Financial Performance: Meaning of Financial Analysis

Financial performance
1.1 INTRODUCTION
Financial Analysis is the process of identifying the financial strengths and weaknesses
of the firm by property-establishing relationship between the items of the Balance
Sheet and the Profit and Loss account. There are arious methods or techni!ues are
used in analy"ing financial schedule of change in working capital flow# cost olume
Profit Analysis and $atio Analysis.
MEANING OF FINANCIAL ANALYSIS:-
The meaning of Financial Analysis is also known as analysis refers to the process of
determining according to %eta fund tutored is a process of ealuating the relationship
between components parts of a financial statements to obtain a better understanding of
a firm&s position and performance. 'n the word of %yers( Financial statements
analysis is largely a study of relationship among the arious financial factors in a
series of statements(. The purpose of financial statements so as to )udge the
profitability and financial soundness of the firm.
DEVICES OF FINANCIAL ANALYSIS:
There are seeral methods for determining the financial analysis of the company.
They are as follows*-
+. ,omparatie Statement
-. Trend Analysis
.. ,ommon si"e Statement
/. Funds Flow Statement
1 RAOS INSTITUTE OF MANGEMENT STUDIES

0. ,ash Flow Statement
1. $atio Analysis
2. ,ost-3olume Profit analysis
Financial Analysis can be undertaken by management of the firm or by parties out
side the firm 4wners# ,reditors# 'nestors and 4thers. The structure of Assets#
Liabilities and 4wner&s e!uity and so on and the Profit 5 Loss account shows the
results of operation during a certain period of times in terms of the reenue obtained
during a certain period of times in terms of the reenue obtained and the cost incurred
during the year. Thus# the financial position and operational statement proides a
summari"ed iew of the financial position and operation of the firm.
The Financial Analysis statements are thus an important aid to Financial Analysis.
The first task of the Financial Analyst is to select the information releant to the
decisions under consideration from the total information contained in the financial
statements. 'n the brief Financial Analysis are the process of selection# relation and
6aluation.

1.2 INDUSTRY PROFILE
CEMENT INDUSTRY IN INDIA:
'ndia# being the second largest cement producer in the world after china with a total
capacity of +0+.- million tones# has got a huge cement industry. 7ith the goernment
of 'ndia giing boost to arious infrastructure pro)ects# housing facilities and road
networks# the cement industry in 'ndia is currently growing at an eniable pace. %ore
growth in the 'ndian cement industry is e8pected in the coming years. 't is also
predicted that the cement production in 'ndia would rise to -.1.+1 %T in F9 +-.
The cement industry in 'ndia is dominated by around -: companies# which account
for almost 2:; of the total cement production in 'ndia. 'n the present year# the 'ndian
cement companies hae produced ++ %T cement during April-September -::<. 't
took the total cement production in financial year -::< to -.+ %T.
Products o t!" I#dustr$:
4rdinary Portland ,ement
Portland po""olana ,ement
Portland blast furnace slag ,ement
4il well ,ement
$apid hardening Portland ,ement
Sulphate resisting Portland ,ement
7hite ,ement

C"%"#t &roduct'o# (#d )ro*t!:
=omestic demand plays a ma)or role in the fast growth of cement industry in 'ndia. 'n
fact the domestic demand of cement has surpassed the economic growth rate of 'ndia.
The cement consumption is e8pected to rise more than --; by -::<-+: from -::2-
:>. 'n cement consumption the state of %aharashtra leads a table with +-.+>;
consumption# followed by ?ttar Pradesh. 'n terms of cement production Andhra
Pradesh leads the list with +/.2-; of production while $a)asthan remains at second
position.
PIG IRON INDUSTRY IN INDIA:
Pig iron is mainly categori"ed into two ma)or types*
a@ Basic grade iron used for steel making
b@ Foundry grade iron for making iron castings which find applications in
industrial and other sectors.
'n the deeloped countries pig iron is also used as a scrap substitute in the change A
mi8 of 6lectric Arc Furnaces B6AFs@. The world production of foundry grade pig iron
in +<<1 was about -<.. million tons which increased marginally to -<.1 million tones
in +<<2 and then came down to -1.0 million tones in+<<>. The leel of global
production of foundry grade pig iron in +<<< has been estimated about -2.0 million
tones.
P') 'ro# &roduct'o#:

The total production of pig iron was 0.2<1 million tons in -::<-+: as compared to
+.0< million tons in +<<+-<-. 6arlier pig iron was produced primarily by the
integrated steel plant SA'L and $'CL. 4f late# the share of standalone pig iron units
has increased significantly.
'ndia continually posts phenomenal growth records in steel production. 'n +<<-# 'ndia
produced +/... million tones of finished carbon steels and +.0< million tones of pig
iron. Furthermore# the steel production capacity of the country has increased rapidly
since +<<+. 'n -::># 'ndia produced nearly /1.020 million tones of finished steels and
/..<. million tones of pig iron. Both primary and secondary producers contributed
their share to the phenomenal deelopment# while these increases hae pushed up the
demand for finished steel at a ery stable rate.
'n +<<- the total consumption of finished steel was +/.>/ million tones. 'n -::> the
total amount of domestic steel consumption was /..<-0 million tones. 7ith the
increased demand in the national market# a huge part of the international market is
also sered by this industry. Today# 'ndia is in seenth position among all the crude
steel producing countries.

PIG IRON PRODUCERS IN INDIA
CO+E OVEN INDUSTRY:
'ndia produces about 1; of worldDs coke. 7ith e8pected rise of installation capacity
in coming 0 years total coal throughput capacity of 'ndian coke oens will become
about .1 %tEyr. ma)or portion of coke comes from coke oens installation in steel
industry. To improe oerall performance and !uality of operation suitable
technologies should be adopted , absorbed time to time in coke area. To assess the
re!uirement of adaptionEabsorption of particular technology is necessary to hae in
96A$ P$'%A$9 S6,4C=A$9
-::1-:2 +2.-.; >-.22;
-::2-:> +2.1-; >-..>;
-::>-:< <./<; <:.0+;
-::<-+: +2.1-; >2..>;

depth study on the effect of arious factors affecting the performance of coking
industries.
Poor !uality and high ash content of 'ndian coking coal# inconsistent linkage of coal
to coke making units# increased number of components in the blend and poor coal
stock particularly in monsoon season# hae put the coke industry under the
tremendous pressure. The ash leel in coal charge has increased to +2 to +>; in 1:Ds
to -- to -/; at present. This has increased ash leel in coke to around -> to .: ;.
SPUN PIPES , DUCTILE PIPES INDUSTRY:
=' pipes are generally preferred for water supply# saage and transmission
applications. Superiority of =' pipes lies in its ability to proide trouble free serice
against increasing profit load and much longer life compared to other types of pipes.
7ater supply in our country is mainly met through monsoons and needs significant
inestment in water infrastructure for conseration and re use of water resources.
Therefore# the goernment is focusing on creation of urban and rural infrastructure
including water resources and saage management. 'n these efforts# monitory support
is being proided to the goernment by international deelopment finance institutions
such as the 7orld Bank and the Asian deelopment bank. This has generated a
greater demand for =' pipes that are increasingly being used for water and saage
transportation.

1.- COMPANY PROFILE
L(#co '#dustr'"s Ltd.. is the one of the eleen mini-blast furnace Pig 'ron
manufacturing units in our country# and it was the 0
th
plant under TATA-F4$F
Technology. The company was incorporated on Coember +
st
+<<+ under ,ompanies
Act-+<01# in the name of LAC,4 F6$$4 Ltd.#
The company started construction work in August +<<.. The entire construction work
was completed a record time of +- months. This was achieed by team work of Lanco
collecties and the best efforts of the contractors. 7ith these achieements the
company started commercial production from September +<</. The name LAC,4
F6$$4 Ltd.# was changed to LAC,4 'ndustries Ltd.# on Guly 1
th
# +<</.
LOCATION:
Lanco 'ndustries Ltd.# is located in between Tirupati and SriFalahasti with an access
of about .: Fms from Tirupati and +: Fms from SriFalahasti. Location of Lanco
industries ltd in one of the most under deeloped areas of chittoor district in Andhra
Pradesh proed to be a big boon for the local people in terms of employment
opportunities# direct and indirect# leading to considerable economic growth of the
region.
The plant is ideally located close to the ast iron ore deposits and in pro8imity
to the ,hennai port for import of high grade metallurgical coke.
't is well connected by the road and rail to the re!uired destinations

't has its own fleet of material handling e!uipments and also has its own
railway siding facilities.
As Lanco 'ndustry emphasi"es more on technology# it re!uires skilled people# as the
aailability of skilled people is ery high in this region.
For sustained growth we intended to enture into related business in the area of
+. Sustainable hori"ontal and ertical integration pro)ects.
-. Turn key pro)ects.
.. 6ngineering and consultancy.
/. Build own operate transfer pro)ects and diersified into new areas of business
including infrastructure related pro)ects.
7e will achiee the aboe through*
,ontinuous technology up-gradation and adaption of new technology.
6ffectie team based working.
MISSION OF LANCO INDUSTRIES:
We am to be word cass, commtted to customer satsfacton
and to encourage the sprt of eadershp amongst our
dedcated team by creatng a heathy envronment for
contnuous growth, proft and prosperty.
VISION OF LANCO INDUSTRIES:
We are n the busness of manufacturng ppes for conveyng
safe drnkng water and other fuds for domestc and overseas
markets.
We w mantan our domnant poston n the domestc ppe
market and enhance our presence n the overseas market by
settng up mut-ocaton unts as per busness potenta.

,ontinuous training and human resource deelopment.
=eeloping ancillary units.
,ost competitie
St"& /$ St"& Co%&(#$0s Gro*t!:
1111* 'ncorporation of Lanco 'ndustries
1112: Setting up of %ini Blast Furnace with <:#::: TPA ,apacity
1113: Setting up a -0: TP= %ini ,ement plant
1114* Setting up of LF,L BLanco Falahasthi casting Ltd.@ for manufacture of
/:#::: TPA ,asting and .0#2:: TPA =' pipes
2552: Strategic alliance with 6lectro Steel ,asting Ltd
2552: 'nfusion of $s.--:: lakhs to the e!uity and financial restructuring
255-: %erger of LF,L with L'L for synergy
255-: ,apacity of Pig iron was increased from <:#::: TPA to +#0:#::: TPA
2552: ,apacity of =' pipes was increased to <:#::: TPA
2553: ,ommissioning of +#0:#::: TPA ,oke oen plant.
2553: Setting up of ,aptie Power plant of +- %7 by using the waste heat
recoered from the ,oke oen plant.
MANUFACTURING UNITS:
The following are the ma)or manufacturing units under the name Lanco 'ndustries
Ltd.
+. Pig iron
-. ,ement
.. Spin pipe
/. ,oke oen and

0. +- %7 Power plant.
1. P') Iro# D'6's'o#:
HBlossoming of a fiery budIJ e8claimed =r.Shankar dayal Sharma# the president of
'ndia while inaugurating the pig iron plant of Lanco industries Ltd. 'n sep +<</. And
the bud has in deed blossomedI
,ommissioned a record time of ++ months Lanco industries Ltd# <:#::: tones
per annum pig iron plant surpassed its rated capacity )ust after two years of
commissioning. Later it transformed the slag A a waste by- product# into productie
slag cement with setting up of cement plan. The pig iron plant capacity was upgraded
to +#0:#::: tones per annum in the year -::..
2. C"%"#t D'6's'o#:
6stablished in the year of +<<1.The slag from pig-iron plant is used for
producing <:#::: TPA cement reflecting an approach that transforms the by-product
into productie inputs# in alue added finish product.
Kigh !uality port land slag cement in arious grades of uniersal application#
Luality consistent composition# competitie pricing.
-. S&u# P'&" D'6's'o# Or Duct'7" Iro# P'&"s:
6stablished in the year of +<<2 and strategically located in close pro8imity to
the mini blast furnace of the pig iron# it has a clear economic mileage oer other
casting sites. The molten metal from the blast furnace is directly used as basic raw
materials to produce graded castings# cast iron pipes and ductile iron pipes with a
capacity of <:#::: TPA.
2. Co8" O6"# P7(#t:
Preiously Lanco use to import coke from Gapan and ,hina to meet the
re!uirements of the mini blast furnace. But then due to the steep rise in the coke
prices in the international markets it was ery difficult to maintain the cost of hot
metal produced.

Thus it was decided to install a coke manufacturing facility to meet the in
house coke re!uirements. The company was attracted by the low cost of the non
recoery type of coke oens with easy compliance with the pollution control norms
without any ma)or inestments. Cow the company operates a coke oen plants with a
set of 1> :ens based on =as guptha Technology. The plant was commissioned in
%ay -::0 and is producing to the rated capacity of + -0#::: tons per year.
3. Po*"r P7(#t 9Pro&os"d 12 M: Po*"r P7(#t;:
't has proposed to set up a power plant of +-%7. Power plant be set up in the
e8isting land of coke oen plant. 7aste heat of fuel gas from coke oen will be
utili"ed in waste heat recoery boiler to produce steam. Steam produced in the aboe
process will be utili"ed to one TM set for generating power.
Power generate from the power plant will be utili"ed in A house consumption
and balance power will be fed into APS6B grid.
<. L(#co Co#struct'o# Ltd:
This group company was established in the year +<<. and has e8ecuted most
demanding and difficult pro)ects in the field of ciil construction engineering on
schedule essaying repute as world class ,onstruction ,ompany in a ery short time
span. The company is mainly e8ecuting prestigious work in the fields of irrigation#
pipeline pro)ects highways# housing and industrial construction pro)ect a successfully
compared seeral housing comple8es roads# irrigation canals# bridges and industrial
comple8es.
4. +(7(!(st' C(st'#)s L'%'t"d:
6stablished in +<<2 and strategically located in alone pro8imity to the mini
blast furnace of the pig iron plants it has a clear economics mileage oer other
castings sites. The molten metal from the blast cone is directly loosed as basic raw
material to produce graded castings. ,ast iron span pipes and iron span pipes and iron
spun gradually e8panded further to meet the scaring demand of the products. The ?PS
to the pipe plant will be met through +:%7 capture power plant

T"c!#o7o)$ (#d C(&(c't'"s:
7ith the state of the art technology supplied by F4$F of technological
serices-Bra"il# the plant has a %ini Blast Furnace B%BF@ of -+0 mw working
olume producing !uality foundry and SM grade pig iron supplying to ma)or
foundries. The mini blast furnace has been set up# conforming to the latest technology
in an eco friendly ambience# with the power e!uipment house taken care of by a
captie power plant of capacity -.0 mw. BF gas fired captie power plant has been
installed to utili"e BF gas generated from the furnace. This will reduce the power cost
and also sae the enironment due to emission of gas to atmosphere.
S("t$ to E%&7o$""s:
All the employees who are on the regular rolls of the company are issued -
Btwo@ pairs of uniform and one pair of shoes. All the employees are e8pected to come
to their duties in uniform. The employees working in the plant operations are proided
with helmets and safety shoes.
=epending on the nature of work# it is obligatory on the part of employee to
draw the re!uired safety appliances like gloes# goggles# respirators# earplugs etc.
from the store to the safety department and use them. Failure to do so shall attract
appropriate action.
Ot!"r A%"#'t'"s to E%&7o$""s:
Lanco 'ndustries management has proided other facilities like identity card#
canteen# medical center etc.
Id"#t't$ c(rd
All the employees are issued with an identity card# which has a photograph#
name and employee number duty signed both by the employee and the competent
authority. 6ery employee has to display the identity card while on duty. Their
admission into the premises can be denied by the security# if they are found not
wearing identity card.

'n case of loss of the identity card they should immediately inform the P 5 K$
department who shall issue another card and deduct $s.0: for the replacement.
C(#t""#:
The canteen proides breakfast# lunch and dinner to all the employees at
confessional rates. The timings are staggered to accommodate shift as well as
generally shift employeesN proper discipline has to be maintained at the canteen#
especially during the rush hours. Tea is supplied free of cost at the work spot during
the shift to all the employees.
M"d'c(7 c"#tr"
Lualified and e8perienced company medical officers at medical center. Ke
organi"es medical fitness e8aminations at the time of selection and periodical medical
check ups to all the employees. Ke attends to medical emergency at the medical
center and also follows up with the case is re!uired at the city hospitals. Ke
periodically organi"es immuni"ation programs to employees and their families. Ke
conducts first aid safety classes to the employees. Ke appraises the management on
hygiene and enironmental deficiencies in and around the factory. The medical center
is well e!uipped to attend the emergencies and an ambulance an is proided.
+EY PERSONS IN LANCO INDUSTRIES:
CA%6 =6S'MCAT'4C
Shri. %ayank Fe)riwal %anaging =irector
Shri. M.%aruthi $ao =irector
Shri. Mouri Shankar $athi =irector
Shri. L.%adhusudhan $ao =irector
Shri. M.Bhaskar =irector
Shri. L.Sridhar =irector
Shri.P.%.Suresh Cominee of '=B'
Shri. 3inod Fumar Agrawal# 'AS Cominee of AP'=,

2.1NEED FOR T=E STUDY
The following are the needs for my study*
+. The ability of the firm to meets its current obligations.
-. The e8tent to which the firm has used its long-term solency by borrowing funds.
.. The efficiency with the firm is utili"ing its assets in generating sales reenue.
/. The oerall operating efficiency and performance of the firm.
0. The firmDs performance capacity comparison with its competitors

2.2 SCOPE OF T=E STUDY
The study has great significance and proides benefits to arious parties who directly
or indirectly interact with the company.
+. 't is beneficial to the top management of the company by proiding crystal
clear picture regarding to the important financial aspects of the Lanco 'ndustries Ltd.
-. The study is beneficial to 6mployees and offer motiation by shoeing how
actiely they are contributing for the companyDs growth.
.. The inestors who are interested in inesting in the companyDs shareDs will
also get benefit by going through the study and can easily take a decision whether to
inest in the companies shares.

2.- O>?ECTIVES OF T=E STUDY
This study is mainly focused to e8amine the oerall financial iability of
Lanco 'ndustries Ltd as stated below*
To study the financial position of Lanco 'ndustries Ltd.
To study the periodic changes in the financial performance of Lanco 'ndustries
Ltd by preparing ,omparatie# ,ommon Si"e and Trend Analysis.
To find out the financial strengths and weaknesses of the company.
To study the oerall operating efficiency and performance of the company.
The study is conducted to ealuate the returns to the company.
To ascertain the efficiency with which the firm is utili"ing its assets in
generating sales reenue.

2.2 RESEARC= MET=ODOLOGY
This pro)ect HFinancial Performance Analysis His based on the information collected
from the annual reports and balance sheets of the company.
HAccording to Fennedy and %ullerJ
The analysis and interpretation of financial statements reeal each and eery aspect
regarding the well being financial soundness# operational efficiency and credit
worthiness of the company.
PRIMARY DATA:
'nteriewing primary and secondary data hae been the sources of data. The
study deries its date mainly from primary sources of information from finance
employee of the company and the ma)or source of secondary data was annual report
of Lanco 'ndustries Ltd for years -::/-:0#-::0-:1#-::1- -::2 #-::2 A-::> and
-::>--::< from of the balance sheet and profit and loss account of the company.
SECONDRY DATA:
These are sources containing data which hae been collected and compiled for
another purpose. The secondary sources consists of readily aailable compendia and

already compiled statistical statements and reports whose data may be used by
researches for their studies# e.g.# census reports# annual reports and financial
statements of companies# statistical statements# reports of goernment departments#
annual reports on currency and finance published by the resere bank of 'ndia.
2.3 LIMITATIONS OF T=E STUDY
The information used is primarily from historical reports aailable to the
public and the same doesnDt indicate the current situation of the firm.
=etailed analysis could not be carried for the pro)ect work because of limited
time span.
Since financial matters are sensitie in nature the same could not be ac!uired
easily.


T=EORETICAL >AC+GROUND
%anagement should be particularly interested in knowing financial strengths of the
firm to make their best use and to be able to spot out financial weaknesses of the firm
to take suitable correctie actions. The future plans of the firm should be laid down in
iew of the firmDs financial strengths and weaknesses. Thus# financial analysis is the
starting point for making plans# before using any sophisticated forecasting and
planning procedures. ?nderstanding the past is a prere!uisite for anticipating the
future.
F'#(#c'(7 P"ror%(#c" (#(7$s's is defined as the process of identifying financial
strengths and weaknesses of the firm by properly establishing relationship between
the items of the balance sheet and the profit and loss account.
There are arious methods or techni!ues that are used in analy"ing financial
statements# such as comparatie statements# schedule of changes in working capital#
common si"e percentages# funds analysis# trend analysis# and ratios analysis.

Financial statements are prepared to meet e8ternal reporting obligations and also for
decision making purposes. They play a dominant role in setting the framework of
managerial decisions. But the information proided in the financial statements is not
an end in itself as no meaningful conclusions can be drawn from these statements
alone. Koweer# the information proided in the financial statements is of immense
use in making decisions through analysis and interpretation of financial statements.
TOOLS AND TEC=NI@UES OF FINANCIAL PERFORMANCE ANALYSIS:
The following are some tools to analyses the financial Performance of the company*
+. $atio Analysis
-. ,omparatie Statement Analysis
.. ,ommon Si"e Statement Analysis
/. Trend Analysis
0. ,hanges in Cet 7orking ,apital Analysis
1. RATIO ANALYSIS
$atio analysis is a powerful tool of financial analysis. A r(t'o is defined as
Hthe indicated !uotient of two mathematical e8pressionsJ and as Hthe relationship
between two or more things.J 'n financial analysis# a ratio is used as a bench mark for
ealuating the financial position and performance of a firm.
The relationship between two accounting figures# e8pressed mathematically# is
known as a financial ratio Bor simply as a ratio@. $atios help to summaries large
!uantities of financial and to make qualitative judgment about the firmDs financial
performance.
T$&"s o R(t'os

Seeral ratios# calculated from the accounting data# can be grouped into arious
classes according to financial actiity or function to be ealuated. 'n iew of the
re!uirements of the arious users of ratios# we may classify them into the following
four important categories.
I. Leerage ratios
''. Li!uidity $atios
'''. Profitability ratios
'3. Actiity $atios
I. L"6"r()" R(t'os
A strong short-as well as long-term financial position. To )udge the long-term
financial position of the firm# '#(#c'(7 7"6"r()" or c(&'t(7 structur" r(t'os are
calculated. These ratios indicate mi8 of funds proided by owners and lenders. As a
general rule# there should be an appropriate mi8 of debt and ownersO e!uity in
financing the firmDs assets.
The process of magnifying the shareholdersO return through the use of debt is called
A'#(#c'(7 7"6"r()"B or A'#(#c'(7 )"(r'#)B or Atr(d'#) o# "Cu't$B. The following
are some of the li!uidity ratios.
+. =ebt-6!uity $atio
-. Proprietary $atio
.. =ebt-6!uity $atio BLong-Term@
II.L'Cu'd't$ R(t'os
't is e8tremely for a firm to be able to meet its obligations as they become due.
L'Cu'd't$ r(t'os measure the ability of the firm to meet its current obligations
Bliabilities@. The failure of a company to meet its obligations due to lack of sufficient
li!uidity# will result in a poor credit worthiness# loss of creditorsO confidence# or een

in legal tangles resulting in the closure of the company. A ery high degree of
li!uidity is also badN idle assets earn nothing. The firmDs funds will be unnecessarily
tied up in current assets. Therefore# it is necessary to strike a proper balance between
high li!uidity and lack of li!uidity.
The most common ratios# which indicate the e8tent of li!uidity or lack of it# are*
+. ,urrent $atio
-. Luick $atio
.. 4ther ratios include ,ash $atio# 'nteral %easure and Cet 7orking ,apital
$atio.
III.Pro't(/'7't$ R(t'os:
A company should earn profits to surie and grow oer a long period of time.
Profits are essential# but it would be wrong to assume that eery action initiated by
management of a company should be aimed at ma8imi"ing profits# irrespectie of
concerns for customers# employees# suppliers or social conse!uences.
Profit is the difference between reenues and e8penses oer a period of time Busually
one year@. Profit is the ultimate PoutputD of a company# and it will hae no future if it
fails to make sufficient profits. Therefore# the financial manager should continuously
ealuate the efficiency of the company in term of profits. The &ro't(/'7't$ r(t'os are
calculated to measure the operating efficiency of the company.
Menerally# two ma)or types of profitability ratios are calculated*
Pro't(/'7't$ '# r"7(t'o# to s(7"s
1. Mross profit ratio
-. 4perating ratio
.. 68pense ratio

/. 4perating profit ratio
0. Cet Profit $atio
Pro't(/'7't$ '# r"7(t'o# to '#6"st%"#t.
$eturn on e!uity capital
6arnings per share B6PS@ ratio
$eturn on shareholders& inestment or net worth
IV.Act'6't$ R(t'os:
Funds of creditors and owners are inested in arious assets to generate sales and
profits. The better the management of assets# the larger the amount of sales. Act'6't$
r(t'os are employed to ealuate the efficiency with which the firm manages and
utili"es its assets. These ratios are also called tur#o6"r r(t'os. They are*
+. Fi8ed Assets Turn 4er $atio
-. ,urrent Assets Turn 4er $atio
3. Cet 7orking ,apital Turn oer $atio
/. =ebtors Turn 4er $atio
5. 'nentory Turn oer $atio
I.LEVERAGE RATIOS:

-.1.1 DE>T- E@UITY RATIO: The =ebt-6!uity measures the long term financial
solency of a business concern. The ratio is also popularly known as e8ternal internal
e!uity ratio. This ratio relates the ownerDs stake in the business is-Q-is that of
outsides. Alternatiely it reflects the relatie claims of creditors and share holders
against the asset of the unit. This ratio can also be iewed as indicating the relatie
proportion of debt amends e!uity in financing the assets of the business unit. =ebt-
e!uity B=6@ ratio is directly computed by diiding total debt by net worth*

Table +
INTERPRETATION:
=6BT-6L?'T9 ratio is fluctuated in each yearN it increases from -.1. to ...+ in the
periods between -::/-:2# decreased in the year -::2-:> and again increased in the
period -::>-:<. The ratio indicates that the company had low owners contribution.
-.1.2 PROPRIETARY RATIO
96A$ =ebt 6!uity $AT'4
-::/--::0 -:/.20 22.>+ -.1.
-::0--::1 -/..+/ 2<.1< ..:0
-::1--::2 .:+.+2 <:.>0 ...+
-::2--::> .:+.:. +++.01 -.2:
-::>--::< .>+.:1 +-0.-1 ..:/

This is a ariant of the debt-to-e!uity ratio. 't is also known as e!uity ratio or net
worth to total assets ratio. This ratio relates the shareholder&s funds to total assets.
Proprietary E 6!uity ratio indicates the long-term or future solency position of the
business.

Table -
Y"(r
S!(r" =o7d"rDs
Fu#d
Tot(7 Ass"ts R(t'o
-::/-
-::0
22.>+ 280.9 :.->
-::0-
-::1
2<.1< 329.01 :.-/
-::1-
-::2
<:.>0 403.87 :.--
-::2-
-::>
+++.01 438.36 :.-0
-::>-
-::<
+-0.-1 537.56 :.-.
INTERPRETATION:
Proprietary $atio is fluctuated in each year# Kigher the ratio or the share of
shareholders in the total capital of the company better is the long-term solency

position of the company. A low proprietary ratio will include greater risk to the
creditors.
-.1.- TOTAL DE>T RATIO
Total =ebt $atio is used to analy"e the long term solency of the company. Total debt
ratio is calculated by diiding the total debt by capital employed.
Table .
Y"(r
Tot(7
D"/t
C(&'t(7 E%&7o$"d R(t'o
-::/-
-::0
-:/.20 280.9 :.2.
-::0-
-::1
-/..+/ 329.01 :.2/
-::1-
-::2
.:+.+2 403.87 :.20
-::2-
-::>
.:+.+. 438.36 :.1<
-::>-
-::<
.>+.:1 537.56 :.2+

INTERPRETATION:
The debt ratio aerage for the study period is :.2/01N it means that the lenders hae
financed 2/.01; of total debt. 't obiously implies the owners hae proided
remaining finance.
-.1.2 INTEREST-COVERAGE RATIO
The interest coerage ratio or the times-interest-earned is used to test the firmDs debt-
sericing capacity. The interest coerage ratio is computed by diiding earnings
before interest and ta8es B6B'T@ by interest charges
Table /
Y"(r E>IT I#t"r"st R(t'o
-::/--::0 0..2> +:.0 0.+-
-::0--::1 .:.+< +..++ -..:
-::1--::2 0..00 -:..+ -.1/
-::2--::> >-./0 -2.-2 ..:-/
-::>--::< >0.+> /:.0/ -.+:

INTERPRETATION:
'nterest coerage ratio indicates the number of times the interest charges are coered
by funds aailable for their payment. 'n the study period the companyDs interest
coerage ratio is fluctuating stage. 'n -::/--::0 it shows a high ratio B0.+-@# a high
ratio is desirable to the company.
II.LI@UIDITY RATIOS:
-.2.1 CURRENT RATIO:
The current ratio is a measure of the firmDs s!ort-t"r% so76"#c$. 't indicates the
aailability of current assets in rupees for eery one rupee of current liability. A ratio
of greater than one means that the firm has more current assets than current claims
against them.
Table 0
YEAR
CURRENT
ASSETS
CURRENT
LIABILITIES
RATI
O
2004-
2005
161.36 96.25 1.68
2005-
2006
183.22 95.56 1.92
2006-
2007
261.97 107.26 2.44
2007-
2008
266.16 100.3 2.65
2008-
2009
359.74 108.83 3.31

INTERPRETATION:
The firmDs current ratio refers that the companyDs short-term solency. The standard
current ratio is -*+N the current ratio is not e!ual to standard ratio in the entire study
period. 'n -::/-:0 and -::0-:1 the ratio is too low then the standard ratio -*+. But in
-::1-:2# -::2-:> and -::>-:< the ratio is higher than the standard ratio.
-.2.2 @UIC+ RATIO
@u'c8 r(t'o. also called acid-test ratio# establishes a relationship between !uick# or
li!uid# assets and current liabilities. An asset is li!uid if it can be conerted into cash
immediately or reasonable soon without a loss of alue. ,ash is the most li!uid asset
and other assets that are considered to be relatiely li!uid. 'nentories are considered
to be less li!uid. The !uick ratio is found out by diiding !uick assets by current
liabilities.
Table 1
YEAR
QUICK
ASSETS
CURRENT
LIABILITIES
RATIO
2004-2005 90.61 96.25 0.94
2005-2006 91.28 95.56 0.96
2006-2007 155.6 107.26 1.45
2007-2008 145.23 100.3 1.45
2008-2009 215.38 108.83 1.98

INTERPRETATION:
The higher the Luick ratio indicates the ability of a firm is li!uid and has the
ability to meet its current liabilities in time. The companyDs !uick ratio is almost e!ual
to standard ratio +*+ in the years# -::1-:2# -::2-:> and -::>-:<. But in -::0-:1 and
-::/-:0 it is not e!ual to ideal ratio.
-.2.- CAS= RATIO:
,ash ratio establishes relation between cash and current assets. 't
indicates the proportion of cash in current assets. 't is calculated by diiding cash by
current assets.
Table 2
YEAR CASH
CURRENT
LIABILITIES
CASH
RATIO
2004-2005 2.47 96.25 0.03
2005-2006 3.51 95.56 0.04
2006-2007 26.5 107.26 0.25
2007-2008 4.2 100.3 0.04
2008-2009 34.64 108.83 0.32

INTERPRETATION:
Kigh cash ratio indicates the idle cash reseres in the company# but low cash ratio is
also not faorable to the company. By studying the aboe data the company has in-
sufficient cash reseres with it. 'n the study period the companyDs aerage cash ratio
is :.+.1 only.
-.2.2 NET :OR+ING CAPITAL RATIO:
The difference between the ,urrent Assets and ,urrent Liabilities e8cluding short-
term Bank borrowings are called Cet 7orking ,apital BC7,@ or Cet ,urrent Assets
BC,A@. C7, is used as a measure of a firm&s li!uidity. The measure of li!uidity is a
relationship# rather than the difference between current Assets and ,urrent Liabilities.
C7,# howeer# measures the firm&s potential reseroir of funds. 't can be related to
Cet assets BCA@ or ,apital 6mployed B,6@.
NWC = Current Assets - Current Liabilities
NA = Net Fixed Assets (NFA) + NWC (or) NCA
Table >
YEAR
NET WORKING
CAPITAL
NET
ASSETS
NWC
RATIO
2004-
2005 74.61 280.9 0.27
2005- 87.65 329.01 0.27

2006
2006-
2007 154.71 403.87 0.38
2007-
2008 165.86 438.36 0.38
2008-
2009 250.91 537.56 0.47
I#t"r&r"t(t'o#:
The net working capital ratio of the company was started with :.-2 in the first year
and -::/- :0. 't was increased to :..> by -::1-:2 and slightly increased to :./2 by
-::>- :<. The aerage C7, $atio of the company is :..0/ for the aboe study
period.
III.PROFITA>ILITY RATIOS: Pro't(/'7't$ R(t'os r"7(t"d to S(7"s
-.-.1 NET PROFIT MARGIN RATIO:
Cet profit is obtained when operating e8penses# interest and ta8es are subtracted from
the gross profit. The ratio establishes a relationship between net profit and sales and
indicates managementDs efficiency in manufacturing# administrating and selling the
products. This ratio is the oerall measure of the firmDs ability to turn each rupee sales
into net profit. 'f the net margin is inade!uate# the firm will fail to achiee satisfactory
return on ownerDs e!uity.
The #"t &ro't %(r)'# ratio is measured by diiding profit after ta8 by sales*

Table <
YEAR NET PROFIT SALES RATIO

2004-2005 20.94 286.62 7.31
2005-2006 4.15 302.96 1.37
2006-2007 15.81 369.4 4.28
2007-2008 25.92 463.66 5.60
2008-2009 18.35 644.72 2.854
INTERPRETATION: The net profit ratio was 2.-> in the year -::/-:0 and it highly
decreased to +..1 in the year -::0-:1 and it slowly increased in the years -::1-:2 and
-::2-:># again it decreased to -.>. in the period -::>-:<.
-.-.2 GROSS PROFIT MARGIN RATIO:
The ratio establishes a relationship between gross profits in to sales. The first
profitability ratio in relation to sales is the )ross &ro't %(r)'# Bor simply gross
margin ratio@. 't is calculated by diiding the gross profit by sales
Table +:
YEAR GROSS PROFIT SALES RATIO
2004-2005 87.18 286.62 30.42
2005-2006 52.75 302.96 17.41
2006-2007 84.69 369.4 22.93
2007-2008 141.41 463.66 30.50

2008-2009 150.32 644.72 23.31
INTERPRETATION:
The higher gross profit ratio is indicated better performance and lower gross profit
ratio is shown unfaorable. By seeing the graph it is clear that the companyDs
performance is high in the year -::/-:0. But in the year -::0-:1 the gross profit ratio
is down to +2./+ and again it was increased year by year.
-.-.- OPERATING PROFIT
4perating profit is the profit which is earned by the companyDs core actiities. This
ratio e8presses the relationship between operating profit and sales. 't is worked out by
diiding operating profit by net sales. 7ith the help of this ratio# one can )udge the
managerial efficiency which may not be reflected in the net profit ratio.
Table ++
YEAR OPERATING PROFIT SALES RATIO
2004-2005 53.24 286.62 18.58
2005-2006 29.27 302.96 9.66

2006-2007 51.23 369.4 13.87
2007-2008 77.76 463.66 16.77
2008-2009 88.66 644.72 13.75
INTERPRETATION:
The higher 4perating profit ratio is indicated better performance and lower 4perating
profit ratio is shown unfaorable. By seeing the graph it is clear that the companyDs
performance is high in the year -::/-:0. But in the year -::0-:1 the 4perating profit
ratio is down to +2./+ and again it was increased year by year.
Pro't(/'7't$ R(t'os r"7(t"d to I#6"st%"#ts:
-.-.2 RETURN ON CAPITAL EMPLOYED
$eturn on capital employed establishes the relationship between the profit and the
capital employed. 't indicates the percentage of return on capital employed in the
business and it can be used to show the oerall profitability and efficiency of the
business. R"tur# o# c(&'t(7 "%&7o$"d r(t'o is considered to be the best measure of
profitability in order to assess the oerall performance of the business
Table +-

YEAR
PROFIT
AFTER TAX
CAPITAL
EMPLOYED
RATI
O
2004-
2005
20.94 280.9 7.45
2005-
2006
4.15 329.01 1.26
2006-
2007
15.81 403.87 3.91
2007-
2008
25.92 438.36 5.91
2008-
2009
18.35 537.56 3.41
INTERPRETATION:
Kigher the return on capital employed# the more efficient the firm is in using its
funds. The companyDs return on capital employed is lowN in -::/--::0 the
ratio was +:.-.; but in ne8t yearDs the company could not maintain the good
returns on capital employed.
-.-.3 RETURN ON NET :ORT= 9OR; E@UITY:
This is turn# measures the profitability of the e!uity funds inested in the company
and shows the shareholders# how efficiently their inestments hae been utili"ed.
,ommon or ordinary shareholders are entitled the residual profits. A return on
shareholderDs e!uity is calculated to see the profitability of ownerDs inestment.
Table +.

YEAR PROFIT AFTER TAX NET WORTH RATIO
2004-2005 20.94 77.81 26.91
2005-2006 4.15 79.69 5.20
2006-2007 15.81 90.85 17.40
2007-2008 25.92 111.56 23.23
2008-2009 18.35 125.26 14.65
INTERPRETATION:
This ratio is indicating that the return on e!uity is fluctuating year by year. The ratio
is -1.<+; in -::/-:0N it decreased to 0.-+; in -::0-:1 and increased year by year. 't
was -..-.; in -::2-:> and again decreased to +/.1/; in -::>-:<.
-.-.< RETURN ON INVESTMENT
,alculate return on inestment by diiding earnings before interest depreciation and
ta8 B6B'=T@ by Cet assets or Total assets.
Table +/

YEAR EBIDT NET ASSETS RATIO
2004-2005 53.78 280.9 19.15
2005-2006 30.19 329.01 9.18
2006-2007 53.55 403.87 13.26
2007-2008 82.45 438.36 18.81
2008-2009 85.18 537.56 15.85
INTERPRETATION:
Kigher return on 'nestment implies efficient use of assets# the companyDs return on
inestment is in fluctuating stage. 'n -::/--::0 it shows a high return +<.:.;
.
III. ACTIVITY RATIOS
-.2.1 CURRENT ASSETS TURN OVER RATIO
The firm may wish to know its efficiency of utili"ing fi8ed assets and current assets
separately.

Table +0
YEAR SALES CURRENT ASSETS RATIO
2004-2005 286.62 161.36 1.78
2005-2006 302.96 183.22 1.65
2006-2007 369.4 261.97 1.41
2007-2008 463.66 266.16 1.74
2008-2009 644.72 359.74 1.79
INTERPRETATION
This ratio indicates effectie utili"ation of current assets. For one $upee of sale the
company needs aerage $s.:.0: inestment in current assets.
-.2.2 FIEED ASSETS TURNOVER RATIO
The firm may wish to know its efficiency of utili"ing fi8ed assets and current assets
separately.

Table +1
YEAR SALES
FIXED
ASSETS
RATIO
2004-2005 286.62 146.04 1.96261298
2005-2006 302.96 185.26 1.63532333
2006-2007 369.4 241.58 1.52910009
2007-2008 463.66 263.88 1.75708655
2008-2009 644.72 282.4 2.28300283
INTERPRETATION:
This ratio indicates effectie utili"ation of fi8ed assets. For one $upee of sale the
company needs aerage $s.:.0: inestment in fi8ed assets.
-.2.- TOTAL ASSETS TURNOVER RATIO
Assets are used to generate sales. A firm should manage itDs assets to ma8imi"e sales.
The relationship between sales and assets is called assets turnoer ratio. This ratio
ensures the total assets of the company# efficiently used or not and this ratio shows the
firmDs ability in generating sales from all financial resources committed to total asset.

Table +2
YEAR SALES TOTAL ASSETS RATIO
2004-2005 286.62 280.9 1.02
2005-2006 302.96 329.01 0.92
2006-2007 369.4 403.87 0.91
2007-2008 463.66 438.36 1.06
2008-2009 644.72 537.56 1.2
INTERPRETATION:
The high turnoer ratio tells the efficiency of the management and utili"ation of
assets. The low turnoer ratios are indicatie of under utili"ation of aailable
resources and presence of idle capacity. The total assets turnoer ratio is gradually
increasing from -::0-:1 to -::>-:<. 't shows the firm ma8imum utili"ation of its
assets.
-. 2.2 NET :OR+ING CAPITAL TURNOVER RATIO
A firm may also like to relate net current assets Bor net working capital gap@ to sales.
't may thus computer net working capital turnoer by diiding sales by net working
capital is

Table +>
YEAR SALES NET WORKING CAPITAL RATIO
2004-2005 286.62 74.61 3.84
2005-2006 302.96 87.65 3.46
2006-2007 369.4 154.71 2.39
2007-2008 463.66 165.86 2.8
2008-2009 644.72 250.91 2.57
'CT6$P$6TAT'4C
The aerage working capital ratio is ...-/. Thus it is indicated that for one $upee of
sales# the company needs :....-/ of net current assets. The remaining is met from the
long term funds and bank borrowings. 'n the study period the working capital
turnoer ratio was continuously fluctuated.
-.2.3 DE>TORS TURN OVER RATIO
=ebtorDs turnoer ratio or accounts receiable turnoer ratio indicates the elocity of
debt collection of a firm. 'n simple words it indicates the number of times aerage
debtors Breceiable@ are turned oer during a year.

Table +<
YEAR N"t Cr"d't S(7"s A6"r()" D"/tors RATIO
-::/--::0 ->1.1- 2+.<> ..<>
-::0--::1 .:-.<1 12.:2 /.0-
-::1--::2 .1<..2 21.1> /.>-
-::2--::> /1..11 >>.+/ 0.-1
-::>--::< 1//.2- ++<.11 0..<
INTERPRETATION
The higher the alue of debtorsD turnoer the more efficient is the management of
debtors or more li!uid the debtors are. Similarly# low debtors turnoer ratio implies
inefficient management of debtors or less li!uid debtors. =ebtors turnoer ratio shows
a higher alue# in -::/--::0 it is ..<> and it continuously increases# in -::>--::< it
recorded as 0..<.
-.2.< INVENTORY TURN OVER RATIO:
Stoc8 tur#o6"r r(t'o , I#6"#tor$ tur#o6"r r(t'o indicates the number of time the
stock has been turned oer during the period and ealuates the efficiency with which a
firm is able to manage its inentory.
Table -:

YEAR Cost o Goods So7d A6"r()" Stoc8 RATIO
-::/-
-::0
+<<.12 2:.20 -.>-
-::0-
-::1
-/2./0 <+.</ -.1<
-::1-
-::2
-2>.1- +:1..2 -.1-
-::2-
-::>
.0/.:0 +-:.<. -.<.
-::>-
-::<
0:/./ +//..1 ../<
INFERENCE:
?sually a high inentory turnoerEstock elocity indicates efficient management of
inentory because more fre!uently the stocks are soldN the lesser amount of money is
re!uired to finance the inentory. A low inentory turnoer ratio indicates an
inefficient management of inentory. The ratio is increasing eery year# in -::/--::0
it is -.>- and in -::>--::< it is recorded as ../<.
-.2.4 EARNINGS PER S=ARE 9EPS;
The profitability of the shareholdersO inestment can also be measured in many other
ways. 4ne such measure is to calculate the earnings per share. The "(r#'#)s &"r
s!(r" B6PS@ is calculated by diiding the profit after ta8es by the total number of
ordinary shares outstanding.


INTERPRETATION:
6PS simply shows the profitability of the company on a per-share basis. 't is a widely
used ratio in comparing the financial performance of the other companies in the
industry.
-.2. COMPARATIVE STATEMENT:
YEAR PAT
NO. OF EOUITY
SHARE
RATIO
2004-2005 20.94 39.764 5.27
2005-2006 4.15 39.764 1.04
2006-2007 15.81 39.764 3.98
2007-2008 25.92 39.764 6.52
2008-2009 18.35 39.764 4.62

,omparatie statements are financial statements that coer a different time frame# but
are formatted in a manner that makes comparing line items from one period to those
of a different period an easy process. This !uality means that the comparatie
statement is a financial statement that lends itself well to the process of comparatie
analysis. %any companies make use of standardi"ed formats in accounting functions
that make the generation of a comparatie statement !uick and easy.
I%&ort(#c" (#d Us"s
The benefits of a comparatie statement are aried for a corporation. Because of the
uniform format of the statement# it is a simple process to compare the gross sales of a
gien product or all products of the company with the gross sales generated in a
preious month# !uarter# or year.
,omparing generated reenue from one period to a different period can add
another dimension to analy"ing the effectieness of the sales effort# as the
process makes it possible to identify trends such as a drop in reenue in spite
of an increase in units sold.
Along with being an e8cellent way to broaden the understanding of the
success of the sales effort# a comparatie statement can also help address
changes in production costs
F"(tur"s o Co%&(r(t'6" St(t"%"#ts:
+@ A comparatie statement adds meaning to the financial data.
-@ 't is used to effectiely measure the conduct of the business actiities.
.@ ,omparatie statement analysis is used for intra firm analysis and inters firm
analysis.
/@ A comparatie statement analysis indicates change in amount as well as change in
percentage.
0@ A positie change in amount and percentage indicates an increase and a negatie
change in amount and percentage indicates a decrease.

-.2.1COMPARATIVE >ALANCE S=EET
For t!" $"(rs 2553-255<
9Rs. I# Cror"s;
Table --
Mar '05 Mar '06
Increae!
Decreae
"
C#an$
e
Sources Of Funds
Total Share Capital 39.76 39.76 0 0
Equity Share Capital 39.76 39.76 0 0
Reserves 38.05 39.93 1.88 4.94
Networth 77.81 79.69 1.88 2.42
Secured Loas !08.86 9".#5 -16.41 -15.07
$secured Loas 95.89 !50.69 54.8 57.15
ota! "e#t 204.75 243.14 38.39 18.75
"effered a$ !%a#%!%t& 4.24 6.18 1.94 45.75
ota! '%a#%!%t%es 286.8 329.01
())!%cat%on Of Funds
%ross &loc' "00."! "50.36 50.15 25.05
Less( )ccu*. +epreciatio 5#.!7 65.! 10.93 20.18
Net *!oc+ 146.04 185.26 39.22 26.86
Capital ,or' i -ro.ress 60.!5 56.0# -4.11 -6.83
/vest*ets 5.9 0 -5.9
(dd, -urrent (ssets
/vetories 70.75 9!.9# 21.19 29.95
Sudry +e0tors 7!.98 67.07 -4.91 -6.82
Cash ad &a' &alace ".#7 3.5! 1.04 42.11
Loas ad )dvaces !6.!6 "0.7 4.54 28.09
ota! -(. 'oans /
(d0ances 161.36 183.22 21.86 13.55
'ess, -urrent !%#%!%t%es
Curret Lia0ilities 80.9! 9".0" 11.11 13.73
-rovisios 5.86 3.5# -2.32
ota! -' / 1ro0%s%ons 96.25 95.56 -0.69 -0.72
Net -urrent (ssets 74.61 87.65 13.04 17.48
1iscellaeous E2peses 0.! 0.06 -0.04
ota! (ssets 280.9 329.01 48.11 17.13

COMPARATIVE INCOME STATEMENT
For t!" $"(r 2553-255<
9Rs. I# Cror"s;

Mar
'05 Mar '06
Increae!
Decreae
"
C#an$
e
2nco3e
Sales Turover 3!5.87 335.9 -20.03 -6.34
E2cise +uty "9."5 3".9# 3.69 12.62
Net Sa!es 286.62 302.96 16.34 5.7
3ther /co*e 0.5# 0.9" 0.38 70.37
Stoc' )d4ust*ets 58.98 7.#! 16.39 -182.52
ota! 2nco3e 278.18 311.29 33.11 11.9
4$)end%ture
Ra6 1aterials !86.89 "33.68 46.79 25.04
-o6er 7 8uel Cost !86.89 !6.53 0
E*ployee Cost 9.67 !".76 0
3ther 1au9acturi. E2peses 0.59 0.56 -0.03 -5.08
Selli. ad )d*i E2peses !".3! !#.77 2.46 19.98
1iscellaeous E2peses ".39 ".8 0.41 17.15
ota! 4$)enses 224.4 281.1 56.7 25.27
3perati. -ro9it 53."# "9."7 -23.97 -45.02
1*"2 53.78 30.19 0
/terest !0.5 !3.!! 2.61 24.86
1*" 43.28 17.08 -26.2 -60.54
+epreciatio 8.53 !0.9# 2.41 28.25
3ther ,ritte 399 0.0# 0.0# 0 0
1rof%t *efore a$ 34.71 6.1 -28.61 -82.43
-&T :-ost E2tra5ord /te*s; 3#.7! 6.! 0
Ta2 !3.8 !.9# -11.86 -85.94
5e)orted Net 1rof%t 20.94 4.15 -16.79 -80.18
Total <alue )dditio 37.5 #7.#" 9.92 26.45
Equity +ivided 3.98 !.99 -1.99 -50
Corporate +ivided Ta2 0.5" 0."8 -0.24 -46.15

INTERPRETATIONS: For the year of B-::0 5 -::1@
COMPARATIVE >ALANCE S=EET:
There are no changes in share capital.
The resere and surpluses has increased /.</; in -::0.
The debt funds hae increased +>.20; on -::0 in -::1.
Cet Fi8ed assets has increased -1.>1;
The cash and bank balances were increased /-.++; in -::1.
The current assets hae increased +..00; in -::0.
The working capital has increased +2./>;
INCOME STATEMENT:
The net sales were increased 0.2; in -::1.
The PB=T has decreased 1:.0/;.
The operating profit has decreased
PAT has decreased in -::1.

-.2.2 COMPARATIVE >ALANCE S=EET
For t!" $"(rs 255<-2554
9Rs. I# Cror"s;
Table -.
Mar '06 Mar '07
Increae!
Decreae
"
C#an$
e
Sources Of Funds
Reserves 39.93 5!.09 11.16 27.95
Networth 79.69 90.85 11.16 14
Secured Loas 9".#5 !63.83 71.38 77.21
$secured Loas !50.69 !37.3# -13.35 -8.86
ota! "e#t 243.14 301.17 58.03 23.87
"effered a$ !%a#%!%t& 6.18 11.85 5.67 91.75
ota! '%a#%!%t%es 329.01 403.87
%ross &loc' "50.36 3!8."# 67.88 27.11
Less( )ccu*. +epreciatio 65.! 76.66 11.56 17.76
Net *!oc+ 185.26 241.58 56.32 30.4
Capital ,or' i -ro.ress 56.0# 7.5# -48.5 -86.55
/vest*ets 0 0 0
(dd, -urrent (ssets
/vetories 9!.9# !06.37 14.43 15.7
Sudry +e0tors 67.07 76.68 9.61 14.33
Cash ad &a' &alace 3.5! "6.5 22.99 654.99
Loas ad )dvaces "0.7 5".#" 31.72 153.24
ota! -(. 'oans /
(d0ances 183.22 261.97 78.75 42.98
Curret Lia0ilities 9".0" !0!.88 9.86 10.72
-rovisios 3.5# 5.38 1.84
ota! -' / 1ro0%s%ons 95.56 107.26 11.7 12.24
Net -urrent (ssets 87.65 154.71 67.06 76.51
1iscellaeous E2peses 0.06 0.0# -0.02
ota! (ssets 329.01 403.87 74.86 22.75

For t!" $"(r 255<-2554
9Rs. I# Cror"s;
Mar '06 Mar '07
Increae!
Decreae
"
C#an$
e
2nco3e
Sales Turover 335.9 #!0.#5 74.55 22.19
E2cise +uty 3".9# #!.08 8.14 24.71
Net Sa!es 302.96 369.37 66.41 21.92
3ther /co*e 0.9" ".3" 1.4 152.17
Stoc' )d4ust*ets 7.#! #.7! -2.7 -36.44
ota! 2nco3e 311.29 376.4 65.11 20.92
4$)end%ture
Ra6 1aterials "33.68 "68.03 34.35 14.7
-o6er 7 8uel Cost !6.53 !7.03 0.5 3.02
E*ployee Cost !".76 !#.83 2.07 16.22
3ther 1au9acturi.
E2peses 0.56 #.99 4.43 791.07
Selli. ad )d*i E2peses !#.77 !#.3" -0.45 -3.05
1iscellaeous E2peses ".8 3.65 0.85 30.36
ota! 4$)enses 281.1 322.85 41.75 14.85
3perati. -ro9it "9."7 5!."3 21.96 75.03
1*"2 30.19 53.55 23.36 77.38
/terest !3.!! "0.3! 7.2 54.92
1*" 17.08 33.24 16.16 94.61
+epreciatio !0.9# !!.57 0.63 5.76
3ther ,ritte 399 0.0# 0.03 -0.01 -25
1rof%t *efore a$ 6.1 21.64 15.54 254.75
-&T :-ost E2tra5ord /te*s; 6.! "!.6# 15.54 254.75
Ta2 !.9# 5.8# 3.9 201.03
5e)orted Net 1rof%t 4.15 15.81 11.66 280.96
Total <alue )dditio #7.#" 5#.8" 7.4 15.61
Equity +ivided !.99 3.98 1.99 100
Corporate +ivided Ta2 0."8 0.68 0.4 142.86

INTERPRETATIONS: For the year of B-::1 5 -::2@
>ALANCE S=EET:
The reseres and surpluses had increased in -::2 by -2.<0;.
The debt funds hae increased around -..>2; on total debt funds on the debt
funds of -::1.
The fi8ed assets hae increased .:./; on the fi8ed assets of -::1.
The debtors hae increased /..; in the year -::2 when compared to the
debtors of the -::1.
The cash and bank balances hae increase 10/.<<; of the cash and bank
balance of the -::1.
The current assets hae increased /-.<>; on the current assets of the -::1.
The current liabilities hae increased +-.-/; on the current liabilities of the
preious year.
The net working capital was increased 21.0+; in the year -::1.
INCOME STATEMENT:
The net sales were decreased -+.<-; in -::2.
The PB='T has decreased 22..>;
The operating profit has increased 20.:.;.
6B'T has increased </.1+; on PB'T of -::2.
PAT has decreased ->:.<1; in -::2.

-.2.- COMPARATIVE >ALANCE S=EET
For t!" $"(rs 2554-255F
9Rs. I# Cror"s;
Table -/
Mar '07 Mar '08
Increae!
Decreae
"
C#an$
e
Sources Of Funds
Reserves 5!.09 7!.8 20.71 40.54
Networth 90.85 111.56 20.71 22.8
Secured Loas !63.83 !78.3" 14.49 8.84
$secured Loas !37.3# !"".7! -14.63 -10.65
ota! "e#t 301.17 301.03 -0.14 -0.05
"effered a$ !%a#%!%t& 11.85 25.77 13.92 117.47
ota! '%a#%!%t%es 403.87 438.36
%ross &loc' 3!8."# 355.!6 36.92 11.6
Less( )ccu*. +epreciatio 76.66 9!."8 14.62 19.07
Net *!oc+ 241.58 263.88 22.3 9.23
Capital ,or' i -ro.ress 7.5# 8.6" 1.08 14.32
/vest*ets 0 0 0
(dd, -urrent (ssets
/vetories !06.37 !"0.93 14.56 13.69
Sudry +e0tors 76.68 88.!# 11.46 14.95
Cash ad &a' &alace "6.5 #." -22.3 -84.15
Loas ad )dvaces 5".#" 5".89 0.47 0.9
ota! -(. 'oans /
(d0ances 261.97 266.16 4.19 1.6
Curret Lia0ilities !0!.88 93.!9 -8.69 -8.53
-rovisios 5.38 7.!! 1.73
ota! -' / 1ro0%s%ons 107.26 100.3 -6.96 -6.49
Net -urrent (ssets 154.71 165.86 11.15 7.21
1iscellaeous E2peses 0.0# 0 -0.04

ota! (ssets 403.87 438.36 34.49 8.54
For t!" $"(r 2554-255F
9Rs. I# Cror"s;
Mar '07 Mar '08
Increae!
Decreae
"
C#an$
e
2nco3e
Sales Turover #!0.#5 #9#.7" 84.27 20.53
E2cise +uty #!.08 3!.06 -10.02 -24.39
Net Sa!es 369.37 463.66 94.29 25.53
3ther /co*e ".3" #.69 2.37 102.16
Stoc' )d4ust*ets #.7! 0.!# -4.57 -97.03
ota! 2nco3e 376.4 468.49 92.09 24.47
4$)end%ture
Ra6 1aterials "68.03 33".69 64.66 24.12
-o6er 7 8uel Cost !7.03 !0.## -6.59 -38.7
E*ployee Cost !#.83 !8.63 3.8 25.62
3ther 1au9acturi.
E2peses #.99 6."7 1.28 25.65
Selli. ad )d*i E2peses !#.3" !#.!9 -0.13 -0.91
1iscellaeous E2peses 3.65 3.8" 0.17 4.66
ota! 4$)enses 322.85 386.04 63.19 19.57
3perati. -ro9it 5!."3 77.76 26.53 51.79
1*"2 53.55 82.45 28.9 53.97
/terest "0.3! "7."7 6.96 34.27
1*" 33.24 55.18 21.94 66
+epreciatio !!.57 !5.!3 3.56 30.77
3ther ,ritte 399 0.03 0.0# 0.01 33.33
1rof%t *efore a$ 21.64 40.01 18.37 84.89
-&T :-ost E2tra5ord /te*s; "!.6# 39.#6 17.82 82.35
Ta2 5.8# !#.! 8.26 141.44
5e)orted Net 1rof%t 15.81 25.92 10.11 63.95
Total <alue )dditio 5#.8" 53.35 -1.47 -2.68

Equity +ivided 3.98 3.98 0 0
Corporate +ivided Ta2 0.68 0.68 0 0
INTERPRETATIONS: for the year of B-::2 5 -::>@
>ALANCE S=EET:
The $eseres and surplus has increased /:.0/; compare to preious year.
The fi8ed assets hae increased <.-.; compare to :2 A :>.
The Sunday debtors increased +/.10; in the year :2 A :>.
The cash 5 bank balance has decreased >/.+0; 5 on the year -::2 A -::>.
,urrent liabilities hae decreased to 1./<; on the year -::2 A -::>.
INCOME STATEMENT:
The net sales were increased -0./.; compared to -::2 A -::>.
PB'=T has increased by 0..02; in -::>.
Profit before ta8 has increased to >-..0; compared to preious year.
PAT has increased to 1..<0; compared to :2 A :>.

-.2.2 COMPARATIVE >ALANCE S=EET
For t!" $"(rs 255F-2551
9Rs. I# Cror"s;
Table -0
Mar '08 Mar '09
Increae!
Decreae
"
C#an$
e
Sources Of Funds
Reserves 7!.8 85.5 13.7 19.08
Networth 111.56 125.26 13.7 12.28
Secured Loas !78.3" ""6.#6 48.14 27
$secured Loas !"".7! !5#.6 31.89 25.99
ota! "e#t 301.03 381.06 80.03 26.59
"effered a$ !%a#%!%t& 25.77 31.24 5.47 21.23
ota! '%a#%!%t%es 438.36 537.56
%ross &loc' 355.!6 389.75 34.59 9.74
Less( )ccu*. +epreciatio 9!."8 !07.35 16.07 17.61
Net *!oc+ 263.88 282.4 18.52 7.02
Capital ,or' i -ro.ress 8.6" #."5 -4.37 -50.7
/vest*ets 0 0 0
(dd, -urrent (ssets
/vetories !"0.93 !##.36 23.43 19.37
Sudry +e0tors 88.!# !!9.66 31.52 35.76
Cash ad &a' &alace #." 3#.6# 30.44 724.76
Loas ad )dvaces 5".89 6!.08 8.19 15.48
ota! -(. 'oans /
(d0ances 266.16 359.74 93.58 35.16
Curret Lia0ilities 93.!9 !0!.08 7.89 8.47
-rovisios 7.!! 7.75 0.64

ota! -' / 1ro0%s%ons 100.3 108.83 8.53 8.5
Net -urrent (ssets 165.86 250.91 85.05 51.28
1iscellaeous E2peses 0 0 0
ota! (ssets 438.36 537.56 99.2 22.63
For t!" $"(r 255F-2551
9Rs. I# Cror"s;
Mar '08 Mar '09
Increae!
Decreae
"
C#an$
e
2nco3e
Sales Turover #9#.7" 680.#7 185.75 37.55
E2cise +uty 3!.06 35.75 4.69 15.1
Net Sa!es 463.66 644.72 181.06 39.05
3ther /co*e #.69 ".! -2.59 -55.22
Stoc' )d4ust*ets 0.!# 5".#7 -2.61
-
1864.29
ota! 2nco3e 468.49 644.35 175.86 37.54
4$)end%ture
Ra6 1aterials 33".69 397.76 65.07 19.56
-o6er 7 8uel Cost !0.## !0.35 -0.09 -0.86
E*ployee Cost !8.63 "!.#3 2.8 15.03
3ther 1au9acturi.
E2peses 6."7 5.56 -0.71 -11.32
Selli. ad )d*i E2peses !#.!9 !7.3" 3.13 22.06
1iscellaeous E2peses 3.8" #.53 0.71 18.59
ota! 4$)enses 386.04 553.59 167.55 43.4
3perati. -ro9it 77.76 88.66 10.9 14.02
1*"2 82.45 85.18 2.73 3.31
/terest "7."7 #0.5# 13.27 48.66
1*" 55.18 44.64 -10.54 -19.1
+epreciatio !5.!3 !6.#" 1.29 8.53
3ther ,ritte 399 0.0# 0 -0.04 -100
1rof%t *efore a$ 40.01 28.22 -11.79 -29.47
-&T :-ost E2tra5ord /te*s; 39.#6 "8."" -11.24 -28.48
Ta2 !#.! 9.88 -4.22 -29.93
5e)orted Net 1rof%t 25.92 18.35 -7.57 -29.21

Total <alue )dditio 53.35 59.!8 5.83 10.93
-re9erece +ivided 0 0 0
Equity +ivided 3.98 3.98 0 0
Corporate +ivided Ta2 0.68 0.68 0 0
INTERPRETATIONS: or t!" $"(r o 9255F G 2551)
>ALANCE S=EET:
The $eseres and surplus has increased 19.08; compare to preious year.
The fi8ed assets hae increased 2.:-; compare to :> A :<.
The Sunday debtors increased .0.21; in the year :> A :<.
The cash 5 bank balance has increased by 2-/.21; on the year -::> A -::<.
,urrent liabilities hae increased to >.0; on the year -::> A -::<.
INCOME STATEMENT:
The net sales were increased .0.:<; compared to -::> A -::<.
Profit before ta8 has decreased to -<./2; compared to preious year.
PAT has decreased to -<.-+; compared to :> A :<.

-.-. COMMON SIHE FINANCIAL STATEMENTS
,ommon si"e ratios are used to compare financial statements of different-si"e
companies or of the same company oer different periods. By e8pressing the items in
proportion to some si"e-related measure# standardi"ed financial statements can be
created# reealing trends and proiding insight into how the different companies
compare.
The common si"e ratio for each line on the financial statement is calculated as
follows*
F"(tur"s o Co%%o# S'I" St(t"%"#t
+. A common si"e statement analysis indicates the relation of each component to the
whole.
-. 'n case of a ,ommon Si"e 'ncome statement analysis Cet Sales is taken as +::;
and in case of ,ommon Si"e Balance Sheet analysis total funds aailableEtotal capital
employed is considered as +::;.
.. 't is used for ertical financial analysis and comparison of two business enterprises
or two years financial data.
L'%'t(t'o#s
As with financial statements in general# the interpretation of common si"e statements
is sub)ect to many of the limitations in the accounting data used to construct them. For
e8ample*

+. =ifferent accounting policies may be used by different firms or within the same
firm at different points in time. Ad)ustments should be made for such differences.
-. =ifferent firms may use different accounting calendars# so the accounting periods
may not be directly comparable.
-.-.1 COMMON SIHE >ALANCE S=EET
For t!" $"(rs 2553 G 255<
9Rs. I# Cror"s;
Table -1
Mar '05 6-7(N84 Mar '06 6-7(N84
Sources Of Funds
Total Share Capital 39.76 !3.86 39.76 !".08
Equity Share Capital 39.76 !3.86 39.76 !".08
Reserves 38.05 !3."7 39.93 !".!#
Networth 77.81 "7.!3 79.69 "#.""
Secured Loas !08.86 37.96 9".#5 "8.!
$secured Loas 95.89 33.#3 !50.69 #5.8
ota! "e#t 204.75 7!.39 243.14 73.9
"effered a$ !%a#%!%t& 4.24 !.#8 6.18 !.88
ota! '%a#%!%t%es 286.8 !00 329.01 !00
%ross &loc' "00."! 69.8! "50.36 76.09
Less( )ccu*. +epreciatio 5#.!7 !8.89 65.! !9.79
Net *!oc+ 146.04 50.9" 185.26 56.3!
Capital ,or' i -ro.ress 60.!5 "0.97 56.0# !7.03
/vest*ets 5.9 ".06 0 0
(dd, -urrent (ssets
/vetories 70.75 "#.67 9!.9# "7.9#
Sudry +e0tors 7!.98 "5.! 67.07 "0.39
Cash ad &a' &alace ".#7 0.86 3.5! !.07
Loas ad )dvaces !6.!6 5.63 "0.7 6."9
ota! -(. 'oans /
(d0ances 161.36 56."6 183.22 55.69

Curret Lia0ilities 80.9! "8."! 9".0" "7.97
-rovisios 5.86 ".0# 3.5# !.08
ota! -' / 1ro0%s%ons 96.25 33.56 95.56 "9.0#
Net -urrent (ssets 74.61 "6.0! 87.65 "6.6#
1iscellaeous E2peses 0.! 0.03 0.06 0.0"
ota! (ssets 280.9 97.9# 329.01 !00
For t!" $"(rs 2553 G 255<
9Rs. I# Cror"s;
Table -2
Mar '05 6-7(N84 Mar '06 6-7(N84
2nco3e
Sales Turover 3!5.87 !!0."! 335.9 !!0.87
E2cise +uty "9."5 !0."! 3".9# !0.87
Net Sa!es 286.62 !00 302.96 !00
3ther /co*e 0.5# 0.!9 0.9" 0.3
Stoc' )d4ust*ets 58.98 53.!3 7.#! ".#5
ota! 2nco3e 278.18 97.06 311.29 !0".75
4$)end%ture 0 0
Ra6 1aterials !86.89 65." "33.68 77.!3
-o6er 7 8uel Cost !86.89 65." !6.53 5.#6
E*ployee Cost 9.67 3.37 !".76 #."!
3ther 1au9acturi.
E2peses 0.59 0."! 0.56 0.!8
Selli. ad )d*i
E2peses !".3! #."9 !#.77 #.88
1iscellaeous E2peses ".39 0.83 ".8 0.9"
-reoperative E2p
Capitalised 0 0 0 0
ota! 4$)enses 224.4 78."9 281.1 9".78
3perati. -ro9it 53."# !8.58 "9."7 9.66
1*"2 53.78 !8.76 30.19 9.97
/terest !0.5 3.66 !3.!! #.33
1*" 43.28 !5.! 17.08 5.6#
+epreciatio 8.53 ".98 !0.9# 3.6!

3ther ,ritte 399 0.0# 0.0! 0.0# 0.0!
1rof%t *efore a$ 34.71 !".!! 6.1 ".0!
E2tra5ordiary ite*s 0 0 0 0
-&T :-ost E2tra5ord /te*s; 3#.7! !".!! 6.! ".0!
Ta2 !3.8 #.8! !.9# 0.6#
5e)orted Net 1rof%t 20.94 7.3! 4.15 !.37
Total <alue )dditio 37.5 !3.08 #7.#" !5.65
Equity +ivided 3.98 !.39 !.99 0.66
INTERPRETATION FOR COMMON SIHE STATEMENT:
>ALANCE S=EET:
,ommon si"e financial statement is gien aboe reeals of the total assets is
taken +::; in the years -::0 A -::1.
The common si"e balance sheet that shows the $esere and surplus in -::0
+..-2; and -::1 is +-.-/; increase the surplus resere and surplus.
Cet 7orth has -2.+.; and -/.--; decrease in the preious year compared.
Cet block has -::0 is 0:.<-; and 01..+; increased in -::1.
Sundry debtors increased to "5.!; and "0.39; decrease in -::1.
,ash 5 bank balance has 0.87; is taken -::0 and -::1 has !.07; that is
slowly decreased bank balance.
The net current assets hae "6.0!; in the year -::0 and "6.6#; decreased in
the -::1.
INCOME STATEMENT:
,ommon si"e income statement is gien aboe reeals of the $eenue from
sales is taken +::; in the years -::0 A -::1.
PB='T has 18.86; is taken year -::1 and 9.97; compared to preious year
is increased.

6B'T has 12.11; in the year -::0 and 10.1; increase to 6B'T in the year
-::1.
Profit after ta8 7.31; in the year -::0 and increase the general resere
1.37; in the year -::1.
-.-.- COMMON SIHE >ALANCE S=EET
For t!" $"(rs 2554. 255F G 2551
9Rs. I# Cror"s;
Table ->

For t!" $"(rs 2554. 255F G 2551
9Rs. I# Cror"s;
Table -<
Mar '07 6-7(N84 Mar '08 6-7(N84 Mar '09 6-7(N84
Sources Of Funds
Total Share Capital 39.76 9.8# 39.76 9.07 39.76 7.4
Equity Share Capital 39.76 9.8# 39.76 9.07 39.76 7.4
Reserves 5!.09 !".65 7!.8 !6.38 85.5 15.91
Networth 90.85 "".#9 111.56 "5.#5 125.26 23.3
Secured Loas !63.83 #0.57 !78.3" #0.68 ""6.#6 42.13
$secured Loas !37.3# 3#.0! !"".7! "7.99 !5#.6 28.76
ota! "e#t 301.17 7#.57 301.03 68.67 381.06 70.89
"effered a$ !%a#%!%t& 11.85 ".93 25.77 5.88 31.24 5.81
ota! '%a#%!%t%es 403.87 !00 438.36 !00 537.56 100
%ross &loc' 3!8."# 78.8 355.!6 8!.0" 389.75 72.5
Less( )ccu*.
+epreciatio 76.66 !8.98 9!."8 "0.8" !07.35 19.97
Net *!oc+ 241.58 59.8" 263.88 60." 282.4 52.53
Capital ,or' i
-ro.ress 7.5# !.87 8.6" !.97 #."5 0.79
/vest*ets 0 0 0 0 0 0
(dd, -urrent (ssets
/vetories !06.37 "6.3# !"0.93 "7.59 !##.36 26.85
Sudry +e0tors 76.68 !8.99 88.!# "0.!! !!9.66 22.26
Cash ad &a' &alace "6.5 6.56 #." 0.96 3#.6# 6.44
Loas ad )dvaces 5".#" !".98 5".89 !".07 6!.08 11.36
ota! -(. 'oans /
(d0ances 261.97 6#.86 266.16 60.7" 359.74 66.92
Curret Lia0ilities !0!.88 "5."3 93.!9 "!."6 !0!.08 18.8
-rovisios 5.38 !.33 7.!! !.6" 7.75 1.44
ota! -' / 1ro0%s%ons 107.26 "6.56 100.3 "".88 108.83 20.25
Net -urrent (ssets 154.71 38.3! 165.86 37.8# 250.91 46.68
1iscellaeous E2peses 0.0# 0.0! 0 0 0 0
ota! (ssets 403.87 !00 438.36 !00 537.56 100

Mar '07 6-7(N84 Mar '08 6-7(N84 Mar '09 6-7(N84
2nco3e
Sales Turover #!0.#5 !!!.!" #9#.7" !06.7 680.#7 105.55
E2cise +uty #!.08 !!.!" 3!.06 6.7 35.75 5.55
Net Sa!es 369.37 !00 463.66 !00 644.72 100
3ther /co*e ".3" 0.63 #.69 !.0! 53.#8 -0.54
Stoc' )d4ust*ets #.7! !."8 0.!# 0.03 5".#7 -0.38
ota! 2nco3e 376.4 !0!.9 468.49 !0!.0# 638.77 99.08
4$)end%ture 0 0 0
Ra6 1aterials "68.03 7".56 33".69 7!.75 #9#.# 76.68
-o6er 7 8uel Cost !7.03 #.6! !0.## "."5 !0.35 1.61
E*ployee Cost !#.83 #.0! !8.63 #.0" "!.#3 3.32
3ther 1au9acturi.
E2peses #.99 !.35 6."7 !.35 5.56 0.86
Selli. ad )d*i
E2peses !#.3" 3.88 !#.!9 3.06 !7.3" 2.69
1iscellaeous E2peses 3.65 0.99 3.8" 0.8" #.53 0.7
-reoperative E2p
Capitalised 0 0 0 0 0 0
ota! 4$)enses 322.85 87.#! 386.04 83."6 553.59 85.87
3perati. -ro9it 5!."3 !3.87 77.76 !6.77 88.66 13.75
1*"2 53.55 !#.5 82.45 !7.78 85.18 13.21
/terest "0.3! 5.5 "7."7 5.88 #0.5# 6.29
1*" 33.24 9 55.18 !!.9 44.64 6.92
+epreciatio !!.57 3.!3 !5.!3 3."6 !6.#" 2.55
3ther ,ritte 399 0.03 0.0! 0.0# 0.0! 0 0
1rof%t *efore a$ 21.64 5.86 40.01 8.63 28.22 4.38
E2tra5ordiary ite*s 0 0 50.55 50.!" 0 0
-&T :-ost E2tra5ord
/te*s; "!.6# 5.86 39.#6 8.5! "8."" 4.38
Ta2 5.8# !.58 !#.! 3.0# 9.88 1.53
5e)orted Net 1rof%t 15.81 #."8 25.92 5.59 18.35 2.85
INTERPRETATION FOR COMMON SIHE INCOMESTATEMENT
>ALANCE S=EET:

,ommon si"e financial statement is gien aboe reeals of the total assets is
taken +::; in the years -::2# -::> 5-::<.
,ommon si"e balance sheet shows that the resere and surplus increasing
from +-.-0; to +1.>0; in -::2-:> and again decreased to +0.1+; in -::<.
Fi8ed assets hae increased from 0<.>-; to 1:.-; in -::2--::> and
decreased to 58.8"= i "009.
The current assets are continuously increased as compared to preious year
Cet current assets hae increased continuously year by year.
INCOME STATEMENT:
The common si"e income statement is gien aboe reeals of the $eenue
from Sales is taken +:: in the years -::2# -::> 5-::<.
The PB'=T increased from +/.0; to +2.2+; in the years between -::2--::>.
'n the year -::2 A -::>N it could not help to improe profit.
PAT has decreased compare to the preious years.
4ther income has increased
'n eery year the company is slowly improes its performance.
't is found the satisfactory position of the company.
-.2. TREND STATEMENT:
Trend analysis calculates the percentage change for one account oer a period of time
of two years or more.

P"rc"#t()" c!(#)"
To calculate the percentage change between two periods*
,alculate the amount of the increaseE Bdecrease@ for the period by subtracting
the earlier year from the later year.
'f the difference is negatie# the change is a decrease and if the difference is
positie# it is an increase.
=iide the change by the earlier year&s balance. The result is the percentage
change.
Tr"#d &"rc"#t()"s
To calculate the change oer a longer period of time the following is the formula for
calculating trend for the data*
N
Y
e
= a + b(X)
-.2.1 Tr"#d (#(7$s's or N"t S(7"s
Table .:

YEARS
%X&
NET
SALES %Y&
X'X
( A X
)
XY
2004-
05 286.62 -2 4 -573.24
2005-
06 302.9 -1 1 -302.9
2006-
07 369.37 0 0 0
2007-
08 463.66 1 1 463.66
2008-
09 644.72 2 4 1289.44

2067.27 0

2
=
10
R 413.54N R 80.696
Y
e
= a + b(X)
2009-10 = 413.454 + 80.696(3) = 676.633
2010-11 = 413.454 +80.696(4) = 764.329
The estimated net sales for -::<-+: is 121.1.. and the estimated net sales for -:+:-
++ is 21/..-< that mean in future net sales has been increasing.


-.2.2 Tr"#d (#(7$s's or Tot(7 I#co%"
Table .+
YEARS
%X&
TOTAL
INCOME %Y&
X'X
( A
X
)
XY
2004-
05
)*+,-+ -2 4 -556.36
2005-
06
.--,)/ -1 1 -311.29
2006-
07
.*0,1 0 0 0
2007-
08
10+,1/ 1 1 468.49
2008-
09
0.+,** 2 4 1277.54
2073.13
0

2
=
10
R /+/.1-1; R 87.838
Y
e
= a + b(X)
2009-10 = 414.626 + 87.838(3) = 678.14
2010-11 = 413.626 +87.838(4) = 765.978
The estimated Total income for -::<-+: is 12>.+/ and the estimated Total income for
-:+:-++ is 210.<2> that mean in future Total income has been increasing.


-.2.- Tr"#d (#(7$s's or Tot(7 EJ&"#s"s
Table .-
YEARS
%X&
TOTAL
EXPENSES %Y&
X'X
( A
X
)
XY
2004-
05
))1,1 -2 4 -448.8
2005-
06
)+-,- -1 1 -281.1
2006-
07
.)),+2 0 0 0
2007-
08
.+0,31 1 1 386.04
2008-
09
22.,2/ 2 4 1107.18
1767.98
0

2
=
10
R .0..0<1; R 76.3596
Y
e
= a + b(X)
2009-10 = 353.596 + 152.664(3) = 582.67
2010-11 = 353.596 +152.664(4) = 659.03

The estimated Total 68penses for -::<-+: is 0>-.12 and the estimated Total 68penses
for -:+:-++ is 10<.:. that mean in future Total 68penses has been increasing.
-.2.2Tr"#d (#(7$s's or Pro't /"or" D"&r"c'(t'o#. I#t"r"st (#d T(J
Table ..
YEARS
%X&
PBDIT %Y&
X'X
( A
X
)
XY
2004-
05
2.,*+ -2 4 -107.56
2005-
06
.3,-/ -1 1 -30.19
2006-
07
2.,22 0 0 0
2007-
08
+),12 1 1 82.45
2008-
09
+2,-+ 2 4 170.36

305.15 0

2
=
10
R 1+.:.; R 11.506

Y
e
= a + b(X)
2009-10 = 61.03 + 23.012(3) = 95.548
2010-11 =61.03 +23.012(4) = 107.054
The estimated PB='T for -::<-+: is <0.0/> and the estimated PB='T for -:+:-++ is
+:2.0/ that mean in future PB='T has been increasing.
-.2.3 Tr"#d (#(7$s's or N"t &ro't
Table ./
YEARS
%X&
NET
PROFIT %Y&
X'X
( A
X
)
XY
2004-
05
)3,/1 -2 4 -41.88
2005-
06
1,-2 -1 1 -4.15
2006-
07
-2,+- 0 0 0
2007-
08
)2,/) 1 1 25.92
2008-
09
-+,.2 2 4 36.7
85.17
0

2
=
10

R +2.:./; R 1.659
Y
e
= a + b(X)
2009-10 = 17.034 + 3.318(3) = 22.011
2010-11 =17.034 +3.318(4) = 23.67
The estimated Cet profit for -::<-+: is --.:++ and the estimated Cet profit for -:+:-
++ is -..12 that mean in future Cet profit has been increasing.
-.2.< Tr"#d (#(7$s's or F'J"d Ass"ts
Table .0
YEARS
%X&
FIXED
ASSETS %Y&
X'X
( A
X
)
XY
2004-
05
-10,31 -2 4 -292.08
2005-
06
-+2,)0 -1 1 -185.26
2006-
07
)1-,2+ 0 0 0

2007-
08
)0.,++ 1 1 263.88
2008-
09
)+),1 2 4 564.8
1119.16
0

2
=
10
R --..>.-; R 35.134
Y
e
= a + b(X)
2009-10 = 223.832 + 70.268(3) = 329.234
2010-11 =223.832 +70.268(4) = 364.368
The estimated fi8ed assets for -::<-+: is .-<.-./ and the estimated Fi8ed assets for
-:+:-++ is .1/..1> that mean in future Fi8ed assets has been increasing.
-.2.4 Tr"#d (#(7$s's or Tot(7 Ass"ts
Table .1
YEARS Tot(7 Ass"ts 9Y; X'X X
)
XY

%X& ( A
2004-
05
)+),20 -2 4 -565.12
2005-
06
.)),+. -1 1 -322.83
2006-
07
./),3) 0 0 0
2007-
08
1-),2/ 1 1 412.59
2008-
09
230,.) 2 4 1012.64

1916.32 0

2
=
10
R .>..-1/; R 53.728
Y
e
= a + b(X)
2009-10 = 383.264+ 107.456 (3) = 544.44
2010-11 =383.264+107.456 (4) = 598.168
The estimated Total assets for -::<-+: are 0//.//and the estimated Total assets for
-:+:-++ is 0<>.+1> that mean in future Total assets has been increasing.


-.2.F Tr"#d (#(7$s's or D"/t-ECu't$ R(t'o
Table .2
YEAR DE>T- E@UITYRATIO
X'X
( A
X
)
XY
-::/--::0 -.1. -2 4 -5.26
-::0--::1 ..:0 -1 1 -3.05
-::1--::2 ...+ 0 0 0
-::2--::> -.2 1 1 2.7
-::>--::< ..:/ 2 4 6.08
14.73
0

2
=
10
R -.</1; R :.:/2
Y
e
= a + b(X)
2009-10 = 2.946+ 0.047 (3) = 2.087
2010-11 =2.946+0.047 (4) = 3.134
The estimated =ebt-6!uity $atio for -::<-+: is -.:>2 and the estimated =ebt-6!uity
$atio for -:+:-++ is ..+./ that mean in future =ebt-6!uity $atio has been increasing.

-.2.1 Tr"#d (#(7$s's or Pro&r'"t(r$ R(t'o
Table .>
Y"(r Pro&r'"t(r$ R(t'o
X'X
( A X
)
XY
-::/-
-::0 :.-> -2 4 -0.56
-::0-
-::1 :.-/ -1 1 -0.24
-::1-
-::2 :.-- 0 0 0
-::2-
-::> :.-0 1 1 0.25
-::>-
-::< :.-. 2 4 0.46
_R +.-- _=0
_ 2 =
10
_ =-
0.09
R :.-//; R -:.::<N
Y
e
= a + b(X)
2009-10 = 0.244 + -0.009 (3) = 0.217
2010-11 = 0.244 +-0.009 (4) = 0.208
The estimated Proprietary $atio for -::<-+: is :.-+2 and the estimated Proprietary
$atio for -:+:-++ is :.-:> that mean in future Proprietary $atio has been decreasing.

-.2.15 Tr"#d (#(7$s's or Tot(7 D"/t R(t'o
Table .<
Y"(r
Tot(7 D"/t
R(t'o
X'X
( A X
)
XY
-::/-
-::0 :.2. -2 4 -1.46
-::0-
-::1 :.2/ -1 1 -0.74
-::1-
-::2 :.20 0 0 0
-::2-
-::> :.1< 1 1 0.69
-::>-
-::< :.2+ 2 4 1.42
_R ..1- _=0
_ 2 =
10
_ =-
0.09
R :.2-/; R -:.::<N
Y
e
= a + b(X)
2009-10 = 0.724 + -0.009 (3) = 0.697
2010-11 = 0.724 +-0.009 (4) = 0.688

The estimated Total =ebt $atio for -::<-+: is :.1<2 and the estimated Total =ebt
$atio for -:+:-++ is :.1>> that mean in future Total =ebt has been decreasing.

-.2.11 Tr"#d (#(7$s's or Curr"#t R(t'o
Table /:
YEAR
CURRENT
RATIO
X'X
( A X
)
XY
2004-
2005 1.68 -2 4 -3.36
2005-
2006 1.92 -1 1 -1.92
2006-
2007 2.44 0 0 0
2007-
2008 2.65 1 1 2.65
2008-
2009 3.31 2 4 6.62
_= 12 _=0
_ 2 =
10
_ =
3.99
R -./; R :..<<N

Y
e
= a + b(X)
2009-10 = 2.4 + 0.399 (3) = 3.597
2010-11 = 2.4 + 0.399 (4) = 3.996
The estimated ,urrent $atio for -::<-+: is ..0<2 and the estimated ,urrent $atio for
-:+:-++ is ..<<1 that mean in future ,urrent $atio has been increasing.
-.2.12 Tr"#d (#(7$s's or @u'c8 R(t'o
Table /+
YEAR
QUICK
RATIO
X'X
( A X
)
XY
2004-
2005 0.94 -2 4 -1.88
2005-
2006 0.96 -1 1 -0.96
2006-
2007 1.45 0 0 0
2007-
2008 1.45 1 1 1.45
2008-
2009 1.98 2 4 3.96
_= 6.78 _=0
_ 2 =
10
_ =
2.57

R +..01; R :.-02N
Y
e
= a + b(X)
2009-10 = 1.356 + 0.257 (3) = 2.217
2010-11 = 1.356 + 0.257 (4) = 2.384
The estimated Luick $atio for -::<-+: is -.-+2 and the estimated Luick $atio for
-:+:-++ is -..>/ that mean in future Luick $atio has been increasing.
-.2.1- Tr"#d (#(7$s's or C(s! R(t'o
Table /-
YEAR
CASH
RATIO
X'X
( A X
)
XY
2004-
2005 0.02 -2 4 -0.04
2005-
2006 0.02 -1 1 -0.02
2006-
2007 0.1 0 0 0
2007-
2008 0.02 1 1 0.02
2008-
2009 0.1 2 4 0.2
_= 0.26 _=0
_ 2 =
10
_ =
0.16

R :.:0-; R :.:+1N
Y
e
= a + b(X)
2009-10 = 0.052+ 0.016 (3) = 0.1
2010-11 = 0.052+ 0.016 (4) = 0.116
The estimated ,ash $atio for -::<-+: is :.+ and the estimated ,ash $atio for -:+:-
++ is :.++1 that mean in future ,ash $atio has been increasing.
-.2.12 Tr"#d (#(7$s's or N"t Pro't R(t'o
Table /.
YEAR
NET PROFIT
RATIO
X'X
( A X
)
XY
2004-
2005 7.31 -2 4 -14.62
2005-
2006 1.37 -1 1 -1.37
2006-
2007 4.28 0 0 0

2007-
2008 5.6 1 1 5.6
2008-
2009 2.854 2 4 5.708
_= 21.414 _=0
_ 2 =
10
_ =
-4.682
R /.->->; R -:./1>-N
Y
e
= a + b(X)
2009-10 = 4.2828+ -0.4682 (3) = 2.8782
2010-11 = 4.2828+ -0.4682 (4) = 2.41
The estimated Cet Profit $atio for -::<-+: is -.>2>- and the estimated Cet Profit
$atio for -:+:-++ is -./+ that mean in future Cet Profit $atio has been decreasing.
-.2.13 Tr"#d (#(7$s's or Gross Pro't R(t'o
Table //
YEAR
GROSS PROFIT
RATIO
X'X
( A X
)
XY
2004-
2005 30.42 -2 4 -60.84
2005-
2006 17.41 -1 1 -17.41
2006-
2007 22.93 0 0 0

2007-
2008 30.5 1 1 30.5
2008-
2009 23.31 2 4 46.62
_= 124.57 _=0
_ 2 =
10
_ =
-1.13
R -/.<+/; R -+.+.N
Y
e
= a + b(X)
2009-10 = 24.914+ -0.113 (3) = 24.576
2010-11 = 24.914+ -0.113 (4) = 24.462
The estimated Mross Profit $atio for -::<-+: is -/.021 and the estimated Mross Profit
$atio for -:+:-++ is -/./1- that mean in future Mross Profit $atio has been
decreasing.

-.2.1< Tr"#d (#(7$s's or O&"r(t'#) Pro't R(t'o
Table /0
YEAR
OPERATING PROFIT
RATIO
X'X
( A X
)
XY

2004-
2005 18.58 -2 4 -37.16
2005-
2006 9.66 -1 1 -9.66
2006-
2007 13.87 0 0 0
2007-
2008 16.77 1 1 16.77
2008-
2009 13.75 2 4 27.5
_= 72.63 _=0
_ 2 =
10
_ =
-2.55
R 2-.1.; R --.00N
Y
e
= a + b(X)
2009-10 = 72.63+ -2.55 (3) = 13.761
2010-11 = 72.63+ -2.55 (4) = 13.506
The estimated 4perating Profit $atio for -::<-+: is +..21+ and the estimated
4perating Profit $atio for -:+:-++ is +..0:1 that mean in future 4perating Profit
$atio has been decreasing.
-.2.14 Tr"#d (#(7$s's or R"tur# o# C(&'t(7 E%&7o$"d R(t'o

Table /1
YEAR
RETURN ON CAPITAL
EMPLOYED
X'X
( A X
)
XY
2004-
2005 7.45 -2 4 -14.9
2005-
2006 1.26 -1 1 -1.26
2006-
2007 3.91 0 0 0
2007-
2008 5.91 1 1 5.91
2008-
2009 3.41 2 4 6.82
_= 21.94 _=0
_ 2 =
10
_ =
-3.43
R /..>>; R -:../.N
Y
e
= a + b(X)
2009-10 = 4.388 + -0.343 (3) = 3.359
2010-11 = 4.388 + -0.343 (4) = 3.016
The estimated $eturn on ,apital 6mployed for -::<-+: is ...0< and the estimated
$eturn on ,apital 6mployed for -:+:-++ is ..:+1 that mean in future $eturn on
,apital 6mployed has been decreasing.

-.2.1F Tr"#d (#(7$s's or R"tur# o# N"t :ort! R(t'o
Tabl /2
YEAR
RETURN ON NET
WORTH
X'X
( A X
)
XY
2004-
2005 26.91 -2 4 -53.82
2005-
2006 5.2 -1 1 -5.2
2006-
2007 17.4 0 0 0
2007-
2008 23.23 1 1 23.23
2008-
2009 14.65 2 4 29.3
_= 87.39 _=0
_ 2 =
10
_ =
-6.49
R +2./2>; R -:.1/<N
Y
e
= a + b(X)
2009-10 = 17.478 + -0.649 (3) = 15.549
2010-11 = 17.478+ -0.649 (4) = 14.889

The estimated $eturn on Cet 7orth for -::<-+: is +0.0/< and the estimated $eturn
on Cet 7orth for -:+:-++ is +/.>>< that mean in future $eturn on Cet 7orth has
been decreasing.
-.2.11 Tr"#d (#(7$s's or R"tur# o# I#6"st%"#t R(t'o
Table/>
YEAR
RETURN ON
INVESTMENT
X'X
( A X
)
XY
2004-
2005 19.15 -2 4 -38.3
2005-
2006 9.18 -1 1 -9.18
2006-
2007 13.26 0 0 0
2007-
2008 18.81 1 1 18.81
2008-
2009 15.85 2 4 31.7
_= 76.25 _=0
_ 2 =
10
_ =
3.03
R +0.-0; R :..:.N
Y
e
= a + b(X)

2009-10 = 15.25 + 0.303(3) = 16.159
2010-11 = 15.25+ 0.303 (4) = 16.462
The estimated $eturn on 'nestment for -::<-+: is +1.+0< and the estimated $eturn
on 'nestment for -:+:-++ is +1./1- that mean in future $eturn on 'nestment has
been increasing.
-.2.25 Tr"#d (#(7$s's or Curr"#t Ass"ts Tur#o6"r R(t'o:
Table /<
YEAR
CURRENT ASSETS TURN
OVER RATIO
X'X
( A X
)
XY
2004-
2005 1.78 -2 4 -3.56
2005-
2006 1.65 -1 1 -1.65
2006-
2007 1.41 0 0 0
2007-
2008 1.74 1 1 1.74
2008-
2009 1.79 2 4 3.58
_= 8.37 _=0
_ 2 =
10
_ =
0.11

R +.12/; R :.:++N
Y
e
= a + b(X)
2009-10 = 1.674 + 0.011(3) = 1.707
2010-11 = 1.674+ 0.011 (4) = 1.718
The estimated ,urrent Assets Turn oer $atio for -::<-+: is +.2:2 and the estimated
,urrent Assets Turn oer $atio for -:+:-++ is +.2+> that mean in future ,urrent
Assets Turn oer $atio has been increasing.
-.2.21 Tr"#d (#(7$s's or F'J"d Ass"ts Tur#o6"r R(t'o:
Table 0:
YEAR
FIXED ASSETS TURN
OVER RATIO
X'X
( A X
)
XY
2004-
2005 1.96 -2 4 -3.92
2005-
2006 1.64 -1 1 -1.64
2006-
2007 1.53 0 0 0
2007-
2008 1.76 1 1 1.76
2008-
2009 2.28 2 4 4.56

_= 9.17 _=0
_ 2 =
10
_ =
0.76
R +.>./; R :.:21N
Y
e
= a + b(X)
2009-10 = 1.834 + 0.076 (3) = 2.062
2010-11 = 1.834 + 0.076 (4) = 2.138
The estimated Fi8ed Assets Turnoer $atio for -::<-+: is -.:1- and the estimated
Fi8ed Assets Turnoer $atio for -:+:-++ is -.+.> that mean in future Fi8ed Assets
Turnoer $atio has been increasing.
-.2.22 Tr"#d (#(7$s's or Tot(7 Ass"ts Tur#o6"r R(t'o:
Table 0+
YEAR
TOTAL ASSETS TURN
OVER RATIO
X'X
( A X
)
XY
2004-
2005 1.02 -2 4 -2.04
2005-
2006 0.92 -1 1 -0.92
2006- 0.91 0 0 0

2007
2007-
2008 1.06 1 1 1.06
2008-
2009 1.2 2 4 2.4
_= 5.11 _=0
_ 2 =
10
_ =0.
5
R +.:--; R :.:0N
Y
e
= a + b(X)
2009-10 = 1.022 + 0.05 (3) = 1.172
2010-11 = 1.022 + 0.05 (4) = 1.222
The estimated Total Assets Turnoer $atio for -::<-+: is +.+2- and the estimated
Total Assets Turnoer $atio for -:+:-++ is +.--- that means in future Total Assets
-.2.2- Tr"#d (#(7$s's or Tot(7 Ass"ts Tur#o6"r R(t'o:
Table 0-
YEAR
NET WORKING CAPITAL TURN
OVER RATIO
X'X
( A X
)
XY

2004-
2005 3.84 -2 4 -7.68
2005-
2006 3.46 -1 1 -3.46
2006-
2007 2.39 0 0 0
2007-
2008 2.8 1 1 2.8
2008-
2009 2.57 2 4 5.14
_= 15.06 _=0
_ 2 =
10
_ =
-3.2
R ..:+-; R -:..-N
Y
e
= a + b(X)
2009-10 = 3.012 + -0.32 (3) = 2.052
2010-11 = 3.012 + -0.32 (4) = 1.732
The estimated Cet 7orking ,apital Turnoer $atio for -::<-+: is -.:0- and the
estimated Cet 7orking ,apital Turnoer $atio for -:+:-++ is +.2.- that means in
future Cet 7orking ,apital Turnoer $atio has been decreasing.
-.2.22 Tr"#d (#(7$s's or D"/tors Tur#o6"r R(t'o:

Table0.
YEAR
DEBTORS TURN
OVER RATIO
X'X
( A
X
)
XY
-::/-
-::0
..<> -2 4 -7.96
-::0-
-::1
/.0- -1 1 -4.52
-::1-
-::2
/.>- 0 0 0
-::2-
-::>
0.-1 1 1 5.26
-::>-
-::<
0..< 2 4 10.78
_R -..<2 _=0
_ 2 =
10
_ =
3.56
R /.2</; R :..01N
Y
e
= a + b(X)
2009-10 = 4.794 + 0.356 (3) = 5.865
2010-11 = 4.794 + 0.356 (4) = 6.221
The estimated =ebtors Turnoer $atio for -::<-+: is 0.>10 and the estimated =ebtors
Turnoer $atio for -:+:-++ is 1.--+ that means in future =ebtors Turnoer $atio has
been increasing.

-.2.23 Tr"#d (#(7$s's or I#6"#tor$ Tur#o6"r R(t'o:
Table0/
YEAR
INVENTORY TURN
OVER RATIO
X'X
( A X
)
XY
-::/-
-::0 -.>- -2 4 -5.64
-::0-
-::1 -.1< -1 1 -2.69
-::1-
-::2 -.1- 0 0 0
-::2-
-::> -.<. 1 1 2.93
-::>-
-::< ../< 2 4 6.98
_R +/.00 _=0
_ 2 =
10
_ =
1.58
R -.<+; R :.+0>N
Y
e
= a + b(X)
2009-10 = 2.91 + 0.158 (3) = 3.384
2010-11 = 2.91 + 0.158 (4) = 3.542
The estimated 'nentory Turnoer $atio for -::<-+: is ...>/ and the estimated
'nentory Turnoer $atio for -:+:-++ is ..0/- that mean in future 'nentory


-.2.2< Tr"#d (#(7$s's or E(r#'#)s &"r S!(r":
Table00
YEAR
EARNINGS PER
SHARE
X'X
( A X
)
XY
2004-
2005 5.27 -2 4 -10.54
2005-
2006 1.04 -1 1 -1.04
2006-
2007 3.98 0 0 0
2007-
2008 6.52 1 1 6.52
2008-
2009 4.62 2 4 9.24
_= 21.43 _=0
_ 2 =
10
_ =
4.18
R /.->1; R :./+>N
Y
e
= a + b(X)
2009-10 = 4.286 + 0.418 (3) = 5.54
2010-11 = 4.286 + 0.418 (4) = 5.958

The estimated Fi8ed Assets Turnoer $atio for -::<-+: is 0.0/ and the estimated
Fi8ed Assets Turnoer $atio for -:+:-++ is 0.<0> that mean in future Fi8ed Assets
4.1 FINDINGS
=ebt-6!uity ratio is fluctuated in each yearN it increases from -.1. to ...+ in
the periods in between -::/-:2# decreased in the year -::2-:> and again
increased in the period -::>-:<.
Proprietary $atio is fluctuated in each year# in -::/-:0 it recorded as :.-># the
aerage ratio is recorded as :.-0
The debt ratio aerage for the study period is :.2/01N it means that the lenders
hae financed 2/.01; of total debt

'n the study period the companyDs interest coerage ratio is fluctuating. 'n
-::/--::0 it shows a high ratio B0.+-@# a high ratio is desirable to the
company.
The firmDs current ratio is lower than standard form in -::/-:0 and -::0-:1.
But in -::1-:2# -::2-:> and -::>-:< it was recorded higher than standard
form.
The companyDs !uick ratio is almost e!ual to standard ratio +*+ in the years#
-::1-:2# -::2-:> and -::>-:<. But in -::0-:1 and -::/-:0 it is not e!ual to
ideal ratio.
'n the study period the working capital turnoer ratio was continuously
fluctuated. The aerage working capital ratio is ...-/.
Mross profit of the company is fluctuating throughout the study period# in the
year -::0-:1 the gross profit ratio is down to +2./+.
The net profit ratio was 2.-> in the year -::/-:0 and it highly decreased to
+..1 in the year -::0-:1 and it slowly increased in the years -::1-:2 and
-::2-:># again it decreased to -.>. in the period -::>-:<.
The companyDs return on capital employed is lowN in -::/--::0 the ratio was
+:.-.; but in ne8t yearDs the company could not maintain the good returns on
capital employed.
The 'nentory Turnoer ratio is increasing eery year# in -::/--::0 it is -.>-
and in -::>--::< it is recorded as ../<.
=ebtorsD turnoer ratio shows a higher alue# in -::/--::0 it is ..<> and it
continuously increases# in -::>--::< it recorded as 0..<.

The estimated Total assets for -::<-+: is 2:0.1.- and estimated Total assets
for -:+:-++ are >+..:>> that mean in future Total assets has been increasing.
The estimated fi8ed assets for -::<-+: is /./.1.1 and the estimated fi8ed
assets for -:+:-++ is 0:/.<:/ that mean in future Fi8ed assets has been
increasing.
The estimated Cet profit for -::<-+: is -1.<>> and the estimated Cet profit for
-:+:-++ is .:..:1 that mean in future Cet profit has been increasing.
The estimated PB='T for -::<-+: is +.:.:11 and the estimated PB='T for
-:+:-++ is +0..:2> that mean in future PB='T has been increasing.
The estimated Total 68penses for -::<-+: is >++.0>> and the estimated Total
68penses for -:+:-++ is <1/.-0- that mean in future Total 68penses has been
increasing.
The estimated Total income for -::<-+: is </+.10/ and the estimated Total
income for -:+:-++ is +++2... that mean in future Total income has been
increasing.
The estimated net sales for -::<-+: is <.<.1. and the estimated net sales for
-:+:-++ is +++0.:- that mean in future net sales has been increasing.
The estimated =ebt-6!uity $atio for -::<-+: is -.:>2 and the estimated =ebt-
6!uity $atio for -:+:-++ is ..+./ that mean in future =ebt-6!uity $atio has
been increasing.
The estimated ,urrent $atio for -::<-+: is ..0<2 and the estimated ,urrent
$atio for -:+:-++ is ..<<1 that mean in future ,urrent $atio has been
increasing.

The estimated Luick $atio for -::<-+: is -.-+2 and the estimated Luick $atio
for -:+:-++ is -..>/ that mean in future Luick $atio has been increasing.
The estimated Cet Profit $atio for -::<-+: is -.>2>- and the estimated Cet
Profit $atio for -:+:-++ is -./+ that mean in future Cet Profit $atio has been
decreasing.
The estimated $eturn on 'nestment for -::<-+: is +1.+0< and the estimated
$eturn on 'nestment for -:+:-++ is +1./1- that mean in future $eturn on
'nestment has been increasing.
The estimated Total Assets Turnoer $atio for -::<-+: is +.+2- and the
estimated Total Assets Turnoer $atio for -:+:-++ is +.--- that means in
future Total Assets Turnoer $atio has been increasing.
The estimated Cet 7orking ,apital Turnoer $atio for -::<-+: is -.:0- and
the estimated Cet 7orking ,apital Turnoer $atio for -:+:-++ is +.2.- that
means in future Cet 7orking ,apital Turnoer $atio has been decreasing.
The estimated Fi8ed Assets Turnoer $atio for -::<-+: is 0.0/ and the
estimated Fi8ed Assets Turnoer $atio for -:+:-++ is 0.<0> that mean in
future Fi8ed Assets Turnoer $atio has been increasing.
2.2 SUGGETIONS
As it found those debt-e!uity ratios are fluctuating the company is suggested
to maintain a low debt by procuring the funds through e!uity shares in order to
maintain a better debt-e!uity ratio.

As it found the current ratio is not e!ual to the standard ratio -*+N it was
recommended to utili"e the idle current assets of the company in order to
increase the other income. And standardi"e the firmDs current ratio.
The company is suggested to improe the net profit by increasing the olume
of sales as it is found that sales percentage is fluctuating oer the years.
The company has to go for integrated marketing# so that it can increasing its
sales# with this the profit will be increased.
The 7orking ,apital turnoer ratio shows a Fluctuating balances. The
company must try to assess working capital needs perfectly.
Menerally an ideal company will try to maintain an aerage working capital
policy rather too conseratie or too aggressie. But the company highly
followed conseratie approach. 't can be suggested that the company should
deelop an optimum working capital policy# in keeping in iew of the
aailability of the funds for day-to-day operations to get more returns.
,ompany maintains ,urrent Assets e!ual to Fi8ed Assets# it is better to inest
the ideal funds in other sources to get other income.
'n -::0--::1 the companyDs performance is decreased due to arious reasons#
it is better to forecast the future trends# and make changes in the companyDs
policies to get good returns.

/.. ,4C,L?T'4C
The Fnanca anayss s the process of
dentfyng the fnanca strengths and week ness of the
frm and rato anayss s carred out to measure the
enterprses qudty, proftabty, sovency, stabty and
other ndcators to assess ts operatng effcency, fnanca
poston and performance.
After fnanca anayss I concude that the
LANCO INDUSTRY LIMITED performance s satsfactory.

REFERENCES
%. PAC=69 B-::0@# Hfinancial managementJ# ninth edition ikas
publishing house Pt ltd.
S. C. %AK6S7A$' B-::1@# Hfinancial and management accountingJ#
fifth edition# sultan chand and sons# Cew =elhi.
,. $. F4TKA$'# Hresearch methodology and techni!uesJ. Second edition#
new Agency international pt ltd.
BAF6$. $ .P 5 K47 76LL. A.,# Hthe preparation of reportsJ# Cew
9ork $onald press.
S.P. M?PTKA B+<<0@# Hstatistical methods# Hsultan chand and# co Cew
=elhi.
AK?GA K.L# Heconomic enironment of business# macroeconomic
analysisH# chand 5company ltd# Cew =elhi# -::0.
:E> SITES
:**. L(#co I#dustr'"s 7td .co%

LANCO INDUSTRIES LIMITED
BALANCE SHEET
2005
(Rs IN
Crores)
2006
(Rs IN
Crores)
2007
(Rs IN
Crores)
2008
(Rs IN
Crores)
2009
(Rs IN
Crores)
S45rce 46
F5n7
Tota share
Capta
39.76 39.76 39.76 39.76 39.76
Equty share
capta
39.76 39.76 39.76 39.76 39.76
Appcaton
money
0 0 0 0 0
Preference
Share capta
0 0 0 0 0
Reserves 38.05 39.93 51.09 71.08 85.5
Revauaton 0 0 0 0 0
Network 77.81 79.69 90.85 111.56 125.26
Secure oans 108.86 92.45 163.83 178.32 226.46
Un secure
oans
95.89 150.69 137.34 122.71 154.6
Tota Debt 204.75 243.14 301.17 301.03 381.06
T48a9
9:a;:9:8:e
)+3,/ .)/,3
-
13.,+* 1.+,.0 2.*,20

A<<9:ca8:4
n 46 65n7
Gross bock 200.21 250.36 318.24 355.16 389.75
Less:accum
deprecaton
54.17 65.1 76.66 91.28 107.35
Net bock 146.06 185.26 241.58 263.88 282.4
Capta work n
progress
60.15 56.04 7.54 8.62 4.25
Investments 5.9 0 0 0 0
Inventores 70.75 91.94 106.37 120.93 144.36
Sunry Debtors
71.98 67.07 76.68 88.14 119.66
Cash and bank
baance
2.32 3.44 5 4.2 34.64
Tota current
assests
145.05 162.45 188.05 213.27 298.66
Loans&Advanc
esss
21.41 40 77.78 57.8 64.65
Fxed Dposts
0.16 0.06 21.5 0 0
Loans&
advans
166.62 202.51 287.33 271.07 363.31
Deffered
credt
0 0 0 0 0
Current
Labtes
90.28 117.39 139.1 123.87 135.9
Provsons 5.97 3.65 5.38 7.11 7.75
Tota
CL&provsons
96.25 121.04 144.48 130.98 143.65
Net current
assets
70.37 81.47 142.85 140.09 219.66
Msceenous
Expencess
0.1 0.06 0.04 0 0
T48a9
Ae8
)+3,/ .)/,3
-
13.,+
*
1.+,.0 2.*,20



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