5.

1 GROSS PROFIT RATIO

TABLE NO. 5.1

Year

Gross profit

Net sales

Ratio

2008-09

59931765

800505334

7.49

2009-10

71548914

796603759

8.98

2010-11

37568096

1075791642

8.49

2011-12

65744071

1552284622

7.23

2012-13

62766513

1414771304

8.44

CHART NO. 5.1

10

8.98

9
8

8.49

7.49

8.44
7.23

7
6
5
4
3
2
1
0
2009

2010

2011

2012

2013

Interpretation:
In the year 2008-09 the gross profit ratio is 7.49, Compared to the previous
year, in 2009 -10 the ratio raise to 8.98. Followed by 8.49 in 2010-11. In 2011-12
the gross profit reach to 7.23. By upgrading in 2012-13 it reaches to 8.44.

5.2 NET PROFIT RATIO

TABLE NO. 5.2

Year

Net profit

Net sales

Ratio

2008-09

66784806

800505334

8.34

2009-10

71548914

796603759

8.98

2010-11

37568096

1075791642

8.49

2011-12

43058461

1552284622

7.77

2012-13

48259473

1414771304

9.41

CHART NO. 5.2

12
10

8.34

8.98

9.41
8.49
7.77

8
6
4
2
0
2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
Net profit was 8.34 in the year 2008-09. But in 2009-10 with a slight raise it
reaches to 8.98. In 2010-11 net profit ratio was 8.49. In the year 2011-12 it
decreases to 7.77. It becomes 9.41 in the year 2012-13 with a progress.

. 5.3 OPERATING RATIO

TABLE NO. 5.3

Year

Operating cost

Net sales

Ratio

2008-09

664986324

800505334

83.07

2009-10

659198875

796603759

82.75

2010-11

853803417

1075791642

79.36

2011-12

1246695656

1552284622

80

2012-13

1121600202

1414771304

79.10

CHART NO. 5.3

84

[VALUE]

83

83.07
82
81

80
80

79.36

79

79.1
78
77
2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
In 2008-09, the operating ratio was 83.07. But compared to the previous
year, in 2009-10 it reaches to 82.75. In 2010-11 operating ratio becomes 79.36.

With a slight change it reaches to 80 in the year 2011-12. In 2012-13 it becomes

79.1.
.

5.4 ADMINISTRATIVE EXPENSE RATIO

TABLE NO. 5.4

Year

Administrative Expenses

Net sales

Ratio

2008-09

162129131

800505334

20%

2009-10

160101349

796603759

20%

2010-11

184744972

1075791642

17%

2011-12

198299496

1552284622

18%

2012-13

197954321

1414771304

18%

18%

18%

CHART NO. 5.4

20%

20%

17%

2008-09

Interpretation:

2009-10

2010-11

2011-12

2012-13

Administrative ratio is 20% in the year 2008-09.It is same for the exceeding
year 2009-10. But as compared to previous two years it reaches to 17% in the year
2010-11. In 2011-12 it becomes 18% and in the year 2012-13 it doesnt make any
change in percentage of administrative ratio.

5.5 CURRENT RATIO

TABLE NO. 5.5

Year

Current assets

Current liabilities

Ratio

2008-09

314010676

109580995

2.8

2009-10

253952210

60543051

2010-11

318275041

65334919

2011-12

278974492

95891117

2.9

2012-13

133041072

38011735

3.5

CHART NO 5.5

16%

21%

2008-09

23%

17%

2009-10
2010-11
2011-12
2012-13

23%

Interpretation:
Ideal ratio of current ratio is 2:1, here in this case in 2008-09 the current
ratio

is 2.8. In the year 2009-10 it rises to 4. It is same in the year 2010-11. In

the year 2011-12 it again decreases to 2.9. In the next year it increases to 3.5.

5.6 ABSOLUTE LIQUID RATIO

TABLE NO 5.6

Year

Cash at bank

Current liabilities

Ratio

2008-2009

36160488

109580995

0.32

2009-2010

479377497

60543051

0.79

2010-2011

3987251

65334919

0.06

2011-2012

6882609

95891117

0.71

2012-2013

2661185

38011735

0.07

CHART NO. 5.6

0.9

0.79

0.8

0.71

0.7
0.6
0.5
0.4

0.32

0.3
0.2

0.07

0.06

0.1
0
2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
Absolute liquid ratio in the year 208-09 is 0.32. But in the next accounting
year it rise to 0.79. In the year 2010-11 it comes down to 0.06. The next year it
again rise to 0.71 and finally in the year 2012-13 it decreases as 0.07.

5.7 LIQUID RATIO

TABLE NO. 5.7

Year

Liquid assets

Current liabilities

Ratio

2008-09

127518530

109580995

2009-10

145543661

60543051

2010-11

128932566

65334919

2011-12

907991891

95891117

2012-13

79186070

38011735

CHART NO. 5.7

2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
Ideal ratio is 1:1 i.e., for every current liability of rs.1 is have to maintain
liquid asset of rs.1. Here in this case in the year 2008-09 quick ratio is 1. In the
year 2009-10 it is 2, same for the year 2010-11. It comes to 1 in the year 2011-12.
Again in the year 2012-13 it came as 2.

5.8 INVENTORY TURNOVER RATIO

TABLE NO. 5.8

Year

Sales

Average stock

Ratio

2008-09

800505334

26199670

2009-10

796603759

2873349

2.7

2010-11

1075791642

3613897767

2.9

2011-12

1552284622

64841135

2.3

2012-13

1414771304

3414730

CHART NO. 5.8

4
3.5
3
2.5
2
1.5
1

0.5

[VALUE]

2.9

2.3

2010-11

2011-12

2012-13

0
2008-09

2009-10

Interpretation:
In the year 2008-09 the inventory turnover ratio is 3 times by dividing the
sales with average stock of the company. But in 2009-10 it reduces by 2.7 times. In
the year 2010-11 it made a slight change by 2.9 times. In 2011-12 it decreases by
2.3 times. But as compared to all the previous years it reaches to 4 times in 201213.

5.9 WORKING CAPITAL RATIO

TABLE NO 5.9

Year

Net Sales

Working capital

Ratio

2008-09

800505334

204429681

3.9

2009-10

796603759

193409159

2010-11

1075791642

252940122

4.2

2011-12

1552284622

183083375

4.8

2012-13

1414771304

1292398337

4.3

CHART NO. 5.9

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

3.9

2008-09

2009-10

4.2

4.8

4.3

2010-11

2011-12

2012-13

Interpretation:
Working capital ratio is an essential factor in every company for the current
financial meetings. In 2008-2009 it is 3.9 times. In 2009-2010 it does not make any
high variation, it is 4 times. In 2010-2011 it makes a slight change i.e.4.2.In the
year 2011-2012 it increased by 4.8,but in 2012-2013 it decrease by 4.8.

5.10 DEBTORS TURNOVER RATIO

TABLE NO. 5.10

Year

Net credit sales

Average debtors

Ratio

2008-2009

288364241

116400960

2009-2010

546031683

94482103

2010-2011

124975291

27369124

2011-2012

83909282

26340329

2012-2013

90282681

43693212

CHART NO. 5.10

6

4
3

3
2

1
0
2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
In 2008-09 debtors turnover ratio is 2 times which is derived by dividing net
credit sales with average debtors .But in 2009-10 it increases to 5 times. In 201011 it decreases as 4 times. In the year 2011-12 it again decreases by 3 times. In
2012-13 it becomes 2.5 times.

5.11 FIXED ASSETS TURNOVER RATIO

TABLE NO. 5.11

Year

Net Sales

Net Fixed assets

Ratio

2008-2009

800505334

82121342

2009-2010
2010-2011

796603759
1075791642

85061326
94856114

9.3
11.3

2011-2012

1552284622

89031776

17

2012-2013

1414771304

95697337

14

CHART NO 5.11

14

2008-09

9.3

2009-10
2010-11

17

11.3

2011-12
2012-13

Interpretation:
Fixed assets turnover ratio is derived by dividing by net sales and net fixed
assets. In 2008-09 it is 9 times. It doesnt make any change in the year 2009-10.
But in 2010-11 it increases to 11.3 times. In the year 2011-12 it increases with a
high rise to 17 times. It is 14 times during the year 2012-13.

5.12 CURRENT ASSETS TURNOVER RATIO

TABLE NO 5.12

Year

Net Sales

Current assets

Ratio

2008-09

800505334

314010676

2.5

2009-10

796603759

253952210

3.1

2010-11

1075791642

318275041

3.3

2011-12

1552284622

278974492

2012-13

1414771304

133041072

5.6

CHART NO.5.12

5.6

5
4

3.1

3.3

2009-10

2010-11

2.5

3
2
1
0

2008-09

2011-12

2012-13

Interpretation:
Current assets are those assets which can easily convert into cash form.
Current assets turnover ratio is obtained with the elements like net sales and
current assets. In 2008-09 it shows the ratio with 2.5 times. In the year 2009-10 it
becomes 3.1 times. It doesnt make any drastic change in the year 2010-11. In
2011-12 it rises to 5 times. In the year 2012-13 it is 5.6 times.

5.13 TOTAL ASSETS TURNOVER RATIO

TABLE NO.5.13

Year

Net Sales

Total Assets

Ratio

2008-09

800505334

396132018

2.02

2009-10

796603759

339013536

2.34

2010-11

1075791642

413131155

2.60

2011-12

1552284622

368006268

4.2

2012-13

1414771304

228738409

4.18

CHART NO.5.13
4.5

4.2

4.18

4
3.5
3
2.5

2.6
2.02

2.34

2
1.5
1
0.5
0
2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
In the year 2008-09 the total assets turnover ratio is 2.02. It comes to 2.34 in
2009-10. In the next year total assets turnover ratio is 2.6. But in 2011-12 it rises to
4.2. It is a huge change. Finally in the year 2012-13 it comes to 4.18.

5.14 AVERAGE COLLECTION PERIOD

TABLE NO 5.14

Year

Debtor Turnover Ratio

Ratio

2008-2009

182.5

2009-2010

73

2010-2011

91.25

2011-2012

121.6

2012-2013

146

CHART NO 5.14

182.5
146

121.6
91.25
73

2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
In 2008-09 average collection period ratio is 182.5 which is derived by
dividing 365 with debt turnover ratio. But in 2009-10 it decreases to 73. In 201011 it increases to 91.25. In the year 2011-12 it again increases to 121.6.In 2012-13
it becomes 146.

5.15 INVENTORY HOLDING PERIOD

TABLE NO 5.15

Year

Inventory Turnover Ratio

Ratio

2008-09

121.6

2009-10

2.7

135.18

2010-11

2.9

125.8

2011-12

2.3

158.6

2012-13

91.25

CHART NO 5.15

91.25

121.6
2008-09
2009-10

158.6

135.18

2010-11
2011-12
2012-13

125.8

Interpretation:
Inventory holding period for the year 2008-09 is 121.6 days. In 2009-10 it
became 135.18days. In 2010-11 inventory holding period comes to 125.8. In 201112 it has increased to 158.6 days. But in 2012-13, it decreased to 91.25days.

5.16 DEBT TO EQUITY RATIO

TABLE NO 5.16

Year

Long term loans Shareholders Fund

Ratio

2008-09

109788647

20000000

5.5

2009-10

59446874

20000000

2.9

2010-11

95785711

20600000

4.6

2011-12

73000000

20600000

3.5

2012-13

56500000

20800000

2.7

CHART NO 5.16
6

5.5

4.6
2008-09

4
3

3.5

2009-10

2.9

2.7

2010-11
2011-12

2012-13

1
0

Interpretation:
Debt equity ratio shows the percentage of debt and equity rate of the
company. In the year 2008-09 it is 5.5 times. In the next year it decreases to 2.9
times. In the year 2010-11 it increases to 4.6 times. It is 3.5 times during the year
2011-12. In the year 2012-13 it reaches to 2.7 times.

5.17 PROPRIETARY RATIO

TABLE NO 5.17

Year

Proprietors Fund

Total assets

Ratio

2008-09

88284806

396132018

0.22

2009-10

135429927

339013536

0.39

2010-11

160062994

413131155

0.38

2011-12

203121455

368006268

0.55

2012-13

251580929

228738409

1.0

CHART NO 5.17

1
1
0.9
0.8
0.7

0.55

0.6

0.38

0.39

0.5
0.4

0.22

0.3
0.2
0.1
0

2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
Proprietary ratio is derived by dividing the proprietors ratio by total assets.
In 2008-09 it is 0.22 and in the year 2009-10 is 0.39. It doesnt make much
difference in the year 2010-11 i.e. 0.38. In the year 2011-12 it increases to 0.55. In
the year 2012-13 I increases to 1.0.

5.18 TOTAL ASSETS TO DEBT RATIO

TABLE NO 5.18

Year

Total assets

Long term loans

Ratio

2008-2009

396132018

109788647

2.86

2009-2010

339013536

59446874

4.2

2010-2011

413131155

95785711

3.32

2011-2012

368006268

73000000

5.2

2012-2013

228738409

56500000

3.28

CHART NO.5.18
6

5.2
5

4.2
4

3.32

3.28

2.86

3
2
1
0

2008-09

2009-10

2010-11

2011-12

2012-13

Interpretation:
In the year 2008-2009 the total assets to debt ratio was 2.86.In the year
2009-2010 it increased to 4.2.But 2010-2011 it decreased to 3.32.In the year 20112012 it has increased to 5.2.And it comes down to 3.28 in the year 2012-2013.

5.19 FIXED ASSETS RATIO

TABLE NO. 5.19

Year

Net Fixed assets

Capital employed

Ratio

2008-09

82121342

20000000

4.10

2009-10

85061326

20000000

4.25

2010-11

94856114

20600000

4.6

2011-12

89031776

20600000

4.32

2012-13

95697337

20800000

4.6

CHART NO. 5.19

5

4.6

4.5

4.1

4.6
4.32

4.25

4
3.5
3
2.5
2
1.5
1
0.5
0
2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

Interpretation:
Fixed assets ratio is derived dividing fixed assets by capital employed. It is
4.10 in the year 2008-09 and it became 4.25 in the year 2009-10. In 2010-11 it
comes to 4.6 and 4.32 in the year 2011-12. It again become 4.6 in the year 201213.

5.20 CURRENT ASSETS TO FIXED ASSETS RATIO

TABLE NO.5.20

Year

Current assets

Fixed assets

Ratio

2008-2009

314010676

82121342

3.82

2009-2010

253952210

85061326

2.98

2010-2011

318275041

94856114

3,35

2011-2012

278974492

89031776

3.13

2012-2013

133041072

95697337

2.39

CHART NO 5.20

4
3.5
3
2.5
2
1.5
1
0.5
0

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

Interpretation:
Current assets to fixed assets ratio was 3.82 in the year 2008-09. But it
became 2.98 in the year 2009-10. In the year 2010-11 it rises to 3.35 and 3.13 in
2011-12. But gradually it became 2.39 in the year 2012-13.