A

Presentation On
Summer Internship Program In
Gujarat Apollo Earthmovers
Ltd.
Prepared By:Prajapati
Kuldip
Roll No:-42
Exam No:-41

Submitted to:Dr. Nishith Bhatt

INTRODUCTION

Name: Gujarat Apollo earthmovers Ltd

Year of Establishment: The company was
establishing in 1974.
Registered Office:
212-A, G.I.D.C. Estate,
Mehsana.
An Apollo earthmovers Limited had set up for
manufacture mechanical pavers finisher and hot mox
plants. The companys business grew steadily and its
product earned a good reputation in the market

CONTINUE

In 1986 the Apollo Earthmover Private Limited termed with Gujarat

Industrial Investment Corporation (GIIC) to set up Gujarat Apollo
Equipments Limited (G.A.E.L.) .The Company started
manufacturing drum type asphalt plant and hydrostatic sensor paver
finishers under a technical collaboration arrangement with Barber
Greene USA. Apollo earthmovers Limited has been entered in stock
exchange just from 19th June 2001.Apollo Earthmover Limited
Company is ISO 9001:2000 certified.

Apollo company today offers the entire range of road construction

equipment that helps in building roads, which are safe, durable &
economical. Apollos mission is to retain the leadership through
continuous R&D and world class technology availed through
technology transfers.

VISION

To increase the turnover of the product.

To establish prestige of number one at the world
level.

MISSION

The companys goal is to retain the leadership by

designing & building the state of the art equipment,
through technology that is proven and is the best in
the world, availed by license and joint venture with
pioneers and leaders in respective field. To make it
possible in the developing world.

With the 4Ps process, product and people, well and

truly in place, Apollo shall be the supplier by choice
of the road construction industry.

BORD OF DIRECTORS

MR. ANIL T. PATEL

MR. MANIBHAI V. PATEL
MR. ASIT A. PATEL
MR. ANAND A. PATEL
MR. UGRABHAI V. PATEL
MR. NAVINCHANDRA V. SHAH
COMPANY SECRETARY
CS NEHA CHIKANI SHAH

DIRECTOR
DIRECTOR
MANAGING DIRECTOR
WHOLE-TIME DIRECTOR
INDEPENDENT DIRECTOR
INDEPENDENT DIRECTOR

PRODUCTS

Stationary Drum Mix Plants. (DM Series 30 to 150tph)

Mobile Drum Mix Type Asphalt Plants (Mobile mix
Series 20 to 90tph)
Wet Mix Macadam Plants. (wm Series 60 to 300tph)
Bitumen Pressure Distributor ( Atm Series 3000 to
10000 liters
Mechanical Broomer.
Hydraulic Broomer.
Tandem Vibratory Roller.

CONTINUE

Wet dust Collector.

Chips Spreader
Mechanical Paver Finisher
Hydrostatic Paver Finisher
Wet Mix Paver Finisher
Kerb Laying Machine

RATIO ANALYSIS

Ratio analysis is the powerful tool of financial

analysis. A ratio is defined as relation between two
or more thing or as the systematic use of the ratio
to interpret the financial statement. So that the
strength and weakness of a firm as well historical
performance & Current financial condition can be
defined.

LIQUDITY RATIO

These ratios indicate the ability of the company to discharge the liabilities
as and when they mature.

Current Ratio:
Year

2014

2013

2012

2011

Current Ratio

7.40

2.64

2.65

2.80

Here companies Current ratio is lower in the year 2013 at

2.64 and it is higher in the year of 2013 at 7.40
The higher current ratio indicate that the greater the margin of
safety for creditors. That means companys currents assets are increasing
in current year. So company is growing in strong position against its
current obligation.

CONTINUE

Quick Ratio:
Year
Quick Ratio

2014
6.44

2013
2.05

2012
2.05

2011
1.82

This ratio is called the Acid Test Ratio. It established the

relationship between quick assets and current liabilities.

The quick ratio of the company of the last four years is constantly
increase. The company is not very well in the quick ratio. It increases
constantly. Over all the companys position is not good in terms of quick
ratio. So we can say that firm can not able to pay their liability quickly.

ASSET TURNOVER RATIOS

Net Fixed Turnover Ratio :

Years
Net FA turnover (times)

2014
1.55

2013
3.68

2012
3.84

2011
3.75

Here companies Net Fixed Turnover Ratio is higher in the year 2012 at
3.84 as compared to year 2014 at 1.55.
This situation of low ratio arises due to inefficient use of fixed assets
after deduction of depreciation amount.

Total Asset turnover Ratio:

Years
TAT (times)

2014
1.55

2013
1.87

2012
2.04

2011
1.66

Total assets turnover is increasing during year 2012 as compare to 2011.

But on or after 2012 it is reducing till 2014. But here companies Total Assets
Turnover ratios is better utilize its investment in stock efficiently

CONTINUE

Net Working Capital Turnover Ratio:

Years
Net WC turnover (times)

2014
0.36

2013
2.15

2012
2.33

2011
2.43

Here the companies ratio in the year 2013 is at 1.79 times more in comparison with
2014 ratio is at 0.36 times.
This situation shows that a company ratio is decreasing means that working capital is
not fully utilizing properly

Inventory Turnover Ratio:

Year
Inventory turnover (times)

2014
1.92

2013
5.02

2012
4.78

2011
3.93

Inventory Turnover Ratio is 3.93 in the year 2011 and constantly increase up to year
2013 but in 2014 it is decrease to 1.92.
Here decrease in the ITR in current year indicates decrease in amount of sales by
decreasing per unit investment in the stock. But decrease in the ratio shows that investment
are not fully or efficiently utilize in business.

Continue.

Inventory Holding Period

Year
Inventory holding
period (Days)

2014
187

2013
71

2012
75

2011
92

In the above company Inventory Holding Period is fluctuating during this year. Inventory
Holding Period is higher in the year 2011 and after then it constantly decreasing up to year
2013 and there after highly increase in the year 2014

This situation arise that if Inventory Holding Period is lower it indicates that firm is working
efficiently and selling more stock in less days. But increase in Inventory Holding Period
indicates that company stock or inventory is remaining idle and frequently used at time.

Here company Inventory Holding Period is high in the year 2014 at 187 days as compare to
all previous year. So its not good for company or companys inventory remains same.

Debtor Turnover Ratio

Year

2014

2013

2012

2011

Debtors turnover Ratio

(Times)

2.68

5.18

5.73

5.58

Continue.

In the above graph the companies Debtor Turnover Ratio is fluctuating during this
four year. In the year of 2012 it was higher, while it is lower in the year of 2014

The increase in the ratio indicates better since it would indicate that debt are being
collected more promptly means there is more available of fund then it can be use
for other purpose and lower the ratio indicates inefficient collection of debts from
debtors.

Here companies Debtor Turnover Ratio is high in the year 2011 at 5.58 times and it
was lover in the year 2014 at 2.68 times. There fore the company is not good in
collecting of debts from debtors.

Average Age Of Debtors

Year
Avg. collection Period
(Days)

2014
134

2013
70

2012
63

2011
65

Continue

In the above graph the ratio of the company is fluctuating during the year. And it is
initially higher in year 2014 and it was higher from last years.

in this situation high ratio indicates that debtors are enjoying high credit period
form debt collection from them by company but a lower ratio indicates vice versa
of it.

Here companies ratio in the year 2014 is at 134 days. Its high from last three
years. So companys collection Quality is not better from previous year.

FINANCE STRUCTURE
RATIOS

Equity Ratio:
Years
Equity Ratio ( :)

2014
0.98

2013
0.92

2012
0.92

2011
0.91

Here companies equity ratio is higher in the year 2014 at 0.98:1

and it was lower in the year of 2011 at 0.91:1. A ratio constantly increase
so company is good in providing adequate safety to the creditors who give
loan to firm or invest in the firm assets.

Debt Ratio:
Years
Debt Ratio ( :)

2014
0.013

2013
0.079

2012
0.077

2011
0.081

Here companies debt ratio lower in the year 2014 is just 0.013: 1
There fore its good for company to indicating that shows more safety
margin to the investors or creditors.

CONTINUE

Debt Equity Ratio:

Years
Debt Equity Ratio

2014
0.01

2013
0.09

2012
0.08

2011
0.09

The companys debt equity ratio is fluctuating during four year and it was
higher in the year 2013 and 2011 while it was lowest in the year 2014 debt equity ratio.
Here companies is lower in the year 2014 at 0.01:1 so its better for company to use fund
efficiently than debt and give larger safety margin to the creditors.

Interest coverage ratio

Years
2014
Interest Coverage Ratio 0.51
(times)

2013
7.37

2012
8.55

2011
11.19

Continue.

In the above graph companies Interest Coverage Ratio is higher in the year 2011 and there
after constantly decrease.

The situation of high ratio indicating that firm/industry is utilizing its interest bearing debt
funds more efficiently. While a low ratio indicating under utilization of the debt funds of
business.

Here companies Interest Coverage Ratio in the year 2011 is higher at 11.19 times and it is
lower in the year 2014 0.51. Because of that the company is not good in utilization of the debt
funds of business

PROFITABILITY RATIO

Gross Profit Margin Ratio

Years
GP Ratio (%)

2014
12.95%

2013
17.36%

2012
19.14%

2011
14.50%

In the above graph companies gross profit ratio is increase or decrease. In 2012 gross profit ratio is
19.14% and then it is decrease and reaches to 12.95% in 2014.

This may be arising due to fluctuation in the selling price of a product, relatively with change in material
price or wages.

Here industrial gross profit ratio is better than company in comparison to subsequent years which shows
that industry is more efficient than company to cover its admin & marketing exp.

Operating Profit Margin Ratio

Years

2014

2013

2012

2011

Operating profit

4.06%

17.47%

16.64%

19.76%

Continue

Operating profit margin measures a companys operating efficiency and pricing

efficiency with its successful cost controlling. The higher the ratio, the better a
company is. The ratio indicates that there is increase in operating profit margin
from 7.76% in 2007 to 19.88% in 2009.

In the above graph the companies Operating profit margin ratio is reducing an
increase.

This is because of fluctuation in different indirect costs over its sales like cost of goods sold,
administration Expense a highly ratio reduce in the year 2014 at 4.06% That means a
companys operating efficiency and pricing efficiency is not with its successful cost
controlling.

Continue.

Net Profit Margin Ratio

Years
Net profit

2014
5.58%

2013
10.28%

2012
8.19%

2011
9.70%

In the above graph companies net profit ratio is increase and decrease. In 2011 ratio is 9.70%
and then it is and reach to 5.58% in 2014

It could be because of in sufficient profit available to cover its cost of goods sold & indirect
costs incurred during the business.

But here industrial net profit ratio is fluctuating & trying to improve its efficiency &
operational activity during this subsequent year than company.

We can conclude Apollo being not very efficient with keeping its expenses at a minimum and
its ability to retain much of its sales as profit.

Rate of Return on Investment

Years
Ratio (%)

2014
5.01%

2013
31.92%

2012
33.28%

2011
32.08%

Continue
In the above graph the companies rate of return on investment fluctuating is with lower margin as
compared to other years especially in 2012.
This is because that before paying interest, dividend and tax. The available profit is less than the
capital employed in business say total assets.
This kind of Situation Company will increase burden of interest payment and dividend. Hence, both
are not enough good for investment.

Rate of Return on Equity

Years
Ratio (%)

2014
46.43%

2013
12.87%

2012
10.39%

2011
12.49%

Here companies roe is decreasing during year 2012 as compare to 2011. But than after it
increase till 2014
This situation shows that after paying sufficient dividend to its preference shareholders,
both have sufficient profit to entitle the equity dividend to equity shareholders.
Such situation will attract investors and may increase in its shareholding. It also suggests
that it is properly utilizing its business resources.

VALUTION RATIO

Earning Per Share:

Years
Earning (rs per share)

2014
85.29

2013
13.10

2012
11.00

2011
11.52

Here a company EPS higher in the year 2014 is 85.29 per share while EPS is lower
in the year 2012 is 11.00.
In this higher earning per share is indicating that after paying preference dividend out
of the available profit, what could be the profit earning capacity of the business on per equity
shares and is showing better performance & prospect of the company

Dividend Pay-out Ratio:

Years
Dividend pay (rs per share)

2014
0.29

2013
0.90

2012
1.36

2011
0.43

Here companies Dividend Pay-Out Ratio is highest in the year 2012

is at 1.36 times and it is lowest in the year 2014 at 0.29times.

Continue

Return on Assets
Years
Ratio (%)

2014
36.17%

2013
10.87%

2012
9.10%

2011
10.90%

This ratio measures the pre tax rate of return on assets and can be used to measure the effective
utilization of assets on the profitability of the business. An indicator of how profitable a company is
relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to
generate earnings.

The ratio indicates that there is increase in the ROA from 10.90% in 2011 to 36.17% in 2014. That
means the percentage of the real return on the assets is lead to increase net earning of the owners.
The company is effective utilization of assets on the profitability of the business.

Continue

Return on Total Shareholders' Equity

Years
Ratio (%)

2014
852.94%

2013
130.96%

2012
110.10%

2011
115.26%

This ratio relates the pre tax returns to the level of equity capital employed in the business.
Caution should be used when interpreting this ratio. A high ratio, normally associated with a
profitable firm, may indicate an under capitalized firm while a low ratio, which normally
indicates an inefficient or unprofitable firm. +

The ratio indicates that there is increase in the ROE from 115.26 % in 2011 to 852.94% in
2014. That means the firm has earned a satisfactory return for its equity shareholders. The rate
of return on shareholders equity is of crucial significance in ratio analysis vis--vis from the
point of the owners of the firm.

SWOT ANALYSIS

Strengths:

ISO 9001 certified company

Acknowledged market leader with high level of customer goodwill

Always close to the customer. Proactive lather than reactive to changing

market needs

Large customer base & high brand loyalty

Fastest delivery of equipment and spare parts

CONTINUE

Weaknesses:
In competition with the foreign companies, price of the
equipment is high compare to the foreign companies
There is a lot of noise pollution at the work place. This noise
is dangerous for the workers

CONTINUE

Opportunities:

Opportunity always exists but main thing is they need to be realized and
recognized. This requires a strong motivational factor and premium
foresight

Threats:

There is no interference of anyone except the government because the

Apollo Earthmovers Limited is limited company

LEARNING

I have really a unique experience in Apollo Earthmovers Ltd, mehsana

during my training period. I have learnt many unknown things, which are
out of my knowledge of management aspects. I have found there the
management in my practical life. I have collected all my necessary
information from the concerning department by myself. I have come
across many intelligent and expert persons in the Apollo Earthmovers Ltd.

CONCLUSION

APOLLO EARTHMOVERS LTD is Indias No 1 manufacture of

road construction & maintenance equipment. There are very less
competitors against Apollos product in market and quality of its products
is better than competitors. Its products are increasing every year so there is
bright future for company.

APOLLO EARTHMOVERS LTD is able to use maximum capacity of

manpower and also of technical know how nowadays. This shows quality
improvement of product and best management company.

Thank
you