This document contains financial ratio calculations for Airtel and Idea for the period ending March 31, 2013. It calculates the cost of goods sold, administrative expenses, selling and distribution expenses, operating expenses, operating and financial expenses ratios for both companies. The key findings are that Airtel performed better based on having lower ratios across all metrics calculated, with its cost of goods sold ratio being 0.0041, operating ratio of 0.0043 and financial expenses ratio of 3.6433, compared to Idea which had higher ratios of 76.8047 for cost of goods sold, 76.8047 for operating ratio, and 3.69 for financial expenses ratio.

1. 31 march 2013-AIRTEL
Cost of goods sold=cost of goods sold/net sales*100
19 / 453509 * 100 = 0.0041
Administration expenses=administration expenses/net sales*100
936/453509 * 100 = 0.2063
Selling and distribution expenses=selling and distribution expenses/net sales*100
3190 / 453509 * 100 = 0.7034
Operating Expenses Ratio: Administrative Expenses + Selling Expenses/Net Sales * 100
936 + 3190 / 453509 * 100 = 0.9097
Operating Ratio: Cost Of Goods Sold + Operating Expenses/Net Sales *100
19 + 0.9097 / 453509 * 100 = 0.0043
Financial expenses ratio=financial expenses / net sales*100
16523 / 453509 * 100 = 3.6433
31 march 2013-IDEA
Cost of goods sold=cost of goods sold/net sales*100
16930.42/22043.44*100=76.8047
Admin and selling expenses is 0.00 for 2013
Operating Expenses Ratio: Administrative Expenses + Selling Expenses/Net Sales * 100
0 + 0 / 22043.44 * 100 = 0
Operating Ratio: Cost Of Goods Sold + Operating Expenses/Net Sales *100
16930.42 + 0 / 22043.44 * 100 = 76.8047
Financial expenses ratio=financial expenses/net sales*100
813.46 / 22043.44 * 100 = 3.69

2. I INTERPRETATION:
The expenses ratio are closely related to the profit margin, gross as well as net. The cost of goods sold
ratio shows what percentage of sales is consumed by cost of goods sold and, conversely, what
proportion is available for meeting expenses such as selling and general distribution expenses as well
as financial expenses consisting of taxes, interest and dividends so on. Cost of goods sold ratio of
AIRTEL is 0.0041 and that of IDEA is 76.8047. Here, Airtel is better than Idea because their expenses
are lesser as compared to that of Idea. Administration expenses of Airtel is 0.2063 and selling and
distribution expenses is 0.7034 where as for Idea it is 0.00 and no notes has been given about same in
their balance sheet. Operating expense ratio of Airtel is 0.9097 and for Idea again no information is
available. Operating ratio of Airtel is 0.0043 and Idea is 76.8047.Here again Airtel is better than Idea
as their ratio is lower.Financial expense ratio of Airtel is 3.6433 and Idea is 3.69 since the ratio of
Airtel is lower than of Idea that is better.