A

RESEARCH REPORT
ON
RATIO ANALYSIS
SUBMITTED TO
KURUKSHETRA UNIVERSITY, KURUKSHETRA
In the partial flfill!ent f"r the re#ire!ent
Of the $e%ree "f
MASTERS O& BUISNESS ADMINISTRATION
'()'*'()+
Un$er the %i$an,e "f- S.!itte$ B/-
M0 Snita Y"%e0h K!ar
&a,lt/, MBA MBA 1&inal2
S3a!i De4i D/al In0titte "f En%% 5 Te,hn"l"%/
Bar3ala 1Pn,h6la2
1


SECTION PAGE NO.
Certificate 3
Preface 4
Acknowledgement 5
Declaration 6
Chapter 1 (Introduction !"#6
Introduction $o Pro%ect
Introduction $o Indu&tr' Profile
Chapter # ((e)iew *f +iterature #!"#,
Chapter 3 ((e&earch -ethodolog' #."3/
*0%ecti)e& *f 1tud'
1cope *f $he 1tud'
+imitation *f $he 1tud'
Data Anal'&i& And Interpretation 31",#
2inding& ,3",5
Conclu&ion And 1ugge&tion& ,6",,
3i0liograph' ,."./
#
CERTI&ICATE
$hi& i& to certif' that MR. YOGESH KUMAR &tudent of -3A 4
th
4 1eme&ter of our In&titute ha&
completed the PROJECT titled RATIO ANALYSIS5 under m' guidance and that no part of thi&
report ha& 0een &u0mitted for the award of an' other Degree or Diploma to an' other 3oard or
6ni)er&it'4
Ms. Sunita
Principal
Facult
S!!IET
3
PRE&ACE
1omeone ha& rightl' &aid that practical knowledge i& far 0etter than cla&&room teaching4
During the cour&e of thi& pro%ect we actuall' reali7ed how true it i& when we anal'7ed the and the
real world of 2inancial a&pect&4 $hi& pro%ect ena0led me to know the how a compan' anal'i&e it&
financial efficienc' and it& operational efficienc'4
$he &u0%ect of m' &tud' i& 8RATIO ANALYSIS9 which i& a tool for making the financial anal'&i&
of an' organi7ation4 I ha)e made financial anal'&i&l'&i& of !A"UR IN!IA LIMITE! 0' u&ing the
ratio& of the compan' and for thi& I ha)e taken the three 'ear& data of the compan' &o that
performance can 0e anal'7ed44
$he report contain& at fir&t5 the 0rief introduction a0out the (A$I* A:A+;1I1 then the introduction
a0out compan'5 the product& and &er)ice& 0eing offered 0' the it5 &tud' of the ratio& and ratio anal'&i&
of the compan' 4 and then the finding& and anal'&i& of the re&earch on the 0a&i& of which final
&ugge&tion& and conclu&ion ha& 0een drawn4
4
ACKNOWLEDGEMENT
This study was made possible with the consultations, support and kind opinions from several people. So with
immense gratitude, I acknowledge all those, whose guidance and valuable inputs have helped in the
materialization of this project.
I am indebted to L!T. "s Sunita, faculty of finance, S##IT, $%&'%L% for her unfailing support throughout
the study. (er timely suggestions and novel ideas provided a better insight for the organizational study of the
company.
I thank S##IT, $%&'%L%, for providing me with the opportunity to carry out this project.
I thank all my friends, whose help and suggestions, have helped shape my project into what it is today.
.
YOGESH KUMAR
ROLL NO# $%%&
5

DECLARATION
I ;*<=1> ?6-A( &tudent of -3A I@ 1eme&ter5 &tud'ing in 1AA-I D=@I DA;A+
I:1$I$6$=5 3A(AA+A here0' declare that thi& pro%ect5 titled 8(A$I* A:A+;1I19 ha& 0een
prepared 0' me a& part of the reBuirement& of the -3A Program of the ?6(6?1>=$(A
6:I@=(1I$; (3atch of #/1#"#/14 i& m' original piece of work and i& done with the total integrit'
to m' pur&ue m' re&earch o0%ecti)e&4
-' guide for the pro%ect ha& 0een lect4 16:I$A4
:o attempt ha& 0een made to manipulate an' information and it i& authentic to the 0e&t of
m' knowledge4 All the &ource& of information ha)e 0een dul' di&clo&ed4
YO7ESH KUMAR

ROLL NO* )''8

6
CHAPTER-1
INTRODUCTION




!

RATIO ANALYSIS
INTRO!UCTION
$he ratio anal'&i& i& one of the mo&t important and powerful tool& of financial anal'&i&4 It i& the
proce&& of e&ta0li&hing and interpreting )ariou& ratio&4 It i& with the help of ratio& that the ratio& that
the financial &tatement can 0e anal'7ed more clearl' and deci&ion& can made from &uch anal'&i&4
(atio Anal'&i& ena0le& the 0u&ine&& ownerCmanager to &pot trend& in a 0u&ine&& and
to compare it& performance and condition with the a)erage performance of &imilar 0u&ine&&e& in the
&ame indu&tr'4 $o do thi& compare the ratio& with the a)erage of 0u&ine&&e& &imilar to it and compare
it& own ratio& for &e)eral &ucce&&i)e 'ear&5 watching e&peciall' for an' unfa)ora0le trend& that ma' 0e
&tarting4 (atio anal'&i& ma' pro)ide the all"important earl' warning indication& that allow to &ol)e
the 0u&ine&& pro0lem& 0efore the 0u&ine&& i& de&tro'ed by them.
$he 3alance 1heet and the 1tatement of Income are e&&ential5 0ut the' are onl' the
&tarting point for &ucce&&ful financial management4 1o we appl' (atio Anal'&i& to 2inancial
1tatement& to anal'7e the &ucce&&5 failure5 and progre&& of the 0u&ine&&4
CONCEPT OF RATIO
A ratio i& a &imple arithmetical eDpre&&ion of the relation&hip of one num0er to
another4 It ma' 0e defined a& the indicated Buotient of two mathematical eDpre&&ion&4 According to
AccountantE& hand0ook 0' AiDonkell and 3edford5 a ratio 8i& an eDpre&&ion of the Buantitati)e
relation&hip 0etween two num0er&94
(atio anal'&i& i& the techniBue of calculation of num0er of accounting ratio& from the
data found in the financial &tatement&5 the compari&on of the accounting ratio& with tho&e of the
pre)iou& 'ear& or with tho&e of other concern& engaged in &imilar line of acti)itie& or with tho&e of
&tandard ratio& and the interpretation of the compari&on4
,

Definition
8Sin'l( mo&t important t(c)ni*u( of +inancial analsis in which *uantiti(s are
con)erted into ratio& for meaningful c,-paris,ns. with pa&t ratio& and ratio& of other +ir-s in the
&ame or different in/ustri(s. (atio analsis determine& tr(n/s and eDpo&e&
F 4
RATIO ANALYSIS
Ahile ratio& can tell u& much a0out a compan'5 it i& important to note that ratio& are
most effective when anal'7ing a ratioE& trend or when comparing a ratio again&t it& competitor&4
6nder&tanding the compan'E& hi&tor' and en)ironment i& ke' in determining it& health5 )alue5 and
future potential4 It i& al&o important to note how the ratio i& changing4 2or eDample5 take the PC= ratio5
which i& the &tock price di)ided 0' earning& of the compan'4 =&&entiall'5 thi& tell u& how much
in)e&tor& are willing to pa' for G1 of earning& the compan' generate&4 If the PC= ratio fall&5 it ma' 0e
due to two po&&i0le factor&H 1 $he &tock price fall&5 which generall' i& pro0a0l' not a good thing5 or
# earning& are up5 and the &tock price &impl' ha&nEt compen&ated for thi& change 'et5 which i& a good
thing4 $here are man' &ource& that will gi)e a comprehen&i)e li&ting of financial &tatement& and
hi&torical pricing to calculate the&e ratio&4
V ALUATION OF R ATIOS
Earnin! "er S#are $EPS )
:et Income
I 1hare out&tanding
Mat)(-atical !(+initi,n0 :et Income di)ided 0' &hare& out&tanding4

C,nc(ptual !(+initi,n0 $hi& num0er repre&ent& the profit of the compan' eBuall' &plit among each
&hare of the &tock4 In e&&ence5 if 'ou own one &hare of the compan'5 how much of that profit i& de&ignated
to 'our &hare4
N,t(s0
J =P1 i& clo&el' watched due to the fact that we notice a &trong correlation 0etween =P1 and
the &tock price5 i4e45 when =P1 clim0&5 the &tock price will appreciate4 $hi& i& aside from
.
the fact that the market i& in a rece&&ion or learning that the compan' i& forging it&
accounting 0ook&4
J =P1 i& one of the mo&t popular )aria0le& when )aluing a compan'4 1o important5 in fact5 that
anal'&t& are con&tantl' i&&uing e&timate& on what future =P1 ma' 0e4
J *ne wa' to anal'7e a trend i& on a 0a&ic trend 0a&i&H Buarter after Buarter after Buarter5 etc4
$he other wa' i& to compare each Buarter to the &ame Buarter of la&t 'ear4 $he rationale i&
thi&H &ome companie& eDperience &ea&onalit'5 &ea&onalit' 0eing during certain time& of the
'ear a compan' will &ee a predica0le increa&eCdecrea&e in &ale& and profit (i4e4 retail &tore&
during the Chri&tma& &ea&on4 If thi& i& the ca&e5 it i& difficult in %u&t one 'earE& period
%oo& Va'(e Per S#are $%V)

I 1tock holder& eBuit'"preferred &tock
A)erage out&tanding &hare&
Mat)(-atical !(+initi,n0 1tockholderE& =Buit' &u0tracting out Preferred 1tock5 all di)ided 0' the
a)erage out&tanding &hare& o)er gi)en period4
C,nc(ptual !(+initi,n0 $hi& &how& u& the accounting )alue of a compan' )er&u& the market )alue4 Ahile
market )alue incorporate& in)e&tor&E eDpectation& and potential growth5 the accounting )alue &how& u& the
0are num0er& of co&t& and earning&4
"(nc)-ar10 $he indu&tr' a)erage i& generall' u&ed to gauge whether the compan'E& profit margin i&
adeBuate or not4
N,t(s0
J <enerall'5 the market )alue (&tock price of the compan' i& pro0a0l' going to 0e
&ignificantl' higher than the 0ook )alue5 particularl' in a 0ull (&trong market4 In a 0ear
(weak market5 the market and 0ook )alue will pro0a0l' 0e clo&e to eBual4 If the market
)alue i& 0elow the 0ook )alue5 thi& ma' 0e a potential &ign of under)alue4
1/
Pri*e-to-Earnin! Ratio $P+E)
I 1tock price
=arning per &hare
Mat)(-atical !(+initi,n0 PC= compare& the current price of one &hare of &tock di)ided 0' the compan'E&
earning& of one &hare of &tock4
C,nc(ptual !(+initi,n0 =&&entiall'5 thi& ratio tell& u& how much in)e&tor& are willing to pa' for e)er' one
dollar of earning& the compan' pull& in4 In)e&tor& are willing to pa' more than &impl' matching dollar for
dollar 0ecau&e the' eDpect the compan' to appreciate in )alue5 i4e45 the &tock price to go up4
"(nc)-ar10 -an' in)e&tor& agree that a comforta0le (or rea&ona0le if 'ou will general PC= ratio i& #/4
-ore con&er)ati)e in)e&tor& ma' &till feel that thi& num0er i& too high5 and will u&e 15 in&tead4
N,t(s0
J Al&o known a& the 8multiple94
J Ku&t 0ecau&e a compan'E& PC= ratio ma' decrea&e o)er time doe& not mean that the
compan'E& )alue or outlook i& decrea&ing a& well4 It ma' &impl' mean that earning& are
growing fa&ter comparati)e to the &tock price4
J -o&t PC= ratio& calculated will u&e hi&torical =P14 6&e earning& e&timate& i&&ued 0' anal'&t&
(2ir&t Call to get a PC= looking into the future4
J Companie& with negati)e earning& (lo&ing mone' do not ha)e a PC=4
J Another ratio which ma' &oon 0e con&idered the replacement to the PC= i& the P=<5 or the
PriceC=arning& to <rowth ratio5 which i& neDtH
Pri*e+Earnin! to Gro,t# Ratio $PEG)

Price to earning ratio
Annual earning& per &hare growth
Mat)(-atical !(+initi,n0 $he price of the &tock di)ided 0' the earning& per &hare di)ided 0' the
annual earning& per &hare growth4
C,nc(ptual !(+initi,n0 1impl' a )ariation on the PC= ratio5 $he P=< ratio compare& a compan'E&
PC= to their earning& growth4 If the P=< ratio i& 15 the indicator tell& u& that the market price& the
&tock perfectl' to the earning& growth4 If the P=< i& a0o)e 15 it ma' 0e an indication that the &tock i&
o)er)alued4 @ice )er&a5 the &tock ma' 0e under)alued if the P=< ratio i& 0elow 14
N,t(s0 J $he P=< ratio i& 0ecoming increa&ingl' popular o)er the PC= ratio because it factor& in growth5
wherea& PC= doe& not4
11
P ROFITA%ILIT- R ATIOS
Net Profit Margin
:et income
(e)enue
Mat)(-atical !(+initi,n0 :et Income di)ided 0' (e)enue5 eDpre&&ed a& a percentage
4
C,nc(ptual !(+initi,n0 Ae remem0er the 0a&ic Income eBuationH (e)enue =Dpen&e& I :et
Income4 $hi& tell u& how much of the re)enue5 or &ale&5 that i& generated can 0e kept a& profit for the
compan'5 and that their eDpen&e& are kept in check4
"(nc)-ar10 $he indu&tr' a)erage i& generall' u&ed to gauge whether the compan'E& profit margin i&
adeBuate or not4
N,t(s0
J A low profit margin ma' not nece&&aril' reflect that the compan' it&elf i& doing poorl' in
either 0u&ine&& or too man' eDpen&e&5 0ut rather a po&&i0le pricing &trateg' with their
productC&er)ice or the impact competition i& ha)ing on them4
Gro!! Profit Marin
(e)enue"co&t of good &old
(e)enue
Mat)(-atical !(+initi,n0 (e)enue without Co&t of <ood& 1old5 all di)ided 0' (e)enue4
C,nc(ptual !(+initi,n0 $hi& allow& u& to &ee the profit after operating eDpen&e& onl' ha)e 0een
taken into account4 $hi& a&&i&t& in helping u& under&tand the financial health of the compan' in term&
of knowing whether or not the compan'E& profit i& enough to pa' off it& other eDpen&e&4
N,t(s0
J $he u&e of ha)ing 0oth a :et Profit -argin and a <ro&& Profit -argin ma' &eem
redundant5 0ut can 0e )er' helpful when anal'7ed together4 In doing &o5 one can &ee
which part of a compan'E& eDpen&e& are weak in term& of minimi7ing the co&t4
1#
M ANAGEMENT E FFECTIVENESS
Ret(rn on A!!et! $ROA )
:et income
$otal a&&et
Mat)(-atical !(+initi,n0 Calculated 0' di)iding a compan'E& annual earning& 0' it& total a&&et&5
eDpre&&ed a& a percentage4
C,nc(ptual !(+initi,n0 1how& the profita0ilit' of a compan' relati)e to the total a&&et&4
"(nc)-ar10 Indu&tr' a)erage4

Ret(rn on E.(it/ $ROE )
:et income
$otal eBuit'
Mat)(-atical !(+initi,n0 Calculated a& :et Income di)ided 0' the $otal =Buit' of the compan'4
C,nc(ptual !(+initi,n0 $hi& &how& u& the profit per dollar from the in)e&tor&4 1ince plea&ing the
in)e&tor& i& ke' with pu0licl' traded companie&5 thi& i& a )er' important ratio4
N,t(s0
J In)e&tor& can tweak thi& ratio to &ee more accuratel' what wa& the return on their
in)e&tment4 2or eDample5 if 'ou are a common &hareholder5 'ou ma' want to replace
8:et Income9 with 8:et Income Preferred Di)idend&94
J If new &hare& were i&&ued throughout the 'ear thi& ratio i& calculated for5 then u&e the
weighted a)erage of the num0er of &hare&4
J A& an in)e&tor5 'ou &hould eDpect a higher (*= for growth companie&4
J Companie& that 0ring in high profit& per dollar will tend to pa' off &hareholder& in the
form of higher di)idend&4
13
F INANCIAL S TRENGTH +S OLVENC- R ATIOS
C(rrent Ratio
Current a&&et
Current lia0ilitie&
Mat)(-atical !(+initi,n0 Defined a& Current A&&et& di)ided 0' Current +ia0ilitie&5 thi& ratio i& a
mea&ure of &hort"term &ol)enc'4
C,nc(ptual !(+initi,n0 $he current ratio &how& u& how well a compan' i& a0le to pa' off it& &hort"
term de0t u&ing it& mo&t liBuid a&&et&4
"(nc)-ar10 819L A ratio of 819 would indicate that the compan' ha& eDactl' enough ca&h (or a&&et&
that i& relati)el' ea&' to turn into ca&h to pa' off it& de0t4 If the ratio i& higher than 8195 the compan'
can &ucce&&full' pa' off it& de0t while at the &ame time &till ha)e ca&h left o)er to continue operating4
:aturall'5 if the ratio i& under 8195 then in)e&tor& &hould 0e wear' of the fact that the compan' cannot
pa' off it& &hort"term de0t if nece&&ar'4 I a compan' ha& a ratio of 8#4595 one can &a' the compan' can
pa' off it& lia0ilitie& more than two time& o)er4
N,t(s0
J $here i& &uch thing a& 8too high9 a current ratio4 2or eDample5 if a compan' ha& a ratio of
8!95 it ma' mean that the compan' i& not effecti)el' u&ing their mone'L there i& too much
ca&h &itting around doing nothing4 Perhap& the compan' &hould 0e u&ing their mone' to
in)e&t in other pro%ect&M *n the other hand5 the compan' ma' 0e &tockpiling their mone'
to 0u' out another compan'4
J -ore con&er)ati)e in)e&tor& ma' con&ider a 0enchmark of 81459 and a 0enchmark of 819
for the Nuick (atio (which i& neDt4
J Ahile the Current (atio ha& it& own 0enchmark5 there ma' 0e time& in which one might
wi&h to forego thi& num0er4 2or eDample5 the indu&tr' a)erage in which a compan'
'ou are looking at ma' 0e a Current (atio of /4!54 In thi& ca&e5 it ma' 0e important to
con&ider wh' the indu&tr' a)erage i& &o low5 and whether or not 'ou &hould 0e
comparing the compan' again&t it& own 0enchmark5 or the indu&tr'E& 0enchmark4
0(i*& Ratio $A*i1 Te!t )
Current a&&et&"in)entor'
Current lia0iltie&
Mat)(-atical !(+initi,n0 Current A&&et& &u0tracting out In)entor'5 all di)ided 0' Current
+ia0ilitie&4
C,nc(ptual !(+initi,n0 -uch like the Current (atio5 the Nuick (atio i& a mea&ure of how well the
compan' can pa' off it& lia0ilitie&4 >owe)er5 0ecau&e we &u0tract out in)entor'5 thi& ratio 0ecome& a
much more rigorou& te&t of liBuidit'4 $he rea&on 0eing in)entor' i& con&idered the least liquid of the
current a&&et&4
N,t(s0 J If the Nuick (atio i& &ignificantl' lower than the Current (atio5 then it indicate& the compan' i& hea)il'
dependent upon in)entor'4
14
Tota' De2t to E.(it/
$otal lia0ilitie&
$otal eBuit'
Mat)(-atical !(+initi,n0 $otal +ia0ilitie& di)ided 0' $otal =Buit'4
C,nc(ptual !(+initi,n0 $he $otal De0t to =Buit' ratio help& u& mea&ure a compan'E& financial
le)erage4 It &how& u& how much of a compan'E& financing of a&&et& i& due to in)e&tor& putting in
mone' into the compan'5 or perhap& loan& taken out 0' 0ank&4
"(nc)-ar10 819L A ratio greater than 819 indicate& the compan'E& a&&et& are mainl' financed with
de0t5 while a ratio le&& than 819 indicate& the compan'E& a&&et& are primaril' &upplied with eBuit'4
$he higher the ratio5 the more le)erage a compan' ha&5 al&o indicating that it i& aggre&&i)el' financing
it& a&&et& with de0t4 $he 0enefit& are two"foldH $hi& ma' mean that their earning& areCwill 0e more
)olatile and at a higher ri&k of defaulting (going 0ankrupt5 0ut al&o mean& a higher potential pa'out
to the compan'E& in)e&tor& and &hareholder&4
Tota' De2t to Tota' A!!et Ratio

$otal lia0ilitie&
$otal a&&et&

Mat)(-atical !(+initi,n0 $otal +ia0ilitie& di)ided 0' $otal A&&et&4
C,nc(ptual !(+initi,n0 $hi& ratio i& not much different from the $otal De0t to =Buit' ratio4
=&&entiall'5 it tell& u& what portion of the compan'E& a&&et& i& financed through de0t4
"(nc)-ar10 Indu&tr' a)erage or 8194 If the ratio i& a0o)e 8195 that would indicate that the ma%orit'
of the compan'E& a&&et& are financed through de0t5 while if the ratio i& under 8195 than the compan' i&
primaril' financed through eBuit'4
N,t(s0
J It i& rare that a compan' ha& a ratio higher than 8194 (emem0er the 0a&ic accounting
eBuationH A&&et& I +ia0ilitie& O *wnerE& =Buit'4 If the ratio i& a0o)e 8195 thi& would
mean the compan' ha& negati)e *wnerE& =Buit'4 If a compan' ha& negati)e *wnerE&
=Buit'5 thi& pro0a0l' mean& that their (etained =arning& account (which i& part of
*wnerE& =Buit' i& negati)eL e&&entiall'5 the'Ere lo&ing mone'5 &o the compan' need&
to compen&ate to keep it&elf afloat 0' u&ing de0t to finance it& a&&et&4
J 3ecau&e mo&t companie& will not ha)e a ratio higher than 8195 it make& &en&e to compare
thi& ratio again&t the indu&tr' a)erage4
15
E FFICIENC- R ATIOS
In3entor/ T(rno3er
Co&t of good &old
A)erage in)entor'
Mat)(-atical !(+initi,n0 Co&t of <ood& 1old di)ided 0' A)erage In)entor'4
C,nc(ptual !(+initi,n0 $he In)entor' $urno)er tell& u& how man' time& a compan' ha& gone
through5 or 8turned o)er95 it& in)entor' during a &pecified time period5 u&uall' a 'ear4 It gi)e& u& an
indication of how fa&t a compan' can &ell it& product&4
"(nc)-ar10 Indu&tr' a)erageL 3ecau&e thi& i& more of a 8performance9 ratio5 if 'ou will5 it i&
important to &ee how well the compan' i& a0le to &ell it& in)entor' compared to it& competitor&5 &o
u&ing the indu&tr' a)erage make& a nice 0enchmark4 :aturall'5 the higher the ratio5 the &tronger the
&ale&4 A low ratio would po&&i0l' indicate poor &ale&4
N,t(s0
J $here i& &uch a thing a& too high of an In)entor' $urno)er4 Ahile a high ratio ma' mean
&trong &ale&5 it ma' al&o mean our pricing &trateg' ma' gi)e u& little or no return4
A!!et T(rno3er
(e)enue
$otal a&&et
Mat)(-atical !(+initi,n0 (e)enue di)ided 0' $otal A&&et&
4
C,nc(ptual !(+initi,n0 $hi& tell& u& how much re)enue i& generated for e)er' G1 of a&&et&4 $he
higher the ratio5 the more efficient the compan' i& with it& a&&et&4
"(nc)-ar10 Indu&tr' a)erageL a& &aid a0o)e5 0ecau&e thi& i& a 8performance9 ratio5 it i& important to
&ee how the competitor&5 or the re&t of the indu&tr'5 i& doing compared to 'our&4

A**o(nt! Re*ei3a2'e T(rno3er
(e)enue
A)erage account recei)a0le&
Mat)(-atical !(+initi,n0 (e)enue di)ided 0' the A)erage Account& (ecei)a0le&4
C,nc(ptual !(+initi,n0 -ea&ure& the firmE& a0ilit' to collect pa'ment from it& cu&tomer&5 eD4 it&
a0ilit' to collect the ca&h from &omeone who paid 0' credit4 A higher ratio indicate& the firmE&
efficienc' in it& a0ilit' to collect tho&e pa'ment&5 andCor the compan' operate& more on a ca&h 0a&i&4
A low ratio ma' mean that the compan' &hould po&&i0l' re"think it& credit policie& and find out wh'
the firm cannot collect it& cu&tomerE& pa'ment& on a timel' fa&hion4
16
PROFILE OF !A"OUR IN!IA LIMITE!
INTRODUCTION TO DA%UR INDIA LIMITED
#abur India Limited is the fourth largest )"!* !ompany in India with interestsin
(ealth care, +ersonal care and )ood products. $uilding on a legacy of ,ualityand e-perience for
over .// years, today #abur has a turnover of &s..012.30
crore with powerful brands like #abur %mla, #abur !hyawanprash, 4atika,
(ajmola 5 &eal.
ORIGIN 2 GRO3TH
$he 0rief hi&tor' and growth of Da0ur India +td4 in chronological orderH
$&&4"$he 0irth of Da0ur in a &mall Calcutta pharmac'5 where Dr4 14?4 3urman
launche& hi& mi&&ion of making health care product&41,.6"1etting up a manufacturing plantH Aith the
growing popularit' of Da0urproduct&5 Dr4 3urman eDpand& hi& operation& 0' &etting up a
manufacturingplant for ma&& production& of formulation&4
=arl' $566s"Da0ur enter& the &peciali7ed area of :ature 0a&ed A'ur)edic
-edicine&5 for which &tandardi7ed drug& are not a)aila0le in the market4
$5$5"$he need to de)elop &cientific proce&&e& and Bualit' check& for ma&&
production of traditional A'ur)edic medicine& lead& to e&ta0li&hment of
re&earch la0oratorie&4
$5%6"da0ur eDpand& further with new manufacturing unit& at :arendrapur and
Da0urgram4 $he di&tri0ution of Da0ur product& &pread& to other &tate& like
3ihar and the :orth"=a&t4
$578"da0ur 0ecome& a full fledged compan'" Da0ur India(Dr4 14 ?4 3urman P)t4
+td4
$59%"da0urE& operation& &hift to Delhi4 A new manufacturing i& &et up in
temporar' premi&e& in 2arida0ad5 on the out&kirt& of Delhi4
$595"Commercial production &tart& in the 1ahi0a0ad factor' of Da0ur5 one of
the large&t and 0e&t eBuipped production facilitie& for A'ur)edic medicine&4
$5&8#Da0ur 0ecome& a Pu0lic +imited Compan'4 Da0ur India come& into 0eing
after re)er&e merger with @idogum +imited4
1!
$55%"0eginning a new chapter of &trategic partner&hip& with international0u&ine&&e&5 Da0ur enter&
into a %oint )enture with Agrolimen of 1pain4 $hi& new)enture i& to manufacture and market
confectionar' item& in India4
$557"da0ur enter& a &peciali7ed health care area of cancer treatment with it&oncolog' formulation
plant at 3addi in >imachal Prade&h4
$554"Da0ur India +td4 rai&e& it& fir&t pu0lic i&&ue4 Due to market confidence inthe Compan'5 &hare&
i&&ued at a high premium are o)er &u0&cri0ed #1 time&4
$55:"=Dtending it& glo0al partner&hip&5 Da0ur enter& into %oint )enture& with*&em of I&rael for food
and 3ongrain of 2rance for chee&e and other dair' product&4
$558"2or 0etter operation and management5 3 &eparate di)i&ion& created according to their product
miD" >ealth Care Product& Di)i&ion5 2amil' Product& Di)i&ion and Da0ur A'ur)edic 1pecialtie&
+imited4
$559"Da0ur enter& full &cale in the na&cent proce&&ed food& market with the creation of the 2ood&
Di)i&ion4 Pro%ect 1$A(1(1tri)e to Achie)e (ecord 1ucce&&e& i& initiated to gi)e a %ump &tart to the
compan' and accelerate it& growth4
$55&"Aith changing demand& of 0u&ine&& and to inculcate a &pirit of corporate go)ernance5 the
3urman famil' induct& profe&&ional& to manage the compan'4 2or the fir&t tome in the hi&tor' of
Da0ur5 a non"famil' profe&&ional C=* &it& at the helm of the Compan'4
%666"Da0ur e&ta0li&he& it& market leader&hip &tatu& with a turno)er of 15/// Crore&4 2rom a &mall
0eginning and upholding the )alue& of it& founder5 Da0ur now enter& the augu&t league of large
corporate 0u&ine&&e&4
%66:"Da0ur acBuire& 3al&araE& h'giene and home product 0u&ine&&e& in a (& 143 crore all"ca&h deal4


1,
!A"UR AT PRESENT

P +eading con&umer good& compan' in India with 4th large&t turno)er of
(&41536 Crore& (2;/4
P # ma%or &trategic 0u&ine&& unit& (136 " Con&umer Care Di)i&ion (CCD
and Con&umer >ealth Di)i&ion (C>D
P 3 1u0&idiar' <roup companie& " Da0ur 2ood&5 Da0ur :epal and Da0ur
International and 3 &tep down &u0&idiarie& of Da0ur International " A&ianCon&umer Care in
3anglade&h5 African Con&umer Care in :igeria andDa0ur =g'pt4
P 13 ultra"modern manufacturing unit& &pread around the glo0e
P Product& marketed in o)er 5/ countrie&
P Aide and deep market penetration with 4! CQ2 agent&5 more than 5///
di&tri0utor& and o)er 145 million retail outlet& all o)er India Con&umer Care Di)i&ionH dealing with
2-C< Product& relating to Per&onalCare and >ealth Care4
P +eading 0rand& "
P Da0ur " $he >ealth Care 3rand
P @atika"Per&onal Care 3rand
P Anmol" @alue for -one' 3rand
P >a%mola" $a&t' Dige&ti)e 3rand
P and Da0ur Amla5 Ch'awanpra&h and +al Dant -an%an with (&41//crore turno)er each
P @atika >air *il Q 1hampoo the high growth 0rand
P 1trategic po&itioning of >one' a& food product5 leading to marketleader&hip (o)er 4/R in
0randed hone' market
P Da0ur Ch'awanpra&h the large&t &elling A'ur)edic medicine with o)er65R market &hare4
P +eader in her0al dige&ti)e& with ./R market &hare
P >a%mola ta0let& in command with !5R market &hare of dige&ti)e ta0let&categor'
P Da0ur +al $ail top& 0a0' ma&&age oil market with 35R of total &hare
P (eal %uice& en%o' a market &hare of o)er 55R in fruit %uice categor'4
Con&umer >ealth Di)i&ionH dealing with cla&&ical A'ur)ed
1.
Vision of the company
8Dedicated to the health and well 0eing of e)er' hou&e hold9
Missi,n ,+ t)( c,-pan
within and out&ide India5 and impro)e operational efficiencie& 0' le)eraging technolog'
3e the preferred compan' to meet the health and per&onal grooming need& of our target
con&umer& with &afe5 efficaciou&5 natural &olution& 0' &'nthe&i7ing our deep knowledge of
a'ur)eda and her0& with modern &cience
Pro)ide our con&umer& with inno)ati)e product& within ea&' reach
3uild a platform to ena0le Da0ur to 0ecome a glo0al a'ur)edic leader
3e a profe&&ionall' managed emplo'er of choice5 attracting5 de)eloping and retaining Bualit'
per&onnel
3e re&pon&i0le citi7en& with a commitment to en)ironmental protection
Pro)ide &uperior return&5 relati)e to our peer group5 to our &hareholder&
4
#/
B"ar$ "f Dire,t"r0
"r 4 ! $urman
!hairman
#r %nand $urman
4ice6!hairman
"r +radip $urman
#irector
"r %mit $urman
#irector
"r + # 7arang
#irector
"r Sunil #uggal
#irector
(is (ighness "aharaja *aj Singh
#irector
"r & ! $hargava
#irector
"r + 7 4ijay
#irector
"r Stuart dward +urdy
#irector
"r % 8 9ain
%ddl. *" :)inance; 5 !ompany Secretary
%uditors
"<s *. $asu 5 !o.
!hartered %ccountants
Internal %uditors
+rice 'aterhouse !oopers +vt. Ltd.
#1
##
Pr,/ucts 2 S(r;ic(s<

Da0ur India i& into 0u&ine&& of manufacturing and &elling of a'ur)edic medicine&5
0a0' care5 a'ur)edic5 natural and her0al per&onal and health product& and proce&&ed food& either
directl' or indirectl' through it& &u0&idiarie&4 Da0ur pre&ent& range of her0al and per&onal care
product&4 3ringing together the gentle touch of nature and A'ur)edaE& wi&dom4 3acked 0' the
unfailing Bualit' of Da0ur Product&4 >air oil5 2airne&& face pack5 1hampoo5 $ooth pa&te5 red gel5 lal
dant man%an5 da0ur 0inaca tooth0ru&h5 )atika hair oil5 anmol &ar&o aawla5 )atika heena conditioning
&hampoo5 )atika anti"dandruff &hampoo4 In&tead of thi& in food range of (=A+ acti)e natural %uice5
da0ur homemade5 da0ur hone' etc45 are the few 1ucce&&ful 0rand& of compan'4 Da0ur laid out a
growth &trateg' "" new product introduction&5 0rand eDten&ion& to new &egment&5 and focu& on new
geographie&4 $hi& &trateg' ha& paid rich di)idend& for Da0ur and ha& deli)ered &ale& growth ahead of
the con&umer non"dura0le &ector a)erage4 3al&araE& acBui&ition complement& Da0urE& growth &trateg'
a& it pro)ide& entr' to a new product &egment (hou&ehold care5 eDtend& Da0urE& oral care portfolio
(FwhiteE toothpa&te5 and impro)e& it& di&tri0ution mu&cle in Ae&tern and 1outhern India (focu& area&
for Da0ur5 a& well a& &trengthening it& international 0u&ine&& 0ecau&e 3al&ara eDport& to -iddle =a&t
market& where Da0ur i& tr'ing to grow it& 0u&ine&&4
In oral care5 3al&ara ha& a 6R market &hare and ha& three 0rand&5 Promi&e5 3a0ool
and -e&wak 0a&ed on her0al formulation&4 In the hou&ehold care &egment5 3al&araE& product range
include& air fre&hener& under the *donil 0rand5 in&ect repellant 0randed *domo&5 toilet cleaner& under
the 1anifre&h 0rand and di&hwa&her& under the *dopic 0rand4 All of the&e ha)e fairl' &trong 0rand
eBuit' and 3al&ara ha& in)e&ted &ignificantl' 0ehind the&e 0rand& o)er the 'ear&4 All the&e product
&egment& ha)e &ignificant growth potential5 owing to low penetration le)el&4
L(a/in' =ran/s #
Da0ur " $he >ealth Care 3rand
@atika"Per&onal Care 3rand
Anmol" @alue for -one' 3rand
>a%mola" $a&t' Dige&ti)e 3rand
and Da0ur Amla5 Ch'awanpra&h and +al Dant -an%an with (&41// crore turno)er
each
@atika >air *il Q 1hampoo the high growth 0rand
1trategic po&itioning of >one' a& food product5 leading to market leader&hip (o)er 4/R in
0randed hone' market
Da0ur Ch'awanpra&h the large&t &elling A'ur)edic medicine with o)er 65R market &hare4
+eader in her0al dige&ti)e& with ./R market &hare
#3
Hajmola tablets in command with 75% market share of digestive tablets category
#4
Da0urE& international 0u&ine&& i& profita0le and ha& operating margin& onl' &lightl' 0elow tho&e of the
dome&tic 0u&ine&&4 According to management5 there i& further potential for eDpanding margin& for the
international 0u&ine&&4 International operation& ha)e a footprint in #5 countrie& &pread o)er &iD
continent&L howe)er5 a ma%or part of it& 0u&ine&& i& concentrated in the -iddle =a&t4 $he compan'
al&o ha& four manufacturing facilitie& located in 6A=5 3anglade&h and =g'pt4 According to
management5 the compan' i& looking to eDpand it& pre&ence in the -iddle =a&t5 the Indian
1u0continent5 (u&&ia and Africa4 2or the de)eloped market& in the 61 and =urope5 Da0ur i& looking
at alliance& with di&tri0utor&5 focu&ing mainl' on o)er"the counter her0al healthcare product&4
K( Ris1s
S Competiti)e pre&&ure& from other 2-C< companie& and foreign
pla'er& entering the Indian market5 po&e a threat to Compan'E& market
&hare4
S 1trenghthening of Indian rupee i& al&o a ri&k to our =P1 e&timate& a&
Da0urE& &hare from international 0u&ine&& i& increa&ing con&tantl'

#5
ORGANISATION STRUCTURE
*rgani7ation &tructure i& 0a&ic framework with in which the managerE& deci&ion"making
0eha)iour take& place4 $he &tructure gi)e& an e&ta0li&hed pattern of relation&hip among the )ariou&
component& of an organi7ation4 It i& a )ital tool for pro)iding information a0out organi7ational
relation&hip&4
Da0ur india +td4 follow& top to 0ottom chart5 which i& a& follow&
FUNCTIONAL !EPARTMENTS OF THE ORGANISATION
$. MARKETING
$he marketing department take& care of the market de)elopment acti)itie&5 network eDpan&ion&5 &ale&
and collection&5 and marketing account&4
%. FINANCE AN! ACCOUNTS
2inance and account& department deal& with corporate finance5 account matter& related to emplo'ee&5
compan' infra&tructure5 in)e&tment& and a&&et&4
7. MATERIALS
$he material& department arrange& material& related to the product from )ariou& &upplier& 0'
negotiating price& and en&uring Bualit'4

4. PRO!UCTION
$hi& department take& care of the production and related acti)itie& to meet the target4
:. >UALITY
Nualit' department en&ure material Bualit' to deli)er a fini&hed good& for &uppl'4
8. R 2 !
( Q D will carr' out re&earch on new de&ign& and carr' out appropriate de)elopment& on the product
0efore certif'ing &ati&factor' performance to the management4
#6
CHAPTER 4 5
REVIEW OF LITERATURE
#!
R(;i(? ,+ Lit(ratur(
(e)iew of +iterature refer& to the collection of the re&ult& of the )ariou& re&earche& relating to
the pre&ent &tud'4 It take& into con&ideration the re&earch of the pre)iou& re&earcher& which arerelated
to the pre&ent re&earch in an' wa'4 >ere are the re)iew& of the pre)iou& re&earche& related with the
pre&ent &tud'H
",ll(n @$555A
conducted a &tud' on (atio @aria0le& on which he found three different u&e& of ratio
)aria0le& in aggregate data anal'&i&H (1 a& mea&ure& of theoretical concept&5 (# a& a mean& to control
an eDtraneou& factor5 and (3 a& a correction for hetero &ceda&ticit'4 In the u&e of ratio& a& indice& of
concept&5 a pro0lem can ari&e if it i& regre&&ed on other indice& or )aria0le& that contain
a common component4 2or eDample5 the relation&hip 0etween two per capita mea&ure&
ma' 0e confounded with the common population component in each )aria0le4 (egarding
the &econd u&e of ratio&5 onl' under eDceptional condition& will ratio )aria0le& 0e a &uita0le mean&
of controlling an eDtraneou& factor4 2inall'5 the u&e of ratio& to correct for hetero &ceda&ticit' i& al&o
often mi&u&ed4 *nl' under &pecial condition& will the common form forger& &oon with
ratio)ar i a0l e& cor r ect f or het er o& ceda& t i ci t '4 Al t er nat i )e& t o r at i o& f or each of
t he e ca& e& ar e di&cu&&ed and e)aluated4
C,,p(r @%666A
conducted a &tud' on 2inancial Intermediation on which he o0&er)ed that the Buantitati)e
0eha)ior of 0u&ine&&"c'cle model& in which the intermediation proce&& act& either a& a &ource of
fluctuation& or a& a propagator of real &hock&4 In neither ca&e do we find con)incing e)idence that
the intermediation proce&& i& an important element of aggregate fluctuation4
2or an econom' dr i )en 0' i nt er medi at i on & hock& 5 con& umpt i on i & not & moot her
t han out put 5 in)e&tment i& negati)el' correlated with output5 )ariation& in the capital &tock are
Buite large5 and intere&t rate& are proc'clical4 $he model econom' thu& fail& to match unconditional
moment& for t he 64 14 econom'4 Ae al & o & t r uct ur al l ' e& t i mat e par amet er & of a
model econom' i n whi ch intermediation and producti)it' &hock& are pre&ent5
allowing for the intermediation proce&& to propagate the real &hock4 $he unconditional
#,
correlation& are clo&er to tho&e o0&er)ed onl' when the intermediation &hock i& relati)el'
unimportant4
CHAPTER 4 6
RESEARCH METHODOLOG-
#.
RESEARCH METHO!OLOGY
(e&reach methodolog' i& de&cripti)e4
6&ing the ratio& a& a tool for doing the financial anal'&i& of the da0ur India ltd4
4 $o find the )ariou& data and figure& reBuired for thi& purpo&e5 i ha)e taken the
data0a&e and al&o the Annual (eport& of Da0ur India +imited of the pa&t 'ear&4 $he
information wa& &tudied and anal'7ed to compute the rele)ant ratio&
O"JECTIBES OF THE STU!Y
$o4 &tud' the importance of ratio anal'&i&4
$o Pre&ent ratio& to determine operational efficienc' of the da0our India ltd4
$o do the financial anal'&i& of the da0our India ltd4
SCOPE OF THE STU!Y
$he &tud' of ratio anal'&i& i& limited to the &pecific compan'5 da0our India ltd4
$he &tud' period co)ered in thi& ca&e &tud' i& for 3 financial 'ear& i4e45 from #//5"#//65 #//6"
#//!5 #//!"#//,5
LIMITATIONS OF STU!Y
14$hi& report i& 0a&ed on the annual report&5 which are pro)ided 0' the compan' that cannot 0e
relied upon4
#4$he collection of data for anal'&i& i& re&tricted to Da0our india4 +td4 onl' and
34$ime wa& ma%or limiting factor to the &tud'4
!ATA COLLECTION TOOLS 4
S(c,n/ar !ata0
3/
1econdar' data wa& collected mainl' from )ariou& &ource& which include& financial %ournal&5
other pu0li&hed teDt0ook& and )ariou& we0 &ite&4 And comparati)e 0alance &heet& and (atio anal'&i&4
Interpretation& of the re&ult a& 0een done on graphical repre&entation through 0ar graph&4
CHAPTER -7
DATA ANAL-SIS AND
INTERPRETATION
31
ANALYSIS OF RATIOS OF !A"UR IN!IA LT!
4 $he &ignificant accounting policie& followed 0' -odern Collection& P)t4 +td4 are a& follow&L
SIGNIFICANT ACCOUNTING POLICIES
"asis ,+ pr(parin' +inancial stat(-(nts
$he financial &tatement& of Da0ur india +td4 are prepared under the hi&torical co&t con)ention on an
accrual 0a&i&4
FiC(/ ass(ts
2iDed a&&et& are &tated at their original co&t of acBui&ition and &u0&eBuent impro)ement thereto5
including taDe&5 dutie&5 freight and other incidental eDpen&e& related to acBui&ition5 con&truction and
in&tallation of a&&et(& concerned4
!(pr(ciati,n
Depreciation on fiDed a&&et& i& pro)ided at rate& pre&cri0ed on written down )alue 0a&i& in &chedule
TI@ of the companie&E act of 1.56 on a prorata 0a&i& from the date of acBui&ition of the a&&et4
In;(nt,ri(s
In)entorie& are )alued at lower of co&t or net reali7a0le )alue4 Co&t i& determined on fir&t in fir&t out
0a&i& and include& an appropriate portion of production and factor' related o)erhead&
L,n'#t(r- in;(st-(nts
+ong"term in)e&tment& are accounted at co&t5 and no pro)i&ion ha& 0een made for dimunition in the
)alue of the &ame4
3#
F,r(i'n (Cc)an'( transacti,ns
2oreign eDchange tran&action& are dealt with in accordance with the accounting &tandard& on
accounting for effect& of change& in foreign eDchange rate& (A111 i&&ued 0' in&titute of chartered
accountant of India4
GratuiDt
Pro)i&ion of gratuit' i& made on an e&timated 0a&i& a& per the pro)i&ion of the pa'ment of gratuit' act
1.!#4
R(s(arc) an/ /(;(l,p-(nt
(e&earch and de)elopment eDpenditure i& charged to profit and lo&& account in the 'ear of incurrence4
2iDed a&&et& acBuired for the purpo&e of re&earch and de)elopment& are capitali7ed4
S)ar( capital
*ut of the eBuit' &hare& i&&ued5 15/// &hare& of (&41// each were allotted a& full' paid up4
$he current a&&et& and current lia0ilitie& of -odern Collection& P)t4 +td4 are gi)en 0elow4
CURRENT ASSETS
I:@=:$*(I=1
(aw material& and packing material&4
Aork in progre&&4
2ini&hed good&4
2ini&hed good& in tran&it4
Packing material4
1crap4
SUN!RY !E"TORS (un&ecured con&idered good
De0t& out&tanding for a period eDceeding 6 month&
*ther&
33
CASH AN! "ALANCES
Current account with &cheduled 0ank&4
Current account with deut&che 0ank4
-argin depo&it account4
Ca&h in hand4
LOANS AN! A!BANCES (un&ecured con&idered good
Ad)ance& recei)a0le in ca&h or kind4
Depo&it&4
CURRENT LIA"ILITIES AN! PROBISIONS
C6((=:$ +IA3I+I$I=1
1undr' creditor&4
Ad)ance from cu&tomer&4
+ia0ilit' for eDpen&e&4
P(*@I1I*:1
2or taDation (net of Ad)ance income taD4
2or gratuit'4
2or lea)e enca&hment4
THREE YEARS FINANCIAL REPORT OF !A"UR IN!IA LT!
34
"alanc( S)((t
As ,n 31"-ar"/, 31"-ar"/! 31"-ar"/6
Ass(ts (& mn R3$ (& mn R3$ (& mn
<ro&& 3lock 44,3444 3.46, 3,!44,1 5/4#4 31!#465
:et 3lock #6654## #345. ##4441, #.41/ 1!,444#
Capital AIP 16#464 1444 3!4/! /44, 13/46.
In)e&tment& 6!!431 54.. 65!431 ,45# #34#4/,
In)entor' #/1144! 1!4,/ 15!346. #/44/ 11564/.
(ecei)a0le& 1//4464 ,4,. 6/.4!. !4.1 #6.443
*ther Current A&&et& 4!!,44. 4#4#. #5./455 3345. 1,3.4.,
"alanc( S)((t T,tal@"TA $$%55.95 $66.66 99$%.:5 $66.66 9:%%.8&
Lia=iliti(s (& mn R3$ (& mn R3$ (& mn
=Buit' 1hare Capital ,644/# !465 ,6#4,, 1141. 5!343/
(e&er)e& 41634#5 364,4 #,61466 3!41/ 35/343,
$otal De0t 1!343! 1453 #//4,/ #46/ #/54!5
Creditor& and Acceptance& 31#.461 #!4!/ #!1345! 3541, 1.134.5
*ther current lia0Cpro)4 #.6.453 #64#, 1/!346, 134.# 13#643/
"alanc( S)((t T,tal@"TA $$%55.95 $66.66 99$%.:5 $66.66 9:%%.8&
Rati, Analsis
As ,n 31"-ar"/, 31"-ar"/!
*P3I$CProd4cap4empl4(R 156444 114466
P3I$CCap4 =mplo'ed (R !441! !44.,
PA$C:etworth (R 6#4,4 6!464
$aDCP3$ (R 1344! 1#4#5
$otal De0tC:etworth (D /4/3 /4/5
As ,n@ M,nt)s A 31"-ar"11(1# 31"-ar"1/(1# 31"-ar"/.(1#
Profit C +o&& ACC (& mn R*I (& mn R*I (& mn R*I
:et 1ale& #/,#/43, ..41! 15.,!446 ..456 1#31/453 ..4!1
*perating Income (*I #/..54/. 1//4// 16/5!4,1 1//4// 1#3464/. 1//4//
*P3DI$ 3.654.. 1,4,. 3/!644. 1.416 #41!4.. 1.45.
*P3D$ 3,,/454 1,44, 3/3#41, 1,4,, #36144/ 1.413
*P3$ 3566434 164.. #!4!44! 1!411 #1#,43# 1!4#4
:on"*perating Income ,544# /441 .44!6 /45. 154#4 /41#
=Dtraordinar'CPrior Period "/46, "/4// #,4,5 /41, "3#4/# "/4#6
$aD 4.14.3 #434 351465 #41. #1,46/ 14!!
Profit after taD(PA$ 315.416 154/5 #51.44# 1546. 1,.#4.4 15433
Ca&h Profit 34!3436 16454 #,/4414 1!446 #1#64/# 1!4##
Di)idend"=Buit' 1#.64/# 641! 1##14#5 !461 1//34#3 ,413
35
+ong $erm De0tC:etworth (D /4/1 /4/1
P3DI$C2inance Charge& (D 4!44/ !#4#4
Current (atio (D 14#, 14#6
(- In)entor' (da'& con&umption 444// 4343.
2< in)entor' (da'& co&t of &ale& 164.# 1,45,
(ecei)a0le& (da'& gro&& &ale& 1!433 13461
Creditor& (da'& co&t of &ale& 6!4/, !643/
*p4 curr4 a&&et& (da'& *I .64// ,,4//
S)ar( Statistics
As ,n 31"-ar"/, 31"-ar"/!
=P1 ((&4 3466 #4.#
C2P1 ((&4 44/# 34#5
3ook @alue ((&4 54,# 443#
DP1 ((&4 145/ 144#
ANALYSIS OF THE RATIOS OF !A"UR IN!IA LT!
CURRENT RATIO
Current ratio ma' 0e defined a& the relation&hip 0etween current a&&et& and current lia0ilitie&4
$hi& ratio i& al&o known a& working capital ratio4 It i& calculated 0' di)iding the total current a&&et& 0'
total current lia0ilitie&4

Current A&&et&
Current ratio I """""""""""""""""""""""""
Current +ia0ilitie&
Current a&&et& include ca&h in hand5 ca&h at 0ank5 0ill& recei)a0le5 &undr' de0tor&5 in)entor'5
prepaid eDpen&e&5 out&tanding income& temporar' in)e&tment& and ad)ance&4 Current
36
lia0ilitie& include 0ill& pa'a0le5 &undr' creditor&5 0ank o)erdraft5 unclaimed di)idend5
out&tanding eDpen&e&5 pro)i&ion for taDation and propo&ed di)idend etc4
TA"LE E 6$
TA"LE SHO3ING CURRENT RATIO
S,urc(0 1econdar' Data

;ear Current (atio
#//5"#//6 14/1
#//6U#//! 14#6
#//!"#//, 14#,


INFERENCE
$he current ratio increa&e& to / 4#5 in the 'ear #//!"#//, 5 when compared to the 'ear #//5"
#//65 and again it i& increa&ed to / 4# in #//!"#//,54 $hi& &how& that there i& impro)ement in the
&hort"term &ol)enc' of the compan.
GRAPH E 6$
GRAPH SHO3ING CURRENT RATIO

3!
/
/.=
/.>
/.2
/.?
.
..=
..>
=//06=//2 =//26=//@ =//@6=//?
current ratio
current ratio

ACI! TEST RATIO
Acid te&t ratio ma' 0e defined a& the relation&hip 0etween liBuid a&&et& and liBuid lia0ilitie&4 It i& al&o
known a& liBuid ratio or Buick ratio4 +iBuid a&&et& include all current a&&et& eDcept in)entor' and
prepaid eDpen&e&4 +iBuid lia0ilitie& include all current lia0ilitie& eDcept 0ank o)erdraft4
+iBuid A&&et&
Acid te&t ratio I """"""""""""""""""""""""""""
+iBuid lia0ilitie&
TA"LE E 6%
3,
SHO3ING THE LI>UI! RATIO
;ear +iBuid a&&et& +iBuid lia0ilitie& +iBuid ratio
#//5"#//6 1!36!3/, 1///43#5 14!3
#//6"#//! #336#35. #11#,3.# 141/
#//!"#//, 154#,3!! 1133..64 1436
S,urc(0 1econdar' Data
INFERENCE
$he liBuid ratio i& decrea&ed to 141/ in the 'ear #//6"#//! when compared to the pre)iou& 'ear #//5"
#//65 and again it i& increa&ed to 1436 in the 'ear #//!"#//,4 $hi& further confirm& that there are
fluctuation& in the &hort"term liBuidit' of the compan'4
GRAPH E 6%
GRAPH SHO3ING LI>UI! RATIO

3.
li,uid ratio
/
/.=
/.>
/.2
/.?
.
..=
..>
..2
..?
=
=//06=//2 =//26=//@ =//@6=//?
li,uid ratio
A"SOLUTE LI>UI! RATI6
A0&olute liBuid ratio ma' 0e defined a& the relation&hip 0etween A0&olute liBuid a&&et& and liBuid
lia0ilitie&4 A0&olute liBuid a&&et& include ca&h in hand5 ca&h at 0ank and marketa0le &ecuritie&4
$he a0&olute liBuid ratio can 0e calculated 0' di)iding a0&olute liBuid a&&et& 0' liBuid lia0ilitie&4
$hu&5
A0&olute liBuid a&&et&
A0&olute +iBuid (atio I """""""""""""""""""""""""""""""""
+iBuid lia0ilitie&
4/
TA"LE E 67
SHO3ING A"SOLUTE LI>UI! RATIO
;ear +iBuid A&&et& +iBuid +ia0ilitie& A0&olute +iBuid (atio
#//5"#//6 ##!#/5/! 1///43#5 #4#!
#//6"#//! #34.3!,5 #11#,3.# 1411
#//!"#//, 1,65./35 1133..64 1464
INFERENCE
$he a0&olute liBuid ratio i& decrea&ed to 1464 when compared to 1411 in the 'ear #//6"#//!5 0ut again
it &how& a ri&e in the 'ear #//!"#//4,which &tand& at /4!1
GRAPH E 67
GRAPH SHO3ING A"SOLUTE LI>UI! RATIO
41
absolute li,uid ratio
/
/.0
.
..0
=
=.0
=//06=//2 =//26=//@ =//@6=//?
absolute li,uid
ratio
LONG TERM SOLBENCY RATIO
!E"T#E>UITY RATIO
De0t"=Buit' (atio5 al&o known a& =Dternal"Internal =Buit' ratio i& calculated to mea&ure the relati)e
claim& of out&ider& and owner& again&t the firmE& a&&et&4 $he De0t"=Buit' ratio can 0e calculated 0'
di)iding the total De0t& 0' eBuit'4 $hu&5
$otal de0t&
De0t"=Buit' ratio I """"""""""""""""""""""
=Buit'
4#
A total de0t eBual& all long term de0t& plu& current lia0ilitie& and pro)i&ion& and eBuit' include&
&hare capital5 re&er)e& and &urplu& minu& capital lo&&e&
TA"LE E 64
TA"LE SHO3ING !E"T#E>UITY RATIO
;ear $otal de0t =Buit' De0t"=Buit' (atio
#//5"#//6 6#/!#35, #,6#/4#1 #416
#//6"#//! !435!44# #,416#/5 #461
#//!"#//, 55/#414, #,/5!!13 14.6

S,urc(0 1econdar' Data
INFERENCE
De0t eBuit' ratio ha& increa&ed to #461 in #//6"#//! when compared to #//5"#//6and again it i&
decrea&ed to 14.6 in the 'ear #//!"#//, though it wa& decrea&ed to 14.6 in the 'ear #//!"#//, 4
!$hi& &how& that there i& no impro)ement in the long"term &ol)enc' po&ition of the compan'4

GRAPH# 64
43
GRAPH SHO3ING !E"T#E>UITY RATIO
PROPRIETORY RATIO
$he ratio that eDpre&&e& the relation&hip 0etween proprietorE& fund and total a&&et& i& called
Proprietor' ratio4 $hi& ratio can 0e calculated a& under4
=Buit'
Proprietor' (atio I """"""""""""""""""""""
$otal A&&et
44
debt e,uity ratio
/
/.0
.
..0
=
=.0
1
=//06=//2 =//26=//@ =//@6=//?
debt e,uity ratio
TA"LE E 6:
TA"LE SHO3ING PROPRIETORY RATIO

;ear =Buit' $otal A&&et& Proprietor' (atio
#//5"#//6 #,6#/4#1 5#/6,/33 /454
#//6"#//! #,416#/5 53##./5/ /453
#//!"#//, #,/5!!13 436,41,4 /464
S,urc(0 1econdar' Data
INFERENCE
$hi& ratio i& decrea&ed in the 'ear #//6"#//! to /453 when compared to #//5"#//6 and further
increa&ed to /464 in the 'ear #//!"#//, when compared to #//6"#//!4 thi& &how& that there i& an
increa&e in the long"term &ol)enc' of the 0u&ine&&4
GRAPH # 6:
TA"LE SHO3ING PROPRIETORY RATIO
45
proprietory ratio
/
/..
/.=
/.1
/.>
/.0
/.2
/.@
=//06=//2 =//26=//@ =//@6=//?
proprietory ratio
FIFE! ASSETS TO NET3ORTH RATIO
$he ratio5 which e&ta0li&he& the relation&hip 0etween fiDed a&&et& and &hareholderE& fund&5 i& called
fiDed a&&et& to :et worth ratio4 $hi& ratio can 0e calculated a& follow&
2iDed A&&et& (After depreciation
2iDed a&&et& to :et worth (atio I """""""""""""""""""""""""""""""""""""
1hareholderE& fund&
46
TA"LE E 68
TA"LE SHO3ING FIFE! ASSETS TO NET3ORTH RATIO
;ear 2iDed A&&et :et worth 2iDed a&&et& to
:et worth (atio
#//5"#//6 6335,!. #,6#/4#1 /455
#//6"#//! 6/!.3/! #,416#/5 /44.
#//!"#//, 53!,!4, #,/5!!13 /45.
S,urc(0 1econdar' Data
INFERENCE
$he ratio of fiDed a&&et& to net worth ratio i& found to 0e fluctuating in the 'ear #//6"#//!4 3ut it i&
&lightl' increa&ed in the 'ear #//!"#//,4


GRAPH E 68
GRAPH SHO3ING FIFE! ASSETS TO NET3ORTH RATIO


4!
fi-ed asset to net worth
/
/..
/.=
/.1
/.>
/.0
/.2
/.@
=//06=//2 =//26=//@ =//@6=//?
fi-ed asset to net
worth
CAPITAL GEARING RATIO
Capital gearing ratio i& a ratio5 which eDpre&&e& relation&hip 0etween fiDed intere&t and di)idend
0earing &ecuritie& and eBuit' &hare capital4 $hi& ratio i& calculated a& follow&4
2iDed intere&t and di)idend 0earing
1ecuritie&
4,
Capital <earing (atio I """"""""""""""""""""""""""""""""""""""""""""
=Buit' &hare capital
TA"LE E 6&
TA"LE SHO3ING CAPITAL GEARING RATIO
;ear
2iDed intere&t and
di)idend 0earing
&ecuritie&
=Buit' &hare capital Capital gearing
ratio
#//5"#//6 16#!6!3 15///// 14/,
#//6"#//! 15#,.5/ 15///// 14/1
#//!"#//, 154,4./ 15///// 14/3
S,urc(0 1econdar' Data
INFERENCE
Capital gearing ratio i& decrea&ing in the 'ear #//6"#//! and 0ut it ha& increa&ed in #//!"#//,
GRAPH # 6&
GRAPH SHO3ING CAPITAL GEARING RATIO

4.
capital gearing ratio
/
/..
/.=
/.1
/.>
/.0
/.2
/.@
=//06=//2 =//26=//@ =//@6=//?
capital gearing ratio
ACTIBITY RATIOS
INBENTORY TURNOBER RATIO
In)entor' turno)er ratio i& the ratio5 which indicate& the num0er of time& the &tock i&
turned o)er i4e45 &old during the 'ear4 In other word&5 it i& the ratio 0etween the co&t of good& &old and
clo&ing &tock4 $hi& ratio can 0e calculated a& follow&4
1ale&
1tock $urno)er (atio I "" In)entor' """"""""""""""
5/
TA"LE E 65
TA"LE SHO3ING INBENTORY TURNOBER RATIO

S,urc(0 1econdar' Data
INFERENCE
In)entor' turn o)er ratio ha& decrea&ed to #4#/ in the 'ear #//6"#//#!when compared to #//5"#//6
and again increa&ed in the 'ear #//!"#//, to 145! 4
GRAPH E 65
GRAPH SHO3ING INBENTORY TURNOBER RATIO
;ear 1tock turno)er
(atio
#//5"#//6 644,
#//6"#//! 44,,
#//!"#//, 545!
51

!E"TORS TURNOBER RATIO
De0tor& turno)er rate i& in 0etween credit &ale& and de0tor&4 In other word&5 it indicate& the num0er of
time& the de0t& are collected in a 'ear4 $hi& ratio i& calculated a& follow&4
Credit 1ale&
De0tor& $urno)er (atio I """""""""""""""""""""""
De0tor&
TA"LE # $6
5#
STA!8 TB&7A4& &%TIA
/
.
=
1
>
0
2
@
=//06=//2 =//26=//@ =//@6=//?
STA!8 TB&7A4&
&%TIA
TA"LE SHO3ING !E"TORS TURNOBER RATIO
S,urc(0 1econdar' Data
INFERENCE
$he de0tor& turn o)er ratio ha& decrea&ed to 44/. in the 'ear #//6"#//! and again ha& increa&ed to
15415 in the 'ear #//!"#//,
GRAPH E $6
;ear Credit 1ale& De0tor& De0tor&
$urno)er (atio
#//5"#//6 ,##.,!.6 5#3.15/ 154!/
#//6"#//! 4,3.!5#1 11,1,.45 44/.
#//!"#//, 6#64.553 41!443/ 154/
53
GRAPH SHO3ING !E"TORS TURNOBER RATIO
#ebtors Turnover &atio
/
=
>
2
?
./
.=
.>
.2
.?
=//06=//2 =//26=//@ =//@6=//?
#ebtors Turnover
&atio

CRE!ITORS TURNOBER RATIO
54
Creditor& turno)er ratio i& the ratio5 which indicate& the num0er of time& the de0t& are paid in the
'ear4 $hi& ratio i& calculated a& follow&4
Credit purcha&e
Credit $urno)er (atio I """""""""""""""""""""
A)erage creditor&
TA"LE #$%
TA"LE SHO3ING CRE!ITORS TURNOBER RATIO
;ear Credit purcha&e Creditor& Creditor& turn o)er
(atio
#//5"#//6 444.1/45 4!!665, .431
#//6"#//! #55/11,. 1#,#!.1. 14.,
#//!"#//, 3#.,4,4, !45#6#3 444#
S,urc(0 1econdar' Data
INFERENCE
$he creditor& turno)er ratio ha& decrea&ed to 14., in #//6"#//! when compared to #//!"#//, and
again it i& increa&ed to 444# 4
GRAPH E $%
GRAPH SHO3ING CRE!ITORS TURNOBER RATIO
55
!reditors turn over &atio
/
.
=
1
>
0
2
@
?
3
./
=//06=//2 =//26=//@ =//@6=//?
!reditors turn over
&atio

!E"T PAYMENT PERIO! RATIOS
De0t pa'ment ratio i& a ratio5 which &how& the a)erage time taken 0' the firm to repa' the de0t4 $hi&
ratio i& calculated a& follow&4
56
Creditor&
De0t pa'ment period ratio I """""""""""""""""" V 365 Da'&
Credit purcha&e
TA"LE E $7
TA"LE SHO3ING !E"T PAYMENT PERIO! RATIO
;ear Creditor& Credit purcha&e& De0t pa'ment
period (atio
#//5"#//6 4!!665, 444.1/45 3. Da'&
#//6"#//! 1#,#!.1. #55/11,. 1,4 Da'&
#//!"#//, !45#6#3 3#.,4,4, ,# Da'&
S,urc(0 1econdar' Data
INFERENCE
$he de0t pa'ment period increa&ed to 1,4 da'& in #//5"#//6 and al&o in the 'ear #//6"#//! to 1/5
da'& when compared to 3. da'& in the 'ear #//5"#//65


GRAPH E $7
GRAPH SHO3ING !E"T PAYMENT PERIO! RATIO

5!
/
/.=
/.>
/.2
/.?
.
..=
=//@6=//? ?=days
=//26=//@ .?>days
=//06=//2 13days
years debt paymet period ratio
Series.
5,
FIFE! ASSETS TURNOBER RATIO
$he ratio5 which eDpre&&e& the relation&hip 0etween the &ale& and total a&&et&5 i& known a& 2iDed
a&&et& turno)er ratio4
1ale&
2iDed a&&et& turno)er ratio I """"""""""""""""""
2iDed A&&et
TA"LE E $4
TA"LE SHO3ING FIFE! ASSETS TURNOBER RATIO
;ear 1ale& 2iDed A&&et& 2iDed a&&et& turn
o)er (atio
#//5"#//6
1#31/453 9:%%.8&
1463!
#//6"#//!
15.,!446 99$%.:5
#4/!
#//!"#//,
#/,#/43, $$%55.95
14,4
S,urc(0 1econdar' Data
INFERENCE
2iDed a&&et& turno)er ratio ha& inecrea&ed to #4/! in the 'ear #//5"#//6 when compared to #//5"
#//16and then decrea&ed 0ecome more or le&& eBual to #//5"#//! in #//!"#//,44
5.
GRAPH E $4
GRAPH SHO3ING FIFE! ASSETS TURNOBER RATIO

6/
)i-ed assets turn over &atio
/
/.0
.
..0
=
=.0
=//06=//2 =//26=//@ =//@6=//?
)i-ed assets turn
over &atio

CURRENT ASSETS TURNOBER RATIO
$he ratio5 which eDpre&&e& the relation&hip 0etween the current a&&et& to &ale&5 i& called a& Current
a&&et& turno)er ratio4 It i& calculated a& follow&4
1ale&
Current A&&et& $urno)er (atio I """""""""""""""""""
Current A&&et&
TA"LE E $:
TA"LE SHO3ING CURRENT ASSETS TURNOBER RATIO
;ear Current a&&et& turn
o)er (atio
#//5"#//6 1463
#//6"#//! #4/!
#//!"#//, 14,4
S,urc(0 1econdar' Data
INFERENCE
$he current a&&et& turno)er ratio ha& increa&ed to 444 in #//6"#//! 0ut decrea&ed in the 'ear #//!"
#//, to 4#3 when compared to the pre)iou& 'ear #//6"#//!
61
GRAPH E $:
GRAPH SHO3ING CURRENT ASSETS TURNOBER RATIO
current asset turnover ratio
/
/.0
.
..0
=
=.0
=//06=//2 =//26=//@ =//@6=//?
current asset
turnover ratio

6#
3ORKING CAPITAL TURNOBER RATIO
$he ratio5 which eDpre&&e& the relation&hip 0etween the working capital and &ale&5 i& called a&
Aorking capital turno)er ratio4 It i& calculated a& follow&
1ale&
Aorking capital turno)er ratio I """"""""""""""""""""
Aorking capital
TA"LE E $8
TA"LE SHO3ING 3ORKING CAPITAL TURNOBER RATIO
;ear 1ale& Aorking capital Aorking capital turn
o)er ratio
#//5"#//6 ,##.,!.6 #5,13153 341,
#//6"#//! 4,3.!5#1 #46!,.66 14.6
#//!"#//, 6#64.553 #15,,6,3 #4./
S,urc(0 1econdar' Data
INFERENCE
Aorking capital turno)er ratio ha& decrea&ed to 14.6 in #//6"#//! when compared to #//5"#//6 and
again it i& further increa&ed to #4./ when compared to that of the 'ear #//6"#//! 4
63
GRAPH E $8
GRAPH SHO3ING 3ORKING CAPITAL TURNOBER RATIO
64
working capital turnover ratio
/
/.0
.
..0
=
=.0
1
1.0
=//06=//2 =//26=//@ =//@6=//?
working capital
turnover ratio

PROPRIETORY FUN! TURNOBER RATIO
$hi& i& a ratio5 which eDpre&&e& the relation&hip 0etween the proprietor' fund and &ale&5 i& called a&
Proprietor' fund turno)er ratio4 It i& calculated a& follow&4
1ale&
Proprietor' fund turno)er ratio I """""""""""""""""""""
Proprietor' fund
TA"LE E$9
TA"LE SHO3ING PROPRIETORY FUN! TURNOBER RATIO
;ear 1ale& =Buit' Proprietor' fund
turn o)er (atio
#//5"#//6
1#31/453 ,644/#
144#4
#//6"#//!
15.,!446 ,6#4,,
1,45#
#//!"#//,
#/,#/43, 5!343/
36431
S,urc(0 1econdar' Data
INFERENCE
$hi& ratio ha& increa&ed to 1,45# in #//6"#//! and it increa&ed dou0le from #//5"#//6 when
compared to #//!"#//, 4
65
GRAPH E $9
SHO3ING PROPRIETORY FUN! TURNOBER RATIO

+roprietory fund turn over &atio
/
0
./
.0
=/
=0
1/
10
>/
=//06=//2 =//26=//@ =//@6=//?
+roprietory fund turn
over &atio
66
PROFITA"ILITY RATIOS
Profita0ilit' ratio& are calculated to determine the operating efficienc' of the compan'4 Profit i& the
difference 0etween total re)enue& and eDpen&e& o)er a period of time4 It i& the ultimate output of the
compan' without which the compan' ha& no future4 $herefore5 the financial manager &hould
continuou&l' e)aluate efficienc' of the compan' on term& of profit&4 Profita0ilit' ratio& can 0e
determined on the 0a&i& of &ale& or in relation to in)e&tment&4 <enerall'5 two ma%or t'pe& of
profita0ilit' ratio& are calculated4
Profita0ilit' in relation to &ale&4
Profita0ilit' in relation to in)e&tment4
PROFITA"ILITY IN RELATION TO SALES
<enerall'5 the following profita0ilit' ratio& are calculated in relation to &ale&
<(*11 P(*2I$ (A$I*
<ro&& profit ratio5 i& the ratio which eDpre&&e& the relation&hip 0etween gro&& profit and &ale&
eDpre&&ed in percentage4 It i& calculated a& follow&4
<ro&& profit
<ro&& profit ratio I """"""""""""""""""""""" V 1//
1ale&
6!
TA"LE E $&
TA"LE SHO3ING GROSS PROFIT RATIO
;ear <ro&& profit 1ale& <ro&& profit (atio
#//5"#//6 11,.#4.4 1#31/453 .46!
#//6"#//! #51.44# 15.,!446 154!5
#//!"#//, 315.416 #/,#/43, 1541!
S,urc(0 1econdar' Data
INFERENCE
<ro&& profit ratio ha& increa&ed in the 'ear #//6"#//! to 64.#R ha)ing profit& in the 'ear #//6"#//!
and &how& a fall in #//!"#//, to 4/,R4

6,
GRAPH E $&

GRAPH SHO3ING GROSS PROFIT RATIO

6.

NET PROFIT RATIO
It i& the ratio5 which eDpre&&e& the relation&hip 0etween net profit and &ale& eDpre&&ed in percentage4 It
i& calculated a& follow&4
:et profit
:et profit ratio I """"""""""""""""""" V 1//
1ale&
TA"LE E $5
TA"LE SHO3ING NET PROFIT RATIO
;ear :et profit 1ale& :et profit (atio
#//5"#//6
1,.#4.4 1#31/453
/4153R
#//6"#//!
#51.44# 15.,!446
/415!R
#//!"#//,
315.416 #/,#/43,
/4151R
S,urc(0 1econdar' Data
INFERENCE
$he net profit ratio ha& increa&e in the 'ear #//6"#//! 0t decrea&e to /4151 hprofit in the immediate
pre)iou& 'ear& when compared to that of profit& of #//6"#//! to /461R4 $hi& &how& there i& decline
in the profita0ilit' of the compan'4
!/
GRAPH E $5
GRAPH SHO3ING NET PROFIT RATIO
4
!1
net profit ratio
/..>>
/..>2
/..>?
/..0
/..0=
/..0>
/..02
/..0?
/..2
/..2=
=//06=//2 =//26=//@ =//@6=//?
net profit ratio
OPERATING RATIO
$he ratio5 which eDpre&&e& the relation&hip 0etween operating co&t and &ale& eDpre&&e& in percentage5
i& called a& *perating ratio4 $hi& ratio i& calculated a& follow&4
*perating co&t
*perating ratio I """""""""""""""""""""""" V 1//
1ale&
TA"LE E %6
TA"LE SHO3ING OPERATING RATIO
;ear *perating co&t 1ale& *perating (atio
#//5"#//6 #41!1616 ,##.,!.6 #.43!R
#//6"#//! 1564!.46 4,3.!5#1 3#433R
#//!"#//, 111/##1, 6#64.553 1!4!#R
S,urc(0 1econdar' Data
INFERENCE
$he operating ratio in the 'ear #//6"#//! increa&ed to 3#433R when compared to #//5"#//64 3ut it
i& decrea&ed in the 'ear #//!"#//, to 1!4!#R 4 1o thi& i& the rea&on for decline in the net profit of the
compan'4
!#
GRAPH E %6
GRAPH SHO3ING OPERATING RATIO

!3
Aperating &atio
/.//C
0.//C
././/C
.0.//C
=/.//C
=0.//C
1/.//C
10.//C
=//06=//2 =//26=//@ =//@6=//?
Aperating &atio
OPERATING PROFIT RATIO
$he ratio5 which eDpre&&e& the relation&hip 0etween operating profit and &ale& eDpre&&ed in
percentage5 i& called a& *perating profit ratio4 It i& calculated a& follow&4
*perating profit co&t
*perating profit ratio I """""""""""""""""""""""""""" V 1//
1ale&
TA"LE E %$
TA"LE SHO3ING OPERATING PROFIT RATIO
;ear *perating profit 1ale& *perating profit
(atio
#//5"#//6 14//46! ,##.,!.6 14!/R
#//6"#//! 3.45! 4,3.!5#1 /4/,R
#//!"#//, 3463,.! 6#64.553 545#R
S,urc(0 1econdar' Data
INFERENCE
$he operating profit ratio ha& increa&ed to 545#R in the 'ear #//!"#//, when compared to 0oth the
pre)iou& 'ear&5 #//5"#//6and #//!"#//,4
4
!4
GRAPH E %$
GRAPH SHO3ING OPERATING PROFIT RATIO

operating profit ratio
/
.
=
1
>
0
2
=//06=//2 =//26=//@ =//@6=//?
operating profit ratio
!5
PRO"A"ILITY IN RELATION TO INBESTMENT
RETURN ON PROPRIETORGS FUN!
$he ratio 0etween net profit after taD and proprietorE& fund i& called return on proprietorE& fund4 It i&
calculated a& follow&4
:et profit after taD
(eturn on proprietorE& fund I """""""""""""""""""""""" V1//
=Buit'
TA"LE E %%
TA"LE SHO3ING RETURN ON PROPRIETORGS FUN!
;ear =Buit' Profit after taD (eturn on
proprietorE& fund
#//5"#//6
5!343/ 1,.#4.4
343/
#//6"#//!
,6#4,, #51.44#
#4.1
#//!"#//,
,644/# 315.416
3465
S,urc(0 1econdar' Data
INFERENCE
$he ratio of return on proprietorE& fund ha& increa&ed to #/4444R when compared to #//!"#//, a& it
ha& decrea&ed in #//6"#//!4
!6
GRAPH SHO3ING RETURN ON PROPRIETORGS FUN!

!!
return on proprietors fund
/
/.0
.
..0
=
=.0
1
1.0
>
=//06=//2 =//26=//@ =//@6=//?
return on proprietors fund
RETURN ON TOTAL RESOURCES
$he ratio 0etween net profit after taD and total a&&et& i& called a& (eturn on total re&ource&4 It i&
calculated a& follow&4
:et profit after taD
(eturn on total re&ource& I """"""""""""""""""""""""" V 1//
$otal a&&et&
TA"LE E %7
TA"LE SHO3ING RETURN ON TOTAL RESOURCES
;ear :et profit after taD $otal a&&et& (eturn on total
re&ource&
#//5"#//6
1,.#4.4 9:%%.8&
#5416
#//6"#//!
#51.44# 99$%.:5
3#46!
#//!"#//,
315.416 $$%55.95
#!4.5
S,urc(0 1econdar' Data
INFERENCE
$he return on total re&ource& increa&ed to !451R in the 'ear #//6"#//! decerea&d in the 'ear #//!"
#//, and when compared to that of #//6"#//!4
!,
GRAPH E %7
SHO3ING RETURN ON TOTAL RESOURCES

!.
return on total resoures
/
0
./
.0
=/
=0
1/
10
=//06=//2 =//26=//@ =//@6=//?
return on total resoures
RETURN ON CAPITAL EMPLOYE!
$he ratio 0etween net profit 0efore intere&t and taD and capital emplo'ed i& called a& return on capital
emplo'ed4 It calculated a& followed
:et profit 0efore taD
(eturn on capital emplo'ed I """""""""""""""""""""""""""" V 1//
Capital emplo'ed
TA"LE E %4
TA"LE SHO3ING RETURN ON CAPITAL EMPLOYE!
;ear (eturn on capital
emplo'ed
#//5"#//6 5#4##
#//6"#//! !44.,
#//!"#//, !441!
S,urc(0 1econdar' Data
INFERENCE
$he return on capital emplo'ed ratio &how& )er' low return on capital emplo'ed in the 'ear #//5"
#//6 a& compared to #//6"#//!and #//!"#//, 0ecau&e of lo&&e& incurred 0' the compan' in that
'ear4 In the neDt 'ear it reache& to #4.4R which i& more when compared to the one in the 'ear #//!"
#//,4
,/
GRAPH # %4
GRAPH SHO3ING RETURN ON CAPITAL EMPLOYE!

,1
return on capital employed
/
./
=/
1/
>/
0/
2/
@/
?/
=//06=//2 =//26=//@ =//@6=//?
return on capital employed
EARNING PER SHARE @EPSA
$he ratio 0etween net profit after taD and num0er of eBuit' &hare& i& called a& =arning per &hare4
:et profit after taD
=arning per &hare I """"""""""""""""""""""""""""""" V 1//
:um0er of eBuit' &hare&
TA"LE E %:
TA"LE SHO3ING EARNING PER SHARE @EPSA
;ear :um0er of eBuit'
&hare&
Profit after taD =arning& per &hare
#//5"#//6
5!343/ 1,.#4.4
343/
#//6"#//!
,6#4,, #51.44#
#4.#
#//!"#//,
,644/# 315.416
3466
S,urc(0 1econdar' Data
INFERENCE
$he earning& per &hare ha)e decrea&ed to #4.#in the 'ear #//6"#//! 0ut then increa&e& to 3466 in
#//!"#//,4
,#
GRAPH E %:
S
GRAPH SHO3ING EARNING PER SHARE @EPSA
,3
/
/.0
.
..0
=
=.0
1
1.0
>
D%&S =//06=//2 =//26=//@ =//@6=//?
CHAPTER 4 8
FINDINGS
,4
FIN!INGS
$he anal'&i& and interpretation of the data gathered5 ha& re)ealed the following fact&H
$he current ratio of the compan' ha& 0een increa&ing from 'ear to 'ear 0ut not a& much a& it
&hould 0e &o the compan' i& not a0le to meet the &tandard of #H1 it repre&ent& that the
compan'E& &hort"term liBuidit' po&ition i& not &o much &ati&factor'4
$he de0t eBuit' ratio i& increa&ed to #461 in #//6"#//! when compared to #//5"#//65 and
gain in the 'ear #//!"#//, it i& increa&ed to #431 4 $hi& &how& that there i& an impro)ement in
the long"term &ol)enc' po&ition of the compan'4
Current a&&et& to net worth ratio &how a ri&ing trend in all the 'ear&4
$he working capital turn o)er ratio ha& decrea&ed to 14.6 in the 'ear5 0ut from there on it ha&
kept on increa&ing in the future4
<ro&& profit ratio ha& increa&ed in the 'ear #//6"#//! and &how& a fall in #//!"#//,
$he net profit ratio ha& increa&ed in the 'ear #//6"#//! to /4/#R ha)ing no profit in the
immediate pre)iou& 'ear& when compared to that of profit& of #//!"#//, to /461R4 $hi&
&how& there i& decline in the profita0ilit' of the compan'4
,5
$he operating ratio in the 'ear #//6"#//! increa&ed to 3#433R when compared to #//5"#//64
3ut it i& increa&ed in the 'ear #//!"#//4,to #343,R 1o thi& i& the rea&on for decline in the net
profit of the compan'
$he ratio of return on proprietorE& fund ha& increa&ed to #/4444R when compared to #//6"
#//! ha)ing no return on proprietorE& fund 0ecau&e of no profit& in the 'ear #//6 and #//!
when compared to #//5"#//6 ha)ing 44!4R4 $hi& i& 0ecau&e of decline in the profita0ilit' due
to more operating co&t4
$he return on capital emplo'ed ratio &how& return are increa&ing on capital emplo'ed in the
'ear #//6"#//! a& compared to the #//6"#//! 0utin the #//!"#//, it fll down from #//6"
#//!4
$he earning& per &hare ha)e decrea&ed to 134/1R in the 'ear #//6"#//! 0ut then it increa&e&
to #/4#3R in #//!"#//,


,6
CHAPTER 4 9
CONCLUSION
AND
SUGGESTIONS
,!
CONCLUSION
Accounting ratio indicate the trend of 0u&ine&&4$he trend i& u&eful for e&timating future with
the help of pre)iou& 'earE& ratio e&timate& for future can 0e made4in thi& wa' the ratio pro)ide
the 0a&i& for preparing 0udget& and al&o determining future line of action4
$he De0t to =Buit' ratio and the capital <earing ratio of the compan' i& almo&t
negligi0le implie& that mo&t of the lia0ilitie& of the compan' are &hort term
and compan' i& in fairl' good po&ition to meet it&long term lia0ilitie&4 $hi& mean& that the
creditor& of the compan' face )er' lowri&k of lo&ing their mone'4
S $he total De0t&C $otal A&&et& i& al&o negligi0le which &ugge&t& that the compan'ha& a lot of
A&&et& to pa' off the de0t
$he long"term &ol)enc' po&ition of the compan' ha& &hown a recurrent increa&e4 $he'
indicate the compan'E& a0ilit' to meet it& long term lia0ilit'4
$he operating -argin and net profit margin are con&tantl' ri&ing
o)er the period of 3 'ear&5 which mean& that the compan' i& 0ecoming more and
more efficient in term& of it& operation&
$he compan' ha& )er' efficientl' and effecti)el' utili7edit& re&ource& in order to generate
increa&ing return& continuou&l'4
,,
SUGGESTIONS
Da0ur India ltd &hould make proper financial planning &o that the a)aila0le fund& are utili7ed
in more efficient and effecti)e manner4
$he compan' mu&t tr' to maintain it& &hort"term liBuidit' po&ition5 0' in)e&ting onl' in tho&e
in)e&tment&5 which are ea&il' con)erta0le into ca&h4
Da0ur India ltd mu&t cut down the operating and other eDpen&e& with out reducing the Bualit'
of it& product&4
,.
CHAPTER 4 :
%I%LIOGRAPH-
./
"I"LIOGRAPHY
Books
Arnold5 <4 (#//#4 Corporate 2inancial -anagement4 >arlowH Pear&on =ducation
+imited4
3enninga5 145 >elmantel5 -45 1arig5 *4 (#//34 5 Kournalof 2inancial =conomic&5 !5(15 115"
13#
4
3reale'5 (4 Q -'er&5 14 (#//34 Principle& of Corporate 2inance4 :ew ;orkH -c<raw"
>ill4
2inancial management (#//3 3'4 14?4(4 Paul
2inancial -anagement $heor' Q (#//# 3'4 Pra&anna Chandra
Practice $ata -c <raw >ill
Pu0li&hing Compan' +imite
JOURNALS 2 MAGAHINES
Annual report& of Da0ur india4 +td44
3u&ine&& 1tandard5
3E" SITE
httpHCCwww4da0ur4comC
httpHCCwww4da0ur India limited4comC
.1