A.

Liquidity Ratio
1 .Current Ratio The current ratio is a measure of the firm's short-term solvency. It indicates the availability of current assets in rupees for every one rupee of current liability. Current assets include cash and those assets that can be converted into cash within a year, such as inventories, debtors, marketable securities and prepaid expenses also. Current assets ----------------------------------------Current liabilities

Current Ratio =

Current assets include cash and bank balances, marketable securities, debtors and inventories and also prepaid expenses. Current liability includes creditors, bills payable, accrued expenses, short term bank loans , income tax liability etc. Table 1 : CURRENT RATIO Year 2008 2009 2010 2011 2012 Current Assets 2978.57 3727.18 3812.86 4810.00 4785.00 Current Liabilities 1123.12 1159.99 1593.99 3104.00 1781.00 Ratio 2.65 3.21 2.39 1.55 2.69

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) Interpretation: The statistics in the above table says that the current ratio of the company is slightly fluctuating. The ratio has increased from 2.65% in 2008 to 3.2% in 2009. further it started declining and again reached to 2.69% in 20012. As then calculated current ratio is above 2:1 in 2008-2012 the liquidity position is good.

Quick Ratio: It is used as a measure of the company's ability to meet its current obligations. This ratio is calculated as a supplement to the current ratio in analyzing the liquidity of the firm. Current assets - inventories Quick Ratio = --------------------------------------------------------------Current liabilities Where, Liquidity assets include cash, debtors, and bills receivable and marketable securities. QUICK RATIO Quick assets Year 408.06 2008 243.33 2009 1138.20 2010 2574.00 2011 2231.00 2012 1781.00 1.25 3104.00 0.82 1593.99 0.71 1159.99 0.21 1123.12 0.36 Current liabilities Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limite d (NCCPL) INTERPRETATION Normally the quick ratio standard is 1:1. Here the ratio has decreased from 0.36% in 2008 to 0.2% in 2006 and again it has increased. This ratio has grow up to very high level during the year 2012 that is 1.25%. thus there is increased between 2010 to 2012( 1.71 %& 1.25%) .The quick ratio is become 1:1 from 2008-2011.Hence the liquidity is not good. The quick ratio is satisfactory in 2012.

3. CURRENT ASSETS TO FIXES ASSETS RATIO The current assets to fixes assets ratio is improve their current assets ,to maintain fixed assets. This ratio is divided into current assets by fixed assets. Current assets Current assets Current assets to fixed assets Ratio = -------------------------------------------------------------------------------------Fixed assets Current assets Year 2978.57 2008 3727.18 2009 3812.86 2010 4810.00 2011 4785.00 2012 1914.00 2.50 2366.00 2.03 2219.10 1.72 1794.48 2.08 1490.41 1.99 Fixed Assets Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL)

INTERPRETATION In the above table the current assets to fixed assets ratio shows that fluctuated year by year. During the year 2009 this ratio seems to be highest that is of 2.08% .But during the after 3 years it seems to be increased the ratio. Here the current assets to fixed assets are good. The current assets to fixed assets ratio is satisfactory in 2012.

B.ACTIVITY RATIO 1. INVENTORY TURNOVER RATIO It indicates the number of times stock has been turnover during the period and evaluates the efficiency with which a firm is able to manage its inventory. A high inventory turnover is indicative of good inventory management, a low inventory turnover implies excessive inventory levels than warranted by production an sales activities. Cost of goods sold Inventory turnover ratio = ------------------------------------------------------Average inventory Average inventory = opening inventory +closing inventory 2 Cost of goods sold = sales - gross profit INVENTORY TURNOVER RATIO Cost of goods sold Average stock Year 2008 2009 2010 2011 2012 9998.96 11224.16 9171.07 12608.00 11555.00 568.52 795.13 898.11 787.00 1184.00 17.58 14.12 10.21 16.02 10.05 Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL)

INTERPRETATION In the above table the stock turnover ratio dhows that how many times the stock is converted into sales. During the year 2008 this ratio seems to be highest that is 17.58 times, but during the after 4 years it seems to be changed. The high inventory turnover is indicative of good inventor}' management. The low inventory turnover is indicating slow moving. But the company is the maintaining good inventory in 2012.

2.CURRENT ASSETS TURNOVER It indicates the extent to which the investments in current assets contribute towards sales. If compared with a previous period, it indicates whether the investment in current assets has been judicious or not. The ratio is calculated as follows. Sales Current assets turnover ratio = -----------------------------------Current assets Current Assets Turnover Ratio Year 2008 2009 2010 2011 2012 Credit Sales 15033.68 16452.00 16325.21 15284.00 14170.00 Current assets 2978.57 3727.18 3812.86 4810.00 4785.00 Ratio 5.04 4.41 4.28 3.26 3.06

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION

In the above table shows that the total assets turnover ratio of the company has shown a decreasing trend from 4.58 times in 2004 to 3.52 times in 2010. Again it has decreased to 3.64 times in 2011. But there is a small change of decreasing trend from 2011 to 2012 that is 2.80 times. Therefore the company is mot maintain the proper sales.

C. PROFITABILITY RATIO 1. GROSS PROFIT RATIO It measures the gross margin on total net sales of company. This ratio measures the efficiency of company's operations and can be higher the gross profit ratio, better is for the company. Gross profit Gross profit ratio = Where, Gross Prof!t= sales-(Raw Material, Wrapping and packing material consumed +purchase of finished goods) GROSS PROFIT RATIO Gross Profit Year 5034.72 2008 5227.84 2009 7154.15 2010 2676.00 2011 2615.00 2012 14170.00 18.45 15284.00 17.50 16325.21 43.82 16452.00 31.78 15033.68 33.49 Sales Ratio -------------------------------------------- x 100 Net sales

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION The above Gross profit ratio has decreased from 33.49% in 2008 to 31.78% in 2009. And further it has increased to 43.82% in 2010, again it has reduced 17.50% in 2011,once again it has increased to 18.45%in 2012.The high ratio indicates a high selling price of the product or the low cost of the production.

2. Net Profit Ratio This is used for the proprietors and prospective investors because it reveals the overall profitability of the concern. Higher the ratio is preferable because it gives idea of improved efficiency of the concern.

Net profit after tax Net profit ratio = ----------------------------------------------Net sales NET PROFIT RATIO Net Profit Year 1748.67 2008 1873.87 2009 1956.04 2010 2366.00 2011 1914.00 2012 14170.00 13.50 15284.00 15.48 16325.21 11.98 16452.00 11.39 15033.68 11.63 Sales Ratio x 100

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION In the above table shows that the net profit ratio of the company is highly fluctuating. The decreasing trend from 11.63% in 2008 to 11.39% in 2009. Again it has increased to 11.98% in 2010.Further it has decreasing trend from 2009 to 2012 that is 13.50%. The net profit ratio is increased only for cost of goods sold. But the company is not maintain the goods properly

3.Return on Investment The return on investment is promoting the investors .It is divided into profit before interest and tax by capital employed. EBIT Return on investment ratio =-------------------------------Capital employed Where, Capital employed includes equity shareholders, preference share holders, reserves and surplus. PBIDT Year 2008 2009 2010 2011 2012 1748.67 1873.87 1956.04 2366.00 1914.00 2966.94 3548.67 4129.36 4049.00 4985.00 58.93 52.80 47.36 58.43 38.40 Capital Employed Ratio x 100

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) Interpretation The above over all profitability ratio reveals the down ward trend from 58.93% in 2008 to 52.80% in 2009 and again it has decreased to 47.36%in 2010.Further it has

increased to 58.43% in 2011. But there is a change of decreasing trend from 2011 to 2012 that is 38.40%. Therefore the company effectively and properly utilize the investment.

4.Return on Equity Ratio The return on equity ratio is improve the profit after tax in the company. It is divided into profit after and tax by equity. PAT Return on equity ratio = ----------------------------Equity Return on Equity Ratio PAT Year 839.97 2008 983.67 2009 760.32 2010 825.00 2011 864.00 2012 4985.00 17.33 4049.00 20.38 4129.36 18.41 3548.61 27.72 2966.94 28.31 Equity Ratio - x 100

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION

The equity shareholder has shown a decreasing trend from 28.31% in 2008 to 27.72% in 2009. And again it has decreased to 18.41% in 2010.Further increased to 20.38% in2011. But there is a slight change from 2011 to 2012 that 17.33%. Thus the high ratio will reveal the performance and strength of the company in attracting future investment.

5.Administrative Expenses Ratio The Administrative expenses is promote the profit in the company. It is improve the selling and distribution. It is divided into administrative expenses by sales. Administrative expenses Administrative expenses ratio = ----------------------------------------------x 100 Sales Administrative Expenses Ratio Administrative Expenses Year 2008 2009 2010 2011 2012 3395.16 3743.52 3671.29 4768.00 4766.00 15033.68 16452.00 16325.21 15284.00 14170.00 22.58 22.75 22.48 31.20 33.60 Sales Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION The statistics in the above table says that the administrative expenses ratio of the company is slightly fluctuating. The ratio has increased from 22.58% in 2008 to

22.75% in 2009.Further it started to declining to 22.48% in 2010.Again it is increased from 31.2% in 2007 to 33.6% in 2012.Which indicates that the company has spend more expenses for selling and distribution.

6. Operating Ratio This ratio establishes the relationship between operating profit and sales. Cost of goods sold + operating expenses Operating ratio = ----------------------------------------------------x 100 Net sales Operating expenses = Administration, selling and distribution expenses Cost of goods sold = opeingstock+purchases+direct expenses+manuexpenses-closing stock-gross profit Operating Ratio Cost of Goods sold+ Operating Expenses Year 13344.12 2008 14967.68 2009 12842.36 2010 17376.00 2011 16321.00 2012 14170.00 115.17 15284.00 113.68 16325.21 78.67 16452.00 90.97 15033.68 89.09 Sales Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) Interpretation The operating ratio is more important to company growth. This ratio is increased from 89.09% in 2008 to 90.97% in 2009.Further it has decreased to 78.67% in 2010. Again it has increased from 113.68% in 2011 to 115.17% in 2012. Therefore the company effectively and properly utilize to improve the cost of goods sold.

7. Return OR Total Assets The Return on total assets is improve the total assets in the company. It is divided into profit after tax by total assets. PAT Return on total assets ratio = ----------------------------------------------------- x 100 Total assets Return on Total Assets PAT Year 839.97 2008 983.67 2009 760.32 2010 825.00 2011 864.00 2012 5069.00 17.04 4196.00 19.66 4638.21 16.39 4362.09 21.52 3349.66 25.08 Total Assets Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION The total assets are mainly depends upon the company growth. The above overall profitability ratio reveals the downward trend from 25.08%in 2008 to 21.52% in 2009. Again it has declining from 16.39% in 2006 to 17.04% in 2012.Therefore the

company has not maintain the total assets properly. The company is utilized their sales

D. Leverage Ratio 1 .Interest Coverage Ratio The interest coverage ratio is promote interest to the shareholders. It is divided into earnings before tax by interest. EBIT Interest coverage ratio = -------------------------------------- x 100 Interest Interest Coverage Ratio EBIT Year 1748.67 2008 1873.87 2009 1956.05 2010 2366.00 2011 1914.00 2012 10.50 18 21.70 11 46.15 42 38.52 49 45.27 39 Interest Ratio

Source: Complied from the annual reports of Nutrine Confectionery Company Private Limited (NCCPL) INTERPRETATION The above actual interest coverage ratio has increased from 39 times in 2008 to 49 times in 2009, and again it has decreased from 42 times in 2010 to 11 times in

2011.But there is a small change of increasing trend from 2011 to 2012 that is 18 times. Therefore the high ratio indicates the company has to pay interest income periodically with respect to their lenders.

2. Financial Leverage Ratio The finance leverage ratio is improve the earning before tax in the company. It is divided into earnings before interest tax by earning before tax. EBIT Financial leverage ratio = -------------------------------------------------EBT Financial Leverage Ratio EBIT Year 1748.67 2008 1873.87 2009 1956.05 2010 2366.00 2011 1914.00 2012 865.00 2.21 1041.00 2.27 1495.32 1.30 1478.67 1.26 1364.97 1.28 EBT Ratio x 100

Source: Complied from the annual reports of Nutrine Confectionery Company Private
Limited (NCCPL)

INTERPRETATION

The statistics in the above table says that the financial leverage of the company is slightly increasing. The leverage has decreased from 1.28% in 2008 to 1.26% in 2009. Again it has a small change to increase from 1.30% in 2010 to 2.27% in 2011. Further it has decreased from 2011 to 2012 that is 2.21%. Therefore the company has to maintain their financial position is very good.