ANALYSIS OF FINANCIAL PERFORMANCE OF GOLD LOAN

COMPANIES (WITH SPECIAL REFERENCE TO MUTHOOT

FINANCE LIMITED AND MANAPPURAM FINANCE LIMITED)

Research Project Submitted in Partial Fulfilment of the Requirements for the

Degree of

BCOM Honours

SIMRAN SINGH

To The

DEPARTMENT OF COMMERCE

BHOPAL SCHOOL OF SOCIAL SCIENCES

APRIL, 2021

Submitted by: Guided by:

Simran Singh Vinod Kumar Adwani

Assistant Professor

Department of Commerce

CERTIFICATE

It is certified that the work contained in the project report titled Analysis of

Financial Performance of Gold Loan Companies (with special reference to

Muthoot finance Limited and Manappuram Finance Limited) by Simran

Singh, has been carried out under my/our supervision and that this work has not

been submitted elsewhere for a degree*

Signature of Supervisor: …………….

Name: Vinod Kumar Adwani, Assistant Professor

Department: Commerce

The Bhopal School of Social Sciences

April, 2021

DECLARATION

I hereby declare that this project report entitled Analysis of Financial

Performance of Gold Loan Companies (with special reference t0 Muthoot

Finance Ltd. And Manappuram Finance Ltd.) was carried out by me for the

degree of BCOM Honours under the guidance and supervision of Mr. Vinod

Kumar Adwani, assistant professor of Department of Commerce, BSSS College.

The interpretations put forth are based on my reading and understanding of the

original texts and they are not published anywhere in any form. The other books,

articles and websites, which I have made use of are acknowledged at the

respective place in the text. This research report is not submitted for any other

degree or diploma in any other University.

Place: Bhopal

Name of the Student: Simran Singh

Class & Section: B.com(honours) ‘A’

Date: 15/04/2021

ACKNOWLEDGEMENT

I would like to thank our Principal Dr. Fr. John P.J. and Vice Principal Dr Sr

Sonia Kurien for their immense support and blessings. I thank our HOD Dr Amit

Kumar Nag for his support. I would like to express my special thanks of gratitude

to my research guide Mr. Vinod Kumar Adwani, assistant professor of

Department of Commerce for her valuable suggestions and guidance and for

giving me the golden opportunity to do this wonderful research project on the

topic: Analysis of Financial Performance of Gold Loan Companies (with special

reference to Muthoot Finance Ltd. and Manappuram Finance Ltd.) Without his

help it would have been difficult for me to have reached this state of completion

of my project report. Also, I would like to thank my parents and friends who

helped me a lot in the preparation of this project.

I wish to acknowledge the help of all those who have provided me information,

guidance and other help during my research period.

TABLE OF CONTENTS

PARTICULARS

Page No.

Chapter 1: Introduction of the Topic

1.1 Rationale of the Study

1.2 Introduction to the Industry

1.3 Introduction of the Company

1.4 Justification of the topic

Chapter 2: Review of Literature

2.1 National Reviews

2.2 International reviews

Chapter 3: Research methodology

3.1 Objectives of the Study

3.2 Research Hypothesis

3.3 Scope of the study

3.4 Type of Research

3.5 Limitations of the Study

Chapter 4: Data Representation and Analysis

4.1 Data Representation and Interpretation

4.2 Hypothesis Testing

Chapter 5: Results and Discussions

5.1 Major Findings

5.2 Discussions and Suggestions

5.3 Conclusion

Bibliography

Annexure

CHAPTER-1

INTRODUCTION OF THE TOPIC

1.1 RATIONALE OF THE STUDY

Among the entire asset class, gold is one of the most valuable commodities. Gold has

sentimental and social importance in India. It has been used as a collateral asset for borrowing

money since ancient times. Previously, the gold loan industry was dominated by unorganised

players. The structured gold loan company is now one of the fastest-growing lending segments

for Non-Banking Financial Companies (NBFCs) and banks in India. In the last decade, the

organised sector has experienced unprecedented growth. The Reserve Bank of India (RBI)

recently updated a number of regulations, and other external factors have had a negative impact

on the segment's market growth and financial efficiency. The analysis is descriptive,

comparative and empirical in nature. The aim of this study is to examine and compare the

financial performance of a number of listed gold loan non-banking financial companies in India

.Muthoot Finance Ltd. and Manappuram Finance Ltd. were used as a sample, and the research

spanned five financial year from 2015-16 to 2019-20. To achieve the study's goals, the

financial ratios, and mean tools were used.

1.2 INTRODUCTION TO THE INDUSTRY

A Non-Banking Financial Corporation (NBFC) is a company registered under the Companies

Act of India, 2013, engaged in loan and advance transactions, share acquisitions, stocks of

shares, bonds, hire insurance or chit funds transactions, but does not include an institution that

has a principal transactions as agriculture, industrial activity or purchase or selling any

commodity (other than securities) or provide any services for the sale/purchase/building of real

estate .

In the framework of the Reserve Bank of India Act (1934, Chapter III-B) and the instruction

issued therefrom, the NBFCs are regulated for their operation and operations by the RBI

(reserve bank of India). On November 9, 2017, the Reserve Bank of India (RBI) released a

notification detailing the rules for non-bank financial institutions outsourcing functions and

services (NBFCs) NBFCs cannot outsource core management functions including internal

audit, investment portfolio management, strategic and regulatory functions for know your

customer (KYC) norms and loan sanctioning under the new regulations. Service providers'

employees should only have access to customer information to the degree that it is necessary

to perform the outsourced role. A code of conduct for direct sales and recovery agents should

be approved by the boards of NBFCs. For debt assortment, NBFCs and their outsourced agents

mustn't resort to intimidation or harassment of any kind. All NBFCs’ are directed to line up a

grievance redressal machinery, which can additionally take care of the problems about services

provided by the outsourced agency.

History of NBFCs

The Reserve Bank of India Act, 1934 revised on 1 December 1964 by Reserve Bank

Amendment Act, 1963. In this new 'Chapter III-B' presented to Regulate 'Deposit Accepting'

NBFCs. Different sorts of Committees to Survey existing system of NBFCs.

 James S. Raj Committee

In early 1970s Government of India inquired Banking Commission to Ponder the Working of

Chit Stores and Analysing exercises of Non-Banking Financial Intermediaries. In 1972,

Banking Commission suggested Uniform Chit Fund Enactment to entire country. Reserve

Bank of India arranged Model Bill to direct the conduct of chit stores and alluded to consider

gather beneath the Chairmanship of James S. Raj.

In June 1974, study group suggested ban on Prize Chit and other Plans. Coordinated the

Parliament to enact a bill which guarantees consistency within the arrangements pertinent to

chit stores all through the country. Parliament ordered two acts. Prize Chits and Money

Circulation Schemes (Banning) Act, 1978 and Chit Funds Act, 1982

 Chakravarty Committee

During Planning Period, Reserve Bank of India attempted best to 'Manage Money's and

advance 'Sound Monetary' framework but no much calculable victory in figuring it out social

destinations of financial arrangement of the country.

In December 1982, Dr. Manmohan Singh, Governor of RBI designated committee beneath the

Chairmanship of 'Prof. Sukhamoy Chakravarty' to survey working of financial framework in

India.

Committee suggested appraisal of links among the Banking Segment, the Non-Banking

Financial Institutions and the Un-organised division to assess different instruments of Financial

and Credit policy in terms of their affect on the Credit Framework and the Economy.

During this time, the number of NBFCs developed from 7,000 in 1981 to around 30,000 in

1992.

Difference between NBFCs and banks

NBFCs perform functions that are identical to those of banks, with a few exceptions:

 NBFCs are non-bank financial institutions that provide banking services to people

without having a bank licence.

 They cannot accept demand deposits and are not part of the payment and settlement

system.

 Unlike banks, an NBFC cannot issue cheques drawn on itself. NBFC depositors do not

have access to the Deposit Insurance and Credit Guarantee Corporation's deposit

insurance facility.

 Reserve Ratios are not expected of an NBFC (CRR, SLR etc.)

 An NBFC cannot primarily engage in agricultural or industrial activities, or in the sale

or purchase of real estate, or in the construction of immovable property.

 Foreign investment is permitted up to 100 percent.

 Working in Financial Institutions and Money Handling is accompanied by an NBFC.

Types

In India, there are numerous types of non-banking financial companies (NBFCs).

The following are the different forms of NBFCs:

 Investment and Credit company

Asset finance companies (AFC), loan companies (LC), and investment companies (IC) are

being merged into a new group called NBFC - ICC.

Any firm that is a financial institution carrying on as its primary business asset financing, the

provision of finance for any operation other than its own, and the acquisition of securities; and

is not any other category of NBFC as specified by RBI in any of its master directions.

 Infrastructure Finance Company (IFC)

Infrastructure finance companies spend at least three-quarters of their total assets in

infrastructure loans. The net owned funds surpass $3 billion, with a 'A' minimum credit

rating and a capital to risk-weighted assets ratio of 15%.

 Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC)

IDF-NBFC is a corporation that has been licenced as a non-bank financial institution (NBFI)

in order to promote the flow of long-term debt into infrastructure projects. IDF-NBFC raises

funds by multi-currency bonds with a minimum maturity of five years. IDF-NBFCs can only

be sponsored by Infrastructure Finance Companies (IFC).

 NBFC-Factors

The primary business of NBFC Factors is factoring. Factoring is a form of debtor finance and

a financial transaction.

 Non-Banking Residuary Companies (RNBCs)

A residuary non-banking financial firm is one that has as its primary business the receipt

of deposits, under any scheme or arrangement or in any other way, and is not an

investment, asset financing, or loan company. In addition to liquid assets, these

businesses must maintain investments in compliance with RBI guidelines. Very

frequently, NBFIs specialize in one or two specific divisions and create an instructive

advantage.

 Account Aggregators (AA)

The Reserve Bank of India launched Account Aggregators as a new form of NBFC in

2016.Account aggregation is a service offered by an account aggregator NBFC for a fee or

otherwise. After registering with the RBI, the NBFC can only provide account aggregation and

data to financial institutions with the consent of the customers. The actual process should

adhere to the RBI's consent architecture.

 Gold Loan NBFCs in India

Gold loan NBFCs have seen a rise in the Indian financial market over the years, owing

primarily to the recent cycle of gold price appreciation and the resulting increase in demand

for gold loans by all sections of society, especially the poor and middle class, to make ends

meet. Though there are many NBFCs in India that offer gold loans, Muthoot Finance,

Manappuram Finance, and Muthoot Fincorp, all based in Kerala, handle about 95% of the gold

loan market. Asset Under Management (AUM), the number of branches, and the number of

customers are all factors that lead to the growth of gold loan NBFCs. Loans to gold are

increasing. NBFCs increased in size and physical presence, forcing them to rely more on public

funds, such as bank loans and non-convertible debentures. Some of the major factors that

augment the growth of Gold loan NBFCs include aggressive structuring of gold loans as a

result of the uncomplicated, undemanding, and fast documentation process, as well as a higher

Loan to Value (LTV) ratio.

Gold loan market in India

Gold holds a special place in the hearts and homes of Indians, and it is frequently regarded as

a symbol of their financial security, social status, and cultural heritage. Gold has long been

regarded as a liquid asset and a globally agreed commodity whose value has increased over

time. India is one of the world's biggest consumers of yellow metal, which comes as no surprise.

Between 2009 and 2018, India was estimated to account for 23% of global gold demand. India's

gold reserves are largely concentrated in rural areas, with rural communities accounting for

more than two-thirds of the country's total demand. People in India rarely sell their gold

jewellery to satisfy their immediate financial needs because of the sentimental value attached

to it. People can also secure a short-term loan by pledging their gold ornaments as collateral.

Gold loan lenders are divided into two categories on a wide level:

 Formal (organised)

 Informal (unorganised)

Nearly 35% of the Indian gold loan market is organised, with banks (public, private, small

finance, and co-operative), non-banking financial companies (NBFCs), and Nidhi companies

contributing. Gold loan with a difference through aggressive investments in branding,

promotions, and geographic expansion, NBFCs have steadily increased their market share.

Money lenders and pawn brokers offer gold loans to people from all walks of life in the

unorganised gold loan market. India's unorganised gold loan market is currently estimated to

account for nearly 65% of the entire gold loan market. With financial service institutions

focusing on expanding their geographic scope and market penetration, a large portion of the

population that previously relied on the unorganised sector to fund their needs is gradually

moving to organised sector lenders.

1.3 INTRODUCTION TO THE COMPANY

Muthoot Finance Ltd.

Muthoot Finance Ltd. is an Indian financial firm and the country's largest gold loan non-

banking financial company (NBFC). The business also provides foreign exchange, money

transfers, asset management, travel and tourism services, and sells gold coins in addition to

funding gold transactions. The company's headquarters are in Kerala, India, and it has over

4,400 locations nationwide. Muthoot Finance is based in the United Kingdom, the United

States, and the United Arab Emirates, in addition to India.

The Muthoot Finance Private Limited was formed as a private limited company under the

Companies Act on 14 March 1997 with the name "The Muthoot Finance Private Limited."

The corporation was transformed to a public limited company with the name "Muthoot Finance

Limited" on November 18, 2008. 620 new branches were added to the business in 2009–10.

The Muthoot Group's brand umbrella encompasses the company. Its shares are traded on the

Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Revenue (after

expenses) was more than 23,000 crore (US$4.2 billion) in March 2012. Small companies,

vendors, farmers, merchants, SME business owners, and salaried individuals are among

Muthoot Finance's target market.

The Company’s top management includes Mr. M G George Muthoot, Mr. Vadakkekara

Anthony George, Mr. Ravindra Pisharody, Justice(Retd) Jacob Benjamin Koshy, Mr. Jose

Mathew , Ms. Pamela Anna Mathew, Mr. Alexander M George , Mr. George Jacob Muthoot,

Mr. George Thomas Muthoot , Mr. George Alexander Muthoot, Mr. Pratip Chaudhuri.

Company has Varma & Varma as its auditors . As on 31-12-2020 , the company has a total of

40 Crore shares outstanding.

Manappuram Finance Ltd.

Manappuram Finance Ltd or MAFIL (Manappuram General Finance and Leasing) is a

Kerala-based non-banking financial company (NBFC) based in Valapad, Thrissur.

Manappuram has more than 4190 branches in 25 states and employs more than 190,00

employees.

In the Thrissur District, the company was established in 1949 by late V.C.Padmanabhan. The

company began operations in Valapad, primarily as a small-scale money lending service.

MAGFIL, the group's flagship company, was established in 1992 in response to the Indian

government's economic reforms. Manappuram was founded in 1949 by the late V.C.

Padmanabhan, Nandakumar's father, in Valapad (a coastal village in the Thrissur District of

Kerala). Its core business was small-scale pawn broking and small-scale money lending.

Via its subsidiaries Manappuram Home Finance Ltd, Manappuram Insurance Brokers Ltd, and

Asirvad Microfinance Limited, the company has recently expanded into new business areas

such as microfinance, vehicle and housing finance, and SME lending.

The company’s top management includes Mr. Jagdish Capoor, Dr . Shailesh Jayantilal Mehta

, Mr. Harshan Kollara, Mr. V R Ramachandran, Mr. P Manmohanan, Ms. Sutapa Banerjee ,

Mr. Gautam Narayan , Mr. B N Raveendra Babu, Mr. V P Nandakumar, Mr. Abhijit Sen.

Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2020, the company

has a total of 85 Crore shares outstanding.

1.4 JUSTIFICATION OF THE TOPIC

Non-Banking Financial Institutions are developing as an indispensably component of the

Indian budgetary framework. The NBFCs are heterogeneous in terms of their exercises and

measure of operations and serve as basic financial intermediaries for credit searchers of the

nation. They are fortifying the economy and have carved a distinct place for themselves by

serving the credit prerequisites of both wholesale and retail clients.

NBFCs nowadays have picked up much traction within the economy. They include impressive

depth to the overall financial segment. NBFIs have a developing importance as a key player in

broadening the financial skylines of lenders in India. Later traction within the lending sector

that to NBFC development has produced gigantic scholastic and investigate interface from

researchers who expected to jump deep into its onset, development and performance. In August

of 2016, the union cabinet invited foreign direct investment (FDI) beneath the automatic course

in regulated Non-banking financial companies.

Here are ways in which NBFCs offer assistance the economy:

 They supplement the banking framework of the nation by distributing abundance assets

to people and companies that confront support deficit.

 On the other hand, NBFIs moreover bring competition in financial administrations

accessible within the country.

 While banks may offer packaged bargains on monetary administrations, NBFIs offer

entirely customized administrations to suit the particular needs of clients they serve.

Very frequently, NBFIs specialize in one or two specific divisions and create an

instructive advantage.

NBFCs has toppled banks in terms of development rate. According to a overview, the

Non-Banking Financial Companies develop at a rate of 22% each year on an normal.

Thus, NBFCs succeed in supporting a capable position by contributing to the economy

each year. As there's a lower cost included, it makes a difference an NBFC to render

cheaper advances to the clients, which comes about in credit development. It suggests

that the sum of cash being loaned to the clients is more than that of the Banking division,

which advance increments the customer-base of NBFCs. Despite a slowdown within

the economy, NBFCs thrived at a relentless pace within the previous a long time from

INR 26.2 lakh crore in 2017-18 to INR 30.9 lakh crore in 2018-19. NBFCs give

monetary administrations in both urban and country regions. For the most part, the Non-

Banking institutions fund the ventures of little Companies and play a crucial part in

invigorating credit administrations in country zones. Other than, they offer small-ticket

credits to support reasonable lodging wanders. NBFCs advance comprehensive

development that makes a difference in lessening destitution and makes work openings.

Growth and significance of Gold loan business

The yellow metal or the Gold, is recognized as a widespread currency and has been the

foremost dependable fluid resource customarily. India, which is one among the biggest

market of gold and is a nation where gold is preserved traditionally. This wonderful

metal is considered as an promising resource within the nation. Not at all like the

outside nations, Indians have the practise of protecting gold within the frame of

jewellery and assumed to be a tried and true asset amid financial crunches.

In any case, with the section of organized NBFCs and other financial segments changed

the entire scenario by bringing in more mindfulness among the buyers. Nowadays, the

NBFCs command more than 25 rate of the gold loan market. Besides, the situation of

organized gold loan sector has changed, where it has it has seen huge growth of 40 to

50 rate CAGR within the past decade.

Some of the genuine realities behind the development of organized Gold loan lending

practices are underneath mentioned :

1. Awareness among consumers

2. Transparency in Transaction

3. Reduce Gold Credit Interest

4. Quick Processing

5. Extensive Network

6. Fast Turnaround Time

7. Apt Administrations Advertised to Non-Bankable Patrons

8. Advanced Loan-To-Value Ratios

9. Involvement of Technology

10. Implementation of New Product Highlights and Services Convenient working

hours

11. Both little loans/large advances are advertised

Of late, NBFCs and other non-banking divisions have improved their administrations by

lessening intrigued charges, observing and scrutinizing of lending practices. With exceptional

highlight of the business model, non-banking financial segments and NBFCs have out

developed quickly over the final decades.

Coronavirus and the Gold Loan Market

With the pandemic hit, several employments were misplaced and to meet the costs, the

households begun depending on pawning. As per the estimation of The World Gold Chamber

the Indian families have a $1.5 trillion accumulate of gold, made up of gems that families

acquired from their ancestors and as reserve funds. For this reason, the gold heated advances

are on higher side permitting families to urge bigger sum of advance against gold.

During this coronavirus widespread hit, lower middle-class families are depending on gold

loaning advertise more than any other sections. The banking division involvements seem offer

assistance the gold credits advertise to develop by 20% to 25% this financial year as the little

businesses and rural clients have a part of family possessed gold. Once regularity returns, this

make might anticipate enormous jump since of the capital prerequisite of small business.

Future of gold loan Business

India being the biggest market of gold with add up to of 65 rate rural gold and 10 percent of

total world gold stock as of 2010, our nation has developed from 18,000 to 32, 000 million tons

amid the year 2002 to 2010. The researches show that India's gold loan market is approximately

to touch Rs 4,617 billion by the year 2022 with a development rate of 13.4 per cent (KPMG

report). Last year 2018-2019, the gold advance lending market has seen a huge development

owing to the brilliant extending strategies.

Future prospects of NBFCs

NBFC division plays an amazingly vital part within the improvement of the country’s center

framework. By advertising speedier stores and credit to the Indian exchange and commerce

industry, these substances are empowering the nation-wide development of expansive

foundation ventures. Besides, small businesses, start-ups, and MSMEs/SSIs are dependent on

reserves offered by NBFCs. As these small businesses grow their operations, their need for

talented and incompetent labour goes up to fulfil the increment in operations. In this way, in a

roundabout way, each unused NBFC enrolment makes more work openings at the macro-

economic level.

CHAPTER-2

REVIEW OF LITERATURE

2.1 NATIONAL REVIEWS

 R.Sowndharya and Dr.R.Shanmugam (2014) write on "Analysis of Financial

Performance of Non Banking Financial Companies in India" in the Indian Journal of

Applied Research this research paper includes Non-Banking Financial Companies,

profitability, liquidity, leverage, Interest Coverage, Risk Indicator ratios. This study

indicates the selected NBFCs differ significantly in terms of profitability and leverage

indicators. The analysis of variance along with detail about average ratios may become

a useful guide to the NBFCs in their financial decision making. (Shanmugam, 2014)

 Karri, Meghani and Mishra, 2015 conducted a study to analyze the financial

performance of public sector banks in India. Period of the study was 5 years from 2010-

2014. Bank of Baroda (BOB) and Punjab National Bank (PNB) were considered as

sample size for the study. CAMEL model and t-test applied for data analysis purpose.

Results revealed that out of 14 ratios used in the CAMEL model the average figures of

Bank Of Baroda is the best for (6 ratios) followed by Punjab National Bank (5 ratios).

Thus it is established that Bank of Baroda is the best bank in the selected public sector

banks. (Karri, Meghani, & and Mishra, 2015)

 Tandon, Anjum and Julee, 2014 The Banks plays a vital role in any economy and to

sustain with negative shocks and fuel the growth of the economy it is important that

banks should be profitable. A study was based on financial performance of selected

Indian Banks. 5 banks based on market capitalization have been taken as sample size

and period of study was 2009-10 to 2013-14. Ratio analysis, Mean and Standard

deviation tools were used for data analysis purpose. Based on results it was found that

Punjab National Bank had the highest return on capital employed (mean). State bank

of India had highest Dividend Pay-out Ratio (Mean). Bank of Baroda had the highest

Return on Assets (mean) which is a sign that management of Bank was using Assets

fund more efficiently to increase earning capacity. It was also suggested that Bank of

India had lowest Divided per share and Earning per share, so bank had improved its

profit accordingly and increase in its Dividend per Share, Earning per Share. (., Anjum,

& Julee, 2014)

 Singla conducted a comparative study to analyze the productivity of among the selected

private banks in India. ICICI Bank, HDFC Bank and Axis Bank were taken as sample

and period of study was 2007-08 to 2001-12. Ratio analysis was used as a financial tool

for the data analysis purpose. Employee Productivity and Branch Productivity was used

as a major productivity indicator and various sub-parameters were used to analyze the

productivity. The study revealed that based on employee productivity ICICI Bank was

better than other selected private banks and as per branch productivity of ICICI bank is

less than the other selected banks. (Singla, 2013)

 Singh and Tandon analyze the financial performance Stat Bank of India (SBI) and

ICICI Bank. Period of study was considered from 2007-08 to 2011-12. Financial ratio,

mean and compound annual growth rate tools were considered for data analysis

purpose. The study revealed that SBI is performing well and financially sound as

compared to ICICI bank, but in context of deposits and expenditure ICICI bank has

better managing efficiency than SBI. (Singh & and Tandon, 2012)

 Dhanabhakyam M. and Kvitha M examined the financial performance of selected

public sector banks in India. Study period considered for research was from 2001-2010.

Six public sector banks i.e., Bank of India, Indian bank, Indian overseas bank, Canara

bank, Union bank of India and State bank of India were considered as sample for the

study. Results revealed that selected public sector banks have performed well on the

sources of growth rate and financial efficiency during the study period. The old private

sector banks and new private sector banks play a vital role in marketing of new type of

deposits and advances schemes. (Dhanabhakyam & and Kavitha, 2012)

 Hasriman Kaur A. and Dr.Bhawdeep Singh Tanghi (2013) analyzed that NBFCs played

an essential role in terms of macroeconomic prospective as well as strengthening the

structure of the Indian monetary system. Consolidation in the sector and better

regulatory structure has become more focussed. (Tanghi, 2013)

 Prasanta Paul (2011) stated on the Financial Performance Evaluation – Some of the

selected NBFCs are taken for the comparative study. In the study, five of the listed

NBFCs are considered for the analyzation of comparative financial performance.

Different type of statistical tools like standard deviation, arithmetic mean, correlation

etc. are used extensively. (Paul, 2011)

 Sheela Christina (2011) reported on Financial Performance of Wheels India Ltd.

Secondary data collection method is used for the analytical type of research design.

Before conducting the study, validity and reliability is checked for the past five years

where the researcher used this for the purpose of study. (Sheela, 2011)

 Ghosh Santanu Kumar and Mondal Amitava (2009) study on the relationship of

intellectual capital and finance performances for a period of 10 years from 1999 to

2008 of 70 Indian banks. The measurement of financial performance used in this

analysis were return on equity, return on assets and assets turnover ratio of Indian

Banks. (Amitava, 2009)

2.2 INTERNATIONAL REVIEWS

 There is universal agreement that a properly functioning financial system is required

for a thriving modern economy (Kroszner, 2010). In all advanced economies, for

instance, sophisticated financial systems efficiently deliver a broad range of financial

services and act as a critical pillar in contributing to macroeconomic stability and

sustained economic growth and prosperity (World Bank, 2003). Moreover, the well

developed financial markets facilitate mobilization of savings, by offering savers and

investors wider choice of instruments. With NBFCs coming up on the financial system,

investors could park their funds at more lucrative returns in comparison to the bank

deposits. (Kroszner, 2010)

 Referring to NBFIs, Greenspan (1999) had stated: “enhance the resilience of the

financial system to economic shocks by providing it with an effective ‘spare tyre’ in

times of need”. Moreover, while short term loans needed by the industry and agriculture

are offered by the banking system, the other forms of services needed by industry as

well as other segments of economy are offered by NBFCs and other similar financial

institutions, like factoring, venture finance and so on. (Greenspan, 1999)

 Brigham and Ehrhardt (2010) stated “financial ratios are designed to help evaluate

financial statements”. Financial ratios are used as a planning and control tool. Financial

ratios analysis is used to evaluate the performance of an organization: it aims to

determine the strong and weak points and it offers solutions by providing appropriate

plans. (Ehrhardt, 2010)

 Toshiyuki Sueyoshi (2005) Financial ratio analysis of the electric power industry. This

approach compares 147 nondefault firms with 24 default firms of US power/energy

market in terms of the financial performance and this is a type of non-parametric

discriminant analysis which provides the weights of linear discriminant function.

(Sueyoshi, 2005)

 G.E. Halkos (2004) Efficiency measurement of the Greek commercial banks with the

use of financial ratios: a data envelopment analysis approach. This paper studied about

the application of the non-parametric analytic technique in respect of the DEA (Data

Envelopment Analysis) to measure the performance of Greek banking sector. (Halkos,

2004)

 Keith A Houghton, David R Woodliff (1987) Financial Ratios: The Prediction of

corporate success and failure. This paper investigated about the financial ratios to

predict the business failure. This has done from both the Human Information

Processing (HIP) and from the prediction from environmental predictability. (Keith A

Houghton, 1987)

 R.J. Taffler (1982) Forecasting company failure in the UK using discriminant analysis

and financial ratio data. This paper reported on the discriminant model of operational

for the purpose of identification of the british companies which was under the risk of

failure and discussed the results from their application since from their development.

(Taffler, 1982)

 M Kumbirai, R Webb (2010) A financial ratio analysis of commercial bank

performance in South Africa. This paper investigated the South Africa’s performance

of commercial banking sector period for 2005-2009.this financial ratio is used to

measure the liquidity, profitability and credit quality performance of large five

commercial banks of South Africa. (M Kumbirai, 2010)

 Frederick D.S. Choi et al (1983) Analysing foreign financial statements: The use and

misuse of International ratio analysis. The foreign companies are often misused the

measurement of financial risk and return. This paper used to explain the differences

in the international accounting principles. (al, 1983)

 Query-Jen Yeh (1996) The application of Data Envelopment analysis in conjunction

with financial ratios for bank performance evaluation. This paper demonstrated the

application of DEA in respect to the conjunction with financial ratios to help the bank

regulators in Taiwan to gain the insight of various financial dimensions which is link

to the financial operational decisions of banks. (Yeh, 1996)

CHAPTER-3

RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY

1. To know and understand about the concept of financial analysis.

2. To compare the financial performance of Muthoot Finance Ltd. And Manappuram

Finance Ltd.

3. To study the profitability and liquidity position of Muthoot Finance Ltd. and

Manappuram Finance Ltd.

4. To identify the long-term solvency position of chosen NBFCs in the study.

3.2 RESEARCH HYPOTHESIS

H01: There is no significant difference between the liquidity performance of Muthoot Finance

Ltd. and Manappuram Finance Ltd.

H02: There is no significant difference between long-term solvency position of Muthoot

Finance Ltd. and Manappuram Finance Ltd.

H03: There is no significant difference in the profitability of Muthoot Finance Ltd. and

Manappuram Finance Ltd.

3.3 SCOPE OF THE STUDY

The study is primarily focused on the financial performance of listed gold loan non-banking

financial companies (NBFCs) . The research study is limited to NBFCs of India only.

3.4 TYPES OF RESEARCH

FINANCIAL STATEMENT ANALYSIS

Study sample

Muthoot Finance Ltd. and Manappuram Finance Ltd., two gold loan non-banking financial

firms, were chosen as the study's sample.

Data collection

Over a five-year period, secondary data and relevant information were collected from the

Research portal, annual reports, financial statements, and balance sheets of the selected

NBFCs. Furthermore, information was gathered from a variety of blogs, specialised

international journals, and relevant previous studies.

Methods of Data analysis

Financial Ratios and Mean were used to analyse and compare the financial performance of the

listed gold loan NBFCs in India.

3.5 LIMITATIONS OF THE STUDY

1. For a comparative financial assessment, the study does not include banks, corporate

enterprises, or other financial institutions.

2. There are only two gold loan NBFCs listed Manappuram Finance Ltd. and Muthoot

Finance Ltd.

3. Because the research is limited to only two companies, it cannot be applied to other

businesses.

4. This study has only been conducted for a limited period of time, namely the last five

years from 2015-16 to 2019-20.

CHAPTER-4

DATA REPRESENTATION AND ANALYSIS

4.1 DATA REPRESENTATION & INTERPRETATION

Ratio analysis is a quantitative method of determining a company's liquidity, operating

performance, and profitability by examining financial statements like the balance sheet

and income statement. Fundamental equity research relies heavily on ratio analysis. In

order to evaluate the economic position of the listed companies under consideration,

the following ratios are calculated:

1. Current Ratio

2. Quick Ratio

3. Debt to Equity Ratio

4. Interest coverage ratio

5. Gross Profit Ratio

6. Operating profit Ratio

7. Net Profit Ratio

8. Return on Capital Employed

9. Return on Assets

10. Return on equity

Current Ratio

The relationship between current assets and current liabilities is known as the current ratio. It

signifies a company's ability to satisfy its current obligations. A higher current ratio implies a

more robust dependency on long-term sources, greater liquidity but lower profitability.

This current ratio falls into the category of liquidity ratios, which comprise a variety of other

financial measures. All of these ratios measure a company's activities in terms of its financial

stability in relation to its outstanding debt. A company's investors, creditors, and suppliers all

need to know the current ratio when making decisions. The current ratio is a critical criterion

for determining the viability of a commodity.

Table-1

Years

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot Finance Ltd

1.77

1.55

22.58

1.85

1.73

5.89

Manappuram Finance

Ltd.

1.43

1.63

2.18

1.98

1.90

1.82

Table 1 indicates that the current ratio of sample companies has fluctuated significantly over

the study period. The absolute value of this ratio of Muthoot was 1.55 in 2016-17, which

increased to 22.58 in 2017-18 but then declined to 1.85 in 2018-19. The ratio of Manappuram

in 2015-16 was 1.43 which increased to 2.18 in 2017-18 but the came down to 1.98 in 2018-

19. The average current ratios for Muthoot and Manappuram during the study period were 5.89

and 1.82, respectively, indicating that Manappuram had a lower CR value and Muthoot had a

higher CR value than the standard current ratio of 2:1. As a result, Muthoot Finance Ltd had

better liquidity positions in relation to the standard current ratio.

Quick Ratio

The Quick Ratio, also known as the Acid-Test ratio, is a liquidity ratio that assesses a

company's ability to cover current liabilities with short-term assets. In other words, the acid-

test ratio is an indicator of a company's ability to meet its existing (short-term) financial

obligations.

The quick ratio is a measure of a company's willingness to pay its current obligations and its

failure to do so. Investors, vendors, and lenders are more interested in knowing whether a

company has enough cash to cover its short-term obligations than when it does not. A well-

defined liquidity ratio is an indication of competence and sound business results, which can

contribute to long-term growth.

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd

Manappuram Finance Ltd.

Table - 2

As per Table 2 Muthoot Finance had highest quick ratio in 2017-18 and lowest in 2016-17.

Similarly, Manappuram Finance had highest quick ratio in 2017-18 but lowest in 2015-16. .

The average quick ratios for Muthoot Finance and Manappuram Finance during the study

period were 5.89 and 1.82, respectively, indicating that Manappuram Finance had a lower quick

ratio value and Muthoot Finance had a higher quick ratio value than the standard quick ratio of

1:1. As a result, Muthoot Finance Ltd has better short term financial position .

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance ltd.

Manappuram finance Ltd.

Years

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot Finance Ltd

1.77

1.55

22.58

1.85

1.73

5.89

Manappuram Finance

Ltd.

1.43

1.63

2.18

1.98

1.90

1.82

Debt Equity Ratio

A company's long-term solvency is calculated by its debt equity ratio. The partnership between

the outsider's fund and the insider's fund is known as this. A higher debt-to-equity ratio suggests

a leveraged company, which is preferable for a stable company that generates substantial cash

flow but not for a company in decline. A lower ratio, on the other hand, means a company that

is less leveraged and closer to being entirely equity funded. The ideal debt-to-equity ratio

differs by sector but normally 2:1 is considered as an appropriate proportion .

Table-3

The graph shows that Muthoot Finance had recorded highest debt to equity ratio in the year

2017-18(3.07) and lowest debt to equity ratio in 2016-17(0.74).whereas Manappuram Finance

had recorded highest debt to equity ratio in 2017-18(1.46) and lowest in 2015-16(0.58).

0.5

1.5

2.5

3.5

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance ltd.

Manappuram Finance Ltd.

Years

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot Finance Ltd

0.96

0.74

3.07

0.92

0.95

1.32

Manappuram Finance

Ltd.

0.58

0.93

1.46

1.27

1.42

1.13

As per the table-3 the average Debt to equity ratio of Muthoot Finance Ltd and Manappuram

Finance Ltd. are 1.32 and 1.13 respectively , which shows both the company's Debt to Equity

ratios are far below than the standard proportion of 2:1.

Interest coverage ratio

The Interest Coverage Ratio (ICR) is a financial ratio used to assess a company's ability to pay

interest on its outstanding debts. Lenders, borrowers, and investors often use the ICR to assess

the riskiness of lending money to a company. The “times interest earned” ratio is another name

for the interest coverage ratio.

The lower the interest coverage ratio, the higher the debt and the probability of bankruptcy for

the company. Intuitively, a lower ratio means that there are less operating earnings available to

cover interest costs, making the business more susceptible to interest rate fluctuations. As a

result, a higher interest coverage ratio means that the corporation is in better financial shape –

it is more capable of fulfilling its obligations.

A high ratio, on the other hand, could indicate that a company is missing out on opportunities

to leverage its profits. For companies with consistent revenues and cash flows, an ICR of more

than 2 is generally considered unacceptably high. Analysts prefer an ICR greater than 3 in some

cases. If the ICR is less than one, the company is in bad financial shape because it means it

can't pay its debts.

Table-4

Years

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot

Finance Ltd.

1.58

1.83

2.38

2.29

2.34

2.084

Manappuram

Finance Ltd

1.58

2.00

2.01

2.08

2.10

1.954

The graph shows that Muthoot Finance had highest ICR value in 2017-18(2.38 times) and

lowest ICR value in 2015-16(1.58 times). But in case of Manappuram Finance Ltd. ICR value

was highest in 2019-20(2.10 times) and lowest in 2015-16(1.58 times). In all the years of Study

there is an increase in the Interest coverage ratio of Manappuram Finance Ltd.

As per Table 4 the average interest coverage ratio for the study period of Muthoot Finance Ltd

and Manappuram Finance Ltd are 2.084 times and 1.954 times respectively , which indicates

that Muthoot Finance have higher interest coverage ratio value whereas Manappuram Finance

have lower interest coverage ratio value .This suggests that Muthoot Finance is more capable

of meeting its interest obligations .

Gross Profit Ratio

The Gross Margin Ratio, moreover known as the gross profit margin ratio is a profitability ratio

that compares the gross margin of a company to its income. It appears how much benefit a

company makes after paying off its Cost of Goods Sold (COGS). The proportion measures

how profitably a company can offer its stock. A higher ratio is more favourable. A low gross

margin ratio does not essentially show a ineffectively performing company.

It is vital to compare ratios between companies within the same industry instead of comparing

them over industries. For example, a legal service company reports a high gross margin ratio

since it works in a benefit industry with low production costs. In differentiate, the ratio will be

lower for a car manufacturing company since of high production costs.

0.5

1.5

2.5

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd.

Manappuram Finance Ltd.

Table-5

Years

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot Finance

Ltd.

28.49

35.09

48.58

48.14

49.56

41.97

Manappuram

Finance ltd.

25.84

39.01

38.14

37.62

42.54

36.63

Table-5 found that Muthoot finance Ltd. had highest Gross Profit Ratio in 2019-20(49.56%)

and lowest gross profit ratio value in 2015-16(28.49%). In case of Manappuram Finance Ltd.

also, the highest gross profit ratio was in 2019-20(42.54%) and lowest was in 2015-

16(25.84%).The average gross profit ratio of both the companies are 41.97% and 36.63%

respectively, which indicates that Muthoot finance have higher gross profit ratio as compared

to Manappuram Finance Ltd. Muthoot Finance ltd. have greater efficiency to meet its operating

expenses and creation of reserves.

Operating Profit Ratio

Operating margin is break even with to operating income separated by revenue. Operating

margin is a profitability ratio measuring income after covering operating and non-operating

costs of a business. Moreover referred to as return on sales, the operating income demonstrates

how much of the created sales is cleared out when all operating costs are paid off. Operating

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd.

Manappuram Finance Ltd.

income is the benefit of a business after all operating costs are deducted from sales receipts or

income. It speaks to how much a company is making from its center operations, not counting

other income sources not specifically related to its primary commerce exercises. It varies from

net pay in that it does not incorporate the costs of charges and interest. This gives speculators

and leasers a clear sign as to whether a company’s center trade is beneficial or not, some time

recently considering non-operating things.

A business that is competent of generating operating benefit instead of operating at a

misfortune could be a positive sign for potential financial specialists and existing lenders. This

implies that the company’s operating margin makes value for shareholders and persistent credit

adjusting for moneylenders. The higher the margin that a company has, the less budgetary risk

it has – as compared to having a lower ratio, showing a lower benefit margin.

Continued increments in profit margin over time appears that productivity is making strides.

This may either be ascribed to effective control of operating costs or other variables that impact

income build-ups such as higher estimating, way better showcasing, and increments in client

request.

Table-6

Years

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot Finance

Ltd.

74.43

74.10

75.61

77.83

78.98

76.19

Manappuram

Finance Ltd.

65.58

72.30

64.37

67.14

73.86

68.65

Table-6 found that Muthoot Finance ltd. have recorded highest operating profit ratio in 2019-

20(78.98%) and lowest operating profit ratio in 2016-17(74.10%) whereas Manappuram

Finance ltd. have recorded highest operating profit ratio in 2019-20(73.86%) and lowest in

2017-18(64.37). It can moreover observe that from 2016-17 there is an increase in the operating

profit ratio of Muthoot finance which shows improvement in the operational efficiency of the

business enterprise. The average operating profit ratio of both the companies are 76.19% and

68.65%, which shows that Muthoot finance Ltd. has greater operational efficiency as compared

to Manappuram Finance ltd.

Net Profit Ratio

The Net Profit Margin (also known as "Profit Margin" or "Net Profit Margin Ratio") is a

financial ratio that is used to determine the amount of profit a business generates from its

overall sales. It calculates how much net profit a corporation makes with sales revenue. The

net profit margin is calculated by dividing net profit (also known as net income) by total sales

and expressing the result as a percentage.

The net profit margin, which is typically expressed as a percentage, is a reasonable measure of

a company's overall performance. Bear in mind, however, that a single number in a company

report is seldom enough to express overall results. If a rise in revenue is followed by an increase

in expenditures, it could result in a loss. On the other hand, a decline in sales followed by tight

cost management is a recipe for disaster.

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance LTd.

Manappuram Finance Ltd

A high net profit margin indicates that a business can efficiently manage costs and/or sell

products or services at a price that is substantially higher than its costs. A poor net profit margin

suggests that a company's cost structure and/or pricing policies are inefficient.

Table-7

Year

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot

Finance Ltd

16.62

20.42

27.46

27.69

32.72

24.98

Manappuram

Finance Ltd.

15.04

22.40

19.76

22.69

27.08

21.39

The average net profit margins of Muthoot Finance and Manappuram Finance are 24.98% and

21.39%. This clearly suggests that Muthoot Finance has performed better than the

Manappuram Finance .

Return on Capital Employed

Return on Capital Employed (ROCE), a productivity proportion, measures how proficiently a

company is utilizing its capital to create benefits. The return on capital utilized metric is

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd.

Manappuram Finance Ltd.

considered one of the finest productivity proportions and is commonly utilized by speculators

to decide whether a company is reasonable to contribute in or not.

A higher return on capital employed is favourable, because it demonstrates a more effective

utilize of capital utilized. Be that as it may, as with any other financial ratios, calculating fair

the ROCE of a company isn't sufficient. Other productivity proportions such as return on assets,

return on invested capital, and return on equity ought to be utilized in conjunction with ROCE

to decide whether a company is likely a great venture or not.

Table-8

Year

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot

Finance Ltd

6.66

35.65

15.74

29.88

31.70

23.92

Manappuram

Finance Ltd.

7.84

11.39

21.77

26.77

26.90

18.93

Table-8 showed that Muthoot Finance Ltd. had highest return on capital employed in 2016-17

(35.65%) and lowest return on capital employed in 2015-16 (6.66%). But in case of

Manappuram Finance ltd. the ROC was highest in 2019-20 (26.90%) and lowest in 2015-16

(7.84%). It can moreover observe that in all the years of the study there's a wide gap in ROC

between the Muthoot Finance Ltd. and Manappuram Finance Ltd. The average return of capital

employed of both the companies were 23.92% and 18.93%. This clearly suggests that Muthoot

Finance Ltd. is effectively using its capital to generate profits as compared to Manappuram

Finance Ltd.

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd.

Manappuram Finance Ltd.

Return on Assets

Return on assets (ROA) is a form of return on investment (ROI) metric that compares a

company's profitability to its total assets. This ratio compares a company's profit (net income)

to the money it has invested in assets to assess how well it is doing. The higher the return, the

more effective and successful management is when it comes to using financial capital.

The ROA formula is a key criterion for assessing a business's profitability. When comparing

two firms of comparable scale in the same industry, the ratio is commonly used to compare

their results over time. When comparing two independent companies using ROA, it is

important to take into account the size of the company and the operations undertaken.

The return on investment (ROI) varies by industry. Industries that are capital-intensive and

need a high valuation of fixed assets for operations will have a lower ROA because their large

asset base will increase the formula's denominator. Naturally, if a company's revenue is strong

enough, it can have a huge ROA.

Table-9

Year

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot

Finance Ltd

2.97

3.72

5.43

4.97

5.71

4.56

Manappuram

Finance Ltd.

2.75

4.98

3.96

4.59

5.06

4.26

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd

Manappuram Finance Ltd.

Table-9 showed that Muthoot Finance had highest return on assets in 2019-20(5.71%) and

lowest return on assets in 2015-16(2.97%). Similarly, in case of Manappuram finance return

on assets was highest in 2019-20(5.06%) and lowest in 2015-16(2.75%). The average return

on assets of listed companies are 4.56% and 4.26% respectively, which suggests that Muthoot

Finance Ltd. is having higher ROA value and is generating profits by successfully controlling

their assets as compared to Manappuram Finance Ltd.

Return on equity

Return on Equity (ROE) is a percentage representation of a company's annual return (net

income) divided by the value of its total shareholders' equity (e.g., 12 percent ). ROE can also

be calculated by dividing the company's dividend growth rate by its earnings retention rate.

Return on Equity could be a two-part proportion in its determination since it brings together

the Income statement and the balance sheet, where net salary or benefit is compared to the

shareholders’ value. The number speaks to the whole return on value capital and appears the

firm’s capacity to turn value ventures into benefits. To put it another way, it measures the

benefits made for each dollar from shareholders’ equity.

ROE gives a basic metric for assessing speculation returns. By comparing a company’s ROE

to the industry’s normal, something may be pinpointed almost the company’s competitive

advantage. ROE may too give understanding into how the company administration is utilizing

financing from value to develop the business. A maintainable and expanding ROE over time

can cruel a company is sweet at creating shareholder esteem since it knows how to reinvest its

earnings shrewdly, so as to extend efficiency and benefits. In differentiate, a declining ROE

can cruel that administration is making destitute choices on reinvesting capital in ineffective

resources.

In arrange to fulfil speculators, a company ought to be able to produce a better ROE than the

return accessible from a lower chance venture.

Table-10

Year

2015-16

2016-17

2017-18

2018-19

2019-20

Mean

Muthoot

Finance Ltd

14.48

18.35

23.29

20.92

26.52

20.71

Manappuram

Finance Ltd.

12.81

22.48

17.72

20.69

25.68

19.87

As per above graph Muthoot Finance Ltd. had highest return on equity in 2019-20 (26.52%)

and lowest return on equity in 2015-16 (14.48%). But in case of Manappuram Finance Ltd. the

ROE was highest in 2019-20 (25.68%) and lowest in 2015-16 (12.81%). It also appears

declining slant throughout the study period. The average return on equity of both the companies

throughout the study period were 20.71% and 19.87%. In case of Return on equity , also

Muthoot Finance Ltd has performed better than Manappuram Finance Ltd.

2015-16 2016-17 2017-18 2018-19 2019-20

Muthoot Finance Ltd

Manappuram Finance Ltd.

4.2 HYPOTHESIS TESTING

Two sample z-test, using Normal distribution (two-tailed) (validation)

1. CURRENT RATIO

H0 hypothesis

Since p-value > α, H01 is accepted.

The average of Group-1's population is considered to be equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is not big enough to be statistically significant.

P-value

p-value equals 0.329447, ( p(x≤Z) = 0.835276 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.3294

(32.94%).The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 0.975228, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=4.07, is in the 95% accepted range: [-8.1800 : 0.9600].The statistic S' equals

4.173

Effect size

The observed standardized effect size is large (0.62). That indicates that the magnitude

of the difference between the average and average is large.

2. QUICK RATIO

H0 hypothesis

Since p-value > α, H01 is accepted.

The average of Group-1's population is considered to be equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is not big enough to be statistically significant.

P-value

p-value equals 0.329447, ( p(x≤Z) = 0.835276 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.3294 (32.94%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 0.975228, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=4.07, is in the 95% accepted range: [-8.1800 : 0.9600].

The statistic S' equals 4.173

Effect size

The observed standardized effect size is large (0.62). That indicates that the magnitude

of the difference between the average and average is large.

3. DEBT TO EQUITY RATIO

H0 hypothesis

Since p-value > α, H02 is accepted.

The average of Group-1's population is considered to be equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is not big enough to be statistically significant.

P-value

p-value equals 0.675349, ( p(x≤Z) = 0.662326 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.6753 (67.53%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 0.418819, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=0.20, is in the 95% accepted range: [-0.9200 : 0.9600].

The statistic S' equals 0.468

Effect size

The observed standardized effect size is small (0.26). That indicates that the magnitude

of the difference between the average and average is small.

4. INTEREST COVERAGE RATIO

H0 hypothesis

Since p-value > α, H02 is accepted.

The average of Group-1's population is considered to be equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is not big enough to be statistically significant.

P-value

p-value equals 0.486020, ( p(x≤Z) = 0.756990 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.4860 (48.60%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 0.696653, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].x1-x2=0.13, is in the 95% accepted range: [-0.3700 : 0.9600]. The

statistic S' equals 0.187

Effect size

The observed standardized effect size is medium (0.44). That indicates that the

magnitude of the difference between the average and average is medium.

5. GROSS PROFIT RATIO

H0 hypothesis

Since p-value > α, H03 is accepted.

The average of Group-1's population is considered to be equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is not big enough to be statistically significant.

P-value

p-value equals 0.298802, ( p(x≤Z) = 0.850599 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.2988 (29.88%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 1.039006, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=5.34, is in the 95% accepted range: [-10.0800 : 0.9600].

The statistic S' equals 5.141.

Effect size

The observed standardized effect size is large (0.66). That indicates that the magnitude

of the difference between the average and average is large.

6. OPERATING PROFIT RATIO

H0 hypothesis

Since p-value < α, H03 is rejected.

The average of Group-1's population is considered to be not equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is big enough to be statistically significant.

P-value

p-value equals 0.000344892, ( p(x≤Z) = 0.999828 ). This means that the chance of

type1 error (rejecting a correct H0) is small: 0.0003449 (0.034%).

The smaller the p-value the more it supports H1.

The statistics

The test statistic Z equals 3.579015, is not in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=7.54, is not in the 95% accepted range: [-4.1300 : 0.9600].

The statistic S' equals 2.107

Effect size

The observed standardized effect size is large (2.26). That indicates that the magnitude

of the difference between the average and average is large.

7. NET PROFIT RATIO

H0 hypothesis

Since p-value > α, H03 is accepted.

The average of Group-1's population is considered to be equal to the average. of the

Group-2's population.

In other words, the difference between the average of the Group-1 and Group-2

populations is not big enough to be statistically significant.

P-value

p-value equals 0.302468, ( p(x≤Z) = 0.848766 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.3025 (30.25%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 1.031156, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=3.59, is in the 95% accepted range: [-6.8200 : 0.9600].

The statistic S' equals 3.480

Effect size

The observed standardized effect size is large (0.65). That indicates that the magnitude

of the difference between the average and average is large.

8. RETURN ON CAPITAL EMPLOYED

hypothesis

Since p-value > α, H

is accepted.

The average of Group-1's population is considered to be equal to the average. of

the Group-2's population.

In other words, the difference between the average of the Group-1 and Group-

2 populations is not big enough to be statistically significant.

P-value

p-value equals 0.459595, ( p(x≤Z) = 0.770202 ). This means that if we would reject H

the chance of type I error (rejecting a correct H

) would be too high: 0.4596 (45.96%).

The larger the p-value the more it supports H

The-statistics

The test statistic Z equals 0.739513, is in the 95% critical value accepted range: [-1.960:

1.9600].

-x

=4.99, is in the 95% accepted range: [-13.2300: 0.9600].

The statistic S' equals 6.750

Effect-size

The observed standardized effect size is medium (0.47). That indicates that the

magnitude of the difference between the average and average is medium.

9. RETURN ON ASSETS

H0 hypothesis

Since p-value > α, H03 is accepted.

The average of Group-1's population is considered to be equal to the average. of

the Group-2's population.

In other words, the difference between the average of the Group-1 and Group-

2 populations is not big enough to be statistically significant.

P-value

p-value equals 0.665410, ( p(x≤Z) = 0.667295 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.6654 (66.54%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 0.432455, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=0.29, is in the 95% accepted range: [-1.3200 : 0.9600].

The statistic S' equals 0.675

Effect size

The observed standardized effect size is small (0.27). That indicates that the magnitude

of the difference between the average and average is small.

10. RETURN ON EQUITY

H0 hypothesis

Since p-value > α, H03 is accepted.

The average of Group-1's population is considered to be equal to the average. of

the Group-2's population.

In other words, the difference between the average of the Group-1 and Group-

2 populations is not big enough to be statistically significant.

P-value

p-value equals 0.780824, ( p(x≤Z) = 0.609588 ). This means that if we would reject H0,

the chance of type I error (rejecting a correct H0) would be too high: 0.7808 (78.08%).

The larger the p-value the more it supports H0.

The statistics

The test statistic Z equals 0.278245, is in the 95% critical value accepted range: [-

1.9600 : 1.9600].

x1-x2=0.84, is in the 95% accepted range: [-5.8900 : 0.9600].

The statistic S' equals 3.005

Effect size

The observed standardized effect size is small (0.18). That indicates that the magnitude

of the difference between the average and average is small.

CHAPTER-5

RESULTS AND SUGGESTIONS

5.1 MAJOR FINDINGS

The Research study is comparative in nature. Five years (2015-16 to 2019-20) Data

were considered for the research. For this study ten common financial ratios are used

to evaluate Liquidity, Profitability, Activity and Financial position of the two

companies namely Muthoot Finance Ltd. and Manappuram Finance Ltd. who are in

similar business operating under similar business environment. The Findings of the

study are as follows:

1. Against the accepted standard ratio of 2:1, Manappuram Finance ltd. has a

average of current ratio of 1.82:1 whereas Muthoot Finance ltd. has average

current ratio of 5.89:1. Since , the current ratio of both the companies is close

to 2:1 but Muthoot Finance ltd. has higher current ratio value. Muthoot Finance

Ltd. is in a better position to meet its short - term obligations on time as

compared to Manappuram Finance ltd.

2. The accepted standard ratio of quick ratio is 1:1 . Both the companies are close

to the accepted standard of quick ratio but Muthoot finance Ltd. has higher

quick ratio value (5.89:1), it shows Muthoot Finance ltd. has better liquidity

position as compared to Manappuram Finance ltd.

3. The ideal ratio for Debt to Equity ratio is 2:1. The Debt to Equity ratio of both

the companies are less than the accepted ratio.

4. It is observed that there is a slightest difference in Interest coverage ratio of both

the companies. But Muthoot Finance Ltd. have higher interest coverage ratio

value and have higher margin to meet interest cost.

5. There is a significant increase in Gross Profit Ratio and Net Profit Ratio of

Muthoot Finance Ltd. It implies that Muthoot Finance Ltd. has been able to

figure out better cost for its products which has come about in way better gross

benefit and also superior net profit . It is a great indicator for the company. The

average gross profit ratio of Muthoot finance ltd. is higher than the average

gross profit ratio of Manappuram Finance Ltd. As per the result Muthoot

Finance Ltd. is making better utilisation of available resources than the

Manappuram Finance ltd.

6. Muthoot Finance Ltd. has better operational efficiency as compared to

Manappuram Finance ltd.

7. There is a significant increase in return on capital employed ratio of both the

companies over the five year. The Muthoot Finance ltd. has favourable return

on capital employed as compared to Manappuram Finance ltd.

8. The Average of Return on assets of both the companies is not much different.

The ratio of Muthoot Finance ltd. has increased from 2.97% in 2015-16 to

5.71% in 2019-20. The ratio of Manappuram Finance ltd. has increased from

2.75% in 2015-16 to 4.98% in 2016-17 and further increased to 5.06% in 2019-

20. This shows that the fixed assets of Muthoot Finance Ltd. are utilized

efficiently as compared to Manappuram Finance Ltd.

9. It is observed that Muthoot Finance Ltd. have higher return on equity ratio as

compared to Manappuram Finance Ltd. This shows Muthoot Finance Ltd. is

more favoured by the investors.

10. The analysis of all the selected financial ratios shows that the ratios of Muthoot

Finance Ltd. are better than that of Manappuram finance Ltd. Muthoot Finance

Ltd. has better Financial Position as compared to Manappuram Finance Ltd.

5.2 DISCUSSIONS AND SUGGESTIONS

 Both the companies ought to change their credit appraisal mechanism to progress

the qualities of assets and decreases their non-performing assets.

 Management effectiveness of companies ought to be moved forward by lessening

the staff taken a toll, progressing the business per worker by effective marketing

techniques and diminishing their operational cost.

 Performance measure of both companies should moved forward by decreasing the

non-operating resources and moving forward the asset qualities of the companies.

 Both the companies should maintain liquidity at slightest according to the industry

average to decrease the probability of technical insolvency.

 As per debt to equity ratio both the companies should maintain their debt to equity

ratio according to the standard ratio to achieve better long term financial positions.

 The companies ought to move forward their administration effectiveness in utilizing

the shareholder’s fund.

 The fixed assets are productively utilized by both the companies

5.3 CONCLUSION

This study related to the comparative study on financial performance of Muthoot Finance Ltd.

and Manappuram Finance Ltd. over the five years from 2015-16 to 2019-20. Rendering to

ensuing evaluations, it can be concluded that all through the study period both the company’s

in general execution in terms of productivity, liquidity, and solvency improved

significantly. The liquidity positions of Muthoot Finance ltd. and Manappuram Finance ltd. in

associations to the standard debt equity ratio were inacceptable. Within the comparisons of

financial performance all profitability ratios of Muthoot Finance Ltd. have performed better

than Manappuram Finance Ltd. It has found from the Z-test that there is no significant

difference between different financial ratios of Muthoot Finance Ltd. and Manappuram

Finance Ltd

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ANNEXURE

MUTHOOT FINANCE LTD.

Consolidated balance sheet (in Rs. Cr.)

Particulars

Mar 20

Mar 19

Mar 18

Mar 17

Mar 16

12 months

EQUITIES AND

LIABILITIES

SHAREHOLDER'S

FUNDS

Equity Share Capital

401.04

400.66

400.04

399.48

399.00

Total Share Capital

401.04

400.66

400.04

399.48

399.00

Reserves and Surplus

11,414.94

9,514.07

7,456.53

6,138.56

5,223.29

Total Reserves and

Surplus

11,414.94

9,514.07

7,456.53

6,138.56

5,223.29

Employees Stock Options

13.23

16.47

0.00

Total Shareholders’

Funds

11,829.21

9,931.20

7,856.58

6,538.04

5,622.29

Minority Interest

172.14

142.38

73.31

71.94

37.68

NON-CURRENT

LIABILITIES

Long Term Borrowings

10,923.65

8,996.09

23,890.70

4,845.13

5,426.56

Deferred Tax Liabilities

[Net]

15.10

1.03

0.02

0.00

Other Long-Term

Liabilities

131.54

103.11

146.75

671.97

1,126.83

Long Term Provisions

371.23

216.53

227.90

9.71

0.79

Total Non-Current

Liabilities

11,441.52

9,316.77

24,265.37

5,526.81

6,554.17

CURRENT

LIABILITIES

Short Term Borrowings

30,011.54

21,131.42

0.00

12,765.87

8,370.81

Trade Payables

222.03

166.41

126.01

100.99

6,281.58

Other Current Liabilities

1,205.25

1,046.63

1,350.53

6,502.25

0.00

Short Term Provisions

0.00

678.25

528.22

Total Current Liabilities

31,438.82

22,344.45

1,476.54

20,047.36

15,180.61

Total Capital and

Liabilities

54,881.69

41,734.80

33,671.80

32,184.14

27,394.75

ASSETS

NON-CURRENT

ASSETS

Tangible Assets

275.09

221.28

219.42

226.24

226.45

Intangible Assets

8.54

7.99

10.80

9.99

5.18

Capital Work-In-Progress

28.74

22.83

5.74

9.98

10.74

Fixed Assets

312.36

252.09

235.96

246.21

242.37

Non-Current Investments

0.00

15.91

14.70

Deferred Tax Assets [Net]

17.10

36.94

19.15

63.51

56.36

Long Term Loans and

Advances

0.00

807.16

238.92

Other Non-Current Assets

94.87

77.37

60.93

34.26

0.00

Total Non-Current Assets

454.33

396.40

337.26

1,188.20

555.92

CURRENT ASSETS

Current Investments

630.22

211.13

177.26

80.63

34.39

Trade Receivables

8.98

21.68

26.65

1,276.93

1,467.92

Cash and Cash

Equivalents

6,130.65

2,203.48

747.02

1,644.67

714.06

Short Term Loans and

Advances

47,067.74

38,726.33

32,252.30

27,987.71

24,619.73

Other Current Assets

589.77

175.79

131.31

6.01

2.74

Total Current Assets

54,427.36

41,338.40

33,334.54

30,995.94

26,838.83

Total Assets

54,881.69

41,734.80

33,671.80

32,184.14

27,394.75

OTHER ADDITIONAL

INFORMATION

CONTINGENT

LIABILITIES,

COMMITMENTS

Contingent Liabilities

1,759.87

1,038.28

773.05

642.82

539.25

BONUS DETAILS

Bonus Equity Share

Capital

252.00

NON-CURRENT

INVESTMENTS

Non-Current Investments

Quoted Market Value

0.00

11.56

0.01

Non-Current Investments

Unquoted Book Value

0.00

4.69

CURRENT

INVESTMENTS

Current Investments

Quoted Market Value

0.00

62.16

0.00

Current Investments

Unquoted Book Value

630.22

211.13

16.35

18.47

0.00

MANAPPURAM FINANCE LTD.

Consolidated balance sheet (in Rs. Cr.)

Particulars

Mar 20

Mar 19

Mar 18

Mar 17

Mar 16

12 months

EQUITIES AND

LIABILITIES

SHAREHOLDER'S

FUNDS

Equity Share Capital

169.00

168.56

168.51

168.38

168.24

Total Share Capital

169.00

168.56

168.51

168.38

168.24

Reserves and Surplus

5,518.11

4,347.24

3,644.73

3,193.42

2,589.80

Total Reserves and

Surplus

5,518.11

4,347.24

3,644.73

3,193.42

2,589.80

Employees Stock

Options

26.68

27.62

0.00

Total Shareholders’

Funds

5,713.80

4,543.42

3,813.24

3,361.80

2,758.04

Equity Share

Application Money

32.32

3.18

0.00

Minority Interest

58.28

45.92

29.16

23.84

21.20

NON-CURRENT

LIABILITIES

Long Term Borrowings

8,060.34

5,720.16

5,549.50

3,122.41

1,600.01

Other Long-Term

Liabilities

341.91

95.45

56.67

113.48

123.78

Long Term Provisions

64.49

54.77

44.96

10.55

3.19

Total Non-Current

Liabilities

8,466.73

5,870.38

5,651.13

3,246.44

1,726.98

CURRENT

LIABILITIES

Short Term Borrowings

13,756.39

9,577.08

7,057.56

6,280.94

6,767.42

Trade Payables

173.66

132.66

118.16

73.36

25.07

Other Current Liabilities

749.98

273.04

360.37

2,011.17

1,465.33

Short Term Provisions

0.00

154.81

75.11

Total Current Liabilities

14,680.02

9,982.78

7,536.09

8,520.27

8,332.94

Total Capital and

Liabilities

28,951.15

20,445.68

17,029.61

15,152.35

12,839.15

ASSETS

NON-CURRENT

ASSETS

Tangible Assets

746.37

312.56

268.74

183.21

191.55

Intangible Assets

20.70

18.47

5.69

3.11

3.22

Capital Work-In-

Progress

3.46

0.89

0.15

0.63

0.00

Fixed Assets

770.53

331.92

274.58

186.95

194.77

Non-Current

Investments

0.00

5.05

Deferred Tax Assets

[Net]

101.36

77.06

109.83

77.72

43.39

Long Term Loans and

Advances

0.00

874.81

537.73

Other Non-Current

Assets

176.92

239.66

178.69

62.38

129.61

Total Non-Current

Assets

1,084.38

684.20

598.66

1,242.47

946.11

CURRENT ASSETS

Current Investments

90.08

173.76

4.93

0.00

44.01

Trade Receivables

2.48

2.71

1.09

0.00

Cash and Cash

Equivalents

3,645.94

1,164.20

724.13

555.43

604.48

Short Term Loans and

Advances

23,189.33

17,810.01

15,243.87

12,987.24

10,847.57

Other Current Assets

938.94

610.81

456.95

367.21

396.99

Total Current Assets

27,866.77

19,761.48

16,430.95

13,909.88

11,893.05

Total Assets

28,951.15

20,445.68

17,029.61

15,152.35

12,839.15

OTHER

ADDITIONAL

INFORMATION

CONTINGENT

LIABILITIES,

COMMITMENTS

Contingent Liabilities

395.90

451.79

113.69

0.00

32.16

BONUS DETAILS

Bonus Equity Share

Capital

122.91

NON-CURRENT

INVESTMENTS

Non-Current

Investments Unquoted

Book Value

0.00

5.05

CURRENT

INVESTMENTS

Current Investments

Unquoted Book Value

90.08

173.76

4.93

0.00

44.01

Muthoot Finance Ltd.

Consolidated Profit & Loss account (in Rs. Cr.)

Mar 20

Mar 19

Mar 18

Mar 17

Mar 16

12 months

months

INCOME (in Rs. Cr.)

Revenue From Operations

[Gross]

9,683.98

7,594.43

6,712.66

5,806.16

4,857.84

Revenue From Operations [Net]

9,683.98

7,594.43

6,712.66

5,806.16

4,857.84

Other Operating Revenues

0.00

104.64

62.14

Total Operating Revenues

9,683.98

7,594.43

6,712.66

5,910.80

4,919.98

Other Income

23.29

6.62

69.03

27.59

20.78

Total Revenue

9,707.27

7,601.05

6,781.69

5,938.39

4,940.76

EXPENSES

Employee Benefit Expenses

1,208.49

1,013.34

847.99

760.36

673.38

Finance Costs

3,172.84

2,535.47

2,127.14

2,368.59

2,285.62

Provisions and Contingencies

187.08

67.85

271.30

296.65

166.40

Depreciation And Amortisation

Expenses

59.24

51.69

51.93

51.92

58.66

Other Expenses

819.22

673.17

541.26

502.28

430.03

Total Expenses

5,446.88

4,341.52

3,839.61

3,979.81

3,614.10

Profit/Loss Before Exceptional,

Extraordinary Items and Tax

4,260.39

3,259.53

2,942.08

1,958.58

1,326.66

Profit/Loss Before Tax

4,260.39

3,259.53

2,942.08

1,958.58

1,326.66

Tax Expenses-Continued

Operations

Current Tax

1,077.93

1,146.67

1,041.15

756.99

521.95

Deferred Tax

13.73

-13.88

46.70

-5.49

-15.52

Tax For Earlier Years

0.05

23.78

10.48

-0.17

2.39

Total Tax Expenses

1,091.71

1,156.57

1,098.33

751.32

508.82

Profit/Loss After Tax and

Before Extraordinary Items

3,168.68

2,102.96

1,843.75

1,207.26

817.84

Profit/Loss From Continuing

Operations

3,168.68

2,102.96

1,843.75

1,207.26

817.84

Profit/Loss For The Period

3,168.68

2,102.96

1,843.75

1,207.26

817.84

Minority Interest

-30.44

-24.95

-13.92

-7.48

-3.34

Consolidated Profit/Loss After

MI And Associates

3,138.25

2,078.01

1,829.83

1,199.79

814.50

OTHER ADDITIONAL

INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.)

78.00

52.00

46.00

30.00

20.00

Diluted EPS (Rs.)

78.00

52.00

46.00

30.00

20.00

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend

1,082.35

0.00

401.42

239.69

239.02

Tax On Dividend

222.50

0.00

81.63

48.79

48.6

Manappuram Finance Ltd.

Consolidated Profit & Loss account (in Rs. Cr.)

Mar 20

Mar 19

Mar 18

Mar 17

Mar 16

12 months

INCOME

Revenue From Operations

[Gross]

5,455.94

4,164.50

3,415.82

3,376.25

2,348.96

Revenue From Operations

[Net]

5,455.94

4,164.50

3,415.82

3,376.25

2,348.96

Other Operating Revenues

9.38

15.01

4.94

9.16

11.27

Total Operating Revenues

5,465.32

4,179.51

3,420.76

3,385.40

2,360.23

Other Income

85.87

62.52

58.43

23.52

13.60

Total Revenue

5,551.19

4,242.03

3,479.19

3,408.92

2,373.83

EXPENSES

Operating And Direct

Expenses

23.66

19.58

12.67

0.00

Employee Benefit Expenses

830.13

720.11

626.08

502.58

432.68

Finance Costs

1,832.23

1,344.94

1,030.45

1,168.71

947.39

Provisions and

Contingencies

237.62

54.73

177.32

0.00

Depreciation And

Amortisation Expenses

164.18

75.23

68.26

63.15

55.78

Other Expenses

456.08

570.84

527.52

508.76

387.06

Total Expenses

3,543.89

2,785.43

2,442.29

2,243.20

1,822.91

Profit/Loss Before

Exceptional, Extraordinary

Items and Tax

2,007.30

1,456.59

1,036.90

1,165.72

550.92

Exceptional Items

0.00

-2.53

Profit/Loss Before Tax

2,007.30

1,456.59

1,036.90

1,165.72

548.38

Tax Expenses-Continued

Operations

Current Tax

534.47

475.32

374.85

441.56

205.60

Deferred Tax

-7.48

32.72

-13.93

-34.33

-12.38

Total Tax Expenses

526.98

508.04

360.93

407.23

193.23

Profit/Loss After Tax and

Before Extraordinary Items

1,480.32

948.55

675.97

758.49

355.16

Profit/Loss From

Continuing Operations

1,480.32

948.55

675.97

758.49

355.16

Profit/Loss For The Period

1,480.32

948.55

675.97

758.49

355.16

Minority Interest

-12.56

-8.09

0.00

-2.64

-1.79

Consolidated Profit/Loss

After MI And Associates

1,467.76

940.46

675.97

755.85

353.37

OTHER ADDITIONAL

INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.)

18.00

11.00

8.00

9.00

4.00

Diluted EPS (Rs.)

17.00

11.00

8.00

9.00

4.00

DIVIDEND AND

DIVIDEND

PERCENTAGE

Equity Share Dividend

285.96

181.18

168.39

126.26

189.27

Tax On Dividend

0.00

37.24

34.28

25.70

38.53