` C. B. S. E.

LIST OF CONTENTS

1. INTRODUCTION
2. COMPANY PROFILE
3. SPECIFIC PROJECT (RATIO ANALYSIS)
a. CURRENT RATIO
b. LIQUID RATIO
c. NET PROFIT RATIO
d. DEBT EQUITY RATIO
e. TOTAL ASSETS TO DEBT RATIO
f. ASSETS TURNOVER RATIO (A.T. RATIO)
g. RETURN ON ASSETS RATIO (R.O.A. RATIO)
h. STOCK TURNOVER RATIO
 COMPANY PROFILE

TYPE : Public
FOUNDED : 1979
HEADQUARTERS : Kolkatta, West Bengal
CHAIRMAN : Benu Gopal Bangur
INDUSTRY : Building Materials
PRODUCTS : Cement
EMPLOYEES : 6,185
WEBSITE : www.shreecement.com
OPERATING INCOME : ` 2,225 crore
NET INCOME : ` 1,544 crore
TOTAL ASSETS : ` 19,944 crore
EQUITY : ` 13,133 crore
INTRODUCTION
Shree Cement Ltd is one of India's premier cement makers. The
company's manufacturing operations are spread over North and
East India across six states. The company has a consolidated
cement production capacity of 44.4 million tonnes per annum(MTPA)
and a power generation capacity of 742 MW. The company is an
energy conscious & environment friendly business organization.
They have three brands under their portfolio namely Shree Ultra
Jung Rodhak Cement Bangur Cement and Rockstrong Cement. Their
manufacturing units are located at Beawar Ras Khushkhera
Suratgarh and Jobner (Jaipur) in Rajasthan Laksar (Roorkee) in
Uttarakhand Aurangabad in Bihar Panipat in Haryana Baloda Bazar
in Chhattisgarh and Bulandshahr in Uttar Pradesh. The company is
headquartered in Kolkata India. Shree Cement Ltd was incorporated
in the year 1979.
Name of the project : Specific Project 1

Study of Ratio's made by M/s Cadila

Healthcare Ltd. Through Balance sheet
and Profit & Loss A/c.

Source Document : Audited Profit and Loss A/c and Balance

Sheet uploaded by M/s Cadila
Healthcare Ltd. 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, 2021.

Tools for analysis : Ratio Analysis

Period of Study : Year 2020-2021

 CURRENT RATIO

CURRENT ASSETS
CURRENT RATIO =
CURRENT LIABILITIES

CURRENT CURRENT CURRENT

ASSETS LIABILITIES RATIO
YEAR 2021
YEAR 2020

Current Ratio for the Year 2021 is

Current Ratio for the Year 2020 is

ANALYSIS

The current ratio is a liquidity and efficiency ratio that measures a firm’s
ability to pay off its short-term liabilities with its current assets. The
current ratio is an important measure of liquidity because short-term
liabilities are due within the next year.

Here current ratio has increased to 2.21 from 1.96

 LIQUID RATIO

LIQUID ASSETS
LIQUID RATIO =
CURRENT LIABILITIES

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

LIQUID CURRENT LIQUID

ASSETS LIABILITIES RATIO
YEAR 2021
YEAR 2020

Liquid Ratio for the Year 2021 is

Liquid Ratio for the Year 2020 is

ANALYSIS
Liquidity ratios analyze the ability of a company to pay off both its
current liabilities as they become due as well as their long-term liabilities
as they become current. In other words, these ratios show the cash
levels of a company and the ability to turn other assets into cash to pay
off liabilities and other current obligations.

Here Liquid ratio has also increased similar to current ratio i.e. to 1.74
from 1.53
 NET PROFIT RATIO

NET PROFIT AFTER TAX

NET PROFIT RATIO =
NET SALES

NET PROFIT NET SALES NET PROFIT

AFTER TAX RATIO
YEAR 2021
YEAR 2020

Net Profit Ratio for the Year 2021 is

Net Profit Ratio for the Year 2020 is

ANALYSIS
The Net profit ratio, also called the return on sales ratio or gross profit
ratio, is a profitability ratio that measures the amount of net income
earned with each dollar of sales generated by comparing the net
income and net sales of a company. In other words, the profit margin
ratio shows what percentage of sales are left over after all expenses are
paid by the business.

Here Net Profit Ratio has increased to 0.16 from 0.11

 DEBT EQUITY RATIO

DEBT (Long Term Loans)

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

DEBT EQUITY DEBT EQUITY

RATIO
YEAR 2021
YEAR 2020

Debt Equity Ratio for the Year 2021 is

Debt Equity Ratio for the Year 2020 is

ANALYSIS
The debt to equity ratio is a financial, liquidity ratio that compares a
company’s total debt to total equity. The debt to equity ratio shows the
percentage of company financing that comes from creditors and
investors. A higher debt to equity ratio indicates that more creditor
financing (bank loans) is used than investor financing (shareholders).

Here Debt Equity ratio has decreased to 0.17 as compared to previous

years 0.20
 TOTAL ASSETS TO DEBT RATIO

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

TOTAL DEBTS TOTAL ASSETS TO

ASSETS DEBT RATIO
YEAR 2021
YEAR 2020

Total Assets to debt ratio for the Year 2021 is

Total Assets to debt ratio for the Year 2020 is

ANALYSIS

The Assets to debt ratio is a leverage ratio that measures the amount of
total assets that are financed by creditors instead of investors. In other
words, it shows what percentage of assets is funded by borrowing
compared with the percentage of resources that are funded by the
investors.

Here Total Assets to Debt Ratio has increased significantly from 7.41 in
the year 2020 to 8.07 in year 2021
 ASSETS TURNOVER RATIO (A.T. RATIO)

Net sales
A.T. RATIO =
Total Assets

NET SALES TOTAL ASSETS TURNOVER

ASSETS RATIO
YEAR 2021
YEAR 2020

Assets Turnover Ratio for the Year 2021 is

Assets Turnover Ratio for the Year 2020 is

ANALYSIS
The asset turnover ratio is an efficiency ratio that measures a
company’s ability to generate sales from its assets by comparing net
sales with average total assets. In other words, this ratio shows how
efficiently a company can use its assets to generate sales.

The total asset turnover ratio calculates net sales as a percentage of

assets to show how many sales are generated from each dollar of
company assets. For instance, a ratio of .5 means that each dollar of
assets generates 50 cents of sales.

Here assets turnover ratio has decreased minutely to 0.64 in the year
2021 as compared to previous years 0.65
 RETURN ON ASSETS RATIO (R.O.A. RATIO)

Net Income
R.O A. RATIO =
Total Assets

NET INCOME TOTAL RETURN ON

ASSETS ASSETS RATIO
YEAR 2021
YEAR 2020

Return on Assets Ratio for the Year 2021 is

Return on Assets Ratio for the Year 2020 is

ANALYSIS
The return on assets ratio, often called the return on total assets, is a
profitability ratio that measures the net income produced by total assets
during a period by comparing net income to the average total assets. In
other words, the return on assets ratio or ROA measures how efficiently
a company can manage its assets to produce profits during a period.

Here ROA ratio has increased minutely to 0.10 in the current year in
comparison to previous years 0.07
 STOCK TURNOVER RATIO

NET SALES
STOCK TURNOVER RATIO =
INVENTORIES

NET SALES INVENTORIES STOCK TURNOVER

RATIO
YEAR 2021
YEAR 2020

Stock Turnover Ratio for the Year 2021 is

Stock Turnover Ratio for the Year 2020 is

ANALYSIS
The Stock turnover ratio is an efficiency ratio that shows how effectively
inventory is managed by comparing cost of goods sold with average
inventory for a period. This measures how many times average
inventory is “turned” or sold during a period. In other words, it measures
how many times a company sold its total average inventory dollar
amount during the year. A company with $1,000 of average inventory
and sales of $10,000 effectively sold its 10 times over.

Here Stock Turnover Ratio is 8.12 in the current year as

compared to previous year's 7.67