1

Ome Sri Vighneswaraya Namaha :

RATIO ANALYSIS

CURRENT RATIO

TABLE SHOWING CURRENT RATIO

(Rs. in Crores)
Current
Year Current Assets Current Ratio
Liabilities
2004 68512009 11681741 5.86
2005 81726403 8509937 9.60
2006 289255089 58151097 4.97
2007 265897635 50734966 5.24
2008 175355629 58833903 2.98

Current Assets
Current Ratio = -------------------------
Current Liabilities

Interpretation : It has been interpreted that the current Ratio is 5.86 in 2004, 9.60 in

2005, 4.97 in 2006, 5.24 in the year 2007 and 2.98 increased from 2004 and decreased

in 2006 and again increased in 2007 and again decreased in the year 2008.
 2

GRAPH SHOWING CURRENT RATIO

Current Ratio

9.6
10

7 5.86
5.24
6 4.97

Ratio 5

4 2.98

0
2004 2005 2006 2007 2008
Year

QUICK RATIO
 3

TABLE SHOWING QUICK RATIO

(Rs. in Crores)
Current
Year Quick Assets Quick Ratio
Liabilities
2004 42713364 11681741 3.66
2005 5664022 8509937 0.67
2006 167591633 58151097 2.88
2007 142834603 50734966 2.82
2008 44291300 58833903 0.75

Quick Assets
Quick Ratio = ------------------------
Current Liabilities

Interpretation : The Quick Ratio is high in the year 2004 i.e. 3.66 and decreased to

0.67 in 2005 and again increased to 2.88 from 0.67 and decreased to 2.82 in the year

2007 and 2008 i.e. 0.75.

GRAPH SHOWING QUICK RATIO

 4

Quick Ratio

3.5

2.5
Ratio

1.5

0.5

0
2004 2005 2006 2007 2008
Years

CASH RATIO
 5

TABLE SHOWING CASH RATIO

(Rs. in Crores)

Year Cash Current Liabilities Cash Ratio

2004 755661 11681741 0.06

2005 511293 8509937 0.06
2006 116816713 58151097 2.00
2007 60690136 50734966 1.19
2008 13403865 58833903 0.23

Cash
Cash Ratio = ------------------------
Current Liabilities

Interpretation : The Cash Ratio increases in the year 2006 from 2004 i.e. 2.00 and

again decreased in the two years of 2007 & 2008.

GRAPH SHOWING CASH RATIO

 6

Cash Ratio

1.8

1.6

1.4

1.2

Ratio 1

0.8

0.6

0.4

0.2

0
2004 2005 2006 2007 2008
Years

NEW WORKING CAPITAL RATIO

TABLE SHOWING NEW WORKING CAPITAL RATIO

 7

(Rs. in Crores)
Net Working
Year Net Assets NWC Ratio
Capital
2004 56830268 156473844 0.36
2005 73216466 201791983 0.36
2006 231103992 399914264 0.06
2007 215162669 599011327 0.36
2008 116521726 484759763 0.24

Net Working Capital

NWC = ----------------------------
Net Assets

Interpretation : It measures the percentage of total Net Working Capital Ratio is 0.36

in the year 2004, 2005 and 0.06 in the year 2006 and 0.36 in the year 2007 and 0.24 in

2008.

GRAPH SHOWING NEW WORKING CAPITAL RATIO

 8

NEW WORKING CAPITAL RATIO

0.4

0.35

0.3

0.25

RATIO 0.2

0.15

0.1

0.05

0
2004 2005 2006 2007 2008
YEAR

LEVERAGE RATIOS
 9

DEBT RATIO

TABLE SHOWING DEBT RATIO

(Rs. in Crores)
Capital
Year Total Debt Debt Ratio
Employed
2004 2064471 166451944 0.01
2005 7732530 219376632 0.04
2006 38830272 578970291 0.07
2007 48289087 460074061 0.10
2008 62958041 608112551 0.10

Total Debt
Debt Ratio = -----------------------------
Capital employed

Interpretation : It measures the percentage of total funds provided by Creditors, this

ratio is 0.01 in the year 2004 0.004 in 2005, 0.07 in 2006 and 0.10 in the year 2007 and

2008.

GRAPH SHOWING DEBT RATIO

 10

DEBT RATIO

0.1

0.09

0.08

0.07

0.06

RATIO 0.05

0.04

0.03

0.02

0.01

0
2004 2005 2006 2007 2008
YEAR

DEBT EQUITY RATIO

 11

TABLE SHOWING DEBT EQUITY RATIO

(Rs. in Crores)

Year Total Debt Net Worth Debt Equity Ratio

2004 2064471 164387473 0.01

2005 7732530 211644102 0.04
2006 38830272 540140019 0.07
2007 48289087 411784974 0.12
2008 62958041 545154510 0.12

Total Debt
Debt Equity Ratio = ------------------------
Net Worth

Interpretation : It representing debt equity ratio is 0.01 in 2004, 0.04 in 2005, 0.07 in

2006, 0.12 in 2007 & 2008.

GRAPH SHOWING DEBT EQUITY RATIO

 12

DEBT EQUITY RATIO

0.12

0.1

0.08

RATIO 0.06

0.04

0.02

0
2004 2005 2006 2007 2008
YEAR

EQUITY RATIO
 13

TABLE SHOWING EQUITY RATIO

(Rs. in Crores)
Capital
Year Total Debt Equity Ratio
employed
2004 166451944 2064471 80.63
2005 219376632 7732530 28.37
2006 578970291 38830272 14.91
2007 460074061 48289087 9.53
2008 608112551 62958041 9.66

Capital employed
Equity Ratio = ------------------------
Total Debt

Interpretation : It measures the equity ratio in 2004 is 80.63 and 28.37 in 2005 and

14.91 in 2006, 9.53 in 2007 and 9.66 in 2008.

GRAPH SHOWING EQUITY RATIO

 14

EQUITY RATIO

90

80

70

60

50
RATIO
40

30

20

10

0
2004 2005 2006 2007 2008
YEAR

TOTAL LIABILITIES RATIO

TABLE SHOWING TOTAL LIABILITIES RATIO

 15

(Rs. in Crores)
Total Liability
Year Total Liabilities Total Assets
Ratioi
2004 11681741 202121981 0.06
2005 8509937 265845183 0.03
2006 58151097 548083630 0.11
2007 50734966 782381963 0.06
2008 58833903 729666605 0.08

Current Assets +
Year Total Assets
Fixed Assets
2004 68512009 + 133609972 202121981
2005 81726403 + 184118780 265845183
2006 289255089 + 258828541 548083630
2007 265897635 + 516484328 782381963
2008 175355629 + 554310976 729666605

Total Liabilities
Total Liabilities Ratio = ------------------------
Total Assets

Interpretation : It is 0.06 in the year 2004 and 0.03 in 2005 and 0.11 in 2006 and 0.06

in 2007 and 0.08 in 2008.

GRAPH SHOWING TOTAL LIABILITIES RATIO

 16

TOTAL LIABILITIES RATIO

0.12

0.1

0.08

RATIO 0.06

0.04

0.02

0
2004 2005 2006 2007 2008
YEAR

DEBTORS TURN OVER RATIO

TABLE SHOWING DEBTORS TURN OVER RATIO

 17

(Rs. in Crores)
Debtors
Year Sales Debtors
Turnover Ratio
2004 106471177 41957703 2.54
2005 183056803 51572729 3.55
2006 260312974 50774920 5.13
2007 460009291 82144467 5.60
2008 568781973 188169503 3.02

Sales
Debtors Turnover Ratio = ------------------------
Debtors

Interpretation : Debtors turnover ratio is 2.54 in the year 2004 and 3.55 in 2005 and

5.13 in 2006 and 5.60 in the year 2007 and 3.02 in the year 2008.

GRAPH SHOWING DEBTORS TURN OVER RATIO

 18

DEBTORS TURNOVER RATIO

RATIO 3

0
2004 2005 2006 2007 2008
YEAR

COLLECTION PERIOD

TABLE SHOWING COLLECTION PERIOD

Year Debtors Turnover Average Collection Period

 19

(in days)
360
2004 2.54 ------ = 141.73
2.54
360
2005 3.55 ------ = 101.41
3.55
360
2006 5.13 ------ = 70.18
5.13
360
2007 5.60 ------ = 64.29
2.54
360
2008 3.02 ------ = 119.21
3.02

360
Collection Period = ------------------------------
Debtors Turnover Ratio

Interpretation : The average collection period is 141.73 in the year 2004 and 101.41 in the
year 2005 and 70.18 in the year 2006 and 64.29 in the year 2007 and 119.21 in the year
2008.
The average collection period gradually decrease from the year 2004 to 2007 and
again increased in the year 2008 i.e. 119.21.

GRAPH SHOWING COLLECTION PERIOD

 20

COLLECTION PERIOD

160
140
120
100
DAYS

80
60
40
20
0
2004 2005 2006 2007 2008
YEAR

DEBTORS / SALES RATIO (PERCENT)

TABLE SHOWING DEBTORS / SALES RATIO (PERCENT)

 21

(Rs. in Crores)

Year Debtors Sales Debtors/Sales %

2004 41957703 106471177 0.39 39%

2005 51572729 183056803 0.28 28%

2006 50774920 260312974 0.19 19%

2007 82144467 460009291 0.18 18%

2008 188169503 568781973 0.33 33%

Debtors /Sales Ratio (Percent %) = Debtors - Sales

Interpretation : The debtors / Sales ratio gradually decreases from the year 2004 to

2007 and again increased in the year 2008.

GRAPH SHOWING DEBTORS / SALES RATIO (PERCENT)

 22

DEBTORS/SALES RATIO

0.4

0.35

0.3

0.25

RATIO (PERCENT) 0.2

0.15

0.1

0.05

0
2004 2005 2006 2007 2008
YEAR

ASSETS TURNOVER RATIOS

 23

NET ASSETS TURN OVER RATIO :

TABLE SHOWING NET ASSETS TURNOVER RATIO

(Rs. in Crores)

SALES
Year Sales Net Assets
NAT = NA

2004 106471177 56830268 1.87

2005 183056803 73216466 2.50

2006 260312974 231103992 1.13

2007 460009291 215162669 2.14

2008 568781973 116521726 4.88

Net Assets = Current Assets – Current Liabilities

Interpretation : The Net Assets Turnover in the year 2004 is 1.87 and is increased to 2.50

in the year 2005 and then decreases to 1.13 in the year 2006 and increases to 2.14 in the

year 2007 and 4.88 in the year 2008.

GRAPH SHOWING NET ASSETS TURNOVER RATIO

 24

TOTAL ASSETS TURNOVER RATIO

4.5

3.5

NAT 2.5

1.5

0.5

0
2004 2005 2006 2007 2008
YEAR

TOTAL ASSETS TURN OVER RATIO :

TABLE SHOWING TOTAL ASSETS TURNOVER RATIO

 25

(Rs. in Crores)

SALES
Year Sales Total Assets
TAT = TA
(99643576+68512009)
2004 106471177 0.63
=168155585
(1285755171+81726403)
2005 183056803 0.87
=210301920
(168810272+289255089)
2006 260312974 0.57
=458065361
(383848658+265897635)
2007 460009291 0.71
=649746293
368238037+175355629)
2008 568781973 3.18
=179037966

Sales
Total Assets Turnover = ------------------------------
Total Assets (NFA+CA)

Interpretation : Total Assets turnover ratio in the year 2004 is 0.63 and increase to

0.87 in the year 2005 and decreased to 0.57 in the year 2006 and gradually increased in

the next two years i.e. 2007 and 2008 i.e. 0.71 and 3.18.

GRAPH SHOWING TOTAL ASSETS TURNOVER RATIO

 26

TOTAL ASSETS TURNOVER RATIO

3.5

2.5

2
RATIO

1.5

0.5

0
2004 2005 2006 2007 2008
YEAR

FIXED ASSETS TURN OVER RATIO :

TABLE SHOWING FIXED ASSETS TURNOVER RATIO

 27

(Rs. in Crores)

Fixed Assets
Year Sales Net Fixed Assets
Turnover

2004 106471177 99643576 1.07

2005 183056803 128575517 1.42

2006 260312974 168810272 1.54

2007 460009291 383848658 1.19

2008 568781973 368238037 1.54

Sales
Fixed Assets Turnover = ------------------------------
Net Fixed Assets

Interpretation : Fixed Assets turnover ratio in the year 2004 is 1.07 and 1.42 in the

year 2005, 1.54 in the year 2006 i.e. increases from 2004 to 2006 and next year 2006 it is

increased to 1.19 in the year 1.19 and again increased in the year 2008 i.e. 1.54.

GRAPH SHOWING FIXED ASSETS TURNOVER RATIO

 28

FIXED ASSETS TURNOVER RATIO

1.6

1.4

1.2

RATIO 0.8

0.6

0.4

0.2

0
2004 2005
2006 2007 2008
YEAR

CURRENT ASSETS TURN OVER RATIO :

TABLE SHOWING CURRENT ASSETS TURNOVER RATIO

 29

(Rs. in Crores)

Fixed Assets
Year Sales Net Fixed Assets
Turnover

2004 106471177 68512009 1.55

2005 183056803 81726403 2.24

2006 260312974 289255089 0.90

2007 460009291 265897635 1.73

2008 568781973 175355629 3.24

Sales
Current Assets Turnover = -----------------------
Current Assets

Interpretation : Current Assets Turnover Ratio increased from 2004 to 2005 i.e. 1.55

to 2.24 and decreased to 0.90 in the year 2006 and again increased in the year 2007 and

2008 i.e. 1.73 and 3.24.

GRAPH SHOWING CURRENT ASSETS TURNOVER RATIO

 30

CURRENT ASSETS TURNOVER

3.5

2.5

RATIO 2

1.5

0.5

0
2004 2005 2006 2007 2008

YEAR

WORKING CAPITAL TURNOVER (OR) NET CURRENT ASSETS

TURNOVER RATIO :
 31

TABLE SHOWING WORKING CAPITAL TURNOVER (OR) NET CURRENT

ASSETS RATIO

(Rs. in Crores)

Sales
Net Current
Year Sales NCATR = ----------
Assets
NCA

2004 106471177 56830268 1.87

2005 183056803 73216466 2.50

2006 260312974 231103992 1.13

2007 460009291 215162669 2.14

2008 568781973 331381578 1.72

Sales
Working Capital Turnover (Or) = ------------------------------
Net Current Assets Turnover Net Current Assets

Interpretation : Working Capital Turnover ratio in the year 2004 is 1.87 and 2.50 in

the year 2005 and 1.13 in the year 2006 and 2.14 in the year 2007 and 1.72 in the year 2008.

GRAPH SHOWING WORKING CAPITAL TURNOVER (OR) NET CURRENT

ASSETS RATIO
 32

WORKING CAPITAL TURNOVER

2.5

2
RATIO

1.5

0.5

0
2004 2005 2006 2007 2008
YEAR

PROFITABILITY RATIOS

GROSS PROFIT MARGIN

 33

TABLE SHOWING GROSS PROFIT MARGIN

(Rs. in Crores)

GP
Year Gross Profit Sales GPM = ----------
Sales

2004 38776510 106471177 0.36

2005 64687069 183056803 0.04

2006 85411764 260312974 0.33

2007 93989792 460009291 0.20

2008 87053720 568781973 0.15

Gross Profit
Gross Profit Margin = ----------------------------
Sales

Interpretation : The Gross Profit Margin in the year 2004 is 0.36 and 0.04 in the year

2005 and 0.33 in the year 2006 and 0.20 in the year 2007 and in the year 2008 it is 0.15.

GRAPH SHOWING GROSS PROFT MARGIN

 34

GROSS PROFIT MARGIN

0.4

0.35

0.3

0.25

RATIO 0.2

0.15

0.1

0.05

0
2004 2005 2006 2007 2008
YEAR

NET PROFIT MARGIN

 35

TABLE SHOWING NET PROFIT MARGIN

(Rs. in Crores)

GP
Year Profit after tax Sales GPM = ----------
Sales

2004 35968030 106471177 0.34

2005 54099269 183056803 0.30

2006 82919102 260312974 0.32

2007 83446063 460009291 0.18

2008 55329536 568781973 0.10

Profit after tax

Net Profit Margin = ------------------------------
Sales

Interpretation : Net Profit Margin ratio in the year 2004 is 0.34 and in the year 2005

is 0.30 and 0.32 in the year 2006 and in the year 2007 it is 0.18 and it is 0.10 in the year

2008.

GRAPH SHOWING NET PROFIT MARGIN

 36

NET PROFIT MARGIN

0.35

0.3

0.25

0.2
RATIO
0.15

0.1

0.05

0
2004 2005 2006 2007 2008
YEAR

MODIFIED NET PROFIT MARGIN

 37

TABLE SHOWING MODIFIED PROFT MARGIN

(Rs. in Crores)
PAT+I
Year PAT + Interest Sales NPM = ----------
Sales
35968030 + 1.87
2004 106471177 0.34
36155030
54099269 + 4.23
2005 183056803 0.30
54522269
82919102 + 42.28
2006 260312974 0.33
87147102
83446063 + 39.27
2007 460009291 0.19
87373063
55329536 + 82.30
2008 568781973 0.11
63559536

PAT + Interest
Modified Net Profit Margin = ------------------------------
Sales

Interpretation : Modified Net Profit Margin in the year 2004 is 0.34 and 0.30 in the

year 2005 and in 2006 it is 0.33 and 0.19 in the year 2007 and it is 0.11 in the year 2008.
 38

PROFIT MARGIN

0.35

0.3

0.25

0.2
RATIO
0.15

0.1

0.05

0
2004 2005 2006 2007 2008
YEAR

RETURN ON INTEREST

RETURN ON EQUITY

TABLE SHOWING RETURN ON EQUITY

 39

(Rs. in Crores)

Year Profit After Tax Net Worth ROE

2004 35968030 164387473 0.22

2005 54099269 211644102 0.26

2006 82919102 540140019 0.15

2007 82709586 203178474 0.41

2008 53987001 545154510 0.10

Profit After Taxes

Return On Equity = ------------------------------
Net Worth

Interpretation : Return On Equity in the year 2004 is 0.22 and 0.26 in the year 2005

and 0.15 in the year 2006 and it is 0.41 in the year 2007 and 2008 it is 0.10.

GRAPH SHOWING RETURN ON EQUITY

 40

RETURN ON EQUITY

0.45
0.4
0.35
0.3
RATIO

0.25
0.2
0.15
0.1
0.05
0
2004 2005 2006 2007 2008
YEAR

EARNING PER SHARE

TABLE SHOWING EARNING PER SHARE

 41

PAT
Year Profit After Tax No. of Shares EPS = ----------
No. of Shares
2004 35968030 13000000 2.77

2005 54099269 13000000 4.16

2006 82919102 18000000 4.61

2007 82709586 18000000 4.59

2008 53987001 20000000 2.16

Profit After Taxes

Earning Per Share = ------------------------------
No. of Shares

Interpretation : Earning Per Share in the year 2004 is 2.77 and 4.16 in the year 2005

and 4.61 in the year 2006 and 4.59 in the year 2007 and its is 2.16 in the year 2008.

GRAPH SHOWING EARNING PER SHARE

 42

EARNING PER SHARE

4.5

3.5

SHARES 2.5

1.5

0.5

2004 2005 2006 2007 2008

YEAR

PAY OUT RATIO

TABLE SHOWING PAY OUT RATIO

 43

Dividend Per Earning Per

Year POR
Share Share

2004 0.5 2.47 0.20

2005 0.5 4.51 0.11

2006 0.5 4.51 0.11

2007 0.5 5.94 0.84

2008 0.5 3.74 0.13

Dividend Per Share

Pay Out Ratio = ------------------------------
Earning Per Share

Interpretation : Pay Out Ratio in the year 2004 is 0.20 and 2005 and 2006 it is 0.11

and 0.84 in the year 2007 and 0.13 in the year 2008.

GRAPH SHOWING PAY OUT RATIO

 44

PAY OUR RATIO

0.9
0.8
0.7
0.6
0.5
RATIO
0.4
0.3
0.2
0.1
0
2004 2005 2006 2007 2008
YEAR

DIVIDEND YIELD
 45

TABLE SHOWING DIVIDEND YIELD RATIO

Dividend Per Market Value

Year Dividend Yield
Share Per Share

2004 0.5 144.60 0.003

2005 0.5 144.60 0.003

2006 0.5 270.43 0.002

2007 0.5 225.20 0.002

2008 0.5 646.50 0.001

Dividend Per Share

Dividend Yield = ------------------------------
Market Value Per Share

Interpretation : The Dividend Yield in 2004 is 0.03 and 0.02 in the year 2006 and

2007 and 0.001 in the year 2008.

 46

GRAPH SHOWING DIVIDEND YIELD RATIO

DIVIDEND YIELD RATIO

0.0035

0.003

0.0025

0.002
RATIO

0.0015

0.001

0.0005

0
2004 2005 2006 2007 2008
YEAR

EARNINGS YIELD
 47

TABLE SHOWING EARNINGS YIELD RATIO

Year EPS MV Earning Yield

2004 2.47 144.60 0.02

2005 4.51 144.60 0.03

2006 4.51 270.43 0.02

2007 5.94 225.20 0.03

2008 3.74 225.20 0.02

Earnings Per Share

Earning Yield = ------------------------------
Market Value Per Share

Interpretation : Earning Yield in the year 2004 is 0.02 and 0.03 in the year 2005 and

0.02 in the year 2006 and 0.03 in the year 2007 and 0.02 in the year 2008.

GRAPH SHOWING EARNINGS YIELD RATIO

 48

EARNING YIELD RATIO

0.03

0.025

0.02

RATIO 0.015

0.01

0.005

0
2004 2005 2006 2007 2008
YEAR

PRICE EARNINGS RATIO

 49

TABLE SHOWING PRICE EARNINGS RATIO

Price Earnings
Year MV EPS
Ratio

2004 144.60 2.47 58.5

2005 144.60 4.51 32.1

2006 270.43 4.51 60.0

2007 225.20 5.94 37.9

2008 225.20 3.74 60.2

Market Value Per Share

Price Earnings = ------------------------------------
Earnings Per Share

Interpretation : Price Earnings Ratio in the year 2004 is 58.5 and 32.1 in the year

2005 and 60.0 in the year 2006 and 37.9 in the year 2007 and 60.2 in the year 2008.

GRAPH SHOWING PRICE EARNINGS RATIO

 50

PRICE EARNING RATIO

70

60

50

40
RATIO

30

20

10

0
2004 2005 2006 2007 2008
YEAR

Statement of change in Net Working Capital

 51

(Rs in Crores)

2004-2005 2005-2006 2006-2007 2007-2008

Particula
rs Increas Decreas Increas Decreas Increas Decreas Increas Decreas
e e e e e e e e
Current
Assets
Sundry 3136954
9615026 - - 797809 - - 51257032
Debtors 7
Cash &
1163054 5612657
Bank - 244368
20
- -
7
- 47286271
Balance
Advance
9202107
s& 3843736 -
5
- 1399576 - 8001297 -
Deposits
Current
Liabilitie
s
Provisio
ns and 4964116
3171804 - - 7416131 - - 8098937
Advance 0
s
1663056 2083264 5043896 4018525 5612657 10664224
Total 6
244368
95 9 4 7
8001297
0
Net
Increase 1638619 1578875 1594132
- - - - 98640943
(Or) 8 26 3
Decrease
 52

NETWORKING CAPITAL

TABLE SHOWING STATEMENT OF NETWORKING CAPITAL

(Rs in Crores)

Current Assets 2004 2005 2006 2007 2008

Sundry Debtors 41957703 51572729 50774920 82144467 30887435

Cash & Bank Balance 755661 511293 116816713 60690136 13403865

Advances & Deposits 25798645 29642381 121663456 123063032 131064329

Gross Working Capital 68572009 81726403 289255089 265897635 175355629

Current Liabilities

Provisions & Advances 11681741 8509937 5815097 50734966 58833903

Net Working 56830268 73216466 231103992 215162669 116521726

Interpretation : Networking Capital has been increased in the year 2006 from 2004 i.e.

56830268 to 231103992 and it has

been decreased to 116521726 in 2008 from 2007.

GRAPH SHOWING STATEMENT OF NETWORKING CAPITAL

 53

GROSS & NETWORKING CAPITAL

350000000

300000000

250000000
Rs. in Crores

200000000

150000000

100000000

50000000

0
2004 2005 2006 2007 2008
YEAR