VADILAL INDUSTRY LTD

Gross Profit Ratio

YEAR 2007-08 2008-09 2009-10

GP RATIO ( % ) 8.58 8.75 10.16

GPRatio

10.5 10.16
10
9.5
Ratio ( %) 9 8.58 8.75
8.5
8
7.5
2007-08 2008-09 2009-10
Year

Interpretation: The gross profit was around 8.5% in both the years2008
and 2009. But there is a good increase in profitability in 2010 by 10.16%.
 VADILAL INDUSTRY LTD

Net Profit Ratio

YEAR 2007-08 2008-09 2009-10

Net Profit Ratio ( % ) 2.87 0.73 3.04

Net Profit Ratio

3.5 3.04
2.87
3
2.5
NPRatio 2
(%) 1.5
1 0.73
0.5
0
2007-08 2008-09 2009-10
Year

Interpretation: There was a sharp decline in net profit in the year

2009 from 2008. But company cover it up and earn a good profit in
2010 by 3.04%.
 VADILAL INDUSTRY LTD

Inventory Turnover Ratio

YEAR 2007-08 2008-09 2009-10

Inventory Ratio 4.8 times 4.36 times 4.07 times

Inventory Turnover Ratio

5 4.8
4.8
4.6 4.36
Ratio (in 4.4
times) 4.2 4.07
4
3.8
3.6
2007-08 2008-09 2009-10
Year
 VADILAL INDUSTRY LTD

Interpretation: There is a continuous decrease in the ratio. It

means company’s sales ability is declined due to high rate of
competition.

Debtors Turnover Ratio

YEAR 2007-08 2008-09 2009-10

Debtors Ratio 6.02 times 5.19 times 6.02 times

Debtors Turnover Ratio

6.2 6.02 6.02

6
5.8
5.6
Ratio 5.4 5.19
5.2
5
4.8
4.6
2007-08 2008-09 2009-10
Year
 VADILAL INDUSTRY LTD

Interpretation: Company’s debtors turnover ratio had declined

around 1% from 2008 to 2009. But company came back to its
original ratio position in2010.

Debtors Ratio

Rs. in Millions

YEAR 2007-08 2008-09 2009-10

Debtors 273.7 295.9 332.15
Sales 1320.34 1473.73 1885.42
Ratio 76 Day 73 Day 64 Day

DebtorsRatio

80
76
75 73

70
Days

64
65

60

55
2007-08 2008-09 2009-10
Year
 VADILAL INDUSTRY LTD

Interpretation: Company’s this ratio is decreasing continuously

from the last 3 years. It means company has increased its ability to
pay its debtors every year.

Creditors Ratio

Rs. in Millions

YEAR 2007-08 2008-09 2009-10

Purchases 637.28 732.01 1001.71
Creditors 283.88 274.59 468.08
Ratio 163 Day 137 Day 171 Day

CreditorsRatio

200 171
163
150 137
Days

100

50

0
2007-08 2008-09 2009-10
Year

Interpretation: This ratio measures the length of time it takes a

company to pay its creditors. From the data we can conclude that
 VADILAL INDUSTRY LTD

company’s ability to pay its creditors has decreased by 50% in the

year 2010.

Fixed Assets Turnover Ratio

YEAR 2007-08 2008-09 2009-10

Ratio 1.85 Times 1.69 Times 1.97 Times

FixedAssetsTurnover Ratio

2 1.97
1.95
1.9 1.85
1.85
1.8
Times

1.75 1.69
1.7
1.65
1.6
1.55
2007-08 2008-09 2009-10
Year

Interpretation: Company’s ability to generate sales per rupee

from its fixed assets almost equal in 3 years.
 VADILAL INDUSTRY LTD

Operating Ratio

YEAR 2007-08 2008-09 2009-10

Ratio (in %) 8.34 7.12 8.96

OperatingRatio

10
8
Ratio in%

6
4
2
0
2007-08 2008-09 2009-10
Year

Interpretation: company’s operating performance has declined by

around 1% from 2008 to 2009. But company has increased it
nicely by 8.96% this year.
 VADILAL INDUSTRY LTD

Total Assets Turnover Ratio

YEAR 2007-08 2008-09 2009-10

Ratio 1.67 Times 1.53 Times 1.61 Times

Total AssetsTurnover Ratio

1.7 1.67
1.65 1.61
1.6
Times

1.55 1.53

1.5
1.45
2007-08 2008-09 2009-10
Year

Interpretation: Company’s ability to generate sales per rupee

from its total assets almost equal in 3 years.
 VADILAL INDUSTRY LTD

Return on Equity

YEAR 2007-08 2008-09 2009-10

Ratio (in %) 11.64 3.2 15.92

Return on equityRatio

20
15.92
15
Ratio in%

11.64
10
5 3.2

0
2007-08 2008-09 2009-10
Year

Interpretation: There is a sharp declined in profitability of equity

fund from the year 2008 to 2009. But company has increased its
profitability 5 times than last year in 2010.
 VADILAL INDUSTRY LTD

Current Ratio

YEAR 2007-08 2008-09 2009-10

Ratio 2.51 2.88 2.23

Current Ratio

4
2.88
3 2.51
2.23
Ratio

2
1
0
2007-08 2008-09 2009-10
Year

Interpretation: Company’s has increased its existence of current

assets in 2009. But it has fallen down again by 0.50% in 2010.
 VADILAL INDUSTRY LTD

Quick Ratio

YEAR 2007-08 2008-09 2009-10

Ratio 1.42 1.54 1.04

Quick Ratio

2
1.54
1.42
1.5
1.04
Ratio

0.5

0
2007-08 2008-09 2009-10
Year

Interpretation: Company’s ability to meet its liability has

decreased by 50% in 2010 comparing to the last year.
 VADILAL INDUSTRY LTD

Return on Capital Employed

YEAR 2007-08 2008-09 2009-10

Ratio (in %) 14.26 11.13 14.68

ROCE

16 14.26 14.68
14
11.13
12
Ratio in %

10
8
6
4
2
0
2007-08 2008-09 2009-10
Year

Interpretation: Company’s overall profitability has decreased in

2009 by 3%. But company has cover it up and come back to its
original situation in 2010 in the term of profitability.
 VADILAL INDUSTRY LTD

Debt to Equity Ratio

YEAR 2007-08 2008-09 2009-10

Ratio 1.37 1.79 2.19

Debt to Equty Ratio

2.5 2.19
2 1.79

1.5 1.37
Ratio

0.5

0
2007-08 2008-09 2009-10
Year

Interpretation: company’s growth is good by seeing this ratio.

Because it has increased its equity and reduced its debt
continuously 3 years.
 VADILAL INDUSTRY LTD

Return on Asset Ratio

YEAR 2007-08 2008-09 2009-10

Ratio (in %) 4.78 1.13 4.92

ReturnonAsset Ratio

6
4.78 4.92
5
4
Ratio in %

3
2
1.13
1
0
2007-08 2008-09 2009-10
Year

Interpretation: Company’s net income from its assets has

decreased in 2009 by 3.5%. But company has cover it up and come
back to its original situation in 2010.
 VADILAL INDUSTRY LTD

Earning per Share Ratio

YEAR 2007-08 2008-09 2009-10

Ratio (Rs.) 5.29 1.51 8

EPSRatio

9 8
8
7
6 5.29
Ratio in Rs.

5
4
3
2 1.51
1
0
2007-08 2008-09 2009-10
Year

Interpretation: Company’s income per share has declined very

badly in 2009 from the last year. But company has increased it
700% in 2010 which is apreciatable for the company.
 VADILAL INDUSTRY LTD

Dividend per Share Ratio

YEAR 2007-08 2008-09 2009-10

Ratio (Rs.) 5.29 1.51 8

DPSRatio

10
8
8
Ratio (Rs.)

6 5.29

4
1.51
2
0
2007-08 2008-09 2009-10
Year

Interpretation: Company’s amount of profit distributed per share

has declined very badly in 2009 from the last year. But company
has increased it 700% in 2010 which is apreciatable for the
company.
 VADILAL INDUSTRY LTD

Year 2007-08 % 2008-09 % 2009-10 %

SOURCES OF FUNDS
Share Capital 71.88 7.91 71.88 7.05 71.88 5.44
Share warrants &Outstanding 0 0 0
31.5 27.9
Reserve 286.28 2 284.6 2 327.13 24.8
39.4 34.9
Shareholder's Funds 358.16 3 356.48 7 399.01 30.2
49.4 53.2
Secured Loans 448.87 2 542.53 2 721.23 54.6
11.1 11.8
Unsecured Loans 101.22 4 120.35 1 200.85 15.2
60.5 65.0
Total Debts 550.09 7 662.89 3 922.08 69.8
Total Liabilities 908.25 100 1019.36 100 1321.09 100
89.5 92.0
Net_Block 813.6 8 937.98 2 979.57 74.2
39.2 39.5
Less: Accumulated Depreciation 356.84 9 403.05 4 455.86 34.5
Less: Impairment of Assets 0 0 0
Lease Adjustment A/c 0 0 0
Capital Work in Progress 60.79 6.69 15.88 1.56 304.99 23.1
Pre-operative Expenses pending 3.31 0 0
Assets in transit 0 0 0
Investments 33.17 33.03 3.24 15.88 1.2
Current Assets, Loans &
Advances
33.9
Inventories 308.61 8 370 36.3 557.32 42.2
30.1 29.0
Sundry Debtors (Debtors) 273.7 3 295.9 3 332.15 25.1
Cash and Bank 14.65 1.61 16.23 1.59 24.66 1.87
Other Current Assets 17.55 1.93 17.1 1.68 34.18 2.59
10.6
Loans and Advances 97.05 9 90.43 8.87 94.15 7.13
78.3 77.4
Total Current Assets 711.56 4 789.65 7 1042.45 78.9
Less : Current Liabilities and
Provisions
31.2 26.9
Current Liabilities 283.88 6 274.59 4 468.08 35.4
Provisions 27.15 2.99 25.94 2.54 49.2 3.72
 VADILAL INDUSTRY LTD

34.2 29.4
Total Current Liabilities 311.04 5 300.52 8 517.28 39.2
47.9
Net Current Assets 400.53 44.1 489.13 8 525.17 39.8
Miscellaneous Expenses not
written off 4.27 0.47 4.16 0.41 6.26 0.47
Deferred Tax Assets / Liabilities -50.57 -5.57 -57.77 -5.67 -54.92 -4.2
Total Assets 908.25 100 1019.36 100 1321.09 100
11.7
Contingent Liabilities 106.43 2 99.96 9.81 119.53 9.05