Ratios formulas

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Financial statements

Balance sheet

Particulars	Rs	2009	2008
Assets
Non-Current Assets
Property, plant ,equipment		299,770	292,922
Investment in associate		7,724	7,740
Investment available for sale		824	2,175
Long term deposits, prepayment		2,661	2,603
Total Non current assets		310,979	305,440
Current Assets
Stores and spares		18,796	1,091
Stock in trade		755,711	689,438
Trade debts		86,291	74,892
Advance, deposits, prepayments ,other receivable		37,113	38,897
Income tax recoverable		74,651	114,255
Cash and bank balances		70,844	84,042
Total Current Assets		1,043,406	1,002,615
Total Assets		1,354,385	1,308,055
Equity and Liabilities
Share capital and reserves
Share capital		60,000	60,000
Reserves		583,449	499,800
Unappropriated profits		134,371	176,900
Total Share and reserves		777,820	736,700
Total Equity
Non- Current Liabilities
Liabilities against assets subject to finance lease		543	4,429
Deferred taxation		45,419	47,429
Total non-current liabilities		45,962	51,858
Current Liabilities
Trade and other payables		392,371	338,208
Mark up accrued on short term borrowings		393	16
Short term borrowings- secured		30,228	---
Current portion of liabilities against assets  subject to finance lease		3,869	23,388
Provision for taxation		103,742	157,885
Total current liabilities		530,603	519,497
Total liabilities		576,565	571,355
Total Equity and Liabilities		1,354,385	1,308,055

Profit and Loss Account

For the year ended 30 June 2009

Particulars	Rs	2009	2008
Net Sales		2,728,709	2,468,572
Cost of sales		1,974,446	1,691,443
Gross  profit		754,463	777,129
Distribution cost		443,862	368,240
Administrative expenses		91,449	78,951
Other operating expenses		71,979	72,555
Other operating income		(20,115)	(19,880)
Total expenses		587,135	499,866
Operating profit		167,128	277,263
Finance costs		6,542	8,104
Share of loss-associate		16	760
Profit before taxation		160,570	268,399
Taxation		58,099	107,195
Net profit for the year		102,471	161,204
Earnings per share- basic and diluted rupee		17.08	26.87

Liquidity ratio

1. Current ratio

Ratios	Formulas	Results
Current ratio	Current Asset/Current liabilities
2008
2009

Comments.

2.  Quick  Ratio

Ratios	Formulas	Results
Quick ratio	Quick assets/Current liabilities
2008
2009

Comments.

Gross profit ratio

Ratios	Formulas	Results
Gross profit ratio	Gross profit/sales*100
2008
2009

Comments.

Net profit ratio

Ratios	Formulas	Results
Net profit  ratio	Net profit  before tax/sales*100
2008
2009

Comments.

Inventory turnover ratio

Ratios	Formulas	Results
Inventory turnover ratio	Cost of good sold/ average inventory
2008
2009

Comments.

Average payment period

Ratios	Formulas	Results
Average payment period
2008
2009

Comments.

Fixed asset turnover

Ratios	Formulas	Results
Fixed asset turnover	Sales/fixed assets
2008
2009

Comments.

Total   Asset turnover

Ratios	Formulas	Results
Total Asset turnover	sales/Total assets
2008
2009

Comments.

Debt ratio

Ratios	Formulas	Results
Debt ratio	Total debt/Equity
2008
2009

Comments.

Average collection period

Ratios	Formulas	Results
Average collection period	Average receivable/ sales*100
2008
2009

Comments.

Earning per shares

Ratios	Formulas	Results
Earning per shares	PAT-perforance dividend/No.of ordinery share
2008
2009

Comments.

Return on capital empolyed

Ratios	Formulas	Results
Return on capital employed	Profit before interest tax/Capital employed
2008
2009

Comments.

Gearing ratio

Ratios	Formulas	Results
Gearing ratio	Debt/debt+equity
2008
2009

Comments.

Time interest earned

Ratios	Formulas	Results
Time interest earned	PBIT/interest
2008
2009

Comments.

Return on  total assets

Ratios	Formulas	Results
Return on  Total Assets	Net Income / Total Assets
2008
2009

Comments.

Return on Equity (ROE)

Ratios	Formulas	Results
Return on Equity (ROE)	Net Income / capital
2008
2009

Comments.

Net Working Capital Ratio

Ratios	Formulas	Results
Net Working Capital	Current Assets - Current Liabilities
2008
2009

Comments.

Debt to Assets Ratio

Ratios	Formulas	Results
Debt to Assets Ratio	Total Liabilities / Total Assets
2008
2009

Comments

Return on investment

Ratios	Formulas	Results
Return on investment	Net profit after tax/ total sales*100
2008
2009

Comments

Debt  to asset ratio

Ratios	Formulas	Results
Debt  to asset ratio	Total debts/ Total assets
2008
2009

Comments

Ratios	Formulas	Results
2008
2009