You are on page 1of 13

Name of the project : Specific Project 1

Study of Ratio's made by Dabur


India LTD. Through balance sheet
and Profit & Loss A/c.

Source Document : Audited Profit and Loss A/c and


Balance Sheet uploaded by Dabur
India limited on their web site.

Objectives of the project : To find the efficiency and efficient


working of the company for the
bankers to provide loan or to find
the market value of the company
for year ended Mar 31, 2018.

Tools for analysis : Ratio Analysis

Period of Study : Year 2017-2018


CURRENT RATIO

Year 2018
Current Assets = 3439.75
Current Liabilities = 2434.44

3439.75
Current Ratio =
2434.44

= 1.41

Current Ratio for the Year 2018 is 1.41

Year 2017
Current Assets = 3114.47
Current Liabilities = 2224.54

3114.47
Current Ratio =
2224.54

= 1.40

Current Ratio for the Year 2017 is 1.40

ANALYSIS
The current ratio is a financial ratio that measures whether or
not a firm has enough resources to pay its debts over the next 12
months. It compares a firm's current assets to its current liabilities

Here current ratio has increased from 1.40 to 1.41


LIQUID RATIO

LIQUID ASSETS
LIQUID RATIO =
CURRENT LIABILITIES

Liquid Assets = C.A. - Stock - Prepaid Exp.

Year 2018
Liquid Assets = 3439.75-1256.18-34.88
Current Liabilities = 2434.44

2148.69
Liquid Ratio =
2434.44

= 0.88

Liquid Ratio for the Year 2018 is 0.88

Year 2017
Liquid Assets = 3114.47-1106.71-3.80
Current Liabilities = 2224.54

2003.96
Liquid Ratio =
2224.54

= 0.90

Liquid Ratio for the Year 2017 is 0.90

ANALYSIS
Liquid ratio measures the ability of a company to use its near
cash or quick assets to extinguish or retire its current
liabilities immediately. Quick assets include those current
assets that presumably can be quickly converted to cash at close
to their book values.

Liquid ratio has decreased to 0.88 from 0.90


NET PROFIT RATIO

NET PROFIT AFTER TAX


NET PROFIT RATIO =
NET SALES

Year 2018
Net Profit after Tax = 1357.74
Net Sales = 8053.52

1357.74
Net Profit Ratio =
8053.51

= 0.17

Net Profit Ratio for the Year 2018 is 0.17

Year 2017
Net Profit after Tax = 1280.31
Net Sales = 7999.79

1280.31
Net Profit Ratio =
7999.79

= 0.16

Net Profit Ratio for the Year 2017 is 0.16

ANALYSIS
Net Profit Ratio measure the company's use of its assets and
control of its expenses to generate an acceptable rate of return.

Here Net Profit Ratio is almost the same as that of the previous
years i.e. 0.17 to 0.16
DEBT EQUITY RATIO

DEBT (Long Term Loans)


DEBT EQUITY RATIO =
(D/E RATIO) EQUITY (Share Holder Fund)

Year 2018
Debt = 534.15
Equity = 5706.52

534.15
D/E RATIO =
5706.52

= 0.09

Debt Equity Ratio for the Year 2018 is 0.09

Year 2017
Debt = 635.54
Equity = 4847.39

635.54
D/E RATIO =
4847.39

= 0.13

Debt Equity Ratio for the Year 2017 is 0.13

ANALYSIS
A high debt/equity ratio generally means that a company has
been aggressive in financing its growth with debt. This can result
in volatile earnings as a result of the additional interest expense.

Here Debt Equity ratio has decreased to 0.09 in the year 2018 as
compared to previous years 0.13. Therefore company has
reduced in financing activities.
TOTAL ASSETS TO DEBT RATIO

TOTAL ASSETS
Total Assets to Debt Ratio=
(A/D RATIO) LONG TERM DEBTS

Year 2018
Total Assets = 8701.63
Long term debts = 534.14

8701.63
A/D RATIO =
534.14

= 16.29

Total Assets to debt ratio for the Year 2018 is 16.29

Year 2017
Total Assets = 7732.24
Long term debts = 635.54

7732.24
A/D RATIO =
635.54

= 12.16

Total Assets to debt ratio for the Year 2017 is 12.16

ANALYSIS

Here Total Assets to Debt Ratio has increased drastically to


16.29 in the year 2018 as compared to previous year’s 12.16.
ASSETS TURNOVER RATIO (A.T. RATIO)

Net sales
A.T. RATIO =
Total Assets

Year 2018
Net Sales = 8053.52
Total Assets = 8701.63

8053.52
A.T. RATIO =
8701.63

= 0.92

Assets Turnover Ratio for the Year 2018 is 0.92

Year 2017
Net Sales = 7999.79
Total Assets = 7732.24

7999.79
A.T. RATIO =
7732.24

= 1.03

Assets Turnover Ratio for the Year 2017 is 1.03

ANALYSIS
The asset turnover ratio measures how efficiently a company is
using its assets. The turnover value varies by industry. It is
calculated by dividing net sales by average total assets.

Here assets turnover ratio has decreased to 0.92 from 0.90 from
1.03
RETURN ON ASSETS RATIO (R.O.A. RATIO)

Net Income
R.O A. RATIO =
Total Assets

Year 2018
Net Income = 1357.74
Total Assets = 8701.63

1357.74
R.O.A. RATIO =
8701.63

= 0.15

Return On Assets Ratio for the Year 2018 is 0.15

Year 2017
Net Income = 1280.31
Total Assets = 7732.24

1280.31
R.O.A. RATIO =
7732.24

= 0.16

Assets Turnover Ratio for the Year 2017 is 0.16

ANALYSIS
The ROA is considered an overall measure of profitability. It
measures how much net income was generated for each 1 of
assets the company has. ROA is a combination of the profit
margin ratio and the asset turnover ratio. It can be calculated
separately by dividing net income by average total assets or by
multiplying the profit margin ratio times the asset turnover ratio.

Here ROA ratio has increase minutely to 0.22 in the current year
in comparison to previous years 0.21
STOCK TURNOVER RATIO

NET SALES
STOCK TURNOVER RATIO =
INVENTORIES

Year 2018
Net Sales = 8053.52
Inventories = 34.88

8053.52
Stock Turnover Ratio =
34.88

= 230.89

Stock Turnover Ratio for the Year 2018 is 230.89

Year 2017
Net Sales = 7999.79
Inventories = 3.80

7999.79
Stock Turnover Ratio =
3.80

= 2105.20

Stock Turnover Ratio for the Year 2017 is 2105.20

ANALYSIS
This ratio is used to measure whether the investment in stock in
trade is effectively utilized or not. It reveals the relationship
between sales and cost of goods sold or average inventory at
cost price or average inventory at selling price. Stock Turnover
Ratio indicates the number of times the stock has been turned
over in business during a particular period.

Here Stock Turnover Ratio is 230.89 in the current year as


compared to previous year's 2105.20
Name of the project : Specific Project 2
Study of contribution made by
Dabur India LTD. towards Profit ,
Revenue and capital employed by
different segments.

Source Document : Audited balance sheet uploaded


by Dabur India Limited on their
web site.

Objectives of the project : To study and analyze segment


wise contribution to sales, profits
capital employed. net profit and
return on capital employed of the
company for year ended Mar 31,
2018.

Tools for analysis : Comparative Statements


Segment Reporting

Period of Study : Year 2018-2019


SEGMENT REVENUE
YEAR 2018

SEGMENT SEGMENT CALCULATION PERCENTAGE


REVENUE

Consumer Care 6414.08 6414.08  100 82.78 %


7748.34

Food Business 1097.74 1097.74  100 14.17 %


7748.34

Retail Business 114.29 114.29  100 1.48 %


7748.34

Other Segments 97.03 97.03  100 1.25 %


7748.34

Unallocated 25.20 25.20  100 0.32 %


7748.34

Total 7748.34 100 %

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE


REVENUE

Consumer Care 6528.89 6328.89  100 82.17 %


7701.44

Food Business 1114.25 1114.25  100 14.47 %


7701.44

Retail Business 123.31 123.31  100 1.61 %


7701.44

Other Segments 113.62 113.62  100 1.48 %


7701.44

Unallocated 21.37 21.37  100 0.27 %


7701.44

Total 7701.44 100 %


SEGMENT RESULT
YEAR 2018

SEGMENT SEGMENT CALCULATION PERCENTAGE


RESULT

Consumer Care 1596.11 1596.11  100 90.68 %


1760.20

Food Business 158.14 158.14  100 8.99 %


1760.20

Retail Business 3.14 3.14  100 0.17 %


1760.20

Other Segments 2.81 2.81  100 0.16 %


1760.20

Total 1760.20 100 %

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE


RESULT

Consumer Care 1536.65 1536.65  100 90.69 %


1694.36

Food Business 154.23 154.23  100 9.10 %


1694.36

Retail Business (1.04) (1.04)  100 (0.06) %


1694.36

Other Segments 4.52 4.52  100 0.27 %


1694.36

Total 1694.36 100 %


CAPITAL EMPLOYED

YEAR 2018

SEGMENT CAPITAL CALCULATION PERCENTAGE


EMPLOYED
Consumer Care
2244.39 2244.39  100 39.15 %
5733.05
Food Business
334.44 334.44  100 5.83 %
5733.05
Retail Business
28.78 28.78  100 0.50 %
5733.05
Other Segments
21.62 21.62  100 0.38 %
5733.05
Unallocated
3103.82 3103.82  100 54.14 %
5733.05

Total 5733.05 100 %

YEAR 2017

SEGMENT CAPITAL CALCULATION PERCENTAGE


EMPLOYED
Consumer Care
2144.13 2144.13  100 44.00 %
4872.16
Food Business
457.71 457.71  100 9.40 %
4872.16
Retail Business
27.05 27.05  100 0.55 %
4872.16
Other Segments
31.09 31.09  100 0.64 %
4872.16
Unallocated
2212.36 2212.36  100 45.41 %
4872.16
4872.16
Total 100 %