RATIO ANALYSIS ON

A & A ORGOCHEM PRIV

SUBMITTED TO-
KARAMJEET SINGH
SIS ON

M PRIVATE LTD.

SUBMITTED BY-
JASMEET
ROLL NO- 33
SECTION - A
 A & A ORGOCHEM PRIVATE LIMITED

BALANCE SHEET AS ON 31ST MARCH, 2008

AS ON
SOURCES OF FUNDS SCH.
31-03-2008

AUTHORIZED CAPITAL 1 100,000.00

LOAN FUNDS
SECURED LOANS 2 516,921.49 -
UNSECURED LOANS 3 2,780,356.00 3,297,277.49

PROFIT & LOSS A/C.

OPENING BALANCE 383,742.51
ADDITION DURING THE YEAR 720,814.42 1,104,556.93

T O T A L-------------------------------------------------> 4,501,834.42

APPLICATION OF FUNDS
FIXED ASSETS
GROSS BLOCK 4 1,154,314.00
Less :DEPRECIATION 214,016.00
NET BLOCK 940,298.00

INVESTMENTS 661,161.00

CURRENT ASSETS, LOANS & ADVANCES

CLOSING STOCK 21,630.00
SUNDRY DEBTORS 5 14,378,109.00
CASH AND BANK BALANCE 6 22,153.42
LOANS & ADVANCES 7 510,892.00
OTHER CURRENT ASSETS -
14,932,784.42

Less : CURRENT LIABILITIES & PROVISIONS 8 12,042,441.00

NET CURRENT ASSETS 2,890,343.42

DEFERRED TAX ASSETS

DEFERRED TAX ASSETS - 10,032.00

MISC.EXPENDITURE

T O T A L-------------------------------------------------> 4,501,834.42
Auditor's Report: As per our separate report of even date attached suhbject to Notes on Accounts Attached.
-
FOR HARSHAD THAKKAR & CO. FOR A & A ORGOCHEM PVT. LTD.
CHARTERED ACCOUNTANTS
1

( HARSHAD J. THAKKAR ) 2
PROPRIETOR

PLACE : AHMEDABAD PLACE : AHMEDABAD

DATE :25-09-2008 DATE : 25-09-2008
 AS ON
31-03-2007

100,000.00

533,055.20
1,711,955.00

-
383,742.51

2,728,752.71

802,393.00
105,942.00
696,451.00

538,326.00 0
6,930,659.57
305,246.14
84,159.00
7,238.00
7,865,628.71

5,840,453.00
2,025,175.71

(4,160.00)

11,286.00

2,728,752.71
s Attached.
-
HEM PVT. LTD.
 A & A ORGOCHEM PRIVATE LIMITED

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31-03-2008

AS ON
PARTICULARS SCH. AS ON 31-03-2008
31-03-2007
INCOME
SALES 40,091,952.00 31,930,482.00

CLOSING STOCK 21,630.00 538,326.00

OTHER INCOME 855,779.00 31,905.00

DEFERRED TAX ASSETS 12,636.00 (4,160.00)

T O T A L-------------------------------------------------> 40,981,997.00 32,496,553.00

PARTICULARS
EXPENSES :
OPENING STOCK 538,326.00 -

PURCHASE 34,382,946.00 28,759,842.00

DIRECT EXPENSES 403,020.00 742,298.00

OFFICE & ADMINISTRATIVE EXPENSES

A.M.C. TAX 21080
AUDIT FEES 12500
BANK CHARGES 19276.94
BED DEBTS 6406
BONUS EXP. 151500
CELLULAR PHONE EXP. 46847
COMMISION EXP. 826300
CONVYANCE EXP. 42563
DIRECTOR SALARY 440000
ELECTRIC BURNING EXP. 21834
GODOWN RENT 172000
INCOME TAX INEREST (06-07) 711
INSURANCE EXP. 7238
Internet Exp 2700
KASAR VATAV 25558.85
LEAVE SALARY EXP. 85630
LEGAL & PROFESSIONAL FEE 25200
MOTOR CAR EXP. 64585
OFFICE EXP. 42379
OFFICE MAINTANCE EXP. 12948
OFFICE RENT EXP. 174000
OFFICE REPARING EXP 24513
Office Salary Exp 1036315
PETROL EXP. (SCOOTER) 118160
POSTAGE & ANGADIA EXP. 23482
PRELIMINARY EXP.W/OFF. 1254
PRINTING & STATIONERY EXP. 31514
PROFESSIONAL TAX 2000
STAFF WELFARE EXP. 41788
TELEPHONE EXP. 16526
TEMPO RENT EXP. 388332
TRANSPORT EXP. 75435
TRAVELLING EXP. 155341
VAT AUDIT FEES 10000
OFFICE & ADMINISTRATIVE EXPENSES 39,450,208.79
NET PROFIT/(LOSS) BEFORE DEPRECIATION INTREST & TAX 1,531,788.21
DEPOSIT INTEREST 205434 953,785.00
INTEREST ON FBT 212
INTEREST ON VAT 452
Intetest on Vehical Loan 30709.09
Interest Exp. 46895
L/C DISCONT INTEREST 73640.7
DEPRECIATION EXP. 214016
INTEREST & DEPRECIATION EXPENSES 571,358.79
NET PROFIT/(LOSS) BEFORE TAX 960,429.42
F.B.T. EXP. 26555
INCOME TAX -F.Y.2007-08 213060
NET PROFIT/(LOSS) AFTER TAX 720,814.42
Auditor's Report: As per our separate report of even date attached suhbject to Notes on Accounts Attached.

FOR HARSHAD THAKKAR & CO. FOR A & A ORGOCHEM PVT. LTD.
CHARTERED ACCOUNTANTS
1

2
( HARSHAD J. THAKKAR )
PROPRIETOR

PLACE : AHMEDABAD PLACE : AHMEDABAD

DATE :25/09/2008 DATE : 25/09/2008
RATIO ANALYSIS 2008

CURRENT RATIO current asset/current liabilities 14932784.42/1204241

QUICK RATIO current asset-inventories/current liabilities 14911154.42/12042411

INVENTORY TURNOVER sales/inventories 40091952/279978

FIXED ASSETS TURNOVER sales/net fixed assets 40091952/940298

TOTAL ASSETS TURNOVER sales/totalassets 40091952/

DEBT RATIO total liabilities/total assets 16544275/16534243

BASIC EARNING POWER earnings before interest and tax/total assets 1531788/16534243

DEBTORS TURN OVER sales/average debtor 40091952/10654384

DEBT EQUITY RATIO debt/equity 3927277/1204556

INTEREST COVER RATIO PBIT/interset expense 1531788/531358

2007

CURRENT RATIO current asset/current liabilitaies 7865628.71/5840453

QUICK RATIO current asset-inventories/current liabilities 7327302.71/5840453

INVENTORY TURNOVER sales/inventories 31930482/269163

FIXED ASSETS TURNOVER sales/net fixed assets 31930482/696451

TOTAL ASSEST TURNOVER sales/total asset 31930482/8562079.71

DEBT RATIO total liabilities/total asset 8569205.71/8562079.

DEBTORS TURNOVER sales/average debtors 31930482/6930659.57

DEBT EQUITY RATIO debt/equity 2245010.2/483742.51

14932784.42/12042411 = 1.24 times

14911154.42/12042411 = 1.23 times

40091952/279978 = 143.19 times

40091952/940298 = 42.63 times

16534243 = 2.42 times

16544275/16534243 = 1.06 %

1531788/16534243 = 0.09 %

40091952/10654384 = 3.76 times

3927277/1204556 = 3.26 times

1531788/531358 = 2.68 times

7865628.71/5840453 = 1.34 times

7327302.71/5840453 = 1.25 times

31930482/269163 = 118.62 times

31930482/696451 = 45.84 times

31930482/8562079.71 = 3.72 times

8569205.71/8562079. 1 = 1 %

31930482/6930659.57 = 4.6 times

2245010.2/483742.51 = 4.64 times

 COMMENTS

SINCE THE CURRENT RATIO OF A&A ORGOCHEM PRIVATE LIMITED IS DECREASING FROM 1.34 TO 1.24 IN 2008 ,IT

THE RATIO IS DECLINING. THE IDEAL CURRENT RATIO IS 2:1.THE COMPANY NEEDS TO MANAGE ITS DAY TO DAY A

ALSO THE QUICK RATIO OF THE COMPANY IS DECREASING FROM 1.25 TO 1.23 WHICH IS A GOOD INDICATOR

1:1 IS CONSIDERED TO BE THE IDEAL QUICK RATIOTHE INVENTORY TURNOVER RATIO INDICATES WH

IN INVENTORY REPRESENT IDLE CASH.THE LESSER THE INVENTORY,THE GREATER THE CASH AVAILABLE FOR ME

EFFICIENT INVENTORY MANAGEMENT .THE HIGHER INVENTORY TURNOVER IN 20008 POINTS TO BETTER INVENTO

THE FIXED ASSET TURNOVER RATIO MEASURES HOW EFFICIENTLY THE FIRM USES ITS PLANT AND EQUIPMENT.T

INVESTED IN FIXED ASSET.

THE TOTAL DEBT RATIO MEASURED THE % OF FUNDS PROVIDED BY SOURCES OTHER THAN EQUITY.CREDITOR P

THE CUSHION AGAINST CREDITOR LOSSES IN THE EVENT OF LIQUIDATION.THE COMPANY RATIO IS IMPROVING S

THE FINAL ASSET MANAGEMENT RATIO ,THE TOTAL ASSET TURNOVER RATIO MEASURES THE TURNOVER OF ALL

IS NOT GENERATING SUFFICIENT VOLUME OF BUSINESS GIVEN ITS TOTAL ASSET INVESTMENT.SALES SHOULD BE

STEPS SHOULD BE TAKEN.I AM SURE THE COMPANY WILL BE ABLE TO IMPROVE ITS FINANCIAL POSITION IN THE C
 1.34 TO 1.24 IN 2008 ,IT IS NOT A GOOD INDICATOR OF THE COMPANY'S FINANCIAL POSITION BECAUSE

AGE ITS DAY TO DAY AFFAIR SO AS TO REACH AN IDEAL POINT.

IS A GOOD INDICATOR OF THE COMPANY'S SHORT TERM SOLVENCY POOSITION.

AT NUMBER OF TIMES A COMPANY’S INVENTORY IS TURNED INTO SALES.INVESTMENT

ASH AVAILABLE FOR MEETING OPERATING NEEDS.HIGH INVENTORY TURNOVER IS A SIGN OF

TS TO BETTER INVENTORY MANAGEMENT.

ANT AND EQUIPMENT.THE COMPANY'S RATIO OF 42.63 INDICATES THAT RIGHT AMOUNT HAS BEEN

AN EQUITY.CREDITOR PREFER LOW DEBT RATIO BECAUSE THE LOWER THE RATIO THE GREATER

RATIO IS IMPROVING SINCE IT IS DECRESING FROM 4.64 TO 3.26.

THE TURNOVER OF ALL THE FIRMS ASSET.THE COMPANY'S RATIO INDICATES THAT THE COMPANY

ENT.SALES SHOULD BE INCREASED ,SOME ASSETS SHOULD BE SOLD .OR A COMBINATION OF THESE

CIAL POSITION IN THE COMING YEARS.