Project on

“Analysis of Fianancial Performance of Sezal Glass limited in Mumbai”.

Master of Business Fianance Management

Date:-

Place:-

Sezal Glasss Ltd. Page 1

 TABLE OF CONTENTS

Chapter Number Details Page No.

Chapter 1 Rationale For The Study
Chapter 2 Objective Of The Study
Title of the project
Objetive of the study
Scope of the study
Chapter 3 Profile of the Company
Chapter 4 Review Of Literature
Chapter 5 Research Methodology
Research Design
Data Collection Method / Sources
Sampling Plan,Unit,Size and Methods
Chapter 6 Data analysis & Interpretations
Chapter 7 Findings
Chapter 8 Limitations
Chapter 9 Recommendations & Suggestions
Copies Of Questionnaire
Copies Of Form Or Any Form The Company
Bibliography

CHAPTER – 1
Rational For The Study

Economic Overview :-
Sezal Glasss Ltd. Page 2
The global economy continued to stage recovery during 2010-11 led by BRICs nations. The
Growth in developed economies such as US and European countries remained elusive and slow
on account of higher unemployment, phasing out of stimulus packages and rising oil prices.
However, the developing economies had to face their own challenges in term of rising inflation,
increased interest rates and impact of oil price volatility.
Weathering the turbulent global slowdown, the Indian economy managed commendable
expansion of 8.0 per cent in 2009-10 and 6.8 per cent in 2008-09. During the financial year
ended March 31, 2011 the growth has en reported as over 8.6 per cent. It is now widely believed
that India could well be on course to be the third largest economy in the world in a couple of
years, overtaking Japan. Besides, it is expected that, after 2020, India’s growth would be faster
than that of even China.
Glass Industry Overview
Global overview
• The global market for flat glass in 2009 was approximately 52 mn tonnes, growing at 4
percent to 5 percent a year.
• Of total global market demand in 2009, ~ 29 mn tonnes represented high quality float
glass, 3 mn tonnes for sheet glass and 2 mn tonnes for rolled glass. The remaining 19 mn
tonnes reflects demand for lower quality float, produced mainly in China.
• In 2009, 40 per cent of float glass went into new buildings and the same proportion
into refurbishment for buildings.
• Approximately 5 mn tonnes of the flat glass produced globally was automotive
Glass.
• Approximately 2.3 mn tonnes of flat glass was consumed in special applications. The
most notable of these is solar energy.
• Considering high quality float alone, the industry is relatively consolidated, with four
companies accounting for a majority of global capacity
• Europe, China and North America, together account for over 70 per cent of high quality
float demand.
• Following manufacture, a portion of the high quality float glass and rolled glass produced
globally is further processed by laminating, toughening and coating for use typically in
insulating glass units or automotive glazing.

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Demand overview
• Over the long term demand is growing steadily in most regions.
• The global recession has caused a demand contraction in 2009. Recovery is uncertain
and return to 2007 levels is not expected until 2012.
• Global capacity utilization is expected to be around
90 per cent in the medium term.
Indian overview
The total float glass manufactured in India is approximately one million tonnes per
annum and
almost 77 per cent is consumed domestically. Per capita consumption is only 0.8 kg as against
8 kgs in China and
10 kgs in USA.
The Indian Glass Industry has been growing at about
10 per cent per annum in the past decade. The drivers of growth have been the Architectural
and Automotive sectors. The past decade has seen not only sustained growth rates in the
market but also significant cost
inflation in fuel, raw materials, freight and overheads. This has impacted the profit margins of
the industry.

The glass processing industry

The float glass in order to be usable has to be processed for lending it with various properties.
These processes not only enhance the life and aesthetic appeal of the glass,
but also customize it for the intended use. The Indian glass processing industry is
highlyunorganized. The glass processing units are required to be located in proximity to the
major float glass producing centers as well as the markets of consumption to minimize losses
on account of breakages and logistics cost. The most commonly used processed glass is used as
architectural glass for window
panes/doors in real estate segment. However, to ensure that they survive the rough handling,
wear and tear or are customized to support better cooling or exposure to heat, there are various
processes that are implemented on the glass.
The processes
• Heat strengthened glass

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• Fully toughened glass
• Insulated glass
• Noise insulating glass
• Laminated glass
• Decorative glass
• Fire resistant glass

REAL ESTATE SECTOR - THE KEY GROWTH DRIVER

Key demand drivers

Residential Office Space Redial Hotels

• Increase in • India accepted as most • Entry of global brands • Increased business
urbanization & working attractive destination travel- both domestic
population for IT • Organised retailling & foreign due to
& BPO services only buoyant economic
• High disposable 2% of total retail growth & growing
incomes & Industry FDI
aspiration levels • 2004 saw record
tourist arrivals of 3
As per a report released by the McKinsey Global Institute
(MGI)–India’s urban awakening: Building inclusive cities, sustaining economic growth–on
April 2010, the country’s urban population will soar to 590 mn by 2030, from 340 mn in
2008. India’s cities could generate 70 per cent of the net new jobs created by 2030, produce
more than 70 per cent of the country’s gross domestic product (GDP), and stimulate a near
four-fold increase in per capita income. It also says that India needs to invest US$ 1.2 trillion
over next 20 years to modernise urban infrastructure and keep pace with the growing
urbanisation. The growth prospects and price stability of smaller cities are attracting large-
scale real estate
development. According to CRISIL Research, the sale of new residential apartments in 10 such
smaller Indian cities is estimated to be around US$ 4 billion in 2012.

Sezal Glasss Ltd. Page 5

 CHAPTER – 2
Tital Of The Projec
Objectiv Of The Study
Scope Of The Study

Sezal Glasss Ltd. Page 6

 Title Of The Project

“ Project Report Of Company Fianancial Performance Analyasis Of Sezal Glass Ltd in

Mumbai”

Objective Of The Study

As per the rules and regulations set by University, under two years of full time course of MBA
degree, a student has to undertake a project related to Management discipline in an organization
like manufacturing industry, consultancy firm etc. This project normally include data collection,
data sorting, data analysis and making inferences from it, under the guidance of that
organizational guide and his/her educational institution guide.

Such project work thus become a live platform for the student to know the current
management issues, development and the same time he/she can apply the knowledge gained
through earlier class-room learning.

The project study also provides an opportunity to develop Fianancial statment, Fianancial
performance skill and also expose to the organizations culture and the actual working of the
organization

 To collect and analyse financial statements of the firm (Sezal Glass Ltd.) for year 2010-
11 to 2011-12 and to study various terminologies used in it.
 To know organizational structure, working culture and business segments of the firm.
 To know the business environment in which the firm is working.
 To understand the meaning and objectives of financial statement analysis.

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  To know various tools for financial statement analysis and their uses.
 Application of financial statement analysis tools for evaluating the performance the firm
for financial years 2010-11 to 2011-12.
 Data interpretation with the help of soft tools.
 Recommendations or suggestions if any.

Scope Of The Study

 The report contains the company’s profile and data about the owners, senior executives,
locations, subsidiaries, markets, products, and company history.
 The SWOT-analysis provides information about the company’s strengths, weaknesses,
opportunities, and possible threats against it.
 The report outlines the main financial ratios pertaining to profitability, margin analysis,
asset turnover, credit ratios, and company’s long-term solvency.
 It also shows the company’s income statement and ratio trend-charts, with balance sheets
and cash flows presented on an annual and quarterly basis.
 Company’s financial ratios are directly compared with those of its competitors through
industry averages.
 The report provides relevant news, an analysis of PR-activity, and stock price
movements.
 The latter are correlated with pertinent news and press releases, and annual and quarterly
forecasts are given by a variety of experts and market research firms.

Chapter - 3
Company Profile

Company Profile :- SEZAL GLASS LIMITED

Sezal Glasss Ltd. Page 8
THE SEZAL ‘S PROMISE

Experience will give us str ength , focus will give us success.

At sezal we are committed to act consistently with integrity which built credibility and earns
highly respected reputation to us.

We have come a long way and have built a reputation, not only as an exceptional place to
work but also as an enterprise that can be trusted to do the right thing at all the times.
At each level of operations we have accomplished this together by conducting our business
honestly & ethically.

We firmly believe that our commitment to our core values has been the foundation to our

success spanning over a decade and it is vital to our future success as well .

INTRODUCTION

KEY PEOPLE OF THE COMPANY

Sezal Glasss Ltd. Page 9

THE COMPANY IS HEADED BY YOUNG , DYNAMIC & PHILANTHROPIC
CHAIRMAN & MANAGING DIRECTOR
MR. AMRUT GADA

An entrepreneur and a visionary who laid the foundation of the company. Recipient of various
prestigious awards like Leadership Excellence Award for Industrial Development by Indian
Economic Development and Research Association, New Delhi; and Girnar Award (Industry
Award for exceptional Achievement in the field of glass industry) by Bruhad Mumbai Gujarati
Samaj. As the Chairman and Managing Director, he is actively involved in the day to day
operations of the Company and in developing strategies for future growth and expansion based
on his know how on the glass industry.

COMPANY OVERVIEW
About the Company
Sezal Glasss Ltd. Page 10
Established in 1998 by Gada family, led by Mr. Amrrut Gada, a first generation entrepreneur,
Sezal Glass ranks among the leading glass processing solution companies in India. As a
forward integration strategy, the company opened its own excusive home lifestyle mall –
Sezal
Encasa in Mumbai, offering a wide range of home interior products from globally reputed
brands Headquartered in Mumbai, the company has a world-class glass-processing unit in
Silvassa and two Sezal Encasa showrooms in Mumbai.
Key highlights 2010-11

• The company’s revenues crossed `2 bn, in the first full year of operations of the float
glass plant
• Total revenues up six times to `2.8 bn
• EBIDTA up by 21 per cent to `106.12 mn
PAT registered a decrease from `25.27 mn to`(639.01)
mn

Major developments during the year

2010-11 was a challenging year for the industry. Robust economic growth during the year also
led to increased inflation, leading to hardening of interest rates on three occasions. On one
hand, rising inflation led to increased input prices; on the other increased financial cost led to
contraction of margins. The year also witnessed ~40 per cent lower demand for real estate in
Mumbai – one of the key markets for the company. However, decent increase
in the demand for real estate across India resulted in sustained demand for processed glass.
The retail operations of the company witnessed sustained increase on account of its wide range
and quality of products.
The operational challenges were met by adapting to
some as well as countering others. The company stressed on cost control measures by tapping
and improving controllable factors. During the year under review, the company also
consolidated its operations and undertook measures to increase production efficiencies across
its units, to counter the challenges.

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 Float glass operations
As a backward integration strategy, the company ventured into production of float glass. It
became the
first indigenous float glass manufacturer in India with the commencement of its float glass plant
in Bharuch, Gujarat in February 2010. The Financial Year 2010-11 was the first complete year
of operations for the float glass plant. The unit, spread across 150 acres, was built using state-
of-the-art European Technology.

The year 2010-11 was the first complete year of operations for the unit. The plant was built at
a total project cost of `6.56 bn. With the hardening of interest rates on one side and the
increasing prices of key inputs like Silica Sand, Fuel Cost, Soda Ash etc., despite stable
realization, led to huge losses for the company. Besides, the capacity build-up in the float glass
sector has become so large that it has resulted in limiting the realisation on the float glass. The
company believes that such pressures would continue in the industry going forward, thereby
would limit the increase in revenues going forward in the business. As a result, the company
decided to exit the float glass business. In May 2011, the company sold the Bharuch plant to
Saint-Gobain Glass India Limited for
`6.86 bn. This move has not only resulted in the company being practically debt-free but also
led to a availability of adequate cash reserves, which would be used to fund the future growth
plans.
Processing operations

The company commenced its business as a glass processing company. With an experience of
over a decade, the company has been able to carve a niche for itself in the industry. Being
located in Silvassa, Dadra
& Nagar Haveli, the company’s world-class unit enjoys proximity to key markets of Gujarat
and Maharashtra. The company’s ability to offer superior value and customized products has
led to its evolution to a preferred solutions provider with renowned real estate companies,
interior designers and architects. Located within a built-up area
of 11,000 sq.m., the unit offers varied processes and solutions on glass; across stages – from
pre-processing to processing to décor.
The unit houses machines from globally renowned companies, like Tamglass (Finland),

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Bystronic (Germany), Z. Bavelloni (Italy), Lisec(Austria) and Intermac (Italy) and other
European manufacturers. The company has invested in these high cost machines despite the
cost, to ensure delivery of better quality to its clients
Décor
To augment its product portfolio and at the same time monetize its skills in creating products,
the company initiated production of décor items like basins, artworks, mirrors, and other
decorative glass showpieces. With access to customer’s expectations and inputs gathered at its
retail stores, the company through its décor products identifies and offers solutions that’s its
customers wish for.
The impact of closure of float glass business
The company ventured into float glass business as a backward integration in the value chain –
from forefront to float. The strategy was based on the merits of scale as well as secured
material for the glass processing operations. However, on operating the plant, it was evident
the amount of efforts and costs it entailed; the benefits were not aligned to the same. With the
massive capacity build-up in the sector, the average price for
float glass will be under check in the medium term. It will ensure that the processing business
stays unaffected, both in terms of supply of raw material as well as the price of the inputs.
Retail Division

Sezal Encasa is the flagship retail division chain of the company. The company presently has
two showrooms, both located in Mumbai. Each Sezal Encasa showroom
is the most expansive retail format that offers exclusive products across brands and across
price points. The showrooms house quality products catering to the lifestyle, decorative items,
showpieces, interiors for home and office interiors including Ceramics, Sanitary ware & Bath
Fittings from Europe, Classic and Exemplary Arts, Artefacts & Sculptures of modern and
Indian Heritage, Decorative Lights, wallpapers, Artefacts, or Glass and Glass Products. The
showrooms showcase global luxury brands like Pergo Floors, RAK, Kohler, Duravit, Roca,
Artimiede, Dorma, Jaguar, Spyder etc.
With the infusion of liquidity into the company with the sale of Bharuch float glass plant; the
company would aggressively expand its retail operations to other cities in the next two-three
years.

Sezal Glasss Ltd. Page 13

 • SEJAL GLASS HOUSE – 11TH MARCH 1991

• SEJAL GLASS CRAFT LIMITED – 15TH AUG 1994

• INCORPORATION OF SEJAL ARCHITECTURAL GLASS

LIMITED (PROCESSING) -11TH DECEMBER 2000

• FLOAT PROJECT SIGNED WITH GUJARAT GOVERNMENT IN

VIBRANT GUJARAT – 13TH JAN 2007

• OPENING OF ENCASAA ( A retail Business) ON 8TH APRIL, 2007

• SEJAL ARCHITECTURAL GLASS LIMITED WAS LISTED ON BSE

/NSE WITH OVERWHELMING RESPONSE-2008

• COMMERCIAL PRODUCTION OF FLOAT GLASS STARTED –

FEBRUARY, 15, 2010

• SEJAL ARCHITECTURAL GLASS WAS RENAMED AS “SEZAL

GLASS LTD” – MAY 2010
SUCCESS JOURNY OF SEZAL GLASS LTD

• SEZAL INSURANCE BROKING LIMITED – 18TH NOVEMBER

2004
After taking a leap towards Sezal Glass Ltd in 2000, on 18th Nov 2004 Sezal

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 further ventured in to
Insurance broking to take care with all types of
insurance to serve the industry.
It has varied products of insurance like, Corporate Insurance, Fire
Insurance, Industrial Insurance, Liability Insurance, marine insurance, Money
insurance, & motor insurance. Six years back starting from scratch today Sezal
Insurance have premium base of more than 20,000 individual clients & 100
SME’s, traders, porate in its portfolio.

• SEZAL FINANCE LIMITED – 20 OCTOBER 2005

flagship company of Sezal Group, Sezal Finance Ltd. carries out long-
and short-term financial planning for all holding companies of Sezal Group
and acts as the corporate finance advisory wing for them.

• SEZAL ENTERTAINMENT & MEDIA INDIA LTD – 1ST AUG, 2008

White Flag Media & Communications Ltd is an independently driven
Sezal group enterprise. Its business activity is essentially into publishing and
media industry, Which made a humble beginning by publishing our first title
named Golden Hands – The Power of Architecture & recently launched 50
beautiful houses in India following with versatile Indian architects, corporate
offices in India, Hotels & resorts in India

• SEZAL REALTY & INFRASTRUCTURE LIMITED – 15TH APRIL,

2010
With an impeccable track record spanning over a decade in an enterprise
conjoined with the realty industry, Projects & constructions Industry it was
only a matter of time when Sezal would enter as a
major player in the Realty and Infrastructure for mega
township projects across India.

AS A PART OF DE- RISKING STRATEGY FOR AN ORGANIZATION, WE EXITED

FROM FLOAT GLASS MANUFACTURING BUSINESS ON 31ST MAY , 2011.

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 BUT
WE ARE ALWAYS KNOWN TO BE FIRST GENERATION REVOLUTIONARY
COMPANY…. AND HENCE WITH RICH EXPERIENCE OF 20 YEARS IN
BUSINESS, COMPANY WILL NOW FOCUS ON ITS TWO EXISTING BUSINESS
FOR EXPANSION.

GLASS BUSINESS AND RETAIL

BUSINESS

ABOUT DIVISION
Striving towards constant innovation company launched an excellent concept,
ENASCAA a 30,000 [Link] Mall based in Mumbai showcasing exclusive range of Interior
products under one roof to provide solution for Home and Office Décor.

Locations Mumbai ( Kandivali & Goregaon)

Various products at Encasa :-

Tiles & Flooring - ( Floor Tiles ,Wall Tiles, Glass Tiles ,Metal Tiles,Wooden Finish Tiles.)
Santryware & Bath - ( ProductsWater closet & bidet, Bath Tube, Basins ,Shower Panels
,Shower Temples & Enclosures,Taps & Showers).
Arts & Artifacts - (Lights & Luminaries, Decorative Lights ,Commercial/Project Lightning,
Art GalleryGlass & Glass ApplicationWall).
And all kind of furniture

RETAIL DIVISION- ENCASAA

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 Insulating Glass Line

• CUTTING LINE – LISEC , AUSTRELLIA

• GRIDING – LISEC , AUSTRELLIA
• WATER JET – LISEC , AUSTRELLIA
• CNC WORK CENTER – INTERMAC , ITALY
• HORIZONTAL TEMPERING LINE – TAMGLASS, FINLAND
• HEAT SOAK – HOAF , NETHERLANDS
• BENDING FURNACE – HOAF , NETHERLANDS
• LAMINATING LINE – BYSTRONIC , GERMANY
• AUTOCLAVE – SCHOLZ, GERMANY
• INSULATING GLASS LINE – LISEC , AUSTRELLIA
• FRAME BENDING & FILLING – LISEC , AUSTRELLIA

GLASS INDUSTRY TRENDS & POTENTIAL

• in 2007, globally 138 million tons of glass were produced. The flat glass market is worth

Sezal Glasss Ltd. Page 17

 €21bn annually. Out of which glass is further processed by laminating, tempering,
coating and silvering, making this a market of $60bn annually. Growth has generally
outpaced real GDP growth, boosted by demand from automotive and construction
sectors, but also by extending the use of glass to new, innovative applications. The flat
glass market alone is predicted to grow by 5% annually.

CHAPTER – 4
REVIEW OF LITERATURE

Rievew Of Literature
Sezal Glasss Ltd. Page 18
Branding

Our origin
• Incorporated in 1998
• Established by Gada family, lead by
Mr. Amrrut S. Gada, a first generation
entrepreneur, and presently the Chairman &
Managing Director of the Company

Our journey till now

• Evolved into a reputed glass processor in the first decade of operations
• Extended into retailing of home and office interiors with Sezal Encasa
• Briefly forayed into float glass manufacturing and exited the business in May
2011; sold the float glass plant to Saint-Gobain Glass India Limited
• Achieved a Market Share of 15% with a dealer network of more than 7,000 pan-India in the
first year of operations itself.
• Also exported glass of International quality in the first year of operations.

Our presence
• Head quartered in Mumbai, Maharashtra
• A world class Glass processing unit located in Silvassa, Union Territory
• Two Sezal Encasa showrooms located in Mumbai, Maharashtra

Our team
• 560 employees
• 7,000 dealers

Our share

Sezal Glasss Ltd. Page 19

• Went Public in 2008-09
• Listed on the National Stock Exchange (Scrip code – SEZAL GLASS) and the
Bombay Stock Exchange (Scrip code – 532993) in India

Our brands

Kool Glass Tone glass Solid Glass

Now : Reputed Brands

Having established the process credibility, it was important for us to create a brand across our
business verticals. Catering to a consumer-linked segment, a reputed brand not only creates a
novel identity in the minds of the customers but also translates into better margins.
We cater to segments,that have been traditionally unorganised. To change the results, one
had to change the game itself. When the value-proposition was measured in terms of price,
we focused on defining ‘superior quality’ as the key differentiator. We opted for the best-in-
the-world Machines and technology (European), even though we had an option of installing
Chinese-made machines (at half the cost!).

Next : Imporve Brancd Recall

We offered a wide range of products and in time with their popularity with the customers,
invested in brand building. Today, we offer in-house brands in glass processing - Solid glass,
Kool glass, Armor glass, Fort glass, Tone glass, Firebaan, Lunaro, Eco series and Fresca. In
the décor segment, we have developed own bands like Oyster and Aainaa. Our innovative

Sezal Glasss Ltd. Page 20

 products have established a decent brand recall with our immediate customers.
Our understanding of the brands and consumer preferences developed over the years
empowered us to build our float glass brand ‘Sezal Glass’ in a short time.
Going forward, we would invest comprehensively in garnering a larger market share for our
branded products. We beilieve that in an evolving market space, where the end customer is
actively involved at each step of the way in home and office decors, the branded segment is
going to be a huge beneficiary. We are ready for the next, as it arrives.

Intelletual Capital

Over the years, glass has evolved into an essential construction material for a greener, new
age office as well as home. Unlike bricks and mortar, the usage of glass is still at an
evolutionary stage. This presents an attractive opportunity for an experienced player like us.
We have gained a vast expertise in understanding glass across its value chain – from float
glass manufacturing to processing to end retailing. Our team comprising of young and
experienced have developed best in glass processes with inbuilt cost efficiency that makes
us confident in creating and delivering greater value to our stakeholders.
With the increased usage of the glass as a green material, owing to its ability to save power,
ensure insulation and deliver aesthetic value to a structure, the potential in processing and
retailing has increased manifolds. Look around, and glass is everywhere – from offices to
airports to bus bodies to partitions to lounges to hotels to solar cells to phone screens – the
potential is simply endless. With each usage comes a new process. For a company as ours,
which takes pride in intellectual capital, the horizon is widening with each passing day.

Deliver Value
Until now, we have been solely focused on float segment, while automotive industry presents
a bigger-margin opportunity. Our understanding of the value chain would empower us foray
into this segment in the coming years. At the same time, we have started focusing on new age
potential user segment like solar photovoltaic cells.

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 In absence of float glass unit we shall be better equipped to remain cost-efficient simply on
account of large capacity
build-up in the Indian float glass industry. We believe that the industry would continue
witnessing higher competition going forward, which will enable us retain our cost-efficiency
relating to the key input as float glass.
Going forward, the focus will be to capitalise on our knowledge and market intellect. Our
confidence emanates from the team that we have woven over the years and our ability to
create value, as we did in the previous decade.

Diverse Clientel
Owing to our ability to provide superior quality, each and every time across our businesses,
we have garnered respect among our diverse clientele. Our focus and expertise in offering
niche as well as regular solutions, customised to the client’s need, budget and end usage has
enabled us become a preferred solutions provider to reputed architects and interior designers
across the country.

During 2010-11, we supplied more than 150,000 sq. mtrs of processed glass. We have catered
to highly reputed companies such as Reliance Industries, Lodha, Brigade Group, Aakruti
Hotels, K. Raheja, etc. We have developed capability to offer diverse processes and finishes to
the glass ranging from 3 mm to 19 mm. Thisenables our processing glass division gauge new
opportunities in terms of repeat and referral clients.
Having set up Sezal Encasa, we focused on clearly defining the scope of the retail business and
its target customers. The idea behind this retail showrooms was to cater to an exclusive
clientele with exclusive and wide range world-class products in the sphere of interior décor. As a
result, the brands to be showcased were selected carefully. We partnered global brands

Widen Reach
such as Duravit and Roca. The diverse products addressing each and every aspect of home
interiors – from bedrooms to bathrooms to livingrooms to kitchen to artefacts to paintings –
were sourced from top of the line brands globally.

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 Having built up a substantial clientele today, we are ready and confident for tomorrow. The
next focus for us would be to broaden our revenues from each of the business verticals. Our
product development vertical would continue playing an active role, in not only introducting
newer processes and finishes. We are currently undertaking a study to define our foray into
newer products in glass. We would also focus on increasing our revenues per client, either by
offering them value added products (increased realisation), or by increasing the business
volume.
The retail business has already started gaining traction. We already have two Sezal Encasa
showrooms at present. Going forward, we wish to expand the operations from Mumbai to
other tier 2 and 3 cities, with an aim to capitalise on the latent demand in housing and real
estate.
Going forward, we would widen our reach and broaden our product portfolio without
compromising on the quality and efficiency parameters that we have set over the years.
The next is fast approaching and we are leading it.

CHAPTER – 5
RESEARCH METHODOLOGY

Research Design
Sezal Glasss Ltd. Page 23
Research methodology is a systematic way to solve the research problems; It refers to
search for knowledge, a scientific and systematic search for information. Finance research
is a systematic design, collection, analysis and reporting of data and finding relevant to a
specific marketing situation facing of the company.

Objectives of Research

Primary objective
• To understand the problem thoroughly
• Rephrasing the same into meaningful terms from an analytical point of view

Secondary objective
• To fill the gap in knowledge
• To resolve contradictory finding
• To test the theoretical prediction

Data Collection

Data Collection means collection of information, facts or figure for the problem.
Primary data collection- Primary data is the first hand information obtained by investigator.
Primary source is the one itself collect the data. Primary data can be collected by observation, by
interviews, by face to face questioning, by using questionnaire, when the needed data do not
exist or are dated inaccurate, incomplete, or unreliable.

Secondary data collection- Secondary data is collected by others already and the research is
using the information for his own research purpose.
Secondary data ca be collected from published report, newspapers, websites, journals,
publication of national and international organization.

Sezal Glasss Ltd. Page 24

Sampling Plan ,Unit , Size and Methods

PROCESSING DIVISION ‐ Infrastructure

Cutting and Edge Delation Line :-

1) Make :
LISEC, AUST
Specification :
 Glass Type : Clear, Tinted, Reflective & Soft Coated
 Glass Thickness : 3 to 19mm
 Max Cut Size : 6000mm x 3000mm
 Per day Capacity : 5000 sqm
Salient Features of Facility :
• Auto Loader, Cutting machine & breakout table
• Suitable for Soft Coated Glasses with on-line edge deletion.
• In-build GPS-opt cutting optimization software
• Laminated Glass Cutting.

2) Make :
LISEC, AUSTRIA
Specification :
• Glass Type : Clear, Tinted, Reflective
• Glass Thickness : 3 to 19mm
• Max Cut Size : 3700mm x
2500mm
• Per Day Capacity : 4000 Sqm.
Salient Features of Facility :
• Automatic, Computer driven Cutting line.
• In-build Li-opt cutting optimization software

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 CUTTING LINE
Make :
LISEC, AUSTRIA
Specification :
• Glass Type : Clear, Tinted, Reflective & Soft Coated
Glass Thickness : 3 to 10mm
• Max Cut Size : 5200mm x 2500mm
Salient Features of Facility :
• Four Side Grinding with Single Reference.
• No gripping or contact on coated side.
• Auto sensing of size.
• Rectangular & Shaped Grinding.
• In-build Washing & Drying Station

AUTOMATIC GRINDING LINE (KSR)

Make :
BAVELLONI, ITALY
Specification :
• Glass Type : Clear, Tinted, Reflective
• Glass Thickness : 3 to 40mm
• Max Conveyer Load : 150 Kg /m
Salient Features of Facility :
• Vertical straight-line diamond edge grinding with 9 wheels
• Grinding of Flat edges with arise.
• Coarse, fine & Crystal Edge Polish

VERTICAL GRINDING LINE (2 NOS)

Make :
INTERMAC, ITALY

Sezal Glasss Ltd. Page 26

 Specification :
• Glass Type : Clear, Tinted, Reflective, Laminated.
• Glass Thickness : 3 to 80mm
• Max Glass Size : 6250mm x 2500mm

Salient Features of Facility :

• 5 axis CNC Work Centre.
• External & Internal Grinding.
• Precision Beveling, Engraving, Drilling, Countersinking, Straight & Shaped Cutting,
Cutouts & Writings

GRINDING & FABRICATION

Make :
TAMGLASS, FINLAND
Specification :
• Glass Type : Clear, Tinted, Reflective & Soft Coated
• Glass Thickness : 3 to19mm
• Max Size of Glass : 3600mm x 2440mm
• Min Size of Glass : 200mm x 250mm
•Production per day : 1400 sqm.
• Glass Standards – ANSI Z97.1-1984 ECE R 43 or equiv.
Salient Features of Facility :
• Forced Convection heating for top.
• Suitable for Soft Coated Low Emissive glass.
• HTF 2436 BCT 10 with 2 Centrifugal & 1 axial blower & 1 compressor.
• Heat strengthening (upto 10mm)

HORIZONTAL TEMPERING LINE

Make :
HOAF, NETHERLANDS
Specification :

Sezal Glasss Ltd. Page 27

 • Glass Type : Clear, Tinted, Reflective & Soft Coated
• Glass Thickness : 3 to19mm
Salient Features of Facility :
Automatic monitoring and control of heat soak cycle.

HEAT SOAK
Make :
BYSTRONIC , GERMANY
Specification :
• Glass Type : Clear, Tinted, Reflective & Soft Coated
• Glass Thickness : Upto 80mm
• Max Size of Glass : 2600mm x 4500mm
• Min Size of Glass : 400mm x 250mm
•Production per day : 1800 sqm.
Salient Features of Facility:
 Washing, Positioning and de-airing suitable for coat glass.
 Suitable for soft glasses with convection heating.
 Multi layer laminates.
 Auto thickness adjustment.
 Contact less high pressure wash.

LAMINATION LINE
Make :
Scholz, Germany
Specification :
• Glass Type : Clear, Tinted, Reflective & Soft Coated
• Glass Thickness : Upto 80mm.
• Max Size of Glass : 2600mm x 4500mm
• Max Load per cycle : 8000 kg
Salient Features of Facility :

Sezal Glasss Ltd. Page 28

• Automatic six stage process control.

LAMINATING AUTOCLAVE
Make :
LISEC, AUSTRIA
Specification :
• Glass Type : Clear, Tinted, Reflective & Soft Coated
• Glass Thickness : 12to52mm
• Max Size of Glass : 3600mm x 2440mm
• Min Size of Glass : 350mm x 180mm
•Production per day : 1700 sqm.

Salient Features of Facility :

• Automatic, Computer driven IGU line.
• Double & Triple Glazing with 1, 2, 3 or 4 sided steps.
• Automatic hydraulic IGU pressing station with tiltable outlet.
• Automatic frame bending for Rectangular & Shaped glasses.
• Automatic application of secondary seal to the IGU.
• Controlled & dust free atmospheric condition

Chapter – 6
Data Analysis and Data Interpretations

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Fanancial Data Anyalysis Meaning:
The process of critical evaluation of the financial information contained in the financial
statements in order to understand and make decisions regarding the operations of the firm is
called ‘Financial Statement Analysis’. It is basically a study of relationship among various
financial facts and figures as given in a set of financial statements, and the interpretation thereof
to gain an insight into the profitability and operational efficiency of the firm to assess its
financial health and future prospects. The term ‘financial analysis’ includes both ‘analysis and
interpretation’. The term analysis means simplification of financial data by methodical
classification given in the financial statements. Interpretation means explaining the meaning and
significance of the data. These two are complimentary to each other. Analysis is useless without
interpretation, and interpretation without analysis is difficult or even impossible.

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Objectives :

Analysis of financial statements reveals important facts concerning managerial performance and
the efficiency of the firm. Broadly speaking, the objectives of the analysis are to apprehend the
information contained in financial statements with a view to know the weaknesses and strengths
of the firm and to make a forecast about the future prospects of the firm thereby, enabling the
analysts to take decisions regarding the operation of, and further investment in, the firm. To be
more specific, the analysis is undertaken to serve the following purposes (objectives):

•To assess the current profitability and operational efficiency of the firm as a whole as well as
its different departments so as to judge the financial health of the firm.

•To ascertain the relative importance of different components of the financial position of the
firm.

•To identify the reasons for change in the profitability/financial position of the firm.

• To judge the ability of the firm to repay its debt and assessing the short-term as well as the
long-term liquidity position of the firm. Through the analysis of financial statements of various
firms, an economist can judge the extent of concentration of economic power and pitfalls in the
financial policies pursued. The analysis also provides the basis for many governmental actions
relating to licensing, controls, fixing of prices, ceiling on profits, dividend freeze, tax subsidy
and other concessions to the corporate sector. It also helps the management in self-appraisal and
the shareholders (owners) and others to judge the performance of the management.

Financial statement analysis is very aptly defined by Bernstein as, “a judgmental process
which aims to estimate current and past financial positions and the results of the operation of an
enterprise, with primary objective of determining the best possible estimates and predictions
about the future conditions.” It essentially involves regrouping and analysis of information
provided by financial statements to establish relationships and throw light on the points of
strengths and weaknesses of a business enterprise, which can be useful in decision-making
involving comparison with other firms (cross sectional analysis) and with firms’ own
performance, over a time period (time series analysis).

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Financial statement analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing relationships between the various items of the
balance sheet and the profit and loss account. Financial statement analysis can be undertaken by
management of the firm, or by parties outside the firm, viz. owners, trade creditors, lenders,
investors, labour unions, analysts and others. The nature of analysis will differ depending on the
purpose of the analyst. A technique frequently used by an analyst need not necessarily serve the
purpose of other analysts because of the difference in the interests of the analysts. Financial
statement analysis is useful and significant to different users in the following ways

(a)Finance manager: Financial statement analysis focuses on the facts and relationships
related to managerial performance, corporate efficiency, financial strengths and weaknesses and
creditworthiness of the company. A finance manager must be well-equipped with the different
tools of analysis to make rational decisions for the firm. The tools for analysis help in studying
accounting data so as to determine the continuity of the operating policies, investment value of
the business, credit ratings and testing the efficiency of operations. The techniques are equally
important in the area of financial control, enabling the finance manager to make constant reviews
of the actual financial operations of the firm to analyse the causes of major deviations, which
may help in corrective action wherever indicated.

(b)Top management: The importance of financial statement analysis is not limited to the
finance manager alone. Its scope of importance is quite broad which includes top management in
general and the other functional managers.

Management of the firm would be interested in every aspect of the financial analysis. It is their
overall responsibility to see that the resources of the firm are used most efficiently, and that the
firm’s financial condition is sound. Financial statement analysis helps the management in
measuring the success or otherwise of the company’s operations, appraising the individual’s
performance and evaluating the system of internal control.

(c)Trade creditors: A trade creditor, through an analysis of financial statements, appraises

not only the urgent ability of the company to meet its obligations, but also judges the probability
of its continued ability to meet all its financial obligations in future. Trade creditors are
particularly interested in the firm’s ability to meet their claims over a very short period of time.
Their analysis will, therefore, confine to the evaluation of the firm’s liquidity position.
Sezal Glasss Ltd. Page 32
(d)Lenders: Suppliers of long-term debt are concerned with the firm’s long-term solvency
and survival. They analyse the firm’s profitability overtime, its ability to generate cash to be able
to pay interest and repay the principal and the relationship between various sources of funds
(capital structure relationships). Long-term tenders do analyse the historical financial statements.
But they place more emphasis on the firm’s projected financial statements to make analysis
about its future solvency and profitability.

(e)Investors: Investors, who have invested their money in the firm’s shares, are interested
about the firm’s earnings. As such, they concentrate on the analysis of the firm’s present and
future profitability. They are also interested in the firm’s capital structure to ascertain its
influences on firm’s earning and risk. They also evaluate the efficiency of the management and
determine whether a change is needed or not. However, in some large companies, the
shareholders’ interest is limited to decide whether to buy, sell or hold the shares.

(f)Labour unions: Labour unions analyze the financial statements to assess whether it can
presently afford a wage increase and whether it can absorb a wage increase through increased
productivity or by raising the prices.

(g)Others: The economists, researchers, etc. analyze the financial statements to study the
present business and economic conditions. The government agencies need it for price
regulations, taxation and other similar purposes.

Tools of Financial Analysis

The most commonly used techniques of financial statement analysis are as follows:

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1. Comparative Statements: These are the statements showing the profitability and
financial position of a firm for different periods of time in a comparative form to give an idea
about the position of two or more periods. It usually applies to the two important financial
statements, namely, Balance Sheet and Income Statement prepared in a comparative form. The
financial data will be comparative only when same accounting principles are used in preparing
these statements. If this is not the case, the deviation in the use of accounting principles should
be mentioned as a footnote. Comparative figures indicate the trend and direction of financial
position and operating results. This analysis is also known as ‘horizontal analysis’.

2. Common Size Statements: These are the statements which indicate the relationship of
different items of a financial statement with some common item by expressing each item as a
percentage of the common item. The percentage thus calculated can be easily compared with the
results corresponding percentages of the previous year or of some other firms, as the numbers are
brought to common base. Such statements also allow an analyst to compare the operating and
financing characteristics of two companies of different sizes in the same industry. Thus,
common-size statements are useful, both, in intra-firm comparisons over different years and also
in making inter-firm comparisons for the same year or for several years. This analysis is also
known as ‘Vertical analysis’.

3. Trend Analysis: It is a technique of studying the operational results and financial position
over a series of years. Using the previous years’ data of a business enterprise, trend analysis can
be done to observe the percentage changes over time in the selected data. The trend percentage is
the percentage relationship, which each item of different years bear to the same item in the base
year. Trend analysis is important because, with its long run view, it may point to basic changes
in the nature of the business. By looking at a trend in a particular ratio, one may find whether the
ratio is falling, rising or remaining relatively constant. From this observation, a problem is
detected or the sign of good management is found.

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4. Ratio Analysis: It describes the significant relationship which exists between various items
of a balance sheet and a profit and loss account of a firm. As a technique of financial analysis,
accounting ratios measure the comparative significance of the individual items of the income and
position statements. It is possible to assess the profitability, solvency and efficiency of an
enterprise through the technique of ratio analysis.

5. Cash Flow Analysis: It refers to the analysis of actual movement of cash into and out of
an organization. The flow of cash into the business is called as cash inflow or positive cash flow
and the flow of cash out of the firm is called as cash outflow or a negative cash flow. The
difference between the inflow and outflow of cash is the net cash flow. Cash flow statement is
prepared to project the manner in which the cash has been received and has been utilized during
an accounting year as it shows the sources of cash receipts and also the purposes for which
payments are made. Thus, it summarizes the causes for the changes in cash position of a business
enterprise between dates of two balance sheets.

Here financial statements of SGL are analysed with the help of:

1. Comparative Statements & Trend Analysis

2. Ratio Analysis

RATIO ANALYSIS:
The relationship between two accounting figures, expressed mathematically, is known as
financial ratio (or simply as a ratio). Ratio helps to summarise large quantities of financial data
and to make qualitative judgment about firm’s financial performance .The ratio analysis is the
most powerful tool of financial analysis. Many diverse groups of people are interested in
analysing the financial information to indicate the operating and financial efficiency, and growth
of the firm.
Ratio analysis plays an important role in the corporate world. It is a widely used tool of financial
analysis. Ratio Analysis is relevant in assessing the performance of a firm in respect of liquidity
position, long-term solvency, operating efficiency, overall profitability, inter-firm comparison
and trend analysis.
With the help of ratio analysis, one can determine:

Sezal Glasss Ltd. Page 35

  The ability of firm to meet its current obligations;
 The extent to which the firm has used its long term solvency by barrowing funds ;
 The efficiency with which the firm is utilising its assets in generating sales revenue , and
 The overall operating efficiency and performance of the firm.

Fig.1: Uses of Ratio Analysis

LIQUIDITY RATIOS:

 Liquidity ratios measure the firm’s ability to meet current obligations.  It is extremely
essential for a firm to be able to meet its obligations as they become due liquidity ratio's

Sezal Glasss Ltd. Page 36

 measure.  The ability of the firm to meet its current obligations.  In fact analysis is of
liquidity needs in the preparation of cash budgets and cash and funds flow statements, but
liquidity ratios by establishing a relationship between cash and other current assets to
current obligations provide a quick measure of liquidity. Main types of liquidity ratios are

1. Current ratio 2. Acid Test Ratio/Quick ratio

3. Cash Ratio 4. Net Working Capital Ratio

Current Ratio
The ratio is worked out by dividing the current assets of the concern by its current liabilities.

CURRENT RATIO = CURRENT ASSETS/ LIABILITIES

LIABILITIES

Current ratios indicate the relation between current assets and current liabilities. Current
liabilities represent the immediate financial obligations of the company. Current assets are the

Sezal Glasss Ltd. Page 37

sources of repayment of current liabilities. Therefore, the ratio measures the capacity of the
company to meet financial obligation as and when they arise. Textbooks claim a ratio of 1.5 to 2
is ideal.

Acid Test Ratio/Quick Ratio :

Quick assets represent current assets excluding stock and prepaid expenses. Stock is excluded
because it is not immediately realizable in cash. Prepaid expenses are excluded because they
cannot be realized in cash.

QUICK RATIO= (CA–INVENTORIES)/CURRENT LIABILITIES

One of the defects of current ratio is that it does not measure accurately to meet financial
commitments as and when they arise. This is because the current assets include also items that
are not easily realizable, such as stock. The acid test ratio is a refinement of current ratio and is
calculated to measure the ability of the company to meet the liquidity requirements in the

Sezal Glasss Ltd. Page 38

immediate future. A minimum of 1: 1 is expected which indicates that the concern can fully meet
its financial obligations. This also called as Liquid ratio or Quick ratio.

Cash Ratio:

Since cash is the most liquid asset, a financial analyst may examine cash ratio and its equivalent
to of cash ratio.

CASH RATIO=CASH & BANK BALANCE/CURRENT LIABILITIES

NET WORKING CAPITAL RATIO:

The difference between current assets and current liabilities excluding short term bank
borrowing is called net working capital or net current assets. 

NET W.C RATIO = NET WORKING CAPITAL / NET ASSETS

The use of this ratio is two fold. First, it can be used to measure the efficiency of the use of
working capital in the unit. Secondly, it can be used as a base for measuring the requirements of
working capital for an expected increase in sales.

LIVERAGE RATIOS:

The short term creditors, like bankers and suppliers of raw material are more concerned with the
firms current debt paying ability.  On the other hand, long term creditors like debenture holders,
financial institutions etc. are more concerned with firms long term financial strength.  In fact a
firm should have short as well as long term financial position.  To judge the long term financial
position of the firm, financial leverage or capital structure, ratios are calculated.  These ratios
indicate mix of funds provided by owners and lenders.  As a general rule, there should be an

Sezal Glasss Ltd. Page 39

appropriate mix of debt and owners equity in financing the firm's assets. Main types of leverage
ratios are:

1. Debt Ratio

2. Debt Equity Ratio

3. Capital employed to net worth ratio

DEBT RATIO:
Several debt ratios may be used to analyse the long term solvency of the firm.  It may therefore
compute debt ratio by dividing total debt by capital employed or net assets.

DEBT RATIO = TOTAL DEBT / NET ASSETS

DEBT EQUITY RATIO:

It is computed by dividing long term borrowed capital or total debt by Share holders fund or net
worth.

DEBT EQUITY RATIO = TOTAL DEBT / NET WORTH

CAPITAL EMPLOYED TO NET WORTH RATIO:

There is a alternative way of expressing the basic relationship between debt and equity.  It helps
in knowing, how much funds are being contributed together by lenders and owners for each
rupee of owner's contribution.  This can be found out by calculating the ratio of capital employed
or net assets to net worth.

CAPITAL EMPLOYED TO NETWORTH RATIO = CA / NW

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TURNOVER/ACTIVITY RATIOS:

Funds of creditors and owners are invested in various assets to generate sales and profits. 
The better the management of assets, the larger is an amount of sales. 

Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes
its assets these ratios are also called turnover ratios because they indicate the speed with which
assets are being converted or turned over into sales.  Activity ratios, thus, involve a relationship
between sales and assets.  A proper balance between sales and assets generally reflects that
assets are managed well

INVENTORY TURNOVER RATIO:

The ratio is usually expressed as number of times the stock has turned over. Inventory
management forms the crucial part of working capital management. As a major portion of the
bank advance is for the holding of inventory, a study of the adequacy of abundance of the stocks
held by the company in relation to its production needs requires to be made carefully by the
bank.

Sezal Glasss Ltd. Page 41

 A higher ratio may mean (higher turnover or less holding periods):

 The stocks are moving well and there is efficient inventory management; or the stocks
are purchased in small quantities. This may be harmful if sufficient quantities are not
available for production needs; secondly, buying in small quantities may increase the
cost. Contrarily, a lower ratio (i.e. lower turnover of longer holding period may be an index of :
 Accumulation of large stocks not commensurate with production requirements

 A reflection of inefficient inventory management or over-valuation of stocks for balance

sheet purposes; or Stagnation in sales, if stocks comprise mostly finished goods.

Inventory turnover ratio indicates the efficiency of the firm in producing and selling its product. 
It is calculated by dividing Net Sales by average inventory.  Average inventory consists of
opening stock plus closing stock divided by 2.

INVENTORY TURNOVER RATIO = SALES / AVERAGE INVENTORY

NET ASSETS TURNOVER RATIO:

A firm should manage its assets efficiently to maximise sales.  The relationship between sales
and (fixed or current) assets is called (fixed or current) assets turnover ratio.  A lower ratio may
indicate inefficiency of assets. It may also be indicative of under utilizations or non-utilization of
certain assets. Thus with the help of this ratio, it is possible to identify such underlined or
unutilised assets and arrange for their disposal.

 FA TURNOVER RATIO= SALES / FIXED ASSETS

 CATURNOVER RATIO= SALES/ CURRENT ASSETS

WORKING CAPITAL TURNOVER RATIO:

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A firm may also like to relate net current assets to sales.  It may thus compute net working
capital turnover by dividing sales by net working capital.

WORKING CAPITAL TURNOVER RATIO = SALES / NCA

PROFITABILITY RATIOS:

A company should earn profits to survive and grow over a long period of time.  Profits are
essential but it would be wrong to assume that every action initiated by management of a
company should be aimed at maximizing profits, irrespective of social consequences.

Profit is the difference between revenues and expenses over a period of time.  Profit is the
ultimate output of a company and it will have no future if it fails to make sufficient profits. 
Therefore, the financial manager should continuously evaluate the efficiency of the company in
terms of profits.  The profitability ratios are calculated to measure the operating efficiency of the
company.

The major types of profitability ratios are:

1. Profitability in relation to sales

2. Profitability in relation to investment
 Gross profit margin ratio
 Net profit margin ratio
 Operating expenses ratio
 Return on Investment
 Return on equity
 Earning per share
 Dividends per share
 Dividend pay out ratio
 Price earning ratio

Sezal Glasss Ltd. Page 43

 Viewpoint of Shareholders

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 Significance of Profitability Ratios

GROSS PROFIT RATIO:

It is calculated by dividing gross profit by sales.  The gross profit margin reflects the efficiency
with which management produces each unit of product.  This ratio indicates the average spread
between the cost of goods sold and the sales revenue.

GROSS PROFIT RATIO = GROSS PROFIT (EBIDTA) / SALES

NET PROFIT RATIO:

Net profit is obtained when operating expenses, interest and taxes are subtracted from the gross
profit.  The net profit margin is measured by dividing profit after tax or net profit by sales.

NET PROFIT RATIO= NET PROFIT (PAT)/SALES

Key Ratios

Years Mar-11 Mar-10 Mar-09 Mar-08 Mar-07

Debt-Equity Ratio 4.0 2.6 1.9 2.1 2.3

Long Term Debt-Equity Ratio 3.2 1.9 1.3 1.5 1.4

Current Ratio 0.7 0.6 0.7 0.8 0.5

Fixed Assets 0.7 0.5 0.7 1.2 1.2

Inventory 6.9 2.2 3.7 4.9 5.8

Debtors 11.1 2.2 2.7 3.6 3.9

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 Interest Cover Ratio -0.5 1.6 1.8 2.5 3.1

PBIDTM (%) 3.3 18.6 19.8 20.6 16.2

PBITM (%) -9.9 13.1 15.2 17.1 13.4

PBDTM (%) -18.7 10.6 11.5 13.8 11.8

CPM (%) -8.0 12.8 9.5 11.0 9.0

APATM (%) -21.3 7.2 4.8 7.5 6.2

ROCE (%) 0.0 1.1 2.9 10.9 18.1

RONW (%) 0.0 2.2 2.6 14.0 24.7

PE 0.0 101.5 30.5 0.0 0.0

EBIDTA 10.1 7.4 10.0 12.8 7.1

DivYield 0.0 0.0 0.0 0.0 0.0

PBV 0.8 1.4 0.4 0.0 0.0

EPS 0.0 0.8 0.8 2.3 2.5

Sezal Glass Ltd. Ratios (Last Five Year)

(Rs Crore)
  Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Dec ' 07
Per share

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ratios
Adjusted EPS
-1.88 -0.13 1.09 2.30 2.57
(Rs)
Adjusted cash
-0.68 0.78 1.99 3.45 3.44
EPS (Rs)
Reported EPS
-1.92 0.87 0.80 2.50 2.57
(Rs)
Reported cash
-0.72 1.80 1.70 3.65 3.44
EPS (Rs)
Dividend
- - 0.55 -
per share
Operating
profit per share 0.30 1.45 2.86 4.95 4.26
(Rs)
Book value
(excl rev res) 3.61 54.30 50.70 17.96 27.31
per share (Rs)
Book value
(incl rev res) 8.46 54.30 50.70 17.96 27.31
per share (Rs.)
Net operating
income per 8.34 15.67 17.31 29.10 22.77
share (Rs)
Free reserves
2.61 44.30 40.70 7.96 -
per share (Rs)
Profitability
ratios
Operating
3.63 9.28 16.53 16.99 18.70
margin (%)
Gross profit
-10.70 3.40 11.37 13.04 14.85
margin (%)
Net profit
-22.84 5.51 4.39 8.12 10.53
margin (%)
Adjusted cash
-8.17 4.95 10.81 11.20 14.13
margin (%)

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Adjusted return
on net worth -52.18 -0.24 2.15 12.79 9.39
(%)
Reported
return on net -53.22 1.61 1.59 13.92 9.39
worth (%)
Return on long
-4.62 0.38 2.52 8.06 6.51
term funds (%)
Leverage
ratios
Long term debt
3.95 2.67 1.22 1.39 1.79
/ Equity
Total
5.15 3.31 1.83 1.95 1.79
debt/equity
Owners fund as
% of total 16.24 23.20 35.34 33.95 35.84
source
Fixed assets
0.31 0.46 0.47 0.94 0.72
turnover ratio
Liquidity
ratios
Current ratio 1.41 1.10 1.44 1.31 2.62
Current ratio
0.57 0.44 0.38 0.81 2.62
(inc. st loans)
Quick ratio 0.60 0.80 1.22 1.11 2.16
Inventory
5.56 1.74 3.97 4.14 2.61
turnover ratio
Payout
ratios
Dividend
payout ratio - - - 38.30 -
(net profit)
Dividend - - - 26.23 -
payout ratio

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(cash profit)
Earning
- 100.00 100.00 58.32 100.00
retention ratio
Cash earnings
- 100.00 100.00 72.23 100.00
retention ratio
Coverage
ratios
Adjusted cash
flow time total - 228.29 49.65 15.97 14.20
debt
Financial
charges 0.18 1.28 2.44 2.93 3.77
coverage ratio
Fin. charges
[Link] (post 0.63 2.37 2.06 2.62 3.22
tax)
Component
ratios
Material cost
component (% 71.66 60.64 57.75 68.21 60.97
earnings)
Selling cost
17.96 6.00 4.49 2.85 -
Component
Exports as
percent of total 4.86 2.27 3.47 8.43 -
sales
Import comp.
in raw mat. 49.39 51.56 48.94 50.35 -
consumed
Long term
assets / total 0.74 0.85 0.80 0.53 0.47
Assets
Bonus 13.41 15.62 16.07 23.92 -
component in

Sezal Glasss Ltd. Page 49

equity capital
(%)

Sezal Glass Ltd. Annual Result In Brief ( Last Five Year)

(Rs crore)
Annual results in brief
  Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
Sales 100.29 282.67 50.90 51.90 54.72
Operating
-10.42 10.61 8.17 10.04 8.67
profit
Interest 24.59 66.74 3.19 3.77 3.88
Gross profit -27.05 -56.13 4.98 6.27 8.53
EPS (Rs) -15.69 -19.19 0.76 0.97 2.47

Annual results in details

  Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
Other income 7.96 - - - 3.75
Stock adjustment -6.03 -11.52 -0.27 0.30 -0.47
Raw material 61.33 190.31 14.94 20.79 27.60
Power and fuel - - - - -
Employee expenses 8.14 11.74 3.21 3.87 3.66
Excise - - - - -
Admin and selling expenses - - - - -
Research and development
- - - - -
expenses
Expenses capitalised - - - - -
Other expenses 47.26 81.52 24.85 16.90 15.27
Provisions made - - - - -
Depreciation 9.92 40.09 2.65 2.50 2.16
Taxation 2.84 -32.32 -1.21 0.91 1.72
Net profit / loss -52.64 -64.40 2.19 2.72 4.65

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Extra ordinary item -12.83 -0.50 -1.35 -0.14 -
Prior year adjustments - - - - -
Equity capital 33.55 33.55 28.80 28.00 18.81
Equity dividend rate - - - - -
[Link] non-prom. shares
152.48 1509.85 130.81 132.18 42.16
(Lacs)
[Link] non promotoHolding
45.45 45.00 45.42 47.20 22.42
(%)
OPM (%) -10.39 3.75 16.05 19.34 15.84
GPM (%) -24.99 - - - 14.59
NPM (%) -48.63 - - - 7.95

Sezal Glass Ltd .Capital structure (Last Five Year )

(Rs crore)
Authorized Paid Up Shares
From Year To Year Class Of Share Issued Capital
Capital (Nos)
2010 2011 Equity Share 60.00 33.55 335500000
2009 2010 Equity Share 45.00 28.80 28800000
2008 2009 Equity Share 33.00 28.00 28000000
2007 2008 Equity Share 33.00 18.81 18805845
2006 2007 Equity Share 33.00 10.34 10335000
2006 2007 Equity Share 33.00 18.81 18805845

Sezal Glass Ltd. Profit loss account (last Five Year )

(Rs crore)

  Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Dec ' 07
Income
Operating income 279.67 45.14 48.47 54.72 41.66

Sezal Glasss Ltd. Page 51

  Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Dec ' 07
Expenses
Material consumed 188.54 27.39 28.25 34.35 24.93
Manufacturing expenses  4.25 2.23 2.47 2.84 0.93
Personnel expenses 13.58 4.77 4.23 3.85 2.80
Selling expenses 50.26 2.71 2.18 1.56 -
Adminstrative expenses 12.89 3.85 3.32 2.82 5.21
Expenses capitalised - - - - -
Cost of sales 269.52 40.95 40.45 45.42 33.87
Operating profit 10.16 4.19 8.01 9.30 7.79
Other recurring income 2.24 0.66 2.96 3.15 2.89
Adjusted PBDIT 12.40 4.85 10.97 12.45 10.69
Financial expenses 66.74 3.79 4.50 4.24 2.84
Depreciation  40.09 2.65 2.50 2.16 1.60
Other write offs - - - - -
Adjusted PBT -94.43 -1.60 3.97 6.04 6.25
Tax charges  -31.29 -1.21 0.91 1.72 1.55
Adjusted PAT -63.14 -0.39 3.06 4.32 4.70
Non recurring items -1.04 -1.35 -1.12 0.33 -
Other non cash
-0.22 3.93 0.31 -0.01 -
adjustments
Reported net profit -64.40 2.19 2.26 4.65 4.70
Earnigs before
-54.98 9.42 6.42 6.41 4.70
appropriation
Equity dividend - - - 1.54 -
Preference dividend - - - - -
Dividend tax - - - 0.26 -
Retained earnings -54.98 9.42 6.42 4.61 4.70

Sezal Glass [Link] sheet (Last Five Year )

(Rs crore)
  Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Dec ' 07
Sources of funds
Owner's fund

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Equity share capital 33.55 28.80 28.00 18.81 18.30
Share application money 1.45 4.20 - - 0.05
Preference share capital - - - - -
Reserves & surplus 87.44 127.59 123.00 34.45 31.67
Loan funds
Secured loans 551.43 460.21 266.51 86.32 72.42
Unsecured loans 72.18 57.34 9.66 17.27 17.02
139.46
Total 746.06 678.14 427.17 156.85

Uses of funds
Fixed assets
Gross block 887.69 97.57 102.79 58.10 57.15
Less : revaluation reserve 162.69 - - - -
Less : accumulated
52.38 12.29 8.64 6.14 5.58
depreciation
Net block 672.62 85.29 94.15 51.96 51.57
Capital work-in-progress 5.03 582.88 295.42 61.85 31.90
Investments 0.09 0.06 0.06 0.06 0.06
Net current assets
Current assets, loans &
236.46 113.63 93.59 99.22 90.52
advances
Less : current liabilities &
168.14 103.71 65.10 75.72 34.58
provisions
Total net current assets 68.32 9.92 28.50 23.50 55.93
Miscellaneous expenses not
- - 9.05 19.48 -
written
Total 746.06 678.14 427.17 156.85 139.46
Notes:
Book value of unquoted
0.04 0.01 0.01 0.01 -
investments
Market value of quoted
0.05 0.05 0.03 0.05 -
investments
Contingent liabilities 1,038.65 20.18 219.70 0.83 -
Number of equity
3355.00 288.00 280.00 188.06 182.96
sharesoutstanding (Lacs)

Sezal Glasss Ltd. Page 53

 CHAPTER – 7

FINDINGS

Findings And Observation

According to my observation Sezal Glass limited.

It is a vision of the sezal groupe to create a barand image for sezal that evokes a sense of awe,
blind faith and insipration and to achieve for itself the position of industry leader in the field of
float glass manufacuting, by investing into intigrated oprations and deliever world – class
product.
Processes , oprating systems and the procedures shall be adopted with the objective of surpassing
exacting international standards for products and systems.
Creating and multiplying wealth of the company with continuous expansion for a better future of
all stake holders.

Peer Comparison

P/BV
P/E EV/EBIDT
Market Cap (TTM ROE ROCE D/E
Company (TTM) A
(Rs. in Cr.) ) (%) (%) (x)
(x) (x)
(x)

[Link] 1,720.80 23.73 1.61 10.81 8.5 9.0 0.92

Asahi India Glas 1,102.51 0.00 6.91 8.72 -31.1 6.5 3.88

Piramal Glass 773.10 12.56 1.60 4.40 17.0 30.5 0.34

Shreno Ltd 433.52 0.00 6.92 0.00 0.0 0.0 0.54

Empire Inds. 396.66 10.41 4.84 5.86 51.6 40.4 0.15

Sezal Glasss Ltd. Page 54

Saint-Gob. Sekur 312.96 59.22 4.32 22.40 6.7 10.2 0.00

Borosil Glass 265.45 8.25 0.43 7.40 3.2 3.9 0.00

La Opala RG 130.27 10.04 2.35 4.81 25.0 31.7 0.34

Haldyn Glass 89.25 3.35 1.15 2.78 31.1 28.2 0.69

Guj. Borosil 38.12 0.00 0.98 0.00 0.0 0.0 0.41

Sezal Glass 25.83 0.00 0.20 71.50 0.0 0.0 4.03

Excel Glasses 20.11 0.00 -1.32 36.50 -4.5 -0.8 44.30

Banaras Beads 18.80 3.81 0.51 1.73 11.3 15.2 0.00

Victory Glass 15.61 0.00 0.56 0.00 2.8 10.6 1.26

Haryana Sheet 15.20 0.00 -0.13 295.77 0.0 0.0 0.00

CHAPTER – 8

LIMITATIONS

Sezal Glasss Ltd. Page 55

Limitations of Financial Statement Analysis:

Though financial statement analysis is quite helpful in determining financial strengths and
weaknesses of a firm, it is based on the information available in financial statements. As such,
the financial statement analysis also suffers from various limitations of financial statements.
Hence, the analyst must be conscious of the impact of price level changes, window dressing of
financial statements, changes in accounting policies of a firm, accounting concepts and
conventions, personal judgments, etc.

Some other limitations of financial statement analysis are:

1. Financial statement analysis does not consider price level changes.

2. Financial statement analysis may be misleading without the knowledge

of the changes in accounting procedure followed by a firm.

3. Financial statement analysis is just a study of interim reports.

4. Monetary information alone is considered in financial statement analysis

while non-monetary aspects are ignored.

5. The financial statements are prepared on the basis of on-going

concept, as such, it does not reflect the current position.

CHAPTER – 9

RECOMMENDATION AND SUGGESTIONS

Sezal Glasss Ltd. Page 56

 COPIES OF QUESTIONNAIR

COPIES OF FORM OR FROM THE COMPANY

BIBLIOGRAPHY

Recommendation And Suggesions

Every coin has two sides, so is the case with financial statement analysis. It is user friendly tool
for knowing financial status of a firm, but it has certain limitations in terms of lack of
information regarding non-monetary aspects, price level change etc. Hence it is recommended
that one should be cautious while using financial statement analysis and should also consider the
effects of:
 Price level changes,
 Non-monetary aspects,
 Accounting policies of the firm and
 Changes in accounting procedures and standards followed by the firm.

Bibliography

Sezal Glasss Ltd. Page 57

1. [Link]

(for SGL’s Annual Reports, Company Profile etc.)

1. [Link]
(for information on current trends in usage of F.S.A.)

2. [Link]
(for definition of certain financial terms)

3. [Link]
(for info. on performance and expectations of investors from SGL)

QUESTIONNAIRE

Sezal Glasss Ltd. Page 58

Customer Survey: Questionnaire

 Name:Date: 

Name of interviewer:
1. What is your age?
Less Than 18 _ 
18-23 years _ 
23-28 years _
 28-45 years _ 
Greater Than 45 _
2. What is your occupation?
Government Service _ 
Private Service _ 
Business Self-Employed _ 
Student
[Link] type of Glasses you preferred to buy for your home and offices ?
Clear-
Tinted-
Reflective & Soft Coated-
4. Which brands of Glaases you are aware of?
Kool glasses
Tone Glass
Lunaro glass
Fire Ban
Krasa
AAINAA
Others

5. Which of the following brands are you using?

Philips
Havells

Sezal Glasss Ltd. Page 59

Regent
Fabbian
Vistosi
TOTO
Roca
Others
[Link] do you know about Reliance broadband?
1-Friends ___ _ 
2-Family ___ _ 
3-Retailer ___ _ 
4-Advertisements ___ _ 
5-Packaging ___ _ 
6-Magazines or newspapers ___ _ 
7-Cyber café ___ _ 
[Link] satisfied are you with Sezal glasses ? (If used)
Highly Satisfied _ 
Moderately Satisfied _  
Neither satisfied nor dissatisfied _
 Moderately Dissatisfied _ 
Highly dissatisfied _ 

Sezal Glasss Ltd. Page 60

Sezal Glasss Ltd. Page 61