ACC Profit and Loss Account for the year ended Particulars Net Sales (OI) Material Cost

Increase Decrease Inventories Personnel Expenses Manufacturing Expenses Gross Profit Administration Selling and Distribution Exp. EBITDA Depreciation Depletion and Amortisation EBIT Interest Expense Other Income Pretax Income Provision for Tax Extra Ordinary and Prior Period Items Net Net Profit After Tax Adjusted Net Profit Dividend Preference Dividend - Equity 31-Dec06 Rs mn 58182.5 14626.5 846.6 3282.3 10981.1 28446 12066.1 16379.9 2542.5 13837.4 751.9 1500.4 14585.9 3865.9 1609.1 12275.9 10666.8 0 2809.2 31-Dec07 Rs mn 69906.8 11118.3 -69.3 3532.7 17880.1 37445 18258.7 19186.3 3050.7 16135.6 738.7 1774.9 17171.8 4917 2131.1 14385.9 12254.8 0 3750.2 31-Dec08 Rs mn 73086.2 11804.8 -3.3 4130.4 21665.6 35488.7 18157 17331.7 2941.8 14389.9 399.6 2887.1 16877.4 5238.1 488.6 12127.9 11639.3 0 3753.3

ACC Balance Sheet as on Particulars Equity Capital Preference Capital Share Capital Reserves and Surplus Loan Funds Current Liabilities Provisions Current Liabilities and Provisions Total Liabilities and Stockholders Equity (BT) Tangible Assets Net Intangible Assets Net Net Block Capital Work In Progress Net Fixed Assets Investments Inventories Accounts Receivable Cash and Cash Equivalents Other Current Assets Current Assets Loans & Advances Miscellaneous Expenditure Other Assets 31-Dec06 Rs mn 1874.8 0 1874.8 29551.6 7711.6 10247.3 4326.7 14574 58370.2 29224.9 0 29224.9 5584.2 34809.1 5035.4 6241.3 2139.6 6201.7 161.3 14743.9 4468.5 9.4 31-Dec07 Rs mn 1878.3 0 1878.3 39647.8 3064.1 15549.2 6662.7 22211.9 70117.6 32891 256.2 33147.2 6491.9 39639.1 8448.1 7308.6 2892.9 7434.8 188.7 17825 4205.4 0 31-Dec08 Rs mn 1878.8 0 1878.8 47398.5 4820.3 17773.6 9639.3 27412.9 84868.4 34461.6 235.4 34697 16028.6 50725.6 6790.8 7932.7 3101.7 9842.4 206.7 21083.5 6268.5 0

Total Assets (BT)

59066.3

70117.6

84868.4

Ratio of ACC
1. Gross Profit Ratio:-

Year Gros s Profi t Rati o

2006 =28446/58182.5*1 00 =48.89%

2007 =37445/69906.8*1 00 =53.56%

2008 =35488.7/73086.2*1 00 =48.557%

Comment:- Gross Profit Ratio gives us the analysis that how much amount of Gross Profit a firm is in earning per rupee of its sales Gross Profit ratio in 2007 was 49.89% & it increased to 53.56% in 2008 & then again in 2009 it decreased as Gross Profit ratio increased in 2008 companys amount to meett other expenses also increased & it shows the good control over the expense & shows that company has good productivity to 48. 557% than the previous year which was mainly because there was more expenditure in purchasing R. Ms & other factory expense. Hence Gross Profit ratio in 2009 decreased which is unfavorable.

2. Operating Ratio:-

Year Operati ng Ratio

2006 =41802.6/58182.5*1 00 =71.847%

2007 =50720.5/69906.8*1 00 =72.55%

2008 =55754.5/73086.2*1 00 =76.28%

Comment:- Comment:- This ratio indicates the operational efficiency of management in controlling the day to day expenses of the company & lower ratio is favorable. It is also useful in internal analysis for detecting the areas which are responsible for lower profits. The operating efficiency of business in 2007 is 71.847 & then it increased in 2008 & 09 which is unfavorable.

3. Net Profit Ratio:-

Year

2006

2007 =16135.6/69906.8*1 00 =23.08% =14385.9/69906.8*1 00 =20.57%

2008 =14389.9/73086.2*1 00 =19.6% =12127.9/73086.2*1 00 =16.59%

Operatin =13837.4/58182.5*1 g Net 00 Profit =23.78% Net Profit(AT ) =12275.9/58182.5*1 00 =21.09%

Comment:- Net profit ratio indicates the relationship between net profit and net sales. Net profit can be either operating net profit or net profit after tax or net profit before tax. This ratio is also known as Margin on Sales ratio & higher ratio is favorable. As we can see from the table there is a gradual decrease in the operating Net Profit as well as NPAT from 2007 to 09 which is unfavorable & the reasons for decreased profit margin are expenditure on purchase of goods for resale, expansion of production, decrease in inventory of WIP & finished goods.

4. Current Ratio:-

Year Curre nt Ratio

2006 =22455.5/14574 =1.54:1

2007 =20889.1/22211.9 =0.94:1

2008 =25903.8/27412.9 =0.9449:1

Comment:- This ratio expresses the relationship between current assets and current liabilities & indicates the short term solvency of a business organization & its ability to meet its current liabilities. In all the years, the current ratio is below the accepted standard of 2:1 and hence short term position of the co. is not satisfactory or unsatisfactory

5. Quick Ratio/ Liquid Ratio/ Acid Test Ratio:-

Year Quic k Ratio

2006 =16214.2/14574

2007 =13580.5/22211.9

2008 =17971.1/27412.9

=1.11:1

=0.61:1

=0.655:1

Comment:- This ratio indicates the immediate solvency of the business enterprise. It also helps answer the question: "If all sales revenues should disappear, could my business meet its current obligations with the readily convertible `quick' funds on hand?" Quick Assets consist of only cash and near cash assets. The standard ratio is 1:1 or more.

6. Proprietary Ratio

Year Proprieto rs Ratio

2006 =31426.4/46578.5*1 00 =67.46%

2007 =41526.1/62584*1 00 =66.35%

2008 =49277.3/77093.8*1 00 =63.92%

Comment: This ratio is a test of the financial and credit strength of the business. This ratio determines the long-term or ultimate solvency of the company. Proprietary ratio determines as to what extent the owners interests and expectations are fulfilled from the total investments made in the business operations. The standard ratio is 60% to 75%. The proprietary ratio is 67.4% in 2006-07 is decreased to 66.35% and further decreased to 63.92% in 2008-09 which is in the range of standard therefore it is favorable to the company. Therefore, the long term solvency position of the company is satisfactory.

7. Capital Gearing Ratio:-

Year

2006

2007 =3064.1/41526.1 =0.0737

2008 =4820.3/49277.3 =0.0978

Capital =7711.6/31426.4 Gearin =0.245 g Ratio

Comment:- The main purpose served by capital gearing ratio is that it analyses the capital structure of company effectively. If the ratio exceeds 1:1 the company is said to be highly geared other wise lowly geared. Capital gearing ratio of the company was 0.2450 in 2006-07, in 2007-08 was 0.0737 & in 2008-09 was 0.0978%. this ratio are the below the standard level therefore we can say that the company is lowly geared low gearing will result in retention of control in the hands of equity shareholders, low earning per share

8. Debt Equity Ratio:-

Year DebtEquit y Ratio

2006 =7711.6/31426.4 =0.2453:1

2007 =3064.1/41526.1 =0.0737:1

2008 =4820.3/49277.3 =0.0978:1

Comment: - It expresses the relation between the external equities and internal equities or the relationship between borrowed capital and owners capital. The standard ratio is 2:1 lower than that is favorable otherwise unfavorable or adverse. Debt equity ratio was 0.24530 in 2006-07 which is decreased to 0.0737 in 2007-08 and 0.0978 in 2008-09. The debt was sufficiently covered by the equity. Therefore, long term financial position of the company was satisfactory for all the three years. The above ratio is below the standard therefore all the years ratio is favourable.

9. Return on Proprietors Funds:-

Year Return on Proprieto rs funds

2006 =12275.9/31426.4*1 00 =39.06%

2007

2008

=14385.9 / =12127.9/49277.3*1 41526.1*100 00 =34.64% =24.61%

Comment: -. This ratio is of practical importance to prospective investors and share holders. It would be possible for the company to raise finance from external sources and even through public deposits. The return in 2006-07 is 39.06% , in 2007-08 is 34.64% , in 2008-09 is 24.61% It appears to favorable in 2006-07 and unfavorable in 2007-08,2008-09 because this ratio decrease gradually. Earning power of proprieors equity is not satisfactory. Overall profitability of both companies is not satisfactory. Proprietors equity is not utilized effectively.

10. Return on Capital Employed / Return On Investments

Year Return On capital Employe d

2006 =14589.3/39138*1 00 =37.27

2007 =16874.3/44590.2*1 00 =37.84

2008 =14789.5/54097.6*1 00 =27.33

Comment:- The ROI is perhaps the most important ratio of all. It is the percentage of return on funds invested in the business by its owners. In short, this ratio tells the owner whether or not all the effort put into the business has been worthwhile. If the ROI is less than the rate of return on an alternative, risk-free investment such as a bank savings

account, the owner may be wiser to sell the company, put the money in such a savings instrument, and avoid the daily struggles of small business management In 2006-07 get return by 37.27%, in 2007-08 return will be 37.84% and in 2008-09 return will be 27.33%. This return is gradually decreasing compare to last year but this ratio compared to market situation the ratio is favorable.

11. Earning per share:

Year Earning per share

2006 =12275.9/187. 48 =65.47

2007 =14385.9/187.83 = 76.59

2008 =12127.9/187.88 =64.55

Comment:-EPS Ratio is a small variation of return on equity capital ratio and is calculated by dividing the net profit after taxes and preference dividend by the total number of equity shares. The earnings per share are a good measure of profitability and when compared with EPS of similar companies, it gives a view of the comparative earnings or earnings power of the firm. EPS ratio calculated for a number of years indicate in 2007-08 is Rs. 80.94 per share this return is good compare to last year. In 2008-09 was Rs. 78.48per share this return is slightly decrease compare to last year.

12. Debt Service ratio:

Year Debt Service Ratio

2006 =13837.4/751 .9 =18.4

2007 =16135.6/738.7 = 21.84

2008 =14389.9/399.6 =36.01

Comment:- This ratio is important from the lenders point of view. It indicates whether the co. will earn sufficient profits to pay periodically the interest charge. In 2005-06 ratio shows that 18.4 times, 2006-07 is 21.84 times and in 2007-08 is 36.01 times of the annual interest payable the co. is earning profits

The ratio compare with the general rate of interest prevailing in the market then above ratio is favorable.