Sl No Category Particulars

1 Liquidity ratio Current Ratio

2 Liquidity ratio Quick Ratio

3 Profitability Ratios Operating Profit ratio

4 Profitability Ratios Net Profit Ratio

5 Profitability Ratios Return on Equity Ratio

6 Profitability Ratios Return on Total Assets

7 Asset Turnover Ratio Inventory turnover Ratio

8 Asset Turnover Ratio Receivables Turnover Ratio

9 Asset Turnover Ratio Day outstanding

10
Asset Turnover Ratio Fixed Assets Turnover Ratio

11

Asset Turnover Ratio Asset Turnover Ratio

12 Solvency Ratios Debt Equity Ratio

13
Solvency Ratios Interest Coverage Ratio

Conclusion: On an overall basis company has received enough funds to increase its asset base and go into capacity exp
rapid pace to provide better return returns on the assets employed and sha
 Formula 2017 2016 2015

Current Assets/Current Liabilities 1.71 1.95 2.06

(Current Asset – Inventory)/Current Liabilities 0.49 0.30 0.38

(PBEIT+Finance Cost) / Total Income 9.13% 8.33%

(PAT-Except Item) / Total Income 5% 6%

(PAT-Except Item) / Share holders fund 15% 20%

 (PAT-Except Item) / Total Assets 8% 11%

Revenue from operation (Net) / Inventory 2.65 2.53

Revenue from operation (Net) / Receivables 110.1 82.4

365 / Receivables Turnover ratio 3.31 4.43

Revenue from operation (Net)/ Total PPE 1849% 1723%

Total Income / Total Asset 1.53 1.77

Long Term Borrowings / Shareholders Fund

 Operating profit ** / Finance cost 17.92 16.50

eceived enough funds to increase its asset base and go into capacity expansion, however the company has to increase its sales and profit at a
id pace to provide better return returns on the assets employed and share holder funds invested
 Comment
Higher current asset ratio indicates that log term
liabilities (Share holder funds) have been used to
fund short term assets. However we see a decreasing
trend in this as company has increased long term
external investments.

Quick ration is dependent on the cash position of the

company. Change in inventory is in line with change
in current liability. Liquidity is due to increased
influx of cash which may not be a repetitive
phenomenon. Quick ratio indicates that company is
in a better position to meet funds requirment

Companies operating profitability has increased

- Total Income has increased
- Employee expenses and other expenses have
increased during the year
- Finance cost has reduced marginally
Comapany has not changed itself drastically.

Company has earned lesser net profit compared to

last year this is due to higher effective tax rate Refer
Annex 1 Sl no 1
There might be much more impact of tax in the
future.

There is a decrease in return on equity because of the

below reasons. Also refer Annex 1 Sl no 2
- PAT has reduced by 5% compared to previous year
- Share holders fund has increased by 22%
This is a cause for concern as it may indicate a
negative trend of return on share holders fund.
Company has a bloated equity base but PAT is not
catching up at the same rate
There is a decrease in return on Asset because of the
below reasons. Also refer Annex 1 Sl no 2
- PAT has reduced by 5% compared to previous year
- Investments have increased by 537%, impact is
high in absolute terms
- Cash and cash equivalents has increased by 592%
Impact is high in absolute terms.
Sudden Increase in the asset base, company needs to
find a way to put this cash to use and earn more.

Ratio has marginally increased as revenue has

increased on a much higher parentage compared to
inventory. This may be due to various reasons some
of them have been listed below.
- Increase in selling price
- Better collections from debtors (quicker credit
cycle)
- Better inventory management
- Better production planning etc.

This ratio has increased - it’s a healthy sign below

are the reasons
- Revenue has increased by 14%
- Trade Receivable has decreased by 14%
Company is converting receivable into cash much
quicker this has a positive impact on working capital
As a percentage only .91% of sales is outstanding
compared to 1.21% for 2016 (Refer Annex 1)

Company is converting receivable into cash much

quicker (day outstanding ratio) this has a positive
impact on working capital

Increase in this ratio indicates that company is able

to increase sales with lesser proportionate increase in
PPE, indicates marginal increase in efficiency in
operations

This ratio has reduced due to sudden increase in

current assets. Company has invested these assets in
subsidiary and other companies, effect of
demonitisation. Company needs to find out a way to
put these assets to use in business

Company has no long-term borrowings

 Comparative finance cost of the company has
reduced, this may indicate that company is less
dependent on external source of finance.

on, however the company has to increase its sales and profit at a
der funds invested
Sl Particular 2017 2016 Movement %

1 PBT 103,342 88,840

Tax 27,156 19,083
ETR 26% 21%

2 PPE 68,716 64,439 4,277 7%

PAT (Adj exeptional item) 66,549 69,757 (3,208) -5%
Finance Cost 3,713 4,228 (515) -12%
Equity funds 431,201 353,469 77,732 22%
Total Income 1,278,166 1,117,854 160,312 14%
Total Assets 835,240 630,835 204,405 32%
Inventory 480,649 438,176 42,473 10%
Investments 51,160 8,037 43,123 537%
Cash and Cash equivalents 77,274 11,166 66,108 592%
Revenue from Operations 1,270,689 1,110,538 160,151 14%
Trade Receivables 11,536 13,485 (1,949) -14%
% outstanding 0.91% 1.21%