RATIO ANALYSIS A. LIQUIDITY RATIOS - Short Term Solvency Formula Ratio 1. urrent Ratio urrent A!!et!

urrent Lia"ilitie! Numerator Inventorie! # De"tor! # a!h $ %an& # Receiva"le! ' Accrual! # Short term! Loan! # (ar&eta"le Inve!tment! Denominator Sun)ry re)itor! *+or ,oo)!# Out!tan)in, ./0en!e! *+or !ervice!# Short Term Loan! $A)vance! * r.# %an& Over)ra+t ' a!h re)it # 1rovi!ion +or ta/ation # Proposed or Unclaimed Dividend Significance/Indicator A"ility to re0ay !hort-term commitment! 0rom0tly. *Short-term Solvency- I)eal Ratio i! 231.4i,h Ratio in)icate! e/i!tence o+ i)le current a!!et!.

2. Quic& Ratio or Aci) te!t ratio 5. A"!olute a!h Ratio 6

Quic& A!!et! Quic& Lia"ilitie!

urrent Lia"ilitie! urrent A!!et! Less : Inventorie! Less : %an& Over)ra+t Less : 1re0ai) ./0en!e! Less : a!h re)it a!h in 4an) # %alance at %an& *Dr.# (ar&eta"le Securitie! $ !hort term inve!tment!

A"ility to meet imme)iate lia"ilitie!. I)eal Ratio i! 1.5531

* a!"#(ar&eta"le Securitie!urrent Lia"ilitie!

Sun)ry re)itor! *+or ,oo)!- Availa"ility o+ ca!h to meet !hort# Out!tan)in, ./0en!e! *+or term commitment!. !ervice!# Short Term Loan! $A)vance! * r.# Bank Over)ra+t ' a!h re)it # 1rovi!ion +or ta/ation # 1ro0o!e) or Unclaime) Divi)en) Aaattal a!h./0en!e! 36 a!h ./0en!e! 8 Total ./0en!e! le!! De0reciation an) 9rite o++!. A"ility to meet reg!lar cash expenses"

7. Interval (ea!ure

Quic& A!!et! urrent A!!et! Cash Expenses 1er Day Le!! 3 Inventorie! Less : 1re0ai) ./0en!e!

N

P" C#PI$#% S$&UC$U&E &#$I'S ( In)icator o+ Financin, $echni)!es $ lon,-term !olvency 1. .:uity to Total Fun)! Ratio Sharehol)er;! Fun)! Total Fun)! .:uity Share a0ital #1re+erence Share a0ital # Re!erve! $ Sur0lu! Le!! 3 Accumulate) Lo!!e! Lon, Term %orro9e) Fun)!6 i.e. De"enture!6 Lon, Term Loan! +rom in!titution! Total Lon, Term +un)! em0loye) in "u!ine!! 8 De"t#.:uity. In)icate! Lon, Term Solvency< mo)e o+ +inancin,< e/tent o+ o9n +un)! u!e) in o0eration!. In)icate! the relation!hi0 "et9een )e"t $ e:uity< I)eal ratio i! 231.

2. De"t .:uity Ratio

De"t .:uity

.:uity Share a0ital #1re+erence Share a0ital # Re!erve! $ Sur0lu! Le!! 3 Accumulate) lo!!e!6i+ any

B" C#PI$#% S$&UC$U&E &#$I'S ( Indicator of *inancing $echni)!es + long(term solvenc, - Contd... 5. a0ital =earin, Ratio Fi/e) har,e %earin, a0ital .:uity Sharehol)er;! Fun)! 1re+erence Share a0ital # De"enture! # Lon, Term Loan! .:uity Share a0ital # Re!erve! $ Sur0lu! Le!!3 Accumulate) Lo!!e! Sho9! 0ro0ortion o+ +i/e) char,e *)ivi)en) or intere!t- "earin, ca0ital to e:uity +un)!< the e/tent o+ a)vanta,e or levera,e en>oye) "y e:uity !harehol)er!.

a0italB Le!!3 Lon.re!!ive< I)eal Ratio i! le!! than one. a!!et!.i"le a!!et! 9ill "e utili!e) in +inancin.- Note 3 1ro0rietary Fun)! +or %-@ can "e com0ute) throu.:uity Share a0ital # 1re+erence Share a0ital #Re!erve! $Sur0lu! Le!!3 Accumulate) lo!!e! Sho9! 0ro0ortion o+ +i/e) a!!et! *lon.:uity Share a0ital # 1re+erence Share a0ital # Re!erve! $ Sur0lu!B Le!!3 Accumulate) lo!!e! • A!!et! Route 3 ANet Fi/e) A!!et! # Net Cor&in.! +un)! *a! in %1. . Fi/e) A!!et to Lon. a00roach +ollo9e) "y the ? +irm i. Term Fun)! Net Fi/e) A!!et! i.e.7.-terma!!et!+inance)"ylon.# De"t +un)! *a! in %2- @. In)icate! the +inancin.! Net Fi/e) A!!et! +un)! # Total urrent A!!et! *Only tan. Sho9! e/tent o+ o9ner. Term Fun)! 8 Sharehol)er.term +un)!. =ro!! %loc& Less: De0reciation Lon. or a..e. Term Lia"ilitie!. con!ervative6 matchin.h t9o 9ay! +rom the %alance Sheet3 • Lia"ility Route 3 A. Term Fun) Ratio Fi/e) A!!et! Lon. inclu)e). 1ro0rietary Ratio *See Note "elo9- 1ro0rietary Fun)! Total A!!et! .

.A))3 Ta/ation overa..e .arnin. intere!t.! a+ter Ta/ 8 Divi)en) 1re+erence Divi)en) Share . )e0reciation an) amortiDation!A)) 3 Non-o0eratin.E& / #C$I.lo!! on !ale o+ +i/e) a!!et!2.e a0ital Ratio D" $U&1'.arnin.enerally "e .! "e+ore Intere!t Intere!t on De"t Fun) an) Ratio Ta/ Ta/e! 8Sale! Le!! Intere!t Earia"le an) Fi/e) o!t! *e/clu)in.AT # Ta/ation # Intere!t 5.! "e+ore Intere!t $ .. Shoul) .B" C'. . In)icate! a"ility to meet intere!t o"li. commitment! an) out+lo9 to9ar)! intere!t an) in!talment< I)eal ratio mu!t "e "et9een 2 to 5 time!.e A))3In!talmento+De"t A)) 3 Intere!t on De"t *0rinci0al re0ai)Fun)! A)) 3 Non-ca!h o0eratin.! availa"le +or meetin.*or.! a+ter Ta/ Divi)en) on 1re+erence . In)icate! a"ility to 0ay )ivi)en) on 0re+erence !hare ca0ital. a)>u!tment! *e.arnin..E&#/E &#$I'S ( #0ilit.arnin. to Serve *ixed %ia0ilities De"t Service Ratio . 1re+erence .ation! o+ the current year. e/0en!e!*e.arnin.reater than I.AT overa.I$2 / PE&*'&3#1CE &#$I'S In)icate! e/tent o+ current earnin. Intere!t overa..! +or De"t Service Net 1ro+it a+ter ta/ation Intere!t on De"t *Intere!t#In!talment.

Stoc& # o!t o+ 1ro)uction Le!!3 lo!in. CI1 Turnover Ratio F. Cor&in. a0ital. Ra9 (aterial Turnover Ratio Factory o!t Avera. *O0enin. Stoc& # lo!in.enerally (a/imum Stoc& # (inimum in)icate! +a!t movin. @. A hi. Stoc& # lo!in. Stoc& For Tra)er!3 O0enin.e Stoc& Sale! net o+ return! For (anu+acturer!3 O0enin.e! # 1ro)uction Overhea)! O0enin.enerate !ale! 0er Lia"ilitie! ru0ee o+ Cor&in.her the turnover ratio6 the "etter it i!.e Stoc& o+ CI1 o!t o+ (aterial on!ume) Avera.enerate !ale! 0er ru0ee o+ lon. In)icate! how +a!t inventory Stoc&i! 2 u!e) ' !ol). A"ility to . CI1 # lo!in.-term inve!tment. Stoc& urrent A!!et! Le!! urrent A"ility to .i. The hi. material 9hile Stoc& lo9 ratio may mean )ea) or 2 e/ce!!ive !toc&. Stoc& .enerate !ale! 0er ru0eey of Fi/e) A!!et 5. Stoc& 2 In)icate! the CI1 movement ' 0ro)uction cycle.m0loye) Sale! net o+ return! See Note 1 below: 2. a0ital Turnover RatioD Sale! a0ital . Fi/e) A!!et Turnover Ratio Turnover Fi/e) A!!et! Sale! net of return! Net Fi/e) A!!et! A"ility to . a0ital Q.h turnover ratio or . Stoc& # 1urcha!e! Le!!3 lo!in. O0enin. CI1 2 O0enin. In)icate! how +a!t ra9 material! are u!e) in 0ro)uction. Fini!he) =oo)! or Stoc& Turnover Ratio o!t o+ =oo)! Sol) Avera. Stoc& o+ R( #1urcha!e! Le!!3 lo!in.e Stoc&o+R( (aterial! # Ca. a0ital Turnover Turnover Ratio Net Cor&in.

"al. a0ital Liability Rowe : . Sale! Account 2. income! Net 1ro+it Sale! net o+ return! In)icator o+ O0eratin. 1ro+ita"ility. e/0en!e! Le!! 3 Non-o0eratin. 1er+ormance o+ "u!ine!!. Term Loan! Le!! Accumulate) Lo!!e! Le!! Non-Tra)e Inve!tment! 1ote 6 5 Turnover ratio! can al!o "e com0ute) in term! o+ )ay! a! 5F@ ' TO Ratio6 e. o+ )ay! avera.0ro+it ratio O0eratin. ontri"ution Sale! Ratio Net 1ro+it Sale! ontri"ution Sale! Sale! net o+ return! Sale! net o+ return! In)icator o+ overall 0ro+ita"ility.e Account! Receiva"le cre)it !ale!. "al. O0eratin. 2 1ote 4 5 Assets Route : Net Fi/e) A!!et! -t Net 9or&in. 2 H. "al. "al.e Account! De"tor! #%'R o+ Receiva"le Avera. De"tor! Turnover Ratio 5. No. *al!o calle) 1E Ratio- Sale! Le!! Earia"le o!t! ..e Account! 1aya"le 8 O0enin. 1ro+it Sale! Sale! Le!! co!t o+ !ale! *orNet 1ro+it A))3 Non-o0eratin.re)it Sale! re)it Sale! net o+ return!Account! Receiva"le8 In)icate! !0ee) o+ collection Avera. 8 O0enin. # lo!in. In)icator o+ 0ro+ita"ility in (ar.inal o!tin.e !toc& i! hel) 8 5F@ ' Stoc& Turnover Ratio. 1aya"le Avera.:uity Share a0ital # 1re+erence Share a0ital # Re!erve! $ Sur0lu! # De"enture! an) Lon..1aya"le8 re)itor!# In)icate! velocity o+ )e"t Ratio Avera.. =ro!! 1ro+it Ratio =ro!! 1ro+it a! 0er Sale! net o+ return! In)icator o+ %a!ic =ro!! 1ro+it Tra)in.e Account! return!6 i+ any %'1 0ayment. E" P&'*I$#BI%I$2 &#$I'S B#SED '1 S#%ES I. G. re)ito6!Turnover re)it 1urcha!e! re)it 1urcha!e! net o+ Account!. Net 1ro+it Ratio 7. # lo!in.

:uity Share a0ital Face Ealue 0er !hare Overall 0ro+ita"ility of the 0!siness +or the ca0ital emplo. .! a+ter Ta/e! Net Corth 1ro+it A+ter Ta/e! 1ro+ita"ility o+ . intan. Term Loan! Le!!3 Accumulate) Lo!!e! Le!!3 Non-Tra)e Inve!tment! Net Fi/e) A!!et! # Net Cor&in. 2. I Intere!t Rate6 u!e o+ )e"t +un)! i! >u!ti+ie).arnin. IA +i/e) a!!et!.:uity Share a0ital Face Ealue 0er !hare . Return on A!!et! *ROANet 1ro+it a+ter ta/e! Avera. a0ital Lia"ility Route 3 .arnin./ternal Lia"ilitie! *lon. 9ith rate o+ intere!t o+ )e"t lea)! to +inancial levera. an) lo!in.1S 1ro+it A+ter Ta/e! Le!t A1AT . Return on Total .:uity Sharehol)er! @.i"le a!!et! li&e 0atent!6 "ut not +ictitiou! a!!et! li&e mi!cellaneou! e/0en)iture not 9'o+#Net 9or&in.:uity Share! Return or income 0er !hare6 9hether or not )i!tri"ute) a! )ivi)en)!.:uity Share! .1re+erence 1re+erence Divi)en) Divi)en)B Num"er o+ . . term. o+ O0enin.m0loye) A))3 Ta/ation *ROI.arnin. %alance Il!stration 4 5 &atio Comp!tation from *inancial Statements .e Total A!!et! or Net Income 0er ru0ee o+ Tan. *RO . Return on . I+ RO . Divi)en) 1er Share Divi)en)! 1ro+it! )i!tri"ute) to D1S Num"er o+ .*" P&'*I$#BI%I$2 &#$I'S ( '71E&8S . 5.:uity RO.e/0en!e! Le!! 3 Non-o0eratin.! 1ro+it! a+ter ta/e! Inve!tment Total a0ital .i"le avera.:uity Fun)! inve!te) in the "u!ine!!.e A!!et! or Fi/e) A!!et!6 i.:uity Share a0ital # 1re+erence Share a0ital # Re!erve! R Sur0lu! #De"enture! an) Lon.IE7 P'I1$ 1.e Total A!!et! Net 1ro+it a+ter ta/e! Avera.! 1er Share . Amount o+ 1ro+it! )i!tri"ute) 0er !hare 7. a0ital Le!!3 . om0ari!on o+ RO .e. income! li&e rent!6 intere!t an) )ivi)en)! A!!et! Route3 Net Fi/e) A!!et! *inclu)in.e.ed9 in)icate! the return on the total ca0ital em0loye).m0loye) A)) 3 Non-tra)in.or Return on A))3 Intere!t a0ital .

1J each +ully 0ai) u0 Re!erve! 1ro+it $ Lo!! Account Secure) Loan! %an& Over)ra+t Sun)ry re)itor!3 For .urrent Ratio < *e. ratio! 3 *a.ear ended 34st 3arch #mt" Partic!lars #mt" Partic!lars H@6JJJ %y Sale! To (aterial! on!ume)3 O0enin./0en!e! 56JJJ To Financial . $rading and Profit and %oss #cco!nt for the .De"tor! Turnover Ratio < *iFi/e) A!!et! Turnover Ratio. Stoc& .Li:ui) Ratio *+.O0eratin.From the +ollo9in./0en!e! 16@JJ To Lo!! on Sale o+ A!!et! 7JJ To Net 1ro+it 1@6JJJ H@6KJJ Total H@6KJJ Total Balance Sheet as at 34st 3arch %ia0ilities Share a0ital3 2JJJ e:uity !hare! o+ R!. Stoc& . 1ro+it Ratio < *c..*176JJJ7K6@G@ 1672@ To arria.e In9ar)! To O++ice .=1 Ratio 3 ".De"t .K6J@J %y 1ro+it on Sale o+ Inve!tment! FJJ 1urcha!e! ./0en!e! For Other! Total #mt" 2J6JJJ 56JJJ F6JJJ F6JJJ 56JJJ 26JJJ H6JJJ 7H6JJJ #ssets Fi/e) A!!et! 3 %uil)in.@76@2@ %y Intere!t on Inve!tment! 5JJ F56@G@ lo!in.Return on Inve!tment Ratio < *h.:uity Ratio < . annual !tatement! o+ Su)har!han Lt)6 calculate the +ollo9in.! 1lant urrent A!!et!3 Stoc& in Tra)e De"tor! %ill! Receiva"le %an& %alance! Total #mt" 1@6JJJ H6JJJ 176JJJ G6JJJ 16JJJ 56JJJ 7H6JJJ ./0en!e! 1@6JJJ To Sale! .Net 1ro+it Ratio < *).

R!.=1 Ratio ..5FJJJJ *".R!. 2an+ 31erdraft .2@ la&h! Un!ecure) Loan! at 12. Li uid Ratio . 1ro+it *!u">ect to Ta/ o+ @JL..2 Rs.De"tor! .@ la&h! Inve!tment! . -..!." Fi#ed $ssets % Proprietary Funds .R!... Ratio +rom the +ollo9in.75.Inventory Turnover Ratio .R!..R!.:uity Share a0ital *o+ R!.R!.30. !. Reser1es and Surplus Current Ratio ... *or+ing Capital . and current ratio is 2.F *).2@ la&h! O0eratin.5.illustration 2 : Computing AC P alculate the Avera.R!.e Inventory .R!.. Li uid ratio is !. in+ormation 3 .@L . and the gearing ratio !"uity Capital%Preferen)e Capital. Bank Overdraft is Rs...R!. a 5FJ-)ay year. Illustration 5 : Statement of Proprietar! Funds *or+ing capital of a company is Rs. *a. From the a#ove.re)it Sale! to Total Sale! . Reserves and surplus amount to Rs. as)ertain / .0".R!..Avera.1JL *e.Rs.e ollection 1erio) +rom the +ollo9in.&!' (here are no long-term loans or fi)titious assets. prepare a Statement of Proprietors' Funds...@J la&h! Fi/e) A!!et! .1J la&h! (ar&et 1rice 0er !hare .. is 2."..@J Illustration 4 : Statement o Proprietar! "un#s From the following information relating to a Limited Company.!.5J la&h! Re!erve! an) Sur0lu! .&".Rs.27JJJJ *c..2JL Illustration 3 : PE Ratio Computation alculate 1'. )etail! "y a)o0tin..@ la"! Secure) Loan! at 1@L .2J each." and the proprietary ratio 0.000 there are no long term loans and fictitious assets.

Net *orth % Long (erm Loan Ratio 9 2.2..l8 la+hs.NT $i% &urrent assets $ii% &urrent lia4ilities $iii% 'et 4lo)+ $iv% Proprietary fund $lso draw the statement of property Fund Illustration $ : %alan&e S'eet Preparation $v% (uick lia4ilities $vi% (uick assets $vii% )tock and $viii% *reference and e"uity 2ased on the following information..(.'.2 Net *or+ing )apital to Net *orth Ratio 9 . Reser1es % Capital Ratio 9 !." 7ross Profile to Sales Ratio 9 . la+hs Illustration ) : %alan&e S'eet Preparation From the following information of *iser Ltd. $1erage Colle)tion Period . prepare its proforma 2alan)e Sheet if its sales are Rs.times> fitness Current Lia4ilities to Net *orth ." Sales % 6e4tors Ratio 9 8.." $1erage 6e4t Colle)tion Period .Rs.2.2.. !..2. 1 H OST A OUNTIN= AND FINAN IAL (ANA=. prepare the 2alan)e Sheet of Star 5nterprises as at &!st 6e)em4er Current Ratio . Sales to Closing ?n1entory .:. 7ross Profit to Sales .. Current Ratio 9 2..8' days @>. prepare its summari<ed 2alan)e Sheet.& Current Ratio .0%2" Illustration (: %alan&e S'eet Preparation From the following information relating to *ise Ltd.0"." $)id (est Ratio 9 !.Ratio figures are re)ast in a more understanda4le wayA ..'2.. Sto)+ =elo)ity 9 2 months Paid up share Capital 9 Rs. Sales to Net *orth ." times> (otal Lia4ilities to Net *orth ..& Sales % Net Fi#ed $ssets Ratio 9 2.2.1G.!. Sales % Net *orth Ratio 9 !." Cost of 7oods Sold to Net Fi#ed $ssets .8 la+hs Sto)+ (urno1er Ratio 9 " Fi#ed $ssets to Net *orth ..' months Net *or+ing Capital . Long (erm 6e4t to Capital and Reser1es ..2 Li uidity Ratio .

more than 3pening Sto)+ 6e4tors =elo)ity .!"..!. Ltd.'...2........Rs.A ..0. Current $ssets to Sto)+ ...'.. $t Cost 5 uity Shares 2..&. Si1apra+asam C )o.!. Finan)ial Le1erage ..". 5arnings Per Share Eea)h of Rs. Preferen)e Shares !. days....Rs. .'. of Sales Closing Sto)+ ... 7eneral Reser1es '.2.2...Illustration *: %alan&e S'eet Preparation From the following information and ratios.. 8. 2oo+ =alue per share ...H!/ Lia4ilities Rs...0" Net *or+ing Capital .. an e#port Company @(a+e ! year D &8. prepare its finan)ial statements for the year Fust ended. prepare the profit and Loss $))ount and 2alan)e Sheet of B%s." *or+ing Capital .& 2an+ 31erdraft ..2. 2.2.8...&.!...Rs. Current Ratio ... $1erage Colle)tion Period ....Rs.... 6epre)iation !. Illustration ++ : "inan&ial Statements Preparation 2elow is gi1en the 2alan)e Sheet of Sunrise Ltd..!2..!. la+hs Net Profit to Sales .&/2 Current Ratio .!. Fi#ed $sset (urno1er Ratio .. (a#ation 9 N?L Illustration +. of Proprietary Funds Sales .Rs..8.Rs.!.... days Sto)+ (urno1er Ratio . . days Net Profit . &.!.!.... =aria4le Cost .2.8 Share Capital . Long (erm Loan ?nterest ... 7ross Profit ..&. Gui)+ Ratio ..!.. $)id (est Ratio D !.. Sto)+ in trade Rs. $ssets Fi#ed $ssets Share Capital/ !'.Rs. (otal Lia4ilities to Net *orth .!. : "inan&ial Statements Preparation From the following information of Su+anya C Co.... +ess . as on &!st Bar)h.". Proprietary Ratio @Fi#ed $ssets%Proprietary Fund...2.

. 2.. E$A ?ndi)ate the a))ounting ratios that will 4e used 4y ea)h of the following/ aA $ Long (erm Creditor interested in determining whether his )laim is ade uately se)ured. 2.2". $ di1idend J !..... &. 6e4tors would 4e !%-th of sales. !2.".!.H!. (he Sto)+-(urno1er Ratio would 4e !'. de4entures ha1e 4een issued on $pril !. (he following information is a1aila4le / !... would 4e paid on e uity shares in Bar)h 2.. ".H2. 6e4entures Current Lia4ilities (otal 8. '.H! and would 4e)ome operati1e on that date. Illustration +2 : -se o Ratios an# Ratios as In#i&ators. 2.. ... 2.... !... (he 4rea+-up of )ost and profit would 4e as follows / Baterials .. payment is re uired to 4e made on &!st Bar)h..H2. (he Fi#ed $ssets-(urno1er Ratio would 4e !.I 3ffi)e and Selling 5#penses .!.' Eon the 4asis of the a1erage of the opening and )losing sto)+A. ". (he profit is su4Fe)t to interest and ta#ation J "...!. Fi#ed assets )osting Rs. "... E2A *hi)h a))ounting ratio will 4e useful in indi)ating the following sym ptoms K Bay !--& EFA EiA Low )apa)ity utilisation EiiA Falling demand for the produ)t in the mar+et EiiiA ?na4ility to pay interest Ei1A 2orrowing for short term and in1esting in long-term assets E1A Large in1entory a))umulation in anti)ipation of pri)e rise in future E1iA ?neffi)ient )olle)tion of de4tors E1iiA ?na4ility to pay dues to finan)ial institutions E1iiiA Return of shareholder's funds 4eing mu)h higher than the o1erall return of in1estment Ei#A Li uidity )risis E#A ?n)rease in a1erage )redit period to maintain sales in 1iew of falling demand .......I Profit .!. 0... :.. Rs. 4A $ 2an+ whi)h has 4een approa)hed 4y the Company for Short (erm Loan % 31erdraft )A $ Shareholder who is e#amining his portfolio and who is to de)ide whether he should hold or sell hi/ shares in a Company./ 6epre)iation ...... :. 8.!2......I La4our .. and Sales .I Banufa)turing 5#penses . ".. to 4e installed on !st $pril." Eon the 4asis of )ost of Fi#ed $ssetsA.'... Sundry 6e4tors Cash (otal.!.. 2.. Prepare the fore)ast 2alan)e Sheet as on 51!t (arch 2JM2. Creditors would 4e !%"th of materials )ost..

0upont C'art (he Finan)ial Statements of 5#)el $BP 7raphi)s Limited are as under / 2alan)e Sheet as at 6e)em4er &!.! 1articular! Source! o+ Fun)! Sharehol)er! Fun)! .:uity a0ital Re!erve! an) Sur0lu! Loan Fun)! Secure) Loan! Finance Lea!e o"li.re!! Inve!tment! urrent A!!et!6 Loan! $ A)vance! Inventorie! Sun)ry De"tor! a!h an) %an& %alance! Loan! an) A)vance! Less : urrent Lia"ilitie! 1rovi!ion! Net urrent A!!et! Net De+erre) Ta/ Lia"ility 6::4 .&s" in Crores< 16121 H6K@J G7 1G1 2JJJ *R!. in rore!K5I G6KKK 2@K 11@ 1J6JG 1 H6K5J 27@ 1J651F 5G7 K65J7 F6FFG 56 1 @ J 56@1G 2G 26GJK K67FH 562JF 26 J 7 5 1G6 72F 1J61JK @15 1J6F22 *52J- 56@77 2HH @6G7G 26 @ F 561HF 2H 26@7J K672H FF2 16G12 176572 G6KJ2 @G2 H6 7 G 7 - 56217 222 F6HJ7 *52J- @6HFH - .. 2.ation! Un!ecure) Loan! Total #pplication o+ *!nds 5 Fi/e) A!!et! =ro!! %loc& Less : De0reciation Net %loc& a0ital Cor& in 0ro.Illustration +3 : Compre'ensi/e ROI Anal!sis .

71K . +rom Revaln. Re!. ii. Compute and analyse the a1erage in1entory holding period and a1erage )olle)tion period.712 8 1F7 216H77 HH Intere!t Profit Before $ax 16K12 1rovi!ion +or Ta/ 3 urrent Ta/ 7@J 5G1 De+erre) Ta/ *F777 Profit #fter $ax 167FH 1H61@ @ 1F6@F K 16@HF 5G1 1621@ i. Compute and analyse the Return on Capital 5mployed ER3C5A in a 6u-pont Control Chart Framewor+.Total 1J651F K65J7 Profit and %oss #cco!nt for the year en)e) Decem"er 516 2JJ1 Decem"er 516 2JJJ 1G6H7K Income 3 Sale! an) Service! 25675F 5JF Other Income 52J 256G@F Expenses 3 o!t o+ (aterial! 1@61GK 1J6KKF 1er!onnel . Compute and analyse the Return on 5 uity ER35A 4y 4rining our)learly the impa)t of finan)ial le1erage . iii./0en!e! 56@7F 26H1@ 5H5 .*G.85GG De0reciation Le!! 3 Th.*F./0en!e! 26@75 262K5 Other .

JFL O Net 1ro+it Ratio *).=ro!! 1ro+it Ratio *".:uity !hare ca0ital # Re!erve! # 1 $ L account 2J6JJJ # 56JJJ # F6JJJ8 2K6JJJ 8 Return ' a0ital . 1ro+it Ratio 8 1G..O0eratin.K2 8 Stoc& De"tor! %ill! receiva"le # %an& 8 176JJJ#G6JJJ#16JJJ#56JJJ 82@6JJJ 8 Sun)ay re)itor! +or e/0en!e! $ Other! # %an& over)ra+t 8 26JJJ#H6JJJ#56JJJ 8156JJJ 8 Quic& A!!et! ' Quic& Lia"ilitie! 8 116JJJ' 1J6JJJ 8 1. 1ro+it ' Sale!8 A1@6JJJ#7JJ N FJJ N 5JJB ' H@6JJJ 8 Net 1ro+it ' Sale! 8 1@6 JJJ ' H@6JJJ 81G.Return on Inve!tment Return S!dharshan %imited 8 =ro!! 1ro+it ' Sale! 8 7JL 8 O0eratin.De"t .1 time! 8 urrent a!!et! N Stoc&8 2@6JJJ N 176JJJ8 116JJJ 8 urrent Lia"ilitie! N %an& over)ra+t 8 156JJJ N 56JJJ8 1J6JJJ 8 F6JJJ ' 2K6JJJ8J.Li:ui) Ratio Quic& A!!et! Quic& Lia"ilitie! *t.S'%U$I'15 I *a.F@L 8 urrent A!!et! ' urrent Lia"ilitie! 8 2@6JJJ ' 156JJJ 8 1.:uity *.&s"< .75L 8 Net 0ro+it # Lo!! on !ale o+ a!!et! .:uity Ratio De"t .urrent Ratio urrent A!!et! urrent Lia"ilitie! *e.m0loye)8 176@JJ ' 5@6JJJ 8 71.21 time! 8 Secure) loan! 8 F6JJJ 8 .

!.a0ital em0loye) *h...e )e"tor! 8 Avera.ivenThere+ore o!t o+ ..FK time! 1ro+it on !ale o+ inve!tment! .e ollection 0erio) 8 5FJ ' De"tor! turnover *R!.re)it !ale! 8 2JL o+ 276JJ6JJJ *).oo)! !ol) 8 56FJ6JJJ M F *".5JJ8 176@JJ 8 De"t # ..".0" !.Intere!t on inve!tment! 8 1@6JJJ # 7JJ . la+hs # !2.F2@ time! II" S'%U$I'1 5 *a.Fi/e) A!!et! Turnover 85.e inventory *.FJJ .De"tor! Turnover *i. ...oo)! !ol) 4ence !ale! 8 216FJ6JJJ ' KJL *c.Inventory Turnover 8 o!t o+ . &.oo)! !ol) ' Avera. 2" la+hs # !" ...2" 2.:uity 8 F6JJJ # 2K6JJJ 85@6JJJ 8 Sale! ' Avera. ERs.. !.8 56FJ6JJJ 8 216FJ6JJJ 8 1JL 8 KJL 8 276JJ6JJJ 8 76HJ6JJJ 76HJ6JJJ ' 267J6JJJ 8 2 time! 8 1HJ )ay! III" Sol!tion Parti)ulars 3perating profit Less : ?nterest on loans Pro it 1e ore ta2 +ess (a# P ". .e Receiva"le! 8 H@6JJJ ' AG6JJJ # 16JJJB 8 Turnover ' Fi/e) A!!et! 8 H@6JJJ ' A1@6JJJ # H6JJJB 81J.=ro!! 0ro+it ratio There+ore co!t o+ . in 2".e inventory8 F time! Avera.De"tor! Turnover 8 re)it !ale! ' Avera.

.. (herefore Share Capital D &.. !2...A Sin)e there are no loans or fi)titious assets... 9 ". la+hs % Rs..". 2".".Current lia4ilitiesDG@6JJJ (herefore )urrent lia4ilities DG@6JJJ Current assets D2>0". "2....... Reser1es and Surplus D ". D 2.." # 8".. ".... H M D 2. SOL-TION EaA Current ratio E4A *or+ing."... > ' D &...... I3...'......"." (imes D!..%'A +... .. )apital D Current assets % Current lia4ilities Current assets D 2 Current lia4ilities D 2 (imes Current assets ...... (herefore Proprietary Fund D 0".A D P$( % Num4er of shares D Bar+et pri)e % 5PS E"....D!....Pro it a ter ta2 Num4er of e uity shares 5arnings per share Pri)e 5arnings Ratio D E"... .."." (herefore sto)+ !..2. 9 !....Current lia4ilities D2 Current lia4ilities .. !%'th Proprietary Fund D 0"..."....." (imes Current $ssets 9 Sto)+ % Current Lia4ilities 9 31erdraft D !. Statement of Proprietary Fund Sour)es Share Capital Reser1res and Surplus $ppli)ation Fi#ed $ssets Current $ssets 2..".D!.. ...... Rs. Proprietary Fund D &%'th of Proprietary Funds L 0".....2". &... E)A Gui)+ ratio D Gui)+ $ssets % Gui)+ lia4ilities D !.. Fi#ed $ssets D &..E!..-Sto)+ % 0". Capital employed D Proprietary fund D Fi#ed $ssets L*or+ing Capital Proprietary FundD Fi#ed $ssets L0"...2"........ Sto)+ 2.

loye" 1ro0rietary )u -s 8 Fi/e) assets 1 Worki ! 0.@ times 1.KJ6JJJ (here)ore a0ital Ratio o) .5 urrent lia"ilitie! .assets There+ore )i0e...ital 0.25 /i0e.5 (/i0e.5 * 56FJ6JJJ 1ro0rietary )u #a...assets 1 Cor&in.5 Fi/e) assets 1 1+2.000 $(1.5J6JJJ 2.".5 *Fi/e) assets 1 225000) " /i0e....25.. !.5 urrent lia"ilitie! " 2...25.000 1..5 (h &ui'k ratio urrent assets $ Sto'k % urrent lia"ilitie! .Less/ )urrent Lia4ilities 3thers S'%U$I'1 5 . (a Worki ! a0ital ) #urre t ratio 3thers 2an+ 31erdraft 8". a0ital em.. E0".:uity3 5re)ere 'e ..50 " 165@6JJJ 3... 0..Sto'k % KJ6JJJ .+0..assets 1 'urre t assets) #a..8 165@6JJJ 8 2.. &.000 26GJ6JJJ 26GJ6JJJ 16HJ6JJJ 2:1 162J6JJJ FJ6JJJ .ital 1 Reser4es a0ital 1 KJ6JJJ 26GJ6JJJ ...25 There+ore total assets Fi/e) Assets 1 urrent assets 165@6JJJ 1 262@6JJJ 1ro0rietary )u 0...:uity a0ital " 2 % 3 * 16HJ6JJJ 1re+erence a0ital " 1 % 3 * 16HJ6JJJ Statement o proprietar! "un#s *R!.000) 1ro0rietary ratio Si 'e there are o loan! an) )i'titious assets.assets " 33.urrent lia"ilitie! There+ore #urre t liabilities " 165@6JJJ ' 1. -0.50 * 0.@ #urre t assets " KJ6JJJ * 2.165@6JJJ 0.A !. " #urre t assets $ #urre t lia"ilitie! " #urre t assets % #urre t lia"ilitie! " urrent assets " 2.5 times 8 165@6JJJ 8 KJ6JJJ 2..50 a0ital " 16FH6G@J .".5 165@6JJJ 8 33...5 * +0.%an& ) OD (here)ore Sto'k 262@6JJJ .

000 KJ6JJJ 165@6JJJ 2.@J 5.JJJ 26GJ6JJJ S'%U$I'15 . Current ratio / Current $ssets % Current Lia4ilities (herefore Current $ssets D 2. Net *or+ing )apital D )urrent $ssets 9 Current Lia4ilities D 2.000 *KJ6JJJ- A00lication 26GJ.JJ 1.7thers Less : urrent Lia"ilitie! .Other! 165@6JJ 80.JJ @." (imes 4.JJ ' 1.JJ 7.I %ia0ilities Share a0ital $ Re!erve! *hLon." (imes Current Lia4ilities 9 Current Lia4ilities urrent Lia"ilitie! 8 F.000 5J6JJJ FJ6JJJ 162J6JJJ +0.%an& over)ra+t Q .25. term )e"t urrent Lia"ilitie! $otal *i*"#mt" 12.K.JJ .JJ 1J." Current Lia4ilities D 2.:uity a0ital 5re)ere 'e a0ital Reser4es 6 Net Fi/e) Assets urrent Assets $ Sto'k .%an& *1J.JJ .*"'+$otal #mt" 1J.@J 7.@ 8 7.JJ 6:":: #ssets Fi/e) A!!et! *+urrent A!!et! Stoc& *cDe"tor! *.Sour'es .JJ 6:":: 4or5ings a.JJ.

e.JJ A!!et! Fi/e) A!!et! *1urrent A!!et! Stoc& *hDe"tor! *e%an& *1J.@J Lon.Net 9orth 8 a0ital # Re!erve! 8 1 Time 1J. i.JJ 1.JJ 2@.JJ =ro!! 0ro+it 8 2JL o+ !ale! 8 o!t o+ .Stoc& ' urrent Lia"ilitie! 81J.JJ 1.@J Solution 3II 7ise %imited Balance Sheet .K.e !toc& 8 @ Time! o!t o+ .JJ .JJ .JJ ' HJL 8 2@..7 '12 8 @.e ollection 1erio) 8 2.ivenRe!erve! *aLon.JJ ' 2 8 1J.JJ. .JJ o!t o+ .JJ M 2.JJ Avera.oo)! !ol) 8 HJL o+ !ale! 8 2J.JJ Quic& Ratio 8 urrent A!!et! .JJ @.oo)! !ol) 8 7.JJ 7. term De"t 8 12.oo)! !ol) ' net +i/e) a!!et! 8 2 Time! Net Fi/e) A!!et!8 2J. ).JJ 1J.JJ *R!.JJ ' J.JJ 7.JJ 1J. There+ore urrent A!!et! 8 7. term De"t ' ca0ital $ re!erve! 8 G ' 2@ There+ore Lon.HJ Time! There+ore Net 9orth 8 1J.JJ-*1. 1@.@M7. 1J.JJ Stoc& turnover ratio 8 o!t o+ .#mo!nts in &s" lakhs< Lia"ilitie! Share a0ital *.7 month! There+ore De"tor! 8 2@.@ 8 1J.@J M G ' 2@ 8 5.oo)! !ol) ' avera.JJ 2@.c.JJ M 2.*"'+Total Ann.JJ There+ore Sale! 8 2J.JJ 8 2J. in la&h!7orkings *a. h.JJ M @ 8 2J.JJThere+ore Stoc&8 7.HJ 8 12.JJ Fi/e) A!!et! ' Net 9orth 8 J. +. term loan! *current Lia"ilitie! *>Total Amt.Re!erve! ' a0ital a0ital 8 1J la&h! There+ore Re!erve! 8 *".

*c.JJ *Sale! N =18 27.JJ'2J 8 1.@ Time! urrent Lia"ilitie! N %an& Over)ra+t *1J.JJ ' F 8 @.JJ There+ore %an& over)ra+t Sale! ' Net +i/e) a!!et! There+ore Net +i/e) a!!et! S'%U$I'1" .JJ'F.JJ 8 7. term loan There+ore Lon.JJ urrent A!!et! N urrent Lia"ilitie! 8 F.JJ F.+i. ca0ital Net 9or&in.JJ 1.JJ 8 5J.8 1.' *7.e Stoc& 8F Time! 27.JJ.@ 7.N F.8 1.JJ M 2.JJ urrent A!!et! ' urrent Lia"ilitie! 8 2.JJ M J.JJ 8 J.@ M 7.@ urrent Lia"ilitie! 2.@ time! 1. ca0ital urrent Ratio Net 9or&in.JJ 8 F.Net 9orth ' Lon.@ time! urrent A!!et! 8 2. term Loan Sale! ' Net 9orth There+ore Sale! Sale! ' De"tor! There+ore De"tor! =ro!! 1ro+it Ratio o!t o+ .III 8 8 7iser %imited Balance Sheet Lia"ilitie! Net 9orth *a- Amt F6K@6F@2 Fi/e) A!!et! A!!et! *"al.e Stoc& Net 9or&in.@ M 2J.JJ 2JL o+ Sale! 8 2JL M 5J.JJ N 7.@ urrent Lia"ilitie! .JJ ' 1.JJ ' 2 8 1@.urrent Lia"ilitie! 8 F.JJ 8 F time! 5J.JJ 8 Nil 8 2 Time! 5J.JJ 5J.@ *1. ca0ital urrent Lia"ilitie! 4ence urrent A!!et! Aci) Te!t Ratio 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 2J Time! 2J.5 Time! 2J.5 8 F.JJ o!t o+ =oo)! Sol) ' Avera.JJ N F. ca0ital ' Net 9orth Net 9or&in.JJ urrent A!!et! N Stoc&! -------------------------------------------.JJ N %an& Over)ra+t.oo)! Sol) Stoc& Eelocity There+ore Avera.- Amt 56GJ6JHF .@ 8 1J.JJ.

e ollection 0erio) There+ore De"tor! 8 1F6JJ6JJJ M F7 ' 5F@ *ha!h and Bank 8 C!rrent #ssets ( Stock ( De0tors 8 H67G65J@ .*"*e.JJ Fi/e) A!!et! 1@.JJ .JJ 7.26HJ.urrent Ratio urrent A!!et! ' urrent Lia"ilitie! urrent A!!et! 2.*h- 56@@6@@F 26HJ6@7H 261162J1 1261G65K1 *R!F6K@6F@2 26K261G7 @6216G5K 262K6@F@ 2.K time! H67G65J@ 8 8 8 56@@6@@F F7 )ay! 26HJ6@7H $otal Cor&in.Total Lia"ilitie! 8 G@L o+ Net 9orth 8 G@L M F6K@6F@2 *).1G- Lia"ilitie! Share a0ital Re!erve! $ Sur0lu! 12 L Term loan urrent Lia"ilitie! *I*m*i*"- *+*c*.56@@6@@F .FG 1J.H5 .17..There+ore Term Lia"ilitie!-De"t 8 *c.5 *".@7H 8 261162J1 S'%U$I'1" I= Sivaprakasam and Co" Balance Sheet Amt.JJ urrent A!!et! @J. 71.urrent Lia"ilitie! 8 72 L o+ Net 9orth 8 72L M F6K@6F@2 *c.JJ De"tor! Other! *1@.K M 26K261G7 *+.- Amt.1G J.Sale! ' Inventory 8 7.Sale! ' Net 9orth 8 2.5 time! Sale! 8 1F6JJ6JJJ There+ore Net 9orth 1F6JJ6JJJ ' 2.Avera.! 3 1261G65K 1 *a.JJ Stoc& @.@ time! Sale! 8 1F6JJ6JJJ There+ore Inventory 1F6JJ6JJJ ' 7..@ *. A!!et! @.Term lia"ilitie! urrent lia"ilitie! *)*"- 262K6@F@ 26K261G7 urrent A!!et! Stoc& De"tor! %an& Total *+*.

JJ 8 @J.JJ M 5J ' 5FJ 8 7.JJ 2J.Stoc& Turnover Ratio There+ore Sale! Fi/e) A!!et! Turnover Ratio There+ore Fi/e) A!!et! Avera.2 time! 71.JJ ' 1. Fi/e) o!t! .JJ K.+i.%IT *"al.JJ 8 8 urrent A!!et! N Stoc& ' urrent Lia"ilitie! 8 1 Time 8 8 8 8 8 8 Nil There+ore %an& over)ra+t *).JJ M 2'5 8 1J.$otal 7orkings *a.FG 5J )ay! Sale! M 5J ' 5FJ 8 @J.2 8 8 1.e ollection 1erio) There+ore De"tor! urrent A!!et! N Stoc& ' urrent Lia"ilitie! 8 I Time @ M 1J.1G Profit and %oss #cco!nt Sales +ess =aria4le Costs J 8.Aci) te!t Ratio > ":: Other A!!et! $otal *"al.JJ 1 l .*h- @J.JJ Turnover ' Fi/e) A!!et! 8 @J.JJ 81J.JJ 8 5 urrent Lia"ilitie! N urretn Lia"ilitite! 8 1J. Contri4ution +ess . +i.JJ ' 2 8 @. a0ital urrent Lia"ilitite! There+ore urrent A!!et! *".- 1H.urrent Ratio 4ence Net Cor&in.JJ 8 5'2 8 1@.urrent A!!et! ' Stoc& There+ore Stoc& *c.JJ 5J.55 > ":: 8 urrent A!!et! ' urrent Lia"ilitie! 8 5 Time! 8 urrent Lia"ilitie!8 5 urrent Lia"ilitie! 8 urrent A!!et! N urrent Lia"ilitie! 8 1J.JJ 8@ M 5 8 1@.JJ .

.To =ro!! 1ro+it *1J LTo .iven*c- Balance Sheet Lia"ilitie! Share a0ital *.JJ 8 2.JJ 8 @@.+i.There+ore Retaine) earnin.JJ 8 2J.Share a0ital *m.G@ 8 Net 9orth ' %oo& value 0er !hare 8 @JJJJ !hare! / R!.JJ 8 1@.2 / @.JJ Nil @.JJ Intere!t ' Intere!t Rate8 F.:uity Share! *I. Stoc& %y =ro!! 1ro+it "') Total Amt.Financial Levera./0en!e! *%al.2 11.JJ 8 @@.JJ @.JJ @JJJJ !hare! 8 @.Num"er o+ .JJJ H67@6@JJ 756JJJ 5J6JJJ G56JJJ 1articular! %y Sale! %y lo!in.JJ @J.! S'%U$I'1" = 1JL M @J.@.JJ 2.Total Lia"ilitie! uTotal Lia"ilitie! ' Net 9orth There+ore Net 9orth *&.%T 2.e .JJ ' 2.JJ ' 7J S!kan.Less: Intere!t .Amt 16HJ6JJJ .To Net 0ro+it Total *h#mt" 16J@6JJJ F6FG6@JJ G5.a + Co" Profit and %oss #cco!nt 1articular! To O0enin.AT *h. term loan *r.ivenRe!erve! $ Sur0lu! *56JJ6JJJ N #mt 26@J6JJJ @J6JJJ A!!et! Fi/e) A!!et! *.JJ ' 12L 8 Term lia"ilitie! # urrent Lia"ilitie! 8 @J.%T *1JL o+ !ate!Less : Ta/ .%IT ' .JJ F.G@ time! 8 2J.JJ . +i.JJ .lJ 8 2J. G65J6JJJ 161@6@JJ H67@6@JQ G56JJJ >3?::: *. Stoc& *)To 1urcha!e! *"al.%IT Lon.JJ # @.

J@6JJ J 7J )ay! HJ6JJJ J.162J6JJ J 2.@ time! 162J6JJ J HJ6JJJ 26JJ6JJ J 1.Cor&in.5 161@6@J J 161@6@J J 1. a0ital ' 1ro0rietary Fun) There+ore 1ro0rietary Fun) 8 Cor&in.F *h.De"tor! Eelocity There+ore lo!in. Stoc& HJ6JJJ .Net 1ro+it SOL-TION 6I urrent A!!et! . Stoc& *).1@6JJJF@6JJJ Total 3?@:?::: urrent A!!et! Stoc& *cDe"tor! *e%an& *26JJ6JJJ .@ urrent Lia"ilitie! 2.. Stoc& # 1J L 161@6@JJ' 11JL 8 8 *R!.*1.! 3 *a.Fi/e) A!!et! 8 1ro0rietary Fun) M J.Quic& Ratio There+ore lo!in. Stoc& There+ore O0enin.lo!in.*Total 1ro0rietary Fun)! 8 56JJ6JJJurrent lia"ilitie! %an& over)ra+t *.@ HJ6JJJ M 2. De"tor! 8 G65J6JJJ M 7J ' 5FJ *1Fi/e) A!!et! ' 1ro0rietary Fun) There+ore 8 Cor&in.F 8 56JJ6JJJ M J.5 time! 1.urrent Ratio There+ore 4ence urrent Lia"ilitie! urrent A!!et! *c.7 8 162J6JJJ ' J.7J 56JJ6JJ J 16HJ6JJ J 5J6JJJ 1JL o+ 1ro0rietary Fun)! 8 56JJ6JJJ M 1JL .@ urrent Lia"ilitie! . Stoc& urrent Lia"ilitie! .FJ J.lo!in. !toc& *e.iven1@6JJJ Other! *HJ6JJJ . a0ital ' J.16K@6@JJTotal 161@6@JJ HJ6JJJ 76@JJ 3?@:?::: Cor&in.5 M F@6JJJO0enin.urrent Lia"ilitie! 162J6JJJ ' 1.7 *.@ Quic& A!!et! ' Quic& Lia"ilitie! urrent A!!et! . a0ital *".%an& over)ra+t 26JJ6JJJ .lo!in.1@6JJJ 26JJ6JJJ .urrent Lia"ilitie! urrent A!!et! ' urrent Lia"ilitie! urrent A!!et! 8 2.

S!nrise %imited Profit + %oss #ppropriation #cco!nt Le!! 3 Le!! 3 Le!!3 1%IT *1JL o+ K6JJ6JJJDe"enture Intere!t 1%T Ta/ 1rovi!ion P @JL 1AT 1re+erence $ .:uity Divi)en) Tran!+erre) to %alance Sheet *iKJ6JJJ 1562JJ GF6HJJ 5H67JJ 5H67JJ 576JJJ 767JJ >- .

2@ (anu+acturin. Overhea)! 1JL J.*16FJ6JJJ # 7@6JJJ(aterial # La"our # (anu+acturin.F 8 O0enin. 56K@6JJJ 556G@J 16JJ6JJJ 5F6J@J $otal ?6A?@:: 1.Net "loc& o+ Fi/e) A!!et! *eo!t o+ =oo)! Sol) *+.:uity a0ital 17L 1re+erence a0ital Re!erve! $ Sur0lu! 1 $ L appropriation account =eneral Re!erve Secure) loan! .KJ Amt.e Amount in La&h! 7JL 5.KJ O++ice Overhea)! 1JL J.oo)! !ol) Avera.e Stoc& F6G@6JJJ'17.sis of sales 1articular! (aterial! 1ercenta.KJ *).Balance Sheet Lia"ilitie! Share a0ital .Amt.7 8 8 8 8 56K@6JJJ F6G@6JJJ 17.7@ 1%IT 1JL J. %alance # 1urcha!e! @6JJ6JJJ #16JJ6JJJ 8 F6JJ6JJJ 8 Sale! ' =ro!! Fi/e) A!!et! 8 1.o!t o+ +i/e) a!!et! 8 Fi/e) A!!et! Turnover Sale! 8 Percentage #nal.=ro!! F6JJ6JJJ Le!!3 De0reciation 26J@6JJJ urrent A!!et! Stoc& *+De"tor! *. Overhea)! 56FJ6JJJ # 262@6JJJ # KJ6JJJ o!t o+ . +i.! 3 *a. 26JJ6JJJ 16JJ6JJJ 767JJ 7J6JJJ 161J6JJJ G26JJJ 5H67JJ ?6A?@:: A!!et! Fi/e) A!!et! .e Stoc& =ro!! %loc& .De0reciation F6JJ6JJJ .a!h $ %an& *"al.@ Time! K6JJ6JJJ De0reciation @L J.@ M F6JJ6JJJ 8 La"our 2@L 2.12L De"enture! urrent Lia"ilitie! re)itor! *hTa/ 0rovi!ion $otal Cor&in.7 time! 7F6HG@ .Stoc& Turnover Avera.

# *1JL M 26JJ6JJJ- .FJ6JJJ 8 8 7F6HG@ 556G@J 16JJ6JJJ G2.JJJ 15. Stoc& lo!in. Stoc& *. Stoc&B ' 2 FJ6JJJ *2 M 7F6HG@ .2JJ 576JJJ De"tor! 8 1'Kth o+ !ale! 8 1'K M K6JJ6JJJ re)itor! 8 1'@th o+ (aterial co!t 8 1'@ M 56FJ6JJJ 8 *12L M FJ6JJJ.*h*i*>- AO0enin.e Stoc& O0enin.Avera.# *12L M @J6JJJDe"enture Intere!t 8 8 Divi)en) 0ai) -1re+ $ . Stoc& # lo!in..:uity 8 *17L M 16JJ6JJJ.