INTERPRETATION OF RATIO

LIQUIDITY RATIO
CURRENT RATIO
YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 CURSRENT ASSET 450752525.9 568627699.8 753029551.5 685444128.5 817980132.8 CURRENT LIABILITY 330854949 364193797 367984219 330154120 498649299 CURRENT RATIO 1.36 1.56 2.05 2.08 1.64

INTERPRETATION:As the rule of thumb for current ratio we considered 2:1 as a satisfactory for business. Because GNA is a manufacturing concern so it considered 1:1 as a satisfactory for the business So we can say that GNA had satisfactory liquidity position in all the years from 2005 to 2010.

GRAPHICAL REPRESENTATION

QUICK RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10

QUICK ASSETS 199067692.9 280660700.8 397080028.5 342226782.5 395707117.8

CURRENT LIABILITY 330854949 364193797 367984219 330154120 498649299

QUICK RATIO 0.60 0.77 1.08 1.04 0.79

INTERPRETATION:Quick assets are those assets which can be converted into cash within a short period of time, say to six months. So, here the sundry debtors which are with the long period does not include in the quick assets. For quick assets we follow the standard 1:1. So we analyze that in years 2007-08 and 2008-09 company has satisfactory quick ratio in comparison of 2005-06, 2006-07 and 200910.

GRAPHICAL REPRESENTATION

ABSOLUTE LIQUID RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 ABSOLUTE LIQUID ASSETS 2754602 45235672 66902614 39966211 19519969 CURRENT LIABILITY 330854949 364193797 367984219 330154120 498649299 Absolute liquid ratio 0.01 0.12 0.18 0.12 0.04

INTERPRETATION:The current assets which are ready in the form of cash are considered as absolute liquid assets. Here, the cash and bank balance and the interest on fixed assets are absolute liquid assets. As we find that in both the year we get absolute liquid ratio below the standard that is not satisfactory for the concern.

GRAPHICAL REPRESENTATION

EQUITY / PROPRIETARY RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 SHARE HOLDERS FUND 152343688 242722324 309214845 299071463 310317964 TOTAL ASSETS 585831873.1 31.85 762198599.3 26.73 1156894105 24.11 1240276966 24.85 1248881753 PROPRIETARY RATIO 26.00

INTERPRETATION:The proprietary ratio establishes the relationship between shareholders funds to total assets. It determines the long-term solvency of the firm. This ratio indicates the extent to which the assets of the company can be lost without affecting the interest of the company. Here with the help of proprietary ratio we find that in the year 2006-07 company had a satisfactory solvency position in comparison of rest of the years.

GRAPHICAL REPRESENTATION

WORKING CAPITAL TURNOVER RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 COST OF GOOD SOLD 861000464.5 1247978804 1461820586 1049433591 968799527.1 WORKING CAPITAL 119897576.9 204433902.8 385045332.5 355290008.5 319330833.8 Working capital turnover ratio 7.18 6.10 3.80 2.95 3.03

INTERPRETATION:As working capital turnover ratio shows how much efficiently a concern can utilize its working capital. So here we find that company utilizes its working capital in 2005-06 in comparison of rest of the year.

GRAPHICAL REPRESENTATION

FIXED ASSETS TURNOVER RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 NET SALE 1061274394 1538538675 1776890432 1285598648 1206775571 NET FIXED ASSETS 275658231.2 367488631.6 581572707.1 694710892.7 739274854.7 Fixed assets turnover ratio 3.85 4.19 3.06 1.85 1.63

INTERPRETATION:Fixed assets are used in the business for producing the goods to be sold. This ratio shows the firms ability in generating sales from all financial resources committed to total assets. The ratio indicates the account of one rupee investment in fixed assets. It is especially important for a manufacturing firm that uses a lot of plant and equipment in its operations to calculate its fixed asset turnover ratio. Here we find in year 2006-07 we got a more fixed assets turnover ratio in comparison of rest of the year.

GRAPHICAL REPRESENTATION

CURRENT ASSETS TO FIXED ASSETS RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 CURRENT ASSETS 310143641.9 394679967.8 575291397.5 545536073.5 509576898.8 FIXED ASSETS 275658231.2 367488631.6 581572707.1 694710892.7 739274854.7 Current Assets to Fixed Assets Ratio 1.13 1.07 0.99 0.79 0.69

INTERPRETATION:Fixed assets are used in the business for producing the goods to be sold. This ratio shows the firms ability in generating sales from all financial resources committed to total assets. The ratio indicates the account of one rupee investment in fixed assets. Here we get a good ratio in2005-06 in comparison of other years so in this year firm in more able to generating sale in comparison of other years.

GRAPHICAL REPRESENTATION

NET PROFIT RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 Net profit after tax 15405224.73 55893312.78 69969127.61 -1700254.92 11246500.86 NET SALE 1061274394 1538538675 1776890432 1285598648 1206775571 Net profit ratio 0.01 0.04 0.04 0.00 0.01

INTERPRETATION:The net profit ratio is the overall measure of the firms ability to turn each rupee of income from business in net profit. If the net margin is inadequate the firm will fail to achieve return on shareholders funds Here we find that there was a good net profit ratio in 20006-07 and 2007-08. In comparison of another years.

GRAPHICAL REPRESENTATION

RETURN ON ASSETS
YEAR 2005-06 2006-07 2007-08 2008-09 2009-10

Net profit 15405224.73 55893312.78 69969127.61 -1700254.92 11246500.86

Total assets 585831873.1 762198599.3 1156894105 1240276966 1248881753

Return on assets 2.63 7.33 6.05 -0.14 0.90

INTERPRETATION:This is the ratio between net profit and total assets. The ratio indicates the return on total assets in the form of profits. Here we find that there is no return on assets due to the loss in 2008-09 and it is a good return on assets in 2006-07 in comparison of other years.

GRAPHICAL REPRESENTATION

RESERVES & SURPLUS TO CAPITAL ESERVES & SURPLUS TO CAPITAL

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 RESERVES AND SURPLUS 132998188 183376824 249869345 121034963 132281464 CAPITAL 19345500 59345500 59345500 178036500 178036500 Reserves & surplus to capital 6.87 3.09 4.21 0.68 0.74

INTERPRETATION:The ratio is used to reveal the policy pursued by the company a very high ratio indicates a conservative dividend policy and vice-versa. Higher the ratio better will be the position We find that it is a good reserve and surplus ratio in 2005-06 and 6.87 in comparison of other years so we can say that the position of the company is better in 2005-06 in comparison of other years.

GRAPHICAL REPRESENTATION

EARNINGS PER SHARE

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 Net profit after tax 15405224.73 55893312.78 69969127.61 -1700254.92 11246500.86 Number of Equity shares 1934550 5934550 5934550 17803650 17803650 Earnings per share 7.96 9.42 11.79 -0.10 0.63

INTERPRETATION:Earnings per share ratio are used to find out the return that the shareholders earn from their shares. After charging depreciation and after payment of tax, the remaining amount will be distributed by all the shareholders. Here we see that GNA provide a good return in 2007-08 in comparison of other years.

GRAPHICAL REPRESENTATION

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OPERATION RATIO
YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 operating cost 1049275016 1502737840 1784207788 1365848046 1238212433 net sale 1061274394 1538538675 1776890432 1285598648 1206775571 Operation ratio 98.87 97.67 100.41 106.24 102.61

INTERPRETATION:The operating profit ratio is used to measure the relationship between net profits and sales of a firm. Depending on the concept, it will decide. Here business got a high ratio in 2008-09 in comparison of other years.

GRAPHICAL REPRESENTATION

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PRICE EARNINGS RATIO

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 market price per share 78.74890181 40.89987008 52.10417723 16.79832298 17.43001935 earnings per share 103.5248143 48.96072511 53.09077277 13.26497974 13.36669974 Price Earnings Ratio 0.76 0.84 0.98 1.27 1.30

INTERPRETATION:The ratio is calculated to make an estimate of application in the value of share of a company. This ratio shows that in 2008-09 and 2009-10 market price of the shares is comparatively high in comparison of other years.

GRAPHICAL REPRESENTATION

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Return on shareholders investment

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 net profit 15405224.73 55893312.78 69969127.61 -1700254.92 11246500.86 shareholder funds 152343688 242722324 309214845 299071463 310317964 Return on shareholder s investment 0.10 0.21 0.22 -0.03 0.04

INTERPRETATION:This is the ratio between net profits and shareholders funds. The ratio is generally calculated as percentage multiplying with 100. In 2008-09 there is no return on investment due to the loss in that year.

GRAPHICAL REPRESENTATION

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CONCLUSION & RECOMMENDATIONS

1) After the analysis of Financial Statements, the company status is in growing stage , last year company earn profit but before that it incurred loss. 2) The company profit is comparatively less in current year in comparison of previous years. 3) The company is utilizing the fixed assets, which majorly help to the growth of the organization. The company should maintain that perfectly. 4) The company fixed deposits are raised from the inception,

The companys overall position is at a good position. Particularly the current years position is well due to raise in the profit level from the last year position. It is better for the organization to diversify the funds to different sectors in the present market scenario.

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