Name of the project : Specific Project 1

Study of Ratio's made by SHREE

CEMENTS LTD. Through balance sheet
and Profit & Loss A/c.

Source Document : Newspaper cutting from The Economic

times dated 17th may 2017 of SHREE
CEMENTS Ltd. .

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, 2017.

Tools for analysis : Ratio Analysis

Period of Study : Year 2016-2017

Name of the project : Specific Project 1

Preparation of cash flow statement of
SHREE CEMENTS LTD. Through
balance sheet and Profit & Loss A/c.

Source Document : Newspaper cutting from The Economic

times dated 17th may 2017 of SHREE
CEMENTS Ltd. .

Objectives of the project : To prepare the cash flow statement of

the company and find the efficacy in
money management of the shree
cements for year ended Mar 31, 2017.

Tools for analysis : CASH FLOW STATEMENT

Period of Study : Year 2016-2017

 CURRENT RATIO

Year 2017
Current Assets = 3282.19
Current Liabilities = 1989.02

3282.19
Current Ratio =
1989.02

= 1.65

Current Ratio for the Year 2017 is 1.65

Year 2016
Current Assets = 1808.69
Current Liabilities = 1161.72

1808.72
Current Ratio =
1161.82

= 1.55

Current Ratio for the Year 2016 is 1.55

ANALYSIS
The current ratio is a financial ratio that measures whether or not a
firm has enough resources to pay its debts over the next 12 months. It
compares a firm's current assets to its current liabilities

Here current ratio has increased from 1.55 to 1.65

 LIQUID RATIO

LIQUID ASSETS
LIQUID RATIO =
CURRENT LIABILITIES

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

Year 2017
Liquid Assets = 3282.19-1314.50-8.05
Current Liabilities = 1989.02

1959.64
Liquid Ratio =
1989.02

= 0.98

Liquid Ratio for the Year 2017 is 0.98

Year 2016
Liquid Assets = 1808.69-815.19-11.04
Current Liabilities = 1161.72

982.46
Liquid Ratio =
1161.72

= 0.84

Liquid Ratio for the Year 2016 is 0.84

ANALYSIS
Liquid ratio measures the ability of a company to use its near
cash or quick assets to extinguish or retire its current
liabilities immediately. Quick assets include those current assets that
presumably can be quickly converted to cash at close to their book
values. 

Again Liquid ratio has also increased similar to current ratio i.e to 0.98
from 0.84
 NET PROFIT RATIO

NET PROFIT AFTER TAX

NET PROFIT RATIO =
NET SALES

Year 2017
Net Profit after Tax = 1339.08
Net Sales = 10004.23

1339.08
Net Profit Ratio =
10004.23

= 0.13

Net Profit Ratio for the Year 2017 is 0.13

Year 2016
Net Profit after Tax = 1143.10
Net Sales = 6862.64

1143.10
Net Profit Ratio =
6862.64

= 0.16

Net Profit Ratio for the Year 2016 is 0.16

ANALYSIS
Net Profit Ratio measure the company's use of its assets and control of
its expenses to generate an acceptable rate of return.

Here Net Profit Ratio has reduced in the current year. it has gone down
to 0.13 from 0.16.
 DEBT EQUITY RATIO

DEBT (Long Term Loans)

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

Year 2017
Debt = 518.74
Equity = 7698.00

518.74
D/E RATIO =
7698.00

= 0.06

Debt Equity Ratio for the Year 2017 is 0.06

Year 2016
Debt = 530.74
Equity = 6845.42

530.74
D/E RATIO =
6845.42

= 0.07

Debt Equity Ratio for the Year 2016 is 0.07

ANALYSIS
A high debt/equity ratio generally means that a company has been
aggressive in financing its growth with debt. This can result in volatile
earnings as a result of the additional interest expense.

Here Debt Equity ratio is also similar like Net profit ratio. it is 0.06 in
2017 and 0.07 in 2016
 TOTAL ASSETS TO DEBT RATIO

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

Year 2017
Total Assets = 11165.98
Long term debts = 518.74

11165.98
A/D RATIO =
518.74

= 21.52

Total Assets to debt ratio for the Year 2017 is 21.52

Year 2016
Total Assets = 9463.19
Long term debts = 530.74

9463.19
A/D RATIO =
530.74

= 17.83

Total Assets to debt ratio for the Year 2016 is 17.83

ANALYSIS

Here Total Assets to Debt Ratio has increased significantly from 17.83
to 21.52
 ASSETS TURNOVER RATIO (A.T. RATIO)

Net sales
A.T. RATIO =
Total Assets

Year 2017
Net Sales = 10004.23
Total Assets = 11165.98

10004.23
A.T. RATIO =
11165.98

= 0.89

Assets Turnover Ratio for the Year 2017 is 0.89

Year 2016
Net Sales = 6862.64
Total Assets = 9463.19

6862.64
A.T. RATIO =
9463.19

= 0.72

Assets Turnover Ratio for the Year 2016 is 0.72

ANALYSIS
The asset turnover ratio measures how efficiently a company is using
its assets. The turnover value varies by industry. It is calculated by
dividing net sales by average total assets.

Here assets turnover ratio has increased a bit to 0.89 from 0.72
 SEGMENT REVENUE
YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE
Cement
8924.11 8924.11  100 85.97 %
10380.00

Power
1455.89 1455.89  100 14.02 %
10380.00

Total 10380.00 100 %

YEAR 2016

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE
Cement
5604.49 5604.49  100 82.77 %
6771.07

Power
1166.58 1166.58  100 17.23 %
6771.07

Total 6771.07 100 %

 SEGMENT RESULTS

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

RESULTS
Cement
574.55 574.55  100 43.67 %
1315.46

Power
740.91 740.91  100 56.32 %
1315.46

Total 1315.46 100 %

YEAR 2016

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE
Cement
580.52 580.52  100 54.87 %
1057.97

Power
477.45 477.45  100 45.12 %
1057.97

Total 1057.97 100 %

 CAPITAL EMPLOYED
(Segment Assets - Segment Liabilities)

YEAR 2017

SEGMENT CAPITAL EMPLOYED CALCULATION PERCENTAGE

Cement
5657.43 - 1590.28 4067.15  100 91.26 %
= 4067.15 4456.53

Power
546.82 - 157.44 389.38  100 8.73 %
= 389.38 4456.53

Total 4456.53 100 %

YEAR 2016

SEGMENT CAPITAL EMPLOYED CALCULATION PERCENTAGE

Cement
5256.71 - 1296.20 3960.51  100 93.09 %
= 3960.51 4254.73

Power
417.80 - 123.58 294.22  100 6.91 %
= 294.22 4254.73

Total 4254.73 100 %

 RETURN ON INVESTMENT (ROI)

ROI = { Segment Result  Capital Employed }  100

YEAR 2017

SEGMENT ROI PERCENTAGE

Cement 574.55  100 14.12

4067.15

Power 740.91  100 190.27

389.38

YEAR 2016

SEGMENT ROI PERCENTAGE

Cement 580.52  100 14.65

3960.51

Power 477.45  100 162.27

294.22