LIQUIDITY RATIO :

CURRENT RATIO

YEAR 2007
2008 2009

CURRENT ASSET
3,74,84,949 10,55,71,900 13,69,81,394

CURRENT LIABILITY
4,02,37,510 11,06,45,470 14,46,19,730

CURRENT RATIO
0.9315 O,954 0.947

ANALYSIS From the above data it is clear that 2008 year the company has more current asset when compare to 2007& 2009. Year. Higher the current ratio indicates firms ability to meet its current obligation without any difficulty. Here debtors constitute 51% of sales, therefore companys funds locked up in debtors. More over the current liabilities have been increasing from previous year, but company lacks sufficient amount of funds to invest in current asset.

CURRENT RATIO
1.2 1 0.8 0.6 0.4 0.2 0 0 YEAR 2007 2008 2009 CURRENT RATIO 0.9315 0.954 0.947

INFERENCES: as a rule, the current ratio with 2:1 (or) more is considere satisfactory position of the firm. From the above graph we can determined the company is not at the satisfactory position, that is it is less than the actual standard, but company started its operation in 2006 during beginning days companys expences are more than the current asset. So company should concentrate on reducing the liabilities and to increase their satisfactory position.

QUICK RATIO

YEAR 2007 2008 2009

QUICK ASSET 2,27,48,273 73216011

70116359

CURRENT LIABILITY
4,02,37,510 11,06,45,470

QUICK RATIO 0.562 0.661 0.484

14,46,19730

ANALYSIS
The above table clearly showing hchts quick ratio are moving towards fluctuating trend . During the year 2007 the ratios are 0.562 and it increases to 0.661 in 2008 but again it was decrease to 0.484. With this we can easily say that current position of company is not

satisfactory because the investment in current asset has been decreased from previous year.

QUICK RATIO
1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 YEAR QUICK RATIO 0 2007 0.562 2008 0.661 2009 0.484 TOATL 1.707

Interpretation: here standard quick ratio is 1:1 and looking at the actual it is very low in the 3 year. Since the quick ratio is less than the standard , here we can assume that the company is not investing in the quick asset , rather it is concentrating on the other current asset.

Axis Title

LEVERAGE RATIO

DEBT EQUITY EATIO YEAR 2007 2008 2009 DEBT 2,94,68,693 6,40,86,233 5,52,13,536 EQUITY 1,80,79000 6,05,55,500 14,83,47,590 RATIO 1.63 1.05 0.372

ANALYSIS

This ratio is determined to assertain the sound ness of the company , in general lower the debt equity ratio , the higher the degree of protection enjoyed by the creditors, From the above table we determined that , in the year 2009 which is showing lower debt equity ratio i,e 0.372 compare to previous two years. And company has increased their equity than the previous year. Now the company is enjoying degree of protection

Debt equity ratio ratio

3.5 3 2.5 Axis Title 2 1.5 1 0.5 0 Debt equity ratio ratio 2007 1.63 2008 1.05 2009 0.372 TOTAL 3.05

INTERPRETATION: From the analysis table we interpret that during the year 2008-09the debt equity ratio is very low compare to previous year. Company is having more equity & so company is enjoying high degree of protection.

DEBT ASSET RATIO

Yea 2007 2008 2009

debt 29,468,693 6,40,86,233 5,52,13,536

asset 7,56,90,120 200,194,556 29,90,62,491

Ratio 0.389 0.32 0.184

Analysis From the table showing that, during the year 2009 the debt asset ratio is very low I.e. o.184 when compare to past years , it clearly indicates that the companys asset have been increasing continuously compare to previous years.

DEBT ASSET RATIO

Axis Title

Ratio year

1 0.389 2007

2 0.32 2008

3 0.184 2009

INFERENCES: According to standard debt asset ratio should be 1:2 or lower . but from the above analysis we interpret that it has lower than ratio 1. So companys asset are increasing due to the heavy investment in debtors and fixed asset compare to previous year. So assets are more than the debt .we these interpretation we can say that company s having sufficient financial resource.

Interest coverage ratio year 2007 2008 2009 EBIT -8155371 INTEREST RATIO CHARGES 1,10,7,740 -7.36 -4.02 -1.16

-18683887 46,43,227 -8009738 68,48,082

ANALYSIS : A HIGH interest coverage ratio means that the firms ability to meet its interest burden even if earnings before interest and taxes suffer a considerable decline. Since the company was come into existence in 2006, during beginning year of 2007 the company earnings showing negative trend it is lesser than the interest charges because huge amount of expenditures incurred in the beginning of the years , since company slowly recovering their losses. Now the current interest coverage ratio is -1.16 which is lower than the previous years. since company still running under losses. Now the company is not under satisfactory level .

-12.44 -7.36 -4.02 -1.16 2007 2008 RATIO 2009 TOTAL

Turn over ratio Inventory turnover ratio year 2007 2008 2009 Cost of Average goods sold inventory 2,19,84,292 74,33,259 8,20,34,738 Ratio 2.95

2,44,90,550 3.34

14,41,82,840 4,96,05,462 2.90

Analysis : the inventory turnover ratio measures the how fast the inventory is moving through the firm, and generating sales. The above table shows that during the year 2008 the inventory turnover ratio was higher I,e 2.90 compare to 2009 and 2007 . but the current 2009 inventory ratio is declining compare to the year 2008. Which Leeds to company is not maintaining their inventory efficient

Inventory turn over ratio

10 9 8 7 6 5 4 3 2 1 0

Series2 Series1

INTERPRETION:
The above graph showing that in the year 2008-09 inventory turnover ratio is lower than compare to previous years. so company is not maintaining their inventory properly.

Debtors turn over ratio years 2007 2008 2009 Net sales 1,90,41,980 7,10,30,735 12,80.55,582 Average debtors 1,24,82,644 2,39,90,550 3,39,22,753 Ratio 3.05 times 2.96 times 3.775times

Analysis This ratio shows how many times sundry debtors turn over during the year. From the above given information during the year 2009 showing highest ratio I,e 3.775 times sundry debtors turn over compare to past two year . so we can say that higher the debtors turnover , the greater the efficiency of the management.

DEBTOR TURNOVER RATIO

Series1 Series2

3.05 0 deptor turn over ratio year 2007

2.96

3.775

2008

2009

INTERPRETION:
The above graph showing that in the year 2008-09 inventory turnover ratio is lower than compare to previous years. so company is not maintaining their inventory properly.

Average collection period

year

2007 2008 2009

No of days in a year 365 365 365

Debtor turnover ratio 3.05 2.96 3.775

Collection periods 119 123 96

ANALYSIS THE average collection period represents the number of days worth of credit sales that is locked in sundry Debtors . from the above table we determined that , in the year 2009 the average collection period is very less i.e 96 days compare to previous year. It shows the collections of dues is very fast compare to past two years. Lesser the collection period higher will be the efficiency of the company .

AVERSGE COLLECTION PERIOD

338

119 0 AVERAGE COLLECTION PERIOD YEAR 2007

123

96 2009 TOTAL

2008

Interpretation The above graph indicates that in the year 2009 the collection period was very low I,e 96 days compare to previous years. the standard collection period is 30 days to 60 days . so companys collection period was more than the standard period . so companys financial efficiency is not satisfactory.

Fixed asset turnover ratio

year 2006-07 2007-08 2008-09 Net sales 19,041,980 7,09,13,388 12,80,55,582 Total fixed asset 382,05,275 945,22,656 16,20,91,097 Ratio O.498 0.75 0.80

ANALYSIS: This ratio measures the efficiency and profit earning capacity of the firm. The above table showing fluctuating trend. During the year 2008-09 the fixed aset ratio increased to 0.80 which was higher than the previous years . but according to the standard the minimum fixed asset ratio should be more than 1. But companys ratio is less than the standard ratio.

Fixes asset turnover ratio

Axis Title

1 fixed asset turnover ratio ratio fixed asset turnover ratio year 0.498 2007

2 0.75 2008

3 0.8 2009

INTERPRETATION: From the above analysis we interpret that the companys fixed asset turnover ratio is less than the standard , so companys is not utilizing fixed asset properly.

Working capital turn over ratio year 2007 2008 2009 Net sales 1,90,41,980 7,09,13,388 12,80,55,582 Net working Ratio capital -2,76,2561 -6.89 -5,419,348 -90,92,217 -13.08 -14.08

Analysis : this ratio shows the number of times working captal is turned over in a stated period. The above table is showing negative trend I,e -6.89,-13.08,-14.08 with this we determined that company is not investing funds in the working capital.

35 30 25 20 15 10 5 0 0 year 2007 2008 Series1 2009 Series2 total -6.89 -13.08 -14.08 -34.05

Interpretation: According to standard, higher the ratio, greater will be the profit. But from the above analysis we interpret that the company is lacking in the investment in current asset. So company current working capital position is unfavorable.

PROFITABILITY RATIOS.

GROSS PROFIT RATIO year 2007 2008 2009 Gross profit -81,55,371 -1,86,82,887 -80,09,738 Net sale 1,90,41,980 7,09,13,388 12,80,55,582 ratio -42.82% -26.34% -6.25%

Analysis: Gross profit ratio is prepared to measure the efficiency of the production as well as pricing. The above table showing that company is moving under negative trend . in the year 2009 the gross profit ratio is 6.25%. by analysisng net sales it has been increasing rapidly. But stil company has not recovered their losses and expenditure. So company is not in the satisfactory level.

-75.51% -42.82% -26.34% -6.35% 2007 2008 2009 TOTAL

GROSS PROFIT RATIO RATIO

Interpretation From the above graph we determined that in the year 2009 slowly recovering their losses from past two year. the company is

According to the standard higher the gross profit ratio it is favorable. Since from past three years the company is not earning any profit , so company s financial position is unfavorable.

Net profit ratio: Year 2007 2008 2009 Net earnings -93,43,111 -2,34,33,444 -1,50,23,820 Net sale 1,90,41,980 7,09,13,388 12,80,55,582 Ratio -49.06% -33.04% -11.7%

Analysis:
Net profit ratio shows the earning left for share holders as a percentage of net sale. It measures the over all efficiency of production, administration, selling , finance, pricing . etc From the above table we determined that company is not earning any profit because huge expenditure incurred on the machinery, and manufacturing of products. From the past three years the company slowly recovering their losses but it fails to make profit since three years. so companys financial position is unfavorable.

NET PROFIT RATIO RATIO

93.8

-33.04

NET PROFIT RATIO RATIO

-49.06% 2007 2008 2009

-11.70% total

Inference
From the graph we interpret that since three years the company is not earning profit . so companys financial position is unfavorable.

Proprietary ratio year 2007 2008 2009 Share holders Total tangible Ratio fund asset 1,80,79000 7,56,90,220 0.23 6,05,55,500 14,83,47,590 200,194,556 29,90,62,491 0.30 049

Analysis : The proprietary ratio establishes the relationship between shareholders funds to total assets. It determines the long-term solvency of the firm. This ratio indicates the extent to which the assets of the company can be lost without affecting the interest of the company it indicates the share of proprietary fund against each rupee investment and focuses attention on the general financial strength of the company. By Analyzing these table there is constant increase in the fixed asset since three year. In the year 2009 proprietary ratio is 0.49 which is more than the past two years. now the present financial position of the company is favorable.

Proprietary ratio

proprietary ratio
1.2 1 0.8 0.6 0.4 0.2 0 proprietary ratio RATIO 2007 0.23 2008 0.3 2009 0.49 total 1.02

Inference : According to the standard proprietary ratio should be 1:3. By the above graph we interpret that financial solvency of the company is favourable.

Return on equity : year 2008 2009 Equity earning -18682887 -800,9738 Average equity 39317250 104451545 Ratio -47.5% -7.6%

Analysis: From the above table we determined that companys earning moving towards negative trend . In the year 2009 return on equity is -7.6% . company is insufficient to generate revenue .so company has to recover all its expenditure in order to provide good return.

0.6 0.5 0.4 0.3 0.2 0.1 0 2008 2009 return to equity ratio total -7.6% -47.5% -55.1%

Interpretation: From the above graph we interpret that the company is insufficient to provide good equity return.

Return on total asset year 2007 2008 2009 Net profit after Total asset tax -93,43,111 7,56,90,220 -2,34,33,444 -1,50,23,820 200,194,556 29,90,62,491 Ratio -0.12 -0.11 -0.05

This ratio between net profit and total asset. The ratio indicates the return on total asset in the form of profits With these analysis ,we determined that there is an increase in fixed asset compare to previous years. but stil the company has not been recovered their expenditure . so company is not earning any profit. At present return asset is -0.05 which is lower than the past years. so company is slowly recovering their losses .

RETURN ON TOTAL ASSET RATIO

RETURN ON TOTAL ASSET RATIO

-0.28 -0.12 2007 -0.11 2008 -0.05 2009 TOTAL

Interpretation :
from the above graph we interpret that companys total assets are increasing from past two years but company has not been generating sufficient revenue towards the total asset..

Earning power ratio year 2007 2008 2009 EBIT -81,55,371 -1,86,82,887 -800,9,738 AVERAGE TOTAL ASSET 4,86,02681 13,78,92,388 24,95,78,523 RATIO -16.78% -13.54% -3.2%

ANALYSIS; Earning power is a measure of business performance which is not affected by interest charges and tax burden. It abstracts away the effect of capital structure and tax factors and focus on operating performance. Since the company is not earning profits from past three years , because huge amount of money blocked in expenditure side . but there is an increase in the total asset since three years. but according to the accounting standard rule higher the earning power ratio greater will be companies strength.

Earning power ratio ratio

earning power ratio ratio

-16.78%

-13.54% -3.20%

Solvency ratio year 2007 2008 2009 Total liabilities Total asset to outsider 40,247510 75,690,221 110,991,249 14,60,63,611 200,194,556 29,90,62,491 Ratio 53% 55.4% 48.8%

Analysis This ratio indicates the relatioship between the total liabilitiesto outsiders to total asset of the firm. Generally lower the ratio of liabilities to total asset , more satisfactory or stable is the long term solvency position.

Looking at the above table , it is clear that the solvency ratio in the year of 2007, 2008, 2009 it is 53% , 55.4%& 48.8%. here in both the year 2007&2008 the ratios are considerably high. But in 2009 it has decreased to 48.8% , but it is still very high , therefore company should concentrate on to reduce the outside liabilities.

200% 150% 100% 50% 0% 2007 2008 2009 53% 55.40% 48.80% 157.20%

total

solvency ratio ratio

Interpretation : Generally , lower the ratio of total liabilities, more satisfactory or stable is the long term solvency position of the firm. With the above graph we can interpret that in the year 2008-09 the solvency position is 48.80% which is low compare to last two years. but according to standard, the companys solvency is very high . so company should reduce the current liabilities.