P. 1
6. CHAPTER – I,II,III,IV

6. CHAPTER – I,II,III,IV

|Views: 9|Likes:
Project_MBA
Project_MBA

More info:

Categories:Types, Research
Published by: Harichandran Karthikeyan on May 11, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

11/21/2014

pdf

text

original

The ratio is a measure of the percentage of net profit to equity

shareholders fund. The ratio is expressed as follows:

Return on shareholders Equity Ratio

=

Net Profit

Shareholders Fund

TABLE NO: 3.5.3

73

RETURN ON SHAREHOLDERS EQUITY RATIO

NET PROFIT:

Year

Rs.
(In. Laksh)

Increase/Decrease

Increase/Decrease
(%)

Index

2005-2006

137.84

----

----

100

2006-2007

517.92

380.08

275.74

375.74

2007-2008

467.72

- 50.2

- 9.69

366.05

2008-2009

378.70

- 89.02

- 19.03

347.01

2009-2010

478.93

100.23

26.47

373.48

Average = 123.354 Maximum = 517.92 Minimum = 137.84

SHAREHOLDERS FUND:

Year

Rs.
(In. Laksh)

Increase/
Decrease

Increase/Decrease
(%)

Index

Ratio

2005-2006

3754.68

----

----

100

3.67

2006-2007

4124.45

369.77

9.85

109.85

12.56

2007-2008

4658.70

534.25

12.95

122.80

10.04

2008-2009

5170.03

511.33

10.98

133.78

7.32

2009-2010

4865.76

- 304.27

- 5.89

127.89

9.84

Average = 1724.088 Maximum = 5170.03 Minimum = 3754.68

(SOURCE: ANNUAL REPORTS)

INTERPRETATION:

74

The Return on Investment is determined with the help of Net profit after tax

and shareholders fund. As the primary objective of the business is to maximize

the earnings, this ratio indicates the extent to which this primary objective is

being achieved. The ratio changes from 3.67% to 9.84%

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->