Arvind Mills

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Arvind Mills

  1. 2. BAALNCE SHEET as on 31 st march,2008 <ul><li>2008 2007 </li></ul><ul><li>Sources of funds </li></ul><ul><ul><li>Shareholder’s fund </li></ul></ul><ul><ul><li>Share capital 273.30 255.58 </li></ul></ul><ul><ul><li>Reserves & Surplus 1197.05 1131.45 </li></ul></ul><ul><ul><li>1470.35 1387.03 </li></ul></ul><ul><ul><li>Loan funds </li></ul></ul><ul><ul><li>Secured loan 1774.94 1772.72 </li></ul></ul><ul><ul><li>Unsecured loan 97.52 161.57 </li></ul></ul><ul><ul><li>1872.46 1934.29 </li></ul></ul><ul><ul><li>Deferred tax lib. 12.82 12.82 </li></ul></ul><ul><ul><li>Total 3355.63 3334.16 </li></ul></ul>
  2. 4. <ul><li>2008 2007 </li></ul><ul><li>Less: Current Lib.& Provision </li></ul><ul><li> Current Liabilities 360.54 408.99 </li></ul><ul><li> Provisions 21.81 12.15 </li></ul><ul><li> 382.35 421.41 </li></ul><ul><li>Net Current assets 1088.79 1169.77 </li></ul><ul><li>Miscellaneous Exp. 9.50 0.00 </li></ul><ul><li>Total 3355.63 3334.16 </li></ul>
  3. 5. RATIO ANALYSIS
  4. 6. LIQUIDITY RATIOS
  5. 7. <ul><li>QUICK RATIO = QUICK ASSETS </li></ul><ul><li> CURRENT LIABILITIES </li></ul><ul><li>2008 = 2.34:1 </li></ul><ul><li>2007 = 2.24:1 </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>The company can pay its current liability as the ratio is 2.34:1 </li></ul><ul><li>which is more then the ideal ratio 1:1. the increasing trend indicate that the company is performing better. </li></ul>
  6. 8. TURNOVER RATIOS <ul><li>CAPITAL TUROVER RATIO = NET SALES </li></ul><ul><li> CAPITAL EMPLOYED </li></ul><ul><li>2008 = 0.70 </li></ul><ul><li>2007 = 0.56 </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>As net sales are good as compare to capital employed . </li></ul><ul><li>The co. has utilized his capital well and getting a good retune from this . As compare to last year the ratio has increased, this shows that co. is become more efficient and utilized his fund properly. </li></ul>
  7. 9. <ul><li>FIXED ASSETS TURNOVER RATIO </li></ul><ul><li> = NET SALES </li></ul><ul><li>NET FIXED ASSETS </li></ul><ul><li>2008 = 1.1 </li></ul><ul><li>2007 = 0.90 </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>As the ratio increases from the last year ratio it shows that there is better utilisation of fixed assets. </li></ul>
  8. 10. PROFITABILITY RATIOS <ul><li>GROSS PROFIT RATIO = GROSS PROFIT X 100 </li></ul><ul><li>NET SALES </li></ul><ul><li>2008 = 61.55% </li></ul><ul><li>2007 = 73% </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>This ratio measures the margin of profit available on sales. As gross profit margin is good but it has decreased from last year which shows that the profitability has decreased. This shows that the sale of company had decrease or the cost had increase but the price of the product remained same. </li></ul>
  9. 11. <ul><li>NET PROFIT RATIO = NET PROFIT X 100 </li></ul><ul><li> NET SALES </li></ul><ul><li>2008 = 19.14% </li></ul><ul><li>2007 = 23% </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>As we compare to last year ratio, this year the net profit ratio has decreased this shows that the profitability has decrease which is not good for company. There should increase year by year or it should mention the same percentage as last year. </li></ul>
  10. 12. <ul><li>RETURN ON INVESTMENT RATIO </li></ul><ul><li>= EBIT X 100 </li></ul><ul><li> CAPITAL EMPLOYED </li></ul><ul><li>2008 = 5.15% </li></ul><ul><li>2007 = 5.53% </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>If the ROI increases then its good for company as more investor are willing to invest in the company but here the trend is decreasing which is not good for the company. </li></ul>
  11. 13. <ul><li>RETURN ON EQUITY </li></ul><ul><li>= EAT X 100 </li></ul><ul><li>EQUITY SHAREHOLDER FUNDS </li></ul><ul><li>2008 = 12.49% </li></ul><ul><li>2007 = 12.06% </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>This ratio indicate how efficiently shareholder assets are managed in the company. Here the ratio increases which attract the shareholder to invest more in the company. </li></ul>
  12. 14. LEVERAGE RATIOS <ul><li>DEBT EQUITY RATIO = DEBT </li></ul><ul><li>EQUITY FUNDS </li></ul><ul><li>2008 = 1.23 </li></ul><ul><li>2007 = 1.33 </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>If the ratio is more than 2:1 then it is danger signal for long term lenders. As here it is less then 2:1 it shows it provide sufficient protection to long term lenders. </li></ul>
  13. 15. <ul><li>DEBT - TOTAL FUND RATIO </li></ul><ul><li>= DEBT </li></ul><ul><li> DEBT + EQUTY </li></ul><ul><li>2008 = 0.55:1 </li></ul><ul><li>2007 = 0.57:1 </li></ul><ul><li>INTERPRETATION: </li></ul><ul><li>Generally, Debt to total fund ratio of 0.67 :1 is considered satisfactory. A higher ratio than this is generally treated as risky. Here it shows that the firm is more depended on equity fund not on outside loans. The lower the ratio the better it is from the long term solvency point of view. </li></ul>
  14. 16. COMMON SIZE INCOME STATEMENT <ul><li> 2008 2007 </li></ul><ul><li> Amt % to sales Amt % to sales </li></ul><ul><li>Sales 2271.27 100.00 1847.99 100.00 </li></ul><ul><li>Raw mat. consumed 557.13 24.50 571.93 30.90 </li></ul><ul><li>Employees emoluments 233.40 10.27 204.33 11.05 </li></ul><ul><li>Other 877.19 38.62 780.24 42.21 </li></ul><ul><li>Interest 131.40 05.70 150.26 08.13 </li></ul><ul><li>Depreciation 136.64 06.00 143.36 07.75 </li></ul><ul><li>PBT 29.61 01.30 27.71 01.50 </li></ul><ul><li>PBEO 27.36 01.20 25.27 01.36 </li></ul><ul><li>Bal. as per last year’s B/S 425.00 18.71 321.17 17.37 </li></ul><ul><li>Bal. carried to B/S 434.92 19.14 425.00 23.00 </li></ul>
  15. 17. TREND ANALYSIS <ul><li>2007 2008 </li></ul><ul><li>Sales 100 122 </li></ul><ul><li>Raw mat. consumed 100 101 </li></ul><ul><li>Employees emoluments 100 114 </li></ul><ul><li>Other 100 112 </li></ul><ul><li>Interest 100 87 </li></ul><ul><li>Depreciation 100 95 </li></ul><ul><li>PBT 100 106 </li></ul><ul><li>PBEO 100 108 </li></ul><ul><li>Bal. as per last year’s B/S 100 132 </li></ul><ul><li>Bal. carried to B/S 100 102 </li></ul>
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  17. 19. THANK YOU

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