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Capitalization Table &

Debt Ratios
 Debt to total capital (Rs. 000)


 
 

2008 2007 2006
Total debt 2608783 1114379 1122958
Total capital 1799425 792356 832439
Debt to total capital= Total Debt/Total Capital

Comments

( This ratio shows that how much the

proportion of debt as compared to your own
capital (Long term debt + stockholders
equity). The ratio in our case almost remains
same for three years. It means that the debt
and capital has the almost same proportion
for three consecutive years
 Debt to equity ˜ 


 
 

2008 2007 2006
Total debt 2608783 1114379 1122958
Total capital 1799425 792356 832439
Debt to equity= Total debt/total equity
     
Comments

( This ratio show that how much is the

proportion of debt when compared to the
equity. This ratio is 1.50, 1.56 and 3.62%
respectively for 2006, 2007 and 2008 the
reason of more debt to equity ratio in 2008 is
because of more debt as compared to the
equity in 2008
 Fixed Charge Coverage Ratio ˜ 


 
 

2008 2007 2006
EBIT 96415 77395 125530
Fixed Charges=Interest +Debt Which Has Matured
Fixed Charges 69054 76159 74071
Fixed Charge Coverage Ratio=EBIT/Fixed Charges

Comments

( This ratio tells us that how much amount of

the EBIT is available to cover the fixed
charges. More the amount available to cover
the fixed charges better will be the position of
the company. This ratio is almost same for
three years mean the fixed charges and EBIT
showed the same level of trend for three
consecutive years
 Duopond Analysis ˜ 


 
 

2008 2007 2006
Net income 10040 -20461 48619
Equity 719948 709908 745838
Duo pond Analysis=(asset use efficiency) X (Financial
Leverage) X (Operating Leverage)
Duo pond Analysis=(Sale/Total Asset) X (Total asset/Equity) X
(Net income/Sale)
! "!!
Comments

( This analysis is obtained after using the formula

given below
Duopond Analysis = (Asset use efficiency) X (Financial
Leverage) X (Operating Leverage)
= (Sale/Total Asset) X (Total asset/Equity) X (Net
income/Sale)
( The Duopond analysis showed 7%, -3% and 1%
result in the three consecutive years, the reason of
the negative trend in 2007 is because of the negative
net income in that year. While the highest result of
7% is highest net income in 2006