BALANCE SHEETS(fig. in crore) of Arvind Mills Ltd.

year 1999-2000 1998-99 1997-98 1996-97 1995-96 1994-95

SOURCES OF FUNDS
share capital 170 170 800 800 9985 9949
reserves and surplus 829 992 73.9 99536 92639.4

LOAN FUNDS
secured 1183 1154 966.6 872 47294 47948.4
unsecured 802 781.88 17.6 381 24186 14047.06

APPLICATION
fixed assets
gross block 2445 1080 1641 1568 63315 49164.03
less deprec 514 370 204.5 133.7 18585 15152.7

net block
capital in prog. 77.6 1550.69 1436 1434 15224 11931.2

investments 241.1 92.62 0.16 0.16 23058 27821.05

inventory 200.4 218.92 561.8 565 21269 22178.9

sundry debtors 198.29 317.6 172.2 71 18340 14848.6
cash 27.47 26.01 100.26 56.6 7935 1743
other CA 25.38 20 17.6 9 1715 805
loans 580 589 387 171 59574 67884

Less
liabilities 386 409 733.16 612 11021 13798
provisions 18.39 17 85.06 0.17 4659 4141

Net CA 140.63 745 421 260 93153 89521

PROFIT AND LOSS ACCOUNTS of Arvind Mills Ltd.

year 1999-20001998-99 1997-98 1996-97 1995-96 1994-95

Income

sales and 1215.97 941.13 4048.1 2795.06 70905.61 56905.22

other inco 35.23 46.01 104.87 37.84 6296.62 7619.69

Expense
raw materi 518.76 505.3 903.59 903.59 34112 27777
purchases 42.3 26.03 494.34 494.3 918 1053
emolument 83.03 46.61 1843.36 1843.36 4190 4705.5
others 452.73 316.33 20686 19203.4
interest 264.33 31.08 164.8 218.1 164.2 945.7
depreciati 165.15 82.17 70.87 67 4815.17 4223.15

dec/inc. in 40.57 -35.08 -17.51 11.01 -662.68 3977.76

profit befo -315.67 693.52 0.98 11654.93 10593.78

extra.items 44.24 -215.2

profit before tax 14.47 693.52 0.98 11385.9 10593.78

provision for tax 67.29 0.17

profit -271.43 14.47 626.23 0.81 11385.9 10593.78

RATIO ANALYSIS

a)PROFITABILITY RATIOS
1-PROFIT MARGIN
YEAR PROFIT MARGIN PROFIT AFTER TAX SALES
1995 18.615392401611 10593.13 56905.22
1996 16.0578690459048 11385.93 70905.61
1997 0.02897969989911 0.81 2795.06
1998 15.469726538376 626.23 4048.1
1999 1.53751341472485 14.47 941.13
2000 22.3220967622556 271.43 1215.97

2-RETURN ON EQUITY
YEAR ROE PROFIT AFTER TAX AVG. SHAREHOLDER'S EQUITY
1995 10593.13
1996 10.7342534717312 11385.93 1060.71
1997 0.00085478203058 0.81 947.61
1998 0.74821974765819 626.23 836.96
1999 0.01341821334681 14.47 1078.385
2000 0.4301925667644 271.43 630.95

3-EARNINGS PER SHARE

YEAR EPS PROFIT AFTER TAX AVG. NO. OF EQUITY SHARES
1995 0.0212157532916 10593.13 49930492
1996 0.02193749290486 11385.93 51901692
1997 1.5667262016E-06 0.81 51700163
 1998 0.001225952312 626.23 51081106
1999 2.8327499408E-05 14.47 51081106
2000 271.43 51081106

b)LIQUIDITY RATIOS

1-CURRENT RATIO
YEAR CR CURRENT ASSETS CURRENT LIABILITIES
1995 16.3931417531997 678.84 41.41
1996 12.7868641339343 595.74 46.59
1997 1005.94117647059 171.01 0.17
1998 4.55760639548554 387.67 85.06
1999 33.7451317296678 589.19 17.46
2000 31.542142468733 580.06 18.39

2-QUICK RATIO
YEAR QUICK RATIO QUICK ASSETS CURRENT LIABILITIES
1995 11.0374305723255 457.06 41.41
1996 8.22172139944194 383.05 46.59
1997 -2320 -394.4 0.17
1998 -2.0472607571126 -174.14 85.06
1999 21.2067583046964 370.27 17.46
2000 20.6460032626427 379.68 18.39
3-DEBTOR TURNOVER RATIO
YEAR DTR SALES AVG. DEBTORS
1995 383.251751077586 56905.22 148.48
1996 386.617284623773 70905.61 183.4
1997 39.3670422535211 2795.06 71
1998 23.5354651162791 4048.1 172
1999 2.96297578944054 941.13 317.63
2000 6.13228100257199 1215.97 198.29

c)SOLVENCY RATIOS
1-D/E
YEAR D/E=DEBT/EQUITY DEBT EQUITY
1995 0.60409741586786 61995.6 102625.17
1996 0.65266658753493 71481.35 109522
1997 1.5675375 1254.03 800
1998 1.12745704467354 984.27 873
1999 1.66609294320138 1936 1162
2000 1.98798798798799 1986 999

2-INTEREST COVER
YEAR INT.COVER PBIT INT.EXPENSE
1995 0.11122645706659 105 944.02
1996 0.71052310693818 116.54 164.02
1997 0.00449541284404 0.98 218
1998 4.20825242718447 693.52 164.8
 1999 1.19422691332804 315.67 264.33
2000 0.35155490767736 14.47 41.16

d)EFFICIENCY RATIOS

1-ASSET TURNOVER
YEAR ASSET TURNOVER SALES AVG.TOTAL ASSETS
1995 56905.22
1996 38.0117564437964 70905.61 1865.36
1997 1.32265139774515 2795.06 2113.225
1998 1.62436650067613 4048.1 2492.11
1999 0.30347627423888 941.13 3101.165
2000 0.37034374900064 1215.97 3283.355

2-INVENTORY TURNOVER RATIO

YEAR ITR COGS AVG.INVENTORIES

1995 1.44796380090498 320 221
1996 1.83617924528302 389.27 212
1997 1.28470796460177 725.86 565
1998 1.73700534759358 974.46 561
1999 2.9385 587.7 200
2000 32.5238095238095 683 21
 PROFIT MARGIN
25

20

15 PROFIT MARGIN

10

0
1 2 3 4 5 6 7 8

ROE
12

10

8
ROE
6

0
1 2 3 4 5 6 7

EPS
0.025

0.02

0.015 EPS

0.01
 0.025

0.02

0.015 EPS

0.01

0.005

0
1 2 3 4 5 6 7 8

CR
1200

1000

800
CR
600

400

200

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14

QUICK RATIO
500

0
1 2 3 4 5 6 7 8
-500
QUICK RATIO
-1000

-1500

-2000

-2500
-1500

-2000

-2500

DTR
450
400
350
300
DTR
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200
150
100
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0
1 2 3 4 5 6 7 8 9

Chart Title
2.5

1.5 Column B

0.5

0
1 2 3 4 5 6 7 8

INT.COVER
4.5
4
3.5
3
2.5 INT.COVER

2
1.5
4.5
4
3.5
3
2.5 INT.COVER

2
1.5
1
0.5
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1 2 3 4 5 6 7 8

ASSET TURNOVER
40
35
30
25
ASSET TURNOVER
20
15
10
5
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ITR
35
30
25
20 ITR

15
10
5
0
1 2 3 4 5 6 7 8
ANALYSIS
a)PROFITABILITY RATIOS

1-PROFIT MARGIN
The profit margin is very low for the year 2004 and 2006 , this means that even though the company
was profitable in other periods,it has lost its control over the costs compared to its competitors in
2004 and 2006.

2-ROE

The ROE is high during the years 2005 and 2007 as compared to other years.This means that the
company is more likely to be capable of generating cash internally during these years.

3-EPS

EPS is low in 2004 , becomes high in 2005 and again reduces in 2006 , this means that the
company's profit allocated to each outstanding share fluctuates.

b)LIQUIDITY RATIOS

1-CURRENT RATIO

Current ratio is very high in 2004 and somewhat higher in 2006 as compared to other years.
This means that the company is able to pay its short term liabilities from short term assets.

2-QUICK RATIOS

In year 2004 , QR is highly negative , it means the company is in dangerous zone whereas
in other years it is able to pay off its short term obloigations from current assets.

3-DEBTOR TURNOVER RATIO

The ratio is very high in 2004 , which means the debtors are easily utilized to generate sales, whereas it
is very low in 2006 which is not good for the business.
c)SOLVENCY RATIOS

1-D/E

The D/E ratio is continuously increasing except the year 1998 during which it reduces.A high D/E ratio
in 1997 means that the comapny has been aggressive in financing its growth with debt.

2-INTEREST COVER

It is sufficiently large in years 1996,98,99, and 2000. But , in 1997 it is very low which tells us that
the safety margin that the business has in terms of being able to meet its interest obligations.

d)EFFICIENCY RATIOS

1-ASSET TURNOVER RATIO

During the year 2005, the asset turnover is maximum which means that the firm is efficient in using its assets to
generate revenue as compared to other years.This means that a cut throat and a competitive pricing is done by
the company in this year.

2-INVENTORY TURNOVER RATIO

This ratio is increasing except during the year 2004 which is a bad sign as products tend to deteriorate as
they sit in a warehouse.
whereas it
gh D/E ratio

tells us that
igations.

t in using its assets to

ve pricing is done by

ucts tend to deteriorate as