BAALNCE SHEET as on 31st march,2008

2008

2007

Sources of funds
Shareholders fund Share capital Reserves & Surplus
Loan funds Secured loan Unsecured loan Deferred tax lib. Total 273.30 1197.05 1470.35 1774.94 97.52 1872.46 12.82 3355.63 255.58 1131.45 1387.03 1772.72 161.57 1934.29 12.82 3334.16

2008

2007

Application of funds Fixed assets Gross block Less: Depreciation Net block
capital work in progress Investment Current assets & loans & advance Inventories Sundry debtors Cash & Bank balance Other current assets Loans N Advance

2942.99 906.78 2036.21 116.14 2152.35 104.99 575.34 261.77 16.32 73.26 544.45

2817.21 772.32 2044.89 71.45 2116.34 48.05 645.01 204.85 22.31 54.95 663.79

2008
Less: Current Lib.& Provision
Current Liabilities Provisions Net Current assets Miscellaneous Exp. Total 360.54 21.81 382.35 1088.79 9.50 3355.63

2007
408.99 12.15 421.41 1169.77 0.00 3334.16

RATIO ANALYSIS

LIQUIDITY RATIOS
CURRENT RATIO =
2008 = 3.84:1 2007 = 3.77:1 INTERPRETATION: The company can pay its current liability as the ratio is 3.84:1 which is more then the ideal ratio 2:1. the increasing trend indicate that the company is performing better.

CURRENT ASSETS CURRENT LIBILITES

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.

TURNOVER 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.

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.

PROFITABILITY 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.

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.

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.

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.

LEVERAGE 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.

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.

COMMON SIZE INCOME STATEMENT

2008 Amt Sales 2271.27 Raw mat. consumed 557.13 Employees emoluments 233.40 Other 877.19 Interest 131.40 Depreciation 136.64 PBT 29.61 PBEO 27.36 Bal. as per last years B/S 425.00 Bal. carried to B/S 434.92 % to sales 100.00 24.50 10.27 38.62 05.70 06.00 01.30 01.20 18.71 19.14 2007 Amt 1847.99 571.93 204.33 780.24 150.26 143.36 27.71 25.27 321.17 425.00 % to sales 100.00 30.90 11.05 42.21 08.13 07.75 01.50 01.36 17.37 23.00

TREND ANALYSIS
2007 Sales Raw mat. consumed Employees emoluments Other Interest Depreciation PBT PBEO Bal. as per last years B/S Bal. carried to B/S 100 100 100 100 100 100 100 100 100 100 2008 122 101 114 112 87 95 106 108 132 102

`
trend analysis
140 120 100 80 60 40 20 0 2007 years 2008 sales PBT profit after extra ordinary item balance carried to B/S

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