A

PROJECT REPORT
ON
STERLITE TECHNOLOGICAL LIMITED

BY
RAVI KANT SHARMA

P.G.D.B.M.-SEMESTER-IV

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMANT

SUBMITTED TO

UNIVERSITY OF PUNE
(2008-10)

PRESTIGE COLLEGE OF MANAGEMENT & TECHNOLOGY

 PROJECT REPORT
(FINANCE)
STERLITE TECHNOLOGICAL LIMITED

(Optical Fiber Division)

FINANCIAL OVERVIEW OF OPTICAL FIBER AND OPTICAL FIBER

CABLE COMPANIES

INTERNATIONAL INSTITUTE OF MANAGEMENT

SCIENCES PUNE

(Post Graduate Management Program)

(Post Graduate Diploma in Business

Management)
 (2008-2010)

Subm
itted by

Ravi
kant Sharma

Roll
Number - 156
 Acknowledgement

I take the opportunity with great pleasure to plot the circle of warm complement
deep sense of gratitude and profound thanks to all those who have spend their
valuable time and given me their cooperation to make project complete.
First of all I would like to express my sincere thanks to my
internal guide ”Mr ashok Gandhi” ,Senior Finance Manager of Strlite optical
technological limited for his efforts, continuos proper guidance ,supervision
and generous co-operation through out the work which enable to present this
project report.

I would be failing in my duty, if I do not express my heartiest

thanks to my lecturer and co-ordinator department for giving all possible
support suggestion and its valuable time in preparing this project report.
Last but not the least I am grateful to my parents and friend
who always encourage to do summer training efficiently and effectively
 Preface
As an essential and obligatory part of my course undergone 45 Days month
complete summer training at STERLITE TECHNOLOGIES LIMITED. This
training helps me in getting practical knowledge into business environment.

I got practical knowledge about STERLITE TECHNOLOGIES

LIMITED. I have more emphasis on training programmed in STERLITE, this
project report give all information about collection, comparative analysis with
rivals and customers companies and recommendation on the basis of financial
data.
In this project report I gave all the information which is not only
serve comprehensive knowledge and reader can easily understand the
fundamental relation about subject.
 Declaration

I Ravi Kant Sharma hereby declare that the project entitled ‘’financial overview
of optical fiber & optical fiber cable companies’’ with STERLTE
TECHNOLOGIES LIMITED which has been personally done by me under the
guidance of Mr .Abhay khulage Head of purchase department in STERLTE
TECHNOLOGIES LIMITED during academic year 2008-2010 all the data
represented in this project is true and correct to the best of my knowledge and
belief. This work has not been submitted for any other degree/diploma exam.
 Objective of summer project:-

1) Collection and comparative analysis of financial data of rivals and

customer companies across India and recommendation
• My first and important objective is to collect all relevant financial
data i.e. (Optical fibre and optical fibre cable companies) and
customer companies i.e. (optical fibre cable and telecom
companies) of India.
• Collection of financial data like:-Balance sheet, Profit and loss a/c,
annual report, Ratio analysis, Raw material description, and
quarterly, half yearly and yearly reports.
• After collection of these data I did comparative analysis Of the
following type of companies:-

• Our company Rivals and customers

• Sterlite Optical fibre cable
technologies(optical companies(customer) an optical
fibre) fibre companies(Rivals)
• Sterlite Optical fibre cable
technologies(OFC) companies(Rivals) and Telecom
companies(Customers)

• Comparative analysis on the basis of ratio analysis, trend analysis

and other financial tactics.
Scope:-

• Comparative analysis of rival and customer companies across

India.
 Company Profile:

• Description:

Sterlite Technologies Limited, formerly Sterlite Optical Technologies Limited, is

an India-based company. The Company is a global manufacturer of wire and
cable solutions for the telecom and power industries. Some of its products
include aluminum conductors (advanced audio coding (AAC)/ aluminum
conductor, steel reinforced (ACSR)), optical fiber, fiber optic fiber, jelly filled
telephone cable and broadband access networks. It is also a provider of
telecommunication cables and power transmission conductors. The Company
sells its telecom and power products in over 60 countries. It offers a range of
end-to-end optical fibers for a variety of applications in telecommunication
networks. The Company also offers a range of structured cables for premise
networks. In addition, it offers a range of end-to-end power conductors for
transmission and distribution in power networks.

• Executive Directors
Executive Chairman - Mr Anil Agarwal

Deputy Executive Chairman1 - Mr Navin Agarwal

Chief Executive Officer2 - Mr M S Mehta
 Comp
anies vision mission and value:

1) Mission: Based on industry and customer requirements, we strive to

develop a portfolio of quality product and solution through the effective
use of information technology and six sigma and a sustain focus on
intellectual property and the environment.

2) Vision: We will be among top three manufacturers in the world by 2010

in terms of market share for all our product line.

3) Values: Excellency creativity, integrity, responsibility and respect.

• PRODUCTS OF STERLITE TECHNOLOGIES LIMITED:

Optical fibers

Fiber optics cable

Copper telecom cables

 Telecom integration and
managed service

OPTICAL FIBERS
An optical fiber (or fibre) is a glass or plastic fiber that carries light along its
length. Fiber optics is the overlap of applied science and engineering
concerned with the design and application of optical fibers. Optical fibers are
widely used in fiber-optic communications, which permits transmission over
longer distances and at higher bandwidths (data rates) than other forms of
communications. Fibers are used instead of metal wires because signals travel
along them with less loss, and they are also immune to electromagnetic
interference. Fibers are also used for illumination, and are wrapped in bundles
so they can be used to carry images, thus allowing viewing in tight spaces.
Specially designed fibers are used for a variety of other applications, including
sensors and fiber lasers.
Light is kept in the core of the optical fiber by total internal reflection. This
causes the fiber to act as a waveguide. Fibers which support many propagation
paths or transverse modes are called multi-mode fibers (MMF), while those
which can only support a single mode are called single-mode fibers (SMF).
Multi-mode fibers generally have a larger core diameter, and are used for
short-distance communication links and for applications where high power must
be transmitted. Single-mode fibers are used for most communication links
longer than 550 metres (1,800 ft).

Optical fibers cable :

An optical fiber cable is a cable containing one or more optical fibers. The
optical fiber elements are typically individually coated with plastic layers and
contained in a protective tube suitable for the environment where the cable will
be deployed
 CABLE TYPES

• OFC: Optical fiber, conductive

• OFN: Optical fiber, nonconductive
• OFCG: Optical fiber, conductive, general use
• OFNG: Optical fiber, nonconductive, general use
• OFCP: Optical fiber, conductive, plenum
• OFNP: Optical fiber, nonconductive, plenum
• OFCR: Optical fiber, conductive, riser
• OFNR: Optical fiber, nonconductive, riser
• OPGW: Optical fiber composite overhead ground wire

SPEED: Fiber optic networks operate at high speeds - up into the gigabits
• BANDWIDTH: large carrying capacity
• DISTANCE: Signals can be transmitted further without needing to be
"refreshed" or strengthened.
• RESISTANCE: Greater resistance to electromagnetic noise such as radios,
motors or other nearby cables.
• MAINTENANCE: Fiber optic cables costs much less to maintain.

• STRETEGIES:
Our core values of growth, entrepreneurship, excellence, trust and
sustainability not only encompass our business philosophy, but also underline
our relationships with all our stakeholders, shape the culture of our company
and guide us in our actions and decisions.
 Integral to our business philosophy
Sustainability is integral to our business philosophy. We see the key drivers of
our approach as being: proactive engagement with our stakeholders; attracting
and retaining the best talent; our provision of a safe and healthy working
environment; our focus on using environmentally friendly technologies in all of
our businesses and our drive to conserve natural resources.

Conservation of natural resources

This is a fundamental aspect of everything we do. We have set ambitious
targets at each of our businesses to use less resources. Our water and energy
conservation performance has been promising and has exceeded our targets in
some instances. This area will continue to be an area of focus in the coming
years.
Our local communities
We believe we have a responsibility to engage with the communities in which
we operate and to foster their social and economic development. These
principles are embedded across the organization and are a key element of our
employee training, development and performance at all levels.
Our people
Our people are our key asset and drive our overall performance. Our vision is
to build a flexible, agile and flat organization with world-class capabilities and a
high-performance culture. Respect for the individual, valuing diversity, fostering
entrepreneurship, ensuring an enabling environment and developing a “can do”
attitude is a way of life at Vedanta.

Health and safety

Vedanta is committed to achieving best practice in health and safety at all of
our sites. Our systems are well established and are regularly reviewed and
 monitored taking into account our own experiences and industry best practice.
Knowledge-sharing around Vedanta’s companies plays an important part in this
process

• Policies:
We aim to:
• Develop, implement and maintain environment management systems aligned
with our commitments and beliefs and consistent with world-class standards;
• Comply as a minimum with all applicable legislative and statutory
requirements;
• Conserve natural resources, raw materials, water and energy by process
improvements, recycling and reducing and re-using waste;
• Seek continual improvements through setting and reviewing targets,
assessing and reporting environmental performance, applying best practices
and providing all employees with relevant training;
• Encourage contractors and suppliers to adopt our principles and practices;
and
• Implement regular health surveillance and risk-based monitoring of
employees.

PEOPLE AND COMMUNITY

Our people and community policies, which are applied across all of our group
companies, are to:
• Be a significant contributor to addressing social needs within the communities
in which we operate;
• Create sustainable partnerships to support our local communities;
• Strive to actively enter into dialogue and engagement with our stakeholders;
• Follow a philosophy of meritocracy. We are committed to ensuring that our
workplaces are free from all forms of discrimination or harassment relating to
age, caste, sex, ethnic origin or religion;
• Manage our businesses in a fair and equitable manner, meeting all our social
responsibilities as a direct and indirect employer and respect the human rights
of all of our stakeholders;
• Have robust processes and systems in place to foster leadership
development, learning and growth and to deliver value to the organization and
society;
• Provide employees with the opportunity to report matters which transgress or
contravene our Code of Conduct;
• Ensure that our supplier and customer relationships are conducted in a fair,
proper and transparent manner;
• Strive to achieve and drive forward industry best practice in our social
stewardship;
• Be a responsible and good neighbor; and
• Align our activities with the principles in the Convention on the Rights of the
Child of the United Nations and Convention 138 of the International Labor
Organization

Research methodology:
For carrying out the study of this particular topic the data has been collected
basically by two major sources these are:
 (a)Primary sources:-
Primary source consist of the basic information collected from staff
people of various department, the officers as well as managers of Sterlite
technology limited. It has been collected by consulting.
(B)Secondary sources:-

Secondary sources consist of the data and information collected

are annual reports, balance sheet, profit and loss a/c, ratio analysis, Quarter-
half yearly reports, from magazines , journal & from internet .
But at the time of collecting data I felt that internet and books these
two sources is most effective source to collect information about all the
companies.

Data interpretation:

Tools and Techniques of Financial Statement Analysis:

Following are the most important tools and techniques of financial statement
analysis:
1. Horizontal and Vertical Analysis
 2. Ratios Analysis

1. Horizontal and Vertical Analysis:

Horizontal Analysis or Trend Analysis:
Comparison of two or more year's financial data is known as horizontal
analysis, or trend analysis. Horizontal analysis is facilitated by showing
changes between years in both dollar and percentage form.
Trend Percentage:
Horizontal analysis of financial statements can also be carried out by
computing trend percentages. Trend percentage states several years'
financial data in terms of a base year. The base year equals 100%, with all
other years stated in some percentage of this base.
Vertical Analysis:
Vertical analysis is the procedure of preparing and presenting common size
statements. Common size statement is one that shows the items appearing
on it in percentage form as well as in dollar form. Each item is stated as a
percentage of some total of which that item is a part. Key financial changes and
trends can be highlighted by the use of common size statements.

2. Ratios Analysis:
Accounting Ratios Definition, Advantages, Classification and Limitations:
The ratios analysis is the most powerful tool of financial statement analysis.
Ratios simply means one number expressed in terms of another. A ratio is a
statistical yardstick by means of which relationship between two or various
figures can be compared or measured. Ratios can be found out by dividing one
number by another number. Ratios show how one number is related to
another.

Profitability Ratios:
Profitability ratios measure the results of business operations or overall
performance and effectiveness of the firm. Some of the most popular
profitability ratios are as under:
 • Return on equity
capital
• Gross profit ratio • Return on capital
• Net profit ratio employed

• Operating ratio • Dividend yield ratio

• Expense ratio • Dividend payout

ratio
• Return on
shareholders • Earnings Per
investment or net Share Ratio
worth

Liquidity Ratios:
Liquidity ratios These are the ratios which measure the short term solvency of
financial position of a firm. These ratios are calculated to comment upon the
short term paying capacity of a concern or the firm's ability to meet its current
obligations. Following are the most important liquidity ratios.
Current ratio
Liquid / Acid test / Quick ratio
Activity Ratios:
Activity ratios are calculated to measure the efficiency with which the resources
of a firm have been employed. These ratios are also called turnover ratios
because they indicate the speed with which assets are being turned over into
sales. Following are the most important activity ratios:
• Inventory / Stock turnover ratio
• Debtors / Receivables turnover ratio
• Average collection period
• Creditors / Payable turnover ratio
• Working capital turnover ratio
• Fixed assets turnover ratio
 • Over and under trading

Long Term Solvency or Leverage Ratios:

Long term solvency or leverage ratios convey a firm's ability to meet the
interest costs and payment schedules of its long term obligations. Following are
some of the most important long term solvency of leverage ratios.
• Debt-to-equity ratio
• Proprietary or Equity ratio
• Ratio of fixed assets to shareholders funds
• Ratio of current assets to shareholders funds
• Interest coverage ratio
• Capital gearing ratio

PROFITABILITY RATIOS OF OPTICAL FIBER CABLE

COMPANIES:

a)Gross profit ratio: Gross profit ratio (GP ratio) is the ratio of
gross profit to net sales expressed as a percentage. It expresses
the relationship between gross profit and sales.

Formula:

Gross profit ratio = (Gross profit / Net sales) × 100

 companies 2004 2005 2006 2007
Beol -27.78 8.7 5.89 2.5
HFCL -33.78 -22.19 -49.82 13.22
paramount 15.15 21.65 18.70 3.80
sterlite -46.09 11.32 9.51 7.29
Tvs -12.11 3.64 -12.12 -11.29
UM 11.43 13.08 15.01 14.46
Uniflex -28.9 -60.98 -19.5 11.73
Universa; -1.14 6.62 11.31 11.34
VTL -8.65 4.51 4.54 9.62

Net Profit Ratio (NP Ratio):

Definition of net profit ratio:
Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed
as percentage.The two basic components of the net profit ratio are the net
profit and sales. The net profits are obtained after deducting income-tax and,
generally, non-operating expenses and incomes are excluded from the net
profits for calculating this ratio

Companies 2004 2005 2006 2007 2008

BEOL -45.49 1.02 2.45 -1.13 0.71
HFCL -35.2 -39 -121.88 9.79 -44.03
Paramount 7.49 12.09 11.00 1.29 0.14
sterlite -19.82 3.1 7.37 4.2 5.94
TVS -38.72 -33.17 -28.12 -37.07 22.53
UM 1.95 3.43 5.23 7.19 8.68
Uniflex -35.46 -74.82 60.27 79.69 -7.23

Operating Ratio:
Definition:
Operating ratio is the ratio of cost of goods sold plus operating expenses to
net sales. It is generally expressed in percentage. It measures the cost of
operations per dollar of sales. This is closely related to the ratio of operating
profit to net sales. Operating expenses normally include (a) administrative and
office expenses and (b) selling and distribution expenses. Financial charges
such as interest, provision for taxation etc. are generally excluded from
operating expenses

• Operating ratio = (Operating cost / Net sales) × 100

Companies 2004 2005 2006 2007 2008
BEOL -52.63 -3.5 2.33 -2.84 2.42
HFCL -22.27 -17.54 -47.72 15.92 -16.58
Paramount 5.88 5.36
16.55 22.79 19.94
Sterlite -38.65 13.27 11.59 9.62 12.3
TVS -3.02 7.79 -5.11 -6.68 -0.03
UM 20.73 19.02 20.7 19.51 19.63
Uniflex -15.22 -41.64 -19.76 19.58 2.41
Universal 0.48 8.5 12.34 12.64 10.82
VTL -24.24 -5.8 0.97 -1.91 1.2
Return on Shareholders Investment or Net Worth Ratio:
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. The two basic components of this
ratio are net profits and shareholder's funds. Shareholder's funds include equity
share capital, (preference share capital) and all reserves and surplus belonging
to shareholders.
[Return on share holder's investment = {Net profit (after interest and tax) /
Share holder's fund} × 100]
 Companies 2004 2005 2006 2007 2008
BEOL -15.14 1.05 3.2 -0.92 1.34
HFCL -17.55 -13.12 -25.9 16.95 -38.58
Paramount 3.44 0.52
15.35 22.53 39.74
sterlite -7.56 3.92 12.28 12.21 18.66
TVS -13.11 -27.7 -19.4 -22.46 13.78
UM 3.63 9.07 10.98 14.07 16.76
Uniflex 4.67 11.3 8.9 7.9 -19.19
Universal -4.55 4.2 11.69 13.97 10.29
VTL -5.22 0.19 0.59 1.3 1.26

Return on Capital Employed Ratio (ROCE Ratio):

Capital employed and operating profits are the main items. Capital employed
may be defined in a number of ways. However, two widely accepted definitions
are "gross capital employed" and "net capital employed". Gross capital
employed usually means the total assets, fixed as well as current, used in
business, while net capital employed refers to total assets minus liabilities. On
the other hand, it refers to total of capital, capital reserves, revenue reserves
(including profit and loss account balance), debentures and long term loans.
[Return on Capital Employed=(Adjusted net profits*/Capital
employed)×100]

2004 2005 2006 2007 2008

 BEOL -7.51 1.46 0.86 -1.88 2.86
HFCL -7.59 -4.45 -29.64 9.46 -5.15
PARAMOUNT 18.37 23.34 57.68 10.19 6.21
STERLITE -13.77 5.18 6.5 8.8 15.02
TVS -3.93 -0.6 -6.54 -6 -6.17
UM 7.59 12.33 14.65 13.78 14.04
UNIFLEX -19.83 -27.8 -23.79 3.54 1.91
UNIVERSAL -1.79 8.41 16.85 16.36 13.42
VTL -2.79 0.5 0.84 0.88 2.25

Definition::Earnings Per Share (EPS) Ratio:

Earnings per share ratio (EPS Ratio) is a small variation of return on equity
capital ratio and is calculated by dividing the net profit after taxes and
preference dividend by the total number of equity shares.
[Earnings per share (EPS) Ratio = (Net profit after tax − Preference
dividend) / No. of equity shares (common shares)]
Companies 2004 2005 2006 2007 2008
BEOL -3.34 0.23 0.74 -0.21 0.31
HFCL -8.47 -5.15 - 2.53 -3.5
26.41
Paramount 3.53 4.41 19.42 1.09 0.15
Sterlite -3.38 1.83 6.93 8.26 15.62
Tvs - - - - 14.93
28.64 32.95 22.18 20.97
Um 4.19 11.04 14.68 21.2 5.79
Uniflex - - 17.29 17.01 -3.69
22.44 18.26
Universal -2.08 1.96 8.27 9.5 7.46
Vtl -9.65 0.36 1.09 2.46 2.42
 LIQUIDITY RATIOS OF OPTICAL FIBER CABLE COMPANIES:
Current Ratio:
Definition:
Current ratio may be defined as the relationship between current assets and
current liabilities. This ratio is also known as "working capital ratio". It is a
measure of general liquidity and is most widely used to make the analysis for
short term financial position or liquidity of a firm. It is calculated by dividing the
total of the current assets by total of the current liabilities.

[Current Ratio = Current Assets / Current Liabilities]

Companie 2004 2005 2006 2007 2008
s
BEOL 8.63 6.41 3.47 2.9 1.71
HFCL 1.71 1.49 1.25 1.63 1.26
Paramoun
t 3.40 4.57 2.46 1.79 1.94
sterlite 0.76 0.83 0.76 0.69 0.65
tvs 1.39 0.45 0.58 0.39 0.45
Um 0.96 0.85 1.05 0.85 0.92
uniflex 0.63 0.29 0.23 5.42 13.7
2
Universal 0.86 0.86 1.14 1.12 0.89
Vtl 3.6 3.16 3.44 3.09 2.28
Liquid or Liquidity or Acid Test or Quick Ratio:
Definition:
Liquid ratio is also termed as "Liquidity Ratio", "Acid Test Ratio" or "Quick
Ratio". It is the ratio of liquid assets to current liabilities. The true liquidity refers
to the ability of a firm to pay its short term obligations as and when they
become due.
[Liquid Ratio = Liquid Assets / Current Liabilities]

Companies 2004 2005 2006 2007

BEOL 5.77 5 4.4 3.86
HFCL 2.86 2.95 1.78 2.81
Paramou 1.70 2.90 1.36 0.71
sterlite 0.72 0.83 1.69 2.13
tvs 5.21 1.65 1.66 1.19
um 0.93 0.9 0.78 0.65
uniflex 0.83 0.99 1.04 7.99
Universal 1.25 1.31 1.42 1.13
vtl 9.91 6.87 5.61 5.18
Debtors Turnover Ratio | Accounts Receivable Turnover Ratio:

Debtors turnover ratio or accounts receivable turnover ratio:

indicates the velocity of debt collection of a firm. In simple words it indicates
the number of times average debtors (receivable) are turned over during a
year.
[Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors]
 Companie 2004 2005 2006 2007 2008
s
BEOL 1.38 6.88 8.02 5.11 6.58
HFCL 1.25 0.85 1.51 1.7 0.47
Paramou 0 0 0 0 0
sterlite 4.09 5.55 4.33 4.11 3.54
tvs 0.93 1.74 2.93 1.94 2.46
um 3.49 4.19 4.73 4.16 3.87
uniflex 3.8 3.32 5.79 3.27 4.83
Universal 7.36 6.91 6.95 6.94 6.86
vtl 1.43 5.25 5.73 2.7 10.8
3

Fixed Assets Turnover Ratio:

Definition:
Fixed assets turnover ratio is also known as sales to fixed assets ratio. This
ratio measures the efficiency and profit earning capacity of the concern. Higher
the ratio, greater is the intensive utilization of fixed assets. Lower ratio means
under-utilization of fixed assets. The ratio is calculated by using following
formula:
Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets
Companies 2004 2005 2006 2007 2008
BEOL 0.52 1.86 2.83 1.8 1.25
HFCL 2.1 1.15 2.44 4.11 0.75
Paramou 126.23 54.08 29.21 25.81 27.27
sterlite 0.24 1 1.83 3.1 1.83
Tvs 0.85 1.19 1.28 0.92 0.65
Um 0.88 1.32 1.33 1.32 0.99

LEVERAGE
RATIO FOR OPTICAL FIBER CABLE COMPANIES:
Debt to Equity Ratio
Debt-to-Equity ratio indicates the relationship between the external equities or
outsiders funds and the internal equities or shareholders funds. It is also known
as external internal equity ratio. It is determined to ascertain soundness of
the long term financial policies of the company.
[De
bt Equity 2004 2005 2006 2007 2008
Ratio = BEOL 0.78 0.55 0.56 0.53 0.63
External
HFCL 0.66 0.82 4.1 1.88 3.03
Equities /
Internal PARAMOUNT 0.19
Equities] 0.86 0.77 0.19 0.25
STERLITE 0.67 0.56 0.73 1.42 1.23
TVS 2.05 1.83 1.18 1.04 1.09
UM 2.05 1.83 1.18 1.04 1.09
UNIFLEX -- -- 1.907 2.47 1.77
UNIVERSAL 0.47 0.71 0.38 0.63 0.87

Debt Service Ratio or Interest Coverage Ratio:

Interest coverage ratio is also known as debt service ratio or debt service
coverage ratio. This ratio relates the fixed interest charges to the income
earned by the business. It indicates whether the business has earned sufficien
profits to pay periodically the interest charges. It is calculated by using the
following formula.

Companie 2004 2005 2006 2007 2008

s
BEOL - 9.34 3.72 -5.26 1.6
17.3
6
HFCL -1.75 -1.77 - 4.78 -1.27
20.9
1
Paramou 0 0 0 0 0
Sterlite -3.94 2.01 2.76 2.64 4.07
Tvs -1.28 -0.17 -1.68 -1.43 -1.02
Um 1.23 2.11 2.35 2.63 3.03
Uniflex -1.37 -2.25 - 1.09 0.22
18.8
3
Universal -0.85 3.33 6.61 6.3 2.85
Vtl - 2.4 3.2 78.0 2.18
24.6 5
9
 Other financial data
There are some other but very important financial data also which I also
Had to look for

COMPANY D-U-N-S
NAME COMPANY TYPE WEB SITE ADDRESS CONTACT NUMBER NUMBER

Dana
Holding
Corporatio Public Phone: 419- 80910535
n Headquarter www.dana.com
Dana Holdin 535-4500 1
P.O.box Toll Free: 800-
1000 472-8810
Toledo,Ohi Fax: 419-535-
o 43697 4643
 CASH FLOW STATEMENT

Dec-08 Dec-07 Dec-06

Net operating cash flow -1019 -52 52

Net investing cash flow -144 348 -71
Net financing cash flow 705 166 -49
Net change in cash -454 462 -68
Depreciation & Amortization 66
Capital expenditure -250 -254 -314
Cash dividends paid 18

HISTORICAL FINANCIAL DATA

YEAR REVENUE(MIL.$) NET NET PROFIT EMPLOYEE

INCOME(MIL. $) MARGIN

Dec-08 8095 18 0.20% 29000

Dec-07 8721 -551 35000
Dec-06 8504 -739 45000
Dec-05 8611 -1609 44000
Dec-04 9056 82 0.90% 45900
Dec-03 7918 222 2.80% 59000
Dec-02 9504 38 0.40% 60900
Dec-01 10271 -298 70000

PRODUCT

Automotive

Axles Conclusion on the

Chassis basis of data
Driveshafts interpretation:
Engine sealing products
Steering and suspension components  As an a
Structural products customer
Thermal management products UM ,Universal
Commercial Vehicle and sterlite
these three
Axles doing better
Brakes business, so we
Chassis and suspension modules
Driveshafts can easily
Engine sealing products recover our
Thermal management products credit amount
from them.
Off-Highway
 And as an
Axles competitor UM
Brakes
Driveshafts
and Universal
Electronic controls both the
companies will
have capacity to
capture more
market share of
Sterlite so, Sterlite will have to do something different so, that they will be
a market leader.

OBESERVATION AND FINDING:

 After calculating all the ratios of optical fiber companies I get to know that
following companies performing well in their respective area:
FINDINGS:
1) POSITIVE FINDING
✔ As an a customer UM ,Universal and sterlite these three
companies doing well business, so we can easily recover our
credit amount from them means Sterlite technologies
limited manufacturer of optical fiber can recover credit
amount easily or as early as possible.
2)NEGATIVE FINDING:
✔ And as an competitor UM and Universal both the companies
will have capacity to capture more market share of Sterlite.
✔ Other companies like TVS, UNIFLEX and PARAMOUNT are
also showing significant improvement in their respective
business but still they have to work hard to achieve highest
position in their area. On the basis of financial data I get to
know that these companies are small competitors for
STERLITE and we can not easily collect our credit amount
from them
OBESERVATIONS:
✔ Sterlite technology is performing well in his respective area of
optical fiber and optical fiber cable manufacturing.
✔ On the basis of my observation I get to know that Sterlite
technologies limited exports is near by domestic transaction
means his domestic transaction is 53% and his exports is
47%.
✔ Most of the vendors of Sterlite technology limited are foreign
companies.
✔ All the employees of Sterlite technologies limited are only
professional.
✔ Daily interactions with foreign people and companies to
expand his business well.
 ✔ My observation in that company related to financial data
management is as follows:
 Well management of sale data which is called as
a ANTI DUMPING DATA
 Well management of fund which is called as a
FUND INVOLVEMENT DATA from that we get to
know that what is budgeted fund and what is
actual fund spend for all the thing like; WIP, RAW
MATERIAL,STORES,MATERIAL IN TRANSIT
etc.

Particulars Budgeted Actual

Finish goods
WIP
Raw material
Stores
Materila in transit
TOTAL INNVENTORY
Debtor
Loans and advances
Tax
GROSS
INVOLVEMENT
Total liability
 NET INVOLVEMENT
• Allocation of apportionment of expenditure from that we get to know
profit and loss of that particular year.

Particular Amount
Raw Material
Labour
Manufacturing OH
Administration OH
Selling and distribution
Depreciation
Financial expenses
Other miscellaneous expenses
TOTAL EXPENSES(1)
Sales
Other Income
TOTAL INCOME(2)
PROFIT AND LOSS(2-1)
• Then the monthly summery Of domestic and exports transaction so it is
easy to understand that monthly expenses

Name Qty Sum of Sum of cess Sum of Sum of central

excise education sales tax
cess
Domestic - - - - - -
IUT - - - - - -
Sample - - - - - -
domestic
Scrap - - - - - -
Exports - - - - - -
Sample - - - - - -
Limitations of Ratios Analysis:
The ratios analysis is one of the most powerful tools of financial management.
Though ratios are simple to calculate and easy to understand, they suffer from
serious limitations.
1. Limitations of financial statements: Ratios are based only on the
information which has been recorded in the financial statements.
Financial statements themselves are subject to several limitations. Thus
ratios derived, there from, are also subject to those limitations. For
example, non-financial changes though important for the business are not
relevant by the financial statements. Financial statements are affected to
a very great extent by accounting conventions and concepts. Personal
judgment plays a great part in determining the figures for financial
statements.
2. Comparative study required: Ratios are useful in judging the efficiency
of the business only when they are compared with past results of the
business. However, such a comparison only provide glimpse of the past
performance and forecasts for future may not prove correct since several
other factors like market conditions, management policies, etc. may affect
the future operations.
3. Ratios alone are not adequate: Ratios are only indicators, they cannot be
taken as final regarding good or bad financial position of the business.
Other things have also to be seen.
4. Problems of price level changes: A change in price level can affect the
validity of ratios calculated for different time periods. In such a case the
ratio analysis may not clearly indicate the trend in solvency and
profitability of the company. The financial statements, therefore, be
adjusted keeping in view the price level changes if a meaningful
comparison is to be made through accounting ratios.
5. Lack of adequate standard: No fixed standard can be laid down for ideal
ratios. There are no well accepted standards or rule of thumb for all ratios
 which can be accepted as norm. It renders interpretation of the ratios
difficult.
6. Limited use of single ratios: A single ratio, usually, does not convey
much of a sense. To make a better interpretation, a number of ratios
have to be calculated which is likely to confuse the analyst than help him
in making any good decision.
7. Personal bias: Ratios are only means of financial analysis and not an
end in itself. Ratios have to interpreted and different people may interpret
the same ratio in different way.
8. Incomparable: Not only industries differ in their nature, but also the firms
of the similar business widely differ in their size and accounting
procedures etc. It makes comparison of ratios difficult and misleading.
Limitation:

1) The study was limited to the particular sector

2) Time and resource constraint.
3) It has not been possible to get personal interview with the top
management employees of all optical fiber and optical fiber cable
companies.