projet pgpm ratio

8/4/2019 Projet PGPM Ratio

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Chapter: - 3 RATIO ANALYSIS

(1)Simple Ratio :- One number by another e.g.

Current assets to current liabilities ratio

is 2:1

(2)Rate Numeric :- The ratio between two

Facts Usually over a period of time e.g.

stock Turnover is 3 times in year.

(III) Percentage :- Special types of rate which expresses

The Relation in hundred e.g. Gross

profits is 25% on sale.


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Calculation of Ratios

SPREDSHEET

Particular 2009 2008 2007

Financial Expenses 1333.55 854.50 443.01

PBIT 42499.59 36517.59 28422.30

PAT 37355.26 31695.79 25207.63

Pref. Dividend 0.00 0.00 0.00

Equity Share Capital 8650.76 8640.23 8628.84

No. of Equity Shares 864907642 863826759 860884512Total Dividend Paid To Eq. Shareholders 1296824000 664747000 1768431000

DPS 1.50 0.77 2.05

EPS 4.32 3.67 2.93

Interest 1333.55 854.50 443.01

Average Stock 23143.17 17925.82 14515.60

Cost of Goods Sold

Sales 242367.89 211778.86 163736.12

-Gross Profit -116354.10 -102898.24 -80293.21

126013.79 108880.62 83442.91

Current Assets

Stock 26171.64 20114.69 15736.94

Sundry Debtors 11236.01 10046.43 6097.87

Cash & Bank Balance 14368.48 6826.46 5024.75

Loan & Advances 22728.33 18293.75 12781.66

74504.46 55281.33 39641.22

Current Liabilities

Liabilities 35138.71 31722.51 27770.31

Provisions 31510.20 26540.97 7838.16

66648.91 58263.48 35608.47

Liquid Assets

Current Assets 74504.46 55281.33 39641.22

Less: Stock -26171.64 -20114.69 -15736.94

48332.82 35166.64 23904.28


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3.2 Profit & Loss A/c

(All amounts in Indian Rupees in Lacs, except share data)

31-Mar-09 31-Mar-08 31-Mar-07

Income:

Sales Less Returns 242367.89 211778.86 163736.12

Less: Excise Duty 2751.5 3439.26 3696.22

Net Sales 239616.39 208339.6 160042.9

Other Income 4306.04 2790.86 1651.17

Total Income 243922.43 211130.46 161694.07

Expenditure:

Cost of Materials 122243.11 102833.54 76798.44

Manufacturing Expenses 7076.13 6985.57 5393.94Payments to & Provisions for

Employees 16732.46 14969.23 11865.88

Selling & Administrative Expenses 50901.37 45827.98 35923.33

Financial Expenses 1333.55 854.5 443.01Miscellaneous Expenditure Written

Off 394.18 566.79 649.36

Depriciation 2742.04 2575.26 2197.81

Total Expenditure 201422.84 174612.87 133271.77Balance being Operating Net Profit

before Taxation 42499.59 36517.59 28422.3Provision for Taxation:

Current 4748.45 4057.25 3152.16

Deferred -255.09 75.32 -265.64

650.97 707.81 328.15


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Fringe Benefit

Net Profit After Taxation & beforeExtraordinary Items 37355.26 31677.21 25207.63Credit Balance Transferred from

Merged Entity 0 18.58 0Net Profit After Taxation &

Extraordinary Items 37355.26 31695.79 25207.63

Balance Brought Forxard 32322.99 22915.63 17500.64Provision for Taxation of earlier years

written back 0.11 68.55 22.82

Provision for Taxation for earlier year 71.68 154.19 36.22

69606.68 54525.8 42694.87

Appropriations

Interim Dividend 6488.07 6480.05 12212.54

Proposed Final Dividend 8650.76 6480.17 0

Corporate Tax on Interim Dividend 1102.65 1101.28 1712.81

Corporate Tax on Proposed Dividend 1470.2 1101.31 0

Transferred to Capital Reserve 0.95 49 334.82

Transferred to General Reserve 9000 7000 3000Balance Carried over to BalanceSheet 42894.05 32322.99 25434.71

69606.68 54525.8 42694.87Earning Per share (in Rs.) (Face

Value Rs 1/-each)

Basic 4.32 3.66 2.93

Diluted 4.31 3.64 2.9

No of SharesBasic 864907642 863826759 800884512

Diluted 869156259 868807461 869534762

Notes to Accounts


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3.3 RATIO ANALYSIS

Liquidity Ratios

Current Ratio:-

Meaning:- This ratio compares the current assets of the

company to its liability the measuring the ability of the firms

to meet it current obligations. This ratio indicates the position

of liability. They are computed to a certain whether the

company is capable of meeting its short-term obligations from its

short-term recourses.

Formula:-

Current Ratio:-Current Assets / Current Liabilities

Current Assets 2009 2008 2007

Current

Liabilities 2009 2008 2007Stock Liabilities

Sundry Debtors Provisions

Cash & Bank

Balance

Loan & Advances

Calculation:-

Current Ratio of year 2007:- 39641.22/35608.47 = 1.11:1



Interpretation:-


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Liquid Ratio:-

Meaning :- The variant of current ratio is Liquid ratio which

shows the amount of cash available to meet immediate

payments. This ratio indicates the position of liquidity. They

are computed to a certain whether the company is capable of

meeting its short-term obligations from its short-term

recourses.

Formula:-Liquid Ratio:- Liquid Assets / Liquid Liabilities

LiquidAssets 2009 2008 2007

LiquidLiabilities 2009 2008 200

CurrentAssets

CurrentLiabilities

Less: StockLess: BankOverdraft

Calculation:-

Interpretation:

Profitability Ratio

Gross Profit Ratio:-


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Meaning: It is a ratio expressing relationship between

gross profit earned to net sales it is an useful indication of

the profitability of business.

Formula:-

Gross profit Ratio:- Gross Profit / Net Sales * 100


Gross Profit

Net Sales

Calculation:-

Interpretation:

Net Profit Ratio:-

Meaning :- This ratio is valuable for the purpose of ascertaining

the overall profitability of the business and shows the efficiency ofthe business. It is the reserve of the operating ratio.

Formula:-

Net Profit Ratio:- Net Profit / Net Sales * 100


Net Profit

Net Sales

Calculation:-

Interpretation:


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Operating Ratio:-It is the ratio showing the relationship between COGS plus

operating activities with net sales, it shows the efficiency of the

company.

Formula:-

Operating Ratio:-

Cost of Goods Sold + Operating Expenses / Net Sales * 100


Cost of Goods Sold

Operating Expenses

Net Sales

Calculation:-

Interpretation:

Selling Expense Ratio:-

Formula:-

Selling Expense Ratio:- Adm. Expenses / Net Sales * 100


Selling Expenses 38123.85 28639.18 34361.18

Net Sales 239616.39 208339.60 160042.90

Calculation:-

Interpretation:

Administrative Expense Ratio:-


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Formula:-

Administrative Expense Ratio:- Adm. Expenses / Net Sales * 100


Administrative Expenses 11391.54 8775.25 10487.85

Net Sales 239616.39 208339.60 160042.90

Calculation:-

Interpretation:

Financial Expense Ratio:-

Formula:-

Financial Expense Ratio:- Financial Expenses / Net Sales * 100


Financial Expenses

Net Sales

Calculation:-

Interpretation:

Return on Capital Employed (ROCE):-

Capital Employed:- Share capital + Reserve & surplus + Longterm loansFictitious assets

Formula:-

ROCE:- PBIT / Capital Employed * 100


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PBIT 36517.59 28422.30

Capital Employed 86852.84 53170.76 40344.99

Interpretation:

Return on Shareholders Equity (ROSE):-

Formula:-

ROSE:- PAT / Shareholders funds * 100


PAT

Shareholders' Funds

Calculation:-

Interpretation:

Return on equity share capital (ROESC):-

Formula:-

(ROESC):- PATPref. Dividend / Equity Share Capital * 100


PAT

Pref. Dividend

Equity Share Capital

Calculation:-

Interpretation:


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Return on Total Assets (ROTA):-

Formula:-

ROTA:- PAT / Total Assets * 100


PAT 37355.26 31695.79 25207.63

Total Assets 156550.25 114162.21 78217.45

Calculation:-

Interpretation:

Earning Per Share (EPS):-

Formula:-

Earning Per Share:- PATPref. Dividend / No. of Equity Shares


PAT

Pref. Dividend

No. of Equity Shares

Calculation:-

Interpretation:

Dividend Per Share (DPS):-

Formula:-

Dividend per Share:-

Total Dividend Paid to Eq. Shareholders / No. of Equity Shares



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Total Dividend Paid ToEq. Shareholders

No. of Equity Shares

Calculation:-

Interpretation:

Dividend Pay-out Ratio:-

Formula:-Dividend Pay-out Ratio:- DPS / EPS * 100


DPS

EPS

Calculation:-

Interpretation:

Leverage Ratios

Debt-Equity Ratio:-Formula:-

Debt-Equity Ratio:- Long term Liabilities / Shareholders Funds * 100



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Long Term Liabilities

Shareholders' Funds

Calculation:-

Interpretation:

Proprietary Ratio:-

Formula:-

Proprietary Ratio:- Proprietors Funds / Total Assets * 100


Proprietors' Funds

Total Assets

Calculation:-

Interpretation:

Fixed Capital-Fixed Assets Ratio:-

Fixed Capital = Share Capital + Reserves + Long term

Liabilities

Formula:-

Fixed Capital-Fixed Assets Ratio:-

Long term Funds (Fixed Capital) / Fixed Assets


Fixed Capital

Fixed Assets

Calculation:-

Interpretation:


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Interest Coverage Ratio:-

Formula:-Interest Coverage Ratio:- PBIT / Interest


PBIT

Interest

Calculation:-

Interpretation:

Activity Ratios

Stock Turnover:-

Average Stock:- Opening Stock + Closing Stock / 2

Formula:-

Stock Turnover:- Cost of Goods Sold / Average Stock


Cost of Goods Sold

Average Stock

Calculation:-

Interpretation:


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Fixed Assets turnover:-

Formula:-

Fixed Assets turnover:- Sales / Fixed Assets


Sales

Fixed Assets

Calculation:-

Interpretation:

Current Assets Turnover:-

Formula:-

Current Assets Turnover: - Sales / Current Assets


Sales

current Assets

Calculation:-

Interpretation:

Total Assets Turnover:-

Formula:-

Total Assets Turnover:- Sales / Total Assets


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Sales

Total Assets

Calculation:-

Interpretation:

projet pgpm ratio

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