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
By
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 6
1.1 Rationale of the Study 7
1.2 Introduction to the Industry 7
1.3 Introduction of the Company 11
1.4 Justification of the topic 13

Chapter 2: Review of Literature 16

2.1 National Reviews 17
2.2 International reviews 19

Chapter 3: Research methodology 21

3.1 Objectives of the Study 22
3.2 Research Hypothesis 22
3.3 Scope of the study 22
3.4 Type of Research 22
3.5 Limitations of the Study 23

Chapter 4: Data Representation and Analysis 24

4.1 Data Representation and Interpretation 25
4.2 Hypothesis Testing 39

Chapter 5: Results and Discussions 46

5.1 Major Findings 47
5.2 Discussions and Suggestions 49
5.3 Conclusion 49

Bibliography 50

Annexure 53
 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 1.43 1.63 2.18 1.98 1.90 1.82

Ltd.
 25

20

15

Muthoot Finance Ltd

Manappuram Finance Ltd.
10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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.
 Table - 2

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 1.43 1.63 2.18 1.98 1.90 1.82

Ltd.

25

20

15

Muthoot Finance ltd.

Manappuram finance Ltd.
10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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 .
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

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 0.58 0.93 1.46 1.27 1.42 1.13

Ltd.

3.5

2.5

2
Muthoot Finance ltd.

1.5 Manappuram Finance Ltd.

0.5

0
2015-16 2016-17 2017-18 2018-19 2019-20

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).
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 1.58 1.83 2.38 2.29 2.34 2.084
Finance Ltd.

Manappuram 1.58 2.00 2.01 2.08 2.10 1.954

Finance Ltd
 2.5

1.5

Muthoot Finance Ltd.

Manappuram Finance Ltd.
1

0.5

0
2015-16 2016-17 2017-18 2018-19 2019-20

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.
 Table-5
Years 2015-16 2016-17 2017-18 2018-19 2019-20 Mean
Muthoot Finance 28.49 35.09 48.58 48.14 49.56 41.97
Ltd.
Manappuram 25.84 39.01 38.14 37.62 42.54 36.63
Finance ltd.

60

50

40

30 Muthoot Finance Ltd.

Manappuram Finance Ltd.

20

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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
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 74.43 74.10 75.61 77.83 78.98 76.19
Ltd.
Manappuram 65.58 72.30 64.37 67.14 73.86 68.65
Finance Ltd.
 90

80

70

60

50
Muthoot Finance LTd.
40 Manappuram Finance Ltd

30

20

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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.
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 16.62 20.42 27.46 27.69 32.72 24.98
Finance Ltd
Manappuram 15.04 22.40 19.76 22.69 27.08 21.39
Finance Ltd.

35

30

25

20
Muthoot Finance Ltd.

15 Manappuram Finance Ltd.

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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
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 6.66 35.65 15.74 29.88 31.70 23.92
Finance Ltd
Manappuram 7.84 11.39 21.77 26.77 26.90 18.93
Finance Ltd.

40

35

30

25

20 Muthoot Finance Ltd.

Manappuram Finance Ltd.
15

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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.
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 2.97 3.72 5.43 4.97 5.71 4.56

Finance Ltd
Manappuram 2.75 4.98 3.96 4.59 5.06 4.26
Finance Ltd.

3 Muthoot Finance Ltd

Manappuram Finance Ltd.

0
2015-16 2016-17 2017-18 2018-19 2019-20
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 14.48 18.35 23.29 20.92 26.52 20.71
Finance Ltd
Manappuram 12.81 22.48 17.72 20.69 25.68 19.87
Finance Ltd.
 30

25

20

15 Muthoot Finance Ltd

Manappuram Finance Ltd.

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

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.
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

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 0.459595, ( p(x≤Z) = 0.770202 ). This means that if we would reject H0,
the chance of type I error (rejecting a correct H0) would be too high: 0.4596 (45.96%).
The larger the p-value the more it supports H0 .

The-statistics
The test statistic Z equals 0.739513, is in the 95% critical value accepted range: [-1.960:
1.9600].
 x1-x2=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 12 months 12 months 12 months 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 11,414.94 9,514.07 7,456.53 6,138.56 5,223.29
Surplus
Employees Stock Options 13.23 16.47 0.00 0.00 0.00
Total Shareholders’ 11,829.21 9,931.20 7,856.58 6,538.04 5,622.29
Funds
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 15.10 1.03 0.02 0.00 0.00
[Net]
Other Long-Term 131.54 103.11 146.75 671.97 1,126.83
Liabilities
Long Term Provisions 371.23 216.53 227.90 9.71 0.79
Total Non-Current 11,441.52 9,316.77 24,265.37 5,526.81 6,554.17
Liabilities
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 0.00 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 54,881.69 41,734.80 33,671.80 32,184.14 27,394.75
Liabilities
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 0.00 0.00 15.91 14.70
Deferred Tax Assets [Net] 17.10 36.94 19.15 63.51 56.36
Long Term Loans and 0.00 0.00 0.00 807.16 238.92
Advances
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 6,130.65 2,203.48 747.02 1,644.67 714.06
Equivalents
Short Term Loans and 47,067.74 38,726.33 32,252.30 27,987.71 24,619.73
Advances
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 252.00 252.00 252.00 252.00 252.00
Capital
NON-CURRENT
INVESTMENTS
Non-Current Investments 0.00 0.00 0.00 11.56 0.01
Quoted Market Value
Non-Current Investments 0.00 0.00 0.00 4.69 4.69
Unquoted Book Value
CURRENT
INVESTMENTS
Current Investments 0.00 0.00 0.00 62.16 0.00
Quoted Market Value
Current Investments 630.22 211.13 16.35 18.47 0.00
Unquoted Book Value
 MANAPPURAM FINANCE LTD.
Consolidated balance sheet (in Rs. Cr.)

Particulars Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 months 12 months 12 months 12 months 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 5,518.11 4,347.24 3,644.73 3,193.42 2,589.80
Surplus
Employees Stock 26.68 27.62 0.00 0.00 0.00
Options
Total Shareholders’ 5,713.80 4,543.42 3,813.24 3,361.80 2,758.04
Funds
Equity Share 32.32 3.18 0.00 0.00 0.00
Application Money
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 341.91 95.45 56.67 113.48 123.78
Liabilities
Long Term Provisions 64.49 54.77 44.96 10.55 3.19
Total Non-Current 8,466.73 5,870.38 5,651.13 3,246.44 1,726.98
Liabilities
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 0.00 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 28,951.15 20,445.68 17,029.61 15,152.35 12,839.15
Liabilities
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- 3.46 0.89 0.15 0.63 0.00
Progress
Fixed Assets 770.53 331.92 274.58 186.95 194.77
Non-Current 0.00 0.00 0.00 5.05 5.05
Investments
Deferred Tax Assets 101.36 77.06 109.83 77.72 43.39
[Net]
Long Term Loans and 0.00 0.00 0.00 874.81 537.73
Advances
Other Non-Current 176.92 239.66 178.69 62.38 129.61
Assets
Total Non-Current 1,084.38 684.20 598.66 1,242.47 946.11
Assets
CURRENT ASSETS
Current Investments 90.08 173.76 4.93 0.00 44.01
Trade Receivables 2.48 2.71 1.09 0.00 0.00
Cash and Cash 3,645.94 1,164.20 724.13 555.43 604.48
Equivalents
Short Term Loans and 23,189.33 17,810.01 15,243.87 12,987.24 10,847.57
Advances
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 122.91 122.91 122.91 122.91 122.91
Capital
NON-CURRENT
INVESTMENTS
Non-Current 0.00 0.00 0.00 5.05 5.05
Investments Unquoted
Book Value
CURRENT
INVESTMENTS
Current Investments 90.08 173.76 4.93 0.00 44.01
Unquoted Book Value
 Muthoot Finance Ltd.
Consolidated Profit & Loss account (in Rs. Cr.)
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 months 12 months 12 months 12 months months
INCOME (in Rs. Cr.)
Revenue From Operations 9,683.98 7,594.43 6,712.66 5,806.16 4,857.84
[Gross]
Revenue From Operations [Net] 9,683.98 7,594.43 6,712.66 5,806.16 4,857.84
Other Operating Revenues 0.00 0.00 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 59.24 51.69 51.93 51.92 58.66
Expenses
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, 4,260.39 3,259.53 2,942.08 1,958.58 1,326.66
Extraordinary Items and Tax
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 3,168.68 2,102.96 1,843.75 1,207.26 817.84
Before Extraordinary Items
Profit/Loss From Continuing 3,168.68 2,102.96 1,843.75 1,207.26 817.84
Operations
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 3,138.25 2,078.01 1,829.83 1,199.79 814.50
MI And Associates
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 12 months 12 months 12 months 12 months
INCOME
Revenue From Operations 5,455.94 4,164.50 3,415.82 3,376.25 2,348.96
[Gross]
Revenue From Operations 5,455.94 4,164.50 3,415.82 3,376.25 2,348.96
[Net]
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 23.66 19.58 12.67 0.00 0.00
Expenses
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 237.62 54.73 177.32 0.00 0.00
Contingencies
Depreciation And 164.18 75.23 68.26 63.15 55.78
Amortisation Expenses
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 2,007.30 1,456.59 1,036.90 1,165.72 550.92
Exceptional, Extraordinary
Items and Tax
Exceptional Items 0.00 0.00 0.00 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 1,480.32 948.55 675.97 758.49 355.16
Before Extraordinary Items
Profit/Loss From 1,480.32 948.55 675.97 758.49 355.16
Continuing Operations
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 1,467.76 940.46 675.97 755.85 353.37
After MI And Associates
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