FINANCIAL ANALYSIS OF INDIA INFOLINE LTD

SUMMER INTERNSHIP PROJECT REPORT

PRATIK DAS
SEC-B
UNITEDWORLD SCHOOL OF
BUSINESS,KOLKATA

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ACKNOWLEDGEMENT

First of all, I would like to thank the Management of INDIA INFOLINE LTD for giving me the
opportunity to do my two-month Summer Internship Project Training in their renowned
organization. I am highly obliged to MD. JAVED HARUN (Sr.Branch Manager) for granting
me to undertake my training at KOLKATA Shakespeare sarani Zonal office.

I am also grateful to my training supervisor MR.SAJAL OJHA (team leader) from INDIA
INFOLINE & MR.SANDIP BHOGAL (Faculty Guide) from United World School of
Business under whose able guidance & direction, I was able to give shape to my training. His
constant review & excellent suggestions throughout the project are highly commendable.

My heartfelt thanks go to all the executives who helped me to gain knowledge about the actual
working & the processes involved in the various steps of the project.

I thank to my project friends who were so helpful in carrying out my project work.

Finally, I thank my family members for their support & encouragement.

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DECLARATION

I, Pratik Das, hereby declare that project entitled FINANCIAL ANALYSIS OF INDIA
INFOLINE submitted in the partial fulfillment of the Post Graduate Program in Management ,
is of my own work.

I further declare that all the facts and figures furnished in this project report are true
and fair.

This report is based on our personal opinion hence cannot be referred to legal
purpose.

SUBMITTED BY:PRATIK DAS

STUDENT ID: 010102021
SECTION: B
UNITEDWORLD SCHOOL OF BUSINESS

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PREFACE
Decision making is a fundamental part of the analytical process. Decisions regarding that
what you want to do, how you want to do, what tools and techniques must be used for the
successful completion of the project. In fact it is the analysts efficiency as a decision maker that
makes project fruitful for those who concern to the area of study. Basically when we are playing
with computer in every part of life, I used it in my project not for the ease of my but for the ease
of result explanation to those who will read this project. The project presents the financial analysis
of India Infoline ltd.I had toiled to achieve the goals desired. Being a neophyte in this highly
competitive World of business, I had come across several difficulties to make the objectives a
reality. My research project Financial analysis of India infoline Ltd. is based on Study
conducted by me under the guidance of Md Javed Harun and Sandip Bhogal.
I believe that my project report will have been very helpful to the Practical knowledge in
the field of financial analysis of any organization. This includes the following:
1. The executive summary which gives the brief description about the work. And what basically is
done in the assigned project work.
2. Preface also comprises of the company profile of India Infoline Ltd, Which includes detailed
information about the company.
3. third chapter it includes the introduction to the topic, which clearly explains about the
topic upon which work is done.
4. Fourth chapter includes Objective of the project which is being considered for
accomplishment of the project work.
5- Fifth chapter include the research methodology applied for conducting the research work it also
include the limitation of the study.
6. Sixth chapter include summary of the financial position of India Infoline ltd.
7. Seventh chapter covers the analysis and interpretation of the gathered data through ratio
analysis and cash flow analysis.
8 Findings count for the eighth chapter of the project report, which explains the outcome of
interpreted data.
9. Suggestion and recommendation covers the forwarded measures that should be adopted by the
company to make strong its financial analysis.
10.Preface also include conclusion, which explains what actually being concluded from the
project work after analysis and interpretation of the data.
.
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TABLE OF CONTENT

PARTICULAR

PAGE
NO.

1. EXECUTIVE SUMMARY

2. COMPANY PROFILE

3. INTRODUCTION

13

4. OBJECTIVE OF STUDY

23

5.

23

RESEARCH METHODOLOGY

6. FINANCIAL POSITION OF INDIA INFOLINE LTD.

24

7. DATA ANALYSIS & INTERPRETATION

34

8. FINDINGS

46

9. SUGGESTION & RECOMMENDATION

48

10. CONCLUSION

49

11. BIBLOGRAPHY

50

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EXECUTIVE SUMMERY
The project is to study the financial health of India Infoline Ltd.India Infoline Ltd has rapidly
grown over the last few years and a company where leaders like Mr. Nirmal Jain are present.
Through this report, I try and analyze the financial environment in which India Infoline
Ltd is operating. Through a thorough financial analysis, my aim to understand the financial
factors is influencing the company and its decision making. Later, I try and evaluate the various
ratios to appreciate their impact on companys performance. Critical decisions of distributing
dividends, Issue of bonus Debentures and other current news are analyzed and their impact on the
bottom line of the company is assessed.
Finally, I study ratio analysis and cash flow analysis of the company to analyzing the financial
position.

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COMPANY PROFILE

India Infoline was founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an
independent business research and information provider. We gradually evolved into a one-stop
financial services solutions provider. Our strong management team comprises competent and
dedicated professionals
We are a pan-India financial services organization across 1,361 business locations and a presence
in 428 cities. Our global footprint extends across geographies with offices in New York,
Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the National
Stock Exchange (NSE).
We offer a wide range of services and products comprising broking (retail and institutional
equities and commodities), wealth management, credit and finance, insurance, asset management
and investment banking.
Vision Statement:
Our vision is to be the most respected company in the financial
services space.
India Infoline Group :
The India Infoline group, comprising the holding company, India infoline limited and its whollyowned subsidiaries, straddle the entire financial services space with offerings ranging from
equity research, equities and derivatives trading, commodities trading, portfolio management
services, mutual funds, life insurance, fixed deposits, GOI bonds and other small savings
instruments to loan products and investment banking. India Infoline also owns and manages the
websites www.indiainfoline.com and www.5paisa.com the company has a network of over 2100
business locations (branches and sub-brokers) spread across more than 450 cities and towns. The
group caters to approximately a million customers. India Infoline are registered with the BSE
and the NSE for securities trading, MCX, NCDEX and DGCX for commodities trading, CDSL
and NSDL as depository participants. We are registered as a Category I merchant banker and are
a SEBI registered portfolio manager. We also received the FII license in IIFL Inc. IIFL
Securities Pte Ltd received approval from the Monetary Authority of Singapore to carry out
corporate advisory and dealing in securities operations. Two subsidiaries India Infoline
Investment Services and Moneyline Credit Limited are registered with RBI as non-deposit
taking non-banking financial services companies. India infoline Housing Finance Ltd, the
housing finance arm, is registered with the National Housing Bank.

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Board of Directors
Mr. Nirmal Jain
Chairman & Managing Director
Mr. R. Venkataraman
Executive Director
Mr. Sat Pal Khattar
Non Executive Director
Mr. Nilesh Vikamsey
Independent Director
Mr. Kranti Sinha
Independent Director
Mr. A.K. Purwar
Independent Director

Committee of Board
Audit Committee
Mr. Nilesh Vikamsey, Chairman
Mr. Sat Pal Khattar
Mr. Kranti Sinha
Compensation/ Remuneration
Committee
Mr. Kranti Sinha, Chairman
Mr. Nilesh Vikamsey
Mr. Sat Pal Khattar

Share Transfer and Investor

Grievance Committee
Mr. Kranti Sinha, Chairman
Mr. Nirmal Jain
Mr. R. Venkataraman
Chief Financial Officer
Mr. Kapil Krishan
Company Secretary
Ms. Falguni Sanghvi

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Core Management Team

Mr. Bharat Parajia
MD, IIFL (Asia) Pte Ltd
Mr. Apul Nayyar
CEO, Moneyline Credit Ltd
Mr. Karan Bhagat
CEO, IIFL Wealth Management Ltd
Mr. H. Nemkumar
President, Institutional Equities
Mr. Aniruddha Dange
Head of Research, Institutional Equities
Mr. Vasudev Jagannath
Head of Sales, Institutional Equities
Mr. Ajit Menon
President, Investment Banking
Mr. Donald D'Souza
President, Investment Banking
Mr. Sateesh Kumar
President, Insurance
Mr. Deepesh Pandey
Co-head, Investments, IIFL Capital Pte Ltd
Mr. Manish Srivastava
Co-head, Investments, IIFL Capital Pte Ltd
Mr. R. Mohan
Chief Compliance Officer
Mr. Narendra Jain
Chief Operating Officer

Registrar and Share Transfer Agents

Link Intime India Pvt. Ltd
C-13, Pannalal Silk Mills Compound,
L.B.S. Marg, Bhandup (West),
Mumbai - 400 078.

Registered Office
Building No. 75, Nirlon Complex,
Off: Western Express Highway,
Goregaon (East), Mumbai - 400 063.

Auditors
M/s Sharp & Tannan Associates
Chartered Accountants

Internal Auditors
M/s Kalyaniwalla & Mistry
Chartered Accountants
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Bankers

Allahabad Bank
Axis Bank Ltd
Bank of Baroda
Citibank N.A.
HDFC Bank Ltd
The Hongkong and Shanghai Banking
Corporation Ltd
ICICI Bank Ltd
Kotak Mahindra Bank Ltd
Punjab National Bank
Standard Chartered Bank
State Bank of India
State Bank of Travancore
UCO Bank
Union Bank of India
Yes Bank Ltd

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Company Structure
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both
the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and
Portfolio Management Services. It offers broking services in the Cash and Derivatives segments
of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the equities
market. It has recently launched its Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These
services are offered to clients as different schemes, which are based on differing investment
strategies made to reflect the varied risk-return preferences of clients.

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As on March 31, 2009, your Companys subsidiaries and step down

Subsidiaries are as follows
I.
II.

India Infoline Investment Services Limited

Moneyline Credit Limited India Infoline Distribution Company Limited

III.

India Infoline Housing Finance Limited

IV.

India Infoline Marketing Services Limited

V.

India Infoline Insurance Services Limited

VI.

India Infoline Insurance Brokers Limited

VII.
VIII.
IX.
X.
XI.
XII.

India Infoline Commodities Limited

India Infoline Media and Research Services Limited
IIFL Realty Limited
IIFL Wealth Management Limited
IIFL Ventures Limited
IIFL Capital Limited

XIII.

India Infoline Commodities DMCC

XIV.

IIFL (Asia) Pte Limited

XV.

IFL Capital Pte Limited

XVI.
XVII.

IIFL Securities Pte Limited

IIFL Inc

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Companys philosophy on Corporate Governance

The India Infoline Group is committed to placing the Investor First, by continuously striving to
increase the efficiency of the operations as well as the systems and processes for use of corporate
resources in such a way so as to maximize the value to the stakeholders. The Group aims at
achieving not only the highest possible standards of legal and regulatory compliances, but also of
effective management.
Audit Committee
Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr Nilesh Vikamsey, Chairman of the Committee, Mr Sat Pal Khattar, Mr Sanjiv
Ahuja and Mr Kranti Sinha, three of whom are independent Directors. The Managing Director,
the Executive Director along with the Statutory and Internal Auditors are invitees to the Meeting.
The Terms of reference of this committee are as under: - To investigate into any matter that may
be prescribed under the provisions of Section 292A of The Companies Act, 1956 Recommendation and removal of External Auditor and fixation of the Audit Fees. - Reviewing
with the management the financial statements before submission of the same to the Board. Overseeing of Companys financial reporting process and disclosure of its financial information.
- Reviewing the Adequacy of the Internal Audit Function.
Compensation/ Remuneration Committee
Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr Sanjiv Ahuja, Chairman of the Committee, Mr Nilesh
Vikamsey and Mr Kranti Sinha, all of whom are independent Directors. The Terms of reference
of this committee are as under: - To fix suitable remuneration package of all the Executive
Directors and Non Executive Directors, Senior Employees and officers i.e. Salary, perquisites,
bonuses, stock options, pensions etc. - Determination of the fixed component and performance
linked incentives alongwith the performance criteria to all employees of the company - Service
Contracts, Notice Period, Severance Fees of Directors and employees. - Stock Option details:
whether to be issued at discount as well as the period over which to be accrued and over which
exercisable. - To conduct discussions with the HR department and form suitable remuneration
policies.
Share Transfer and Investor Grievance Committee
Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other Members of
the committee are Mr Sanjiv Ahuja, Independent Director and Mr R Venkataraman, Executive
Director. Ms Komal Parikh, Company Secretary is the Compliance Officer of the Company.

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INTRODUCTION
Meaning of Financial Statement
Financial statements refer to such statements which contains financial information about an
enterprise. They report profitability and the financial position of the business at the end of
accounting period. The team financial statement includes at least two statements which the
accountant prepares at the end of an accounting period. The two statements are: The Balance Sheet
Profit And Loss Account
They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit and Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred during
the year. Thus the financial statement provides a summarized view of financial position and
operations of a firm
Meaning of Financial Analysis
The first task of financial analysis is to select the information relevant to the decision
under consideration to the total information contained in the financial statement. The
second step is to arrange the information in a way to highlight significant relationship. The final
step is interpretation and drawing of inference and conclusions. Financial statement is the
process of selection, relation and evaluation.
Features of Financial Analysis
1.To present a complex data contained in the financial statement in simple and
understandable form.
2.To classify the items contained in the financial statement inconvenient and rational
groups.
3.To make comparison between various groups to draw various conclusions.
Purpose of Analysis of financial statements
1. To know the earning capacity or profitability.
2. To know the solvency.
3. To know the financial strengths.
4. To know the capability of payment of interest & dividends.
5. To make comparative study with other firms.
6. To know the trend of business.
7. To know the efficiency of mgt.
8. To provide useful information to mgt

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Procedure of Financial Statement Analysis

Analyzing financial statements involves evaluating three characteristics of a company. Its
liquidity, its profitability, and its insolvency. A short- term creditor, such as a bank, is primarily
interested in the ability of the borrower to pay obligations when they come due. The liquidity of
the borrower is extremely important in evaluating the safety of a loan. A long-term creditor, such
as a bondholder, however, looks to profitability and solvency measures that indicate the
companys ability to survive over a long period of time. Long- term creditors consider such
measures as the amount of debt in the companys capital structure and its ability to meet interest
payments. Similarly, stockholders are interested in the profitability and solvency of the company.
They want to assess the likelihood of dividends and the growth potential of the stock.
1. Intra-company basis.
This basis compares an item or financial relationship within a company in the current year with
the same item or relationship in one or more prior years. For example, Sears,Roebuck and Co. can
compare its cash balance at the end of the current year with last years balance to find the amount
of the increase or decrease. Likewise, Sears can compare the percentage of cash to current assets
at the end of the current year with the percentage in one or more prior years. Intra-company
comparisons are useful in detecting changes in financial relationships and significant trends.
2. Industry averages.
This basis compare an item or financial relationship of a company with industry averages
(or norms) published by financial ratings organizations such as Dun & Bradstreet, Moodys
and Standard & Poors. For example, Searss net income can be compared with the average
net income of all companies in the retail chain-store industry. Comparisons with industry
averages provide information as to a companys relative performance within the industry.
3. Intercompany basis.
This basis compares an item or financial relationship of one company with the same item
or relationship in one or more competing companies. The comparisons are made on the basis
of the published financial statements of the individual companies. For example, Searss
total sales for the year can be compared with the total sales of its major competitors such
as Kmart and Wal-Mart. Intercompany comparisons are useful in determining a companys
competitive position

Tool s of Financial Statement Analysis

Various tools are used to evaluate the significance of financial statement data. Three
commonly used tools are these:
1. Ratio Analysis
2. Funds Flow Analysis
3. Cash Flow Analysis

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Ratio Analysis:
Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative)
factors of a company. The other side considers tangible and measurable factors (quantitative).
This means crunching and analyzing numbers from the financial statements. If used in
conjunction with other methods, quantitative analysis can produce excellent results. Ratio
analysis isn't just comparing different numbers from the balance sheet, income statement,
and cash flow statement. It's comparing the number against previous years, other companies, the
industry, or even the economy in general. Ratios look at the relationships between
individual values and relate them to how a company has performed in the past, and might
perform in the future.
Meaning of Ratio:
A ratio is one figure express in terms of another figure. It is a mathematical yardstick that
measures the relationship two figures, which are related to each other and mutually inter
dependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an
expression relating one number to another. It is simply the quotient of two numbers. It can be
expressed as a fraction or as a decimal or as a pure ratio or in absolute figures as so
many times. As accounting ratio is an expression relating two figures or accounts or two
sets of account heads or group contain in the financial statements.
Meaning of Ratio Analysis:
Ratio analysis is the method or process by which the relationship of items or group of items in the
financial statement are computed, determined and presented. Ratio analysis is an attempt to
derive quantitative measure or guides concerning the financial health and profitability of
business enterprises. Ratio analysis can be used both in trend and static analysis. There are
several ratios at the disposal of an analyst but their group of ratio he would prefer
depends on the purpose and the objective of analysis. While a detailed explanation of ratio
analysis is beyond the scope of this section, we will focus on a technique, which is easy to use. It
can provide you with a valuable investment analysis tool. This technique is called Crosssectional analysis. Cross-sectional analysis compares financial ratios of several companies from
the same industry. Ratio analysis can provide valuable information about a company's financial
health. A financial ratio measures a company's performance in a specific area. For example, you
could use a ratio of a company's debt to its equity to measure a company's leverage. By
comparing the leverage ratios of two companies, you can determine which company uses greater
debt in the conduct of its business. A company whose leverage ratio is higher than a competitor's
has more debt per equity. You can use this information to make a judgment as to which company
is a better investment risk.
However, you must be careful not to place too much importance on one ratio. You obtain
a better indication of the direction in which a company is moving when several ratios are taken as
a group.

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Objective of Ratios:
Ratios are worked out to analyze the following aspects of business organizationA) Solvency Long term
Short term
Immediate
B) Stability
C) Profitability
D) Operational efficiency
E) Credit standing
F) Structural analysis
G) Effective utilization of resources
H) Leverage or external financing
Importance of Ratio Analysis:
As a tool of financial management, ratios are of crucial significance. The importance of ratio
analysis lies in the fact that it presents facts on a comparative basis & enables the
drawing of interference regarding the performance of a firm. Ratio analysis is relevant in
assessing the performance of a firm in respect of the following aspects:
1] Liquidity position
2] Long-term solvency
3] Operating efficiency
4] Overall profitability
5] Inter firm comparison
6] Trend analysis.
Liquidity position
With the help of Ratio analysis conclusion can be drawn regarding the liquidity position of a firm.
The liquidity position of a firm would be satisfactory if it is able to meet its current
obligation when they become due. A firm can be said to have the ability to meet its short-term
liabilities if it has sufficient liquid funds to pay the interest on its short maturing debt
usually within a year as well as to repay the principal. This ability is reflected in the
liquidity ratio of a firm. The liquidity ratio is particularly useful in credit\analysis by bank & other
suppliers of short term loans.
Long-term solvency
Ratio analysis is equally useful for assessing the long-term financial viability of a firm. This
respect of the financial position of a borrower is of concern to the long-term creditors,
security analyst & the present & potential owners of a business. The long-term solvency is
measured by the leverage capital structure & profitability ratio .Ratio analysis that focus on
earning power & operating efficiency. Ratio analysis reveals the strength & weaknesses of a firm
in this respect. The leverage ratios, for instance, will indicate whether a firm has a reasonable
proportion of various sources of finance or if it is heavily loaded with debt in which case
its solvency is exposed to serious strain. Similarly the various profitability ratios would reveal
whether or not the firm is able to offer adequate return to its owners consistent with the
risk involved.
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Operating efficiency
Yet another dimension of the useful of the ratio analysis, relevant from the viewpoint of
management, is that it throws light on the degree of efficiency in management &
utilization of its assets. The various activity ratios measure this kind of operational efficiency. In
fact, the solvency of a firm is, in the ultimate analysis, dependent upon the sales revenues
generated by the use of its assets- total as well as its components.
Overall profitability
Unlike the outsides parties, which are interested in one aspect of the financial position of a firm,
the management is constantly concerned about overall profitability of the enterprise. That
is, they are concerned about the ability of the firm to meets its short term as well as long
term obligations to its creditors, to ensure a reasonable return to its owners & secure optimum
utilization of the assets of the firm. This is possible if an integrated view is taken & all the
ratios are considered together.
Inter firm comparison
Ratio analysis not only throws light on the financial position of firm but also serves as a steppingstone to remedial measures. This is made possible due to inter firm comparison & comparison
with the industry averages. A single figure of a particular ratio is meaningless unless it is
related to some standard or norm. One of the popular techniques is to compare the ratios
of a firm with the industry average. It should be reasonably expected that the performance of
a firm should be in broad conformity with that of the industry to which it belongs. An inter firm
comparison would demonstrate the firms position vice-versa its competitors. If the results are at
variance either with the industry average or with those of the competitors, the firm can
seek to identify the probable reasons & in light, take remedial measures.
Trend analysis
Finally, ratio analysis enables a firm to take the time dimension into account. In other
words, whether the financial position of a firm is improving or deteriorating over the
years. This is made possible by the use of trend analysis. The significance of the trend analysis of
ratio lies in the fact that the analysts can know the direction of movement, that is, whether the
movement is favorable or unfavorable. For example, the ratio may be low as compared to the
norm but the trend may be upward. On the other hand, though the present level may be
satisfactory but the trend may be a declining one.
Advantages of Ratio Analysis
Financial ratios are essentially concerned with the identification of significant accounting data
relationships, which give the decision-maker insights into the financial performance of a
company. The advantages of ratio analysis can be summarized as follows:
1. Ratios facilitate conducting trend analysis, which is important for decision making and
forecasting.
2. Ratio analysis helps in the assessment of the liquidity, operating efficiency, profitability and
solvency of a firm.
3. Ratio analysis provides a basis for both intra-fir m as well as inter-firm comparisons.
4. The comparison of actual ratios with base year ratios or standard ratios helps the management
analyze the financial performance of the firm.
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Purpose of Ratio Analysis:

1] To identify aspects of a businesss performance to aid decision making
2] Quantitative process may need to be supplemented by qualitative factors to get a complete
picture.
3] 5 main areasLiquidity
The ability of the firm to pay its way
Investment/shareholders
Information to enable decisions to be made on the extent of the risk and the earning potential of a
business investment
Gearing
Information on the relationship between the exposures of the business to loans as opposed to
share capital
Profit ability
How effective the firm is at generating profits given sales and or its capital assets
Financial
The rate at which the company sells its stock and the efficiency with which it uses its assets

Role of Ratio Analysis:

It is true that the technique of ratio analysis is not a creative technique in the sense that it uses the
same figure & information, which is already appearing in the financial statement. At the
same time, it is true that what can be achieved by the technique of ratio analysis cannot be
achieved by the mere preparation of financial statement. Ratio analysis helps to appraise the
firm in terms of their profitability & efficiency of performance, either individually or in
relation to those of other firms in the same industry. The process of this appraisal is not
complete until the ratio so computed can be compared with something, as the ratio all by
them do not mean anything. This comparison may be in the form of intra firm
comparison, inter firm comparison or comparison with standard ratios. Thus proper comparison
of ratios may reveal where a firm is placed as compared with earlier period or in comparison
with the other firms in the same industry. Ratio analysis is one of the best possible techniques
available to the management to impart the basic functions like planning & control. As the
future is closely r elated to the immediate past, ratio calculated on the basis of historical financial
statements may be of good assistance to predict the future. Ratio analysis also helps to locate &
point out the various areas, which need the management attention in order to improve the
situation. As the ratio analysis is concerned with all the aspect of a firms financial
analysis i.e. liquidity, solvency, activity, profitability & overall performance, it enables the
interested per sons to know the financial & operational characteristics of an organization & take
the suitable decision.

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Functions of ratios.
Accounting ratios can also be classified according to their functions in to liquidity ratios,
leverage ratios, activity ratios, profitability ratios & turnover ratios.
Liquidity ratios
It shows the relationship between the current assets & current liabilities of the concern e.g. liquid
ratios & current ratios.
Leverage ratios:
It shows the relationship between proprietors funds & debts used in financing the assets of the
concern e.g. capital gearing ratios, debt equity ratios, & Proprietary ratios.
Activity ratios:
It shows relationship between the sales & the assets. It is also known as Turnover ratios
& productivity ratios e.g. stock turnover ratios, debtors turnover ratios.
Profitability ratios:
a) It shows the relationship between profits & sales e.g. operating ratios, gross profit ratios,
operating net profit ratios, expenses ratios
b) It shows the relationship between profit & investment e.g. return on investment, return on
equity capital.

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Limitations of Ratio Analysis

Ratio analysis has its limitations. These limitations are described below:
Information problems
1.Ratios require quantitative information for analysis but it is not decisive about analytical
output.
2. The figures in a set of accounts are likely to be at least several months out of date, and so might
not give a proper indication of the companys current financial position.
3. Where historical cost convention is used, asset valuations in the balance sheet could be
misleading. Ratios based on this information will not be very useful for decision-making.
Comparison of performance over time
1.When comparing performance over time, there is need to consider the changes in price.
The movement in performance should be in line with the changes in price.
2.When comparing performance over time, there is need to consider the changes in
technology. The movement in performance should be in line with the changes in
technology.
3. Changes in accounting policy may affect the comparison of results between different
accounting years as misleading.
Inter-firm comparison
1. Companies may have different capital structures and to make comparison of performance when
one is all equity financed and another is a geared company it may not be a good analysis.
2. Selective application of government incentives to various companies may also distort
intercompany comparison. Comparing the performance of two enterprises may be misleading.
3. Inter-firm comparison may not be useful unless the firms compared are of the same size and
age, and employ similar production methods and accounting practices.
4. Even within a company, comparisons can be distorted by changes in the price level.
5. Ratios provide only quantitative information, not qualitative information.
6. Ratios are calculated on the basis of past financial statements. They do not indicate future
trends and they do not consider economic conditions.

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Fund Flow Analysis

Fund may be interpreted in various ways as
(a) Cash,
(b) Total current assets,
(c) Net working capital,
(d) Net current assets.
For the purpose of fund flow statement the term means net working capital. The flow of fund will
occur in a business, when a transaction results in a change i.e., increase or decrease in the
amount of fund. According to Robert Anthony the funds flow statement describes the
sources from which additional funds were derived and the uses to which these funds were put.
In short, it is a technical device designed to highlight the changes in the financial
condition of a business enterprise between two balance sheets.
Objectives of Fund Flow Statement
The main purposes of FFS are:
1.To help to understand the changes in assets and asset sources which are not readily
evident in the income statement or financial statement.
2. To inform as to how the loans to the business have been used.
3. To point out the financial strengths and weaknesses of the business.

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Cash Flow Analysis

Cash is a life blood of business. It is an important tool of cash planning and control. A firm
receives cash from various sources like sales, debtors, sale of assets investments etc. Likewise,the
firm needs cash to make payment to salaries, rent dividend, interest etc. Cash flow statement
reveals that inflow and outflow of cash during a particular period. It is prepared on the basis of
historical data showing the inflow and outflow of cash.
Objectives of CFS
1. To show the causes of changes in cash balance between the balance sheet dates.
2. To show the actors contributing to the reduction of cash balance inspire of increasing of profit
or decreasing profit.
Uses of CFS
1. It explaining the reasons for low cash balance.
2. It shows the major sources and uses of cash.
3. It helps in short term financial decisions relating to liquidity.
4. From the past year statements projections can be made for the future.
5. It helps the management in planning the repayment of loans, credit arrangements etc.
Usefulness of the Statement of Cash Flows
The information in a statement of cash flows should help investors, creditors, and others assess
the following aspects of the firms financial position.
The entitys ability to generate future cash flows.
By examining relationships between items in the statement of cash flows investors and
others can make predictions of the amounts, timing, and uncertainty of future cash flows
better than they can from accrual basis data.
The entitys ability to pay dividends and meet obligations.
If a company does not have adequate cash, employees cannot be paid, debts settled, or
dividends paid. Employees, creditors, and stockholders should be particularly interested in
this statement, because it alone shows the flows of cash in a business.
The cash investing and financing transact ions during the period.
By examining a companys investing and financing transactions, a financial statement reader
can better understand why assets and liabilities changed during the period.

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Objective of Study
To understand the information contained in financial statements with a view to know the strength
or weaknesses of the firm and to make forecast about the future prospects of the firm and thereby
enabling the financial analyst to take different decisions regarding the operations of the firm.
Research Methodology
Research is defined as a systematic, gathering recording and analysis of data about problem
relating to any particular field. It determines strength reliability and accuracy of the project.
1. Research Design: Research Design pertains to the great research approach or strategy adopted
for a particular project. A research project has to be the conducted scientifically making
sure that the data is collected adequately and economically. The study used a descriptive
research design for the purpose of getting an insight over the issue. It is to provide an
accurate picture of some aspects of market environment. Descriptive research is used when
the objective is to provide a systematic description that is as factual and accurate as possible.
2. Method of Data Collection:
Secondary Data:
Through the internet and published data

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FINANCIAL POSITION OF INDIA INFOLINE LTD(2005-2009)

TABLE-1

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TABLE-2

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TABLE-3

TABLE-4

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FINANCIAL STATEMENT OF 2008-2009

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29 | P a g e

Accounting Policy Year: Mar '09

1) Basis of preparation of financial statements
The financial statements have been prepared under historical cost convention on an accrual basis
in compliance with all material aspects of the applicable Accounting Standards in India and the
relevant provisions of the Companies Act, 1956. The accounting policies have been consistently
applied by the Company.
2) Use of Estimates
The presentation of financial statements in conformity with the generally accepted accounting
principles requires estimates and assumptions to be made that affect the reported amount of
assets and liabilities on the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Difference between the actual result and estimates are
recognized in the period in which the results are known / materialized.
4) Translation of foreign currency items
Transactions in foreign currencies are recorded at the prevailing rates at the time transactions
were affected. Foreign currency assets & liabilities outstanding at the year-end are translated at
the rates of exchange ruling on that day; gain / loss on transactions are accounted in the Profit &
Loss account.
5) Investments
Investments are classified into current and long-term investments. Current investments are
stated at lower of cost or market value. Long-term investments are carried at cost less provisions,
if any, for permanent diminution in the value of such Investment.
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6) Stock in Trade
Closing stock is valued at cost or market value whichever is lower. Cost is computed on FIFO
basis.
7) Revenue Recognition
Brokerage income earned on secondary market operations is accounted (inclusive method) on
trade dates. Depository & related income is accounted (inclusive method) on accrual basis.
Dividend income is accounted for when the right to receive the payment is established.
8) Retirement Benefits
The companys contribution towards Provident Fund and Family Pension Fund is charged
against revenue on actual basis. The Company has provided Gratuity and leave encashment on
the basis of actuarial valuation.
9) Deferred Employee Stock Compensation
The stock options granted by the Company are accounted for as per the accounting treatment
prescribed by Employee Stock Option Scheme and Employee Stock Purchase Guidelines, 1999
issued by Securities and Exchange Board of India and the guidance note on Accounting for
Stock Options issued by The Institute of Chartered Accountant of India, whereby the intrinsic
value of the options are recognized as deferred employee compensation. The deferred employee
compensation is charged to the Profit and Loss Account on a straight line basis over the vesting
period of the options. The Employee Stock Options Outstanding Account, net of unamortized
Deferred Employee Compensation is shown separately as part of Reserves.
10) Taxes on Income
Provision for current tax is computed in accordance with relevant tax provisions. Deferred tax is
recognized for all timing differences between accounting income & taxable income and is
quantified using enacted / substantially enacted tax rates as at the balance sheet date. Deferred
tax assets are recognized subject to the management judgment that the realization is virtually /
reasonably certain.
11) Operating Leases
Lease rentals in respect of operating lease arrangements are charged to the Profit & Loss
Account in accordance with Accounting Standard 19 Leases, issued by the Institute of
Chartered Accountants of India.

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Notes to Accounts

Year End : Mar '09

1) At balance sheet date, there were outstanding commitments for capital expenditure (net of
advances) to the tune of Rs. 76,135,859 (previous year Rs. 22,371,790) of the total contractual
obligation entered during the year.
2) The Company does not have contingent liabilities not provided for other than an income tax
matter amounting to Rs. 3,413,731. The company has filed an appeal with the Income Tax
Appellate Tribunal against the said demand.
3) The Company has provided a Corporate Guarantees on behalf of wholly owned subsidiary
India Infoline Commodities Limited amounting to Rs. 129,000,000. (previous year 80,000,000)
4) The Company commenced buy-back of equity shares through open market using Stock
Exchange system pursuant to the resolution of the Board of Directors passed at the Meeting held
on November 29, 2008 and Public Announcement released on December 5, 2008. As on March
31, 2009 the Company had bought Back 2,557,915 Equity Shares of Rs. 2 each utilizing Rs.108
million and the same stand extinguished.
5) 11,000,000 Equity Warrants issued on Preferential Basis to seven identified persons including
the Promoters on July 04, 2007 had lapsed during the year due to non-exercise of warrants. The
advance received on the above Equity Warrants amounting to Rs. 484 million stands forfeited by
the Company and the said amount has been credited to Capital Reserves.
6) As disclosed in the Annual Report for 2007-08 the accounts mobilized through preferential
allotment of equity warrants / equity shares were fully utilized in 2007-08. During the year the
Company had not mobilized any equity capital and accordingly no additional disclosures are
required.
7) Company has reduced its Gross block and accumulated depreciation for those assets having
zero net block as on 31st March 2009 amounting
8) During the year Company has acquired IIFL Inc from IIFL (Asia) Pte Ltd (wholly owned
subsidiary) for a total consideration of Rs. 35,152,849.
9) Company has pledged fixed deposits to the extent of Rs.1554.20 million with banks for bank
guarantees/overdraft facilities and with stock exchanges.
10) In the opinion of the management, there is only one reportable business segment as
envisaged by AS 17 Segment Reporting, issued by the Institute of Chartered Accountants of
India. Accordingly, no separate disclosure for segment reporting is required to be made in the
financial statements of the Company. Secondary segmentation based on geography has not been
presented as the Company operates primarily in India and the Company perceives that there
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is no significant difference in its risk and returns in operating from different geographic areas
within India.
11) Financial income includes dividend on non trade and other investments of Rs. 151,667,039
(previous year Rs. 47,844,562). The amount is net of TDS on interest of Rs. 162,376,930
(previous year Rs.275,808,967).
12) Interest expenses include the interest on Debentures Rs. 28,289,522 (Previous year Rs.
98,489,300) and Discount on Commercial paper Rs.47,834,812 (Previous year 75,839,398).
13) The Company provides for the use of its wholly owned subsidiaries certain facilities like use
of premises, infrastructure and other facilities and services and the same are termed as Shared
Services. Such shared services consisting of administrative and other revenue expenses paid for
by the company are recovered on an actual basis from subsidiaries and estimates are used where
actual are difficult to determine.

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DATA ANALYSIS AND INTERPRETATION

RATIO ANALYSIS
Financial ratios are useful indicators of a firm's performance and financial situation. Financial
ratios can be used to analyze trends and to compare the firm's financials to those of other firms.
Financial ratios can be classified according to the information they provide. The following types
of ratios frequently are used:
LIQUIDITY RATIOS
Liquidity ratios are the first ones to come in the picture. These ratios actually show the
relationship of a firms cash and other current assets to its current liabilities. Two ratios are
discussed under Liquidity ratios. They are:
1. Current ratio: This ratio indicates the extent to which current liabilities are covered by those
assets expected to be converted to cash in the near future. Current assets normally include cash,
marketable securities, accounts receivables, and inventories. Current liabilities consist of
accounts payable, short-term notes payable, current maturities of long-term debt, accrued taxes,
and other accrued expenses (principally wages).
Current Ratio=Current Assets/Current Liabilities
Following table shows the Current ratio of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

2.43

5.65

1.16

1.11

1.11

Following details shows the change of Current ratio over different periods:

Current Ratio
8
6
4

Ratio

2
0
2005

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2006

2007

2008

2009

Comments: The current ratio in between 2005-2007, was very much unstable which was not
desirable later the company rectified. The standard ratio is 2:1.In year 2005 it was most suitable.
Now the firm is maintaining the lower liquidity position.
2. Quick/ Acid Test ratio: This ratio indicates the firms liquidity position as well. It actually
refers to the extent to which current liabilities are covered by those assets except inventories.
Quick Ratio= (Current Assets-Inventories)/Current Liabilities
Following table shows the Quick/ acid test ratio of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

4.19

6.43

1.51

1.29

1.1

Following graph shows the change of Quick ratio over different periods:

Quick Ratio
8
6
4

Ratio

2
0
2005

2006

2007

2008

2009

Comments: Here the acid test ratio was highest in 2006 and after that it came down year by year,
so the company is maintaining lower quick liquidity.
3. Debt equity Ratio: A measure of a company's financial leverage calculated by dividing its
total liabilities by stockholders' equity. It indicates what proportion of equity and debt the
company is using to finance its assets.

Debt equity ratio= Total Liabilities/Shareholders fund

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Following table shows the Debt equity Ratio of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

Ratio

0.03

0.49

0.28

0.13

2009

Following graph shows the change of Debt Equity ratio over different period:

Debt EquityRatio
0.50
0.40
0.30

Ratio

0.20
0.10
0.00
2005

2006

2007

2008

2009

Comments: Here the firm maintained lower debt ratio in 2009, which means the risk the firm is bearing, is
very low.
DEBT COVERAGE RATIO:
This ratios help to find out the ability of the company to pay the interest, debt.

1. Interest cover ratio: A ratio used to determine how easily a company can pay interest on outstanding
debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes
(EBIT) of one period by the company's interest expenses of the same period.
Interest cover ratio=EBIT/Interest
Following table shows the Debt coverage Ratio of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

485.41

19.24

13.76

12.26

20.73

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Following graph shows the change of Debt Coverage ratio over different periods:

Interest Cover Ratio

500
400
300
Interest Cover Ratio

200
100
0
2005

2006

2007

2008

2009

Comments: Interest cover ratio helps to identify the firms interest obligation. In 2005 the firm could pay
485.41 times of its interest because the firm had low interest to pay, but the scenario changed afterwards.
MANAGEMENT EFFICIECY RATIOS:
This ratios help us to consider that how strong is the management in the organization and how effectively
it works.

1.Fixed asset turnover ratio: The Fixed Asset Turnover ratio measures the effectiveness in
generating Net Sales revenue from investments in Net Property, Plant, and Equipment back into
the company evaluates only the investments.
Fixed assets turnover ratio (FATO) = Gross Turnover / Net fixed assets
Following table shows the FATO ratios of India Infoline Ltd in different years:
Year
Ratio

2005

2006

2007

2008

2009

5.1

6.26

3.96

6.74

4.01

Following graph shows the change of fixed assets turnover ratio over different periods:

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FATO Ratio
8
6
4

Ratio

2
0
2005

2006

2007

2008

2009

Comments: In year 2008 the fixed asset turnover ratio was highest which implies the sound quality of
asset management, here the firm was able to generate highest amount of sale from given fixed asset.

2.Total asset turnover ratio: The Total Asset Turnover is similar to fixed asset turnover since
both measures a company's effectiveness in generating sales revenue from investments back into
the company. Total Asset Turnover evaluates the efficiency of managing all of the company's
assets.
Total assets turnover ratio (TATO) = Gross Turnover/Total Assets
Following table shows the TATO ratios of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

0.4

0.18

0.74

0.53

0.52

Following graph shows the change of total assets turnover ratio over different period

TATO Ratio
0.8
0.6
0.4
0.2
0

Ratio

2005

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2006

2007

2008

2009

Comments: In year 2007 the total asset turnover ratio was highest which implies the sound quality of
asset management, here the firm was able to generate highest amount of sale from given asset. Here the
utilization was highest.
3. Debtors 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

Following table shows the debtors turnover ratios of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

22.44

12.81

2.6

2.43

Following graph shows the change of debtors turnover ratio over different periods:

Debtors Turnover Ratio

25
20
15
Ratio

10
5
0
2005

2006

2007

2008

2009

Comments: In year 2005 debtors turnover ratio was highest which shows the greater flexibility, but in
2009 it came down to2.43.

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PROFITIBILITY RATIO:
Profitability is the net result of a number of policies and decisions. Profitability ratios show the
combined effects of liquidity, asset management and debt on operating results.
There are four important profitability ratios that we are going to analyze:
1. Net Profit Ratio: Net Profit Margin gives us the net profit that the business is earning per
dollar of sales. The equation is as follows:
Net Profit margin = Net income available to the stockholders / gross turnover
Following shows the Net Profit Margin of India Infoline Ltd in different years:
Year

2005

2006

Ratio

78.58

54.61

2007
18.17

2008

2009

23.45

18.51

Following graph shows the change of net profit over different periods:

Net ProfitRatio
80
60
40

Ratio

20
0
2005

2006

2007

2008

2009

Comments: In year 2005 the net profit ratio was highest which was very sound for a firm after that it
came down and in 2009 the ratio is 18.51 which is not bad either.

2. Gross Profit Ratio: Gross Profit Margin gives us the amount of Gross profit a firm is earning
per dollar of its sales. The equation is as follows:
Gross Profit Margin (GPM) = Gross profit / Gross turnover

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Following shows the Gross Profit Margin of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Profit

87.96

85.08

32.75

32.97

24.57

Following graph shows the change of gross profit over different periods:

Gross Profit
100
80
60

Profit

40
20
0
2005

2006

2007

2008

2009

Comments: In year 2005 and 2006 the gross profit ratio was good which was very sound for a firm after
that it came down and in 2009 the ratio is 24.57 which is not bad either.
3. Operating Income and Operating Profit Ratio: Operating income, or operating profit as it is
sometimes called, is the total pre-tax profit a business generated from its operations. It is what is available
to the owners before a few other items need to be paid such as preferred stock dividends and income
taxes. Operating income can be used to gauge the general health of a company's core business or
businesses. All else being equal, it is one of the most important figures you will ever need to know. The
reason is straightforward and intuitive: Unless a firm has a lot of assets that it can sell, any money that
will flow to shareholders is going to have to be generated from selling something such as a product or
service.

Calculating Operating Income

Operating Income = Gross Profit Operating Expenses
Operating Margin=Operating Income / Sales

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Following shows the Operating Profit Margin of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

87.56

88.7

31.49

36.12

29.29

Following graph shows the change of operating profit over different periods:

Operating Profit Ratio

100
80
60

Ratio

40
20
0
2005

2006

2007

2008

2009

Comments: In year 2005 and 2006 the operating profit ratio was good which was very sound for a firm
after that it came down and in 2009 the ratio is 29.29 which is not bad either.

4.Return On Capital Employed Ratio: The Return on Capital Employed ratio (ROCE) tells us
how much profit we earn from the investments the shareholders have made in their company.
ROCE=Profit Of The Year/Equity Shareholders Fund
Following shows the ROCE Ratio of India Infoline Ltd in different years:
Year

2005

2006

2007

2008

2009

Ratio

35.39

16.4

23.73

21.98

15.49

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Following graph shows the change of ROCE different periods:

ROCE Ratio
40
30
20

Ratio

10
0
2005

2006

2007

2008

2009

Comments: The return on investment was highest in 2005 35.39 and in 2009 it was 15.49 means that the
profit earned against shareholder fund is 15.49.

Dividend Payout Ratio: The percentage of earnings paid to shareholders in dividends. The
payout ratio provides an idea of how well earnings support the dividend payments. More mature
companies tend to have a higher payout ratio.
Dividend Payout Ratio=Yearly dividend Per Share/Earning Per Share
Following shows the DP Ratio of India Infoline Ltd in different years:
Year

2005

Ratio

2006

2007

2008

2009

57.43

32.73

25.41

87.83

Following graph shows the change of DP ratio different periods:

DP Ratio
100
50

Ratio

0
2005

2006

2007

2008

2009

Comments: In 2005 the company did not declare any dividend and retain its earning fully for the benefit
of the firm and after that between 2006-2009 the company declare dividend.
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OTHER RATIOS

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CASH FLOW STATEMENT

TABLE-

Comments:
1. The cash flow statement shows that the net profit before tax has increased from 2005 to
2008, but decreased in 2009 in excessive liquidity.
2. The net cash from operating activity increased from 2005 to 2009 except the year 2006,
which shows a sound position.
3. The net cash in investing activity in negative in all years which shows the less
contribution of the firm in investment activities.
4. The firms financing activities was highest in 2008 and lowest in 2009,the contribution
of the firm in 2009 towards the financing activities was poor.
5. The firms net increase in cash and cash equivalent was highest in2009 which shows a
good liquidity position of the firm.
6. The opening cash and cash equivalent was highest in 2009 which helps the firm to
maintain highest liquidity.

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Findings
1. The current ratio in between 2005-2007, was very much unstable which was not desirable later
the company rectified. The standard ratio is 2:1.In year 2005 it was most suitable. Now the is
firm is maintaining the lower liquidity position.
2. In 2005 the company did not declare any dividend and retain its earning fully for the benefit of
the firm and after that between 2006-2009 the company declare dividend.
3. The return on investment was highest in 2005 35.39 and in 2009 it was 15.49 means that the
profit earned against shareholder fund is 15.49.
4. In year 2005 and 2006 the operating profit ratio was good which was very sound for a firm
after that it came down and in 2009 the ratio is 29.29 which is not bad either
5. In year 2005 and 2006 the gross profit ratio was good which was very sound for a firm after
that it came down and in 2009 the ratio is 24.57 which was not bad either.
6. : In year 2005 the net profit ratio was highest which was very sound for a firm after that it
came down and in 2009 the ratio is 18.51 which is not bad either.
7. In year 2005 debtors turnover ratio was highest which shows the greater flexibility, but in
2009 it came down to2.43.
8. In year 2007 the total asset turnover ratio was highest which implies the sound quality of asset
management, here the firm was able to generate highest amount of sale from given asset. Here
the utilization was highest.
9. Interest cover ratio helps to identify the firms interest obligation. In 2005 the firm could pay
485.41 times of its interest because the firm had low interest to pay, but the scenario changed
afterwards.
10. Here the firm maintained lower debt ratio in 2009, which means the risk the firm is bearing,
is very low.
11. The current ratio in between 2005-2007, was very much unstable which was not desirable
later the company rectified. The standard ratio is 2:1.In year 2005 it was most suitable. Now the
is firm is maintaining the lower liquidity position.

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12. Company has issued share capital of 56.68cr whose face value was 2 Rs.
13. The companys net worth from 2005 to 2009 is increasing in a pace and in 2009 it was
1048.18cr which is undoubtedly good.
14. Total debt of the company in 2008 was 130.57cr which later came down to 1.80cr. which
signifies low risk.
15.The companys sales turnover in march 2008 was 616.11cr and it came down to 542.27cr in
march 2009.this incident had a effect in the total income on 2009 but the total expenditure on
2009 is 383.42cr which is less than 2008.
16. The companys EBDIT was 188.19cr which was less than 2008.
17. In 2009 the companys equity dividend was 79.45cr @140% dividends.
18. In 2009 companys operating profit was 29.29% which was lower than 2008.
19. In 2009 the cash profit margin percentage was 22.59cr where it was 26.42cr in 2008.
20. In 2009 the companys return on net worth was 10.20%.

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Suggestion & Recommendation

1.Liquidity refers to the ability of the concern to meet its current obligations as and when
these become due. The company should improve its liquidity position 2:1.
2. The company should make the balance between liquidity and solvency position of the
company.
3. The profit ratio is decreased in current year so the company should pay attention to this because
profit making is the prime objective of every business.
4. The short term financial position of the company is very good but it should pay a little attention
to long term solvency of the company.

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Conclusion
The companys overall position is at a good position. The company achieves sufficient profit in
past 5 years. The long term solvency position of the company is satisfactory. The company
maintains low liquidity to achieve the high profitability. The company distributes dividends every
year to its share holders except 2005. The profit of the company deceased in the last year due to
maintaining the comparatively high liquidity. The companys net worth from 2005 to 2009 is
increasing in a pace and in 2009 it was 1048.18cr which is undoubtedly good.

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Bibliography

REFERENCE BOOKS
FINANCIAL MANAGEMENT
Theory, Concepts & problems
R.P.RUSTAGI
FINANCIAL MANAGEMENT
Text and problems By- M.Y. KHAN AND P. K. JAIN
FINANCIAL STATEMENT ANALYSIS
DR.JAYANTA GHOSH
ANNUAL REPORT OF INDIA INFOLINE LTD WEBSITES
1.2005
2.2006
3.2007
4.2008
5.2009
WEBSITES
www.indiainfoline.com
www.moneycontrol.com

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