Wealth Maximization - Project 2018.docx

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

CHAPTER – 1 INTRODUCTION 1.1 INTRODUCTION Internship is an essential part of the educational set of courses of VTU MBA. Internship is an initiative to bridge the gap between knowledge and its application through a series of involvement that will enable VTU MBA student a program to provide insights and experience to the operations of a company. The ten week internship has been positioned during after completion of third semester and before the commencement of fourth semester of the MBA program it serves the twin purposes of providing critical business insights to students as well providing exposure to industry and enables the students to have a practical exposure to the concepts learnt during classroom teaching. This internship provides a platform to the students to put into practice the theoretical concepts learnt. Internship is very necessary to gain confidence and become aware of mechanism. The primary purpose of this study is to fulfill the requirement for the post graduation degree of MBA as per the required VTU curriculum. With this intention an internship has been undertaken by me at MYMUL for the period of 10 weeks. Dynamatic Technologies Ltd., Bengaluru

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

1.2 INDUSTRY PROFILE INTRODUCTION The Indian hydraulics engineering industry has been the key player in the country’s rapid economic development, in both the arenas of infrastructure and production. In particular, the segment of earthmoving and construction equipment (ECE) such as hydraulic excavators, wheel loaders, backhoe loaders, motor graders, vibratory compactors, cranes, dumpers, tippers, forklifts trucks, dozers, pavers, batching plants, etc. is based on applications of hydraulics technology. Over the past two decades, the ECE has made enormous progress and grown both in size and diversity. The driving force in a hydraulic system is the electromechanical actuator, a tiny component that is capable of performing Titanic feats. It is similar to mechanical actuators except that the control knob or handle is replaced with an electric motor. Rotary motion of the motor is converted to linear displacement. As for electromechanical actuators manufacturers India has several reputed companies like the Delhi NCR based Dantal Hydraulics that also has another unit in Bengaluru. In this type of actuator, the lead screw does not rotate. Although it prone to wear and tear due to numerous parts, it is cheap and has several advantages such as – 

Repeatable



Automated Operation



Self-contained techniques



Identical function in extending or retracting



Provision in design for position feedback



Energised by DC motors

Reportedly, there are many designs of modern linear actuators and company like Dantal also happens to be one among leading D.C. power unit manufacturers in the country. All said and done, hydraulics engineering industry will be the decisive factor in the nation’s growth. The Planning Commission has confirmed that India’s infrastructure PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru spending is in the range of one trillion US dollars during the 12thFive-Year Plan (2012-17). On this scorer, the government has extended sops, including a large number of special economic zones (SEZs), to the capital goods industry of which construction equipment is a part. Meanwhile, preparations are in full swing to host the eighth edition of Excon 2015 (an expo on ECE) at Bengaluru in November. This has been organised by Confederation of India Industry (CII).

UPCOMING TRENDS Like all other components and ingredients of the mobile equipment industry, this industry too is witnessing technology leapfrog in terms of design, raw material, weight, compatibility, ruggedness, etc. In the coming years, the development of hydraulics would shift to usage of electronics for better control and monitoring along with environment-friendly products. Furthermore, usage of special cylinders with special features like enhanced plating life and enhanced overall life are emerging trends. Customers now prefer to use various valves, manifolds, sensors etc inbuilt on to the hydraulic cylinder itself in place of using them inline previously. In view of increased cost pressures, optimisation of cylinder sizes are also being done by various OEMs. As a result, cylinder players are conducting various calculations and suggesting them optimal solution for this activity. Ananthagopal affirms, ¨The emerging technology breakthroughs would be in the area of affordable high strength alloys for cylinder tubes, sealing system which can operate at higher pressure and temperatures along with environment-friendly coating developments. Cylinder tubes used for high pressure applications are currently being imported along with few of the sealing elements.¨ Likewise, Jain states, ¨Higher weight haulage vehicle and more volumetric capacity of the equipment have been the trend all over the world. Indian hydraulics industry has to cater to such needs. Indian equipment designers and manufacturers must concentrate on such requirements of the customer. Normally high tensile seamless

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru steel tubes and high performance hydraulic seals are still imported as not being available in the country.¨ Kamal Sharma, Vice President - Sales, Dantal Hydraulics Pvt Ltd, highlights, ¨Usage of various sensors, cushioning at the end of cylinder stroke, and high pressure hydraulics are emerging trends in hydraulic cylinders.¨ Position sensors sense the rod position in a hydraulic cylinder and generates the output to tell the position of cylinder. It optimises the operation of cylinder and machine. Machine can be programmed or controlled to give accurate instructions to the cylinders on when to move and how much to move etc. Cushioning in hydraulic cylinders ensures slowing down of cylinders at the end of stroke to minimise the banging effect. This not only saves structures from damage which happens due to continuous banging of structures at the end of stroke, but also provides comfort to the operator. Usage of high pressure hydraulics is also an upcoming trend. High-pressure hydraulics reduces the size of cylinders, tank, pump, valves etc. If optimally designed, it reduces the overall cost of machine.¨ Dantal is one of the leading manufacturers of customised hydraulic cylinders and hydraulic systems, aircraft hydraulic service, trolleys and car parking solutions in India. The company was established in 1990 and offers complete hydraulic solution to sectors like agriculture, earthmoving equipment, waste management, material handling, mining, industrial applications, heavy equipment, renewable energy sector and defence. Some of the marquee clients it caters to include Action Construction, Caterpillar, Claas, CNH, Escorts, Godrej, JCB, KION, Mahindra & Mahindra, Tafe, Terex etc.

TECHNOLOGY TRENDS Despite manufacturing, industrial and other sectors are still reeling under protracted slowdown. The Indian hydraulic cylinder industry has not been deterred when it comes to expansion. In fact, most of the players affirm that their capex and technology enhancement plans remained unchanged and they were expanding their capacities and diversifying into new product lines and allied industries. A welldeveloped supply chain along with robust, fool-proof manufacturing practices would PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru assure the product quality. Training and educating the customer in terms of regular checkups and maintenance practices will improve the quality of product through its entire life cycle. This is because the the expectation of OEMs are increasing in line with end customer requirements. The shift from price-driven market to reliable product and quick service support is seen over years. All the companies were unanimous in their views that the manufacturing process for all cylinders remains the same but to meet specific application requirements, special manufacturing technologies are adopted. ¨In order to meet its long term objectives, we have adopted state-of-the-art technology which is on par with international standards. Design and manufacturing technology is constantly upgraded by us to cater to the needs of the future requirements of the OEMs. However, the level of technology varies from small cylinders of high volumes vis-a-vis niche, customised flexible and small volume manufacturing and need to be adopted and adapted Ananthagopal states, ¨The quality of hydraulic cylinders are built right from understanding the application till the proper maintenance of the assembly at regular intervals. We achieve this by having a detailed discussion with the customer to understand the usage, operations, environment etc. The design is then subjected to latest prototyping simulation software to validate and provide the optimum solution. Furthermore, the advancement in manufacturing technology has helped the industry to meet all types of end applications. Manufacturing technology depends mainly on the cylinder size and quantities. Line manufacturing concept with semi or fully automatic handling systems is well suited for higher batch sizes to reduce the cost, whereas one off requires a separate treatment in terms of machinery and process.¨ Similarly, Sharma also voices, ¨Our quality control system starts from design control itself which ensures that our designs should have ease of manufacturing and meeting all desired output performance criteria. Our SQA department ensures strict control over all bought out parts, detailed and efficient in house process control. Our workmen are highly skilled and ensure that defects are neither passed to next station nor accepted if passed by mistake by previous station. Our various system controls are ensured through SAP. Employee involvement and continual improvements make us PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru proud of our quality. We at Dantal have separated our production lines keeping in mind major applications and these production lines are independent of each other and have the requisite infrastructure which is required to make the cylinder perform accurately. Our earthmoving equipment line is equipped with friction welding, UT testing machines etc. Our small cylinder line has shrink fit machines, semi automated assembly line etc. Special cylinder line has the infrastructure to handle extra long and extra big cylinders. These special infrastructures are in addition to standard machines which are available in all production lines like cutting machines, turning centres, vertical machining centres, burnishing machines, ultra sonic clearing machines, torquing and assembly machines, various test rigs etc. This entire infrastructure ensures that geometry of our cylinders is as specified and ensures long life of our products.¨

FORWARD OUTLOOK Growth of infrastructure industry will be the key driver for success of hydraulic business. Defence and aerospace will be another key segment to watch, with opening of the industry to private players, easing of FDI norms and offset clause will drive the growth.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

COMPANY PROFILE 1.3 INTRODUCTION Dynamatic Technologies Limited outlines and assembles profoundly designed items for Automotive, Aeronautic, Hydraulic and Security applications. With cutting edge configuration, designing and assembling offices in Europe and India, the organization can meet clients' demanding prerequisites on 6 mainlands. LEAN. GREEN. CLEAN. Dynamatic Technologies is vertically-incorporated, with its own combination making and giving capacities a role as well as its own hostage environmentally friendly power vitality sources. The organization's offices are intended to help neighboring groups and the earth. Dynamatic Technologies is vertically coordinated, with its own particular composite making and giving abilities a role as well as its own hostage efficient power vitality sources.

1.4 PROMOTERS Govind Mirchandani

Non-Executive Independent Chairman of the Board

Udayant Malhoutra

Chief Executive Officer, Managing Director, Executive Director

Hanuman Sharma

Chief Financial Officer, Executive Director

Naveen Chandra P.

Compliance Officer, Company Secretary

Arvind Mishra

Global COO-Hydraulics, Head - Homeland Security, Executive Director

P. Ramesh

Chief Operating Officer - Hydraulics, India, Additional Executive Director

Rajender Singh

Head - Group Human Resources

Dietmar Hahn

Additional Director

Shirish Saraf

Additional Director

James Tucker

Additional Director

Nalini Mohanty

Independent Director

Ramesh Venkataraman

Independent Director

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Malavika Jayaram

Non-Executive Independent Director

1.5 VISION & MISSION STATEMENT VISION A Global Leader in the design and manufacture of highly engineered Automotive, Aerospace and Hydraulic products. To grow as a network of innovative businesses that will focus on serving customer needs. MISSION 

Enhance the safe, nurturing, learning and empowering environment for all employees, and motivate them to act like owners by Going the Extra Mile



Exceed customer expectations by providing high-valued products and services



Enhance wealth for shareholders

QUALITY POLICY It is our approach to give imaginative and creative answer for amuse our clients at cost – powerful costs on a nonstop premise By conveying better an incentive than our clients, we will fabricate a fruitful plan of action for ourselves, equipped for returning significant returns to financial specialists and enhancing the personal satisfaction of all workers All procedures will be Eco – Friendly and be intended to wipe out wastage, and all workers will endeavor to always grow the limits of information through creative ability and ingenuity.

1.6 NATURE OF BUSINESS CARRIED Dynamatic Technologies Limited is an India-based maker of built items for the aviation, car and pressure driven ventures. The Company works through three business portions: Automotive and Metallurgy, Hydraulics, and Aerospace and Defense. The Automotive and Metallurgy fragment supplies motor, transmission, turbocharger and suspension parts. It additionally produces high accuracy, complex metallurgical ferrous castings for car motors and turbochargers. The Hydraulics

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru portion fabricates pressure driven rigging pumps with aluminum or cast press body, engines, hand pumps, hitch control valves, shake shaft congregations, lube and water pumps and related items, and finish water powered answers for the Indian and abroad markets. The Aerospace and Defense portion's items incorporate wing and back fuselages, ailerons and wing folds, fold track bars and airframe structures. It additionally gives answers for unmanned airborne frameworks and vehicles, and checking and reconnaissance frameworks.

1.7 PRODUCT PROFILE Hydraulics

Dynamatic Hydraulics™ is one of the world’s largest producers of Hydraulic Gear Pumps and is focused on being number one. It has two state-of-the-art manufacturing facilities, located in Bengaluru, India, and Swindon, UK Automotive & Metallurgy

Dynamatic Technologies produces high quality Ferrous and Non-Ferrous Automotive Components for Highway, Off-Highway and Technology oriented applications for leading Global Automotive OEMs. Aerospace

Dynamatic-Oldland Aerospace™ is a demonstrated leader for the development of exacting Airframe Structures and Precision Aerospace Components. The Company’s modern Aerospace Manufacturing Complexes in India and UK deliver high value to

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru our customers, by combining the technical competence of our facilities in UK with the cost & manufacturing advantages offered by our Indian plants Homeland Security Dynamatic Homeland Security™ offers cutting edge security solutions to enhance the Nation’s capabilities in countering modern day security threats. 

Monitoring & Surveillance Systems



Mobile

Surveillance

Vehicles

(Msvs)

–

Dynamatic

Technologies

Rakshak (Product Information / Download Pdf 824 Kb) 

Restricted Entry Systems



Perimeter Security Solutions

1.8 AREAS OF OPERATION The main manufacturing plant as well as the head office is situated at Dynamatic Park, Peenya Bengaluru. There are two plants in Chennai and one plant in Sweden, United Kingdom. The company is planning to acquire more companies in next five years. Its among the top strategies of the management too, as well learnt it by the HR Manager Local 

Bengaluru

In India 

Chennai



Coimbatore



Nasik

Global United Kingdom (Swindon, Bristol) & Germany (Schwarzenberg),

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

1.9 INFRASTRUCTURE FACILITIES The company is situated in the Industrial Area of Peenya. In a vast area under its operation. The Age old perception of the factories being very congested is being proved wrong by such companies. The premise has the following infrastructure facilities 

Easy Access to the company



A Canteen with hygienic atmosphere



A Medical Inspection room



First Aid Kits in all floors



Dustbin at a regular distance



Beautiful Gardens all around

1.10 COMPETITORS DTL is a market leader in Hydraulics as learnt in the beginning it holds 70% of the Indian market. In other industries the company in an infant, but still it is doing well. Not much information about its competitors is given. As they are all well known co’s like 

Bosch Limited



Eaton Corporation



Yuken India Limited

1.11 SWOT ANALYSIS Strength •

The organization is Asia's biggest maker of Hydraulic Gear Pumps and one of the best five is around the world

•

Company is presently providing Hydraulic Gear Pumps to every one of the 14 Tractor Manufacturers in India

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 11

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru •

Over 85% of every single agrarian tractor and development hardware created in India are controlled by pumps proceeded by Dynamatic Hydraulics

•

The organization has determined drive to dispose of operational wasteful aspects, introduction of more esteem included products the organization's net benefit has developed by 52%

•

The enhanced general execution has been utilized by the organization to arrange significant diminishment in money related expenses

•

The organization imparts preparing to laborers for taking a shot at numerous machines alongside blend of reengineering of procedures which has continually expanded the productivity levels

Weakness •

Power serious, dependant on control and any unnatural birth cycle here outcomes in under use of limit

•

Needs refreshing with the circumstances as far as plant and apparatus

•

No reserves raised on a short terms premise which have been utilized just for long haul venture

•

Variation of offer costs of the organization in securities exchange

Opportunities •

The programmed parts industry is ready to witness critical change throughout the following decade

•

The outsourcing blast in auto part industry offers extraordinary opportunities for development

•

Company by and by works predominately in the roadway vehicle fragment which is described by high volumes and thin edges

•

However, development opportunities availed in this portion make its option for any business

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 12

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru •

Company is proceeding to build up various variations of pumps utilized as a part of the industrial segment, with a point of expanding entrance in this lucrative and developing business sector.

Threats •

Enormous evaluating weights from clients can genuinely pressurize margine which have all the earmarks of being the greatest danger to this industry

•

With clients obligation levels proceeding to drop (and anticipated to achieve WTO level by 2008-09), the evaluating structure may must be reasonably altered to counter expected imports. Cost – push swelling regarding spiraling aluminum cost increments is a reason for concern

1.12 FUTURE PROSPECTS The present economy supports, and is the motivation behind why numerous organizations are spreading their breezes to incorporate more up to date advertises. With such fast extension in the pipeline for most business, reconciliation procedures and framework can be a bad dream With Dynamatic Technologies Limited, through the undertaking is made less demanding. For over 10 years DTL has made to the differing needs of business crosswise over enterprises with its arrangement of items. DTL is the biggest maker of Hydraulic Gear Pumps in Asia. •

Estimated turnover is around 3000 Lakhs

•

Planned for expanding size of activities and extension.

•

The organization intends to build its endeavors in growing new and more efficient applications in automated agribusiness, earth moving, material dealing with machine apparatuses through persistent advancement.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 13

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

1.13 FINANCIAL STATEMENT Current Ratio Current Ratio = Current Assets / Current Liabilities

(Rs in Cr)

Table No: 1.1: Table showing analysis of Current Ratio Current Assets

Years

Current Liabilities

Ratio(%)

2012 - 13

135.48

220.54

0.61

2013 - 14

142.98

218.97

0.65

2014 - 15

181.51

207.85

0.87

2015 - 16

219.58

175.62

1.25

2016 - 17

272.74

126.61

2.15

Graph No: 2.1

2.50

2.15

2.00 1.25

1.50 0.87

1.00

0.61

0.65

0.50 0.00 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 1.1 Interpretation: The above table and graph state that, The highest Current ratio was recorded in the year 2016-17 is 2.15%, In the year 2012-13 current ratio was 0.61%, in the year 2013-14 current ratio was 0.65%, in the year 2014-15 current ratio was 0.87% and in the year 2016-17 current ratio was 1.25%.

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Quick Ratio Quick ratio = Quick Assets /Current Liabilities Table No: 1.2 : Table showing analysis of Quick ratio (Rs in Cr) Years

Quick Assets

Current Liabilities

Ratio(%)

2012 - 13

74.85

220.54

0.34

2013 - 14

81.84

218.97

0.37

2014 - 15

98.95

207.85

0.48

2015 - 16

104.78

175.62

0.60

2016 - 17

144.48

126.61

1.14

Graph No: 1.2

1.14

1.20 1.00 0.80

0.60 0.48

0.60 0.34

0.40

0.37

0.20 0.00

2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 1.2 Interpretation : From the above table shows the quick ratio of the company. The highest Quick ratio was recorded in the year 2016-17 is 1.14%, In the year 2012-13 Quick ratio was 0.34%, in the year 2013-14 Quick ratio was 0.37%, in the year 2014-15 Quick ratio was 0.48% and in the year 2016-17 Quick ratio was 0.60%.

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Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Debt equity Ratio: Long term debt

Debt equity ratio = Share holder fund Table No: 1.3: Table showing analysis of Debt Equity Ratio (Rs in Cr) Year

Long term debt

Shareholders fund

Debt equity ratio %

2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

97.12 97.83 120.13 84.46 73.77

5.41 5.44 6.34 6.34 6.34

17.95 17.98 18.95 13.32 11.64

Graph No: 1.3

17.95

20.00

17.98

18.95 13.32

15.00

11.64

10.00 5.00 0.00 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 1.3 Interpretation: From the above table shows the Debt equity Ratio of the company. The highest Debt Equity ratio was recorded in the year 2014-15 is 18.95%, In the year 2012-13 Debt Equity ratio was 17.95%, in the year 2013-14 Debt Equity ratio was 17.98%, in the year 2015-16 Debt Equity ratio was 13.32% and in the year 2016-17 Debt Equity ratio was 11.64%.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 16

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Equity Multiplier Ratio

Table No: 1.4: Table showing analysis of Equity Multiplier Ratio. (Rs in Cr) Year

Total Assets

Shareholder’s equity

Equity multiplier ratio %

2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

425.74 398.64 521.01 574.89 799.04

5.41 5.44 6.34 6.34 6.34

78.70 73.28 82.18 90.68 126.03

Graph No: 1.4

126.03

140.00 120.00 100.00

78.70

73.28

2012 - 13

2013 - 14

80.00

82.18

90.68

60.00 40.00 20.00 0.00 2014 - 15

2015 - 16

2016 - 17

Source: Table 1.4 Interpretation: The above table and graph state that Equity Multiplier Ratio. The highest Equity Multiplier ratio was recorded in the year 2016-17 is 126.03%, In the year 2012-13 Equity Multiplier ratio was 78.70%, in the year 2013-14 Equity Multiplier ratio was 73.28%, in the year 2014-15 Equity Multiplier ratio was 82.18% and in the year 201516 Equity Multiplier ratio was 90.68%.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 17

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

CHAPTER – 2 CONCEPUTAL FRAME WORK AND LITERATURE REVIEW 2.1 THEORETICAL BACKGROUND INTRODUCTION Shareholder wealth is the appropriate goal of a business firm in a capitalist society. In a capitalist society, there is private ownership of goods and services by individuals. Those individuals own the means of production to make money. The profits from the businesses in the economy accrue to the individuals. Wealth maximization is a modern approach to financial management. Maximization of profit is used to be the main aim of a business and financial management till the concept of wealth maximization came into being. It is a superior goal compared to profit maximization as it takes broader arena into consideration. Definition Wealth maximization is a modern approach to financial management. Maximization of profit used to be the main aim of a business and financial management till the concept of wealth maximization came into being. It is a superior goal compared to profit maximization as it takes broader arena into consideration. Wealth or Value of a business is defined as the market price of the capital invested by shareholders.

THE CONCEPT OF WEALTH MAXIMIZATION DEFINED AS FOLLOWS It simply means maximization of shareholder’s wealth. It is a combination of two words viz. wealth and maximization. A wealth of a shareholder maximizes when the net worth of a company maximizes. To be even more meticulous, a shareholder holds share in the company/business and his wealth will improve if the share price in the market increases which in turn is a function of net worth. This is because wealth maximization is also known as net worth maximization. PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 18

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Finance managers are the agents of shareholders and their job is to look after the interest of the shareholders. The objective of any shareholder or investor would be a good return on their capital and safety of their capital. Both these objectives are well served by wealth maximization as a decision criterion for business.

ADVANTAGES

OF

SHARE

HOLDERS

WEALTH

MAXIMIZATION Increased Returns The most overt advantage of a wealth maximization goal is that company make money for all owners of the business. Naturally, if Company start a business on their own or with other investors, Company' had like to make as much money as Company can. If all of their business decisions connect with this end in mind, Company could make enough money on the company's income or upon sale of the business to become wealthy. Strategic Consistency Whatever their goal, a clear focus on an overall strategic objective helps Company create consistency in business decisions. If their company operates with the primary purpose of maximizing wealth, their decisions likely will relate to this objective consistently. In weighing purchases of supplies or inventory, for instance, Company would select a provider and goods that offer Company the highest revenue with the lowest investment cost. Any decision Company make weighs both cost and revenuegeneration factors first and foremost. Avoids Emotion or Impulse Unlike general goals like "becoming an industry leader" or "helping to better the world," maximizing shareholder wealth is a very objective, unemotional business goal. You typically make decisions after crunching numbers, weighing rewards and risks and analyzing any available data. With more subjective or emotional objectives, Company have greater potential to make emotional or impulsive decisions that could lead to high costs and poor business results. PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 19

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Common Concerns While these advantages of maximizing wealth are hard to argue against, Company have to recognize potential drawbacks and criticisms. If Company get overly wrapped up in the financial stakes of their decisions, it can take away from any intangible or altruistic goals Company have, such as bettering their community. Additionally, executing decisions that only weigh bottom line results can attract criticisms from community activists that expect Company to contribute to the community, or from environmental watch groups that expect Company to operate with green-friendly policies.

2.2 LITERATURE REVIEW L Prrabha, Jayapriya R and Joslin Monica LA (2017) in their article " A study on shareholders’ wealth maximization of muthoot finance limited" stated that, Shareholders wealth maximization is the attempt by business managers to maximize the wealth of the firm. In this article, we suggest necessary steps to enlarge Muthoot Finance Company’s wealth. To make our case, we used capital structure and trend analysis. Their problem is uncontainable expenses. For that we gave suggestions regarding the maintenance of expenses in a proper way. Finally, the suggestions are offered to improve the wealth of the company. C.N. Ozuomba, A.S. Anichebe and P.V.C. Okoye (2016) in their article “The effect of dividend policies on wealth maximization – a study of some selected places” stated that, This research article examines how share value thus shareholders wealth is affected by dividend policies. This study seeks to analyze the effect of firm’s dividend policies on shareholders’ value of public companies in Nigeria, to empirically examine the linkage of dividend payout with information asymmetry, and to analyze the effect of various dividend policies on shareholders wealth. This study shows the relevance of dividend and further proves that dividend policies of public limited companies influence the wealth of shareholders in Nigeria.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 20

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Fernando Gómez-Bezares Etc at all (2016) in their article, “Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis” stated that, This study examines the impact of corporate sustainability (CS) on stock market returns for FTSE 350 companies over the period 2006–2012. In addition, we find that CS is negatively correlated with stock return volatility, and investing in companies with CS not only generates higher returns during peak phases, but also diminishes shareholders’ losses during bear phases. We have also carried. Merugu Venugopal and Dr. M Ravindar Reddy (2016) in their study, "Impact of capital structure on firm’s profitability and shareholder wealth maximization: A study of listed Indian cement companies" stated that, The capital structure decision is the imperative one since the profitability of the firm is specifically influenced by such decision. It is redundant that benefit ought to be the main target for a business. Profit maximization is part of the wealth creation process. Where, wealth maximization is a long haul process. It alludes to the value of the firm and it is expressed in the value of stock. This study is significant in that it will add to the already existing literature on the impact of capital structure on the firm’s profitability and shareholder wealth. Kwadwo Boateng Premepeh and Eugene Odartei-Mills (2015) in their study, "Corporate governance structure and shareholder wealth maximization" stated that, Over the past two decades the ideology of shareholder value has become entrenched as a principle of corporate governance among companies. A well-established corporate governance system suggests effective control and accounting systems, stringent monitoring, effective regulatory mechanism and efficient utilization of firms’ resources resulting in improved performance. The object of the research presented in this paper is to provide empirical evidence on the effects of corporate governance on shareholder value maximization of the listed companies in Ghana. Kouki Marouan1 and Dabboussi Moez (2015) in their study, "Impact of Corporate Governance on Shareholder Value Creation: Evidence from Tunisian Context" stated that, The aim of this study is to examine the impact of corporate governance on shareholder wealth. The emphasis here is placed on the hypothesis that separating PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 21

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru ownership from management has a significant effect on shareholder value creation. The empirical analysis is based on a data set of Tunisian listed companies for the period 1997-2006. As predicted by theory, the results show that the presence of institutional investors in ownership structure seems to exercise effective control over the external manager. Capital concentration appears to have a negative effect respectively on performance and value creation. The presence of outside directors has a significant negative impact on value creation and performance of Tunisian firms. Thomas Clarke (2014) in his article, “The impact of financialisation on international corporate governance: the role of agency theory and maximizing shareholder value” stated that, The phenomena of financialisation has had a universal and pervasive impact upon economies and societies in recent decades. Global finance is now typified by a more international, integrated and intensive mode of accumulation; a new business imperative of the maximization of shareholder value; and a remarkable capacity to become an intermediary in every aspect of daily life. These financial pressures are translated into the operations of corporations through the enveloping regime of maximizing shareholder value as the primary objective Madan Lal Bhasin (2013) in their article, "Economic Value Added and Shareholders’ Wealth Creation: Evidence from a Developing Country" stated that, It is universally accepted that the goal of financial management is to maximise the shareholder‘s value. In recent years, Economic Value Added (EVA) framework is gradually replacing the traditional measures of financial performance on account of its robustness and its immunity from creative accounting. Following this global trend, several companies in India are focusing on shareholders' value creation. The main objectives of this study were: to examine whether the sample companies has been able to generate value for its shareholders; to analyze the effectiveness of EVA over the conventional measures of corporate performance, and to indicate whether the significant differences exists between the actual values of EVACE and time factor of the sampled companies. Thomas M. Jones and Will Felps (2013) in their article "Shareholder Wealth Maximization and Social Welfare: A Utilitarian Critique" stated that, Many scholars PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 22

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru and managers endorse the idea that the primary purpose of the firm is to make money for its owners. This shareholder wealth maximization objective is justified on the grounds that it maximizes social welfare. In this article, the first of a two-part set, we argue that, although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our current state of economic and social affairs. Bernard S. Sharfman (2013) in his article “Shareholder Wealth Maximization and its Implementation under Corporate Law” stated that, Shareholder wealth maximization is a norm of corporate governance that encourages a firm’s board of directors (the board) to implement all major decisions such as compensation policy, new investments, dividend policy, strategic direction and corporate strategy with only the interests of shareholders in mind. There is strong support for the idea that shareholder wealth maximization should be the primary norm underlying the governance of for-profit corporations. Given this majority view, it should come as no surprise that many practitioners and scholars also consider shareholder wealth maximization to be the objective of corporate law with corporate law’s fiduciary duties of care and loyalty being the tools of accountability to enforce this objective. Peter O. Eriki, Eseoghene J. Idolor and Igbinovia L. Eghosa (2012) in their study, "Financial Management Practices, Wealth Maximization Criterion And Firm Value: An Empirical Analysis" stated that, In the field of financial management, shareholders wealth maximization is often seen as the desirable goal not only from the shareholders perspective but for the society at large; with the firm’s primary goal aimed mainly at maximizing the wealth of its shareholders. This study thus aimed at determining the impact of the core financial management decisions or functions on firm value or shareholders wealth. Bernard Sharfman (2012) has done a study on shareholder wealth maximization and its implementation under corporate law. The article takes a very traditional approach he analysed with an approval that codes have historically been very hesitant to participate in the process of determining if a corporate decision is wealth maximizing, the creation and application of corporate law involves an enduring struggle to find the

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 23

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru optimal amount of decision making in the context of a maximizing share holder wealth. R. Muruga ganesh, Dr. A. Somu and V. Mathivathani (2012) has done a research on a comparative study on wealth maximization in selected automobile industries. The problem taken for this research is that due to the fluctuations in the market price of shares. It is essential to measure the wealth created by the organisation. In this research six financial tools have been used to analyse the data. Finally, based on the analysis the researcher has compared wealth creations on selected organisations and suitable suggestion have been given to the selected organization and also for the investors. Ben Amor Atiyet (2012) in his investigation, "The Impact of Financing Decision on the Shareholder Value Creation" expressed that, The reason for this paper is to investigate an ideal capital structure to expand the investor riches, likewise we attempt to decide the most critical determinants for investor esteem creation. We use in the paper a board information. It gives the scientist countless focuses, expanding the degrees of opportunity and lessening the colinearity among informative factors, subsequently enhancing the proficiency of econometric assessments. Our outcome demonstrates that the estimation of both exact models clarifying the investor esteem, we see that the self-financing clarifies emphatically and fundamentally the investor esteem creation for both measure (EVA and MVA). The value issue supply's to clarify adversely and altogether the investor esteem for both measure. Judy Laux (2010) in his article "Presentation And Stockholder Wealth Maximization" expressed that, The accompanying article speaks to the first in an arrangement committed to exhibiting understudies the chance to better comprehend the key hypothetical develops in the initial money related administration course. The present paper offers a prologue to the arrangement and spreads the points of investor riches boost and its nearby cousin, office hypothesis. Nelson Barber, Richard Ghiselli and Woody G. Kim (2010) in their examination. " Maximizing Shareholder Wealth: Understanding Systematic Risk in the Restaurant Industry" expressed that, Investors portray the vulnerability of a business' prosperity PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 24

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru or disappointment as hazard, and chiefs must screen this hazard since it influences an organizations' cost of capital, advertise esteem and at last investor riches. Utilizing relapse investigation, this examination rethought how the efficient (advertise related) danger of an organization's regular stock is connected to corporate conduct and money related execution. The outcomes propose that legitimately putting overabundance trade stream out working resources and high resource turnover may bring down efficient hazard and, contingent upon an organization's phase of advancement, executive turnover may increment precise hazard. Petra Jörg, Claudio Loderer, and Lukas Roth (2003) in their investigation, "Investor esteem expansion: What directors say and what they do" expressed that, This paper looks at whether Swiss firms amplify investor esteem. To discover, we review the objectives of 313 recorded and unlisted firms. We at that point look at whether administrators' choices are predictable with their objectives and examine whether execution relates to expectations. Our outcomes demonstrate that most chiefs seek after clashing targets. Numerous additionally announce that they don't augment investor esteem. Also, the individuals who guarantee they do some of the time depend on venture criteria that are conflicting with that objective. At long last, we find that offer value execution is insignificantly better when supervisors claim to amplify investor esteem, especially when stock costs have fallen. Bread cook et al. (2002) characterizes profit arrangement under the pertinence hypothesis as takes after; the profit strategy is a down to earth approach which regards profits as a dynamic choice variable and held income as the leftover profits are something other than a methods for dispersing net benefit, and that any variety in profit payout proportion could influence investors riches, a firm ought to in this way, attempt to set up an ideal approach that will augment investors riches. Michael C. Jensen (2002) in their examination, "Esteem Maximization, Stakeholder Theory, and the Corporate Objective" expressed that, In this article, I offer a proposition to clear up what I accept is the correct connection between esteem augmentation and partner hypothesis, which I call illuminated esteem amplification. Illuminated esteem amplification uses a significant part of the structure of partner PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 25

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru hypothesis however acknowledges expansion of the long-run estimation of the firm as the standard for making the imperative tradeoffs among its partner, and determines long haul esteem boost or esteem looking for as the association's goal. Stamp J. Roe (2001) in his examination, "The Shareholder Wealth Maximization Norm And Industrial Organization" expressed that, Industrial association influences the relative adequacy of the investor riches expansion standard in augmenting complete social riches. In countries where item advertises are not unequivocally aggressive, a solid investor supremacy standard fits less easily with social riches expansion than somewhere else in light of the fact that, where rivalry is frail, investor power prompts chiefs to cut creation and raise value more than they generally would. Where rivalry is savage, chiefs don't have that choice.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 26

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

CHAPTER – 3 RESEARCH DESIGN 3.1 STATEMENT OF THE PROBLEM Shareholders are the anonymous title holder of the company. They have an influential part in company’s wealth. Shareholders tend to show interest only when the wealth of the company is at its maximum. Eventually, the shareholders wealth increases proportionate to the increase in the wealth of the company. When the company’s wealth is maximized, it is benefited for the shareholders. Dynamatic Technologies Ltd is one of the trusted Casting Industry in Karnataka. They are specially designed for the working for the wealth of the shareholder. On those crucial grounds we make choice to designate a project on this company.

3.2 OBJECTIVES OF THE STUDY To Analyze the Financial Performance of Dynamitic Technologies Ltd through Trend Analysis To understand the concept of Shareholders Wealth Maximization To study the financial position of the business using comparative statement and trend Analysis

3.3 SCOPE OF THE STUDY This study mainly attempts to analyse the financial performance of the company. The present study develops a financial analysis for owner’s equity and its development. The study forecast to evaluate how to increase the company profit.

3.4 RESEARCH METHODOLOGY The present study is based on Descriptive Research Method. This study is based on Secondary Data Secondary Data

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 27

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Secondary data has been collected from Company Annual Report, Literature Review

3.5 TOOLS AND TECHNIQUES USED FOR THE STUDY Comparative Statement Trend analysis

3.6 LIMITATIONS OF THE STUDY This study is based on secondary sources The study is restricted Dynamatic Technologies Ltd., Bengaluru The period of the study is limited to 10 weeks

3.7 CHAPTER SCHEME First Chapter deals with Industry Profile and Company Profile, Promoters, Vision, Mission & Quality Policy, Products/ service profile, Area of the operation, Infrastructure facilities, Competitors Information, SWOT Analysis, Future Growth and Prospects and Financial Statement Second Chapter deals with Theoretical Background of the study, Literature Review with Research Gap Third chapter deals with Statement of the problem, Need for the study, Objectives of the study, Scope of the study, Research Methodology, Hypotheses, Limitations, Chapter Scheme Fourth chapter deals with Analysis and interpretation of the data collected with relevant tables and graphs. Fifth chapter deals with Summary of Findings, Conclusion and Suggestions / Recommendations

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 28

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

CHAPTER – 4 DATA ANLAYSIS AND INTERPRETATIONS Table No: 4.1 Trend of Equity Share Capital

Years

Equity Share Capital (Rs in Cr)

Trend (%)

2012 - 13

5.41

100.00

2013 - 14

5.44

100.55

2014 - 15

6.34

117.19

2015 - 16

6.34

117.19

2016 - 17

6.34

117.19

Graph No: 4.1

117

120

117

117

115 110 105

100

101

100 95 90 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.1 Interpretation: The above table and graph represents trend of Equity Share Capital during the year 2012-13 to 2016-17. In which the highest trend (117%) recorded for the year 2014-13 to 2016-17 and lowest trend (100%) for the year 2012-13. It is interpreted that the trend of Equity Share Capital is constant in recent 3 years. PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 29

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.2 Trend of Reserve Years

Reserve (Rs in Cr)

Trend (%)

2012 - 13

130.67

100.00

2013 - 14

137.45

95.45

2014 - 15

263.8

101.18

2015 - 16

268.16

109.90

2016 - 17

276.85

120.92

Graph No: 4.2

Trend (%) 140 120.92 120 100

95.45

2012 - 13

2013 - 14

100

101.18

109.90

80 60 40 20 0 2014 - 15

2015 - 16

2016 - 17

Source: Table 4.2 Interpretation: The above table and graph represents trend of Reserves during the year 2012-13 to 2016-17. In which highest trend recorded in the year 2016-17 is 120.92, Trend percentage decreased in the year 2013-14 to 95.45% and increased in next two year and recorded 101.18 % in the year 2014-15 and 109.90% in the year 2015-16. It can be interpreted that Reserve trend increasing year by year.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 30

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.3 Trend of Secured Loans Secured Loans (Rs in Cr)

Years

Trend (%)

2012 - 13

241.17

100

2013 - 14

220.23

91

2014 - 15

237.2

98

2015 - 16

300.63

125

2016 - 17

512.28

212

Graph No: 4.3

250

212

200 125

150

100

91

98

100 50 0 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.3 Interpretation: The above table and graph represents trend of Secured Loan during the year 2012-13 to 2016-17. The highest secured trend is recorded in the year 2016-17 is 212%. In the initial year 201-13 trend was 100% and decreased to 91% in the year 2013-14 and 98% in the year 2014-15, and increased in 2015-16 in trend percentage to 125%. It is interpreted that highest Secured Loan trend is recorded in the year 2016-17.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 31

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.4 Trend of Total Debt Years

Total Debt (Rs in Cr)

Trend (%)

2012 - 13

277.16

100

2013 - 14

245.75

96.54

2014 - 15

250.87

109.62

2015 - 16

300.82

156.3

2016 - 17

521.76

170.13

Graph No: 4.4

188

200 180

160 140 120

100

100

109 89

91

80 60 40 20 0 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.4 Interpretation: The above table and graph represents trend of Total Debt during the year 2012-13 to 2016-17. Highest Trend percent in Total Debt has found in the year 2016 – 17 is 188% and in the year 2015-16 is 109%. In the year 2013-14 low percent of trend recorded is 89% slight increase in 2014-15 to 91% and Increased to 109% in the year 2015-16. It can be interpreted that Total debt trend has a variation and recorded high in recent year. PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 32

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.5 Trend of Total Liabilities Total Liabilities Years

Trend (%)

(Rs in Cr)

2012 - 13

425.74

100

2013 - 14

398.64

93.63

2014 - 15

521.01

122.38

2015 - 16

575.32

135.13

2016 - 17

804.95

189.07

Graph No: 4.5

189

200 150

122 100

135

94

100 50 0

2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.5 Interpretation: The above table and graph represents trend of Total Liabilities during the year 201213 to 2016-17. Highest Trend percent in Total Liabilities has found in the year 201617 as 189% . In the in base year trend was 100% and decreased in 2013-14 to 94% and increased in 2014-15, 2015-16 and 2016-17 to 122%, 135% and 189%. It is interpreted that trend percentage of Total Liability is increasing in recent year.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 33

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.6 Trend of Investments Years

Investments (Rs in Cr)

Trend (%)

2012 - 13

70.4

100

2013 - 14

70.4

100.00

2014 - 15

165.4

234.94

2015 - 16

185.39

263.34

2016 - 17

312.87

444.42

Graph No: 4.6 444 450 400 350 300 250 200 150 100 50 0

235

100

2012 - 13

263

100

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.6 Interpretation: The above table and graph represents trend of Investment during the year 2012-13 to 2016-17, Highest Trend percent in Investment has found in the year 2016-17 as 444% , Trend percent is same in the year 2012-13 and 2013-14, and increasing in the year 2014-15 to 235%, 2015-16 trend was 263% and in the year 2016-17 trend was recorded 444%.\ It is interpreted that trend percentage of Investment is increasing year by year.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 34

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.7 Trend of Current Assets Current Assets Years

Trend (%)

(Rs in Cr)

2012 - 13

135.48

100

2013 - 14

142.98

105.54

2014 - 15

181.51

133.98

2015 - 16

219.58

162.08

2016 - 17

272.74

201.31

Graph No: 4.7

250

201

200

162

134

150 100

106

100 50 0 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.7 Interpretation: The above table and graph represents trend of Current Assets during the year 2012-13 to 2016-17, Highest Trend percent in Current Assets has found in the year 2016-17 as 201% and lowest Trend percent in Current Assets has found in the year 2012-13 as 100%. In the year 2013-14 trend was recorded 106%, in the year 2014-15 trend was recorded 134% and in the year 2015-16 trend was recorded 162%. It is interpreted that trend percentage of Current asset is increasing year by year which shows a good position of current assets of company.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 35

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.8 Trend of Inventories Years

Inventories

(Rs in Cr)

Trend (%)

2012 - 13

60.63

100

2013 - 14

61.14

100.8

2014 - 15

82.56

136.2

2015 - 16

114.8

189.3

2016 - 17

128.26

211.5

Graph No: 4.8

250

211.5 189.3

200 136.2

150 100

100.8

100 50 0 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.8 Interpretation: The above table and graph represents trend of Inventories during the year 2012-13 to 2016-17, Highest Trend percent in Inventories has found in the year 2016-17 as 211.5% , in the year 2012-13 and 2013-14 trend of Inventories is same 100%, and increasing in the year 2014-15 to 136.2%, in the year 2015-16 increased to 189.3%. It is interpreted that trend percentage of Inventories are increasing year by year.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 36

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.9 Trend of Loans and Advances Loans and Advances

(Rs in Cr)

Years

Trend (%)

2012 - 13

97.12

100

2013 - 14

97.83

100.73

2014 - 15

120.13

123.69

2015 - 16

84.46

86.96

2016 - 17

73.77

75.96

Graph No: 4.9

123.69

140 120

100

100.73 86.96

100

75.96

80 60 40

20 0 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.9 Interpretation: The above table and graph represents trend of Loans and Advances during the year 2012-13 to 2016-17, Highest Trend percent in Loans and Advances has found in the year 2014-15 as 123.69% and lowest Trend percent in Loans and Advances has found in the year 2016-17 as 75.96%, in the year 2012-13 trend was recorded 100%, in the year 2013-14 trend was recorded 100.73%, in the year 2015-16 trend was recorded 86.96%. It is interpreted that trend percentage of Loans and advances was recorded high in the year 2014-15. PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 37

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Table No: 4.10 Trend of Current Liabilities Current Liabilities

(Rs in Cr)

Years

Trend (%)

2012 - 13

821.32

100

2013 - 14

381.18

46.41

2014 - 15

400.35

48.74

2015 - 16

497.43

60.56

2016 - 17

525.32

63.96

Graph No: 4.10 120 100 100

80 60

46.41

48.74

2012 - 13

2013 - 14

60.56

63.96

2014 - 15

2015 - 16

40 20 0 2011 - 12

Source: Table 4.10 Interpretation: The above table and graph represents trend of Current Liabilities during the year 2012-13 to 2016-17, Highest Trend percent in Current Liabilities was recorded in the year 2012-13 as 100% and lowest Trend percent in Current Liabilities recorded in the year 2013-14 as 46.41%, in the year 2013-14 trend was recorded 48.74%, in the year 2014-15 trend was recorded 60.56%, in the year 2015-16 trend was recorded 63.96%. It is interpreted that trend percentage of Current Liability is high in the base year and decreased in continuing years.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 38

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Current Ratio Current Ratio = Current Assets / Current Liabilities Table No: 4.11: Table showing analysis of Current Ratio Current Assets

Years

(Rs in Cr)

Current Liabilities

Ratio(%)

2012 - 13

135.48

220.54

0.61

2013 - 14

142.98

218.97

0.65

2014 - 15

181.51

207.85

0.87

2015 - 16

219.58

175.62

1.25

2016 - 17

272.74

126.61

2.15

Graph No: 4.11

2.50

2.15

2.00 1.25

1.50 0.87

1.00

0.61

0.65

0.50 0.00 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.11 Interpretation: The above table and graph state that, The highest Current ratio was recorded in the year 2016-17 is 2.15%, In the year 2012-13 current ratio was 0.61%, in the year 2013-14 current ratio was 0.65%, in the year 2014-15 current ratio was 0.87% and in the year 2016-17 current ratio was 1.25%.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 39

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Quick Ratio Quick ratio = Quick Assets /Current Liabilities Table No: 4.12 : Table showing analysis of Quick ratio

(Rs in Cr)

Years

Quick Assets

Current Liabilities

Ratio(%)

2012 - 13

74.85

220.54

0.34

2013 - 14

81.84

218.97

0.37

2014 - 15

98.95

207.85

0.48

2015 - 16

104.78

175.62

0.60

2016 - 17

144.48

126.61

1.14

Graph No: 4.12

1.14

1.20 1.00 0.80

0.60 0.48

0.60 0.34

0.40

0.37

0.20 0.00

2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.12 Interpretation : From the above table shows the quick ratio of the company. The highest Quick ratio was recorded in the year 2016-17 is 1.14%, In the year 2012-13 Quick ratio was 0.34%, in the year 2013-14 Quick ratio was 0.37%, in the year 2014-15 Quick ratio was 0.48% and in the year 2016-17 Quick ratio was 0.60%.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 40

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Debt equity Ratio: Long term debt

Debt equity ratio = Share holder fund Table No: 4.13: Table showing analysis of Debt Equity Ratio

(Rs in Cr)

Year

Long term debt

Shareholders fund

Debt equity ratio %

2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

97.12 97.83 120.13 84.46 73.77

5.41 5.44 6.34 6.34 6.34

17.95 17.98 18.95 13.32 11.64

Graph No: 4.13

17.95

20.00

17.98

18.95

13.32

15.00

11.64

10.00 5.00 0.00 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.13 Interpretation: From the above table shows the Debt equity Ratio of the company. The highest Debt Equity ratio was recorded in the year 2014-15 is 18.95%, In the year 2012-13 Debt Equity ratio was 17.95%, in the year 2013-14 Debt Equity ratio was 17.98%, in the year 2015-16 Debt Equity ratio was 13.32% and in the year 2016-17 Debt Equity ratio was 11.64%.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 41

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Equity Multiplier Ratio

Table No: 4.14: Table showing analysis of Equity Multiplier Ratio. (Rs in Cr) Year

Total Assets

Shareholder’s equity

Equity multiplier ratio %

2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 - 17

425.74 398.64 521.01 574.89 799.04

5.41 5.44 6.34 6.34 6.34

78.70 73.28 82.18 90.68 126.03

Graph No: 4.14

126.03

140.00 120.00 100.00

78.70

73.28

2012 - 13

2013 - 14

80.00

82.18

90.68

60.00 40.00 20.00 0.00 2014 - 15

2015 - 16

2016 - 17

Source: Table 4.14 Interpretation: The above table and graph state that Equity Multiplier Ratio. The highest Equity Multiplier ratio was recorded in the year 2016-17 is 126.03%, In the year 2012-13 Equity Multiplier ratio was 78.70%, in the year 2013-14 Equity Multiplier ratio was 73.28%, in the year 2014-15 Equity Multiplier ratio was 82.18% and in the year 201516 Equity Multiplier ratio was 90.68%.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 42

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Return on Equity

Table No: 4.15: Table showing analysis of Return on Equity

(Rs in Cr)

Year

Net Income

Share holder’s equity

Return on Equity Ratio%

2012 - 13

10.33

5.41

1.91

2013 - 14

14.73

5.44

2.71

2014 - 15

7.81

6.34

1.23

2015 - 16

4.01

6.34

0.63

2016 - 17

11.96

6.34

1.89

Graph No: 4.15

2.71

3.00 2.50

1.91

1.89

2.00 1.23

1.50

0.63

1.00 0.50 0.00 2012 - 13

2013 - 14

2014 - 15

2015 - 16

2016 - 17

Source: Table 4.15 Interpretation: The above table and graph state that Return on Equity Ratio. The highest Return on Equity ratio was recorded in the year 2013-14 is 2.71%, In the year 2012-13 Return on Equity ratio was 1.91%, in the year 204-15 Return on Equity ratio was 1.23%, in the year 2015-16 Return on Equity ratio was 0.63% and in the year 2016-17 Return on Equity was 1.89%. PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 43

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

COMPARTIVE ANALYSIS FOR THE YEAR 2013 & 2014 Changes in

Mar 2013

Mar 2014

Variance

Total Share Capital

5.41

5.44

0.03

0.55

Equity Share Capital

5.41

5.44

0.03

0.55

Share Application Money

12.5

10

-2.5

-20.00

Reserves

130.67

137.45

6.78

5.19

Net worth

148.58

152.89

4.31

2.90

Secured Loans

241.17

220.23

-20.94

-8.68

Unsecured Loans

35.99

25.52

-10.47

-29.09

Total Debt

277.16

245.75

-31.41

-11.33

Total Liabilities

425.74

398.64

-27.1

-6.37

Mar 2013

Mar 2014

Gross Block

456.57

501.1

44.53

9.75

Less: Revaluation Reserves

20.13

6.26

-13.87

-68.90

Less: Accum. Depreciation

165.01

184.64

19.63

11.90

Net Block

271.43

310.2

38.77

14.28

Capital Work in Progress

74.16

0.56

-73.6

-99.24

Investments

70.4

70.4

0

0.00

Inventories

60.63

61.14

0.51

0.84

Sundry Debtors

68.57

68.96

0.39

0.57

Cash and Bank Balance

6.28

12.88

6.6

105.10

Total Current Assets

135.48

142.98

7.5

5.54

Loans and Advances

97.12

97.83

0.71

0.73

Total CA, Loans & Advances

232.6

240.81

8.21

3.53

Current Liabilities

220.54

218.97

-1.57

-0.71

%

Sources Of Funds

Application Of Funds

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 44

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Provisions Total CL & Provisions Net Current Assets Total Assets

2.31

4.36

2.05

88.74

222.85

223.33

0.48

0.22

9.75

17.48

7.73

79.28

425.74

398.64

-27.1

-6.37

Mar

Mar

2013

2014

Revenue From Operations [Gross]

449.44

448.61

-0.83

-0.18

Less: Excise/Service Tax/Other Levies

43.22

43.02

-0.2

-0.46

Revenue From Operations [Net]

406.22

405.59

-0.63

-0.16

Other Operating Revenues

11

23.33

12.33

112.09

Total Operating Revenues

417.22

428.92

11.7

2.80

Other Income

10.33

14.73

4.4

42.59

Total Revenue

427.55

443.65

16.1

3.77

208.99

208.61

-0.38

-0.18

-3.43

0.8

4.23

-123.32

Employee Benefit Expenses

46.92

48.38

1.46

3.11

Finance Costs

46.25

59.57

13.32

28.80

Depreciation And Amortization Expenses

26.29

28.16

1.87

7.11

Other Expenses

101.1

96.32

-4.78

-4.73

426.12

441.84

15.72

3.69

1.43

1.81

0.38

26.57

0

-1.5

-1.5

#DIV/0!

Variance

Changes in %

INCOME

EXPENSES Cost Of Materials Consumed Changes In Inventories Of FG,WIP And Stock-In Trade

Total Expenses Profit/Loss Before Exceptional, Extraordinary Items And Tax Exceptional Items

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 45

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Profit/Loss Before Tax

1.43

0.31

-1.12

-78.32

Current Tax

0

0

0

Deferred Tax

1.13

0

-1.13

-100.00

Total Tax Expenses

1.13

0

-1.13

-100.00

0.3

0.31

0.01

3.33

Profit/Loss From Continuing Operations

0.3

0.31

0.01

3.33

Profit/Loss For The Period

0.3

0.31

0.01

3.33

Tax Expenses-Continued Operations

Profit/Loss After Tax And Before Extraordinary Items

Interpretation According to comparison of 2013 – 14 Total Share capital as growing 0.03 Crores, reserves and surplus is growing up to 6.78 Crores, Total Liabilities is decreasing up to -27.1, Inventories increased up to 0.51 Crores and Total Currents has increased up to 7.5 Crores. But Revenue From Operations [Gross] has decreased and showing negative figure as -0.83, Total revenue of the company has increased up to 16.1 crores and total expenses of the company is also increased up to 15.72 Crores.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 46

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

COMPARTIVE ANALYSIS FOR THE YEAR 2014 & 2015 Mar

Mar

'14

'15

Total Share Capital

5.44

6.34

0.9

16.54

Equity Share Capital

5.44

6.34

0.9

16.54

Share Application Money

10

0

-10

-100.00

Reserves

137.45

263.8

126.35

91.92

Networth

152.89

270.14

117.25

76.69

Secured Loans

220.23

237.2

16.97

7.71

Unsecured Loans

25.52

13.67

-11.85

-46.43

Total Debt

245.75

250.87

5.12

2.08

Total Liabilities

398.64

521.01

122.37

30.70

Gross Block

501.1

486.07

-15.03

-3.00

Less: Revaluation Reserves

6.26

4.72

-1.54

-24.60

Less: Accum. Depreciation

184.64

199.71

15.07

8.16

Net Block

310.2

281.64

-28.56

-9.21

Capital Work in Progress

0.56

0.08

-0.48

-85.71

Investments

70.4

165.4

95

134.94

Inventories

61.14

82.56

21.42

35.03

Sundry Debtors

68.96

90.12

21.16

30.68

Cash and Bank Balance

12.88

8.83

-4.05

-31.44

Total Current Assets

142.98

181.51

38.53

26.95

Loans and Advances

97.83

120.13

22.3

22.79

Total CA, Loans & Advances

240.81

301.64

60.83

25.26

Current Liabilities

218.97

207.85

-11.12

-5.08

Variance

Changes in %

Sources Of Funds

Application Of Funds

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 47

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Provisions

4.36

19.9

15.54

356.42

Total CL & Provisions

223.33

227.75

4.42

1.98

Net Current Assets

17.48

73.89

56.41

322.71

Total Assets

398.64

521.01

122.37

30.70

Mar

Mar

'14

'15

Revenue From Operations [Gross]

448.61

465.21

16.6

3.70

Less: Excise/Sevice Tax/Other Levies

43.02

30.74

-12.28

-28.54

Revenue From Operations [Net]

405.59

434.47

28.88

7.12

Other Operating Revenues

23.33

22.06

-1.27

-5.44

Total Operating Revenues

428.92

456.53

27.61

6.44

Other Income

14.73

7.81

-6.92

-46.98

Total Revenue

443.65

464.34

20.69

4.66

208.61

224.91

16.3

7.81

0.8

-7.74

-8.54

-1067.50

Employee Benefit Expenses

48.38

65.15

16.77

34.66

Finance Costs

59.57

53.73

-5.84

-9.80

Depreciation And Amortisation Expenses

28.16

28.5

0.34

1.21

Other Expenses

96.32

107.2

10.88

11.30

441.84

471.75

29.91

6.77

1.81

-7.41

-9.22

-509.39

Exceptional Items

-1.5

37.19

38.69

-2579.33

Profit/Loss Before Tax

0.31

29.78

29.47

9506.45

Variance

Changes in %

INCOME

EXPENSES Cost Of Materials Consumed Changes In Inventories Of FG,WIP And Stock-In Trade

Total Expenses Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 48

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Tax Expenses-Continued Operations Current Tax

0

14.51

14.51

Deferred Tax

0

-5.78

-5.78

Total Tax Expenses

0

8.73

8.73

0.31

21.05

20.74

6690.32

Profit/Loss From Continuing Operations

0.31

21.05

20.74

6690.32

Profit/Loss For The Period

0.31

21.05

20.74

6690.32

Profit/Loss After Tax And Before ExtraOrdinary Items

Interpretation According to comparison of 2014-15 Total Share capital as growing 0.9 Crores, reserves and surplus is growing up to 126.35 Crores, Current Liabilities decreased up to -11.12 and Total Liabilities is increased up to 122.37, Inventories increased up to 95 Crores and Total Currents has increased up to 38.53 Crores. But Revenue From Operations [Gross] has increased and showing figure as 16.6 , Total revenue of the company has increased up to 20.69 crores and total expenses of the company is also increased up to 29.91 Crores.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 49

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

COMPARTIVE ANALYSIS FOR THE YEAR 2015 & 2016 Changes

Mar

Mar

2015

2016

Variance

in %

Total Share Capital

6.34

6.34

0

0.00

Equity Share Capital

6.34

6.34

0

0.00

Share Application Money

0

0

0

Reserves

263.8

268.16

4.36

1.65

Net worth

270.14

274.5

4.36

1.61

Secured Loans

237.2

300.63

63.43

26.74

Unsecured Loans

13.67

0.19

-13.48

-98.61

Total Debt

250.87

300.82

49.95

19.91

Total Liabilities

521.01

575.32

54.31

10.42

Gross Block

486.07

499.69

13.62

2.80

Less: Revaluation Reserves

4.72

4.69

-0.03

-0.64

Less: Accum. Depreciation

199.71

222.73

23.02

11.53

Net Block

281.64

272.27

-9.37

-3.33

Capital Work in Progress

0.08

0

-0.08

-100.00

Investments

165.4

185.39

19.99

12.09

Inventories

82.56

114.8

32.24

39.05

Sundry Debtors

90.12

98.5

8.38

9.30

Cash and Bank Balance

8.83

6.28

-2.55

-28.88

Total Current Assets

181.51

219.58

38.07

20.97

Loans and Advances

120.13

84.46

-35.67

-29.69

Total CA, Loans & Advances

301.64

304.04

2.4

0.80

Current Liabilities

207.85

175.62

-32.23

-15.51

Provisions

19.9

11.19

-8.71

-43.77

Sources Of Funds

Application Of Funds

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 50

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Total CL & Provisions

227.75

186.81

-40.94

-17.98

Net Current Assets

73.89

117.23

43.34

58.65

Total Assets

521.01

574.89

53.88

10.34

Mar

Mar

2015

2016

Changes Variance

in %

INCOME Revenue From Operations [Gross]

465.21 439.62 -25.59

-5.50

Less: Excise/Service Tax/Other Levies

30.74

-10.67

Revenue From Operations [Net]

434.47 412.16 -22.31

-5.13

Other Operating Revenues

22.06

-12.92

Total Operating Revenues

456.53 431.37 -25.16

-5.51

Other Income

7.81

-48.66

Total Revenue

464.34 435.38 -28.96

-6.24

224.91 215.56 -9.35

-4.16

Stock-In Trade

-7.74

-29.57

-21.83

282.04

Employee Benefit Expenses

65.15

60.2

-4.95

-7.60

Finance Costs

53.73

51.63

-2.1

-3.91

Depreciation And Amortization Expenses

28.5

29.11

0.61

2.14

Other Expenses

107.2

110.88 3.68

3.43

Total Expenses

471.75 437.81 -33.94

-7.19

Extraordinary Items And Tax

-7.41

-2.43

4.98

-67.21

Exceptional Items

37.19

0

-37.19

-100.00

Profit/Loss Before Tax

29.78

-2.43

-32.21

-108.16

27.46

19.21

4.01

-3.28

-2.85

-3.8

EXPENSES Cost Of Materials Consumed Changes In Inventories Of FG,WIP And

Profit/Loss Before Exceptional,

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 51

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Tax Expenses-Continued Operations Current Tax

14.51

-1.04

-15.55

-107.17

Deferred Tax

-5.78

-2.68

3.1

-53.63

Total Tax Expenses

8.73

-3.72

-12.45

-142.61

Extraordinary Items

21.05

1.29

-19.76

-93.87

Profit/Loss From Continuing Operations

21.05

1.29

-19.76

-93.87

Profit/Loss For The Period

21.05

1.29

-19.76

-93.87

Profit/Loss After Tax And Before

Interpretation According to comparison of 2015-16 Total Share capital as constant no changes in that, reserves and surplus is growing up to 4.36 Crores, Current Liabilities decreased up to -32.23 and Total Liabilities is increased up to 54.31, Inventories increased up to 32.24 Crores and Total Currents has increased up to 38.07 Crores. But Revenue From Operations [Gross] has decreased and showing figure as -25.59, Total revenue of the company has decreased up to -28.96 crores and total expenses of the company is also decreased up to -33.94 Crores.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 52

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

COMPARTIVE ANALYSIS FOR THE YEAR 2016 & 2017 Changes

Mar

Mar

2016

2017

Variance

in %

Total Share Capital

6.34

6.34

0

0.00

Equity Share Capital

6.34

6.34

0

0.00

Share Application Money

0

0

0

Reserves

268.16

276.85

8.69

3.24

Net worth

274.5

283.19

8.69

3.17

Secured Loans

300.63

512.28

211.65

70.40

Unsecured Loans

0.19

9.48

9.29

4889.47

Total Debt

300.82

521.76

220.94

73.45

Total Liabilities

575.32

804.95

229.63

39.91

Gross Block

499.69

535.95

36.26

7.26

Less: Revaluation Reserves

4.69

4.69

0

0.00

Less: Accum. Depreciation

222.73

249.87

27.14

12.19

Net Block

272.27

281.39

9.12

3.35

Capital Work in Progress

0

0

0

Investments

185.39

312.87

127.48

68.76

Inventories

114.8

128.26

13.46

11.72

Sundry Debtors

98.5

121.65

23.15

23.50

Cash and Bank Balance

6.28

22.83

16.55

263.54

Total Current Assets

219.58

272.74

53.16

24.21

Loans and Advances

84.46

73.77

-10.69

-12.66

Total CA, Loans & Advances

304.04

346.51

42.47

13.97

Current Liabilities

175.62

126.61

-49.01

-27.91

Provisions

11.19

15.12

3.93

35.12

Sources Of Funds

Application Of Funds

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 53

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Total CL & Provisions

186.81

141.73

-45.08

-24.13

Net Current Assets

117.23

204.78

87.55

74.68

Total Assets

574.89

799.04

224.15

38.99

Mar

Mar

2016

2017

Variance

in %

Revenue From Operations [Gross]

439.62

514.11

74.49

16.94

Less: Excise/Service Tax/Other Levies

27.46

26.4

-1.06

-3.86

Revenue From Operations [Net]

412.16

487.71

75.55

18.33

Other Operating Revenues

19.21

17.69

-1.52

-7.91

Total Operating Revenues

431.37

505.4

74.03

17.16

Other Income

4.01

11.96

7.95

198.25

Total Revenue

435.38

517.36

81.98

18.83

215.56

238.57

23.01

10.67

Stock-In Trade

-29.57

-9.2

20.37

-68.89

Employee Benefit Expenses

60.2

67.48

7.28

12.09

Finance Costs

51.63

57.09

5.46

10.58

Depreciation And Amortization Expenses

29.11

31.14

2.03

6.97

Other Expenses

110.88

110.95

0.07

0.06

Changes

INCOME

EXPENSES Cost Of Materials Consumed Changes In Inventories Of FG,WIP And

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 54

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Interpretation According to comparison of 2016-17 Total Share capital as constant no changes in that, reserves and surplus is growing up to 8.69 Crores, Current Liabilities decreased up to -49.01 and Total Liabilities is increased up to 229.63, Inventories increased up to 13.46 Crores and Total Currents has increased up to 53.16 Crores. But Revenue From Operations [Gross] has increased and showing figure as 74.49, Total revenue of the company has increased up to 81.98 crores

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 55

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

CHAPTER - 5 FINDINGS, SUGGESTIONS AND CONCLUSION 5.1 FINDINGS 

Highest Trend percent in Equity Share Capital has found in the year 2014-15 as 117%



Highest Trend percent in Reserve has found in the year 2016-17 as 362%



Highest Trend percent in secured loan has found in the year 2016-17 as 212%



Highest Trend percent in Total Debt has found in the year 2016 – 17 as 188%



Highest Trend percent in Total Liabilities has found in the year 2016-17 as 189%



Highest Trend percent in Investment has found in the year 2016-17 as 444%



Highest Trend percent in Current Assets has found in the year 2016-17 as 201%



Highest Trend percent in Inventories has found in the year 2016-17 as 211.5%



Highest Trend percent in Loans and Advances has found in the year 2014-15 as 123.69%



Highest Trend percent in Current Liabilities has found in the year 2012-13 as 100%



The highest Current ratio was recorded in the year 2016-17 is 2.15%



The highest Quick ratio was recorded in the year 2016-17 is 1.14%,



The highest Debt Equity ratio was recorded in the year 2014-15 is 18.95%



The highest Equity Multiplier ratio was recorded in the year 2016-17 is 126.03%,



The highest Return on Equity ratio was recorded in the year 2013-14 is 2.71%

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 56

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

5.2 SUGGESTIONS 

The acquirers need to identify appropriate target that has complimentary fit within the acquirers own organizational structure, product portfolio and work culture



Acquirers need to find out if they are overpaying for their acquisitions as it is one of the most important reasons for failure of mergers and acquisitions in creating shareholder value



It is suggested that the valuations for a target firms be carefully decided based on rational judgments and not because the acquirer can afford paying extra premiums

 It becomes imperative for acquirers to evaluate the inorganic growth strategy against the organic growth options available.

 Investors need to study the fundamentals of acquirer firm before investing in its shares for long term. The mismatch between market valuation and fair valuation of firm once discovered can result in substantial losses to investors thereby eroding their wealth from holdings in acquirer firm.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 57

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

5.3 CONCLUSION Mergers and acquisitions have increased significantly in India in recent times. The inorganic growth option has occupied a significant place in strategy formulation process of Indian corporate sector. While mergers have occurred in India in 1970s and 1980s, the focus then was on revival of sick units, social good and managing the forces of strict regulations including licensing raj and permits. The focus of corporate restructuring through mergers and acquisitions has since then changed. Particularly, with implementation of economic reforms in 1991 and opening up of Indian economy, the Indian corporate firms have started looking at mergers and acquisitions from a very different perspective - that of being competitive, increasing market share, cost reduction and control, product portfolio diversification, supply chain management and exploiting core competence. The objective of mergers and acquisitions today is not only building a strong business empire and improving profitability, but passing on the benefits of mergers to shareholders in terms of increased wealth. In conclusion, there have been a number of debates on which objective a firm should give first priority. In finance perspective, modern finance experts assert that maximizing shareholder wealth is superior to other goals of the firm such as stakeholder interest, profit maximization, survival, etc. However, the firm must parallel this goal with satisfying other important constituencies in order to achieve a sustainable development. These imply that the firm should have good corporate governance to bring in not only the benefits for shareholders but also other stakeholders.

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 58

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

ANNEXURE FINANCIAL STATEMENT Dynamatic Technologies Rs. in Cr Mar 17 Mar 16

Mar 15

Mar 14

Mar 13

514.11 439.62

465.21

448.61

449.44

26.40

30.74

43.02

43.22

487.71 412.16

434.47

405.59

406.22

Other Operating Revenues

17.69

22.06

23.33

11.00

Total Operating Revenues

505.40 431.37

456.53

428.92

417.22

Other Income

11.96

7.81

14.73

10.33

Total Revenue

517.36 435.38

464.34

443.65

427.55

238.57 215.56

224.91

208.61

208.99

-9.20

-29.57

-7.74

0.80

-3.43

Employee Benefit Expenses

67.48

60.20

65.15

48.38

46.92

Finance Costs

57.09

51.63

53.73

59.57

46.25

31.14

29.11

28.50

28.16

26.29

INCOME Revenue

From

Operations

[Gross] Less: Excise/Sevice Tax/Other Levies Revenue

From

Operations

[Net]

27.46

19.21

4.01

EXPENSES Cost Of Materials Consumed Changes

In

Inventories

Of

FG,WIP And Stock-In Trade

Depreciation And Amortisation Expenses

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 59

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Other Expenses

110.95 110.88

107.20

96.32

101.10

Total Expenses

496.03 437.81

471.75

441.84

426.12

Mar 17 Mar 16

Mar 15

Mar 14

Mar 13

21.33

-2.43

-7.41

1.81

1.43

Exceptional Items

-7.88

0.00

37.19

-1.50

0.00

Profit/Loss Before Tax

13.45

-2.43

29.78

0.31

1.43

Profit/Loss Before Exceptional, Extra Ordinary Items And Tax

Tax Expenses-Continued Operations Current Tax

7.39

-1.04

14.51

0.00

0.00

Deferred Tax

-1.53

-2.68

-5.78

0.00

1.13

Total Tax Expenses

5.86

-3.72

8.73

0.00

1.13

7.59

1.29

21.05

0.31

0.30

7.59

1.29

21.05

0.31

0.30

7.59

1.29

21.05

0.31

0.30

Profit/Loss

After

Tax

And

Before ExtraOrdinary Items Profit/Loss From Continuing Operations Profit/Loss For The Period Standalone Balance Sheet

------------------- in Rs. Cr. ------------------Mar 17 Mar 16

Mar 15 Mar 14 Mar 13

EQUITIES AND LIABILITIES SHAREHOLDER'S FUNDS Equity Share Capital

6.34

6.34

6.34

5.44

5.41

Total Share Capital

6.34

6.34

6.34

5.44

5.41

Revaluation Reserves

4.69

4.69

4.72

6.26

20.13

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 60

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Reserves and Surplus

276.85 268.16

263.80 137.45 130.67

Total Reserves and Surplus

281.54 272.85

268.52 143.71 150.80

Money Received Against Share Warrants Total Shareholders Funds

0.00

0.00

0.00

10.00

12.50

287.88 279.19

274.86 159.15 168.71

369.00 211.58

115.40 149.19 145.39

NON-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liabilities [Net]

18.02

19.55

22.23

28.01

28.01

Other Long Term Liabilities

0.82

0.68

1.15

6.61

10.40

Long Term Provisions

9.48

7.78

6.79

2.53

1.56

Total Non-Current Liabilities

397.32 239.59

145.57 186.34 185.36

152.76

89.24

135.47

96.56 131.77

Trade Payables

88.20

88.80

100.98

87.57

87.58

Other Current Liabilities

19.57

66.59

83.49

96.78

94.55

5.64

3.41

13.11

1.83

0.75

CURRENT LIABILITIES Short Term Borrowings

Short Term Provisions Total Current Liabilities

266.17 248.04

333.05 282.74 314.65

Total Capital And Liabilities

951.37 766.82

753.48 628.23 668.72

273.68 261.28

267.16 294.67 266.91

ASSETS NON-CURRENT ASSETS Tangible Assets Intangible Assets

12.40

15.68

19.20

21.79

24.65

Capital Work-In-Progress

5.91

0.43

0.08

0.56

72.28

Intangible Assets Under

0.00

0.00

0.00

0.00

1.88

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 61

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru Development Fixed Assets

291.99 277.39

286.44 317.02 365.72

Non-Current Investments

312.87 185.39

165.40

70.40

70.40

Long Term Loans And Advances Other Non-Current Assets Total Non-Current Assets

16.00

16.02

14.47

12.94

29.58

4.96

9.14

13.06

5.65

3.83

625.82 487.94

479.37 406.01 469.53

CURRENT ASSETS Inventories

128.26 114.80

82.56

61.14

60.63

Trade Receivables

121.65

98.50

90.12

68.96

68.57

Cash And Cash Equivalents

22.83

6.28

8.83

12.88

6.28

Short Term Loans And Advances

38.26

45.14

76.54

58.38

47.30

Other Current Assets

14.55

14.16

16.06

20.86

16.41

Total Current Assets

325.55 278.88

274.11 222.22 199.19

Total Assets

951.37 766.82

753.48 628.23 668.72

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 62

Share Holders Wealth Maximization at Dynamatic Technologies Ltd., Bengaluru

BIBLIGORAPHY JOURNALS AND ARTICLES L Prrabha, Jayapriya R and Joslin Monica LA (2017) " A study on shareholders’ wealth maximization of muthoot finance limited" , International Journal of Applied Research 2017; 3(3): 501-503 Merugu Venugopal and Dr. M Ravindar Reddy (2016), "Impact of capital structure on firm’s profitability and shareholder wealth maximization: A study of listed Indian cement companies", IOSR Journal of Business and Management (IOSRJBM), Volume 18, Issue 4 .Ver. III (Apr. 2016) Fernando Gómez-Bezares , Wojciech Przychodzen and Justyna Przychodzen (2016), “Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis”, www.mdpi.com/journal/sustainability, Sustainability 2016 C.N. Ozuomba, A.S. Anichebe and P.V.C. Okoye (2016) “The effect of dividend policies on wealth maximization – a study of some selected places”, Ozuomba et al., Cogent Business & Management (2016) kwadwo Boateng Premepeh and Eugene Odartei-Mills (2015), "Corporate governance structure and shareholder wealth maximization", MPRA Paper No. 68087, posted 27. November 2015 15:28 UTC Kouki Marouan1 and Dabboussi Moez (2015), "Impact of Corporate Governance on Shareholder Value Creation: Evidence from Tunisian Context" , International Business Research; Vol. 8, No. 5; 2015

WEBSITES https://www.dynamatics.com/about.shtml

PG Dept. of Management Studies and Research Centre, PESITM, Shivamogga Page 63