Sajan's Report of FM

Prism Cement Limited
An Analytical Study Of Three Years Published Data Of

Registered office : Laxmi Niwas Apartments, Ameerpet Hyderabad - 500016 Corporate office : 'Rahejas', Main avenue, V.P.Road, Santacruz (W), Mumbai 400054
INDEX
Sr. No. 1. Company Profile

1.1 1.2 1.3 1.4 1.5 1.6 1.7
TITLE
Page No. 3
Name of the company Registered Address of the Company Brief introduction of the activities of business Status in the market Special Achievements Financial Highlights Meaning of analysis and objective of study
2.
Results of Operations
2.1 2.2 2.3 Profit of 3 years GP, NP, EBIT, EBT, EAT Meaning and importance of cash flow statement Cash flow statement
3.
Ratio Analysis
3.1 3.2 3.3 3.4 3.5 Meaning, Importance, Limitation and classification Profitability ratios Activity ratios Liquidity ratios Leverage ratios
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4. 5. 6. 7.
Accounting policies and notes Directors report Auditors Report Common Sized Statement
41 43 47 48
Chapter 1 : COMPANY PROFILE
1.1 Name of the company: y Prism Cement Limited
1.2 Registered Address of the company: y Laxmi Niwas Appartments, Ameerpet Hyderabad - 500016
1.3 Brief introduction of the activities of the business: y Prism Cement LTD. is cement manufacturing company promoted by Rajan Raheja Group. y It operates as one of the largest single kiln cement plants in the country at Satna, Madhya Pradesh, equipped with state-of-the-art machinery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in cement technology. y The company manufactures and markets Portland Pozzollana Cement (PPC) under the brand name Champion which is companys largest selling product. y This ISO 9001:2000 certified company also manufactures Ordinary Portland Cement (OPC) of different grades such as 33, 43 and 53. Prisms OPC are in demand for specialised cement concrete applications like high-rise buildings, bridges, manufacturing AC sheets, pipes, poles etc.
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1.4 Status in the Market: Prism cement ltd is having very good financial status as well as market goodwill in 2009-2010 financial year. At that time the company is having 4 out of 5 grade as per crisil analysis. The profit margin is also near to 95% increased in 2009-2010 year then the previous year but from 2010-2011 profit margin is increased just 10% which is very lower then previous year and in second quarter of 2011 company make loss of 59.09 crore. So from the above we can easily understand that company is very profitable in 2009-2010 financial year after that a flat decrease can be seen.
1.5 Special Achievements: y Prism cement ltd. was awarded with National Energy Conservation award for year 2008
1.6 Financial Highlights: Profit:

Year 2008-2009: Rs. 96.23 crores Year 2009-2010: Rs. 251.05 crores Year 2010-2011: Rs. 95.79 crores Sales: Year 2008-2009: Rs. 647.35 crores Year 2009-2010: Rs. 2837.98 crores
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Year 2010-2011: Rs. 3355.24 crores EPS: Year 2008-2009: Rs. 3.23 Year 2009-2010: Rs. 4.99 Year 2010-2011: Rs. 1.90
1.7 Meaning of analysis and objective of study: Analysis: The practice of examining information to determine what conclusions it indicates,. The information observed in analysis depends on the type of analysis being conducted. Objective of study: To know the financial situation and objectives of the company. Also to know how company makes its balance sheet, profit and loss statement, cash flow statement etc.
Chapter 2 : RESULTS OF OPERATIONS
2.1
Profit of 3 years GP, NP, EBIT, EBT, EAT:
y GP:
2008-2009: Rs. 170.14 crores 2009-2010: Rs. 497.44 crores 2010-2011: Rs. 312.25 crores y NP: 2008-2009: Rs. 96.23 crores 2009-2010: Rs. 251.05 crores 2010-2011: Rs. 95.79 crores y EBIT: 2008-2009: Rs. 155.52 crores 2009-2010: Rs. 424.28 crores 2010-2011: Rs. 230.86 crores y EBT: 2008-2009: Rs.151.98 crores 2009-2010: Rs. 375.97 crores 2010-2011: Rs. 129.70 crores
2.2
Meaning and Importance of cash flow Statement:
Meaning: A statement showing Inflow of cash and outflow of cash during the last year and as a result the balance of cash at the end of the year, is known as Cash Flow Statement.
Importance: y Excess cash found at any time may be profitably invested for time and profitability is increased. y The management can plan out payment of dividend, repayment of long term loans, purchase of machines or equipments etc. y The information regarding the trends of cash receipts and payments is useful to the management in meeting any future contingencies and also in seizing any profitable opportunity. y The historical cash flow statement prepared for last year is useful for comparing the figures of cash budgets and points of differences may be located. y By comparing the figures of cash flow statement and cash budgets, the cash planning and control becomes more effective.
2.3 CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009 2008-2009(9 months)
Rs. Crores
A. CASH FLOW FROM OPERATING ACTIVITIES: Profit before tax as per Profit and Loss Account Adjustments: Dividend income Interest income Depreciation Interest Expenses Lease rentals (Profit)/Loss on sale/discard of assets Operating Profit/(Loss) before Working Capital changes Adjustment for Working Capital changes: Inventories Trade receivables Other receivables Trade and other payables Cash generated from operations Direct taxes paid Net cash used for operating activities (A) B. CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets and additions in CWIP Proceeds from sale of fixed assets Net (investment) / redemption in mutual funds Investment in subsidiary and associate Dividend received Interest received Net Cash used for Investing activities (B) C. CASH FLOW FROM FINANCING ACTIVITIES: Interest paid Lease rentals Dividend paid including tax on dividend Net Cash from Financing Activities (C) Net increase in cash and cash equivalents during the year (A+B+C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year
Rs. Crores
151.98
(7.31) (0.41) 24.31 1.51 0.29 0.24_______
18.63_______ 170.61
13.45 3.38 (12.00) (5.76)______ (0.93)_______ 169.68 (64.82)______ 104.86______
(123.12) 0.16 195.55 (140.60) 7.31 0.36________ (60.34)______
(1.51) (0.14) (34.90)______ (36.55)______ 7.97 12.89 20.86
(Note: Here cash flow statement is given for only 9 months)

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CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2010 2009-2010
Rs. Crores
A. CASH FLOW FROM OPERATING ACTIVITIES: Profit before tax as per Profit and Loss Account Adjustments: Depreciation and amortisation Exchange loss on sale of preference shares Dividend income Income from Joint Ventures Dividend Interest income Interest paid Lease rentals Loss on assets written-off (Profit)/Loss on sale/discard of assets Operating Profit/(Loss) before Working Capital changes Adjustment for Working Capital changes: Inventories Trade receivables Other receivables Trade and other payables Cash generated from operations Direct taxes paid Net cash used for operating activities (A) B. CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets and additions in CWIP Proceeds from sale of fixed assets Sales proceeds from investments Purchase of investments Dividend income Income from Joint Ventures - Dividend Dividend on own shares held through trust Interest income Net Cash used for Investing activities (B) C. CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from secured loans Repayment of secured loans Proceeds from unsecured loans
Rs. Crores
358.25
89.85 (8.62) (2.85) (8.60) (3.00) 48.31 0.33 (0.78)
. 114.64 472.89
(41.77) (47.38) (1.77) 112.86_____
21.94_______ 494.83 (127.49)_____ 367.34______
(603.41) 3.64 375.70 (348.79) 2.85 8.60 1.85 3.00_______ (556.56)_____
459.82 (98.28) 38.41
Rs.Crores Rs. Crores

Repayment of unsecured loans Redemption of preference shares Interest paid Lease rentals Dividend paid including tax on dividend Net Cash from Financing Activities (C) Net increase in cash and cash equivalents during the year (A+B+C) Cash and cash equivalents acquired upon amalgamation Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Details of cash and cash equivalents: Balance as per Schedule G Less: Deposits under lien Balance (4.24) (10.75) (48.31) (141.02)_______ 195.63________
6.41 25.01 20.86 52.28 52.50 0.22__________ 52.28_________
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CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2011 2010-2011
Rs. Crores
A. CASH FLOW FROM OPERATING ACTIVITIES: Profit before tax as per Profit and Loss Account Adjustments: Depreciation and amortisation Exchange loss on sale of preference shares Dividend income Income from Joint Ventures Dividend Interest income Interest paid Loss on exchange fluctuation on loans Loss on assets written-off (Profit)/Loss on sale/discard of assets Operating Profit/(Loss) before Working Capital changes Adjustment for Working Capital changes: Inventories Trade receivables Other receivables Trade and other payables Cash generated from operations Direct taxes paid Net cash used for operating activities (A) B. CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets and additions in CWIP Proceeds from sale of fixed assets Sales proceeds from investments Purchase of investments Dividend income Income from Joint Ventures - Dividend Dividend on own shares held through trust Interest income Net Cash used for Investing activities (B) C. CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from secured loans Repayment of secured loans Proceeds from unsecured loans
Rs. Crores
130.66
113.30 (3.01) (8.38) (1.58) 93.28 3.43 (4.26)
. 192.78 323.44
(97.05) (53.54) (134.38) 244.80_____
(40.17)_____ 283.27 (29.51)_____ 253.76______
(429.92) 8.92 (477.01) 448.04 3.01 8.38 1.24 1.58_______ (435.76)
423.89 (245.04) 200.00
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Rs.Crores Rs. Crores

Repayment of unsecured loans Redemption of preference shares Interest paid Dividend paid including tax on dividend Net Cash from Financing Activities (C) Net increase in cash and cash equivalents during the year (A+B+C) Cash and cash equivalents acquired upon amalgamation Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Details of cash and cash equivalents: Balance as per Schedule G Less: Deposits under lien Balance (14.00) (116.53) (58.70)_______ 189.62
7.62 52.28 59.90 60.00 0.10__________ 59.90_________
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Chapter 3 : RATIO ANALYSIS
3.1 Meaning, Importance, Limitations and classification of Ratio Analysis: Meaning: If relationship between various related items in these financial statements are established, they can provide useful clue to gauge accurately the financial health and ability of business to make profit. This relationship between the two related items of financial statement is known as ratio analysis.
Importance:
a) On the basis of profitability ratios, investors get an idea about the overall efficiency of business, the management gets an idea about the efficiency of managers and bank as well as other creditors draw useful conclusions about repaying capacity of the borrowers. b) Banks and other lenders will be able to conclude from liquidity ratios whether the firm will be able to pay regularly the interest and loan instalments. c) All turnover ratios related to sales present a good picture of the success or otherwise of the business. d) With the help of ratio inter-firm comparison becomes possible, which shows the strength and weakness of the firm as compared to other firms and will indicate corrective measures.
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e) The efficiency of various departments can be judged on the basis of their profitability ratios and efficiency of each department can thus be determined.
Limitations: a) The utility of ratios computed from the financial statements of one year only is obviously limited. b) While comparing ratios of different firms, it must be remembered that different firms accountancy plans and policies. c) While comparing ratios of past several years, it should be remembered that changes in price level may render such comparison useless. d) One ratio used without reference to other ratios may be misleading. e) There is practically no standard ratio against which the actual performance can be compared. f) The accounting ratios can never be more correct than the information from which they are computed.
Classification:
a) Traditional classification: The ratios are grouped into basis of the financial statement from which the figures are taken for computing the ratios. The ratios according to the classification are:
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i.
ii.
iii.
Revenue statement ratios: These are the ratios computed on the basis of items taken from revenue statement i.e. Profit and Loss account. Balance sheet ratios: When two items or groups of items appearing in the balance sheet are compared, the ratio so obtained is a balance sheet ratio. Composite ratios: A ratio showing the relationship between one item taken from balance sheet and another taken from Profit and Loss account is a composite ratio.
b) Functional classification: Ratios are also grouped in accordance with certain tests on this basis there are four categories of ratios.
i.
Liquidity ratio: These ratios indicate the position of liquidity. They are computed to ascertain whether the company is capable of meeting its short-term obligation from its short term resources. y Current ratio. y Liquid ratio. y Acid test ratio.
ii.
Profitability ratio: A number of ratios are designed to indicate the profitability of the business and are grouped into the category of profitability ratios: y y y y y y y y Gross profit ratio. Net profit ratio. Operating ratio. Return on total assets. Return on capital Employed. Return on equity share capital. Earning per share. Dividend per share.
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y Dividend pay-out ratio.
iii.
Leverage ratio: The composition of capital of business and the proportion of owners capital and capital provided by outsiders are reflected by leverage ratios: y y y y y Proprietary ratio Debt Equity ratio. Gearing ratio. Fixed capital ratio. Coverage ratio.
iv.
Activity ratios: These are the ratios showing the effectiveness with which the resources of the business are employed. It signifies the efficiency of the management. y y y y y Stock turnover. Debtors ratio. Current asset turnover. Fixed assets turnover. Total assets turnover.
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3.2
Profitability Ratios:
3.2.1. Gross Profit Ratio: It is the basic measure of profitability of business. It expresses relationship between oss rofit earned to net sales. It is also known as gross margin.
Gross profit Ratio = G.P./Sales*100
y G.P. ratio for 2008-2009 = 170.14/647.35*100 = 26.28 y G.P. ratio for 2009-2010 = 497.44/2837.98*100 = 17.53 y G.P. ratio for 2010-2011= 312.25/3355.24*100 = 9.31 2008-2009 170.14 647.35 26.28 2009-2010 497.44 2837.98 17.53 2010-2011 312.25 3355.24 9.31
G.P. (rs) Sales (rs) G.P. ratio
INTERPRETATION: Gross profit ratio has been constantly declining as we can see in the above table. In year 2009-2010 G.P. ratio has decreased to 33.3% as compared to year 20082009. In the year 2010-2011 G.P. ratio has decreased 64.57% as compared to year 2008-2009 and 46.89% as compared to year 2009-2010 respectively.
3.2.2. Net Profit Ratio: The net profit is obtained after charging operating expenses, interest, depreciation and taxes to the gross profit..It expresses relationship between net profit earned to net sales.
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Net Profit ratio = N.P./Sales*100
y N.P. ratio for year 2008-2009 = 96.23/647.35*100 = 14.87 y N.P. ratio for year 2009-2010 = 251.05/2837.98*100 = 8.85 y N.P. ratio for year 2010-2011 = 95.79/3355.24*100 = 2.85
N.P. (rs) Sales (rs) N.P. ratio
2008-2009 96.23 647.35 14.87
2009-2010 251.05 2837.98 8.85
2010-2011 95.79 3355.24 2.85
INTERPRETATION: Net profit ratio has been constantly declining as we can see in the above table. In year 2009-2010 N.P. ratio has decreased to 40.48% as compared to year 20082009. In the year 2010-2011 N.P. ratio has decreased 80.83% as compared to year 2008-2009 and 67.8% as compared to year 2009-2010 respectively.
3.2.3. Expense ratio: For the purpose of ascertaining relationship between operating expenses and net sales, expense ratios are computed.
Expense ratio = Expense/Sales*100
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y Expense ratio for year 2008-2009 = 505.06/647.35*100 = 78.02 y Expense ratio for year 2009-2001 = 2482.91/2837.98*100 = 87.49 y Expense ratio for year 2010-2011 = 3262.02/3355.24*100 = 97.22
2008-2009 Expense (rs) 505.06 Sales (rs) 647.35 Expense ratio 78.02
2009-2010 2482.91 2837.98 87.49
2010-2011 3262.02 3355.24 97.22
INTERPRETATION: Here we can see that expense ratio is increasing from year to year. Hence we can say dat expenses of the company are increasing as compared to sales. In year 20092010 Expense ratio has increased to 10.82% as compared to year 2008-2009. In the year 2010-2011 Expense ratio has increased 19.75% as compared to year 2008-2009 and 10.01% as compared to year 2009-2010 respectively. 3.2.4. Operating ratio: It is a ratio that shows relationship between cost of goods sold plus operating expenses to sales.
Operating ratio = (Cost of Sales + Operating Expense)/Net Sales*100
y Operating ratio for year 2008-2009 = 477.21/647.35*100 = 73.72 y Operating ratio for year 2009-2010 = 2340.54/2837.98*100 = 82.47
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y Operating ratio for year 2010-2011 = 3042.99/3355.24*100 = 90.69
Operating Expense (rs) Sales (rs) Operating ratio
2008-2009 477.21 647.35 73.72
2009-2010 2340.54 2837.98 82.47
2010-2011 3042.99 3355.24 90.69
INTERPRETATION: From the above table we can see that operating ratio has been increasing year by year. In year 20092010 Operating ratio has increased to 10.61% as compared to year 2008-2009. In the year 2010-2011 Operating ratio has increased 18.71% as compared to year 2008-2009 and 9.06% as compared to year 2009-2010 respectively. Hence we can say that cost of sales and operating expenses of the company is increasing compared to previous years. 3.2.5. Capital Employed: The concept of capital employed means the long term funds employed in business supplied by the creditors and owners both.
Capital Employed = EBIT/Capital Employed*100
y Capital Employed for year 2008-2009 = 151.98/661.65*100 = 22.97 y Capital Employed for year 2009-2010 = 377.12/1970.97*100 = 19.13 y Capital Employed for year 2010-2011 = 129.70/2377.67*100 = 5.45
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EBIT (rs) Capital Employed(rs) Capital Employed
2008-2009 151.98 661.65 22.97
2009-2010 377.12 1970.97 19.13
2010-2011 129.70 2377.67 5.45
INTERPRETATION: In the above table we can see that the rate of capital employed is decreasing every year. In year 2009-2010 rate of Capital Employed has decreased 16.72% as compared to year 2008-2009. In the year 2010-2011 rate of Capital Employed has decreased 76.27% as compared to year 20082009 and 71.51% as compared to year 2009-2010 respectively.
3.2.6. Return on shareholders fund: Shareholders equity is the total funds belonging to shareholders. It includes paid up equity share capital , preference share capital, Reserves and surplus etc.
Return on shareholders fund = Net profit/Shareholders fund *100
y Return on shareholders fund for year 2008-2009 = 96.23/661.65*100 = 14.54 y Return on shareholders fund for year 2009-2010 = 251.05/1169.5*100 = 21.47 y Return on shareholders fund for year 2010-2011 = 95.79/1207.83*100 = 7.93
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Net profit (rs) Shareholders fund(rs) Return on shareholders fund
2008-2009 96.23 661.65 14.54
2009-2010 251.05 1169.5 21.47
2010-2011 95.79 1207.83 7.93
INTERPRETATION: In the above table we can see that Return on shareholders fund has been fluctuating. In year 2009-2010 Return on shareholders fund has increased 32.28% as compared to year 2008-2009. In the year 2010-2011 Return on shareholders fund has decreased 45.46% as compared to year 2008-2009 and 63.06% as compared to year 2009-2010 respectively.
3.2.7. Return on Equity share capital: It indicates profitability of a firm from the viewpoint of real owners who are ordinary shareholders, who bear all risks of business.
Return on Equity share capital = PAT-Preference Dividend/ Equity share capital*100
y Return on Equity share capital for year 2008-2009 = 96.23/298.25*100 = 32.26 y Return on Equity share capital for year 2008-2009 = 251.05/503.36*100 = 49.87 y Return on Equity share capital for year 2008-2009 = 34.52/503.36*100 = 6.85
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2008-2009 PAT (rs) 96.23 Equity Capital(rs) 298.25 Return on Equity share 32.26 capital
2009-2010 251.05 503.36 49.87
2010-2011 34.52 503.36 6.85
INTERPRETATION: In the above table we can see that Return on Equity share capital has been fluctuating. In year 2009-2010 Return on Equity share capital has increased 35.31% as compared to year 2008-2009. In the year 2010-2011 Return on Equity share capital has decreased 78.77% as compared to year 2008-2009 and 86.26% as compared to year 2009-2010 respectively. 3.2.8. Return on Equity shareholders fund: This ratio shows the profit available to only equity shareholders in relation to capital invested by them.
Return on Equity shareholders fund = PAT-Preference Dividend /Equity share fund*100
y Return on Equity shareholders fund for year 2008-2009 = 96.23/66.65*100 = 14.54 y Return on Equity shareholders fund for year 2009-2010 = 251.05/1169.5*100 = 21.46 y Return on Equity shareholders fund for year 2010-2011 = 34.52/1207.83*100 = 2.86
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PAT (rs) Equity share fund(rs) Return on Equity shareholders fund
2008-2009 96.23 661.65 14.54
2009-2010 251.05 1169.5 21.46
2010-2011 34.52 1207.83 2.86
INTERPRETATION: In the above table we can see that Return on Equity shareholders fund has been fluctuating. In year 20092010 Return on Equity shareholders fund has increased 32.25% as compared to year 2008-2009. In the year 2010-2011 Return on Equity shareholders fund has decreased 80.28% as compared to year 2008-2009 and 86.67% as compared to year 2009-2010 respectively. 3.2.9. Earnings per share: This ratio measures the profit available to equity shareholders on per share basis.
Earnings per share = PAT-Preference dividend/No. Of Equity shares
y E.P.S. for year 2008-2009 = 96.23-0/298250000 = 3.23 y E.P.S. for year 2009-2010 = 251.05-0.08/503356580 = 4.99 y E.P.S. for year 2010-2011 = 95.79-0/503356580 = 1.9
2008-2009 PAT (rs) 962300000 Preference dividend(rs) 0 No. Of shares 298250000 Earnings per share 3.23
2009-2010 2510500000 800000 503356580 4.99
2010-2011 957900000 0 503356580 1.9
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INTERPRETATION: In the above table we can see that Earnings per share is fluctuating. In year 2009-2010 Earnings Per Share has increased 35.27% as compared to year 2008-2009. In the year 2010-2011 Earnings per share has decreased 41.18% as compared to year 2008-2009 and has increased 61.92% as compared to year 2009-2010. 3.2.10. Dividend per share: Dividend per share is the amount of actual dividend paid to equity shareholders divided by the no. Of equity shares outstanding.
Dividend per share = Total dividend declared/No. Of shares
y D.P.S for year 2008-2009 = 549000000/298250000 = 1.84 y D.P.S for year 2009-2010 = 416000000/503356580 = 0.83 y D.P.S for year 2010-2011 = 587000000/503356580 = 1.17 2008-2009 2009-2010 549000000 416000000 298250000 503356580 1.84 0.83 2010-2011 587000000 503356580 1.17
Total Dividend declared (rs) No. Of shares Dividend per share
INTERPRETATION: In the above table we can see that Dividend per share is fluctuating. In year 2009-2010 Dividend Per Share has decreased 54.89% as compared to year 20082009. In the year 2010-2011 Dividend per share has decreased 36.41 % as compared to year 2008-2009 and has increased 29.06% as compared to year 2009-2010.
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3.2.11. Price Earning Ratio: It shows the relation between the market price of the share and EPS.
Price earning ratio = Market value per share/Earning per share
y PER for year 2008-2009 = 28.2/1.9 = 14.84 y PER for year 2009-2010 = 41.6/4.99 = 8.34 y PER for year 2010-2011 = 54.9/3.23 = 17
Market value per share(rs) E.P.S Price earning ratio
2008-2009 2009-2010 28.2 41.6 1.9 14.84 4.99 8.34
2010-2011 54.9 3.23 17
INTERPRETATION: In the above table we can see that price earning ratio is fluctuating. In year 2009-2010 price earning ratio has decreased 43.8% as compared to year 2008-2009. In the year 2010-2011price earning ratio has increased 12.71 % as compared to year 2008-2009 and has increased 50.94% as compared to year 2009-2010.
3.2.12. Dividend Yield Ratio: The Dividend yield is the percentage of dividend actually received to the market value per equity share.
Dividend yield ratio = Dividend per share/Market value per share

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y DYR for year 2008-2009 = 1.17/28.2 = 0.04 y DYR for year 2008-2009 = 0.83/41.6 = 0.02 y DYR for year 2008-2009 = 1.84/54.9 = 0.03
Dividend per share Market value per share(rs) Dividend yield ratio
2008-2009 2009-2010 1.17 0.83 28.2 41.6 0.04 0.02
2010-2011 1.84 54.9 0.03
INTERPRETATION: In the above table we can see that Dividend yield ratio is fluctuating. In year 2009-2010 Dividend yield ratio has decreased 50% as compared to year 2008-2009. In the year 2010-2011 Dividend yield ratio has increased 25 % as compared to year 2008-2009 and has increased 33.33% as compared to year 2009-2010.
3.3
Activity/Turnover ratio:
3.3.1. Fixed asset turnover ratio: To ascertain the efficiency and profitability of the business, the total fixed assets are compared to sales.
Fixed Assets turnover ratio = Sales/Fixed Assets
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y Fixed assets turnover ratio for year 2008-2009 = 647.35/705.67 = 0.92 y Fixed assets turnover ratio for year 2009-2010 = 2837.98/1939.03 = 1.46 y Fixed assets turnover ratio for year 2010-2011 = 3355.24/2298.53 = 1.46
Sales (Rs) Fixed Assets (Rs) Fixed Assets turnover ratio
2008-2009 647.35 705.67 0.92
2009-2010 2837.98 1939.03 1.46
2010-2011 3355.24 2298.53 1.46
INTERPRETATION: In the above table we can see that Fixed Assets turnover ratio firstly increased den remained same in the year 2010-2011. In year 2009-2010 Fixed Assets turnover ratio has increased 36.99% as compared to year 2008-2009. In the year 2010-2011 Fixed Assets turnover ratio has increased 36.99 % as compared to year 2008-2009 and has remained same as compared to year 2009-2010.
3.3.2. Debtors ratio: The ratio shows the no. Of days taken to collect the dues of credit sales.
Debtors ratio = Debtors+B/R/Average daily sales * no. Of working days
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y Debtors ratio for year 2008-2009 = Information not available. y Debtors ratio for year 2009-2010 = 211.08/2837.98*365 = 27.14 days y Debtors ratio for year 2010-2011 = 264.62/3355.24*365 = 28.79 days
Debtors (rs) Sales (Rs) Debtors ratio
2008-2009 647.35 -
2009-2010 211.08 2837.98 27.14
2010-2011 264.62 3355.24 28.79
INTERPRETATION: In the above table we can see that debtors ratio of the year 2010-2011 has increased in comparison to 2009-2010. In year 2010-2011 debtors ratio has increased 5.73% as compared to 2009-2010.
3.3.3. Debtors Turnover ratio: The debtors turnover suggests the no. Of times the amount of credit sales is collected during the year.
Debtors turnover ratio = Credit Sales/Average Debtors
y Debtors turnover ratio for year 2008-2009 = Information not available. y Debtors turnover ratio for year 2009-2010 = 2837.98/211.08 = 13.45 y Debtors turnover ratio for year 2010-2011 = 3355.24/237.85 = 14.11
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Credit sales (rs) Average debtors (Rs) Debtors turnover ratio
2008-2009 -
2009-2010 2837.98 211.08 13.45
2010-2011 3355.24 237.85 14.11
INTERPRETATION: In the above table we can see that debtors turnover ratio of the year 2010-2011 has increased in comparison to 2009-2010. In year 2010-2011 debtors turnover ratio has increased 4.68% as compared to 2009-2010.
3.3.4. Creditors ratio: The no. Of days within which we make payment to our creditors for credit purchases is obtained from creditors velocity.
Creditors Ratio = Creditors+B/P/Credit purchase*365
y Creditors ratio for year 2008-2009 = 35.11/479.29*365 = 26.74 y Creditors ratio for year 2009-2010 = 293.60/2265.62*365 = 47.30 y Creditors ratio for year 2010-2011 = 444.09/3042.51*365= 53.28
Creditors (R.s.) Credit Purchase(Rs) Creditors ratio
2008-2009 35.11 479.29 26.74
2009-2010 293.6 2265.62 47.3
2010-2011 444.09 3042.51 53.28
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INTERPRETATION: In the above table we can see that creditors ratio is increasing constantly. In year 2009-2010 Creditors ratio has increased 43.47% as compared to year 20082009. In the year 2010-2011 Creditors ratio has increased 49.81 % as compared to year 2008-2009 and has increased 11.22% as compared to year 2009-2010. Hence we can say that debts of the company has increased.
3.3.5. Creditors turnover ratio: The creditors ratio suggests the no. Of times the amount of credit purchase is done during the year.
Creditors Turnover ratio = Credit purchase/Average Creditors
y Creditors turnover ratio for year 2008-2009 = 479.29/35.11 = 13.65 y Creditors turnover ratio for year 2009-2010 = 2265.62/293.6 = 7.72 y Creditors turnover ratio for year 2010-2011 = 3042.51/444.09 = 6.85
Credit purchase (rs) Average creditors (rs) Creditors turnover ratio
2008-2009 479.29 35.11 13.65
2009-2010 2265.62 293.6 7.72
2010-2011 3042.51 444.09 6.85
INTERPRETATION: In the above table we can see that creditors turnover ratio is decreasing constantly. In year 200931
2010 Creditors turnover ratio has decreased 43.44% as compared to year 2008-2009. In the year 2010-2011 Creditors turnover ratio has decreased 49.82 % as compared to year 20082009 and 11.27% as compared to year 2009-2010 respectively.
3.3.6. Stock turnover ratio: It shows the no. Of times the average stock is turned over during the year.
Stock turnover ratio = Cost of sales/Average stock
y Stock turnover ratio for year 2008-2009 = 477.21/2.96 = 161.21 y Stock turnover ratio for year 2009-2010 = 2340.54/39.38 = 59.43 y Stock turnover ratio for year 2010-2011 = 3042.99/77.08 = 39.47
Cost of sales (rs) Average stock (rs) Stock turnover ratio
2008-2009 477.21 2.96 161.21
2009-2010 2340.54 39.38 59.43
2010-2011 3042.99 77.08 39.47
INTERPRETATION: In the above table we can see that stock turnover ratio is decreasing constantly. In year 2009-2010 stock turnover ratio has decreased 63.13% as compared to year 20082009. In the year 2010-2011 stock turnover ratio has decreased 75.52 % as compared to year 2008-2009 and 33.59% as compared to year 2009-2010 respectively.
32
3.3.7. Working capital turnover: A measurement comparing the depletion of working capital to the generation of sales over a given period.
Working capital turnover = Sales/Net working capital
y Working capital turnover for year 2008-2009 = 647.35/58.84 = 11 y Working capital turnover for year 2009-2010 = 2837.98/186.62 = 15.2 y Working capital turnover for year 2010-2011 = 3355.24/266.94 = 12.56 2008-2009 Sales (rs) 647.35 Net working capital (rs) 58.84 Working capital 11 turnover 2009-2010 2837.98 186.62 15.2 2010-2011 3355.24 266.94 12.56
INTERPRETATION: In the above table we can see that Working capital turnover ratio is fluctuating. In year 2009-2010 Working capital turnover ratio has increased 27.63% as compared to year 2008-2009. In the year 2010-2011 Working capital turnover ratio has increased 12.42 % as compared to year 2008-2009 and has decreased 17.37% as compared to year 2009-2010.
33
3.3.8. Book Value per share: A financial measure that represents a per share assessment of the minimum value of a company's equity is known as book value per share.
Book value per share = Proprietors fund/No. Of share
y BVPS for year 2008-2009 = 661.65/298250000 = 22.18 y BVPS for year 2009-2010 = 1169.5/503356580 = 23.23 y BVPS for year 2010-2011 = 1207.83/503356580 = 23.99
2008-2009 Proprietors fund (rs) 6616500000 No. Of shares 29825000 Book Value per 22.18 share
2009-2010 11695000000 503356580 23.23
2010-2011 12078300000 503356580 23.99
INTERPRETATION: In the above table we can see that Book Value per share is increasing. In year 2009-2010 Book Value per share has increased 4.52% as compared to year 2008-2009. In the year 2010-2011 Book Value per share has increased 7.54 % as compared to year 2008-2009 and has increased 3.17% as compared to year 2009-2010.
34
3.4
Liquidity ratios:
3.4.1. Current ratio: This ratio shows the proportion of current assets to current liabilities.
Current ratio = Current Assets/Current Liabilities
y Current ratio for year 2008-2009 = 168.66/109.82 = 1.535 y Current ratio for year 2009-2010 = 683.53/496.91 = 1.375 y Current ratio for year 2010-2011 = 971.61/704.67 = 1.378
Current Assets (rs) Current Liabilities (rs) Current ratio
2008-2009 168.66 109.82 1.535
2009-2010 683.53 496.91 1.375
2010-2011 971.61 704.67 1.378
INTERPRETATION: In the above table we can see that Current ratio is fluctuating very minorly. In year 2009-2010 Current ratio has decreased 10.42% as compared to year 2008-2009. In the year 2010-2011 Current ratio has decreased 10.23 % as compared to year 2008-2009 and has increased 0.22% as compared to year 2009-2010.
3.4.2. Liquid ratio: It is variant of current which is designed to show the amount of funds to meet immediate payments.
35
Liquid ratio = Liquid assets/Liquid liability
y Liquid ratio for year 2008-2009 = 91.76/109.82 = 0.83 y Liquid ratio for year 2009-2010 = 409.29/496.91 = 0.82 y Liquid ratio for year 2010-2011 = 706.99/704.67 = 1.003
Liquid Assets (rs) Liquid Liabilities (rs) Liquid ratio
2008-2009 91.76 109.82 0.83
2009-2010 409.29 496.91 0.82
2010-2011 706.99 704.67 1.003
INTERPRETATION: In the above table we can see that Liquid ratio is fluctuating. In year 2009-2010 Liquid ratio has decreased 1.2% as compared to year 2008-2009. In the year 2010-2011 Liquid ratio has decreased 17.25% as compared to year 2008-2009 and has increased 18.25% as compared to year 2009-2010.
3.4.3. Acid test ratio: A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.
Acid test ratio = Quick assets/liquid liabilities
y Acid test ratio for year 2008-2009 = 91.76/109.82 = 0.83 y Acid test ratio for year 2009-2010 = 409.29/496.91 = 0.82 y Acid test ratio for year 2010-2011 = 706.99/704.67 = 1.003
36
Quick Assets (rs) Liquid Liabilities (rs) Acid test/quick ratio
2008-2009 91.76 109.82 0.83
2009-2010 409.29 496.91 0.82
2010-2011 706.99 704.67 1.003
3.5
Leverage ratios:
3.5.1. Current ratio: This ratio shows the proportion of current assets to current liabilities.
Current ratio = Current Assets/Current Liabilities
y Current ratio for year 2008-2009 = 168.66/109.82 = 1.535 y Current ratio for year 2009-2010 = 683.53/496.91 = 1.375 y Current ratio for year 2010-2011 = 971.61/704.67 = 1.378
37
Current Assets (rs) Current Liabilities (rs) Current ratio
2008-2009 168.66 109.82 1.535
2009-2010 683.53 496.91 1.375
2010-2011 971.61 704.67 1.378
INTERPRETATION: In the above table we can see that Current ratio is fluctuating very minorly. In year 2009-2010 Current ratio has decreased 10.42% as compared to year 2008-2009. In the year 2010-2011 Current ratio has decreased 10.23 % as compared to year 2008-2009 and has increased 0.22% as compared to year 2009-2010.
3.5.2. Liquid ratio: It is variant of current which is designed to show the amount of funds to meet immediate payments.
Liquid ratio = Liquid assets/Liquid liability
y Liquid ratio for year 2008-2009 = 91.76/109.82 = 0.83 y Liquid ratio for year 2009-2010 = 409.29/496.91 = 0.82 y Liquid ratio for year 2010-2011 = 706.99/704.67 = 1.003
Liquid Assets (rs) Liquid Liabilities (rs) Liquid ratio
2008-2009 91.76 109.82 0.83
2009-2010 409.29 496.91 0.82
2010-2011 706.99 704.67 1.003
INTERPRETATION: In the above table we can see that Liquid ratio is fluctuating. In year 2009-2010 Liquid ratio has
38
decreased 1.2% as compared to year 2008-2009. In the year 2010-2011 Liquid ratio has decreased 17.25% as compared to year 2008-2009 and has increased 18.25% as compared to year 2009-2010.
3.5.3. Acid test ratio: A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.
Acid test ratio = Quick assets/liquid liabilities
y Acid test ratio for year 2008-2009 = 91.76/109.82 = 0.83 y Acid test ratio for year 2009-2010 = 409.29/496.91 = 0.82 y Acid test ratio for year 2010-2011 = 706.99/704.67 = 1.003 2008-2009 91.76 109.82 0.83 2009-2010 409.29 496.91 0.82 2010-2011 706.99 704.67 1.003
Quick Assets (rs) Liquid Liabilities (rs) Acid test/quick ratio
39
3.5.4. Long term funds to fixed assets: This ratio shows the relationship between fixed capital and fixed assets.
Long term funds to fixed assets = Capital employed/Net fixed assets
y Long term funds to fixed assets for year 2008-2009 = 661.65/392.70 = 1.68 y Long term funds to fixed assets for year 2009-2010 = 1970.97/991.13 = 1.98 y Long term funds to fixed assets for year 2010-2011 = 2377.67/1886.78 = 1.26
Capital Employed(rs) Net fixed assets (rs) Long term funds to fixed assets
2008-2009 661.65 392.70 1.68
2009-2010 1970.97 991.13 1.98
2010-2011 2377.67 1886.78 1.26
INTERPRETATION: In the above table we can see that Long term funds to assets ratio is fluctuating. In year 2009-2010 Long term funds to assets ratio has increased 15.15% as compared to year 2008-2009. In the year 2010-2011 Long term funds to assets ratio has decreased 25% as compared to year 2008-2009 and has increased 36.36% as compared to year 2009-2010.
40
Chapter 4: Accounting Policies and standards
Notes of Accounts: 1. Exceptional items shown in the Profit and Loss Account comprises of gain of Rs. 4.36 Crores on sales of land and building, loss of Rs. 1.35 Crores on redemption of mutual fund investments and loss of Rs. 2.05 Crores on redemption of investments in preference shares (Previous year : exceptional items comprises of amalgamation expenses of Rs. 10.25 Crores and exchange loss of Rs. 8.62 Crores on redemption of investments in preference shares.) 2. The group has investment in Norcros Plc to the extent of 9.92% of the equity capital. As per the management of the Company it doesnt have significant influence over Norcros Plc due to professional management structure and intention for which the investment has been made. Further, the group has no material transactions with Norcros Plc. In view of this, Norcros Plc is not considered as an Associate and accordingly, accounting of the same is carried out as per Accounting Standard - 13 in Accounting for Investments as notified under the Companies (Accounting Standards) Rules, 2006. 3. The Depreciation is being provided for on straight line method at the rates provided in schedule XIV to the Companies Act, 1956 except for H. & R. Johnson (India) TBK Ltd., including Joint Ventures of H. & R. Johnson (India) TBK Ltd., Sentini Ceramica Private Ltd. and Milano Bathroom Fittings Private Ltd., where they have charged the same on written down value method. The proportion of value of depreciation which has been charged on written down value method is as under : l Amount of Depreciation charged on WDV basis Rs. 4.99 Crores (Previous Year : Rs. 5.68 Crores) l Total Depreciation charged in Consolidated Accounts ` 126.01 Crores (Previous Year : Rs. 102.35 Crores)
41
l Percentage of Depreciation charged on WDV basis to total Depreciation : 3.96%
Main policies pertaining the unit: Basis of Preparation: The financial statements have been prepared to comply in all material aspects with the Notified Accounting Standards by Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. Method of Accounting and Revenue Recognition Accounts are maintained on an accrual basis and at historical cost. Sales are recognised on passing of risks and rewards attached to the goods. Sales include excise duty but do not include Value Added Tax (VAT) and Central Sales Tax (CST). Dividend income is recognised for when the right to receive is established. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Implications: The preparation of financial statements in conformity with Indian Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Differences between the actual result and estimates are recognised in periods in which the results are known/materialised.
42
Chapter 5: Directors Report 2008-2009:

Finance The company continues to be debt free. The company major investments are in Mutual fund liquid schemes. The aggregrate amount of investments in the schemes as an march 31, 2009 stood at Rs. 55.8 crores. During the period under review, the company has invested Rs. 145.78 crores in raheja QBE General insurance company Ltd, taking the total investment to Rs. 153.18 crores (including Rs. 5.18 crores as share application money), which represents 74% of its share in the subsidiary. CONSOLIDATED FINANCIAL STATEMENTS The audited consolidated financial statements have been prepare in accordance with the requirements of the Accounting standard (AS) 21, consolidated financial statements and accounting standards (AS) 23, Accounting for investments in association in consolidated financial statements issued by the institute of chartered accountants of india. For the nine months ended March 31, 2009, the consolidated net profit of the company amounted to Rs 92.05 crores as compared to Rs. 96.23 crores for the company on a standalone basis. 2009-2010: Finance Pursuant to the Scheme, the Company has issued and allotted 20,51,06,580 equity shares of the Company, of the face value of Rs. 10/- each, to each of the members of H. & R. Johnson (India) Limited
43
and RMC Readymix (India) Private Limited. Out of the said allotment, 1,23,51,600 equity shares were allotted to the Prism Trust, set up pursuant to the Scheme for the benefit of the Company, against the equity shares held by H. & R. Johnson (India) Limited in the paidup capital of RMC Readymix (India) Private Limited. Upon the Scheme becoming effective, the issued, subscribed and paid-up equity share capital of the Company post allotment of shares as a foresaid stands at Rs. 503.36 crores comprising of 50,33,56,580 equity shares of Rs. 10/- each fully paid-up and the Authorised Capital stands at Rs. 525 crores comprising of 50,50,00,000 equity shares of Rs. 10/- each and 2,00,00,000 preference shares of Rs. 10/- each. During the year under review, the Company tied up term loans to finance its ongoing capital expenditure and the total borrowings of the Company stood at Rs. 801.57 crores as on March 31, 2010. CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements have been prepared by the Company in accordance with the applicable Accounting Standards (AS - 21, AS 23 and AS - 27) issued by the Institute of Chartered Accountants of India. For the year ended March 31, 2010, the consolidated net profit of the Company and its subsidiary companies amounted to Rs. 259.78 crores as compared to Rs. 251.05 crores for the Company on a stand alone basis.
44
2010-2011
Finance During the year under review, the Company privately placed Secured Redeemable Non-convertible Debentures of Rs. 100 crores and Unsecured Redeemable Non-convertible Debentures of Rs. 50 crores to fund its ongoing capital expenditure. The Non-convertible Debentures (NCDs) are listed on The Bombay Stock Exchange Limited. The Company has repaid loans of Rs. 259.04 crores during the year and tied up term loans of Rs. 623.89 crores (inclusive of NCDs of Rs. 150 crores) to finance its long term working capital/capital expenditure during the year. The total borrowings of the Company stood at Rs. 1,169.84 crores as on March 31, 2011. The loans were used for the purpose that they were sanctioned for by the respective banks/financial institutions.
CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements have been prepared by the Company in accordance with the applicable Accounting Standards (AS - 21, AS - 23 and AS - 27) issued by the Institute of Chartered Accountants of India. For the year ended March 31, 2011, the consolidated net profit of the Company and its subsidiary companies amounted to Rs. 104.95 crores as compared to Rs. 95.79 crores for the Company on a standalone basis.
45
Other general information and implementations:
Expansion During the year, the Division enlarged its scope of operations and has commenced operating a Mega Project Vertical in view of the large infrastructure construction work expected to be put in place to meet the requirements of the power, water, irrigation and infrastructure sectors. The Mega Project Vertical will offer dedicated site project solutions to the construction industry. The Division has planned to increase its size of operations in the coming years and is actively pursuing certain projects in the RMC and Aggregates Verticals. Some of these projects will become operational during 2010-11. Future Outlook The ready mixed concrete industry is 15 years old and has been on a fast track growth mode over the last few years. The anticipated construction boom and developments in the residential, commercial and infrastructure space will offer great opportunities to the Division. The growth for RMC will come through higher penetration in more areas of construction. At present, around 8-10% of the total concrete manufactured in the country is obtained through the RMC route whereas internationally this figure is in the region of 60-70%. It is expected that this will undergo change and going ahead the penetration will be more and faster.
46
Chapter 6: Auditors report
Name of the auditors: J.M. Gandhi The Auditors report is qualified.
Implications: In 2004 the Order issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, auditors have enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
47
Chapter 7: COMMON SIZED STATEMENT
P & L A/C Common size Year

2008-09 Rs. 2009-10 Rs. 2010-11 Rs.
Percentage of Sales
2008-09 % 2009-10 % 2010-11 %
Sales Cost of goods sold Gross profit: Administrative expenses Selling expenses Total operating Expense Net Profit:
647.35
2837.98
3355.24
100
100
100
477.21__ 2340.54_ 3042.99_ 73.72___ 170.14__ 497.44__ 312.25__ 26.28___ 28.81 135.29 175.22 4.45
82.47___ 90.69___ 17.53___ 9.31____ 4.78 5.22
74.22___ 389.53__ 511.42__ 11.47___ 103.03__ 524.82__ 686.04__ 15.92___ 96.23 251.05 95.79 14.87
13.73___ 15.24___ 18.49___ 20.45___ 8.85 2.85
48
Common size Balance sheet:
y Common size balance sheet for year 2008-2009
Assets Fixed Assets less depreciation Capital Work in progress Investments Net current assets
Amount Rs. 392.70 109.16 203.81 -44.02 661.65
% of Total Assets 59.35% 16.5% 30.8% -6.65% . 100%
Liabilities Equity share capital Reserves & Surplus Secured loans Unsecured loans
Amount Rs. 298.25 363.4 661.65
% of Total Liabilities 45.08% 54.92% . 100%

Assets Fixed Assets less depreciation Capital Work in progress Investments Net current assets Amount Rs. 991.13 621.23 326.67 32.04 1971.07 % of Total Assets 50.28% 31.52% 16.57% . 1.63% . 100%
49
Amount Rs. 503.36 666.14 743.2 58.37 1971.07
% of Total Liabilities 25.54% 33.8% 37.7% 2.96% . 100%
Assets Fixed Assets less depreciation Capital Work in progress Investments Net current assets
Amount Rs. 1886.78 57.44 354.31 79.14 2377.67
% of Total Assets 79.35% 2.42% 14.9% 3.33% . 100%
Amount Rs. 503.36 704.47 925.47 244.37 2377.67
% of Total Liabilities 21.17% 29.63% 38.92% . 10.28% . 100%
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Comparison of common size with absolute P & L and balance sheet:
P & L A/C common size is basically extracted from P&L a/c. Here Sales is taken as 100% and den every expenses are calculated into percentage on sales. In profit and loss a/c amount is given in currencies while in common size profit and loss common size that amount is converted into percentage form. Hence it becomes easy to understand the incomes and expenses of the company by P&L a/c common size. In the same way balance sheet common size is extracted from balance sheet. Here total assets and total liabilities is taken as 100%. Hence it becomes to know and understand the balance sheet.
51

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Prism Cement Limited

An Analytical Study Of Three Years Published Data Of

Prism Cement Limited

Prism Cement Limited

Sr. No. 1. Company Profile

Prism Cement Limited

Chapter 1 : COMPANY PROFILE

1.1 Name of the company: y Prism Cement Limited

Prism Cement Limited

1.6 Financial Highlights:  Profit:

Prism Cement Limited

Prism Cement Limited

Chapter 2 : RESULTS OF OPERATIONS

Profit of 3 years GP, NP, EBIT, EBT, EAT:

Prism Cement Limited

Meaning and Importance of cash flow Statement:

Prism Cement Limited

(7.31) (0.41) 24.31 1.51 0.29 0.24_______

13.45 3.38 (12.00) (5.76)______ (0.93)_______ 169.68 (64.82)______ 104.86______

(123.12) 0.16 195.55 (140.60) 7.31 0.36________ (60.34)______

(1.51) (0.14) (34.90)______ (36.55)______ 7.97 12.89 20.86

(Note: Here cash flow statement is given for only 9 months)

Prism Cement Limited

89.85 (8.62) (2.85) (8.60) (3.00) 48.31 0.33 (0.78)

(41.77) (47.38) (1.77) 112.86_____

21.94_______ 494.83 (127.49)_____ 367.34______

(603.41) 3.64 375.70 (348.79) 2.85 8.60 1.85 3.00_______ (556.56)_____

459.82 (98.28) 38.41

Prism Cement Limited

Rs.Crores Rs. Crores

6.41 25.01 20.86 52.28 52.50 0.22__________ 52.28_________

Prism Cement Limited

113.30 (3.01) (8.38) (1.58) 93.28 3.43 (4.26)

(97.05) (53.54) (134.38) 244.80_____

(40.17)_____ 283.27 (29.51)_____ 253.76______

(429.92) 8.92 (477.01) 448.04 3.01 8.38 1.24 1.58_______ (435.76)

423.89 (245.04) 200.00

Prism Cement Limited

Rs.Crores Rs. Crores

7.62 52.28 59.90 60.00 0.10__________ 59.90_________

Prism Cement Limited

Chapter 3 : RATIO ANALYSIS

Prism Cement Limited

Prism Cement Limited

Prism Cement Limited

y Dividend pay-out ratio.

Prism Cement Limited

Gross profit Ratio = G.P./Sales*100

G.P. (rs) Sales (rs) G.P. ratio

Prism Cement Limited

Net Profit ratio = N.P./Sales*100

N.P. (rs) Sales (rs) N.P. ratio

2008-2009 96.23 647.35 14.87

2009-2010 251.05 2837.98 8.85

2010-2011 95.79 3355.24 2.85

Expense ratio = Expense/Sales*100

Prism Cement Limited

2009-2010 2482.91 2837.98 87.49

2010-2011 3262.02 3355.24 97.22

Operating ratio = (Cost of Sales + Operating Expense)/Net Sales*100

Prism Cement Limited

y Operating ratio for year 2010-2011 = 3042.99/3355.24*100 = 90.69

1.6 Financial Highlights: Profit:

13.45 3.38 (12.00) (5.76)__ (0.93)_ 169.68 (64.82) 104.86__

(123.12) 0.16 195.55 (140.60) 7.31 0.36__ (60.34)

(1.51) (0.14) (34.90) (36.55) 7.97 12.89 20.86

21.94_____ 494.83 (127.49)_ 367.34____

(603.41) 3.64 375.70 (348.79) 2.85 8.60 1.85 3.00___ (556.56)_

6.41 25.01 20.86 52.28 52.50 0.22__ 52.28_

(40.17)___ 283.27 (29.51)_ 253.76____

7.62 52.28 59.90 60.00 0.10__ 59.90_