Financial-Analysis of Lanco Industries

Financial performance 1.
1 INTRODUCTION
Financial Analysis is the process of identifying the financial strengths and weaknesses of the firm by property-establishing relationship between the items of the Balance Sheet and the Profit and Loss account. There are arious methods or techni!ues are used in analy"ing financial schedule of change in working capital flow# cost olume Profit Analysis and $atio Analysis. MEANING OF FINANCIAL ANALYSIS:The meaning of Financial Analysis is also known as analysis refers to the process of determining according to %eta fund tutored is a process of e aluating the relationship between components parts of a financial statements to obtain a better understanding of a firm&s position and performance. 'n the word of %yers( Financial statements analysis is largely a study of relationship among the arious financial factors in a series of statements(. The purpose of financial statements so as to )udge the profitability and financial soundness of the firm. DEVICES OF FINANCIAL ANALYSIS: There are se eral methods for determining the financial analysis of the company. They are as follows*+. ,omparati e Statement -. Trend Analysis .. ,ommon si"e Statement /. Funds Flow Statement
1 RAOS INSTITUTE OF MANGEMENT STUDIES
Financial performance
0. ,ash Flow Statement 1. $atio Analysis 2. ,ost-3olume Profit analysis Financial Analysis can be undertaken by management of the firm or by parties out side the firm 4wners# ,reditors# 'n estors and 4thers. The structure of Assets# Liabilities and 4wner&s e!uity and so on and the Profit 5 Loss account shows the results of operation during a certain period of times in terms of the re enue obtained during a certain period of times in terms of the re enue obtained and the cost incurred during the year. Thus# the financial position and operational statement pro ides a summari"ed iew of the financial position and operation of the firm. The Financial Analysis statements are thus an important aid to Financial Analysis. The first task of the Financial Analyst is to select the information rele ant to the decisions under consideration from the total information contained in the financial statements. 'n the brief Financial Analysis are the process of selection# relation and 6 aluation.
Financial performance 1.2 INDUSTRY PROFILE

CEMENT INDUSTRY IN INDIA: 'ndia# being the second largest cement producer in the world after china with a total capacity of +0+.- million tones# has got a huge cement industry. 7ith the go ernment of 'ndia gi ing boost to arious infrastructure pro)ects# housing facilities and road networks# the cement industry in 'ndia is currently growing at an en iable pace. %ore growth in the 'ndian cement industry is e8pected in the coming years. 't is also predicted that the cement production in 'ndia would rise to -.1.+1 %T in F9 +-. The cement industry in 'ndia is dominated by around -: companies# which account for almost 2:; of the total cement production in 'ndia. 'n the present year# the 'ndian cement companies ha e produced ++ %T cement during April-September -::<. 't took the total cement production in financial year -::< to -.+ %T. Products o t!" I#dustr$: 4rdinary Portland ,ement Portland po""olana ,ement Portland blast furnace slag ,ement 4il well ,ement $apid hardening Portland ,ement Sulphate resisting Portland ,ement 7hite ,ement
C"%"#t &roduct'o# (#d )ro*t!: =omestic demand plays a ma)or role in the fast growth of cement industry in 'ndia. 'n fact the domestic demand of cement has surpassed the economic growth rate of 'ndia. The cement consumption is e8pected to rise more than --; by -::<-+: from -::2:>. 'n cement consumption the state of %aharashtra leads a table with +-.+>; consumption# followed by ?ttar Pradesh. 'n terms of cement production Andhra Pradesh leads the list with +/.2-; of production while $a)asthan remains at second position.
PIG IRON INDUSTRY IN INDIA: Pig iron is mainly categori"ed into two ma)or types* a@ Basic grade iron used for steel making b@ Foundry grade iron for making iron castings which find applications in industrial and other sectors. 'n the de eloped countries pig iron is also used as a scrap substitute in the change A mi8 of 6lectric Arc Furnaces B6AFs@. The world production of foundry grade pig iron in +<<1 was about -<.. million tons which increased marginally to -<.1 million tones in +<<2 and then came down to -1.0 million tones in+<<>. The le el of global production of foundry grade pig iron in +<<< has been estimated about -2.0 million tones. P') 'ro# &roduct'o#:
The total production of pig iron was 0.2<1 million tons in -::<-+: as compared to +.0< million tons in +<<+-<-. 6arlier pig iron was produced primarily by the integrated steel plant SA'L and $'CL. 4f late# the share of standalone pig iron units has increased significantly. 'ndia continually posts phenomenal growth records in steel production. 'n +<<-# 'ndia produced +/... million tones of finished carbon steels and +.0< million tones of pig iron. Furthermore# the steel production capacity of the country has increased rapidly since +<<+. 'n -::># 'ndia produced nearly /1.020 million tones of finished steels and /..<. million tones of pig iron. Both primary and secondary producers contributed their share to the phenomenal de elopment# while these increases ha e pushed up the demand for finished steel at a ery stable rate. 'n +<<- the total consumption of finished steel was +/.>/ million tones. 'n -::> the total amount of domestic steel consumption was /..<-0 million tones. 7ith the increased demand in the national market# a huge part of the international market is also ser ed by this industry. Today# 'ndia is in se enth position among all the crude steel producing countries.
PIG IRON PRODUCERS IN INDIA
96A$ -::1-:2 -::2-:> -::>-:< -::<-+:
P$'%A$9 S6,4C=A$9 +2.-.; +2.1-; <./<; +2.1-; >-.22; >-..>; <:.0+; >2..>;
CO+E OVEN INDUSTRY:
'ndia produces about 1; of worldDs coke. 7ith e8pected rise of installation capacity in coming 0 years total coal throughput capacity of 'ndian coke o ens will become about .1 %tEyr. ma)or portion of coke comes from coke o ens installation in steel industry. To impro e o erall performance and !uality of operation suitable technologies should be adopted , absorbed time to time in coke area. To assess the re!uirement of adaptionEabsorption of particular technology is necessary to ha e in depth study on the effect of arious factors affecting the performance of coking industries. Poor !uality and high ash content of 'ndian coking coal# inconsistent linkage of coal to coke making units# increased number of components in the blend and poor coal stock particularly in monsoon season# ha e put the coke industry under the tremendous pressure. The ash le el in coal charge has increased to +2 to +>; in 1:Ds to -- to -/; at present. This has increased ash le el in coke to around -> to .: ;. SPUN PIPES , DUCTILE PIPES INDUSTRY: =' pipes are generally preferred for water supply# sa age and transmission applications. Superiority of =' pipes lies in its ability to pro ide trouble free ser ice against increasing profit load and much longer life compared to other types of pipes. 7ater supply in our country is mainly met through monsoons and needs significant in estment in water infrastructure for conser ation and re use of water resources. Therefore# the go ernment is focusing on creation of urban and rural infrastructure including water resources and sa age management. 'n these efforts# monitory support is being pro ided to the go ernment by international de elopment finance institutions such as the 7orld Bank and the Asian de elopment bank. This has generated a
greater demand for =' pipes that are increasingly being used for water and sa age transportation.
1.- COMPANY PROFILE

L(#co '#dustr'"s Ltd.. is the one of the ele en mini-blast furnace Pig 'ron manufacturing units in our country# and it was the 0th plant under TATA-F4$F Technology. The company was incorporated on Co ember +st +<<+ under ,ompanies Act-+<01# in the name of LAC,4 F6$$4 Ltd.# The company started construction work in August +<<.. The entire construction work was completed a record time of +- months. This was achie ed by team work of Lanco collecti es and the best efforts of the contractors. 7ith these achie ements the company started commercial production from September +<</. The name LAC,4 F6$$4 Ltd.# was changed to LAC,4 'ndustries Ltd.# on Guly 1th# +<</. LOCATION: Lanco 'ndustries Ltd.# is located in between Tirupati and SriFalahasti with an access of about .: Fms from Tirupati and +: Fms from SriFalahasti. Location of Lanco industries ltd in one of the most under de eloped areas of chittoor district in Andhra Pradesh pro ed to be a big boon for the local people in terms of employment
opportunities# direct and indirect# leading to considerable economic growth of the region. The plant is ideally located close to the ast iron ore deposits and in pro8imity to the ,hennai port for import of high grade metallurgical coke. 't is well connected by the road and rail to the re!uired destinations 't has its own fleet of material handling e!uipments and also has its own railway siding facilities. As Lanco 'ndustry emphasi"es more on technology# it re!uires skilled people# as the a ailability of skilled people is ery high in this region.
MISSION OF LANCO INDUSTRIES:
We aim to be world class, committed to customer satisfaction and to encourage the spirit of leadership amongst our dedicated team by creating a healthy environment for continuous growth, profit and prosperity.
VISION OF LANCO INDUSTRIES:
We are in the business of manufacturing pipes for conveying safe drinking water and other fluids for domestic and overseas markets. We will maintain our dominant position in the domestic pipe market and enhance our presence in the overseas market by setting up multi-location units as per business potential. For sustained growth we intended to enture into related business in the area of +. Sustainable hori"ontal and ertical integration pro)ects. -. Turn key pro)ects.
.. 6ngineering and consultancy. /. Build own operate transfer pro)ects and di ersified into new areas of business including infrastructure related pro)ects. 7e will achie e the abo e through* ,ontinuous technology up-gradation and adaption of new technology. 6ffecti e team based working. ,ontinuous training and human resource de elopment. =e eloping ancillary units. ,ost competiti e
St"& /$ St"& Co%&(#$0s Gro*t!: 1111* 1112: 1113: 1114* 2552: 2552: 255-: 255-: 2552: 2553: 2553: 'ncorporation of Lanco 'ndustries Setting up of %ini Blast Furnace with <:#::: TPA ,apacity Setting up a -0: TP= %ini ,ement plant Setting up of LF,L BLanco Falahasthi casting Ltd.@ for manufacture of /:#::: TPA ,asting and .0#2:: TPA =' pipes Strategic alliance with 6lectro Steel ,asting Ltd 'nfusion of $s.--:: lakhs to the e!uity and financial restructuring %erger of LF,L with L'L for synergy ,apacity of Pig iron was increased from <:#::: TPA to +#0:#::: TPA ,apacity of =' pipes was increased to <:#::: TPA ,ommissioning of +#0:#::: TPA ,oke o en plant. Setting up of ,apti e Power plant of +- %7 by using the waste heat reco ered from the ,oke o en plant.
MANUFACTURING UNITS:
The following are the ma)or manufacturing units under the name Lanco 'ndustries Ltd. +. Pig iron -. ,ement .. Spin pipe /. ,oke o en and 0. +- %7 Power plant. 1. P') Iro# D'6's'o#: HBlossoming of a fiery budIJ e8claimed =r.Shankar dayal Sharma# the president of 'ndia while inaugurating the pig iron plant of Lanco industries Ltd. 'n sep +<</. And the bud has in deed blossomedI ,ommissioned a record time of ++ months Lanco industries Ltd# <:#::: tones per annum pig iron plant surpassed its rated capacity )ust after two years of commissioning. Later it transformed the slag A a waste by- product# into producti e slag cement with setting up of cement plan. The pig iron plant capacity was upgraded to +#0:#::: tones per annum in the year -::.. 2. C"%"#t D'6's'o#: 6stablished in the year of +<<1.The slag from pig-iron plant is used for producing <:#::: TPA cement reflecting an approach that transforms the by-product into producti e inputs# in alue added finish product. Kigh !uality port land slag cement in arious grades of uni ersal application# Luality consistent composition# competiti e pricing. -. S&u# P'&" D'6's'o# Or Duct'7" Iro# P'&"s: 6stablished in the year of +<<2 and strategically located in close pro8imity to the mini blast furnace of the pig iron# it has a clear economic mileage o er other casting sites. The molten metal from the blast furnace is directly used as basic raw
materials to produce graded castings# cast iron pipes and ductile iron pipes with a capacity of <:#::: TPA. 2. Co8" O6"# P7(#t: Pre iously Lanco use to import coke from Gapan and ,hina to meet the re!uirements of the mini blast furnace. But then due to the steep rise in the coke prices in the international markets it was ery difficult to maintain the cost of hot metal produced. Thus it was decided to install a coke manufacturing facility to meet the in house coke re!uirements. The company was attracted by the low cost of the non reco ery type of coke o ens with easy compliance with the pollution control norms without any ma)or in estments. Cow the company operates a coke o en plants with a set of 1> : ens based on =as guptha Technology. The plant was commissioned in %ay -::0 and is producing to the rated capacity of + -0#::: tons per year. 3. Po*"r P7(#t 9Pro&os"d 12 M: Po*"r P7(#t;: 't has proposed to set up a power plant of +-%7. Power plant be set up in the e8isting land of coke o en plant. 7aste heat of fuel gas from coke o en will be utili"ed in waste heat reco ery boiler to produce steam. Steam produced in the abo e process will be utili"ed to one TM set for generating power. Power generate from the power plant will be utili"ed in A house consumption and balance power will be fed into APS6B grid. <. L(#co Co#struct'o# Ltd: This group company was established in the year +<<. and has e8ecuted most demanding and difficult pro)ects in the field of ci il construction engineering on schedule essaying repute as world class ,onstruction ,ompany in a ery short time span. The company is mainly e8ecuting prestigious work in the fields of irrigation# pipeline pro)ects highways# housing and industrial construction pro)ect a successfully compared se eral housing comple8es roads# irrigation canals# bridges and industrial comple8es. 4. +(7(!(st' C(st'#)s L'%'t"d:
6stablished in +<<2 and strategically located in alone pro8imity to the mini blast furnace of the pig iron plants it has a clear economics mileage o er other castings sites. The molten metal from the blast cone is directly loosed as basic raw material to produce graded castings. ,ast iron span pipes and iron span pipes and iron spun gradually e8panded further to meet the scaring demand of the products. The ?PS to the pipe plant will be met through +:%7 capture power plant
T"c!#o7o)$ (#d C(&(c't'"s: 7ith the state of the art technology supplied by F4$F of technological ser ices-Bra"il# the plant has a %ini Blast Furnace B%BF@ of -+0 mw working olume producing !uality foundry and SM grade pig iron supplying to ma)or foundries. The mini blast furnace has been set up# conforming to the latest technology in an eco friendly ambience# with the power e!uipment house taken care of by a capti e power plant of capacity -.0 mw. BF gas fired capti e power plant has been installed to utili"e BF gas generated from the furnace. This will reduce the power cost and also sa e the en ironment due to emission of gas to atmosphere. S( "t$ to E%&7o$""s: All the employees who are on the regular rolls of the company are issued Btwo@ pairs of uniform and one pair of shoes. All the employees are e8pected to come to their duties in uniform. The employees working in the plant operations are pro ided with helmets and safety shoes. =epending on the nature of work# it is obligatory on the part of employee to draw the re!uired safety appliances like glo es# goggles# respirators# earplugs etc. from the store to the safety department and use them. Failure to do so shall attract appropriate action. Ot!"r A%"#'t'"s to E%&7o$""s: Lanco 'ndustries management has pro ided other facilities like identity card# canteen# medical center etc.
Id"#t't$ c(rd All the employees are issued with an identity card# which has a photograph# name and employee number duty signed both by the employee and the competent authority. 6 ery employee has to display the identity card while on duty. Their admission into the premises can be denied by the security# if they are found not wearing identity card. 'n case of loss of the identity card they should immediately inform the P 5 K$ department who shall issue another card and deduct $s.0: for the replacement. C(#t""#: The canteen pro ides breakfast# lunch and dinner to all the employees at confessional rates. The timings are staggered to accommodate shift as well as generally shift employeesN proper discipline has to be maintained at the canteen# especially during the rush hours. Tea is supplied free of cost at the work spot during the shift to all the employees.
M"d'c(7 c"#tr" Lualified and e8perienced company medical officers at medical center. Ke organi"es medical fitness e8aminations at the time of selection and periodical medical check ups to all the employees. Ke attends to medical emergency at the medical center and also follows up with the case is re!uired at the city hospitals. Ke periodically organi"es immuni"ation programs to employees and their families. Ke conducts first aid safety classes to the employees. Ke appraises the management on hygiene and en ironmental deficiencies in and around the factory. The medical center is well e!uipped to attend the emergencies and an ambulance an is pro ided. +EY PERSONS IN LANCO INDUSTRIES: CA%6 Shri. %ayank Fe)riwal Shri. M.%aruthi $ao Shri. Mouri Shankar $athi =6S'MCAT'4C %anaging =irector =irector =irector
Shri. L.%adhusudhan $ao Shri. M.Bhaskar Shri. L.Sridhar Shri.P.%.Suresh Shri. 3inod Fumar Agrawal# 'AS =irector =irector =irector Cominee of '=B' Cominee of AP'=,
2.1NEED FOR T=E STUDY
The following are the needs for my study* +. The ability of the firm to meets its current obligations. -. The e8tent to which the firm has used its long-term sol ency by borrowing funds. .. The efficiency with the firm is utili"ing its assets in generating sales re enue. /. The o erall operating efficiency and performance of the firm. 0. The firmDs performance capacity comparison with its competitors
2.2 SCOPE OF T=E STUDY The study has great significance and pro ides benefits to arious parties who directly or indirectly interact with the company. +. 't is beneficial to the top management of the company by pro iding crystal clear picture regarding to the important financial aspects of the Lanco 'ndustries Ltd. -. The study is beneficial to 6mployees and offer moti ation by shoeing how acti ely they are contributing for the companyDs growth. .. The in estors who are interested in in esting in the companyDs shareDs will also get benefit by going through the study and can easily take a decision whether to in est in the companies shares.
2.- O>?ECTIVES OF T=E STUDY
This study is mainly focused to e8amine the o erall financial iability of Lanco 'ndustries Ltd as stated below*
To study the financial position of Lanco 'ndustries Ltd. To study the periodic changes in the financial performance of Lanco 'ndustries Ltd by preparing ,omparati e# ,ommon Si"e and Trend Analysis. To find out the financial strengths and weaknesses of the company. To study the o erall operating efficiency and performance of the company.
The study is conducted to e aluate the returns to the company. To ascertain the efficiency with which the firm is utili"ing its assets in generating sales re enue.
2.2 RESEARC= MET=ODOLOGY
This pro)ect HFinancial Performance Analysis His based on the information collected from the annual reports and balance sheets of the company. HAccording to Fennedy and %ullerJ The analysis and interpretation of financial statements re eal each and e ery aspect regarding the well being financial soundness# operational efficiency and credit worthiness of the company.
PRIMARY DATA:
'nter iewing primary and secondary data ha e been the sources of data. The
study deri es its date mainly from primary sources of information from finance employee of the company and the ma)or source of secondary data was annual report of Lanco 'ndustries Ltd for years -::/-:0#-::0-:1#-::1- -::2 #-::2 A-::> and -::>--::< from of the balance sheet and profit and loss account of the company. SECONDRY DATA: These are sources containing data which ha e been collected and compiled for another purpose. The secondary sources consists of readily a ailable compendia and already compiled statistical statements and reports whose data may be used by researches for their studies# e.g.# census reports# annual reports and financial statements of companies# statistical statements# reports of go ernment departments# annual reports on currency and finance published by the reser e bank of 'ndia.
2.3 LIMITATIONS OF T=E STUDY The information used is primarily from historical reports a ailable to the public and the same doesnDt indicate the current situation of the firm. =etailed analysis could not be carried for the pro)ect work because of limited time span. Since financial matters are sensiti e in nature the same could not be ac!uired easily.
T=EORETICAL >AC+GROUND
%anagement should be particularly interested in knowing financial strengths of the firm to make their best use and to be able to spot out financial weaknesses of the firm to take suitable correcti e actions. The future plans of the firm should be laid down in iew of the firmDs financial strengths and weaknesses. Thus# financial analysis is the starting point for making plans# before using any sophisticated forecasting and planning procedures. ?nderstanding the past is a prere!uisite for anticipating the future.
F'#(#c'(7 P"r or%(#c" (#(7$s's is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. There are arious methods or techni!ues that are used in analy"ing financial
statements# such as comparati e statements# schedule of changes in working capital# common si"e percentages# funds analysis# trend analysis# and ratios analysis. Financial statements are prepared to meet e8ternal reporting obligations and also for decision making purposes. They play a dominant role in setting the framework of managerial decisions. But the information pro ided in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. Kowe er# the information pro ided in the financial statements is of immense use in making decisions through analysis and interpretation of financial statements. TOOLS AND TEC=NI@UES OF FINANCIAL PERFORMANCE ANALYSIS: The following are some tools to analyses the financial Performance of the company* +. $atio Analysis -. ,omparati e Statement Analysis .. ,ommon Si"e Statement Analysis /. Trend Analysis 0. ,hanges in Cet 7orking ,apital Analysis
1. RATIO ANALYSIS $atio analysis is a powerful tool of financial analysis. A r(t'o is defined as Hthe indicated !uotient of two mathematical e8pressionsJ and as Hthe relationship between two or more things.J 'n financial analysis# a ratio is used as a bench mark for e aluating the financial position and performance of a firm.
The relationship between two accounting figures# e8pressed mathematically# is known as a financial ratio Bor simply as a ratio@. $atios help to summaries large !uantities of financial and to make qualitative judgment about the firmDs financial performance. T$&"s o R(t'os Se eral ratios# calculated from the accounting data# can be grouped into arious
classes according to financial acti ity or function to be e aluated. 'n iew of the re!uirements of the arious users of ratios# we may classify them into the following four important categories. '. ''. '''. '3. Le erage ratios Li!uidity $atios Profitability ratios Acti ity $atios
I. L"6"r()" R(t'os A strong short-as well as long-term financial position. To )udge the long-term
financial position of the firm# '#(#c'(7 7"6"r()" or c(&'t(7 structur" r(t'os are calculated. These ratios indicate mi8 of funds pro ided by owners and lenders. As a general rule# there should be an appropriate mi8 of debt and ownersO e!uity in financing the firmDs assets. The process of magnifying the shareholdersO return through the use of debt is called A '#(#c'(7 7"6"r()"B or A '#(#c'(7 )"(r'#)B or Atr(d'#) o# "Cu't$B. The following are some of the li!uidity ratios.
+. =ebt-6!uity $atio -. Proprietary $atio .. =ebt-6!uity $atio BLong-Term@

II.L'Cu'd't$ R(t'os 't is e8tremely for a firm to be able to meet its obligations as they become due. L'Cu'd't$ r(t'os measure the ability of the firm to meet its current obligations Bliabilities@. The failure of a company to meet its obligations due to lack of sufficient li!uidity# will result in a poor credit worthiness# loss of creditorsO confidence# or e en in legal tangles resulting in the closure of the company. A ery high degree of li!uidity is also badN idle assets earn nothing. The firmDs funds will be unnecessarily tied up in current assets. Therefore# it is necessary to strike a proper balance between high li!uidity and lack of li!uidity. The most common ratios# which indicate the e8tent of li!uidity or lack of it# are* +. ,urrent $atio -. Luick $atio .. 4ther ratios include ,ash $atio# 'nter al %easure and Cet 7orking ,apital $atio. III.Pro 't(/'7't$ R(t'os: A company should earn profits to sur i e and grow o er a long period of time. Profits are essential# but it would be wrong to assume that e ery action initiated by management of a company should be aimed at ma8imi"ing profits# irrespecti e of concerns for customers# employees# suppliers or social conse!uences. Profit is the difference between re enues and e8penses o er a period of time Busually one year@. Profit is the ultimate PoutputD of a company# and it will ha e no future if it fails to make sufficient profits. Therefore# the financial manager should continuously e aluate the efficiency of the company in term of profits. The &ro 't(/'7't$ r(t'os are calculated to measure the operating efficiency of the company.
Menerally# two ma)or types of profitability ratios are calculated* Pro 't(/'7't$ '# r"7(t'o# to s(7"s
1. Mross profit ratio
-. 4perating ratio .. 68pense ratio /. 4perating profit ratio 0. Cet Profit $atio
Pro 't(/'7't$ '# r"7(t'o# to '#6"st%"#t.
$eturn on e!uity capital 6arnings per share B6PS@ ratio $eturn on shareholders& in estment or net worth
IV.Act'6't$ R(t'os: Funds of creditors and owners are in ested in arious assets to generate sales and profits. The better the management of assets# the larger the amount of sales. Act'6't$ r(t'os are employed to e aluate the efficiency with which the firm manages and utili"es its assets. These ratios are also called tur#o6"r r(t'os. They are* +. Fi8ed Assets Turn 4 er $atio -. ,urrent Assets Turn 4 er $atio .. Cet 7orking ,apital Turn o er $atio /. =ebtors Turn 4 er $atio 0. 'n entory Turn o er $atio
I.LEVERAGE RATIOS: -.1.1 DE>T- E@UITY RATIO: The =ebt-6!uity measures the long term financial sol ency of a business concern. The ratio is also popularly known as e8ternal internal e!uity ratio. This ratio relates the ownerDs stake in the business is-Q- is that of outsides. Alternati ely it reflects the relati e claims of creditors and share holders against the asset of the unit. This ratio can also be iewed as indicating the relati e proportion of debt amends e!uity in financing the assets of the business unit. =ebte!uity B=6@ ratio is directly computed by di iding total debt by net worth*
Table + 96A$ -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< =ebt -:/.20 -/..+/ .:+.+2 .:+.:. .>+.:1 6!uity 22.>+ 2<.1< <:.>0 +++.01 +-0.-1 $AT'4 -.1. ..:0 ...+ -.2: ..:/
INTERPRETATION:
=6BT-6L?'T9 ratio is fluctuated in each yearN it increases from -.1. to ...+ in the periods between -::/-:2# decreased in the year -::2-:> and again increased in the period -::>-:<. The ratio indicates that the company had low owners contribution. -.1.2 PROPRIETARY RATIO This is a ariant of the debt-to-e!uity ratio. 't is also known as e!uity ratio or net worth to total assets ratio. This ratio relates the shareholder&s funds to total assets. Proprietary E 6!uity ratio indicates the long-term or future sol ency position of the business.
Table Y"(r -::/-::0 -::0-::1 -::1-::2 -::2-::> -::>-::< S!(r" =o7d"rDs Fu#d 22.>+ 2<.1< <:.>0 +++.01 +-0.-1 Tot(7 Ass"ts R(t'o
280.9 329.01 403.87 438.36 537.56
:.-> :.-/ :.-:.-0 :.-.
INTERPRETATION: Proprietary $atio is fluctuated in each year# Kigher the ratio or the share of shareholders in the total capital of the company better is the long-term sol ency position of the company. A low proprietary ratio will include greater risk to the creditors.
-.1.- TOTAL DE>T RATIO Total =ebt $atio is used to analy"e the long term sol ency of the company. Total debt ratio is calculated by di iding the total debt by capital employed.
Table . Y"(r -::/-::0 -::0-::1 -::1-::2 -::2Tot(7 D"/t -:/.20 -/..+/ .:+.+2 .:+.+. C(&'t(7 E%&7o$"d R(t'o
280.9 329.01 403.87 438.36
:.2. :.2/ :.20 :.1<
-::> -::>-::<
.>+.:1
537.56
:.2+
INTERPRETATION: The debt ratio a erage for the study period is :.2/01N it means that the lenders ha e financed 2/.01; of total debt. 't ob iously implies the owners ha e pro ided remaining finance. -.1.2 INTEREST-COVERAGE RATIO The interest co erage ratio or the times-interest-earned is used to test the firmDs debtser icing capacity. The interest co erage ratio is computed by di iding earnings before interest and ta8es B6B'T@ by interest charges
Table / Y"(r -::/--::0 -::0--::1 E>IT 0..2> .:.+< I#t"r"st +:.0 +..++ R(t'o 0.+-..:
-::1--::2 -::2--::> -::>--::< 0..00 >-./0 >0.+> -:..+ -2.-2 /:.0/ -.1/ ..:-/ -.+:
INTERPRETATION: 'nterest co erage ratio indicates the number of times the interest charges are co ered by funds a ailable for their payment. 'n the study period the companyDs interest co erage ratio is fluctuating stage. 'n -::/--::0 it shows a high ratio B0.+-@# a high ratio is desirable to the company. II.LI@UIDITY RATIOS: -.2.1 CURRENT RATIO: The current ratio is a measure of the firmDs s!ort-t"r% so76"#c$. 't indicates the a ailability of current assets in rupees for e ery one rupee of current liability. A ratio of greater than one means that the firm has more current assets than current claims against them.
Table 0
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< CURRENT ASSETS 161.36 183.22 261.97 266.16 359.74 CURRENT LIABILITIES 96.25 95.56 107.26 100.3 108.83 RATIO 1.68 1.92 2.44 2.65 3.31
INTERPRETATION: The firmDs current ratio refers that the companyDs short-term sol ency. The standard current ratio is -*+N the current ratio is not e!ual to standard ratio in the entire study period. 'n -::/-:0 and -::0-:1 the ratio is too low then the standard ratio -*+. But in -::1-:2# -::2-:> and -::>-:< the ratio is higher than the standard ratio. -.2.2 @UIC+ RATIO @u'c8 r(t'o. also called acid-test ratio# establishes a relationship between !uick# or li!uid# assets and current liabilities. An asset is li!uid if it can be con erted into cash immediately or reasonable soon without a loss of alue. ,ash is the most li!uid asset and other assets that are considered to be relati ely li!uid. 'n entories are considered to be less li!uid. The !uick ratio is found out by di iding !uick assets by current liabilities.
Table 1
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< QUICK ASSETS 90.61 CURRENT LIABILITIES 96.25 95.56 107.26 100.3 108.83 RATIO 0.94 0.96 1.45 1.45 1.98
91.28 155.6 145.23 215.38
INTERPRETATION: The higher the Luick ratio indicates the ability of a firm is li!uid and has the ability to meet its current liabilities in time. The companyDs !uick ratio is almost e!ual to standard ratio +*+ in the years# -::1-:2# -::2-:> and -::>-:<. But in -::0-:1 and -::/-:0 it is not e!ual to ideal ratio.
-.2.- CAS= RATIO: ,ash ratio establishes relation between cash and current assets. 't indicates the proportion of cash in current assets. 't is calculated by di iding cash by current assets.
Table 2
YEAR CASH CURRENT LIABILITIES CASH RATIO
-::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< 2.47 3.51 26.5 4.2 34.64 96.25 95.56 107.26 100.3 108.83 0.03 0.04 0.25 0.04 0.32
INTERPRETATION: Kigh cash ratio indicates the idle cash reser es in the company# but low cash ratio is also not fa orable to the company. By studying the abo e data the company has insufficient cash reser es with it. 'n the study period the companyDs a erage cash ratio is :.+.1 only.
-.2.2 NET :OR+ING CAPITAL RATIO: The difference between the ,urrent Assets and ,urrent Liabilities e8cluding shortterm Bank borrowings are called Cet 7orking ,apital BC7,@ or Cet ,urrent Assets BC,A@. C7, is used as a measure of a firm&s li!uidity. The measure of li!uidity is a relationship# rather than the difference between current Assets and ,urrent Liabilities. C7,# howe er# measures the firm&s potential reser oir of funds. 't can be related to Cet assets BCA@ or ,apital 6mployed B,6@.
NWC = Current Assets - Current Liabilities
NA = Net Fixed Assets (NFA) + NWC (or) NCA Table >
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< NET WORKING CAPITAL 2/.1+ >2.10 +0/.2+ +10.>1 -0:.<+ NET ASSETS 280.9 329.01 403.87 438.36 537.56 NWC RATIO 0.27 0.27 0.38 0.38 0.47
I#t"r&r"t(t'o#: The net working capital ratio of the company was started with :.-2 in the first year and -::/- :0. 't was increased to :..> by -::1-:2 and slightly increased to :./2 by -::>- :<. The a erage C7, $atio of the company is :..0/ for the abo e study period. III.PROFITA>ILITY RATIOS: Pro 't(/'7't$ R(t'os r"7(t"d to S(7"s -.-.1 NET PROFIT MARGIN RATIO: Cet profit is obtained when operating e8penses# interest and ta8es are subtracted from the gross profit. The ratio establishes a relationship between net profit and sales and indicates managementDs efficiency in manufacturing# administrating and selling the products. This ratio is the o erall measure of the firmDs ability to turn each rupee sales into net profit. 'f the net margin is inade!uate# the firm will fail to achie e satisfactory return on ownerDs e!uity. The #"t &ro 't %(r)'# ratio is measured by di iding profit after ta8 by sales*
Table <
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< NET PROFIT -:.</ /.+0 +0.>+ -0.<+>..0 SALES ->1.1.:-.<1 .1<./ /1..11 1//.2RATIO 7.31 1.37 4.28 5.60 2.854
INTERPRETATION: The net profit ratio was 2.-> in the year -::/-:0 and it highly decreased to +..1 in the year -::0-:1 and it slowly increased in the years -::1-:2 and -::2-:># again it decreased to -.>. in the period -::>-:<. -.-.2 GROSS PROFIT MARGIN RATIO: The ratio establishes a relationship between gross profits in to sales. The first profitability ratio in relation to sales is the )ross &ro 't %(r)'# Bor simply gross margin ratio@. 't is calculated by di iding the gross profit by sales
Table +:
YEAR GROSS PROFIT SALES RATIO
-::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< >2.+> 0-.20 >/.1< +/+./+ +0:..->1.1.:-.<1 .1<./ /1..11 1//.230.42 17.41 22.93 30.50 23.31
INTERPRETATION: The higher gross profit ratio is indicated better performance and lower gross profit ratio is shown unfa orable. By seeing the graph it is clear that the companyDs performance is high in the year -::/-:0. But in the year -::0-:1 the gross profit ratio is down to +2./+ and again it was increased year by year.
-.-.- OPERATING PROFIT 4perating profit is the profit which is earned by the companyDs core acti ities. This ratio e8presses the relationship between operating profit and sales. 't is worked out by di iding operating profit by net sales. 7ith the help of this ratio# one can )udge the managerial efficiency which may not be reflected in the net profit ratio.
Table ++
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< OPERATING PROFIT 0..-/ -<.-2 0+.-. 22.21 >>.11 SALES ->1.1.:-.<1 .1<./ /1..11 1//.2RATIO 18.58 9.66 13.87 16.77 13.75
INTERPRETATION: The higher 4perating profit ratio is indicated better performance and lower 4perating profit ratio is shown unfa orable. By seeing the graph it is clear that the companyDs performance is high in the year -::/-:0. But in the year -::0-:1 the 4perating profit ratio is down to +2./+ and again it was increased year by year.
Pro 't(/'7't$ R(t'os r"7(t"d to I#6"st%"#ts:

-.-.2 RETURN ON CAPITAL EMPLOYED $eturn on capital employed establishes the relationship between the profit and the capital employed. 't indicates the percentage of return on capital employed in the business and it can be used to show the o erall profitability and efficiency of the business. R"tur# o# c(&'t(7 "%&7o$"d r(t'o is considered to be the best measure of profitability in order to assess the o erall performance of the business
Table +YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< PROFIT AFTER TAX -:.</ /.+0 +0.>+ -0.<+>..0 CAPITAL EMPLOYED 280.9 329.01 403.87 438.36 537.56 RATI O 7.45 1.26 3.91 5.91 3.41
INTERPRETATION:
Kigher the return on capital employed# the more efficient the firm is in using its funds. The companyDs return on capital employed is lowN in -::/--::0 the ratio was +:.-.; but in ne8t yearDs the company could not maintain the good returns on capital employed.
-.-.3 RETURN ON NET :ORT= 9OR; E@UITY: This is turn# measures the profitability of the e!uity funds in ested in the company and shows the shareholders# how efficiently their in estments ha e been utili"ed. ,ommon or ordinary shareholders are entitled the residual profits. A return on shareholderDs e!uity is calculated to see the profitability of ownerDs in estment.
Table +.
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< PROFIT AFTER TAX -:.</ /.+0 +0.>+ -0.<+>..0 NET WORTH 22.>+ 2<.1< <:.>0 +++.01 +-0.-1 RATIO 26.91 5.20 17.40 23.23 14.65
INTERPRETATION: This ratio is indicating that the return on e!uity is fluctuating year by year. The ratio is -1.<+; in -::/-:0N it decreased to 0.-+; in -::0-:1 and increased year by year. 't was -..-.; in -::2-:> and again decreased to +/.1/; in -::>-:<.
-.-.< RETURN ON INVESTMENT ,alculate return on in estment by di iding earnings before interest depreciation and ta8 B6B'=T@ by Cet assets or Total assets.
Table +/
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< EBIDT 0..2> .:.+< 0..00 >-./0 >0.+> NET ASSETS 280.9 329.01 403.87 438.36 537.56 RATIO 19.15 9.18 13.26 18.81 15.85
INTERPRETATION: Kigher return on 'n estment implies efficient use of assets# the companyDs return on in estment is in fluctuating stage. 'n -::/--::0 it shows a high return +<.:.;
III. ACTIVITY RATIOS -.2.1 CURRENT ASSETS TURN OVER RATIO The firm may wish to know its efficiency of utili"ing fi8ed assets and current assets separately.
Table +0
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< SALES ->1.1.:-.<1 .1<./ /1..11 1//.2CURRENT ASSETS 161.36 183.22 261.97 266.16 359.74 RATIO 1.78 1.65 1.41 1.74 1.79
INTERPRETATION This ratio indicates effecti e utili"ation of current assets. For one $upee of sale the company needs a erage $s.:.0: in estment in current assets.
-.2.2 FIEED ASSETS TURNOVER RATIO The firm may wish to know its efficiency of utili"ing fi8ed assets and current assets separately.
Table +1
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< SALES ->1.1.:-.<1 .1<./ /1..11 1//.2FIXED ASSETS +/1.:/ +>0.-1 -/+.0> -1..>> ->-./ RATIO 1.96261298 1.63532333 1.52910009 1.75708655 2.28300283
INTERPRETATION: This ratio indicates effecti e utili"ation of fi8ed assets. For one $upee of sale the company needs a erage $s.:.0: in estment in fi8ed assets. -.2.- TOTAL ASSETS TURNOVER RATIO Assets are used to generate sales. A firm should manage itDs assets to ma8imi"e sales. The relationship between sales and assets is called assets turno er ratio. This ratio ensures the total assets of the company# efficiently used or not and this ratio shows the firmDs ability in generating sales from all financial resources committed to total asset.
Table +2
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< SALES ->1.1.:-.<1 .1<./ /1..11 1//.2TOTAL ASSETS 280.9 329.01 403.87 438.36 537.56 RATIO 1.02 0.92 0.91 1.06 1.2
INTERPRETATION: The high turno er ratio tells the efficiency of the management and utili"ation of assets. The low turno er ratios are indicati e of under utili"ation of a ailable resources and presence of idle capacity. The total assets turno er ratio is gradually increasing from -::0-:1 to -::>-:<. 't shows the firm ma8imum utili"ation of its assets.
-. 2.2 NET :OR+ING CAPITAL TURNOVER RATIO A firm may also like to relate net current assets Bor net working capital gap@ to sales. 't may thus computer net working capital turno er by di iding sales by net working capital is
Table +>
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< SALES ->1.1.:-.<1 .1<./ /1..11 1//.2NET WORKING CAPITAL 2/.1+ >2.10 +0/.2+ +10.>1 -0:.<+ RATIO 3.84 3.46 2.39 2.8 2.57
'CT6$P$6TAT'4C The a erage working capital ratio is ...-/. Thus it is indicated that for one $upee of sales# the company needs :....-/ of net current assets. The remaining is met from the long term funds and bank borrowings. 'n the study period the working capital turno er ratio was continuously fluctuated. -.2.3 DE>TORS TURN OVER RATIO =ebtorDs turno er ratio or accounts recei able turno er ratio indicates the elocity of debt collection of a firm. 'n simple words it indicates the number of times a erage debtors Brecei able@ are turned o er during a year.
Table +< YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< N"t Cr"d't S(7"s ->1.1.:-.<1 .1<..2 /1..11 1//.2A6"r()" D"/tors 2+.<> 12.:2 21.1> >>.+/ ++<.11 RATIO ..<> /.0/.>0.-1 0..<
INTERPRETATION The higher the alue of debtorsD turno er the more efficient is the management of debtors or more li!uid the debtors are. Similarly# low debtors turno er ratio implies inefficient management of debtors or less li!uid debtors. =ebtors turno er ratio shows a higher alue# in -::/--::0 it is ..<> and it continuously increases# in -::>--::< it recorded as 0..<. -.2.< INVENTORY TURN OVER RATIO: Stoc8 tur#o6"r r(t'o , I#6"#tor$ tur#o6"r r(t'o indicates the number of time the stock has been turned o er during the period and e aluates the efficiency with which a firm is able to manage its in entory.
Table -:
YEAR -::/-::0 -::0-::1 -::1-::2 -::2-::> -::>-::< Cost o Goods So7d A6"r()" Stoc8 RATIO +<<.12 -/2./0 -2>.1.0/.:0 0:/./ 2:.20 <+.</ +:1..2 +-:.<. +//..1 -.>-.1< -.1-.<. ../<
INFERENCE: ?sually a high in entory turno erEstock elocity indicates efficient management of in entory because more fre!uently the stocks are soldN the lesser amount of money is re!uired to finance the in entory. A low in entory turno er ratio indicates an inefficient management of in entory. The ratio is increasing e ery year# in -::/--::0 it is -.>- and in -::>--::< it is recorded as ../<. -.2.4 EARNINGS PER S=ARE 9EPS; The profitability of the shareholdersO in estment can also be measured in many other ways. 4ne such measure is to calculate the earnings per share. The "(r#'#)s &"r s!(r" B6PS@ is calculated by di iding the profit after ta8es by the total number of ordinary shares outstanding.
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<
PAT -:.</ /.+0 +0.>+ -0.<+>..0
NO. OF EQUITY SHARE .<.21/ .<.21/ .<.21/ .<.21/ .<.21/
RATIO 0.-2 +.:/ ..<> 1.0/.1-
INTERPRETATION: 6PS simply shows the profitability of the company on a per-share basis. 't is a widely used ratio in comparing the financial performance of the other companies in the industry.
-.2. COMPARATIVE STATEMENT: ,omparati e statements are financial statements that co er a different time frame# but are formatted in a manner that makes comparing line items from one period to those of a different period an easy process. This !uality means that the comparati e statement is a financial statement that lends itself well to the process of comparati e
analysis. %any companies make use of standardi"ed formats in accounting functions that make the generation of a comparati e statement !uick and easy. I%&ort(#c" (#d Us"s The benefits of a comparati e statement are aried for a corporation. Because of the uniform format of the statement# it is a simple process to compare the gross sales of a gi en product or all products of the company with the gross sales generated in a pre ious month# !uarter# or year. ,omparing generated re enue from one period to a different period can add another dimension to analy"ing the effecti eness of the sales effort# as the process makes it possible to identify trends such as a drop in re enue in spite of an increase in units sold. Along with being an e8cellent way to broaden the understanding of the success of the sales effort# a comparati e statement can also help address changes in production costs F"(tur"s o Co%&(r(t'6" St(t"%"#ts: +@ A comparati e statement adds meaning to the financial data. -@ 't is used to effecti ely measure the conduct of the business acti ities. .@ ,omparati e statement analysis is used for intra firm analysis and inters firm analysis. /@ A comparati e statement analysis indicates change in amount as well as change in percentage. 0@ A positi e change in amount and percentage indicates an increase and a negati e change in amount and percentage indicates a decrease.
-.2.1COMPARATIVE >ALANCE S=EET For t!" $"(rs 2553-255< 9Rs. I# Cror"s;
Table --
Mar '05 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loa s $ secured Loa s ota! "e#t "effered a$ !%a#%!%t& ota! '%a#%!%t%es ())!%cat%on Of Funds %ross &loc' Less( )ccu*. +epreciatio Net *!oc+ Capital ,or' i -ro.ress / vest*e ts (dd, -urrent (ssets / ve tories Su dry +e0tors Cash a d &a ' &ala ce Loa s a d )dva ces ota! -(. 'oans / (d0ances 'ess, -urrent !%#%!%t%es Curre t Lia0ilities -rovisio s ota! -' / 1ro0%s%ons Net -urrent (ssets 1iscella eous E2pe ses ota! (ssets 39.76 39.76 38.05 77.81 !08.86 95.89 204.75 4.24 286.8 "00."! 5#.!7 146.04 60.!5 5.9 70.75 7!.98 ".#7 !6.!6 161.36 80.9! 5.86 96.25 74.61 0.! 280.9
Mar '06 39.76 39.76 39.93 79.69 9".#5 !50.69 243.14 6.18 329.01 "50.36 65.! 185.26 56.0# 0 9!.9# 67.07 3.5! "0.7 183.22 9".0" 3.5# 95.56 87.65 0.06 329.01
Increase Decrease 0 0 1.88 1.88 -16.41 54.8 38.39 1.94
! C"an#e 0 0 4.94 2.42 -15.07 57.15 18.75 45.75
50.15 10.93 39.22 -4.11 -5.9 21.19 -4.91 1.04 4.54 21.86 11.11 -2.32 -0.69 13.04 -0.04 48.11
25.05 20.18 26.86 -6.83
29.95 -6.82 42.11 28.09 13.55 13.73 -0.72 17.48 17.13
COMPARATIVE INCOME STATEMENT
For t!" $"(r 2553-255< 9Rs. I# Cror"s;
Mar '05 2nco3e Sales Tur over E2cise +uty Net Sa!es 3ther / co*e Stoc' )d4ust*e ts ota! 2nco3e 4$)end%ture Ra6 1aterials -o6er 7 8uel Cost E*ployee Cost 3ther 1a u9acturi . E2pe ses Selli . a d )d*i E2pe ses 1iscella eous E2pe ses ota! 4$)enses 3perati . -ro9it 1*"2 / terest 1*" +epreciatio 3ther ,ritte 399 1rof%t *efore a$ -&T :-ost E2tra5ord /te*s; Ta2 5e)orted Net 1rof%t Total <alue )dditio Equity +ivide d Corporate +ivide d Ta2 3!5.87 "9."5 286.62 0.5# 58.98 278.18 !86.89 !86.89 9.67 0.59 !".3! ".39 224.4 53."# 53.78 !0.5 43.28 8.53 0.0# 34.71 3#.7! !3.8 20.94 37.5 3.98 0.5"
Mar '06 335.9 3".9# 302.96 0.9" 7.#! 311.29 "33.68 !6.53 !".76 0.56 !#.77 ".8 281.1 "9."7 30.19 !3.!! 17.08 !0.9# 0.0# 6.1 6.! !.9# 4.15 #7.#" !.99 0."8
Increase Decrease -20.03 3.69 16.34 0.38 16.39 33.11 46.79
! C"an#e -6.34 12.62 5.7 70.37 -182.52 11.9 25.04 0 0 -5.08 19.98 17.15 25.27 -45.02 0 24.86 -60.54 28.25 0 -82.43 0 -85.94 -80.18 26.45 -50 -46.15
-0.03 2.46 0.41 56.7 -23.97 2.61 -26.2 2.41 0 -28.61 -11.86 -16.79 9.92 -1.99 -0.24
INTERPRETATIONS:
For the year of B-::0 5 -::1@
COMPARATIVE >ALANCE S=EET: There are no changes in share capital. The reser e and surpluses has increased /.</; in -::0. The debt funds ha e increased +>.20; on -::0 in -::1. Cet Fi8ed assets has increased -1.>1; The cash and bank balances were increased /-.++; in -::1. The current assets ha e increased +..00; in -::0. The working capital has increased +2./>; INCOME STATEMENT: The net sales were increased 0.2; in -::1. The PB=T has decreased 1:.0/;. The operating profit has decreased PAT has decreased in -::1.
-.2.2 COMPARATIVE >ALANCE S=EET
For t!" $"(rs 255<-2554 9Rs. I# Cror"s; Table -.
Mar '06 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loa s $ secured Loa s ota! "e#t "effered a$ !%a#%!%t& ota! '%a#%!%t%es ())!%cat%on Of Funds %ross &loc' Less( )ccu*. +epreciatio Net *!oc+ Capital ,or' i -ro.ress / vest*e ts (dd, -urrent (ssets / ve tories Su dry +e0tors Cash a d &a ' &ala ce Loa s a d )dva ces ota! -(. 'oans / (d0ances 'ess, -urrent !%#%!%t%es Curre t Lia0ilities -rovisio s ota! -' / 1ro0%s%ons Net -urrent (ssets 1iscella eous E2pe ses ota! (ssets 39.76 39.76 39.93 79.69 9".#5 !50.69 243.14 6.18 329.01 "50.36 65.! 185.26 56.0# 0 9!.9# 67.07 3.5! "0.7 183.22 9".0" 3.5# 95.56 87.65 0.06 329.01
Increase Mar '07 Decrease

39.76 39.76 5!.09 90.85 !63.83 !37.3# 301.17 11.85 403.87 3!8."# 76.66 241.58 7.5# 0 !06.37 76.68 "6.5 5".#" 261.97 !0!.88 5.38 107.26 154.71 0.0# 403.87
! C"an#e 0 0 11.16 11.16 71.38 -13.35 58.03 5.67 0 0 27.95 14 77.21 -8.86 23.87 91.75
67.88 11.56 56.32 -48.5 0 14.43 9.61 22.99 31.72 78.75 9.86 1.84 11.7 67.06 -0.02 74.86
27.11 17.76 30.4 -86.55
15.7 14.33 654.99 153.24 42.98 10.72 12.24 76.51 22.75
COMPARATIVE INCOME STATEMENT For t!" $"(r 255<-2554 9Rs. I# Cror"s;

Mar '06 2nco3e Sales Tur over E2cise +uty Net Sa!es 3ther / co*e Stoc' )d4ust*e ts ota! 2nco3e 4$)end%ture Ra6 1aterials -o6er 7 8uel Cost E*ployee Cost 3ther 1a u9acturi . E2pe ses Selli . a d )d*i E2pe ses 1iscella eous E2pe ses ota! 4$)enses 3perati . -ro9it 1*"2 / terest 1*" +epreciatio 3ther ,ritte 399 1rof%t *efore a$ -&T :-ost E2tra5ord /te*s; Ta2 5e)orted Net 1rof%t Total <alue )dditio Equity +ivide d Corporate +ivide d Ta2 335.9 3".9# 302.96 0.9" 7.#! 311.29 "33.68 !6.53 !".76 0.56 !#.77 ".8 281.1 "9."7 30.19 !3.!! 17.08 !0.9# 0.0# 6.1 6.! !.9# 4.15 #7.#" !.99 0."8

#!0.#5 #!.08 369.37 ".3" #.7! 376.4 "68.03 !7.03 !#.83 #.99 !#.3" 3.65 322.85 5!."3 53.55 "0.3! 33.24 !!.57 0.03 21.64 "!.6# 5.8# 15.81 5#.8" 3.98 0.68
! C"an#e 74.55 8.14 66.41 1.4 -2.7 65.11 34.35 0.5 2.07 4.43 -0.45 0.85 41.75 21.96 23.36 7.2 16.16 0.63 -0.01 15.54 15.54 3.9 11.66 7.4 1.99 0.4 22.19 24.71 21.92 152.17 -36.44 20.92 14.7 3.02 16.22 791.07 -3.05 30.36 14.85 75.03 77.38 54.92 94.61 5.76 -25 254.75 254.75 201.03 280.96 15.61 100 142.86
INTERPRETATIONS: For the year of B-::1 5 -::2@ >ALANCE S=EET: The reser es and surpluses had increased in -::2 by -2.<0;. The debt funds ha e increased around -..>2; on total debt funds on the debt funds of -::1. The fi8ed assets ha e increased .:./; on the fi8ed assets of -::1. The debtors ha e increased /..; in the year -::2 when compared to the debtors of the -::1. The cash and bank balances ha e increase 10/.<<; of the cash and bank balance of the -::1. The current assets ha e increased /-.<>; on the current assets of the -::1. The current liabilities ha e increased +-.-/; on the current liabilities of the pre ious year. The net working capital was increased 21.0+; in the year -::1. INCOME STATEMENT: The net sales were decreased -+.<-; in -::2. The PB='T has decreased 22..>; The operating profit has increased 20.:.;. 6B'T has increased </.1+; on PB'T of -::2. PAT has decreased ->:.<1; in -::2.
-.2.- COMPARATIVE >ALANCE S=EET For t!" $"(rs 2554-255F 9Rs. I# Cror"s; Table -/
Mar '07 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loa s $ secured Loa s ota! "e#t "effered a$ !%a#%!%t& ota! '%a#%!%t%es ())!%cat%on Of Funds %ross &loc' Less( )ccu*. +epreciatio Net *!oc+ Capital ,or' i -ro.ress / vest*e ts (dd, -urrent (ssets / ve tories Su dry +e0tors Cash a d &a ' &ala ce Loa s a d )dva ces ota! -(. 'oans / (d0ances 'ess, -urrent !%#%!%t%es Curre t Lia0ilities -rovisio s ota! -' / 1ro0%s%ons Net -urrent (ssets 1iscella eous E2pe ses ota! (ssets 39.76 39.76 5!.09 90.85 !63.83 !37.3# 301.17 11.85 403.87 3!8."# 76.66 241.58 7.5# 0 !06.37 76.68 "6.5 5".#" 261.97 !0!.88 5.38 107.26 154.71 0.0# 403.87
Mar '08 39.76 39.76 7!.8 111.56 !78.3" !"".7! 301.03 25.77 438.36 355.!6 9!."8 263.88 8.6" 0 !"0.93 88.!# #." 5".89 266.16 93.!9 7.!! 100.3 165.86 0 438.36
Increase Decrease 0 0 20.71 20.71 14.49 -14.63 -0.14 13.92
! C"an#e 0 0 40.54 22.8 8.84 -10.65 -0.05 117.47
36.92 14.62 22.3 1.08 0 14.56 11.46 -22.3 0.47 4.19 -8.69 1.73 -6.96 11.15 -0.04 34.49
11.6 19.07 9.23 14.32
13.69 14.95 -84.15 0.9 1.6 -8.53 -6.49 7.21 8.54
COMPARATIVE INCOME STATEMENT For t!" $"(r 2554-255F 9Rs. I# Cror"s;
Mar '07 2nco3e Sales Tur over E2cise +uty Net Sa!es 3ther / co*e Stoc' )d4ust*e ts ota! 2nco3e 4$)end%ture Ra6 1aterials -o6er 7 8uel Cost E*ployee Cost 3ther 1a u9acturi . E2pe ses Selli . a d )d*i E2pe ses 1iscella eous E2pe ses ota! 4$)enses 3perati . -ro9it 1*"2 / terest 1*" +epreciatio 3ther ,ritte 399 1rof%t *efore a$ -&T :-ost E2tra5ord /te*s; Ta2 5e)orted Net 1rof%t Total <alue )dditio Equity +ivide d Corporate +ivide d Ta2 #!0.#5 #!.08 369.37 ".3" #.7! 376.4 "68.03 !7.03 !#.83 #.99 !#.3" 3.65 322.85 5!."3 53.55 "0.3! 33.24 !!.57 0.03 21.64 "!.6# 5.8# 15.81 5#.8" 3.98 0.68
Mar '08 #9#.7" 3!.06 463.66 #.69 0.!# 468.49 33".69 !0.## !8.63 6."7 !#.!9 3.8" 386.04 77.76 82.45 "7."7 55.18 !5.!3 0.0# 40.01 39.#6 !#.! 25.92 53.35 3.98 0.68
Increase Decrease 84.27 -10.02 94.29 2.37 -4.57 92.09 64.66 -6.59 3.8 1.28 -0.13 0.17 63.19 26.53 28.9 6.96 21.94 3.56 0.01 18.37 17.82 8.26 10.11 -1.47 0 0
! C"an#e 20.53 -24.39 25.53 102.16 -97.03 24.47 24.12 -38.7 25.62 25.65 -0.91 4.66 19.57 51.79 53.97 34.27 66 30.77 33.33 84.89 82.35 141.44 63.95 -2.68 0 0
INTERPRETATIONS: for the year of B-::2 5 -::>@ >ALANCE S=EET: There are no changes in share capital. The $eser es and surplus has increased /:.0/; compare to pre ious year. The fi8ed assets ha e increased <.-.; compare to :2 A :>. The Sunday debtors increased +/.10; in the year :2 A :>. The cash 5 bank balance has decreased >/.+0; 5 on the year -::2 A -::>. ,urrent liabilities ha e decreased to 1./<; on the year -::2 A -::>.
INCOME STATEMENT: The net sales were increased -0./.; compared to -::2 A -::>. PB'=T has increased by 0..02; in -::>. Profit before ta8 has increased to >-..0; compared to pre ious year. PAT has increased to 1..<0; compared to :2 A :>.
-.2.2 COMPARATIVE >ALANCE S=EET For t!" $"(rs 255F-2551 9Rs. I# Cror"s; Table -0
Mar '08 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loa s $ secured Loa s ota! "e#t "effered a$ !%a#%!%t& ota! '%a#%!%t%es ())!%cat%on Of Funds %ross &loc' Less( )ccu*. +epreciatio Net *!oc+ Capital ,or' i -ro.ress / vest*e ts (dd, -urrent (ssets / ve tories Su dry +e0tors Cash a d &a ' &ala ce Loa s a d )dva ces ota! -(. 'oans / (d0ances 'ess, -urrent !%#%!%t%es Curre t Lia0ilities -rovisio s ota! -' / 1ro0%s%ons Net -urrent (ssets 1iscella eous E2pe ses ota! (ssets 39.76 39.76 7!.8 111.56 !78.3" !"".7! 301.03 25.77 438.36 355.!6 9!."8 263.88 8.6" 0 !"0.93 88.!# #." 5".89 266.16 93.!9 7.!! 100.3 165.86 0 438.36
Mar '09 39.76 39.76 85.5 125.26 ""6.#6 !5#.6 381.06 31.24 537.56 389.75 !07.35 282.4 #."5 0 !##.36 !!9.66 3#.6# 6!.08 359.74 !0!.08 7.75 108.83 250.91 0 537.56
Increase Decrease 0 0 13.7 13.7 48.14 31.89 80.03 5.47
! C"an#e 0 0 19.08 12.28 27 25.99 26.59 21.23
34.59 16.07 18.52 -4.37 0 23.43 31.52 30.44 8.19 93.58 7.89 0.64 8.53 85.05 0 99.2
9.74 17.61 7.02 -50.7
19.37 35.76 724.76 15.48 35.16 8.47 8.5 51.28 22.63
COMPARATIVE INCOME STATEMENT For t!" $"(r 255F-2551 9Rs. I# Cror"s;

Mar '08 2nco3e Sales Tur over E2cise +uty Net Sa!es 3ther / co*e Stoc' )d4ust*e ts ota! 2nco3e 4$)end%ture Ra6 1aterials -o6er 7 8uel Cost E*ployee Cost 3ther 1a u9acturi . E2pe ses Selli . a d )d*i E2pe ses 1iscella eous E2pe ses ota! 4$)enses 3perati . -ro9it 1*"2 / terest 1*" +epreciatio 3ther ,ritte 399 1rof%t *efore a$ -&T :-ost E2tra5ord /te*s; Ta2 5e)orted Net 1rof%t Total <alue )dditio -re9ere ce +ivide d Equity +ivide d Corporate +ivide d Ta2 #9#.7" 3!.06 463.66 #.69 0.!# 468.49 33".69 !0.## !8.63 6."7 !#.!9 3.8" 386.04 77.76 82.45 "7."7 55.18 !5.!3 0.0# 40.01 39.#6 !#.! 25.92 53.35 0 3.98 0.68

680.#7 35.75 644.72 ".! 5".#7 644.35 397.76 !0.35 "!.#3 5.56 !7.3" #.53 553.59 88.66 85.18 #0.5# 44.64 !6.#" 0 28.22 "8."" 9.88 18.35 59.!8 0 3.98 0.68
! C"an#e 185.75 4.69 181.06 -2.59 -2.61 175.86 65.07 -0.09 2.8 -0.71 3.13 0.71 167.55 10.9 2.73 13.27 -10.54 1.29 -0.04 -11.79 -11.24 -4.22 -7.57 5.83 0 0 0 37.55 15.1 39.05 -55.22 -1864.29 37.54 19.56 -0.86 15.03 -11.32 22.06 18.59 43.4 14.02 3.31 48.66 -19.1 8.53 -100 -29.47 -28.48 -29.93 -29.21 10.93 0 0
INTERPRETATIONS: or t!" $"(r o 9255F G 2551) >ALANCE S=EET: There are no changes in share capital.
The $eser es and surplus has increased 19.08; compare to pre ious year.
The fi8ed assets ha e increased 2.:-; compare to :> A :<. The Sunday debtors increased .0.21; in the year :> A :<. The cash 5 bank balance has increased by 2-/.21; on the year -::> A -::<. ,urrent liabilities ha e increased to >.0; on the year -::> A -::<.
INCOME STATEMENT: The net sales were increased .0.:<; compared to -::> A -::<. Profit before ta8 has decreased to -<./2; compared to pre ious year. PAT has decreased to -<.-+; compared to :> A :<.
-.-. COMMON SIHE FINANCIAL STATEMENTS ,ommon si"e ratios are used to compare financial statements of different-si"e companies or of the same company o er different periods. By e8pressing the items in proportion to some si"e-related measure# standardi"ed financial statements can be created# re ealing trends and pro iding insight into how the different companies compare. The common si"e ratio for each line on the financial statement is calculated as follows*
F"(tur"s o Co%%o# S'I" St(t"%"#t +. A common si"e statement analysis indicates the relation of each component to the whole. -. 'n case of a ,ommon Si"e 'ncome statement analysis Cet Sales is taken as +::; and in case of ,ommon Si"e Balance Sheet analysis total funds a ailableEtotal capital employed is considered as +::;. .. 't is used for ertical financial analysis and comparison of two business enterprises or two years financial data. L'%'t(t'o#s As with financial statements in general# the interpretation of common si"e statements is sub)ect to many of the limitations in the accounting data used to construct them. For e8ample* +. =ifferent accounting policies may be used by different firms or within the same firm at different points in time. Ad)ustments should be made for such differences. -. =ifferent firms may use different accounting calendars# so the accounting periods may not be directly comparable.
-.-.1 COMMON SIHE >ALANCE S=EET For t!" $"(rs 2553 G 255< 9Rs. I# Cror"s; Table -1
Mar '05 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loa s $ secured Loa s ota! "e#t "effered a$ !%a#%!%t& ota! '%a#%!%t%es ())!%cat%on Of Funds %ross &loc' Less( )ccu*. +epreciatio Net *!oc+ Capital ,or' i -ro.ress / vest*e ts (dd, -urrent (ssets / ve tories Su dry +e0tors Cash a d &a ' &ala ce Loa s a d )dva ces ota! -(. 'oans / (d0ances 'ess, -urrent !%#%!%t%es Curre t Lia0ilities -rovisio s ota! -' / 1ro0%s%ons Net -urrent (ssets 1iscella eous E2pe ses ota! (ssets 39.76 39.76 38.05 77.81 !08.86 95.89 204.75 4.24 286.8 "00."! 5#.!7 146.04 60.!5 5.9 70.75 7!.98 ".#7 !6.!6 161.36 80.9! 5.86 96.25 74.61 0.! 280.9
6-7(N84 !3.86 !3.86 !3."7 "7.!3 37.96 33.#3 7!.39 !.#8 !00 69.8! !8.89 50.9" "0.97 ".06 "#.67 "5.! 0.86 5.63 56."6 "8."! ".0# 33.56 "6.0! 0.03 97.9#
Mar '06 39.76 39.76 39.93 79.69 9".#5 !50.69 243.14 6.18 329.01 "50.36 65.! 185.26 56.0# 0 9!.9# 67.07 3.5! "0.7 183.22 9".0" 3.5# 95.56 87.65 0.06 329.01
6-7(N84 !".08 !".08 !".!# "#."" "8.! #5.8 73.9 !.88 !00 76.09 !9.79 56.3! !7.03 0 "7.9# "0.39 !.07 6."9 55.69 "7.97 !.08 "9.0# "6.6# 0.0" !00
-.-.2 COMMON SIHE >ALANCE S=EET For t!" $"(rs 2553 G 255< 9Rs. I# Cror"s; Table -2
Mar '05 2nco3e Sales Tur over E2cise +uty Net Sa!es 3ther / co*e Stoc' )d4ust*e ts ota! 2nco3e 4$)end%ture Ra6 1aterials -o6er 7 8uel Cost E*ployee Cost 3ther 1a u9acturi . E2pe ses Selli . a d )d*i E2pe ses 1iscella eous E2pe ses -reoperative E2p Capitalised ota! 4$)enses 3perati . -ro9it 1*"2 / terest 1*" +epreciatio 3ther ,ritte 399 1rof%t *efore a$ E2tra5ordi ary ite*s -&T :-ost E2tra5ord /te*s; Ta2 5e)orted Net 1rof%t Total <alue )dditio Equity +ivide d 3!5.87 "9."5 286.62 0.5# 58.98 278.18 !86.89 !86.89 9.67 0.59 !".3! ".39 0 224.4 53."# 53.78 !0.5 43.28 8.53 0.0# 34.71 0 3#.7! !3.8 20.94 37.5 3.98
6-7(N84 !!0."! !0."! !00 0.!9 53.!3 97.06 0 65." 65." 3.37 0."! #."9 0.83 0 78."9 !8.58 !8.76 3.66 !5.! ".98 0.0! !".!! 0 !".!! #.8! 7.3! !3.08 !.39
Mar '06 335.9 3".9# 302.96 0.9" 7.#! 311.29 "33.68 !6.53 !".76 0.56 !#.77 ".8 0 281.1 "9."7 30.19 !3.!! 17.08 !0.9# 0.0# 6.1 0 6.! !.9# 4.15 #7.#" !.99
6-7(N84 !!0.87 !0.87 !00 0.3 ".#5 !0".75 0 77.!3 5.#6 #."! 0.!8 #.88 0.9" 0 9".78 9.66 9.97 #.33 5.6# 3.6! 0.0! ".0! 0 ".0! 0.6# !.37 !5.65 0.66
INTERPRETATION FOR COMMON SIHE STATEMENT:
>ALANCE S=EET: ,ommon si"e financial statement is gi en abo e re eals of the total assets is taken +::; in the years -::0 A -::1. The common si"e balance sheet that shows the $eser e and surplus in -::0 +..-2; and -::1 is +-.-/; increase the surplus reser e and surplus. Cet 7orth has -2.+.; and -/.--; decrease in the pre ious year compared. Cet block has -::0 is 0:.<-; and 01..+; increased in -::1.
Sundry debtors increased to "5.!; and "0.39; decrease in -::1. ,ash 5 bank balance has 0.87; is taken -::0 and -::1 has !.07; that is
slowly decreased bank balance.

The net current assets ha e "6.0!; in the year -::0 and "6.6#; decreased in
the -::1.
INCOME STATEMENT: ,ommon si"e income statement is gi en abo e re eals of the $e enue from sales is taken +::; in the years -::0 A -::1.
PB='T has 18.86; is taken year -::1 and 9.97; compared to pre ious year
is increased.
6B'T has 12.11; in the year -::0 and 10.1; increase to 6B'T in the year
-::1.
Profit after ta8 7.31; in the year -::0 and increase the general reser e 1.37;
in the year -::1.
-.-.- COMMON SIHE >ALANCE S=EET For t!" $"(rs 2554. 255F G 2551 9Rs. I# Cror"s; Table ->
Mar '07 Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loa s $ secured Loa s ota! "e#t "effered a$ !%a#%!%t& ota! '%a#%!%t%es ())!%cat%on Of Funds %ross &loc' Less( )ccu*. +epreciatio Net *!oc+ Capital ,or' i -ro.ress / vest*e ts (dd, -urrent (ssets / ve tories Su dry +e0tors Cash a d &a ' &ala ce Loa s a d )dva ces ota! -(. 'oans / (d0ances 'ess, -urrent !%#%!%t%es Curre t Lia0ilities -rovisio s ota! -' / 1ro0%s%ons Net -urrent (ssets 1iscella eous E2pe ses ota! (ssets 39.76 39.76 5!.09 90.85 !63.83 !37.3# 301.17 11.85 403.87 3!8."# 76.66 241.58 7.5# 0 !06.37 76.68 "6.5 5".#" 261.97 !0!.88 5.38 107.26 154.71 0.0# 403.87
6-7(N84 9.8# 9.8# !".65 "".#9 #0.57 3#.0! 7#.57 ".93 !00 78.8 !8.98 59.8" !.87 0 "6.3# !8.99 6.56 !".98 6#.86 "5."3 !.33 "6.56 38.3! 0.0! !00
Mar '08 39.76 39.76 7!.8 111.56 !78.3" !"".7! 301.03 25.77 438.36 355.!6 9!."8 263.88 8.6" 0 !"0.93 88.!# #." 5".89 266.16 93.!9 7.!! 100.3 165.86 0 438.36
6-7(N84 9.07 9.07 !6.38 "5.#5 #0.68 "7.99 68.67 5.88 !00 8!.0" "0.8" 60." !.97 0 "7.59 "0.!! 0.96 !".07 60.7" "!."6 !.6" "".88 37.8# 0 !00
Mar '09 39.76 39.76 85.5 125.26 ""6.#6 !5#.6 381.06 31.24 537.56 389.75 !07.35 282.4 #."5 0 !##.36 !!9.66 3#.6# 6!.08 359.74 !0!.08 7.75 108.83 250.91 0 537.56
6-7(N84
7.4 7.4 15.91 23.3 42.13 28.76 70.89 5.81 100 72.5 19.97 52.53 0.79 0 26.85 22.26 6.44 11.36 66.92 18.8 1.44 20.25 46.68 0 100
-.-.2 COMMON SIHE >ALANCE S=EET For t!" $"(rs 2554. 255F G 2551 9Rs. I# Cror"s; Table -<
Mar '07 2nco3e Sales Tur over E2cise +uty Net Sa!es 3ther / co*e Stoc' )d4ust*e ts ota! 2nco3e 4$)end%ture Ra6 1aterials -o6er 7 8uel Cost E*ployee Cost 3ther 1a u9acturi . E2pe ses Selli . a d )d*i E2pe ses 1iscella eous E2pe ses -reoperative E2p Capitalised ota! 4$)enses 3perati . -ro9it 1*"2 / terest 1*" +epreciatio 3ther ,ritte 399 1rof%t *efore a$ E2tra5ordi ary ite*s -&T :-ost E2tra5ord /te*s; Ta2 5e)orted Net 1rof%t #!0.#5 #!.08 369.37 ".3" #.7! 376.4 "68.03 !7.03 !#.83 #.99 !#.3" 3.65 0 322.85 5!."3 53.55 "0.3! 33.24 !!.57 0.03 21.64 0 "!.6# 5.8# 15.81
6-7(N84 !!!.!" !!.!" !00 0.63 !."8 !0!.9 0 7".56 #.6! #.0! !.35 3.88 0.99 0 87.#! !3.87 !#.5 5.5 9 3.!3 0.0! 5.86 0 5.86 !.58 #."8
Mar '08 #9#.7" 3!.06 463.66 #.69 0.!# 468.49 33".69 !0.## !8.63 6."7 !#.!9 3.8" 0 386.04 77.76 82.45 "7."7 55.18 !5.!3 0.0# 40.01 50.55 39.#6 !#.! 25.92
6-7(N84 !06.7 6.7 !00 !.0! 0.03 !0!.0# 0 7!.75 "."5 #.0" !.35 3.06 0.8" 0 83."6 !6.77 !7.78 5.88 !!.9 3."6 0.0! 8.63 50.!" 8.5! 3.0# 5.59
Mar '09 680.#7 35.75 644.72 53.#8 5".#7 638.77 #9#.# !0.35 "!.#3 5.56 !7.3" #.53 0 553.59 88.66 85.18 #0.5# 44.64 !6.#" 0 28.22 0 "8."" 9.88 18.35
6-7(N84
105.55 5.55 100 -0.54 -0.38 99.08 0 76.68 1.61 3.32 0.86 2.69 0.7 0 85.87 13.75 13.21 6.29 6.92 2.55 0 4.38 0 4.38 1.53 2.85
INTERPRETATION FOR COMMON SIHE INCOMESTATEMENT >ALANCE S=EET: ,ommon si"e financial statement is gi en abo e re eals of the total assets is taken +::; in the years -::2# -::> 5-::<. ,ommon si"e balance sheet shows that the reser e and surplus increasing from +-.-0; to +1.>0; in -::2-:> and again decreased to +0.1+; in -::<.
Fi8ed assets ha e increased from 0<.>-; to 1:.-; in -::2--::> and
decreased to 58.8"= i "009. The current assets are continuously increased as compared to pre ious year Cet current assets ha e increased continuously year by year. INCOME STATEMENT: The common si"e income statement is gi en abo e re eals of the $e enue from Sales is taken +:: in the years -::2# -::> 5-::<.
The PB'=T increased from +/.0; to +2.2+; in the years between -::2--::>.
'n the year -::2 A -::>N it could not help to impro e profit. PAT has decreased compare to the pre ious years. 4ther income has increased 'n e ery year the company is slowly impro es its performance. 't is found the satisfactory position of the company.
-.2. TREND STATEMENT: Trend analysis calculates the percentage change for one account o er a period of time of two years or more. P"rc"#t()" c!(#)" To calculate the percentage change between two periods* ,alculate the amount of the increaseE Bdecrease@ for the period by subtracting the earlier year from the later year. 'f the difference is negati e# the change is a decrease and if the difference is positi e# it is an increase. =i ide the change by the earlier year&s balance. The result is the percentage change.
Tr"#d &"rc"#t()"s To calculate the change o er a longer period of time the following is the formula for calculating trend for the data*
N
Ye = a + b(X)
-.2.1 Tr"#d (#(7$s's or N"t S(7"s

Table .:
YEARS $X% 2004-05 2005-06 2006-07 2007-08 2008-09
NET SALES $Y% 286.62 302.9 369.37 463.66 644.72 2067.27
X&X ' A -2 -1 0 1 2 0
X( 4 1 0 1 4
2
XY -573.24 -302.9 0 463.66 1289.44 =
10
R 413.54N
Ye = a + b(X) 2009-10 = 413.454 + 80.696(3) = 676.633 2010-11 = 413.454 +80.696(4) = 764.329
R 80.696
The estimated net sales for -::<-+: is 121.1.. and the estimated net sales for -:+:++ is 21/..-< that mean in future net sales has been increasing.
-.2.2 Tr"#d (#(7$s's or Tot(7 I#co%"

Table .+
YEARS $X% 2004-05 2005-06 2006-07 2007-08 2008-09
TOTAL INCOME $Y% ()*+,* -,,+(. -)/+0 0/*+0. /-*+))
X&X ' A -2 -1 0 1 2 0
X( 4 1 0 1 4
2
XY -556.36 -311.29 0 468.49 1277.54 =
2073.13
10
R /+/.1-1; Ye = a + b(X)
2009-10 = 414.626 + 87.838(3) = 678.14 2010-11 = 413.626 +87.838(4) = 765.978
R 87.838
The estimated Total income for -::<-+: is 12>.+/ and the estimated Total income for -:+:-++ is 210.<2> that mean in future Total income has been increasing.
-.2.- Tr"#d (#(7$s's or Tot(7 EJ&"#s"s

Table .YEARS $X% 2004-05 2005-06 2006-07 2007-08 2008-09
TOTAL EXPENSES $Y% ((0+0 (*,+, -((+*1 -*/+20 11-+1.
X&X ' A -2 -1 0 1 2 0
X( 4 1 0 1 4
2
XY -448.8 -281.1 0 386.04 1107.18 =
1767.98
10
R .0..0<1; Ye = a + b(X)
2009-10 = 353.596 + 152.664(3) = 582.67
R 76.3596
2010-11 = 353.596 +152.664(4) = 659.03 The estimated Total 68penses for -::<-+: is 0>-.12 and the estimated Total 68penses for -:+:-++ is 10<.:. that mean in future Total 68penses has been increasing.
-.2.2Tr"#d (#(7$s's or Pro 't /" or" D"&r"c'(t'o#. I#t"r"st (#d T(J
Table ..
YEARS $X% 2004-05 2005-06 2006-07 2007-08 2008-09 PBDIT $Y% 1-+)* -2+,. 1-+11 *(+01 *1+,* 305.15 X&X ' A -2 -1 0 1 2 0 X( 4 1 0 1 4
2
XY -107.56 -30.19 0 82.45 170.36 =
10
R 1+.:.;
R 11.506
Financial performance Ye = a + b(X)

2009-10 = 61.03 + 23.012(3) = 95.548 2010-11 =61.03 +23.012(4) = 107.054 The estimated PB='T for -::<-+: is <0.0/> and the estimated PB='T for -:+:-++ is +:2.0/ that mean in future PB='T has been increasing.
-.2.3 Tr"#d (#(7$s's or N"t &ro 't

Table ./
YEARS $X% 2004-05 2005-06 2006-07 2007-08 2008-09 NET PROFIT $Y% (2+.0 0+,1 ,1+*, (1+.( ,*+-1 85.17 0 X&X ' A -2 -1 0 1 2 X( 4 1 0 1 4
2
XY -41.88 -4.15 0 25.92 36.7 =
10
Financial performance R +2.:./; Ye = a + b(X)

2009-10 = 17.034 + 3.318(3) = 22.011 2010-11 =17.034 +3.318(4) = 23.67 The estimated Cet profit for -::<-+: is --.:++ and the estimated Cet profit for -:+:++ is -..12 that mean in future Cet profit has been increasing.
R 1.659
-.2.< Tr"#d (#(7$s's or F'J"d Ass"ts

Table .0
YEARS $X% 2004-05 2005-06 2006-07 2007-08 2008-09 FIXED ASSETS $Y% ,0/+20 ,*1+(/ (0,+1* (/-+** (*(+0 1119.16 X&X ' A -2 -1 0 1 2 X( 4 1 0 1 4
2
XY -292.08 -185.26 0 263.88 564.8 =
0 10
R --..>.-; Ye = a + b(X)
2009-10 = 223.832 + 70.268(3) = 329.234 2010-11 =223.832 +70.268(4) = 364.368
R 35.134
The estimated fi8ed assets for -::<-+: is .-<.-./ and the estimated Fi8ed assets for -:+:-++ is .1/..1> that mean in future Fi8ed assets has been increasing.
-.2.4 Tr"#d (#(7$s's or Tot(7 Ass"ts

Table .1
YEARS $X% 2004-05 2005-06 Tot(7 Ass"ts 9Y; (*(+1/ -((+*X&X ' A -2 -1 X( 4 1 XY -565.12 -322.83
2006-07 2007-08 2008-09 -.(+2( 0,(+1. 12/+-( 1916.32 0 0 1 2 0 1 4
2
0 412.59 1012.64 =
10
R .>..-1/; Ye = a + b(X)
2009-10 = 383.264+ 107.456 (3) = 544.44 2010-11 =383.264+107.456 (4) = 598.168
R 53.728
The estimated Total assets for -::<-+: are 0//.//and the estimated Total assets for -:+:-++ is 0<>.+1> that mean in future Total assets has been increasing.
-.2.F Tr"#d (#(7$s's or D"/t-ECu't$ R(t'o

Table .2
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< DE>T- E@UITYRATIO -.1. ..:0 ...+ -.2 ..:/ 14.73 0 X&X ' A -2 -1 0 1 2 X( 4 1 0 1 4
2
XY -5.26 -3.05 0 2.7 6.08 =
10
R -.</1; Ye = a + b(X)
2009-10 = 2.946+ 0.047 (3) = 2.087 2010-11 =2.946+0.047 (4) = 3.134
R :.:/2
The estimated =ebt-6!uity $atio for -::<-+: is -.:>2 and the estimated =ebt-6!uity $atio for -:+:-++ is ..+./ that mean in future =ebt-6!uity $atio has been increasing.
-.2.1 Tr"#d (#(7$s's or Pro&r'"t(r$ R(t'o
Table .> Y"(r -::/-::0 -::0-::1 -::1-::2 -::2-::> -::>-::< Pro&r'"t(r$ R(t'o :.-> :.-/ :.-:.-0 :.-. R +.-X&X ' A -2 -1 0 1 2 =0 X( 4 1 0 1 4 2 = 10 XY -0.56 -0.24 0 0.25 0.46 =-0.09
R :.-//; Ye = a + b(X)
2009-10 = 0.244 + -0.009 (3) = 0.217 2010-11 = 0.244 +-0.009 (4) = 0.208
R -:.::<N
The estimated Proprietary $atio for -::<-+: is :.-+2 and the estimated Proprietary $atio for -:+:-++ is :.-:> that mean in future Proprietary $atio has been decreasing.
-.2.15 Tr"#d (#(7$s's or Tot(7 D"/t R(t'o

Table .< Y"(r -::/-::0 -::0-::1 -::1-::2 -::2-::> -::>-::< Tot(7 D"/t R(t'o :.2. :.2/ :.20 :.1< :.2+ R ..1X&X ' A -2 -1 0 1 2 =0 X( 4 1 0 1 4 2 = 10 XY -1.46 -0.74 0 0.69 1.42 =-0.09
R :.2-/; Ye = a + b(X)
2009-10 = 0.724 + -0.009 (3) = 0.697 2010-11 = 0.724 +-0.009 (4) = 0.688
R -:.::<N
The estimated Total =ebt $atio for -::<-+: is :.1<2 and the estimated Total =ebt $atio for -:+:-++ is :.1>> that mean in future Total =ebt has been decreasing.
-.2.11 Tr"#d (#(7$s's or Curr"#t R(t'o

Table /:
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<
CURRENT RATIO 1.68 1.92 2.44 2.65 3.31 = 12
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -3.36 -1.92 0 2.65 6.62 = 3.99
R -./; Ye = a + b(X)
R :..<<N
2009-10 = 2.4 + 0.399 (3) = 3.597 2010-11 = 2.4 + 0.399 (4) = 3.996 The estimated ,urrent $atio for -::<-+: is ..0<2 and the estimated ,urrent $atio for -:+:-++ is ..<<1 that mean in future ,urrent $atio has been increasing.
-.2.12 Tr"#d (#(7$s's or @u'c8 R(t'o

Table /+
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<
QUICK RATIO 0.94 0.96 1.45 1.45 1.98 = 6.78
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -1.88 -0.96 0 1.45 3.96 = 2.57
R +..01;
R :.-02N

2009-10 = 1.356 + 0.257 (3) = 2.217 2010-11 = 1.356 + 0.257 (4) = 2.384 The estimated Luick $atio for -::<-+: is -.-+2 and the estimated Luick $atio for -:+:-++ is -..>/ that mean in future Luick $atio has been increasing.
-.2.1- Tr"#d (#(7$s's or C(s! R(t'o

Table /-
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<
CASH RATIO 0.02 0.02 0.1 0.02 0.1 = 0.26
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -0.04 -0.02 0 0.02 0.2 = 0.16
R :.:0-;
R :.:+1N

2009-10 = 0.052+ 0.016 (3) = 0.1 2010-11 = 0.052+ 0.016 (4) = 0.116 The estimated ,ash $atio for -::<-+: is :.+ and the estimated ,ash $atio for -:+:++ is :.++1 that mean in future ,ash $atio has been increasing.
-.2.12 Tr"#d (#(7$s's or N"t Pro 't R(t'o

Table /.
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<
NET PROFIT RATIO 7.31 1.37 4.28 5.6 2.854 = 21.414
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -14.62 -1.37 0 5.6 5.708 = -4.682
Financial performance R /.->->; Ye = a + b(X)

2009-10 = 4.2828+ -0.4682 (3) = 2.8782 2010-11 = 4.2828+ -0.4682 (4) = 2.41 The estimated Cet Profit $atio for -::<-+: is -.>2>- and the estimated Cet Profit $atio for -:+:-++ is -./+ that mean in future Cet Profit $atio has been decreasing.
R -:./1>-N
-.2.13 Tr"#d (#(7$s's or Gross Pro 't R(t'o Table //

YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< GROSS PROFIT RATIO 30.42 17.41 22.93 30.5 23.31 = 124.57
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -60.84 -17.41 0 30.5 46.62 = -1.13
R -/.<+/;
R -+.+.N

2009-10 = 24.914+ -0.113 (3) = 24.576 2010-11 = 24.914+ -0.113 (4) = 24.462 The estimated Mross Profit $atio for -::<-+: is -/.021 and the estimated Mross Profit $atio for -:+:-++ is -/./1- that mean in future Mross Profit $atio has been decreasing.
-.2.1< Tr"#d (#(7$s's or O&"r(t'#) Pro 't R(t'o Table /0

YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< OPERATING PROFIT RATIO 18.58 9.66 13.87 16.77 13.75 = 72.63
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -37.16 -9.66 0 16.77 27.5 = -2.55
R 2-.1.;
R --.00N

2009-10 = 72.63+ -2.55 (3) = 13.761 2010-11 = 72.63+ -2.55 (4) = 13.506 The estimated 4perating Profit $atio for -::<-+: is +..21+ and the estimated 4perating Profit $atio for -:+:-++ is +..0:1 that mean in future 4perating Profit $atio has been decreasing.
-.2.14 Tr"#d (#(7$s's or R"tur# o# C(&'t(7 E%&7o$"d R(t'o

Table /1
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< RETURN ON CAPITAL EMPLOYED 7.45 1.26 3.91 5.91 3.41 = 21.94
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -14.9 -1.26 0 5.91 6.82 = -3.43
R /..>>;
R -:../.N

2009-10 = 4.388 + -0.343 (3) = 3.359 2010-11 = 4.388 + -0.343 (4) = 3.016 The estimated $eturn on ,apital 6mployed for -::<-+: is ...0< and the estimated $eturn on ,apital 6mployed for -:+:-++ is ..:+1 that mean in future $eturn on ,apital 6mployed has been decreasing.
-.2.1F Tr"#d (#(7$s's or R"tur# o# N"t :ort! R(t'o

Tabl /2
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< RETURN ON NET WORTH 26.91 5.2 17.4 23.23 14.65 = 87.39
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -53.82 -5.2 0 23.23 29.3 = -6.49
Financial performance R +2./2>; Ye = a + b(X)

2009-10 = 17.478 + -0.649 (3) = 15.549 2010-11 = 17.478+ -0.649 (4) = 14.889 The estimated $eturn on Cet 7orth for -::<-+: is +0.0/< and the estimated $eturn on Cet 7orth for -:+:-++ is +/.>>< that mean in future $eturn on Cet 7orth has been decreasing.
R -:.1/<N
-.2.11 Tr"#d (#(7$s's or R"tur# o# I#6"st%"#t R(t'o

Table/>
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< RETURN ON IN3ESTMENT 19.15 9.18 13.26 18.81 15.85 = 76.25
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -38.3 -9.18 0 18.81 31.7 = 3.03
R +0.-0; Ye = a + b(X)
2009-10 = 15.25 + 0.303(3) = 16.159 2010-11 = 15.25+ 0.303 (4) = 16.462
R :..:.N
The estimated $eturn on 'n estment for -::<-+: is +1.+0< and the estimated $eturn on 'n estment for -:+:-++ is +1./1- that mean in future $eturn on 'n estment has been increasing.
-.2.25 Tr"#d (#(7$s's or Curr"#t Ass"ts Tur#o6"r R(t'o:

Table /<
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<
CURRENT ASSETS TURN O3ER RATIO 1.78 1.65 1.41 1.74 1.79
X&X ' A -2 -1 0 1 2
X( 4 1 0 1 4
XY -3.56 -1.65 0 1.74 3.58
= 8.37
=0
2 = 10
= 0.11
R +.12/; Ye = a + b(X)
2009-10 = 1.674 + 0.011(3) = 1.707 2010-11 = 1.674+ 0.011 (4) = 1.718
R :.:++N
The estimated ,urrent Assets Turn o er $atio for -::<-+: is +.2:2 and the estimated ,urrent Assets Turn o er $atio for -:+:-++ is +.2+> that mean in future ,urrent Assets Turn o er $atio has been increasing.
-.2.21 Tr"#d (#(7$s's or F'J"d Ass"ts Tur#o6"r R(t'o:

Table 0:
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::>
FIXED ASSETS TURN O3ER RATIO 1.96 1.64 1.53 1.76
X&X ' A -2 -1 0 1
X( 4 1 0 1
XY -3.92 -1.64 0 1.76
-::>--::< 2.28 = 9.17
2 =0
4 2 = 10
4.56 = 0.76
R +.>./; Ye = a + b(X)
2009-10 = 1.834 + 0.076 (3) = 2.062 2010-11 = 1.834 + 0.076 (4) = 2.138
R :.:21N
The estimated Fi8ed Assets Turno er $atio for -::<-+: is -.:1- and the estimated Fi8ed Assets Turno er $atio for -:+:-++ is -.+.> that mean in future Fi8ed Assets Turno er $atio has been increasing.
-.2.22 Tr"#d (#(7$s's or Tot(7 Ass"ts Tur#o6"r R(t'o:

Table 0+
YEAR -::/--::0 -::0--::1 -::1--::2
TOTAL ASSETS TURN O3ER RATIO 1.02 0.92 0.91
X&X ' A -2 -1 0
X( 4 1 0
XY -2.04 -0.92 0
-::2--::> -::>--::< 1.06 1.2 = 5.11
1 2 =0
1 4 2 = 10
1.06 2.4 =0.5
R +.:--; Ye = a + b(X)
2009-10 = 1.022 + 0.05 (3) = 1.172 2010-11 = 1.022 + 0.05 (4) = 1.222
R :.:0N
The estimated Total Assets Turno er $atio for -::<-+: is +.+2- and the estimated Total Assets Turno er $atio for -:+:-++ is +.--- that means in future Total Assets Turno er $atio has been increasing.
-.2.2- Tr"#d (#(7$s's or Tot(7 Ass"ts Tur#o6"r R(t'o:

Table 0YEAR -::/--::0 -::0--::1 NET WORKING CAPITAL TURN O3ER RATIO 3.84 3.46
X&X ' A -2 -1
X( 4 1
XY -7.68 -3.46
-::1--::2 -::2--::> -::>--::< 2.39 2.8 2.57 = 15.06
0 1 2 =0
0 1 4 2 = 10
0 2.8 5.14 = -3.2
R ..:+-; Ye = a + b(X)
2009-10 = 3.012 + -0.32 (3) = 2.052 2010-11 = 3.012 + -0.32 (4) = 1.732
R -:..-N
The estimated Cet 7orking ,apital Turno er $atio for -::<-+: is -.:0- and the estimated Cet 7orking ,apital Turno er $atio for -:+:-++ is +.2.- that means in future Cet 7orking ,apital Turno er $atio has been decreasing.
-.2.22 Tr"#d (#(7$s's or D"/tors Tur#o6"r R(t'o:

Table0.
YEAR DEBTORS TURN O3ER RATIO X&X ' A X( XY
-::/-::0 -::0-::1 -::1-::2 -::2-::> -::>-::< ..<> /.0/.>0.-1 0..< R -..<2
-2 -1 0 1 2 =0 4 1 0 1 4 2 = 10 -7.96 -4.52 0 5.26 10.78 = 3.56
R /.2</; Ye = a + b(X)
2009-10 = 4.794 + 0.356 (3) = 5.865 2010-11 = 4.794 + 0.356 (4) = 6.221
R :..01N
The estimated =ebtors Turno er $atio for -::<-+: is 0.>10 and the estimated =ebtors Turno er $atio for -:+:-++ is 1.--+ that means in future =ebtors Turno er $atio has been increasing.
-.2.23 Tr"#d (#(7$s's or I#6"#tor$ Tur#o6"r R(t'o:
Table0/
YEAR IN3ENTORY TURN O3ER RATIO X&X ' A -2 -1 0 1 2 =0 X( 4 1 0 1 4 2 = 10 XY -5.64 -2.69 0 2.93 6.98 = 1.58
-::/-::0 -::0-::1 -::1-::2 -::2-::> -::>-::<
-.>-.1< -.1-.<. ../< R +/.00
R -.<+; Ye = a + b(X)
2009-10 = 2.91 + 0.158 (3) = 3.384 2010-11 = 2.91 + 0.158 (4) = 3.542
R :.+0>N
The estimated 'n entory Turno er $atio for -::<-+: is ...>/ and the estimated 'n entory Turno er $atio for -:+:-++ is ..0/- that mean in future 'n entory Turno er $atio has been increasing.
-.2.2< Tr"#d (#(7$s's or E(r#'#)s &"r S!(r":

Table00
YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::< EARNINGS PER SHARE 0.-2 +.:/ ..<> 1.0/.1R -+./.
X&X ' A -2 -1 0 1 2 =0
X( 4 1 0 1 4 2 = 10
XY -10.54 -1.04 0 6.52 9.24 = 4.18
R /.->1; Ye = a + b(X)
2009-10 = 4.286 + 0.418 (3) = 5.54 2010-11 = 4.286 + 0.418 (4) = 5.958
R :./+>N
The estimated Fi8ed Assets Turno er $atio for -::<-+: is 0.0/ and the estimated Fi8ed Assets Turno er $atio for -:+:-++ is 0.<0> that mean in future Fi8ed Assets Turno er $atio has been increasing.
4.1 FINDINGS
=ebt-6!uity ratio is fluctuated in each yearN it increases from -.1. to ...+ in the periods in between -::/-:2# decreased in the year -::2-:> and again increased in the period -::>-:<. Proprietary $atio is fluctuated in each year# in -::/-:0 it recorded as :.-># the a erage ratio is recorded as :.-0 The debt ratio a erage for the study period is :.2/01N it means that the lenders ha e financed 2/.01; of total debt 'n the study period the companyDs interest co erage ratio is fluctuating. 'n -::/--::0 it shows a high ratio B0.+-@# a high ratio is desirable to the company.
The firmDs current ratio is lower than standard form in -::/-:0 and -::0-:1. But in -::1-:2# -::2-:> and -::>-:< it was recorded higher than standard form. The companyDs !uick ratio is almost e!ual to standard ratio +*+ in the years# -::1-:2# -::2-:> and -::>-:<. But in -::0-:1 and -::/-:0 it is not e!ual to ideal ratio. 'n the study period the working capital turno er ratio was continuously fluctuated. The a erage working capital ratio is ...-/. Mross profit of the company is fluctuating throughout the study period# in the year -::0-:1 the gross profit ratio is down to +2./+. The net profit ratio was 2.-> in the year -::/-:0 and it highly decreased to +..1 in the year -::0-:1 and it slowly increased in the years -::1-:2 and -::2-:># again it decreased to -.>. in the period -::>-:<. The companyDs return on capital employed is lowN in -::/--::0 the ratio was +:.-.; but in ne8t yearDs the company could not maintain the good returns on capital employed. The 'n entory Turno er ratio is increasing e ery year# in -::/--::0 it is -.>and in -::>--::< it is recorded as ../<. =ebtorsD turno er ratio shows a higher alue# in -::/--::0 it is ..<> and it continuously increases# in -::>--::< it recorded as 0..<. The estimated Total assets for -::<-+: is 2:0.1.- and estimated Total assets for -:+:-++ are >+..:>> that mean in future Total assets has been increasing.
The estimated fi8ed assets for -::<-+: is /./.1.1 and the estimated fi8ed assets for -:+:-++ is 0:/.<:/ that mean in future Fi8ed assets has been increasing. The estimated Cet profit for -::<-+: is -1.<>> and the estimated Cet profit for -:+:-++ is .:..:1 that mean in future Cet profit has been increasing. The estimated PB='T for -::<-+: is +.:.:11 and the estimated PB='T for -:+:-++ is +0..:2> that mean in future PB='T has been increasing. The estimated Total 68penses for -::<-+: is >++.0>> and the estimated Total 68penses for -:+:-++ is <1/.-0- that mean in future Total 68penses has been increasing. The estimated Total income for -::<-+: is </+.10/ and the estimated Total income for -:+:-++ is +++2... that mean in future Total income has been increasing. The estimated net sales for -::<-+: is <.<.1. and the estimated net sales for -:+:-++ is +++0.:- that mean in future net sales has been increasing. The estimated =ebt-6!uity $atio for -::<-+: is -.:>2 and the estimated =ebt6!uity $atio for -:+:-++ is ..+./ that mean in future =ebt-6!uity $atio has been increasing. The estimated ,urrent $atio for -::<-+: is ..0<2 and the estimated ,urrent $atio for -:+:-++ is ..<<1 that mean in future ,urrent $atio has been increasing. The estimated Luick $atio for -::<-+: is -.-+2 and the estimated Luick $atio for -:+:-++ is -..>/ that mean in future Luick $atio has been increasing.
The estimated Cet Profit $atio for -::<-+: is -.>2>- and the estimated Cet Profit $atio for -:+:-++ is -./+ that mean in future Cet Profit $atio has been decreasing. The estimated $eturn on 'n estment for -::<-+: is +1.+0< and the estimated $eturn on 'n estment for -:+:-++ is +1./1- that mean in future $eturn on 'n estment has been increasing. The estimated Total Assets Turno er $atio for -::<-+: is +.+2- and the estimated Total Assets Turno er $atio for -:+:-++ is +.--- that means in future Total Assets Turno er $atio has been increasing. The estimated Cet 7orking ,apital Turno er $atio for -::<-+: is -.:0- and the estimated Cet 7orking ,apital Turno er $atio for -:+:-++ is +.2.- that means in future Cet 7orking ,apital Turno er $atio has been decreasing. The estimated Fi8ed Assets Turno er $atio for -::<-+: is 0.0/ and the estimated Fi8ed Assets Turno er $atio for -:+:-++ is 0.<0> that mean in future Fi8ed Assets Turno er $atio has been increasing.
2.2 SUGGETIONS
As it found those debt-e!uity ratios are fluctuating the company is suggested to maintain a low debt by procuring the funds through e!uity shares in order to maintain a better debt-e!uity ratio. As it found the current ratio is not e!ual to the standard ratio -*+N it was recommended to utili"e the idle current assets of the company in order to increase the other income. And standardi"e the firmDs current ratio.
The company is suggested to impro e the net profit by increasing the olume of sales as it is found that sales percentage is fluctuating o er the years. The company has to go for integrated marketing# so that it can increasing its sales# with this the profit will be increased. The 7orking ,apital turno er ratio shows a Fluctuating balances. The company must try to assess working capital needs perfectly. Menerally an ideal company will try to maintain an a erage working capital policy rather too conser ati e or too aggressi e. But the company highly followed conser ati e approach. 't can be suggested that the company should de elop an optimum working capital policy# in keeping in iew of the
a ailability of the funds for day-to-day operations to get more returns. ,ompany maintains ,urrent Assets e!ual to Fi8ed Assets# it is better to in est the ideal funds in other sources to get other income. 'n -::0--::1 the companyDs performance is decreased due to arious reasons# it is better to forecast the future trends# and make changes in the companyDs policies to get good returns.
/.. ,4C,L?T'4C
Financial performance The F !"!# "$ "!"$%& & & 'he ()*#e&& *+ ,e!' +% !'he + !"!# "$ &')e!-'h& "!, .ee/ !e&& *+ 'he + )0 "!, )"' * "!"$%& & & #")) e, *1' '* 0e"&1)e 'he e!'e)() &e& $ 21 , '%3 ()*+ '"4 $ '%3 &*$5e!#%3 &'"4 $ '% "!, *'he) !, #"'*)& '* "&&e&& '& *(e)"' !e++ # e!#%3 + !"!# "$ (*& ' *! "!, (e)+*)0"!#e. A+'e) + !"!# "$ "!"$%& & I #*!#$1,e 'h"' 'he 6AN7O IN8USTRY 6I9ITE8 (e)+*)0"!#e & &"' &+"#'*)%.
REFERENCES
%. PAC=69 B-::0@# Hfinancial managementJ# ninth edition publishing house P t ltd. S. C. %AK6S7A$' B-::1@# Hfinancial and management accountingJ# fifth edition# sultan chand and sons# Cew =elhi. ,. $. F4TKA$'# Hresearch methodology and techni!uesJ. Second edition# new Agency international p t ltd. BAF6$. $ .P 5 K47 76LL. A.,# Hthe preparation of reportsJ# Cew 9ork $onald press. S.P. M?PTKA B+<<0@# Hstatistical methods# Hsultan chand and# co Cew =elhi. AK?GA K.L# Heconomic en ironment of business# macroeconomic analysisH# chand 5company ltd# Cew =elhi# -::0. ikas
:E> SITES :**. L(#co I#dustr'"s 7td .co%
LANCO INDUSTRIES LIMITED BALANCE SHEET

2005
:R& IN 7)*)e;&<
2006
:R& IN 7)*)e;&<
2007
:R& IN 7)*)e;&<
2008
:R& IN 7)*)e;&<
2009
:R& IN 7)*)e;&<
S45rces 46 F5n7s
T*'"$ &h")e 7"( '"$ E21 '% &h")e #"( '"$ A(($ #"' *! 0*!e% P)e+e)e!#e Sh")e #"( '"$ Re&e)5e& Re5"$1"' *! Ne'.*)/ Se#1)e $*"!& U! &e#1)e $*"!& T*'"$ 8e4 ' 39.76 39.76 39.76 39.76 39.76 39.76 39.76 39.76 39.76 39.76
0 0
0 0
0 0
0 0
0 0
38.05 0 77.81 108.86 95.89 204.75
39.93 0 79.69 92.45 150.69 243.14
51.09 0 90.85 163.83 137.34 301.17
71.08 0 111.56 178.32 122.71 301.03
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Financial-Analysis of Lanco Industries

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Financial-Analysis of Lanco Industries

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Financial performance 1.

1 RAOS INSTITUTE OF MANGEMENT STUDIES

2 RAOS INSTITUTE OF MANGEMENT STUDIES

Financial performance 1.2 INDUSTRY PROFILE

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5 RAOS INSTITUTE OF MANGEMENT STUDIES

PIG IRON PRODUCERS IN INDIA

96A$ -::1-:2 -::2-:> -::>-:< -::<-+:

CO+E OVEN INDUSTRY:

6 RAOS INSTITUTE OF MANGEMENT STUDIES

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1.- COMPANY PROFILE

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MISSION OF LANCO INDUSTRIES:

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2.1NEED FOR T=E STUDY

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2.- O>?ECTIVES OF T=E STUDY

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2.2 RESEARC= MET=ODOLOGY

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+. =ebt-6!uity $atio -. Proprietary $atio .. =ebt-6!uity $atio BLong-Term@

23 RAOS INSTITUTE OF MANGEMENT STUDIES

Pro 't(/'7't$ '# r"7(t'o# to '#6"st%"#t.

24 RAOS INSTITUTE OF MANGEMENT STUDIES

25 RAOS INSTITUTE OF MANGEMENT STUDIES

:.-> :.-/ :.-:.-0 :.-.

26 RAOS INSTITUTE OF MANGEMENT STUDIES

:.2. :.2/ :.20 :.1<

27 RAOS INSTITUTE OF MANGEMENT STUDIES

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30 RAOS INSTITUTE OF MANGEMENT STUDIES

91.28 155.6 145.23 215.38

31 RAOS INSTITUTE OF MANGEMENT STUDIES

NWC = Current Assets - Current Liabilities

32 RAOS INSTITUTE OF MANGEMENT STUDIES

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34 RAOS INSTITUTE OF MANGEMENT STUDIES

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Pro 't(/'7't$ R(t'os r"7(t"d to I#6"st%"#ts:

36 RAOS INSTITUTE OF MANGEMENT STUDIES

37 RAOS INSTITUTE OF MANGEMENT STUDIES

38 RAOS INSTITUTE OF MANGEMENT STUDIES

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YEAR -::/--::0 -::0--::1 -::1--::2 -::2--::> -::>--::<

PAT -:.</ /.+0 +0.>+ -0.<+>..0

NO. OF EQUITY SHARE .<.21/ .<.21/ .<.21/ .<.21/ .<.21/