JK Tyre & Industries Ltdis anAutomotiveTyre,TubesandFlapsmanufacturing company based inDelhi, India. The name JK is derived from the initials of Kamlapatji (18841937) and his father Seth Juggilal (18571922).It is theRadial tireLeader in India and is the only tyre manufacturer offering the entire range of 4 wheeler radials forTrucks,BusesandCars.JK Tyre has a worldwide customer base in over 80 countries across all 6 continents. It is a part ofJ. K. Organisationgroup of Companies. JK Tyre acquired Mexican tyre major Tornelin 2008

THE FOUNDERSJK Organization owes its name to Late Lala Juggilal Singhania, a dynamic personality with a broad vision. Inspired by the cause of the Swadeshi movement of Mahatma Gandhi, and driven by the zeal to set up an Indian enterprise, Lala Kamlapat Singhania founded J.K. Organization in the 19th century ushering in a new industrial era in India. The process of industrialization and diversification was worthily and successfully carried on by Lala Kamlapats three illustrious sons-Sir Padampat, Lala kailashpat and Lala Lakshmipat, aided in no small measure by the late Gapal Krishna son of Sir Padampat.

Vision: TO BE AMONGEST THE MOST ADMIRED COMPANIES IN INDIA COMMITED TO EXCELLENCEMISSION: BE A CUSTOMER OBSESSED COMPANY. NO.1 TYRE BRAND IN INDIA. DELIVER ENHANCED VALUE TO ALL STAKE HOLDER. MOST PROFITABLE TYRE COMPANY IN INDIA. ENHANCE GLOBAL PRESENCE THROUGH ACQUISITION.

J K IndustriesJK Organization has been a forerunner in the economic and social advancement of India. It always aimed at creating job opportunities for a multitude of country men and provides high quality of products. It has driven to make India self reliant by pioneering the production of number of industrial and consumer products, by adopting latest as well as developing its own know-how. It has also under taken industrial ventures in several other countries. JK Organization is an association of industrial and commercial companies and charitable trust. Its member companies, employing nearly 50000 persons are engaged in the manufacture of variety of products and in diverse fields of commerce. Trust are devoted to promoting industrial, technical and medical researches, education, religious values and providing better living and recreational facility. With the spirit of social consciousness uppermost in mind, JK organization is committed to cause the human advancement.

Background and inception of the company

1933First in India to manufacture calico prints- {Juggilal Kamlapat cottons spinning and weaving mills company, Kanpur.}

1940First in India to manufacture steel bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand- J.K Iron and Steel Co. Ltd., Kanpur.

1944First in India to produce Aluminum Virgin Metal for Indian Bauxite-Aluminum CorpoRATIOn of India Ltd., Jaykayanagar.

1949First in India to manufacture Engineering files- J.K. Engineers files Bombay.

1959First in India to set up a continuous process Rayon plant.

1960First in India to set up a Hydraulically operated Cane Crushing Mill for Kandsari Sugar Plant and completed 100 ton plant.

1961First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalagam process- J.K. Chemicals Ltd., Bombay.

1962First in India to produce Nylon-6 with its own polymerized raw material- J.K. Synthetics Ltd., Kota.

1965First to produce sodium Sulphoxylate Formaldehyde [Rangolite C of Formosul] in India- J.K. Chemicals Ltd., Bombay.

1968First to manufacture TV sets in India- J.K. Electronics, Kanpur.

1976First in India to produce steel belted Radial tyres for passenger car, trucks and buses- J.K. Tyre plant, Kankroli.

1980First in the world to make steel belted radial tyres for 3 wheelers.

1984First in India to produce white cement through dry process.

1985First in India to produce cathonic Dye able Polyester Fiber.

1989First in India to produce magnetic tapes with cobalt technology.

1991Banmore tyre plant {BTP} set up with the capacity of 5.7 lacks tyres per annum.

1992R&D centre setup at HASTERI.

1994Indias first T-rated tyre launched Banmore Tyre Plant {BTP} Crossed 100 TPD.

1995Mercedes Benz launched on JK STEEL RADIALS first tyre manufacturer in the world to get ISO 9001.

1996Indias first dual contact high tractions steel radial- aqua sonic launched. {Introduce steel wheels}.

1998First tyre manufacturer in the world to get QS 9000. Awarded CAPEXILS highest export award for 1997-98.

1999Synergy with VTL in procurement, marketing and production flexibility. Completion of states of the art modernizations of truck radials J.K. Tyres ranked 16th largest tyre company in the world ISO- 14001 accreditation for environment and safety.

2000J.K. introduced national Go- carting championships.

2001J.K. industries received FOCUS LAC EXPORT award for the year 1999-2000.Commendation certification of CII ND National exam. Go- carting championships held.

J K GROUP DIVERSIFICATION

JK ORGANISATIONJ.K. Organization, founded over 100 years ago, is an eminent industrial group in India. The Group has multi-business, multi-product and multi-location opeRATIOns

JK PAPER LTD.JK Paper Limited is one of the leading manufacturers of reading and writing paper

JK LAKSHMI CEMENT LTD.JK Lakshmi Cement Limited is a well respected name in the cement industry in India

FENNER (I) LTD.Fenner (I) Limited is a leading manufacturer of Industrial and Automotive Belts, Oil Seals, Power Transmission Accessories and Textile Yarn

UMANG DAIRIES LTD.The Creme de la creme of dairy foods

JK AGRI-GENETICS LTD.At JK Agri-genetics limited, concentrates on Research and Development, production, processing and marketing of hybrid seeds.

JK SUGAR LTD.The company's principle activity is to manufacture Sugar. However, the company currently operates in two segments. Power and Sugar

JK RISK MANAGERS AND INSURANCE BROKERS LTD.Services rendered to various clients for all facets of Insurance both life & non-life.

CLINIRX RESEARCH PRIVATE LTD.Full Service Contract Research Organization (CRO)

JK TYRES PLANTS

Mysore plant- 1 {VTP}-Karnataka

Mysore plant- 2 {VTP Radial}-Karnataka

Kankroli -Rajasthan

Banmore-Madhya Pradesh

MANUFACTURING LOCATIONSJK Tyre has five Modern plants in India which are strategically located at Mysore plant-1(VTP) Karnataka Mysore plant-2(VTP Radial) Karnataka Banmore, Madhya Pradesh Kankroli, RajasthanJK Tyre has also enhanced its global reach by taking over Tornel a renowed Mexican company, which has 3 plants in Mexico. All these plants are equipped with Worlds most advanced manufacturing and testing machines.

VIKRANT BIAS TYRE PLANT VIKRANT RADIAL TYRE PLANT

VIKRANT OTR PLANT

KANKROLI TYRE PLANT BANMORE TYRE PLANT

Three plants in Mysore are VTP -Vikrant Tyre Plant OTR Off the road Tyre plant RTP - Truck Radial PlantAchievements /awards1. JK Tyres ranked 16th largest company in the world. 2. ISO 14001 accreditation for environment and safety.3. Indias first T rated tyre launched.4. Mercedes Benz launched on JK Tyres radials first tyre manufacture in the world to get ISO 9001.5. Only tyre manufacture to get E mark certification.6. First tyre manufacture in the world to get QS 9000.7. Awarded CEPEXILS highest export for 1997-98.8. JK introduced national Go-carting championships.9. JK industries received FOCUS LAC EXPORT award for the year 1999 and 2000.10. Certified to ISO 9000 (1994 quality management systems).11. First Indian Tyre Company to adopt process based management process based management through business process re-engineering (BPRO).

TOP LEVEL MANAGEMENT J.K. TYRE & INDUSTRIES LTDBoard of Directors:-1) Mr. Hari Shankar Singhania (Chairman)2) Mr. Raghupati Singhania(Vice Chairman/Managing Director3) Mr. Bharat Hari Singhania (Managing Director)

THEORETICAL ASPECT

Profitability Ratios: - The profitability or financial performance is mainly summarised in Income Statement. Profitability ratios are calculated to analyse the earning capacity of the business which is the outcome of utilisation of resources employed in the business. There is a close relationship between the profit and the efficiency with which the resources employed in the business are utilised. The various ratios which are commonly used to analyse the profitability of the business are:

Gross Profit Ratio: - Gross profit ratio as a percentage of sales is computed to have an idea about gross margin. It is computed as follows:

Gross Profit Gross Profit Ratio: 100 Net Sales

Significance: It indicates gross margin or mark-up on products sold. There is no standard norm for its comparison. It also indicates the margin available to cover operating expenses, non-operating expenses, etc. Change in gross profit ratio may result from change in selling price or cost of sales or a combination of both. A low ratio may indicate unfavourable purchase and sales policy. It must be interpreted carefully as valuation of stock also affects its computation. Higher Gross profit ratio is always a good sign.

Operating Ratio: - It is computed to analyse cost of operation in relation to sales. It is calculated as Follows: (Cost of Sales + Operating Expenses) Operating Ratio: 100 Net Sales

Operating expenses include office expenses, administrative expenses, selling expenses and distribution expenses. Cost of operation is determined by excluding non- operating incomes and expenses such as loss on sale of assets, interest paid, dividend received, loss by fire, speculation gain and so on.

Operating Profit Ratio:- It is calculated to reveal operating margin. It may be computed directly or as a residual of operating ratio.

Operating Profit Ratio= 100 Operating Ratio

Alternatively, it is calculated as under:

Operating Profit Operating Profit Ratio: 100 Sales

Where Operating Profit = Sales Cost of Operation

Significance: Operating Ratio is computed to express cost of operations excluding financial charges in relation to sales. A corollary of it is Operating Profit Ratio. It helps to analyse the performance of business and throws light on the operational efficiency of the business. It is very useful for inter-firm as well as Intra-firm comparisons. Lower operating ratio is a very healthy Sign.

Net Profit Ratio: - Net Profit Ratio is based on all inclusive concept of profit. It relates sales to net profit after operational as well as non-operational expenses and incomes. It is calculated as under: Net profit Net Profit Ratio: 100 Sales Generally, net profit refers to Profit after Tax (PAT). Significance: - It is a measure of net profit margin in relation to sales. Besides revealing profitability, it is the main variable in computation of Return on Investment. It reflects the overall efficiency of the business, assumes great significance from the point of view of investors.

Return on Capital Employed or Investment (ROCE or ROI):- It explains the overall utilization of funds by a business enterprise. Capital employed means the long-term funds employed in the business and includes shareholders fund, debentures and long-term loans. Alternatively, capital employed may be taken as the total of non-factious assets current liabilities. Profit refers to the Profit before Interest and Tax (PBIT) for Computation of this ratio. Thus, it is computed as follows:

Return on Investment (or Capital Employed) Profit before Interest and Tax : 100 Capital Employed

Significance: - It measures return on capital employed in the business. It reveals the efficiency of the business in utilisation of funds entrusted to it by shareholders, debenture-holders and long-term liabilities. For inter-firm comparison, return on capital employed which reveals overall utilisation of fund is considered good measure of profitability. It also helps in assessing whether the firm is earning a higher return on capital employed as compared to the interest rate paid.

PRACTICAL ASPECTS

Gross Profit Ratio: - Gross profit ratio as a percentage of sales is computed to have an idea about gross margin. It is computed as follows:

Gross Profit Gross Profit Ratio: 100 Net Sales

YearGROSS PROFIT RATIO

2009-1010.14

2010-114.57

2011-123.15

2012-136.89

2013-148.45

Operating Profit Ratio:- It is calculated to reveal operating margin. It may be computed directly or as a residual of operating ratio. Operating Ratio: - It is computed to analyse cost of operation in relation to sales. It is calculated as Follows: (Cost of Sales + Operating Expenses) Operating Ratio: 100 Net Sales

Operating Profit Ratio= 100 Operating Ratio

Alternatively, it is calculated as under:

Operating Profit Operating Profit Ratio: 100 Sales

Where Operating Profit = Sales Cost of Operation

YearOPERATING PROFIT RATIO

2009-1013.12

2010-116.96

2011-124.95

2012-138.97

2013-1411.01

Net Profit Ratio: - Net Profit Ratio is based on all inclusive concept of profit. It relates sales to net profit after operational as well as non-operational expenses and incomes. It is calculated as under: Net profit Net Profit Ratio: 100 Sales Generally, net profit refers to Profit after Tax (PAT).

YearNET PROFIT RATIO

2009-104.42

2010-111.27

2011-120.19

2012-131.93

2013-142.25

Return on Capital Employed or Investment (ROCE or ROI):- It explains the overall utilization of funds by a business enterprise. Capital employed means the long-term funds employed in the business and includes shareholders fund, debentures and long-term loans. Alternatively, capital employed may be taken as the total of non-factious assets current liabilities. Profit refers to the Profit before Interest and Tax (PBIT) for Computation of this ratio. Thus, it is computed as follows:

Return on Investment (or Capital Employed) Profit before Interest and Tax : 100 Capital Employed

YearReturn on Investment (or Capital Employed)

2009-1016.98

2010-1113.09

2011-127.74

2012-1311.99

2013-1424.84

data analysis Gross Profit Ratio: - Gross Profit Gross Profit Ratio: 100 Net Sales

Year2009-102010-112011-122012-132013-14

GROSS PROFIT RATIO10.144.573.156.898.45

Operating Profit Ratio:-

Operating ProfitOperating Profit Ratio: 100 SALES

OR Where Operating Profit = Sales Cost of Operation

Year2009-102010-112011-122012-132013-14

OPERATING PROFIT RATIO13.126.964.958.9711.01

Net Profit Ratio: - Net profit Net Profit Ratio: 100 Sales Year2009-102010-112011-122012-132013-14

Net Profit Ratio4.421.270.191.932.25

Return on Capital Employed or Investment

Return on Investment (or Capital Employed) Profit before Interest and Tax : 100 Capital Employed

Year2009-102010-112011-122012-132013-14

Return on Investment24.8411.997.7413.0916.98