2.92 389.94 289.44 100.50 27.05 132.51 Mar '04 Mar '05 Increase/Decrease

..........................Rs. in crores....................................
%age 4.29 32.31 1.23 -45.63 102.25 Mar '06 12,372.52 1,477.42 10,895.10 127.51 232.41 Increase/Decrease 2,902.12 292.25 2,609.87 159.74 229.49 %age 30.64411218 24.65890969 31.50027217 495.6251939 7859.246575

Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 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)

7,995.86 4,994.84 742.96 389.61 130.5 494.28 32.01 0 6,784.20 1,270.94 1,211.66 381.8 829.86 685.57 21.61 122.68 0 122.68 63.1 273.56 1,789.36 0 62.05 7.95

8,255.92 4,297.64 1,012.01 460.81 206.16 459.66 19.39 0 6,455.67 1,832.48 1,800.25 247.35 1,552.90 505.7 0 1,047.20 4.41 1,051.61 240.1 785.73 2,158.03 0 111.7 15.83

260.06 -697.20 269.05 71.20 75.66 -34.62 -12.62 0.00 -328.53 561.54 588.59 -134.45 723.04 -179.87 -21.61 924.52 4.41 928.93 177.00 512.17 368.67 0.00 49.65 7.88

3.25 -13.96 36.21 18.27 57.98 -7.00 -39.43 0.00 -4.84 44.18 48.58 -35.21 87.13 -26.24 100.00 753.60 0.00 757.20 280.51 187.22 20.60 0.00 80.02 99.12

11,255.02 6,431.41 1,295.23 454.93 201.88 493.39 81.96 0 8,958.80 2,168.71 2,296.22 260.31 2,035.91 561.49 0.28 1,474.14 114.37 1,588.51 430.72 1,163.75 2,527.39 0 136.52 19.15

2,999.10 2,133.77 283.22 -5.88 -4.28 33.73 62.57 0.00 2,503.13 336.23 495.97 12.96 483.01 55.79 0.28 426.94 109.96 536.90 190.62 378.02 369.36 0.00 24.82 3.32

36.32666014 49.6498078 27.98588947 1.276013975 2.076057431 7.338032459 322.6921093 0 38.77413189 18.34835851 27.55006249 5.239539115 31.10374139 11.03223255 0 40.7696715 2493.424036 51.05504892 79.39192003 48.11067415 17.11561007 0 22.22023277 20.97283639

Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

2,482.26 11.02 25 91.53

2,482.26 31.65 45 117.68

0.00 20.63 20.00 26.15

0.00 187.21 80.00 28.57

2,482.26 46.88 55 198.65

0.00 15.23 10.00 80.97

0 48.12006319 22.22222222 68.80523453

Comparative analysis of Profit and Loss account of IPCL: Net Sales has increased from 1.24% to 30.50%,which is due to increase in Sales Turnover. There is almost 33% increase in Total Income, which is due to the increase in Net Sales from 2005 to 2006. Total Expenses has increased from -4.84% to 38.77%,which is due to the very much increase in miscellaneous expenses. Operating Profit has decreased from 44.18% to 18.38%. Profit After Tax has very much decreased from 187.22% in 2005 to 48.11% in 2006.Pat has decreased due to increase in interest.

Common size Balance Sheet of IPCL:Particulars 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 249.05 249.05 0 0 2,023.07 0 2,272.12 1,190.03 976.02 2,166.05 5.611547102 5.611547102 0 0 45.5834274 0 51.19497451 26.813529 21.9914965 48.80502549 249.05 249.05 0 0 2,672.00 0 2,921.05 659.85 100.4 760.25 Mar '04 %age Mar '05 %age

..........................Rs. in crores....................................
Mar '06 249.05 249.05 39.12 0 4,681.92 0 4,970.09 596.24 605.17 1,201.41 %age 4.0354857 4.0354857 0.633881552 0 75.86356639 0 80.53293365 9.661184477 9.805881876 19.46706635

6.765273137 6.765273137 0 0 72.5830549 0 79.348328 17.92437454 2.727297422 20.651672

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)

4,438.17 9,646.89 4,260.96 5,385.93 80.66 151.23 773.1 403.29 50.07 1,226.46 491.01 0.54 1,718.01 0 2,768.88 128.78 2,897.66 1,179.65 0 4,438.17 812.01 91.53

100 217.3618856 96.0071380

3,681.30 9,785.77 4,780.77

100 265.8237579 129.8663516 #DIV/0! 1.597261837 4.49107652 16.92662918 19.04381604 1.745035721 37.71548094 13.59628392 16.31434548 67.62611034 0 #DIV/0! 10.84915655 109.6718551 -42.0457447 0 100 16.36541439 3.196696819

6,171.50 11,201.77 5,340.47 5,861.30 97.07 179.82 1,226.13 450.48 12.99 1,689.60 1,737.40 1,066.58 4,493.58 0 4,029.54 430.73 4,460.27 33.31 0 6,171.50 577.18 198.65

100 181.5080612 86.53439196 94.97366929 1.572875314 2.913716276 19.86761727 7.299359961 0.210483675 27.37746091 28.15198898 17.28234627 72.81179616 0 65.29271652 6.979340517 72.27205704 0.539739123 0 100 9.352345459 3.218828486

121.3547476 1.817415737 3.407485518 17.41934176 9.086853365 1.128167691 27.63436281 11.06334368 0.012167177 38.70987366 0 62.38787608 2.901646399 65.28952248 -26.57964882 0 100 18.29605445 2.062336504

5,005.00 58.8 165.33 623.12 701.06 64.24 1,388.42 500.52 600.58 2,489.52 0 3,637.96 399.39 4,037.35 1,547.83 0 3,681.30 602.46 117.68

ANALYSIS:-

Total Share Capital and Equity Share Capital had first increased in 2004 to 2005 and then decreased in 2006. Reserves has increased from 2004 to 2005 but there is little bit increase in 2006. There is gradual decrease in Total Debts from 2004 to 2006 due to decrease in unsecured loans. Investment has first increased from 3.41% in 2004 to 4.50% and then decreased to 2.91%. Inventories has also decreased from 2004 to 2006. Sundry Debtors has first increased from 9.08% in 2004 to 19.34% in 2005 and then decreased to 7.29% in 2006 which is less than the value in 2004.

Cash and Bank Balance is almost equal in 2004 and 2005 and then decreased in 2006. There is continuous increase Working Capital from 2004 to 2006 due to increase in loans and advances.

Common size Profit and Loss Account of IPCL:Particulars 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 4,994.84 742.96 389.61 130.5 494.28 9,080.46 895.73 8,184.73 -59.28 -129.59 7,995.86 110.94 10.94 100.00 -0.72 -1.58 97.69 0.00 61.03 9.08 4.76 1.59 6.04 4,297.64 1,012.01 460.81 206.16 459.66 9,470.40 1,185.17 8,285.23 -32.23 2.92 8,255.92 114.30 14.30 100.00 -0.39 0.04 99.65 0.00 51.87 12.21 5.56 2.49 5.55 Mar '04 %age Mar '05 %age

..........................Rs. in crores....................................
Mar '06 12,372.52 1,477.42 10,895.10 127.51 232.41 11,255.02 6,431.41 1,295.23 454.93 201.88 493.39 %age 113.5604079 13.56040789 100 1.170342631 2.133160779 103.3035034 0 59.03029802 11.88818827 4.175546805 1.852943066 4.528549531

Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 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)

32.01 0 6,784.20 1,270.94 1,211.66 381.8 829.86 685.57 21.61 122.68 0 122.68 63.1 273.56 1,789.36 0 62.05 7.95 2,482.26 11.02 25 91.53

0.39 0.00 82.89 15.53 14.80 4.66 10.14 8.38 0.26 1.50 0.00 1.50 0.77 3.34 21.86 0.00 0.76 0.10 30.33 0.13 0.31 1.12

19.39 0 6,455.67 1,832.48 1,800.25 247.35 1,552.90 505.7 0 1,047.20 4.41 1,051.61 240.1 785.73 2,158.03 0 111.7 15.83 2,482.26 31.65 45 117.68

0.23 0.00 77.92 22.12 21.73 2.99 18.74 6.10 0.00 12.64 0.05 12.69 2.90 9.48 26.05 0.00 1.35 0.19 29.96 0.38 0.54 1.42

81.96 0 8,958.80 2,168.71 2,296.22 260.31 2,035.91 561.49 0.28 1,474.14 114.37 1,588.51 430.72 1,163.75 2,527.39 0 136.52 19.15 2,482.26 46.88 55 198.65

0.75226478 0 82.22779047 19.9053703 21.07571294 2.389239199 18.68647374 5.15360116 0.002569963 13.53030261 1.049737956 14.58004057 3.953336821 10.68140724 23.19749245 0 1.253040358 0.175767088 22.78326954 0.430285174 0.504814091 1.823296711

ANALYSIS: There is improvement in Total Income from 2004 to 2006 when compared with Net Sales.

 Total Expenses are lesser than Net Sales,this is due to the continuous decrease in raw-materials expenses, employee cost, selling and distribution cost etc. Operating Profit first increases from 2004 to 2005 and then decreases in 2006 but it ai very much less than Net Sales. No doubt Profit After Tax is showing increasing trend but it is very much less than Net Sales.

Balance Sheet of IPCL:Particulars 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 9,646.89 4,260.96 5,385.93 80.66 151.23 100 100 100 100 100 9,785.77 4,780.77 5,005.00 58.8 165.33 249.05 249.05 0 0 2,023.07 0 2,272.12 1,190.03 976.02 2,166.05 4,438.17 100 100 0 0 100 0 100 100 100 100 100 249.05 249.05 0 0 2,672.00 0 2,921.05 659.85 100.4 760.25 3,681.30 Mar '04 Mar '05

..........................Rs. in crores....................................
Mar '06 100 100 0 0 132.0765 0 128.56055 55.448182 10.286674 35.09845 82.94635 101.43963 112.19936 92.92731 72.898587 109.3235 249.05 249.05 39.12 0 4,681.92 0 4,970.09 596.24 605.17 1,201.41 6,171.50 11,201.77 5,340.47 5,861.30 97.07 179.82 100 100 0 0 231.4265 0 218.74241 50.102939 62.003852 55.46548 139.0551 116.11794 125.3349 108.8261 120.34466 118.905

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)

773.1 403.29 50.07 1,226.46 491.01 0.54 1,718.01 0 2,768.88 128.78 2,897.66 1,179.65 0 4,438.17 812.01 91.53

100 100 100 100 100 100 100 0 100 100 100 100 0 100 100 100

623.12 701.06 64.24 1,388.42 500.52 600.58 2,489.52 0 3,637.96 399.39 4,037.35 1,547.83 0 3,681.30 602.46 117.68

80.600181 173.83521 128.30038 113.20549 101.93682 111218.52 144.90719 0 131.38742 310.13356 139.33139 131.211 0 82.94635 74.193668 128.56987

1,226.13 450.48 12.99 1,689.60 1,737.40 1,066.58 4,493.58 0 4,029.54 430.73 4,460.27 33.31 0 6,171.50 577.18 198.65

158.59915 111.70126 25.943679 137.76234 353.84208 197514.81 261.55727 0 145.5296 334.46964 153.92662 -2.82372 0 139.0551 71.080405 217.03267

Trend analysis of Balance Sheet of IPCL: Total Share capital and Equity Share Capital is stable during the three years. Reserves had increased from 32% in 2004 to 132% in 2006 which means that there is 100% increase in reserves. Total Debts first decreases to 18% in 2005 and then there is 39% increase in Total Debts in 2006 when compared with base year i.e, 2004 Investment increases to 9% in 2005 and 18% in 2006 when compared with 2004. Inventories in 2005 decreases by 18% and then increases by 39% in 2006. Sundry Debtors in 2005 increases by 73% and then there is little increase in them i.e, 11% in 2006. Cash and Bank balance in 2005 increases by 28% and in 2006 it decreases by 75%. There is gradual increase in Current Liabilities and Provisions from 2004 to 2006.

 Current Assets in 2005 increases by 31% and then it decreases to -2.82 % in 2006.

Graphical Representation:-

400 350 300

250
200 150 100 50 0 -50 Mar'04 Mar'05 Mar'06

Profit and Loss account of IPCL:Particulars 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 Operating Profit PBDIT Interest PBDT 4,994.84 742.96 389.61 130.5 494.28 32.01 0 6,784.20 1,270.94 1,211.66 381.8 829.86 100.00 100.00 100.00 100.00 100.00 100.00 0.00 100.00 100.00 100.00 100.00 100.00 4,297.64 1,012.01 460.81 206.16 459.66 19.39 0 6,455.67 1,832.48 1,800.25 247.35 1,552.90 86.04 136.21 118.27 157.98 93.00 60.57 0.00 95.16 144.18 148.58 64.79 187.13 6,431.41 1,295.23 454.93 201.88 493.39 81.96 0 8,958.80 2,168.71 2,296.22 260.31 2,035.91 128.76108 174.33375 116.76548 154.69732 99.81994 256.04499 0 132.05389 170.6383 189.51026 68.179675 245.33174 9,080.46 895.73 8,184.73 -59.28 -129.59 7,995.86 100.00 100.00 100.00 100.00 100.00 100.00 9,470.40 1,185.17 8,285.23 -32.23 2.92 8,255.92 104.29 132.31 101.23 54.37 -2.25 103.25 12,372.52 1,477.42 10,895.10 127.51 232.41 11,255.02 136.25433 164.94033 133.11496 215.09784 179.34254 140.7606 Mar '04 Mar '05 Mar '06

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)

685.57 21.61 122.68 0 122.68 63.1 273.56 1,789.36 0 62.05 7.95 2,482.26 11.02 25 91.53

100.00 100.00 100.00 0.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

505.7 0 1,047.20 4.41 1,051.61 240.1 785.73 2,158.03 0 111.7 15.83 2,482.26 31.65 45 117.68

73.76 0.00 853.60 0.00 857.20 380.51 287.22 120.60 0.00 180.02 199.12 100.00 287.21 180.00 128.57

561.49 0.28 1,474.14 114.37 1,588.51 430.72 1,163.75 2,527.39 0 136.52 19.15 2,482.26 46.88 55 198.65

81.901192 1.2956964 1201.614 0 1294.8402 682.59905 425.4094 141.24547 0 220.01612 240.8805 100 425.4083 220 217.03267

Trend analysis of Profit and Loss account of IPCL: There is not too much increase in Net Sales in 2005 i.e,only 1 % and in 2006 it has increased to 33% when compared with the base year 2004, which is due to increase in Sales Turnover. Total Income has increased by 3% in 2005 and in 2006 it increased by 40% when compared with 2004. Total Expenses first decreases by 5% in 2005 and then increased by 46% in 2006 which is due to increase in purchases, power and fuel cost and selling and administration cost. Operating Profit increases by 44% and then increases by 70% in 2005 and 2006 respectively. Profit After tax has increased by 187% in 2005 and then by 325% in 2006 when compared with the base year 2004.

Graphical Representation:-

1400 1200 1000 800 600 400 200 0 -200 -400 Mar'04 Mar'05 Mar'06

RATIO ANALYSIS:Ratio analysis is one of the powerful tool of the financial analysis. A ratio can be defined as the indicated quotient of two mathematical expressions, and as the relationship between two or more things ratio is thus, the numerical or an arithmetical relationship between two figures. It is expressed where one figure is divided by another. If 4,000 is divided by 10,000, the ratio can be expressed as 4 or 2:5 or 40%. Ratio analysis helps the analysts to make quantitative judjment with regard to concerns financial position and performance.

1. LIQUIDITY RATIOS:If it is divided to study the liquidity position of the concerns, in order to highlight the relative strength of the concerns in meeting their current obligations to maintain sound liquidity and to pinpoint the difficulties if any in it, then liquidity ratios are calculated. These ratios are used to measure the firms ability to meet short term obligations. They compare short term obligations to short term(or current) resources available to meet these obligations. From these ratios, much insight can be obtained into the present cash solvency of the firm and the firms ability to remain solvent in the event of adversity. (i)Current Ratio:- It is the ratio of current assets to current liabilities. It shows a firms ability to cover its current liabilities with its current assets. It is expressed as follows:

Current Ratio= Current Assets / Current Liabilities.

YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO 2004 1,718.01 2,897.66 0.59289565 2005 2,489.52 4,037.35 0.616622 2006 4,493.58 4,460.27 1.007468

(STANDARD 2:1).

(ii)Quick Ratio:-This is the ratio of liquid assets to current liabilities. It shows firms ability to meet current liabilities with its most quick
(liquid) assets, 1:1 ratio is considered ideal ratio for a concern because it is wise to keep the quick or liquid assets equal at least equal to the current or liquid liabilities at all times. It is calculated as under:

Quick Ratio Or Acid Test Ratio= Quick Assets/Current Liabilities. Quick Assets = Current Assets Prepaid Expenses Inventory.
YEAR CURRENT ASSETS (-)INVEVTORY QUICK ASSETS CURRENT LIABILITIES QUICK RATIO 2004 1,718.01 773.1 944.91 2,897.66 0.32609416 2005 2,489.52 623.12 1,866.40 4,037.35 0.462283 2006 4,493.58 1,226.13 3,267.45 4,460.27 0.732568

(STANDARD 1:1).

(iii)ABSOLUTE LIQUIDITY (OR SUPER QUICK) RATIO :- Though receivables are generally more liquid than inventories, there
may be debts having doubt regarding their real stability in time. So to get idea about the absolute liquid of concern, both receivables and inventories are excluded from current assets and only absolute liquid assets, such as cash in hand, cash at bank and readily realisable securities are taken into consideration. Absolute liquidity ratio is calculated as follows:

ABSOLUTE LIQUIDITY RATIO = CASH + BANK BALANCE + LIABILITIES

YEAR CASH AND BANK BALANCE 2004 50.07 2005 64.24 2006 12.99

MARKETABLE SECURITIES / CURRENT

CURRENT LIABILITIES ABSOLUTE LIQUIDITY RATIO

2,897.66 0.01727946

4,037.35 0.015911

4,460.27 0.002912

(STANDARD 0.5:1).

2.TURNOVER ACTIVITY RATIO / EFFICIENCY RATIO:These ratios are very important for a concern to judge how well facilities at the disposal of the concern are being used or to measure the effectiveness with which a concern uses its resources at its disposal. In short, these will indicate position of assets usage. These ratios are usually calculated on the basis of sales or cost of sales and are expressed in integers rather than as a percentage. Such ratios should be calculated separately for each type of asset. The greater the ratio more will be the efficiency of asset usage. The lower ratio will reflect the under utilisation of the resources available at the command of the concern. The concern must always plan for efficient use of the assets to increase the overall efficiency. The following are the important turnover activity ratios usually calculated by a concern.

(i) Inventory Turnover Ratio:-It denotes the speed at which the inventory will be converted into sales, thereby contributing for the profits of
the concern. When all other factors remain constant, greater the turnover of inventory more will be efficiency of its management. Further, it will be higher when sales are maximum and the average inventory is minimum. This ratio establishes relationship between costs of goods sold during a given period and the average amount of inventory held during that period. This ratio is calculated as follows:

Inventory Turnover Ratio = Cost of Goods Sold(COGS) / Average Inventory. COGS= Sales Gross Profit Or COGS= Sales + Closing Stock- Opening Stock- Purchases Direct Expenses.
YEAR Net Sales 2004 8,184.73 2005 8,285.23 2006 10,895.10

OPENING STOCK CLOSING STOCK AVERAGE INVENTORY INVENTORY TURNOVER RATIO

978.81 773.1 875.955 9.34377908

773.1 623.12 698.11 11.86809

623.12 1,226.13 924.625 11.78326

(ii)Days of Inventory Holding = No. of Days in Year / Inventory Turnover Ratio.

YEAR NO. OF DAYS IN AYEAR INVENTORY TURNOVER RATIO DAYS OF INVENTORY HOLDING 2004 360 9.34 38.5438972 2005 360 11.87 30.32856 2006 360 11.78 30.56027

(iii)Debtor Turnover Ratio:-It indicates the number of times on the average the receivables are turn over in each year. The higher the value
of ratio, the more is the efficient management of debtors. It measures the accounts receivables (trade debtors and bills receivables) in terms of number of days of credit sales during a particular period. This ratio is calculated as follows:

Debtor Turnover Ratio= Net Credit Sales / Average Debtors. Or Total Sales / Total Debtors.
YEAR NET SALES TOTAL DEBTORS DEBTOR TURNOVER RATIO 2004 8,184.73 403.29 20.2948995 2005 8,285.23 701.06 11.81815 2006 10,895.10 450.48 24.18554

(iv) Average Collection Period = No. of Days in Year / Debtor Turnover Ratio.

YEAR NO. OF DAYS IN AYEAR DEBTOR TURNOVER RATIO AVERAGE COLLECTION PERIOD

2004 360 20.29 17.7427304

2005 360 11.82 30.45685

2006 360 24.19 14.88218

(v)Credit Turnover Ratio= Net Credit Purchases/ Average Creditors Or Total Purchases / Total Creditors. (vi)Average Payment Period= No. of Days in Year/ Credit Turnover Ratio.
{Note:-As there are not the values of creditors in the balance sheet so these values have not been calculated.}

(vii)Asset Turnover Ratio:-

This ratio is calculated by dividing the net sales by the value of total assets (i.e,Net sales / Total Assets).A high ratio is an indicator of overtrading of total assets while a low ratio reveals idle capacity. The traditional standard for the ratio is two times.

Asset Turnover Ratio= Net Sales / Total Assets.

YEAR NET SALES TOTAL ASSETS ASSET TURNOVER RATIO

2004 8,184.73 4,438.17 1.84416775

2005 8,285.23 3,681.30 2.250626

2006 10,895.10 6,171.50 1.765389

(vii)Sales to Capital Employed or Capital Turnover Ratio:- This ratio shows the efficiency of capital employed in the business by
computing how many times capital employed is turned-over in a stated period. The higher the ratio, the greater the profits. A low capital turnover ratio should be taken to mean that sufficient sales are not being made and profits are lower. The ratio is ascertained as follows:

Sales to Capital Employed or Capital Turnover Ratio= Sales/Capital employed. Capital employed=Share capital +Reserves +Long term liabilities
YEAR NET SALES TOTAL ASSETS CURRENT LIABILITIES CAPITAL EMPLOYED CAPITAL TURNOVER RATIO 2004 8,184.73 4,438.17 2,897.66 7,335.83 1.11571969 2005 8,285.23 3,681.30 4,037.35 7,718.65 1.073404 2006 10,895.10 6,171.50 4,460.27 10,631.77 1.024768

(viii)Working Capital Ratio:-This ratio shows the number of times working capital is turned-over in a stated period. This higher is the ratio,
the lower is the investment in working capital and the greater are the profits. However, a very high turnover of working capital is a sign of overtrading and may put the concern into financial difficulties. On the other hand, a low working capital turnover ratio indicates that working capital is not efficiently utilised. It is calculated as follows:

Working Capital Ratio= Sales / Working Capital.

YEAR NET SALES CURRENT ASSETS CURRENT LIABILITIES WORKING CAPITAL WORKING CAPITAL RATIO 2004 8,184.73 1,718.01 2,897.66 -1,179.65 -6.9382698 2005 8,285.23 2,489.52 4,037.35 1,547.83 -5.3528 2006 10,895.10 4,493.58 4,460.27 33.31 327.082

3.SOLVENCY OR LEVERAGE RATIO:The leverage ratio explain the extent to which the debt is employed in the capital structure of the concerns. All concerns use debt funds along with equity funds, in order to maximize the after tax profits, thereby optimizing earnings available to equity shareholders. The basic facility of debt funds is that after tax cost of them will be significantly lower and which can be paid back depending upon their terms of issue. Further debt funds will not dilute the equity holders control position. However, the debt funds are used very carefully by considering the liquidity end risk factor. The debt will increase the risk of the company. In order to analyse the leverage position of the concerns. Total debt to Total Assets Ratio, Debt Equity Ratio and Time Interest Earned (i.e, Earnings before tax / Interest) can be calculated.

It may be favourable or unfavourable. When earnings are more than the fixed cost of the funds, it is called favourable. An unfavourable leverage exists if the rate of return remains to be lower. It can be used as a tool of financial planning by finance manager.

(i)Debt Equity Ratio:- This ratio is calculated to measure the relative proportions of outsiders funds and shareholders funds invested in the
company. This ratio is determined to ascertain the soundness of long term financial policies of that company and is also known as externalinternal equity ratio. It is calculated as follows:

Debt Equity Ratio= Outstanding Funds(Total Debts)/Shareholders Fund. Shareholders Funds = Equity share capital+Preference shares +Reserves & Surpluses(Retained earnings).
YEAR TOTAL DEBTS EQUITY SHARE CAPITAL RESERVES SHARE HOLDERS FUNDS DEBT EQUITY RATIO 2004 2,166.05 249.05 2,023.07 2,272.12 0.953317 2005 760.25 249.05 2,672.00 2,921.05 0.260266 2006 1,201.41 249.05 4,681.92 4,930.97 0.243646

(ii)Proprietory Ratio:- A variant of debt to equity ratio is the propriety ratio which shows the relationship between shareholders funds and
total assets. This ratio is worked out as follows:

Proprietory Ratio = shareholders Funds / Total Assets.

YEAR EQUITY SHARE CAPITAL 2004 249.05 2,023.07 2,272.12 4,438.17 2005 249.05 2,672.00 2,921.05 3,681.30 2006 249.05 4,681.92 4,930.97 6,171.50

RESERVES SHARE HOLDERS FUNDS TOTAL ASSETS PROPRIETORY RATIO

0.51195

0.79348

0.79899

4. PROFITABILITY RATIO:Profitability ratio is the overall measure of the companies with regard to efficient and effective utilisation of resources at their command. It indicates in a nutshell the effectiveness of the decisions taken by the management from time to time. Profitability ratios are of utmost importance for a concern. These ratios are calculated to enlighten the end results of business activities which is the sole criterion of the overall efficiency of the business concern. The following are the important profitability ratios:

(i)Gross Profit Ratio:- This ratio tells gross margin on trading and is calculated as under: (i)Gross Profit Ratio= Gross Profit / Net Sales*100. [Note:- The values of COGS is not given so we cannot calculate the values of gross profit.] (ii)Net Profit Ratio:- This ratio measures the relationship between net profit and sales of a firm. It is calculated as follows: Net Profit Ratio = Net Profit / Net Sales *100.
YEAR NET PROFIT NET SALES NET PROFIT RATIO 2004 273.56 8,184.73 0.033423 2005 785.73 8,285.23 0.094835 2006 1,163.75 10,895.10 0.106814

(iii)Operating Ratio:This ratio indicates the proportion that the cost of sales bears to sales. Cost of sales includes cost of goods sold as well as other operating expenses, administration, selling and distribution expenses which have matching relationship with sales. It excludes income and expenses which

have no bearing on production and sales, i.e, non-operating income and expenses as interest and dividend received on investment, interest paid on long-term loans and debentures, profit or loss on sales of fixed assets or long-term investments. It is calculated as:

Operating Ratio= Operating Expenses/Net Sales *100. Operating Expenses= COGS+Office Expenses+Selling & Distribution Expenses.

YEAR OPERATING EXPENSES NET SALES OPERATING RATIO

2004 6,784.20 8,184.73 0.828885

2005 6,455.67 8,285.23 0.779178

2006 8,958.80 10,895.10 0.822278

(iv)Operating Profit Ratio:This ratio establishes the relationship between operating profit and sales and is calculated as follows:

Operating Profit Ratio= Operating Profit/ Net Sales*100

Where Operating Profit = Net Profit + Non-operating Expenses Non-operating Income Or = Gross Profit Operating Expenses.

This ratio indicates the portion remaining out of every rupee worth of sales after all operating costs and expenses have been met. Higher the ratio the better it is.

YEAR OPERATING PROFIT NET SALES

2004 1,270.94 8,184.73

2005 1,832.48 8,285.23

2006 2,168.71 10,895.10

OPERATING PROFIT RATIO

0.15528

0.22117

0.19905

5.PROFITABILITY RATIO RELATED TO INVESTMENT:(i)Interest Coverage Ratio:It really measures the ability of the concern to service the debt. This ratio is very important from lenders point of view and indicates whether the business would earn sufficient profits to pay periodically the interest charges. The higher the ratio, the more secured the lenders will be in respect of their periodical interest income. It is calculated as under:

Interest Coverage Ratio = Earnings Before interest and Taxes / Interest. Charges.

YEAR PAT (+)TAX (+)INTEREST EARNINGS BEFORE TAX AND INTEREST

2004 273.56 63.1 381.8 718.46

2005 785.73 240.1 247.35 1273.18

2006 1,163.75 430.72 260.31 1854.78

INTEREST INTEREST COVERAGE RATIO

381.8 1.881771

247.35 5.147281

260.31 7.125274

(ii)Earnings Per Share(EPS):- This helps in determining the market price of equity shares of the company and in estimating the companys
capacity to pay dividend to its equity shareholders. It is calculated as follows:

Earnings Per Share(EPS)=Earnings available to Equity Shareholders-Preference dividend/No. Of Equity Shares Outstanding*100.
YEAR EARNINGS BEFORE TAX AND INTEREST (-)TAX (-)INTEREST EARNINGS AVAILABLE TO EQUITY SHAREHOLDERS NO. OF EQUITY SHARES OUTSTANDING EARNING PER SHARE 2004 718.46 63.1 381.8 273.56 2,482.26 11.0206 2005 1273.18 240.1 247.35 785.73 2,482.26 31.65382 2006 1854.78 430.72 260.31 1,163.75 2,482.26 46.88268

(iii)Price-Earnings Ratio(P/E):-This ratio indicates the market value of every rupee earning in the firm and is compared with industry
average. High ratio indicates the share is overvalued and low ratio shows that share is undervalued. It is computed by the following formula:

Price-Earnings Ratio(P/E)=Market Price/Earning Per Share. [Note:- Market Price is presumed to be Rs.100 because the value was not given.]

YEAR MARKET PRICE EARNING PER SHARE PRICE EARNING RATIO

2004 100 11.02 9.07441

2005 100 31.65 3.159558

2006 100 46.88 2.133106

(iv)Return on Investment (ROI) Ratio=EBIT/Capital Employed *100.

ROI. A measure of a corporation's profitability, equal to a fiscal year's income divided by common stock and preferred stock equity plus long-term debt. ROI measures how effectively the firm uses its capital to generate profit; the higher the ROI, the better. More generally, the income that an investment provides in a year.

YEAR EARNINGS BEFORE TAX AND INTEREST TOTAL ASSETS CURRENT LIABILITIES CAPITAL EMPLOYED RETURN ON INVESTMENT RATIO

2004 718.46 4,438.17 2,897.66 7,335.83 9.793847

2005 1273.18 3,681.30 4,037.35 7,718.65 16.49485

2006 1854.78 6,171.50 4,460.27 10,631.77 17.44564

(v)Dividend Per Share(DPS):DPS. The amount of dividend that a stockholder will receive for each share of stock held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.

Dividend Per Share=Total Dividend available for equity shareholders/No. Of Equity Shares.

YEAR EARNINGS BEFORE TAX AND INTEREST (-)TAX (-)INTEREST (-)RESERVES TOTAL DIVIDEND AVAILABLE FOR EQUITY SHAREHOLDERS NO.OF EQUITY SHARES DIVIDEND PER SHARE

2004 718.46 63.1 381.8 2,023.07 1,749.51 2,482.26 -0.70481

2005 1273.18 240.1 247.35 2,672.00 -695.58 2,482.26 -0.28022

2006 1854.78 430.72 260.31 4,681.92 -844.62 2,482.26 -0.34026

(vi)Dividend Pay out Ratio:- This ratio indicates as to what proportion of earning per share has been used for paying dividend and what has
been retained for ploughing back. This ratio is very important from shareholders point if view as it tells that if a company has used whole or substantially the whole of its earnings for paying dividend and retained nothing for future growth and expansion purposes, then there will be very dim chances of capital appreciation in the price of shares of such company. In other words, an investor who is more interested in capital appreciation must look for a company having low payout ratio. This is determined as follows:

Dividend Pay out Ratio=DPS/EPS.

YEAR DIVIDEND PER SHARE EARNING PER SHARE DIVIDEND PAY OUT RATIO 2004 -0.7 11.02 -0.0066 2005 -0.28 31.65 -0.00264 2006 -0.34 46.88 -0.00321

(vii)Return on Gross Capital Employed:The term gross capital employed refers to the total investment made in the business and is represented by the total assets, fixed as well as current assets used in the business. The ratio eashtablishes the business b/w earning before interest and taxes and gross capital employed. The conventional approach is to divide earnings before interest and tax by gross capital employed , that is,

Return on Gross Capital Employed=EBIT/Gross Capital*100.

YEAR EARNINGS BEFORE TAX AND INTEREST TOTAL LIABILITIES (-)PRE-OPERATING EXPENSES GROSS CAPITAL RETURN ON GROSS CAPITAL EMPLOYED 2004 718.46 4,438.17 0 4,438.17 0.161882 2005 1273.18 3,681.30 0 3,681.30 0.345851 2006 1854.78 6,171.50 0 6,171.50 0.30054

(viii)Return on Net Capital Employed:- This ratio is an indicator of the earning capacity of the capital employed in the business. This
ratio is considered to be the most important ratio because it reflects the overall efficiency with which capital is used. This ratio is a helpful tool for making capital budgeting decisions, a project yielding higher return is favoured. This ratio is calculated as follows:

Return on Net Capital Employed=EBIT/Net capital Employed*100.

YEAR EARNINGS BEFORE TAX AND INTEREST GROSS CAPITAL (-)NET CURRENT LIABILITIES NET CAPITAL RETURN ON NET CAPITAL EMPLOYED 2004 718.46 4,438.17 2,897.66 2005 1273.18 3,681.30 4,037.35 2006 1854.78 6,171.50 4,460.27

1,540.51 0.46638

-356.05 1,711.23 -3.5758 1.08389

ANNEXURE:BALANCE SHEET OF IPCL:Particulars 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 9,646.89 4,260.96 9,785.77 4,780.77 11,201.77 5,340.47 249.05 249.05 0 0 2,023.07 0 2,272.12 1,190.03 976.02 2,166.05 4,438.17 249.05 249.05 0 0 2,672.00 0 2,921.05 659.85 100.4 760.25 3,681.30 249.05 249.05 39.12 0 4,681.92 0 4,970.09 596.24 605.17 1,201.41 6,171.50 Mar '04 Mar '05 Mar '06

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) 5,385.93 80.66 151.23 773.1 403.29 50.07 1,226.46 491.01 0.54 1,718.01 0 2,768.88 128.78 2,897.66 1,179.65 0 4,438.17 812.01 91.53 5,005.00 58.8 165.33 623.12 701.06 64.24 1,388.42 500.52 600.58 2,489.52 0 3,637.96 399.39 4,037.35 1,547.83 0 3,681.30 602.46 117.68 5,861.30 97.07 179.82 1,226.13 450.48 12.99 1,689.60 1,737.40 1,066.58 4,493.58 0 4,029.54 430.73 4,460.27 33.31 0 6,171.50 577.18 198.65

PROFIT AND LOSS ACCOUNT OF IPCL:Particulars Income Sales Turnover Excise Duty 9,080.46 895.73 9,470.40 1,185.17 12,372.52 1,477.42 Mar '04 Mar '05 Mar '06

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 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

8,184.73 -59.28 -129.59 7,995.86 4,994.84 742.96 389.61 130.5 494.28 32.01 0 6,784.20 1,270.94 1,211.66 381.8 829.86 685.57 21.61 122.68 0 122.68 63.1 273.56 1,789.36 0 62.05 7.95

8,285.23 -32.23 2.92 8,255.92 4,297.64 1,012.01 460.81 206.16 459.66 19.39 0 6,455.67 1,832.48 1,800.25 247.35 1,552.90 505.7 0 1,047.20 4.41 1,051.61 240.1 785.73 2,158.03 0 111.7 15.83

10,895.10 127.51 232.41 11,255.02 6,431.41 1,295.23 454.93 201.88 493.39 81.96 0 8,958.80 2,168.71 2,296.22 260.31 2,035.91 561.49 0.28 1,474.14 114.37 1,588.51 430.72 1,163.75 2,527.39 0 136.52 19.15

Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 2,482.26 11.02 25 91.53 2,482.26 31.65 45 117.68 2,482.26 46.88 55 198.65