RATIO ANALYSIS FOR NIMIR INDUSTRIAL CHEMICALS LIMITED Ratio Analysis provides a combination of financial or operating data from

a company to provide a basis of comparison. Each ratio measures a unique relationship that may impact others.

  Liquidity ratio analysis for NIMIR: y Current ratio: current ratio of a company measures company's ability to pay short-term obligations. The current ratio for NIMIR has improved from the previous year 2006 1.06 in comparison to next year 2007 it increased to 1.07 which is good as the company is now cutting down their obligations more quickly. y Quick ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company. Here we see NIMIR quick ratio is decreasing in 2006 it was 0.83 and 2007 it was 0.76 as a lot of stock is held by different customers in normal course of business.

Profitability ratios are used to assess a business' ability to generate earnings as compared to expenses over a specified time period.   Profitability ratio analysis for NIMIR: y Gross profit margin: gross profit margin for NIMIR has improved to 0.02 in 2007 from 0.03 the previous year 2006 as sales have increased by 58% in 2007 due to commissioning of new soap noodle plant. y Operating profit margin: operating margin is used to measure a company's pricing strategy and operating efficiency. For NIMIR we observed negative profit margin for both years 2006-2007 to be -0.11 and -0.04 respectively due to payment employee benefits (gratuity scheme) and increase in utility prices have adversely effected the production cost. Net profit margin: this particular ratio is measured to check how much out of every dollar of sales a company actually keeps in earnings.Net profit margin for the respective company in 2006 is-0.19 and 2007 is -0.14 is because of the payment of the financial cost hired this also tells us that the performance of organization is well even though the figure is negative, as they have given out dividends too in the a respective years.



Return on total assets: An indicator of how profitable a company is relative to its total assets. Company¶s asset turnover is also observed to be negative -0.49 for 2006 and-0.19 for 2007. This indicates that the company is not performing well as they have

y installed new plants this year and have faced some initial operating problems but they do have a brighter outlook for the future. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. . Return on equity: The amount of net income returned as a percentage of shareholders equity. once all plans comes under action NIMIR expects to have a major turn around. Return on equity for NIMIR looks to be in the negative zone too this is due to increase in utility prices but actions have taken to reduce these cost by installation of generators and other required machinery items.

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