Profit & loss account

1. Net sales growth by 9.44%

2. Increase in expenses like Administrative, Selling and Other Expenses by 13.23% this is
very high to camper to sales growth so it is not good for the company.
3. Depreciation & Amortization even increase by 28.28% that shows that company noncash
charges increase not well for the company.
4. Interest Expenses is decline by 76.95% this is good for the company.
5. Decline in income tax by 15.99% due to low profit margin. This is not good for company.
6. Decline in PAT by 16.64% is not good for company.



















CONCLUSIONS:-
The company has been doing their activity effectively and efficiently. The company has a sound
long term solvency. The company can rise from the financial crush it is in right now by taking
proper steps to increase its sales of production and to minimize cost by maximize utilization of
resources. A already known there is a thin line between profitability and liquidity and the
company lost two years made a profit has very low and another two making better profit. This
shows the company in a good position and the management of the company has much as better
so that does way maintain the market leadership.

RECOMMENDATIONS:-
1. The company should maintain an adequate cash and bank balance in order to meet the
emergency requirements.
2. The current ratio of the company has decreasing year to year. The company must utilize
their current asset accurately.
3. The sales of the company go on increasing better to increase sales for more profit in future.
4. Net profit of the company has decreased when compare to last year. Better to decrease the
unnecessary expenses of the company to increase the profit.
5. The Net working capital of the company has negative. Shows excess of current liabilities
over current assets. It must positive for future years.
6. Loans of the company increasing in year 2010 compare to previous year, it shows that the
profit was distributed to the interest, better it should not the same for next year.
7. Better to maintain the same amount of fixed assets in future for full utilize fixed assets.
8. Allowing debt for long period by company shows it is not strict in its debt collection. Better
it should collect its debt as early.
9. Better to maintain high return on share holders investments.
10. Better to curtail the debenture interest to avoid paying interest.
11. For the smooth operation of the company if must make sure that it is made liquid in the
coming year, because right now a lot rests on the operation of the business.