Download - Arvind Mills
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BAALNCE SHEET BAALNCE SHEET as on 31as on 31stst march,2008 march,2008
2008 2007 Sources of funds
Shareholder’s fundShare capital 273.30 255.58Reserves & Surplus 1197.05 1131.45
1470.35 1387.03Loan funds
Secured loan 1774.94 1772.72Unsecured loan 97.52 161.57
1872.46 1934.29Deferred tax lib. 12.82 12.82Total 3355.63 3334.16
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2008 2007
Less: Current Lib.& Provision
Current Liabilities 360.54 408.99
Provisions 21.81 12.15
382.35 421.41
Net Current assets 1088.79 1169.77
Miscellaneous Exp. 9.50 0.00
Total 3355.63 3334.16
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RATIO RATIO ANALYSISANALYSIS
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LIQUIDITY RATIOS
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QUICK RATIO = QUICK ASSETS
CURRENT LIABILITIES
2008 = 2.34:1
2007 = 2.24:1
INTERPRETATION:
The company can pay its current liability as the ratio is 2.34:1
which is more then the ideal ratio 1:1. the increasing trend indicate that the company is performing better.
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TURNOVER RATIOSTURNOVER RATIOS CAPITAL TUROVER RATIO = NET SALES
CAPITAL EMPLOYED
2008 = 0.70
2007 = 0.56
INTERPRETATION:
As net sales are good as compare to capital employed .
The co. has utilized his capital well and getting a good retune from this . As compare to last year the ratio has increased, this shows that co. is become more efficient and utilized his fund properly.
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FIXED ASSETS TURNOVER RATIO
= NET SALES
NET FIXED ASSETS
2008 = 1.1
2007 = 0.90
INTERPRETATION:
As the ratio increases from the last year ratio it shows that there is better utilisation of fixed assets.
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PROFITABILITY RATIOSPROFITABILITY RATIOS
GROSS PROFIT RATIO = GROSS PROFIT X 100
NET SALES
2008 = 61.55%
2007 = 73%
INTERPRETATION:This ratio measures the margin of profit available on sales. As
gross profit margin is good but it has decreased from last year which shows that the profitability has decreased. This shows that the sale of company had decrease or the cost had increase but the price of the product remained same.
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NET PROFIT RATIO = NET PROFIT X 100
NET SALES
2008 = 19.14%
2007 = 23%
INTERPRETATION: As we compare to last year ratio, this year the net profit ratio
has decreased this shows that the profitability has decrease which is not good for company. There should increase year by year or it should mention the same percentage as last
year.
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RETURN ON INVESTMENT RATIO
= EBIT X 100
CAPITAL EMPLOYED
2008 = 5.15%
2007 = 5.53%
INTERPRETATION:
If the ROI increases then its good for company as more investor are willing to invest in the company but here the trend is decreasing which is not good for the company.
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RETURN ON EQUITY
= EAT X 100
EQUITY SHAREHOLDER FUNDS
2008 = 12.49%
2007 = 12.06%
INTERPRETATION:
This ratio indicate how efficiently shareholder assets are managed in the company. Here the ratio increases which attract the shareholder to invest more in the company.
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LEVERAGE RATIOSLEVERAGE RATIOS DEBT EQUITY RATIO = DEBT
EQUITY FUNDS
2008 = 1.23
2007 = 1.33
INTERPRETATION:
If the ratio is more than 2:1 then it is danger signal for long term lenders. As here it is less then 2:1 it shows it provide sufficient protection to long term lenders.
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DEBT - TOTAL FUND RATIO
= DEBT
DEBT + EQUTY
2008 = 0.55:1
2007 = 0.57:1
INTERPRETATION:Generally, Debt to total fund ratio of 0.67 :1 is considered
satisfactory. A higher ratio than this is generally treated as risky. Here it shows that the firm is more depended on equity fund not on outside loans. The lower the ratio the better it is from the long term solvency point of view.
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COMMON SIZE INCOME COMMON SIZE INCOME STATEMENTSTATEMENT
2008 2007
Amt % to sales Amt % to sales
Sales 2271.27 100.00 1847.99 100.00
Raw mat. consumed 557.13 24.50 571.93 30.90
Employees emoluments 233.40 10.27 204.33 11.05
Other 877.19 38.62 780.24 42.21
Interest 131.40 05.70 150.26 08.13
Depreciation 136.64 06.00 143.36 07.75
PBT 29.61 01.30 27.71 01.50
PBEO 27.36 01.20 25.27 01.36
Bal. as per last year’s B/S 425.00 18.71 321.17 17.37
Bal. carried to B/S 434.92 19.14 425.00 23.00
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TREND ANALYSIS
2007 2008
Sales 100 122
Raw mat. consumed 100 101
Employees emoluments 100 114
Other 100 112
Interest 100 87
Depreciation 100 95
PBT 100 106
PBEO 100 108
Bal. as per last year’s B/S 100 132
Bal. carried to B/S 100 102
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`trend analysis
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2007 2008
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PBT
profit after extraordinary item
balance carried toB/S
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THANK YOU