Sample Project Data Analysis

PARTICULARS
2005
2006
CHANGE
LIABLITES
Share holders
founds
Secured loans
Unsecured loans
Differed tax
liability
TOTAL
LIABILITES
27,111,890
11,161,236
27,111,890
34,630,113
0
23,468,877
0.000
210.2713
43,692,035
178,472,806
19,457,888
191,018,611
-24,234,147
12,545,805
-55.4658
7.0295
260,437,967
272,218,502
11,780,535
4.5233
105,001,624
155,191,743
2,44,600
117,844,260
154,251,942
1,22,300
12,842,636
-9,39,801
-1,22,300
12.2308
-0.6055
-0.5000
260,437,967
272,218,502
11,780,535
4.5233
ASSETS
Fixed assets
Net current assets
Preliminary
expense to the
extent not written
off
Differed tax
TOTAL
ASSETS
COMPARATIVE BALANCE SHEET OF

MADHUCON POWER & SUGER INDUSTRY PVT (LTD) 2005-2006
53
INTERPRETATION: TOTALSHAREHOLDERSFUND:
In the financial year 2005 total shareholder funds are 38,273,126 and in the
financial year 2006. It was increased to 61,742,003 i.e.it was increased by
210.2713%.
TOTAL OUTSIDERFUNDS
In the financial year 2005 total outsider funds are 222,164,841and in the financial
year 2006. It was increased to 210,476,499 i.e. it was decreased by -0.0526%.
FIXED ASSETS
In the financial year 2005 total fixed assets are 105,001,624and in the financial
year 2006. It was increased to 117,844,260i.e. It was increased by 12.2308%.
CURRENT ASSETS
In the financial year 2005 total current assets are 155,191,743and in the financial
year 2006. It was increased to 154,251,942i.e. It was decreased by -0.605%.
54

PARTICULARS
2006
2007
CHANGE
LIABILITIES
27,111,890
107,111,890
80,000,000
295.0734
Share holders
founds
34,630,113
34,757,724
1,27,611
0.3684
Secured loans
19,457,888
79,555,940
60,098,052
308.8622
Unsecured loans
191,018,611
205,294,319
14,275,708
7.4734
Differed tax
liability
TOTAL
LIABILITIES
3,40,933
3,40,933
272,218,502
427,060,806
154,842,304
56.8816
Fixed assets
117,844,260
286,243,891
168,399,631
142.9001
Net current assets
154,251,942
140,816,915
-13,435,027
-8.7097
Preliminary
expense to the
extent not written
off
Differed tax
1,22,300
-1,22,300
-100.0000
0.0000
TOTAL ASSETS
272,218,502
427,060,806
154,842,304
56.8816
ASSETS
55
129.7781%.
TOTAL OUTSIDERFUNDS
In the financial year 2006 total outsider funds are 210,476,499and in the financial
year 2007. It was increased to 284,850,259 I.E. it was decreased by 35.335%.
FIXED ASSETS
In the financial year 2006 total fixed assets are 117,844,260 and in the financial
year 2007. It was increased to 286,243,891 i.e. It was increased by 142.9001%.
CURRENT ASSETS
In the financial year 2006total current assets are 154,251,942 and in the financial
year 2007. It was decreased to 140,816,915 i.e. It was decreased by -8.7097%.
56

PARTICULARS
2007
2008
CHANGE
Shareholder funds
107,111,890
107,111,890
0.000
Secured loans
34,757,724
27,701,533
-7,056,191
-20.3010
Unsecured loans
79,555,940
1,035,355,573
955,799,573
1201.4183
Differed tax
liabilities
TOTAL LIBITES
3,40,933
-3,40,933
-100.0000
427,060,806
1,793,990,864
1,366,930,058
320.0785
Fixed assets
286,243,891
1,561,813,227
1,275,569,336
445.6232
Net current assets
140,816,915
229,224,816
88,407,901
62.7821
Preliminary
26,0,6000
26,0,6000
0.0000
LIABILITIES
ASSETS
57
expense to the
extent not written
off
Diffract tax
3,46,821
3,46,821
0.0000
TOTAL ASSETS
427,060,806
1,793,990,864
1,366,930,058
320.0785
financial year 2008. It was decreased to 134,813,423i.e. It was decreased by
-4.9737%.
TOTAL OUTSIDERFUNDS
In the financial year 2007 total outsider funds are 284,850,259 and in the
financial year 2008. It was increased to 1,659,177,441 i.e. It was increased by
482.4735%.
FIXED ASSETS
58
In the financial year 2007 total fixed assets are 286,243,891 and in the financial
year 2008. It was increased to 1,561,813,227i.e. It was increased by 445.6232%.
CURRENT ASSETS
In the financial year 2007 total current assets are 140,816,915 and in the financial
year 2008. It was increased to 229,224,816 i.e. It was increased by 62.7821%.

PARTICULAR
S
LIABILITIES
2008
2009
CHANGE
Shareholder funds
107,111,890
Reserves surplus
Secured loans
Unsecured loans
Differed tax
liabilities
TOTAL
LIABILITIES
27,701,533
1,035,355,513
623,821,928
-
464,411,890
78,532,017
1,239,396,273
410,841,340
21,281,818
357,300,000
50,830,484
204,040,760
-212,980,588
21,289,818
333.5764
183.4933
19.7073
-34.1412
0.000
1,793,990,864
2,214,471,338
420,480,474
23.4382
59
ASSETS
Fixed assets
Net current assets
Preliminary
expense to the
extent not written
off
Diffract tax
TOTAL
ASSETS
1,561,813,227
229,224,816
2,606,000
1,697,082,628
515,303,910
2,084,800
135,269,401
286,079,094
-5,21,200
8.6610
124.8028
-20,000
3,46,821
1793,990,864
2214,471,338
-3,46,821
420,480,474
-100.0000
23.4382
In the financial year 2008 total shareholder funds are 134,813,423and in the
302.7372%.
TOTAL OUTSIDERFUNDS
60
In the financial year 2008 total outsider funds are 1,659,177,441and in the
financial year 2009. It was decreased to 1,650,237,613 i.e. it was decreased by
-0.5388%.
FIXED ASSETS
In the financial year 2008 total fixed assets are 1,561,813,227 and in the financial
year 2009. It was increased to 1,697,082,628 i.e. it was increased by 8.6610%.
CURRENT ASSETS
In the financial year 2008 total current assets are 229,224,816 and in the financial
year 2009. It was increased to 515,303,910 i.e. It was decreased by 124.8028 %.

PARTICULARS
2009
2010
LIABILITIES
61
CHANGE
Share holders
funds
Reserves surplus
464,411,890
464,411,890
0.0000
78,532,017
78,532,017
0.0000
Secured loans
1,239,396,273
1,127,025,103
-112,371,170
-9.0666
Unsecured loans
410,841,340
205,175,060
-205666280
-50.0597
Differed tax
liabilities
TOTAL
LIABILITIES
21,281,818
116,252,848
94,971,030
4.4625
2,214,471,338
1,991,396,918
-223,074,420
-10.0734
Fixed assets
1,697,082,628
1,797,618,088
100,535,460
5.9240
Net current assets
515,303,910
193,000,000
-322,303,910
-62.5463
Preliminary
expense to the
extent not written
off
Diffract tax
2,084,800
778,830
-1,305,970
-62.6424
TOTAL ASSETS
2214,471,338
1,991,396,918
-223,074,420
-10.0734
ASSETS
62
financial year 2010. It was increased to 542,943,907 i.e.it was no changed.
TOTAL OUTSIDERFUNDS
In the financial year 2009 total outsider funds are 1,650,237,613 and in the
financial year 2010. It was decreased to 1,332,200,163 i.e. it was decreased by
-19.2722%.
FIXED ASSETS
In the financial year 2009 total fixed assets are 1,697,082,628 and in the financial
year 2010. It was increased to 1,797,618,088 i.e. It was increased by 5.9240%.
CURRENT ASSETS
In the financial year 2009total current assets are 515,303,910 and in the financial
year 2010. It was decreased to 193,000,000 i.e. It was decreased by -62.5463%.
COMMONSIZE BALANCE SHEET OF

63
PARTICULARS
2005
2006
Share holder
funds
Reserves
&surplus
Secured loans
27,111,890
10.4101
27,111,800
9.9595
11,161,236
4.2855
34,630,113
12.7214
43,692,035
16.7763
19,457,888
7.1478
Unsecured loans
178,472,806
68.5279
191,018,611
70.1710
TOTAL
LIABILITES
260,437,967
100.0000
272,218,502
100.00
FIXED ASSETS
105,001,624
40.3173
117,844,260
43.2903
Net current
assets
Preliminary
expenses to the
extent not
written off
155,191,743
59.5887
154,251,942
56.6647
2,44,600
0.0939
1,22,300
0.0449
TOTAL ASSETS
260,437,967
100.0000
272,218,502
100.0000
LIABILITES
ASSETS
INTERPRETATION: -
64
TOTALSHAREHOLDERSFUND:
Total shareholder funds were increased from 38,273,126 to 61,742,003 i.e. from
14.6956% to 22.6809% respectively from 2005 to 2006
TOTAL OUTSIDERFUNDS
Total outsiders funds were decreased from 222,164,841 to 210,476,499 i.e. from
85.3042 % to 77.3188 % respectively from 2005 to 2006
FIXED ASSETS
Total fixed assets was increased from 105,001,624 to 117,844,260 i.e. from 40.3173%
to 43.2903% respectively from 2005 to 2006
CURRENT ASSETS
Total current assets were decreased from 155,191,743 to 154,251,942 i.e. from
59.5887 % to 56.6647% respectively from 2005 to 2006

MADHUCON POWER & SUGER INDUSTRY
PVT (LTD) 2006-2007
65
PARTICULARS
LIABILITIES
Share holder
funds
Reserves surplus
Secured loans
Unsecured loans
TOTAL
LIABILITIES
ASSETS
Fixed assets
Net current assets
Preliminary
expenses to the
extent not written
off
TOTAL
ASSETS
2006
2007
27,111,800
9.9595
107,111,890
25.0811
34,630,113
19,457,888
191,018,611
272,218,502
12,7214
7.1478
70.1710
100.00
34,757,724
79,555,940
205,294,319
427,060,806
8.1388
18.6287
48.0714
100.0000
117,844,260
154,251,942
1,22,300
43.2903
56.6647
0.0449
286,243,891
140,816,915
-
67.0264
32.9735
-
272,218,502
0.000
100.0000
427,060,806
100.0000
66
TOTAL OUTSIDERFUNDS
Total outsiders funds were increased from 210,476,499 to 284,850,259i.e. from
77.3188 %to 66.7001% respectively from 2006 to 2007
FIXED ASSETS
Total fixed assets was increased from 11,784,426 to 286,243,891 i.e. from 43.2903%
to 67.0264% respectively from 2006 to 2007
CURRENT ASSETS
Total current assets were decreased from 154,251,942 to 140,816,915 i.e. from 56.66
% to 32.9735% respectively from 2006 to 2007.
67
PARTICULARS
2007
2008
Share holders
funds
Reserves
&surplus
Secured loans
107,111,890
25.0811
107,111,890
5.9705
34,757,724
8.1388
27,701,533
1.5441
79,555,940
18.6287
1,035,355,513
57.7124
Unsecured loans
205,294,319
48.0714
623,821,928
34.7728
TOTAL
LIBITES
427,060,806
100.0000
1,793,990,864
100.0000
Fixed assets
286,243,891
67.0264
1,561,813,227
87.0580
Differed tax
3,46,821
0.0193
Net current assets
140,816,915
32.9735
229,224,816
12.7773
Preliminary
expenses to the
extent not written
off
TOTAL ASSETS
427,060,806
26,06,000
0.1452
427,060,806
100.0000
1,793,990,864
100.0000
LIABILITIES
ASSETS
loans
COMMONSIZE
BALANCE SHEET OF
68
Total shareholder funds were decreased from 141,869,614to 134,813,423 i.e. from
TOTAL OUTSIDERFUNDS
Total outsiders funds were decreased from 284,850,259 to 1,659,177,441 i.e. from
77.3188 %to 66.7001% respectively from 2007 to 2008
FIXED ASSETS
Total fixed assets was increased from 286,243,891to 1,561,813,227 i.e. from
CURRENT ASSETS
Total current assets were increased from 140,816,915 to 229,224,816 i.e. from
69

PARTICULARS
2008
2009
Share holders
funds
Reserves
&surplus
Secured loans
107,111,890
5.9705
464,411,890
20.9716
27,701,533
1.5441
78,532,017
3.5463
1,035,355,503
57.7124
1,239,396,273
55.9680
Unsecured loans
623,821,928
34.7728
410,841,340
18.5525
Differed tax
liability
21,289,818
0.9613
TOTAL
LIABILITIES
ASSETS
1,793,990,864
100.00
2,214,471,338
100.0000
LIABILITIES
70
Fixed assets
1,561,813,227
87.0580
1,697,082,628
76.6360
Net current assets
229,224,816
0.0173
515,303,910
23.2698
Differed tax
3,46,821
12.7773
Preliminary
expenses to the
extent not written
off
TOTAL ASSETS
26,0,6000
0.1452
20,84,800
0.0941
1,793,990,864
100.00
2,214,471,338
100.0000
TOTAL OUTSIDERFUNDS
Total outsiders funds were decreased from 165,917,7441to 210,476,499 i.e. from
92.4852% to 7405205 % respectively from 2008 to 2009
FIXED ASSETS
71
Total fixed assets was increased from 1,561,813,227 to 1,697,082,628 i.e. from
CURRENT ASSETS
Total current assets were decreased from 229,224,816 to 515,303,910i.e. from

PARTICULARS
2009
2010
464,411,890
20.9716
464,411,890
23.3209
78,532,017
3.5463
78,532,017
3.9435
1,239,396,273
55.9680
1,127,025,103
56.5946
LIABILITIES
Share holders
funds
Reserves
&surplus
Secured loans
72
Unsecured loans
410,841,340
18.5525
205,175,060
10.3030
Differed tax
liability
21,289,818
0.9613
21,289,818
1.0690
Other liability
94,963,030
4.7686
TOTAL
LIABILITIES
ASSETS
2,214,471,338
100.00
1,991,396,918
100.0000
Fixed assets
1,697,082,628
76.6360
1,797,618,088
90.2692
Net current assets
515,303,910
23.2698
193,000,000
9.6916
Differed tax
Preliminary
expenses to the
extent not written
off
TOTAL ASSETS
2,214,471,338
100.00
1,991,396,918
100.0000
Total shareholder funds were increased from 542,943,907 to 542,943,907i.e. From
TOTAL OUTSIDERFUNDS
73
Total outsiders funds were decreased 16,502,37613to 1,332,200,163i.e. From

FIXED ASSETS
Total fixed assets was increased from 1,697,082,628to 1,797,618,088i.e. From
CURRENT ASSETS
Total current assets were decreased from 515,303,910 to 193,000,000i.e. From
74
RATIO ANALLYSIS
LIQUID IT Y RATIOS
1. CURRENT RATIO:Current ratio is the most commonly used measure of short term solvency. It
may be defined as the relationship between current assets and current liabilities
current assets means cash and other assets. Which can be easily converted in to cash
with in a short period of time that is one year current liabilities are those obligations?
Which are payable within a short period of time that is one year. Current ratio
expressed as follows.
75
Current Ratio = Current Assets / Current Liabilities

(Rs in lakhs)
Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-2010
Current
Assets
Current
Liabilities
Current Ratio
189,351,487
34,159,744
5.5431
202,589,303
48,337,361
4.1911
206,854,975
66,038,060
3.1323
38,7344,261
158,119,445
2.4596
609,508,473
94,204,564
6.4700
587,256,629
116,252,848
76
5.0515
INTERPRETATION: -
IDEAL RATIO
2:1
The current Ratio during the study period that is from 2004-05 to 2009-10: In
the year 2008-09 it is very high i,e 6.47
The company is able to maintain higher current ratio than that of idle Ratio
2:1.
They are using ideal funds efficiently the liquidity position is good.
77
2.LIQUID RATIO (OR) QUICK RATIO (OR) ACID TEST RATIO

Quick assets are those assets which are converted into cash with in a short
period without loss of value i.e., all current assets except prepaid expenses and
inventories. Quick Liabilities are those current liabilities excluding bank overdraft.
As a convention quick ratio of 1:1 is considered satisfactory. Quick assets are
equal to current liabilities then the concern may be able to meet its short term
obligations.
Quick Assets = Current Assets (Prepaid exp+ Inventory)
Quick Liabilities = Current Liabilities Bank overdraft
Quick Ratio = Quick Assets / Current Liabilities
(Rs in lakhs)
Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-2010
Current
Liabilities
Quick Assets
Quick Ratio
42,151,908
34,159,744
1.2339
85,040,901
48,337,361
1.7593
44,361,675
66,038,060
0.6715
182,654,124
158,119,445
1.1551
279,742,755
94,204,564
2.9695
196,939,658
116,252,848
1.6940
83
INTERPRETATION:-IDEAL RATIO IS1:1
A rule of thumb as a convention Quick Ratio of 1:1 is considered satisfactory.

It is generally through that if Quick assets are equal to current liabilities.
It has been observed that the Quick Ratio of suven life sciences limited is
low compared with idle ratio
Low Quick Ratio is represents that the firms liquidity position is not
good.
84
3.ABSOLUTE LIQUID RATIO (OR) CASH RATIO :Absolute Liquid Ratio is the most vigorous measure of firms liquidity
position. Absolute Liquid Assets are cash in hand and at bank and marketable
securities.
Current liabilities those obligations which are payable within a short period
i.e., one year.
The acceptable norm for this Ratio is 0.75:1 (or) 1:2 i.e., Rs.1 worth absolute
liquid assets are considered adequate to pay Rs.2 worth current liabilities.
Absolute Liquid Ratio = Absolute Liquid Assets / Current Liabilities
Absolute Liquid Assets = Cash in hand + Cash at Bank
(Rs in lakhs)
Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-2010
Absolute Liquid
Assets
Current
Liabilities
Absolute Liquid
Ratio
1,470,425
34,159,744
0.0430
14,121,860
48,337,361
0.2921
1,456,882
66,038,060
0.0220
2,573,490
158,119,445
0.0162
20,035,476
94,204,564
0.2126
42,027,357
116,252,848
0.3615
85
INTERPRETATION: -IDEAL RATIO IS 0.75:1
Absolute Liquid Ratio is low because it 2004-05 = 0.043, 2005-06 = 02921,

2006-07 = 0.022, 2007-08 = 0.0162, 2008-09 = 0.02126, 2009-10 =
0.03615where as the accepted standard is 0.4 in all, the company needs to
improve its short term financial position.
During the year 2009-10 the Ratio has been decreased from 0.3615 to 0.2126.
Higher absolute liquid ratio is Feasible.
86
4.DEBT EQUITY RATIO:This Ratio indicates the relationship between the external funds (or) outsiders
funds and the share holders funds. A high debit to equity ratio could indicate that the
company may be over leveraged and should look for ways to reduce its debt.
Equity and debt are two key figures on a financial statement and lenders (or)
investors often use the relationship of these two figures to evaluate risk. The ratio of
your business equity to its long-term debt provides a window into how strong its
finances are equity will include good and property your business owns plus and
claims it has against other entities. Debt will include both current and long term
liabilities.
Debt Equity Ratio = Outsiders Funds / Share Holders Funds. (OR)
Long term Debts / Share Holders Funds.
External Equity / Internal Equity.
(Rs in lakhs)
Outsiders
funds
Share holders
funds
Debt Equity Ratio
222,164,841
38,273,126
5.8047
210,476,499
61,742,003
3.4089
285,191,192
141,869,614
2.0102
1,659,177,441
134,813,423
12.3072
2008-09
1,671,527,431
542,943,907
2009-10
1,332,200,163
78,532,017
Year
2004-05
2005-06
2006-07
2007-08
87
3.0786
16.9637
(OR)
INTERPRETATION:-
A ratio is of 1:1 may be usually considered to be a satisfactory ratio although

there cannot be any rule of thumb or standard norms for all of business.
A very low ratio not considered satisfactory for the shareholders because it
indicates that the firm has not been able to use low cost outsiders funds to
magnify their earnings.
Debt is very high compared with share holders funds it is not preferable
for the company.
88
5.PROPRIETARY RATIO (OR) EQUITY RATIO :Proprietary Ratio is an important ratio for determining long term solvency of a
firm. This ratio establishes the relationship between shareholders funds to total assets
of the firm.
Proprietary Ratio = Share holders funds / Total assets.
(Rs in lakhs)
Share holders
funds
Total Assets
P.R (or) Equity Ratio
38,273,126
294,353,111
0.1300
61,742,003
320,433,563
0.1926
141,869,614
493,098,866
0.2877
134,813,423
1,042,186,499
0.1293
2008-09
542,943,907
2,304,016,315
0.2356
2009-10
78,532,017
2,384,874,717
0.0329
Year
2004-05
2005-06
2006-07
2007-08
89
INTERPRETATION:-
Proprietary Ratio or equity ratio represents the relationship of owners funds to

total assets.
Proprietary Ratio or equity ratio has been i.e. 2004-05 is 0.13, 2005-06 is
0.1926, 2006-07 is 0.2877, 2007-08 is 0.1293, 2008-09 is 0.2356, 2009-10 is
0.0329 which have been maintain same level.
Higher share holders funds are preferable for the company because it reduces
the risk to pay fixed interest.
90
6. SOLVENCY RATIO (OR) TOTAL LIABILITIES TO TOTAL

ASSETS :-
Solvency Ratio indicates the relationship between the total liabilities to

outsiders to total assets of a firm generally, lowers the ratio of total liabilities to total
assets, more satisfactory (or) stable is the long-term solvency position of a firm.
This ratio is a small variant of equity ratio and can be simple calculated as 100
equity ratio i.e., continuing the example taken for the equity ratio, solvency ratio
=100-66.67 or say 33.33 %
Solvency Ratio = Total Liabilities to outsiders / Total Assets.

(Rs in lakhs)
Total liabilities
to outsiders
Total Assets
Solvency Ratio
222,164,841
294,353,111
0.7547
210,476,499
320,433,563
0.6568
285,191,192
493,098,866
0.5783
1,659,177,441
1,042,186,499
1.5920
2008-09
1,671,527,431
2,304,016,315
0.7254
2009-10
1,332,200,163
2,384,874,717
0.5586
Year
2004-05
2005-06
2006-07
2007-08
91
INTERPRETATION:-
Solvency Ratio of the firm in years 2004-05=0.7547, 2005-06=0.6568, 200607=0.5783, 2007-08=1.592, 2008-09=0.7254, 2009-10=0.5586Is able higher
the total assets are satisfactory.
Generally lower the ratio of total liabilities, more satisfactory or stable is

the long term solvency position of a firm.
92
7.FIXED ASSETS TO NETWORTH RATIO (OR) FIXED ASSETS

TO PROPRIETORS FUNDS :Ratio establishes the relationship between fixed assets and shareholders
funds. It indicates the extent to which share holders funds are sunk in to the fixed
assets generally the purchase of fixed assets should be financed by shareholders
equity including reserves, surpluses and retained earnings. If the ratio is less than
100% it implies that owners funds are more than total fixed assets and a part of the
working capital is provide by the shareholders when the ratio is more than 100% it
implies that owners funds are not sufficient to finance the fixed assets and the firm
has to depend upon outsiders to finance the fixed assets,
Fixed Assets to net Worth Ratio = Fixed Assets after depreciation/ shareholders
funds.
(Rs in lakhs)
Fixed assets after
Depreciation
Shareholders
Funds
Fixed assets to Net

worth ratio
105,001,624
38,273,126
2.7434
117,844,260
61,742,003
1.9086
286,243,891
141,869,614
2.0176
654,842,238
134,813,423
4.8573
2008-09
1,694,507,842
542,943,907
3.1209
2009-10
1,797,618,088
78,532,017
22.8902
Year
2004-05
2005-06
2006-07
2007-08
93
INTERPRETATION: -
When the ratio is more than 100% it implies that owners funds or not
sufficient to finance the fixed assets and the firm as to depend upon outsiders
to finance the fixed assets.
In the years fixed assets to net worth ratio or fixed assets to proprietors funds
is less than 100% the position of company is satisfactory.
94
8.RATIO OF CURRENT ASSETS TO PROPERITORS FUNDS:The ratio is calculated by dividing the total of current assets by the amount of
share holder funds.
The ratio indicates the extent to which proprietors funds are invested in current
assets.
Ratio of current assets to proprietors funds =current assets / share holder funds
*100.
(Rs in lakhs)
Current assets
Shareholders
Funds
Current assets to
proprietors funds
189,351,487
38,273,126
494.7374
202,589,303
61,742,003
328.1223
206,854,975
141,869,614
145.8063
387,344,261
134,813,423
287.3187
2008-09
609,508,473
542,943,907
112.2599
2009-10
587,256,629
78,532,017
747.7926
Year
2004-05
2005-06
2006-07
2007-08
95
INTERPRETATION: -
The ratio indicates the to which proprietors funds are invested in current
assets.
There is no rule of thumb for this ratio depending up on the nature of the
business there may be different ratio for different firms.
Comparatively with 2008-09 and 2009-10 ratio has been increased i.e., from
112.2599 to 747.7926
96
PROFITABILITY RATIO
9.GROSS PROFIT RATIO:Gross Profit Ratio is one of the very important ratio for measuring profitability
of a firm. It indicates how efficiency a business is using its materials and labor in the
production process. It shows the percentage of net sales remaining after subtracting
cost of good sold. A high gross profit indicates that a business can make a reasonable
profit on sales. Low gross profit indicates high cost of goods sold due to unfavorable
purchasing policies lesser sales lower selling price, excessive competition etc.
Gross Profit Ratio = Gross profit / Net Sale X 100

(Rs in lakhs)
Year
Gross Profit
Net Sales
Gross Profit Ratio
2004-05
212,780,100
1,523,744,865
13.9642
276,177,612
3,225,492,839
8.5623
378,994,508
322,047,728
117.6827
253,172,385
189,952,469
133.2819
2008-09
65,648,371
527,215,032
12.4519
2009-10
139,386,280
995,286,045
14.0046
2005-06
2006-07
2007-08
97
INTERPRETATION: -
During the study period it has been observed that the Gross Profit Ratio of
Suven Life Sciences Limited is satisfactory.
During the years 2007-08 and 2008-09 the ratio has been decreased from
113.2819 to 12.4519.
In the year 2006-07 company have high gross profit i.e. 117.6827
Higher the Gross Profit Ratio is better for the company.
10.NET PROFIT RATIO:-
98
Net Profit Ratio establishes a relationship between net profit (after taxes) and
sales. It indicates the efficiency of the management in manufacturing selling
administrative and other activities of the firm. It is also indicates the firms capacity to
face adverse economic conditions such as price competition low demand, etc. This
ratio is the overall measure of firms profitability.
Net Profit Ratio
= Net Profit after tax / Net Sales X 100
(Rs in lakhs)
Year
Net Profit
Net Sales
Net Profit Ratio
7,74,942
1,523,744,865
0.0508
24,076,532
325,492,839
7.3969
4,68,544
322,047,728
0.1454
7,743,945
189,952,469
4.0767
2008-09
12,769,253
527,215,032
2.4220
2009-10
45,777,763
995,286,045
4.5994
2004-05
2005-06
2006-07
2007-08
99
INTERPRETATION : -
During the study period the net profit ratio of Suven Life Sciences Limited is
very less in the year 2004-05.
In the year 2005-06 net profit (7.3969) is high and after year the ratio has been
decreased year by year i.e., 2006-07=0.1454 2007-08=4.0767, 2008-09=2.422,
2009-10=4.5994.
In the year 2008-09 net profit ratio has declined i.e., 2.422 because
expenditures are increased.
High ratio is better for profitability of the company.
100
CURRRENT ASSETS MOVEMENT RATIOS

11.INVENTORY TURNOVER RATIO:Inventory Turnover Ratio indicates how efficiency the firm is managing its
inventory. This ration indicates the number of times the stock has been turned over
during the period.
Normally the higher the ratio indicates better inventory management, low ratio
means that sales required to be pushed up and action is called for
Inventory Turnover Ratio = Net Sales / Inventory

(Rs in lakhs)
Net Sales
A.v.g
Inventory
Inventory Turnover
Ratio
1523744865
73599790
2.0703
325492839
132373991
2.4588
322047728
139828822
2.3031
189952469
183008551
1.0379
2008-09
527215032
266836789
1.9757
2009-10
995286045
659429819
2.7690
Year
2004-05
2005-06
2006-07
2007-08
101
INTERPRETATION : -
Inventory Turnover Ratio during the study period 2004-05 to 2009-10.
Inventory Turnover Ratio has been increased up to 2004-05 i.e. 2.0703,

2.4588, 2.3031, 1.0379, 1.9757, 2.769.
Higher Inventory turnover ratio is preferable.
102
12.INVENTORY CONVERSION PERIOD RATIO : The Ratio indicates the extent to which the stock has been converted in time. It
gives the average inventory. The ratio is very helpful to the company because it
explains to them whether the stock has been converted in time or not.
Stock conversion Period =No. of days in a year / inventory Turnover Ratio
Year
2004-05
2005-06
2006-07
No. of days in a
year
inventory Turnover
Ratio
Stock conversion
Period
365 days
2.0703
176.3029
365 days
2.4588
148.4463
365 days
2.3031
158.4820
365 days
1.0379
351.6716
2008-09
365 days
1.9757
184.7446
2009-10
365 days
2.7690
131.8165
2007-08
103
INTERPRETATION: -
Inventory conversion period has been declined in 2009-10 that is 131.8165

days compared with 2005-06that is 176.3029 days.
In the year 2005-06 Inventory conversion period was decrease that 18 days
compared with2006-07.
Inventory conversion period ratio of the company having slightly up &

downs of conversion period
104
13.WORKING CAPITAL TURNOVER RATIO : This is calculated by dividing net sales by the working capital. Working
Capital is the excess of current assets over current liabilities. It is needed by the
business to meet the day to day business needs this ratio indicates extent to working
capital which always should be moderate the decline in working capital indicates that
either working capital is in excess of requirement (or) there is operational inefficiency.
Working Capital Turnover Ratio = Sales / Net Working Capital.
Networking Capital = Current Assets - Current Liabilities.
Sales
Working Capital
Working Capital
Turnover Ratio
1,523,744,865
15,519,743
98.1810
325,492,839
154,251,942
2.1101
322,047,728
140,816,914
2.2869
189,952,469
229,224,816
0.8286
2008-09
527,215,032
55,303,909
9.5330
2009-10
995,286,045
471,003,781
2.1131
Year
2004-05
2005-06
2006-07
2007-08
105
INTERPRETATION: -
Working Capital Turnover Ratio during the study period is in 2004-05 is

98.181 times, 2005-06 is 2.1101 times, in 2006-07 is 2.2869 times, in 2007-08
is 0..8286 times, in 2008-09 is 9.533 times, in 2009-10 is 2.1131 times.
Working Capital Turnover Ratio of the company during the study period
indicates the company is having up and downs of the working capital.
Higher working capital ratio is feasible for the company
106
Conclusions
The current Ratio during the study period that is from 2004-05 to 2009-10: In
the year 2008-09 it is very high i,e 6.47
Absolute Liquid Ratio is low because it 2004-05 = 0.043, 2005-06 = 02921,

2006-07 = 0.022, 2007-08 = 0.0162, 2008-09 = 0.02126, 2009-10 =
0.03615where as the accepted standard is 0.4 in all, the company needs to
improve its short term financial position
A rule of thumb as a convention Quick Ratio of 1:1 is considered satisfactory.

It is generally through that if Quick assets are equal to current liabilities.
A very low ratio not considered satisfactory for the shareholders because it
indicates that the firm has not been able to use low cost outsiders funds to
magnify their earnings.
Proprietary Ratio or equity ratio has been i.e. 2004-05 is 0.13, 2005-06 is
0.1926, 2006-07 is 0.2877, 2007-08 is 0.1293, 2008-09 is 0.2356, 2009-10 is
0.0329 which have been maintain same level.
Solvency Ratio of the firm in years 2004-05=0.7547, 2005-06=0.6568, 200607=0.5783, 2007-08=1.592, 2008-09=0.7254, 2009-10=0.5586Is able higher
the total assets are satisfactory.
In the years fixed assets to net worth ratio or fixed assets to proprietors funds
is less than 100% the position of company is satisfactory.
107
Comparatively with 2008-09 and 2009-10 ratio has been increased i.e., from
112.2599 to 747.7926
During the years 2007-08 and 2008-09 the ratio has been decreased from
113.2819 to 12.4519.
In the year 2005-06 net profit (7.3969) is high and after year the ratio has been
decreased year by year i.e., 2006-07=0.1454 2007-08=4.0767, 2008-09=2.422,
2009-10=4.5994.
Inventory Turnover Ratio during the study period 2004-05 to 2009-10.
Inventory Turnover Ratio has been increased up to 2004-05 i.e. 2.0703,

2.4588, 2.3031, 1.0379, 1.9757, 2.769.
Inventory conversion period has been declined in 2009-10 that is 131.8165

days compared with 2005-06that is 176.3029 days.
In the year 2005-06 Inventory conversion period was decrease that 18 days
compared with2006-07.
Working Capital Turnover Ratio during the study period is in 2004-05 is

98.181 times, 2005-06 is 2.1101 times, in 2006-07 is 2.2869 times, in 2007-08
is 0..8286 times, in 2008-09 is 9.533 times, in 2009-10 is 2.1131 times.
Working Capital Turnover Ratio of the company during the study period
indicates the company is having up and downs of the working capital.
108
Suggestions
The firm has to Maintain / Utilize Quick Assets in proper mode.
The firm is better to maintain the cash reserves for short term requirements.
The Madhucon Sugar and Industries Power Limited should Maintain /

Improve the proper external funds it will helps to the firm for maximize the
shareholders funds.
The Madhucon Sugar and Industries Power Limited should concentrate to

improve the Gross profit for measuring profitability of a firm and optimum
utilization of materials & labour in the production process.
The Madhucon Sugar and Industries Power Limited should concentrate to

improve the Net profit for measuring efficiency of firm.
The should take necessary precautions for improving the profitability of the
Madhucon Sugar and Industries Power Limited.
109
110

Sample Project Data Analysis

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Sample Project Data Analysis

Hochgeladen von

Copyright:

Verfügbare Formate

PARTICULARS

COMPARATIVE BALANCE SHEET OF

COMPARATIVE BALANCE SHEET OF

Net current assets

COMPARATIVE BALANCE SHEET OF

Net current assets

COMPARATIVE BALANCE SHEET OF

COMPARATIVE BALANCE SHEET OF

Net current assets

COMMONSIZE BALANCE SHEET OF

COMMONSIZE BALANCE SHEET OF

Net current assets

COMMONSIZE BALANCE SHEET OF

Net current assets

COMMONSIZE BALANCE SHEET OF

Net current assets

Total outsiders funds were decreased 16,502,37613to 1,332,200,163i.e. From

Current Ratio = Current Assets / Current Liabilities

2.LIQUID RATIO (OR) QUICK RATIO (OR) ACID TEST RATIO

INTERPRETATION:-IDEAL RATIO IS1:1

A rule of thumb as a convention Quick Ratio of 1:1 is considered satisfactory.

INTERPRETATION: -IDEAL RATIO IS 0.75:1

Absolute Liquid Ratio is low because it 2004-05 = 0.043, 2005-06 = 02921,

Higher absolute liquid ratio is Feasible.

Debt Equity Ratio

A ratio is of 1:1 may be usually considered to be a satisfactory ratio although

P.R (or) Equity Ratio

Proprietary Ratio or equity ratio represents the relationship of owners funds to

6. SOLVENCY RATIO (OR) TOTAL LIABILITIES TO TOTAL

Solvency Ratio indicates the relationship between the total liabilities to

Solvency Ratio = Total Liabilities to outsiders / Total Assets.

Generally lower the ratio of total liabilities, more satisfactory or stable is

7.FIXED ASSETS TO NETWORTH RATIO (OR) FIXED ASSETS

Fixed assets to Net

Gross Profit Ratio = Gross profit / Net Sale X 100

Gross Profit Ratio

Higher the Gross Profit Ratio is better for the company.

10.NET PROFIT RATIO:-

Net Profit Ratio

= Net Profit after tax / Net Sales X 100

Net Profit Ratio

High ratio is better for profitability of the company.

CURRRENT ASSETS MOVEMENT RATIOS

Inventory Turnover Ratio = Net Sales / Inventory

Inventory Turnover Ratio during the study period 2004-05 to 2009-10.

Inventory Turnover Ratio has been increased up to 2004-05 i.e. 2.0703,

Higher Inventory turnover ratio is preferable.

Stock conversion Period =No. of days in a year / inventory Turnover Ratio

Inventory conversion period has been declined in 2009-10 that is 131.8165

Inventory conversion period ratio of the company having slightly up &

Working Capital Turnover Ratio during the study period is in 2004-05 is

Higher working capital ratio is feasible for the company

Absolute Liquid Ratio is low because it 2004-05 = 0.043, 2005-06 = 02921,

A rule of thumb as a convention Quick Ratio of 1:1 is considered satisfactory.

Inventory Turnover Ratio during the study period 2004-05 to 2009-10.

Inventory Turnover Ratio has been increased up to 2004-05 i.e. 2.0703,

Inventory conversion period has been declined in 2009-10 that is 131.8165

Working Capital Turnover Ratio during the study period is in 2004-05 is

The firm has to Maintain / Utilize Quick Assets in proper mode.

The Madhucon Sugar and Industries Power Limited should Maintain /

The Madhucon Sugar and Industries Power Limited should concentrate to

The Madhucon Sugar and Industries Power Limited should concentrate to

Das könnte Ihnen auch gefallen