fund

TABLE NO.21
Year Gross profit
(in Rs)
Net Sales
(in Rs)
Ratio
(%)
20080! 16694148 89236186 18.7
200!10 19804473 100842845 19.6
201011 14348211 86661383 16.6
201112 4659839 23819842 19.6
20121" 14400843 73083064 19.7
SO#R$E% ANN#AL RE&ORTS
The higher gross profit ratio indicates that the firm has higher profitability.
ross profit ratio of the company is 19! on an a"erage# $hich is a good sign for the
company. This reflects that the company is efficiently prod%cing its prod%cts by
red%cing the cost of goods sold.
'(G#RE 11
2.).".2 NET &RO'(T RAT(O%
52
&et profit margin 'or profit margin# net margin# ret%rn on re"en%e( is a ratio of
profitability calc%lated as after)ta* net income 'net profits( di"ided by sales 're"en%e(.
&et profit margin is displayed as a percentage. +t sho$s the amo%nt of each sales
dollar left o"er after all e*penses ha"e been paid.
&et profit margin is a ,ey ratio of profitability. +t is "ery %sef%l $hen
comparing companies in similar ind%stries. - higher net profit margin means that a
company is more efficient at con"erting sales into act%al profit.
&et .rofit /atio 0 '&et .rofit 1 &et 2ales( 3 100
TABLE NO.22
Year Net &rofit
(in Rs)
Net Sales
(in Rs)
Ratio
(%)
20080! 1866688 89236186 2.1
200!10 2929294 100842845 2.9
201011 231892 86661383 0.3
201112 )5821137 23819842 )24.4
20121" 572825 73083064 0.8
SO#R$E% ANN#AL RE&ORTS
The net profit ratio of the company is lo$ and it is negati"e d%ring the
financial year 2011)12# beca%se 4%antity of e*ports is "ery meager. - lo$ net profit
ratio indicates that the company shall not be able to achie"e a satisfactory ret%rn on
in"estment.
'(G#RE 12
53
2.)."." O&ERAT(NG &RO'(T RAT(O%
5perating margin is a meas%rement of $hat proportion of a company6s
re"en%e is left o"er after paying for "ariable costs of prod%ction s%ch as $ages# ra$
materials# etc. - healthy operating margin is re4%ired for a company to be able to pay
for its fi*ed costs# s%ch as interest on debt.
-lso ,no$n as 7operating profit margin7 or 7net profit margin7.
5perating .rofit /atio 0 '5perating +ncome 1 &et 2ales( 3 100
TABLE NO.2"
54
Year EB(T
(in Rs)
Net Sales
(in Rs)
Ratio
(*al+e)
20080! 5923268 89236186 6.6
200!10 8167013 100842845 8.1
201011 3543213 86661383 4.1
201112 )3484114 23819842 )14.6
20121" 2733970 73083064 3.7
SO#R$E% ANN#AL RE&ORTS
5perating profit of the company is 7! and 8! d%ring the year 2008)09 and
2009)10# $hich is satisfactory to the company. 8ater the operating profit ratio
declined year by year # $hich is not good sign for the company $hich indicates that
the company is losing its ability to co"er the total operating e*penses.
'(G#RE 1"
55