Ratio Analysis

CHAPTER I
DESIGN OF THE STUDY 1) N 2) OF THE PROBLEM 3) THE STUDY 4) Y 5) OF THE STUDY LIMITATIONS METHODOLOG OBJECTIVES OF STATEMENT INTRODUCTIO

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CHAPTER I
1. INTRODUCTION TO THE STEEL

India is the sixth largest steel producer in the world. The industry is required to meet over 90% of the companys total requirement of steel. Steel is a product of the large and technological complex industry having strong forward and backward linkages in term of material flows and income generation. Steel is crucial to the development of any modern economy and is considered to be the back bone of the human civilization. The demand of steel is basically a derived demand. It is derived from mainly the steel consuming industries specifically the construction, automotive, appliances, and other consumer durables. 2. STATEMENTS OF THE PROBLEM Analysis of the performance is one of the major requirements for planning it is necessary to know where we are in comparision with the industry ration analysis is one of the such tool available to analyses the financial performance. BMM is a private limited company. The study has been undertaken to highlight the significance of ratio analyses in case of mining company with specific reference of BMM.

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3. OBJECTIVES OF THE STUDY a) To analyze both short term & long term slouchy of the company b) To study the financial ratios in detail of the company c) To analyze the management efficiency of the company. d) To analyze the profitability of the company 4. METHODOLOGY The necessary data was colleted by discussing with various personal department & their several of the organization. It policies methods made an elaborate study of finance department by looking in to the transactions, journals, accounts & trial balance are prepared various balance sheets based on actual of accounts & analyze their accordingly. Since the value of any systematic & scientific research lies in its methodology giving a clean picture of the study & strong the purpose become essential parts of every study.

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5. LIMITATIONS OF THE STUDY According to ratio is subjected to limitations they are as follows: 1) Comparative Study Ratios are useful in judging the efficiency of the part results of the business. However, such a comparison only provides a glimpse of the past performance & fare cast far future may not provide connect since several other factors like, market condition management policies etc may effect the future operation. 2) Financial Statement Ratio are based on the information which has been recorded in the financial statements far example financial charges through important far the business are not revealed by the financial statements (3) Ratios are alone are not adequate Ratios are only indicators they can not be taken as final regarding good on bad financial position of the business other things have also to be sent. (4) Window dressing The term window dressing means manipulating of account in a way as to conceal vital facet & present financial statement in a way to show a better position then what it actually is an account of such a

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situation presence of a particular ratio may not be a definite indication of good on bad management.

(5) Problem of price level charges Financial analyses based on accounting ratios will gave misleading results it the effect of charges in price levels taken in to account. 6) No fixed standards No fixed standards can be laid down ideal ratios for example currents ratio is generally considered liabilities. However, in case of those concerns while having adequate arrangements with their bankers for providing fund when the lay request it may be perfectly ideal if current assets are equal to as slightly them.

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CHAPTER-II COMPANY PROFILE 1) 2) 3)

4)

HISTORY OF BMM OBJECTIVES OF BMM VISION ,MISSION & CORE VALUES HIGH QUALITY OF BMM PRODUCTS PRODUCT PROFILE COMPETITORS INFORMATION FUTURE GROWTH AND PROSPECTS ORGANISATION CHART OF BMM

5) 6) 7) 8)

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CHAPTER-II

HISTORY OF BMM

Bharat mines and minerals is one of the Indias largest exporters of iron ore located in the Bellary-Hospet-Sandur-Belt Belt in Karnataka, India. BMM was established in 1976 by late Udayachand Singh who started supplying iron ore to MMTC. Subsequently they started developing markets in the private sector. Mines with different grade and type of iron ore in the Bellary-HospetSandur-Belt suit various steel mills requirement. The present turnover of the company is 2 million tons per annum. Intense researcher over period of 4 years and exceptional levels of performance has enabled the company to secure a license from the government of India to export its products through private channels. BMM has set an export target of million tons of iron ore bys2009. This is apart from catering to the needs of established domestic customers. At present BMM hold on hand a deposit of 30-40million tons of iron ore and is expected to acquire 70-80 million tons in stages. All this has been made possible by the vision and expertise of the team and the total commitment of the workforce. This BMM team with unique competence is poised to transform the company into a global leader.

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OBJECTIVES OF BMM COMPANY 1. Achieve 100% production and overshoot the rated capacity 2. Ensure to minimize shut down 3. Achieve zero breakdowns. 4. Ensure zero harm. 5. Complete team effort. And optimum utilization of available resources Production capacity Machine and equipment Infrastructure & utilities Minimize cost 6. Ensuring optimum use of time Vision. Company develops relationship with international client by consistently meeting their quality standards and schedules in supplying the best quality of material and services Mission: To unearth natural resources of our planet in a reasonable manner for the for the benefit of humanity while ensuring that minimal damaged is

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caused to the environment and to excel in all areas of production and distribution through scientific processes based on a foundation of integrity and transparency.

CORE VALUES:
ATTITUDE: - CRYSTAL CLEAR.

BEHAVIOUR: - DRIVE WITH LEADERSHIP.

CREATIVITY: - DIFFRENTIATE THE BENEFIT.

DELIVERY: - INNOVATE THE FUTURE.

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Quality Policy: The use of QTB technical parameters of bar High tensile strength Good weld ability because of low carbon contents in combination with high yield point Good bending without micro-cracks on the surface Very good fatigue characteristics that enable QTB treated bar to be used in applications requiring high, dynamic loads QTB treated bars maintain their thermal stability during a fire similar to traditionally rolled bars. Because of better mechanical and metallurgical properties, QTB treated bars of smaller diameters can be implemented in the design of reinforced construction projects. Decreasing the weights of the bar also provides cost savings to the client BMM will develop and maintain, satisfy stakeholders like customers, suppliers, associates, shareholders and employees through customers satisfaction, value addition, speed and warmth. It is enhanced through a continuous improvement in numerical benchmarks.

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PRODUCT PROFILE 1. Sponge iron plant 2. induction Furnence & CMM 3. rolling mill 4. 220KV switch yard 5. 25MW power plant 6. pallet plant 7. Benification plant

FUTURE GROWTH AND PROSPECT:-

The Company vision to intensify the development activities towards resource, Management, quality improvement, up gradation of technology efficiency like Sponge Iron 1000 mt per day. (Present production 200 mt per day). Pipe line from Tunga Bhadra Dam to Plant reservoir. Waste heat recovery boiler (WHRB). Railway siding at Ranjitpura and Danapur phase II

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Raw Material handling system (RMHS), Railway siding for RMHS. Pellet & Beneficiation plant phase II -1.2 million tonnes per annum.

Non recovery coke oven plant- 0.4 million tonnes per annum. Power plant II capacity 60 MW. New Administration building. COMPITITORS INFORMATION. Kalyani steels

Jindal steel Bellary steel plant Chitrakoot Bangalore Indus Alliys Ltd Bangalore Kamadhenu.

ORGANISATION STRUCTURE

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CHAPTER-III THEORETICAL ASPECTS OF RATIO ANALYSIS 1) INTRODUCTION 2) MEANING OF RATIO ANALYSIS 3) OBJECTIVES OF RATIO ANALYSIS 4) TYPES OF RATIO ANALYSIS 5) IMPORTANCE OF RATIO ANALYSIS 6) LIMITATIONS OF RATIO ANALYSIS 7) SUMMARY

FINANCIAL STATEMENT 1) INTRODUCTION 2) MEANING AND DEFINATION OF FINANCIAL ANALYSIS 3) TYPES OF FINANCIAL ANALYSIS 4) OBJECTIVES OF FINANCIAL ANALYSIS 5) USE AND IMPORTANCE OF FINANCIAL ANALYSIS 6) TOOLS AND TECHNIQUES OF FINANCIAL

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CHAPTER-III

INTRODUCTION Ratio analysis is one of the techniques of ratio analyses of financial statements ratio is the numerical or arithmetical relationship between two figures it is expressed when on figure is divided by another MEANING OF RATIO ANALYSIS Ratio Analysis is measures the relationship between more than two on more variables. Ratio is only comparison of the nominator with the denominators. Ratio analyses a widely used tool of financial analysis statement, so than the strength & weakness of a firm as well as its historical performance & currents financial conditions can be determined by the ratio analysis. OBJECTIES OF RATIO ANALYSIS a) Ratios can be used for the purpose of comparison b) To know the financial solvency of the business c) Ratios can be used for the purpose of efficiency of the business d) Ratio can be used for the purpose of planning fore casting & controlling e) Ratios can be used for the purpose of decision making

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f) Ratios are as effective means of communication of the owners &

the outside parties. g) For appreciation of profits on losses are used.

TYPES OF RATIOS

Profit & loss Account ratio

Balance sheet Ratio

Inter statement Ratios

1) Profit & loss Account ratios Profit earning is the main objective of business concerns. A company should earn profits to survive & to grow over a long period. A measure of profitability is the over all measures efficiency many ratios are being used for the measurement of profitability of a company. The ratios are used for the profitability of the company are as follows.

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A) Gross Profit Ratio The gross profit ratio is also as Gross margin ratio or trading margin age. The difference between net sales & cost of goods sold is known as gross profit. Gross profit ratio can be calculated by applying the following formula Gross Profit Ratio = Gross Profit / Sales x 100 B) Net Profit Ratio It is also called as Net Margin Ratio It can be calculated by the following formula. Net profit Ratio = Net Profit / Sales x 100 Operating Ratio It can be calculated by the following formula. Operating Ratio = Cost of Goods sold + operating exp. Sales Note: Operating expenses includes all indirect expenses i.e. administrative selling & distribution & financial expenses. (c) Individual Ratio This individual expenses ratio can be calculating by individual expenses like

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Ratio Analysis

1) Material consumed Ratio Material consumed Ratio = material / Consumed / sales x 100 2) Direct wages Ratio Direct Wages Ratio = Direct Wages / Sales x 100 3) Factory expenses Ratio Factory Expenses Ratio = Factory exp / Sales x 100 4) Administrative expenses Ratio Administrative Expenses Ratio = Administration Expenses / Sales x 100 II. BALANCE SHEET RATIO Balance sheet ratio indicates the financial position of the company. A company is deemed to financial sound. If it is to position to carry on its business more smoothly & meet all its obligations to know a sound position o the business. The following Ratios are used 1) Current Ratio 2) Quick Ratio 3) Fixed Assets Ratio 4) proprietary Ratio

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CURRENT RATIO Current Ratio is an indication of the firm commitments to meet its short term liabilities it is expressed as follows.

Current Ratio =

Current Assets Current liabilities

(2) Quick Ratio This is ascentared by comparing the quick assets to quick liabilities. Quick Ratio = Note : 1) Quick assets includes all current assets except stock 2) Quick liabilities includes all current liabilities except Bank over draft. 3) FIXED ASSETS RATIO Fixed assets Ratio = Note : Fixed Assets Long term funds Quick Assets Quick liabilities

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1) Fixed assets includes net fixed assets trade investment etc 2) Long term funds includes share capital reserves & surplus, profit & loss account & long term loans. 4) proprietary Ratio Proprietary ratio relates to the share holders fund to total assets. This ratio shows the long term solvency of the business it is calculated by the following formula. Proprietary Ratio = Proprietary funds / Total Assets Note:
1) Propitiatory funds includes equity share capital performance share

capital, or all reserves & surplus. 2) Propitiatory assets includes fixed assets as well as current assets.

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III. COMBINATION RATIO A) Stock turnover ratio

= Cost of goods sold

Average stock Cost of goods sold = opening stock + Purchases + all direct exp closing stock Avenge stock = Opening stock + closing stock 2 B) Debtors Turnover Ratio:

= Credit Sales Average Debtors C) Creditors Turnover Ratio: = Credit Purchase Average Creditors D) Working Capital Turnover Ratio: WCTR = Cost of Sales Net working Capital E) Fixed Assets Turnover Ratio: FATR= Cost of Sales Fixed Assets

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F) Capital Turnover Ratio: CTR = Cost of Sales Capital Employed Capital Employed = Share Capital +LTC+ Reserve & Surplus. IMPORTANCE OF RATIO ANALYSIS: As a tool of financial management ratio are of crucial significance. The importance of ratio analysis lies in the fact that it present facts on a comparative basis & enables the drawing of the inferences regarding the preferences of a firm in relevant is assessing the performance of a firm is respect of the following aspects. 1. Liquidity position 2. Long term solvency 3. Operating affiancy. 4. Overall profitability. 5. Inter-firm Comparison . 6. Trend energies. LIMITATION OF RATIO ANALYSIS: Ratio analysis is widely used tool of financial analysis yet, its suffer from various limitations. The operation implication of this is that while using ratios. The conclusion should not be taken on their face value some of the limitations which characterize ratio analysis are

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DIFFICULTY IN COMPARISON: One serious limitations of ratio analysis arises out of the difficulty associated with their comparability or technique that is employed is entering firm comparison but such comparison are viated by different procedures adopted by various firm. The difference may relate.

Difference in the basis of inventory values (LIFO) last in first out (FIFO) first in first out, Average stock Different depreciation methods i.e., straight line V/S written down basis Esteemed working life of assets, particularly of plant and equipment. Amortization of intangible assets like Goodwill, patent and so on. Capitalization of lease. Treatment of extra-ordinary of income & expenditure. And so on

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SUMMARY: The focus of financial or ratio analysis is key figure in the contained financial statement and the significant relationship that exist to the investigated, by an analyst would largely depend upon his objective and purpose of evaluation short term creditors, bankers and other suppliers of short term loans are primarily interesting in judging the firm ability to pay its currently maturing obligations. This ability is reflected in the liquidity ratios of a firm conventionally, a current ratio of zil &Acid test ratio is considered fairly satisfactory between the two acid test ratio is considered to be a more test of the liquidated position of a firm.

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INTRODUCTION: We are living in dynamic world with full of complexities. Life is not a simple as it used to be proper management regarding four Ms that is money, man, material & machine is required. Finance is a life blood of business enterprises this is because in the modern money oriented economy. Finance is one of the basic foundations of all kinds of economic activities. Hence efficient management of every business and enterprise is closely linked with efficient management of finance. Meaning of Financial Analysis: The term financial analysis is also known as the analysis on the interpretation. Financial statement refers to process determining financial strength and weaknesses of the firm establishing strategic relationship between the item of the balance sheet, profit & loss account & other operative data. Definition of Financial Analysis: According to METCALF & TITARD It is a process of evaluating the between component parts of a financial statements to be obtained a better understanding of a firm position and performance.

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Types of Financial Analysis: Financial Analysis can be classified into different categories depending upon 1) The material used 2) The modulus operand 1) According to material used On the basis financial analysis can be two types. a) Internal Analysis b) External Analysis A) Internal Analysis: This analysis conducted by persons who access to the internal accounting record and are internal to the organization for the purpose of assisting the managerial personnel to take corrective measures and appropriative decision. B) External Analysis: This analysis done by outsiders who dont have access to the detailed internal accounting record of the business firm. The outsider includes potential investors, Creditors, Government agencies, credit agencies etc.

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Ratio Analysis

According To Modulus: A) Horizontal Analysis Horizontal analysis refers to comparison of financial data of a company for several years. The figure of the various year are compare with standard of base year. The analysis makes it possible to focus attention on items that have charges significantly during the period review . B) Vertical Analysis: Vertical Analysis refers to the study of relationship various items in the financial statements of one according period. The figure from financial statement of a year one compared a base selected from the same year statement. Objective of Financial Analysis: 1) The main objective this finance study the financial condition of the company 2) This financial analysis is to determine the relative strength and weakness of the company. 3) Out study of the analysis is concentrated on a set of ratios designed to highlights the key aspects of the firm operations appraise recommend the financial performance of the company. 4) Our study of the financial analysis to know ratios of the company.

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USE AND IMPORTANCE OF FINANCIAL ANALYSIS: The following are the major uses of financial statements: a) As a report of star ship. b) As a basis for fiscal policy c) As a basis for granting credit d) As a informative for prospective investors e) As an aid to Govt. Supervision f) As a basis for taxation g) To determine the legality of dividends

TOOLS AND TECHNIQUESOF FINANCIAL ANALYSIS: 1) Comparative Statement: The comparative financial statements are the statement of the financial position of different period of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at or two more periods. Any statement prepared in a compared farm will be covered in comparative statement from the practical point of view, generally, two financial statements (Balance sheet & Income statement) 2) Common measurement Analysis: CMA of balance sheet & income statement is shown in percentage. The figure is shown as percentage of that assets & liabilities & total sales.

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3) Trend Percentage Analysis: The financial statement may be analyzed by computing of service of information. This method determines the upward or downwards & involved computation of the percentage relationship that each statement items bears the information far a number of years. Generally the first years is taken as base years. The figure of the base year are taken as hundred & trend ratios far the other years are calculated on the basis of base year. 4) Fund flow Statement: The fund flow statement is a statement which shows the movement of funds & is report of financial operations. Of a business undertaking. It indicates various means by which the funds were obtain during a particular period ways in which these funds are denote working capital. This enables the management to have an idea about the sources of funds their uses far various purposes. The statement helps the management in policy 5) Cash flow statement : A statement of charges the financial position of a firm in cash basis is could cash flow statement. It summarizes the cause of charges in cash position of enterprise between the dates of two balance sheets. This statement is very much similar to fund flow statement.

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6) Ratio Analyses : This is the most important tool available of financial analyst far this work. An accounting ratio shows the relation ship in mathematical terms between two interrelated accounting figures.

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CHAPTER-IV ANALYSIS AND INTERPRETATION OF DATA 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) CURRENT RATIO QUICK RATIO DEBT EQUITY RATIO PROPREITORY RATIO NET ASSETS TURNOVER RATIO WORKING CAPITAL TURNOVER RATIO FIXED ASSETS TURNOVER RATIO TOTAL ASSETS TURNOVER RATIO NET PROFIT RATIO DEBTORS TURNOVER RATIO CREDITORS TURNOVER RATIO INVENTORY TURNOVER RATIO INVENTORY TO CURRENT ASSETS LONG TERM DEBT TO WORKING CAPITAL

RATIO 15) 16) DEBTORS TO CURRENT ASSETS RATIO DEBTORS TO NET WORKING CAPITAL
31

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17)

NET WORKING CAPITAL RATI

CHAPTER-IV

CURRENT RATIO The current ratio is the ratio of total current assets to current liabilities it is calculated by dividing current assets by current liabilities. Current Ratio = Current Assets Current Liabilities Current Assets Includes Cash and Bank balance. Marketable securities. Stock of raw material. Finished and semi finished goods. Bills receivable etc., Current Liabilities includes Creditors Bills payable Bank credit Provision for taxation. Outstanding expenses

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CURRENT RATIO ON BMM

Table 1

Years

Current Assets

Current Liabilities

Ratio

2005 2006 2007 2008

191759920 453249579 335071698 429954081

116334145 189400221 133969477 236774786

0.16 2.39 2.50 1.81

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Graph 1
25 20 15
% OF RATIO

10 5 0.16 0 2005 2006 2007 2008 2.39 2.5 1.81

Years

Interpretation
We can observe from the table the current ratio is satisfactory in 2006 & 2007 I.e.2.39 & 2.5 respectively but in 2005 & 2008 is not satisfactory because less than the ideal ratio. The ideal ratio is 2:1 current ratio is more than the ideal ratio that means the company has sufficient current assets.

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QUICK RATIO

This is also known as Acid Test Ratio the acid test ratio is a measure of liquidity designed to overcome this defect of the current ratio. It is often referred to as quick ratio because it is a measurement of a firms ability to convert its current assets quickly in to cash in order to must its current liabilities. This is a measure of quick or acid test ratio. Quick ratio: = Quick Assets Quick Liabilities

QUICK RATIO
Table No.2 Years Assets Liabilities Ratio

2005 2006 2007 2008

65116171 239502540 186186312 238893930

35

116334145 189400221 133969477 236674786

0.55 1.26 1.38 1.00

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Graph - 2

25 20
% OF RATIO

15 10 5 0.55 0

1.26

1.38

Years

Interpretation
From the table we can observe the quick ratio in 2005 is 0.55, in 2006 is 1.26, in 2007 is 1.38 & in 2008 is 1. QR is quite satisfactory I.e. quick assets are more than current liabilities

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DEBT EQUTITY RATIO: Debt includes, both long term & short term debts, whenever in the farm of debentures mart age or bills, equity includes share capital, preference share capital reserve, revenue reserve & accumulated profits. DEBT EQUITTY = DEBT Equity DEBT EQUITY RATIO IN BMM Table: 3 Years Debt Equity Ratio

2005 2006 2007 2008

183442528 625621702 102169475 305933297

203418082 897914872 945900678 652230044

0.90 0.70 0.10 0.50

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Graph 3

0.9 0.8 0.7 0.6

% OF RATIO

0.9

0.70 0.5

0.5 0.4 0.3 0.2 0.1 0 2005 2006 0.1 2007

2008

Years

Interpretation

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NET ASSETS TURNOVER RATIO

Share holders invest in assets so that revenue could be generated, this ratio is used to indicate the firms efficient in managing assets far generating revenue. They are also called activity ratio. NATR = Sales Net assets NET ASSETS TURNOVER RATIO IN BMM Table: 4 Years 2005 2006 2007 2008 Net Assets 201102221 193279295 75425775 263849358 Sales 87,980,722 524,155.716 1,301,246,577 2,189,492,725 Ratio 0.44 2.71 17.25 8.29

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Graph - 4

25 20
% OF RATIO

17.25

15 10 5 0 2.71 0.44 2005 2006 2007 2008 8.29

Years

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FIXED ASSETS TURNOVER RATIO: Fixed assets ratio is a ratio between fixed assets & sales. This ratio indicates as to what extant the fixed assets of a concern have contributed to sales. Fixed Assets Turnover Ratio= Net sales Net fixed assets FIXED ASSETS TURNOVER RATIO IN BMM Table No: 05 Net fixed Assets

Year

Sales

Ratio

2005 2006 2007 2008

87,980,722 524,155.716 1,301,246,577 2,189,492,725

120507797 540915969 578315038 827436476

0.73 0.96 2.25 2.64

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Graph 5

5 4
% OF RATIO

3 2 1 0 0.73 0.96

2.25

2.64

2005

2006

2007

2008

Years

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TOTAL ASSETS TURNOVER RATIO: TATR is relationship between total assets and sales. This ratio represents the efficiency or inefficiency in the use of total resource of assets of a concern. TATR = Total sales Total Assets
TOTAL ASSETS TURNOVER RATIO BMM

Table No: 06

Year

Total Asset

Total sales

Ratio

2005

414334969

87980722

0.21

2006

1185583540

524155716

0.44

2007

335071698

1301246577

3.88

2008

429954081

2189492725

5.09

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Graph 6

8 7 6
% OF RATIO

5.09 3.88

5 4 3 2 1 0 0.21 0.44

2005

2006

2007

2008

Years

Interpretation

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PROPRIETORY RATIO Proprietary ratio relates the share holders fund to total assets. This ratio shows long term solvency of the business. Proprietary Ratio= Share holder fundX100 Total assets Share holders fund includes, share capital, preference share capital, equity share capital, capital reserve & accumulated profits.
PROPRIETORY RATIO IN BMM

Table No: 07 Years Share holders funds Total Assets Ratio

2005

203418082

414334969

0.49

2006

897914872

1185583540

0.75

2007

945900678

335071698

2.82

2008

652230044

429954081

1.51

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Graph 7

8 7 6
% OF RATIO

5 4 3 2 1 0 0.49 0.75 2.82 1.51

2005

2006

2007

2008

Years

Interpretation

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DEBTORS TURNOVER RATIO

DTR =

SALES DEBTORS

DEBTORS TURNOVERRATIO IN BMM

Table No: 08 Years Sales Debtors Ratio

2005

87,980,722

21972302

4.00

2006

524,155.716

107538891

4.87

2007

1,301,246,577

109527719

11.88

2008

2,189,492,725

88522983

24.73

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Graph 8

25 20
% OF RATIO

24.73

15 10 4 5 0 4.87

11.88

2005

2006

2007

2008

Years

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WARKING CAPITAL TURNOVER RATIO

WCTR = Sales Net Working Capital

Table 9

Years

Net working capital

sales

Ratio

2005 2006 2007 2008

75425775 263849358 201102221 193279295

49

87,980,722 524,155.716 1,301,246,577 2,189,492,725

1.16 1.98 6.47 11.32

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Graph 9

25 20
% OF RATIO

15 10 5 0

11.32

6.47 1.98

1.16

Years

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CASH RATIO

Cash Ratio =

cash Current liabilities

Table 10

Years

Cash

Cu rrent liabilities

Ratio

2005 2006 2007 2008

6262803 52113692 3451255 47274971

116334145 189400221 133969477 236774786

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Graph 10

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DEBTORS TO CURRENT ASSETS RATIO

DTCAR =

DEBTORS CURRENT ASSETS

Table 11

Years

Current Assets

Debtors

Ratio

2005 2006 2007 2008

191759920 453249579 335071698 429954081

21972302 107538891 109527719 88522983

0.11 0.23 0.32 0.20

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Graph 11
0.5 0.4 0.3 0.2 0.1 0 0.23 0.32

% OF RATIO

0.2

0.11

2005

2006

2007

2008

Years

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INVENTORY TURNOVER RATIO

ITR =

SALES INVENTORY

INVENTORY TURNOVER RATIO IN BMM Table No:12 Years 2005 2006 2007 2008 Sale 87,980,722 524,155.716 1,301,246,577 2,189,492,725 Inventory 126643749 213747039 148885386 191160151 0.70 2.45 6.80 11.45 Ratio

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Graph 12

25 20
% OF RATIO

15 10 5 0 2.45

11.45 6.8

0.7 2005

2006

Years

2007

2008

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INVENTORY TO CURRENT ASSETS

ITCA =

INVENTORY CURRENT ASSETS

INVENTORY TO CURRENT ASSETS RATIO IN BMM Table No:12

Years

Current Assets

Inventory

Ratio

2005 2006 2007 2008

191759920 453249579 335071698 429954081

126643749 213747039 148885386 191160151

0.66 0.47 o.44 0.44

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Graph No.13

0.9 0.8 0.7

% OF RATIO

0.66

0.6 0.5 0.4 0.3 0.2 0.1 0 2005

0.47

0.44

0.44

Years

2006

2007

2008

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BALANCESHEET AS ON 31st (Amount in Rs) PARTICULARS SOURCES OF FUNDS

1.Shareholders Funds A) Share Capital B) Share Application Money C) Reserves & Surplus Profit & Loss Account Balance 2.Loan Funds Secured Loan Unsecured Loan 3.Deffered Tax Liability Net 203418082 4730382 299869728 189159523 708755349 2260701 997210641 135900672 810000000 4936358 1053006505 154455149 497774895 62552430 1020715771 13916020 7128286 1494580 205933297 27500000 50305244 470000000 50682565 50000000 50674895 50000000 50000000

2005

2006

2007

2008

TOTAL

APPLICATION OF FUNDS
(1) Fixed assets a) Gross 633924008 935746302 59 123474919 559210641

BITM, BELLARY

Ratio Analysis

Less depreciation Net block b) capital work in progress & preoperative expenditure during construction period Total 2) Current Assets, Loans & Advances a) inventory b) sundory debtors c) cash & bank balance d) deposits & advances e) other current assets Total Less current liabilities & provisions a) liabilities b) provisions Net current assets 3) Miscellaneous Expenditure

55608970 120507797 102067252

108309826 540915969 191417992

2967122 578315038 271619941

18417992 827436476 -

222575049

732333961

827436476

126643749 21972302 3451255 5495689 34196925 191759920

213747039 107538891 47274971 17208958 67479719 453249579

148885386 109527719 6262803 70395790 335071698

191160151 88552983 52113692 98157255 429954081

113194145 3140000 75425775 1868905

188761206 639051 263849358 1803105

132701957 1267250 201102221 1969305

182215748 54459038 19329295 -

Total

29986972 8

99798642 4

105300650 5

1020715771

BITM, BELLARY

60

Ratio Analysis

BITM, BELLARY

61

Ratio Analysis

BITM, BELLARY

62