A PROJECT REPORT

ON
“ WORKING CAPITAL MANAGEMENT
ANALYSIS
OF
SAKTHI SUGARS LIMITED ”

SUBMITTED TO
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR
IN PARTIAL FULFILMENT OF
THE REQUIREMENT FOR THE
MANAGEMENT PROGRAMME (M.B.A)

Submitted by
SURENDRA KUMAR SWAIN
ENROLMENT NO.740667033

Institute of Management & Bio-Technology,

Kunjakanta, Dhenkanal-759001.
 CERTIFICATE

This is to certify that Mr. Surendra Kumar Swain, a Management

Programme student of Punjab Technical University, Jalandhar
(Punjab) has completed his Project Report on “ WORKING CAPITAL
MANAGEMENT ANALAYSIS OF SAKTHI SUGARS LIMITED “ under
my guidance and supervision.

To the best of my knowledge and belief, the work is original

piece of project study.

(SATYAPRIYA MISHRA)
MANAGER(ACCTS.)
 DECLARATION

I, Sri Surendra Kumar Swain, a Management Programme

student of Punjab Technical University, Jalandhar (Punjab) do hereby
declare that the present piece of project work entitled “ WORKING
CAPITAL MANAGEMENT ANALYSIS OF SAKTHI SUGARS LIMITED
“ being presented for the partial fulfillment of the Management
Programme (M.B.A) Course of Punjab Technical University, Jalandhar
is developed by me and is of original piece of study.

I sincerely declare that this piece of work is my original work and

it is not submitted in any other institution including this Institute as
published at any time before.

All the data included in the Project Report was collected

personally. I also wish to try my best not to expose the valuable
documents I have collected for my study.

Surendra Kumar Swain,

Enrolment No.740667033
 ACKNOWLEDGEMENT

I express my sincere, honest and grateful acknowledgement

to Dr.S.K.Salwan, Vice Chancellor and Dr.R.P.Singh, Dean,
Distance Education cell of Punjab Technical University,
Jalandhar for giving me an opportunity to study the
Management Programme (M.B.A) at Punjab Technical
University, Jalandhar.

I also express my heartiest thanks to Sri Jitendra Prasad Nanda,

Project Coordinator of the Institute of Management & Bio-Technology,
Dhenkanal (LCC) and other staff members for their most useful
guidance and suggestions during my tenure of study here.

Above all, I have special gratitude and thanks to Sri

Ramachandran Ramadurai, Vice President (Orissa Operations) and the
Management of Sakthi Sugars Limited. for giving me the opportunity
and encouragement for higher study and to complete the programme
successfully.

I am also thankful to Sri Satyapriya Mishra, Deputy

Manager(Accts.) for extending all cooperation and technical guidance
needed to complete the Project Report successfully.

My special thanks goes to Mr.S.N.Samantaray, A.G.M(P & C),

Mr.V.S.Naidu, A.G.M(Process), Mr.Y.Jaisankar,Manager Engineering,
Mr.H.K.Behera, Manager-HRD, Mr.Manoranjan Dash, Dy. Manager
(Electrical), Mr. Bhabani Prasad Rath, Dy. Manager(Process),
Mr.Sangram Keshari Mohanty, Asst. Manager(Process), all Chemists,
all Engineers and EDP staff for their cooperation.

And I also thankful to all of my colleagues in Sakthi Sugars for

their excellent cooperation in preparation of this project report.

And last but not least my heartfelt thanks goes to my family

members for their moral support and encouragement to complete the
course, with a lot of patience and inspiration for future.

Surendra Kumar Swain,

Enrolment No.740667033
 CONTENTS

1. Introduction
a) Objectives of the study
b) Scope
c) Importance
d) Techniques
e) Methodology
f) Limitation of the study
g) Company Profile

2. Theoretical Approach to working capital management

a) Concept of working capital
b) Type of working capital
c) factors determining working capital
d) Financing of working capital

3. Working Capital Manager Analysis in Sakthi Sugars Limited.

a) Receivable Management
b) Inventory Management
c) Cash Management

4. financial Analysis
a) Estimate Working Capital
b) Ratio Analysis of Sakthi Sugars Ltd.

5. FINDINGS & SUGGESTIONS

6. BIBLIOGRAPHY
 CHAPTER - I

INTRODUCTION

a) Objectives of the study

b) Scope
c) Importance
d) Techniques
e) Methodology
f) Limitation of the study
g) Company Profile
 CHAPTER - I
INTRODUCTION

A) OBJECTIVES OF THE STUDY :

The main purpose of the preparation of this project report at Sakthi
Sugars Limited was to have an overall idea about the organization
functions the various factors that are operating in the organization and
thereby gain on the spot training and experience regarding the working
capital functions carried by finance department. This was done to have the
practical knowledge on financial functions to prepare me as a future
manager.

The Major Objectives are :

i) To the efficiency of the Working Capital Management of SSL by

studying the different elements of working capital,

ii) To study the measure of improvement in efficiency of Working

Capital Management of Sakthi Sugars Limited.

B) SCOPE OF THE STUDY :

To study and know about the organizational structure along with their day
to day functions, I had cover the following departments at SSL, Dhenkanal
unit.

1) Finance department
2) Cane department
3) Stores department
C) IMPORTANCE OF UNDER STUDY :

There are five prime factors seen in an industrial organization. They are
described as the five M’s. They are

1) Men
2) Money
3) Material
4) Machinery
5) Management

From among these five M’s the foremost one is financial management.
Finance department is more valuable than other resources in an
organization. Their proper management can help an organization
tremendously to maximize the utilization. I learnt a lot of about Working
Capital Management in my theory but without practical knowledge in the
field, the theory has no value. Scope in order to get experience in the field
I have gone to the understudy programme about “ WORKING CAPITAL
MANAGEMENT “ at Sakthi Sugars Limited, Dhenkanal unit, which helped
me in acquiring more practical knowledge.

D) TECHNIQUES OF THE STUDY :

The information are collected during my six week understudy programme

at Sakthi Sugars Limited, from official documents, records, manuals of
different departments and section of the organization and also through
observation of functioning and discussion about it with officers of various
departments of the organization.
E) METHODOLOGY :

the information were collected during my understudy programme for

about a period of 45 days from official documents, records, company rules
of Sakthi Sugars Ltd, Dhenkanal unit, materials from different department
and sections of the organization and also through observation and
discussion with the officers of various departments of the organization.

F) LIMITATIONS OF THE STUDY :

The whole study primarily centers on the secondary data collected from
annual reports, officials records of SSL and other Financial Management
Book. Therefore, the limitations associated with secondary data present in
the study

G) COMPANY PROFILE :

Sakthi Sugars Limited, a South based Group of Companies is today one

of the largest producers of white crystal sugar in the country. Together
with the new projects in the State of Orissa, its member companies
account for a capacity of over 16,000 Tonnes of cane crush per day.
Sugar also accounts for a large share of the Group’s turnover. The
member companies are standards of technical efficiency and the highest
mill efficiency.

This unit is the only sugar factory in India which could produce superfine
grade of sugar corresponding to international standard measured at
grade 35 and below by International Commission for Uniform Method of
Sugar Analysis (ICUMSA). This has been possible through constant R &
D efforts, excellent rapport with the farming community, adoption of
appropriate technology in cane cultivation and processing techniques. The
registered area under sugar cane cultivation progressively increased from
3500 hectares to over 15,000 hectares and the per hectare productivity
increased from 70 to 100 tons.

Mega Irrigation Projects have been established with the efforts of Sakthi
Sugars Ltd and the area under sugar cane cultivation is continuously
increasing.

Name : Sakthi Sugars Limited,

1. Year of incorporation : 1961

2(a) Registered Office : Sakthi nagar-638315,

Bhavani Taluk,
Erode District,
Tamilnadu State(India)

(b) Corporate Office : 180, Race Course Road,

Coimbatore-641018,
Tamilnadu State(India)

3. Units :
a) Sugar Units Sakthi nagar, BHavani Taluk,
Erode District, Tamilnadu

Jothi nagar,Padamathur BO,

Sivaganga Dist,Tamilnadu

Kannarirupa Mathur,
Modakuruchi, Erode District,
Tamilnadu State

Haripur village, Korian Post,

Dhenkanal District(Orissa)
b) Distillery units Sakthi nagar, Bhavani Taluk,
Erode District,Tamilnadu.

Haripur Village, Korian Post,

Dhenkanal District(Orissa)

c) Soya units Marchinaickenpalayam,

Pollachi, Tamilnadu State

Harpur Village, Korian Post,

Dhenkanal District(Orissa).

d) Pollution Control Unit Sakthi nagar, Bhavani Taluk,

Erode District, Tamilnadu

e) Co-generation plant Sakthi nagar, Bhavani Taluk,

Erode District, Tamilnadu

Jothi nagar,Padamathur BO,

Sivaganga Dist,Tamilnadu

Modakuruchi ,
Erode Dist, Tamilnadu

f) Coke Bottling Plant Jothi nagar,Padamathur BO,

Sivaganga Dist,Tamilnadu

g) Ethanol Plant Sakthi nagar, Bhavani Taluk,

Erode District, Tamilnadu

4. Year of Establishment and Capacities :

Name of the unit Year Estd. Capacity Remarks
Sakthi nagar sugar 1964 8000 TCD Last expansion
unit from 6000 TCD in
2005
Sivaganga Sugar 1989 4000TCD Expanded from
unit 2500 TCD in May,
2000
Dhenkanal sugar 1994 2500 TCD
unit
Modakuruchi Sugar 2008 2500 TCD
unit
Sakthi nagar 1972 27500 KLPA Expanded from
Distillery unit 18000 KL in 1993
Dhenkanal Distillery 1996 10000 KLPA
unit
Pollachi Soya unit 1990 90000 TPA
Dhenkanal Soya 2008 72000 TPA
unit
Sakthi nagar Co- 2003 32 MW + 20 MW
gen plant
Sivaganga Co-gen 30
plant
Modakuruchi Co- 2008 30
gen plant
Coke bottling plant 600 BPM
at Sivaganga
Ethanol (Anhydrous 140 Lakh Liters
Alcohol) plant

5. BRIEF HISTORY OF THE COMPANY :

a) The Company was incorporated on 12.05.1961 and the certificate
of commencement of Business was obtained on 11.05.1962. The sugar
factory at Sakthi agar with a capacity of 1250 Tonnes crush per day (TCD)
commenced production in the year 1964. The capacity of this unit was
increased in stages to 4000 TCD. The capacity of this unit has been
increased to 6000 TCD to accommodate increased quantum of sugar
cane available at the command area of this factory. The performance of
the sugar unit has been efficient all along from its inception and achieved
its ever-best performance in the year 1999-2000 by crushing 16.79 lakh
tones of cane. Cane crushing in this unit has crossed one Crore tones
mark in 1983, the maximum quantity crushed by a single factory in 19
years. This unit has bagged national efficiency award consecutively for
three years since the inception of the award. This award has been given to
this unit for achieving minimum loss in sugar recovery.

b) In the year 1972, the Distillery unit was established at the precincts
of Sakthi nagar Sugar unit with a capacity to produce 9000Kilo Liters of
Industrial Alcohol per Annum. The capacity of this unit was raised to
18000 Kilo Liters per Annum in the year 1982. The capacity of this unit
has been further increased to 275000 Kilo Liters per annum in December,
1992.

c) In the year 1988, the Company has installed an Effluent Treatment

Plant (ETP) at a cost of over Rs.2.25 crores for treating the distillery
effluent. For this purpose, the Company had entered into technical
collaboration agreements with Society General Pour Les techniques
Nouvelles (SGN), France and with B.S Smogless, S.P.A, Italy. The unique
feature of this unit is that it will not only treat the effluent water and
achieve pollution free environment but also generate Bio-gas. This Bio-
gas can be used as a fuel substitute for raising steam in the Boilers used
in generation of electricity as well as in distillation. There is no
indigenously developed technology in use today to match this and the
Company has by the collaboration agreement, acquired the right to sell
this technology to other distilleries in South India. The company has
successfully executed 22 contracts by putting up similar effluent treatment
plants for other distilleries, besides executing an Effluent Treatment Plant
at Thailand.

d) In the year 1988-89 a second sugar unit with licensed and

installed capacity of 2500 TCD has been established in Mathur
Kannariruppu Village in Sivaganga Taluk of Tamilnadu State and the Unit
commenced operations in March, 1989. This unit has adopted latest
available technology for sugar manufacturing. The capacity of this unit has
been increased from 2500 TCD to 4000 TCD in May, 2000 to
accommodate increased quantum of sugar cane available at the factory’s
command area.

e) The Soya Division was amalgamated with this Company with effect
from 01.04.1993 pursuant to sanction of the Scheme of Amalgamation of
Sakthi Soyas Limited by the Honourable High court of Madras vide its
order dated 04.01.1995. The installed capacity of Soya Division is 90,000
MT per annum.

f) The Company’s Sugar unit with a crushing capacity of 2500 TCD at

Haripur Village, in Dhenkanal District of Orissa State started
commercial production in January, 1994.

g) In the year 1995, the has installed a Distillery unit with 10,000 KL
of Industrial Alcohol per annum capacity at the precincts of Dhenkanal
sugar unit to take advantage of captive molasses available from the sugar
unit in Orissa.

h) The Company has set up a 32 Mw Co-generation plant at the

premises of its Sakthinagar sugar unit at a cost of Rs.78.00 Crores. M/s
Tamilnadu News Print and Papers Ltd(TNPL) with whom the company has
a barter arrangement have invested Rs.40.00 Crores towards the cost of
Boilers and its accessories required for the Project. The cost of one Boiler
viz. Rs.20.00 crores has to be reimbursed by the company over a period
of 9 years with interest at 12% p.a. The total exportable surplus power will
work out to 144 Million units per year valued at about Rs.48.00 crores and
the entire energy is intended to be sold to TNEB. In view of huge gap in
the demand and supply of power in the State of Tamilnadu, no difficulty is
envisaged in evacuation of power to TNEB. Since the company’s outlay
on the Project works out to only 38.00 Crores (excluding TNPL’s
investment of Rs.40.00 crores, the pay back period is very short. The
Project was commissioned for commercial production during December,
2003.

i) The company has also set up a soft drink bottling unit at its
Sivaganga sugar unit at a cost of about Rs.17.00 Crores. M’s Hindustan
Coca-Cola Beverages (P) Ltd. to whom the company has been supplying
quality sugar for the past four years, have required the company for
bottling the carbonated soft drinks on a contractual basis, which is ready
for commissioning. In the sugar cle-control scenario, taking up of the
proposed venture will not only facilitate off-take of sizeable quantum of
sugar produced by the company but also add to the revenue of the
company from margins on bottling operations.

j) Pursuant to the Government’s decision to permit mixing of Ethanol

with petrol as fuel, the company has created facilities at its Sakthi nagar
Distillery unit for manufacturer of Ethanol. Presently, the distillery unit
produces about 260 lakh liters of Alcohol and the average realization on
the same is Rs.13.00 per liter. The company proposes to produce about
140 lakh liters of Ethanol per annum and with the realization of about
Rs.19.50 per liter there will be additional contribution of about Rs.11.00
crores per annum to the company. The oil companies have already placed
indents on the company for supply of Ethanol and the same will
commence shortly.

6. FEATURES :

a) Sakthinagar Sugar Unit :

► More than 36,000 acres of sugar cane available around the factory
supported by river and canal irrigation. Pioneering efforts put in by
the cane department has increased the yield per hectare to more
than 125 MT.

► Crushing in the unit more than eight months every year.

► The unit has capacity to produce export quality sugar
corresponding to less than 35 ICUMSA (International Commission
for Uniform Method of Sugar Analysis, a measure to determine the
quality and colour of sugar, adopted by European markets) and has
exported more than 12000 MT.

► Optimal recovery of sugar from sugar cane, i.e. more than 10%.

► Secured National Efficiency Award for many years.

► Research and Development Wing of this unit responsible for

developing new sugar rich pest resistant varieties of sugar cane.

► Has Mechanical Harvesters imported from Austoft Industries of

Australia.

► Exported about 13.5 Lakh quintals of sugar for the period from
October, 2000 to October, 2001 and bagged the National Award for
exemplary export performance.

b) Sivaganga Sugar Unit :

► More than 18,000 acres of sugar cane available within 40 km of the

factory supported by river, pond and well irrigation.

c) Soya Unit :

► Has solvent extraction and oil refining plants imported from M/s
Extra Ktionstechnik, West Germany, who are world renowned
supplier of such machinery.
► Has Seed processing and edible flour making plant imported from
M/s Buhler Brothers, Switzerland, who are again the world class
suppliers of such machinery.

► Has facility to produce edible grade Soya flour and refined edible
grade crude sunflower oil.

► Concentrates on production and sale of value added products like

Texturised vegetable Protein (TVP Chunks and refining of edible
grade crude sunflower oil.

► The unit has sophisticated facilities for manufacturer of edible grade

Soya flour. Once it is a separate entity and has a separate identity,
its features and capabilities can be put through web site, which can
attract the attention of intending overseas customers instantly.

► With the announcement of FDA in United States that intake of Soya

flour up to 25 grams per day will help to avoid cancer and heart
diseases, there is an expectation that there will be huge demand
for Soya flour manufactured out of Non-Genetically Modified Soya
Seeds which is available in plenty only in Asia.

d) Pollution Control Unit :

► Technology for treatment of effluents and recovery of methane rich

Bio-gas has been imbibed from SGN (now Proserpol) of France.
The recovery of Bio-gas is through anaerobic digestion of organic
contents in the effluent in a digester erected for this purpose.

► Effluent Treatment-Cum-Bio-gas Plants (ETP) erected and

commissioned in 22 distilleries in India so far. Besides a contract
 for erection and commissioning of Effluent Treatment Plant at
Thailand has also been executed.

► Methane rich Bio-gas recovered by installation of ETPs ensures

saving of Furnace Oil to the extent of 8000 to 10000 liters per day.

7. PERFORMANCE :

Performance of the various Divisions of the company for the year ended
30th June, 2005 and that of last accounting year are furnished hereunder.

a) Sugar Division :

Units Sakthi nagar Sivaganga Dhenkanal Modakuruchi

Current Last Current Last Current Last Current Last
Year Year Year Year Year Year Year Year
Cane
crushed(MT)
Recovery(%)

Sugar prodn(Qtl)

R.S.processed(MT)

Sugar prodn(Qtl)

Sale value(INR)

b) Distillery Division :
Units Sakthinagar unit Dhenkanal unit
Current year Last year Current year Last year
Alcohol produced
Sale value(INR)

c) Soya Unit
Units Pollachi Unit Dhenkanal unit
Current year Last year Current year Last year
Soya products
produced(MT)
Sale value(INR)
Indigenous
Export

d) Co-gen Plants :

Units Sakthi nagar Sivaganga Modakuruchi

Current Last Current Last Current Last
Year Year Year Year Year Year
Units generated

Units exported to
TNEB
Sale value(INR)

8. CAPITAL STRUCTURE :
The company’s share capital is as under :
As at 30.06.2005 As at 30.06.2004
Authorised capital 50000000 Equity
shares of Rs.10 each 5000000
Redeemable Cumulative Preference
shares of Rs.100 each
Total
Issued Capital
Equity capital
Preference capital
Total
Paid-up Capital
Equity Capital
Preference capital
Total
Share Application Money

During the year 2004-05, the company has issued and allotted 3641000
equity shares of Rs.10.00 each at a price of Rs.50.00 per aggregating to
Rs.18.21 crores to Foreign Institutional Investors. With this allotment, the
equity capital has gone up to Rs.31.37 crores.
 The Company has further proposed to issue 31.32 lakh equity shares of
Rs.10.00 each at a price of Rs.50.00 per share on preferential allotment
basis to one of the Promoters and to a strategic investor. This process has
already been initiated and it is expected to complete the issue by middle of
April, 2005.

PERFORMANCE AT A GLANCE
PERFORMANCE FOR MARCH, 2006

Particulars Mar.,06 Mar.,06 Mar.,06 Mar.,06

(3 months) (3 months) (3 months) (3 months)
Cane crushed (Lakh MT)
Raw sugar processed(Lakh
MT)
Sugar production(Lakh MT)
Total Income(Rs.in crores)
EBIDtA
Interest
Depreciation
Profit for the period
Prior year adjustment
Net profit
EPS (In Rupees)

SEGMENT –WISE TURN OVER

Particulars FY-02 FY-03 FY-04 FY-05

Sugar
Alcohol
Power
Soya
Auto Component
 SEGMENT –WISE EBIDTA

Particulars FY-02 FY-03 FY-04 FY-05

Sugar
Alcohol
Power
Soya
Auto Component

5%
18%

34%
4%

39%
 This paper makes an attempt to examine the efficiency of
working capital management of Sakthi Sugars Limited. During 2002-03
to 2005-06 for measuring the efficiency of Working Capital
Management. Using industry norm as target efficiency level of the
individual firms, this paper also tests the speed of achieving that target
level of efficiency by the company during the period of study.

INTRODUCTION :

Working Capital Management is a significant part of business decision. It

is a major concern to the financial manager in as much as
accomplishment of value maximization depends essentially on the
Working Capital decision.

Working Capital Management is concerned with the current assets, the

current liabilities and the matter relationship that exist between them. The
term current assets refers to those asset which in the ordinary course of
business and concerted into cash within one year, without under going a
dimension in value and without disrupting the operations of the firm. The
current assets are cash marketable secretary, accounts receivable and
inventory.

Current liabilities are those which are to be paid within a year out of the
current assets or earnings of the concern. The current liabilities are
accounts payable, bills payable, Bank over draft and outstanding
expenses etc. The current assets and liabilities should be managed in
such a way that a satisfactory level of working capital is maintained. A firm
which fairs to maintain satisfactory level of working capital may be forced
in to bankruptcy.
The current assets should always be large enough to cover Ns current
liabilities in order to interaction between current assets and current
liabilities are the main theme of working capital Management.

NEED FOR WORKING CAPITAL:

The basic objectives of financial management are to maximize

shareholder’s wealth. These objectives can be achieved when the
company earns sufficient profits. The amount at profits largely depends
upon the magnitude of sales. But sales do not convert in to cash instantly.
There is time day between the sale of goods and receipt of cash, working
capital is required to purchase raw materials, pay wages and other
expenses in order to sustain sales activity the time lay. The time gap
between the sales of goods and relation of cash is operating cycle.

The term operating cycle refers to the length of time necessary to

complete the following cycle of events.

a) Conversion of cash in to raw materials,

b) Conversion of raw materials into finished goods,
c) Conversion of finished goods into receivable,
d) Conversion of receivable into cash.

OPERATING CYCLE:
Accounts Cash
Receivable Raw materials

Work in progress
Debtors

Sales
Finished Goods
 In the figure only accounts receivable phase is cash inflow phase. Others
are cash out flow phase. But as the inflow phase comes at the end, the
company requires cash to operate through the all other phases.

The speed with which the working capital completes one cycle,
determines the requirement of working capital, the shorter the period of
cycle, the lesser the requirement of working capital. Each of the above
operating cycle stages is expressed in terms of number of days of
relevant information and requires a level of enactment to support it. The
sum total of these stage wise processes will be total amount of working
capital of the firm. The following formula may be used to express the
frame work for the operating cycle.

t = (r-c) + w + f + b
Where t the total period of 0.C in no. of days.
r = the no. of days of raw material and stores consumption requirement held in
raw materials and stores invest.
c = the No. of days of purchase in trade creditors.
w = the no. of days of cost of production held.
f - the no. of days of cost of sales held in finished goods inventory.
b = the no. of days of sale in book debt.
The computation may be made as under :-

Average inventory of raw materials and stores

r = ------------------------------------------------------------
Average per day consumption of raw material

Average trade creditors

c = ---------------------------------------
average credit purchase per day

Average work in progress

w = ---------------------------------------------
Average cost of production per day

Average inventory of finished goods

f = ------------------------------------------------
Average cost of sales per day

average book debt

b = ------------------------------
Average sales per day

The operation cycle method of determining working capital requirements gives

only an average figure. To identify these, continuous short detailed short-term
detailed forecasting and building exercises are necessary.

A) Concept of Working Capital :

There are two concepts of Working Capital.
a) Gross Working Capital – It refers to the Total Current asets.

b) Net Working Capital

 Current Ratio

8
7
6
5
Ratio

4 Ratio
3
2
1
0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Liquid Ratio

2004-2005
2005-2006
2006-2007
2007-2008
 Internal measure ratio

1600
1400
1200
1000
Days 800
600 Ratio
400
200
0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Cash ratio

3.5
3
2.5
2
Amount
1.5 Amount
1
0.5
0
2004-2005 2005-2006 2006-2007 2007-2008
Year
 Net working capital ratio

1.4
1.2
1
0.8
Amount
0.6 Amount
0.4
0.2
0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Debtors turnover ratio

2004-2005
2005-2006
2006-2007
2007-2008
 Average collection period

35
30
25
20
Days
15 Days
10
5
0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Debt ratio

2.5

1.5
Time Times
1

0.5

0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Debt Equity Ratio

2004-2005
2005-2006
2006-2007
2007-2008
 Internal coverage ratio

50
40
30
20
Time
10
0
Time
Time
2006-2007
2007-2008
year

Working capital turn over ratio

2.5
2
1.5
Time
1 Time
0.5
0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Gross profit ratio

35
30
25
20
percentage percentage
15
10
5
0
2004-2005 2005-2006 2006-2007 2007-2008
Year
 Net profit

2006-2007
2007-2008

Operating profit ratio

2004-2005
2005-2006
2006-2007
2007-2008
 Operating ratio

120
100
percentage

80
60 percentage
40
20
0
2004-2005 2005-2006 2006-2007 2007-2008
Year

Return on asset

2004-2005
2005-2006
2006-2007
2007-2008
Return on owners equity

2004-2005
2005-2006
2006-2007
2007-2008