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SUBMITTED BY:
Bhupender kumar sahu Babita kumari Bapi Deepak Aniket

Finance+marketing

MANUFACURING COMPANY
Tata Chemicals is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America.  The company’s industry essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products.  Tata Chemicals Limited is a global company with interests in businesses that focus on LIFE: Living, Industry and Farm Essentials.the creation of a plant that would raise a wealth of marine chemicals from the ocean, with the potential to touch human lives in many ways.  From these humble beginnings a market-leading international business has been created, with operations across four continents. Through its living essentials portfolio the company has positively impacted the lives of millions of Indians.

MEMBERS OF THE COMPANIES

tata ChemiCals’ mission
1) Leveraging science to deliver new and innovative
offerings. 2) Enhancing value to our customers.Delivering superior returns to our shareholders. 3) Leading in corporate sustainability. 4) Nurturing innovation, learning through diversity and team work amongst employees.

Company’s vision and values
      Serving society through science Integrity Safety Excellence Care Innovation

Company Turnover

Net Sales/Income from Operations

Calculation of ratio’s 1)
Current ratio = Current assets Current liabilities PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
2665.88 2187.94 1.647

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
2187.94 1511.82 1.447

CURRENT ASSETS CURRENT LIABILITIES

RATIO

Current ratio is increase by 0.2

2)

Quick Ratio : Quick assets

Quick ratio =

Current liabilities/(quick liabilities)

PARTICULARS

31STMARCH 2011 CURRENT YEAR(IN CRORES)
1969.58 1618.81 1.22

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
1576.75 1511.82 1.04

QUICK ASSETS QUICK LIABILITIES

RATIO

Quick ratio of Current year is increase by 0.18

3) Debt Equity ratio
Debt equity ratio = long-term debts Shareholders fundS PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
2975.94 4740.68 0.62

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
2946.51 4282.96 0.68

Long-term debts Shareholder’s funds

RATIO

Debt equity ratio of current year has decreased by 0.06

4) Proprietary Ratio
Proprietary ratio = proprietor’s funds Total funds/assets PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
4740.68 4593.51 1.03

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
4282.96 4018.03 1.06

Proprietor’s funds Total funds

RATIO

Proprietary ratio of current year has decreased by 0.03

5) Debt to total capital ratio
Debt to total capital ratio =long- term debt Shareholder’s funds + long- term debt PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
2975.94 7716.92 0.38

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
2946.51 7229.47 0.40

Long-term debt Shareholder’s funds + longterm debt

RATIO

DEBT EQUITY RATIO of current year has deceased by 0.02

6) Gross Margin or Gross Profit Ratio
Gross profit margin = gross profit NET SALES
31STMARCH 2011 CURRENT YEAR(IN CRORES)
558.70 6225.27 8.97

x 100

PARTICULARS

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
588.13 5412.45

Gross profit Net sales

RATIO

GROSS MARGIN RATIO of current year has decreased by 1.90

7) Net profit margin
Net profit margin = net profit after interest and tax x 100 Net sales 31STMARCH 2011 CURRENT YEAR(IN CRORES)
408.49 6352.14 6.43

PARTICULARS

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
434.78 5512.73 7.88

PAT Net sales

RATIO

NET PROFIT RATIO of current year has decreased by 1.45

8) Operating profit margin
Operating profit margin = net profit before interest and tax x 100 Net sales PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
558.70 6225.27 8.97

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
588.13 5412.45 10.87

EBIT Net sales

RATIO

OPERATING PROFIT MARGIN RATIO of current year has decreased by 1.90

9) Return on capital employed
Return on capital employed = net profit after taxes plus interest x 100 Capital employed 31STMARCH 2011 CURRENT YEAR(IN CRORES)
408.49. 7716.62 7.24

PARTICULARS

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
434.78 7229.47 8.13

PAT Capital employed

RATIO

Return on capital employed of current year has decreased by 0.89

10) return on shareholder’s equity
Return on total shareholder’s equity = net profits after taxes x 100 Total shareholders equity PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
408.49 4740.68

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
434.78 4282.96

PAT Total shareholder’s equity

RATIO

8.61

10.51

RETURN ON SHAREHOLDER’S EQUITY RATIO of current year has decreased by 1.90

11) Earnings per share =
net profit after tax – preference dividend Number of equity shares 31STMARCH 2011 CURRENT YEAR(IN CRORES)
16.32

PARTICULARS

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
18.38

PAT-preference dividend No. of equity share

RATIO

12) Inventory turnover
Inventory turnover ratio = sales 31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
5512.73 611.19

Closing inventory PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
6352.14 696.30

Sales Invientory

RATIO

9.12

9.01

INVENTORY TURNOVER RATIO of current year has increased by 0.11

13) Debtors turnover
Debtors turnover ratio = Credit sales Debtor PARTICULARS 31STMARCH 2011 CURRENT YEAR(IN CRORES)
6352.14 731.72 8.68

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
5512.73 581.60 9.47

Credit sales Debtor

RATIO

DEBTOR’S TURNOVER RATIO or current year has decreased by 0.79

14) Average collection Period
Average collection period = Months/days in a year Debtors turnover 31STMARCH 2011 CURRENT YEAR(IN CRORES) 31STMARCH 2010 PREVIOUS YEAR(IN CRORES)

PARTICULARS

Days in a year Debtors turnover

RATIO

360 8.68 41.47

360 9.47 38.01

AVERAGE COLLECTION PERIO of current year has increase by 3.46

15) Creditor turnover
Creditors turnover ratio = credit purchases creditors 31STMARCH 2011 CURRENT YEAR(IN CRORES)
1308.92 580.99 2.25

PARTICULARS

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
702.86 564.91 1.24

Credit purchases creditors

RATIO

CREDITOR’S TURNOVER RATIO of current year has increase by 1.01

16) Average credit period
Average credit period = months/days in a year Creditors turnover ratio PARTICULARS 31STMARCH 2011 31STMARCH 2010

CURRENT YEAR(IN CRORES)
Days in a year Creditors turnover ratio 360 2.25 160

PREVIOUS YEAR(IN CRORES)
360 1.24 290

RATIO

AVERAGE CREDIT PERIOD of current year better than to previous year by 130

17) Current Assets Turnover Ratio
Current assets turnover ratio = sales Current assets 31STMARCH 2011 CURRENT YEAR(IN CRORES)
6352.14 2665.88 2.38

PARTICULARS

31STMARCH 2010 PREVIOUS YEAR(IN CRORES)
5512.73 2187.94 2.51

Sales Current assets

RATIO

CURRENT ASSETS TURNOVER RATIO of current year has decreased by 0.13

18) PARTICULARS 31STMARCH 2011 31STMARCH 2010

CURRENT YEAR(IN CRORES)

PREVIOUS YEAR(IN CRORES)

RATIO

CONCLUSION