RATIO ANALYSIS OF THE COMPANY

MAR MAR MAR MAR MAR  

BALANCE SHEET OF ASSOCIATED ALCOHOL 20 19 18 17 16
AND BREWERIES (in Rs. Cr.)

  12 12 12 12 12  
months months months months months

EQUITIES AND LIABILITIES  

SHAREHOLDER'S FUNDS  

Equity Share Capital 18.08 18.08 18.08 18.08 18.08  

TOTAL SHARE CAPITAL 18.08 18.08 18.08 18.08 18.08  

Reserves and Surplus 177.19 131.08 102.69 78.88 62.82  

TOTAL RESERVES AND SURPLUS 177.19 131.08 102.69 78.88 62.82  

TOTAL SHAREHOLDERS FUNDS 195.27 149.16 120.77 96.95 80.90  

NON-CURRENT LIABILITIES  

Long Term Borrowings 4.68 7.53 3.26 8.17 18.08  

Deferred Tax Liabilities [Net] 6.40 8.75 7.94 9.55 10.79  

Other Long Term Liabilities 1.85 0.08 0.08 0.08 0.00  

Long Term Provisions 1.15 0.66 0.00 0.00 0.00  

TOTAL NON-CURRENT LIABILITIES 14.07 17.02 11.28 17.79 28.87  

CURRENT LIABILITIES  

Short Term Borrowings 1.14 14.75 11.24 16.22 14.64  

Trade Payables 36.49 30.57 19.58 16.79 24.32  

Other Current Liabilities 26.53 32.79 37.29 20.64 16.07  

Short Term Provisions 0.03 0.02 0.77 0.82 10.28  

TOTAL CURRENT LIABILITIES 64.19 78.13 68.87 54.48 65.31  

TOTAL CAPITAL AND LIABILITIES 273.53 244.31 200.92 169.22 175.08  

ASSETS  

NON-CURRENT ASSETS  

Tangible Assets 106.96 116.29 79.58 85.07 91.90  

Intangible Assets 0.13 0.11 0.30 0.90 0.72  

Capital Work-In-Progress 11.19 1.93 22.71 4.82 1.56  

Other Assets 0.00 0.00 0.00 0.00 0.00  

FIXED ASSETS 120.73 118.33 102.59 90.79 94.18  

Non-Current Investments 2.19 3.08 2.68 2.35 2.00  

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00  

Long Term Loans And Advances 1.13 0.98 1.19 0.87 3.01  

Other Non-Current Assets 5.91 6.89 7.16 8.53 0.00  

TOTAL NON-CURRENT ASSETS 129.97 129.29 113.61 102.55 99.19  

CURRENT ASSETS  

Current Investments 0.00 0.00 0.00 0.00 0.00  

Inventories 57.35 55.92 38.07 28.56 28.82  

Trade Receivables 38.97 30.71 18.89 17.52 11.61  

Cash And Cash Equivalents 21.92 5.41 4.22 3.57 7.06  

Short Term Loans And Advances 21.27 16.35 20.67 11.04 21.38  

OtherCurrentAssets 4.04 6.63 5.45 5.99 7.02  

TOTAL CURRENT ASSETS 143.56 115.02 87.31 66.67 75.89  

TOTAL ASSETS 273.53 244.31 200.92 169.22 175.08  

OTHER ADDITIONAL INFORMATION  

CONTINGENT LIABILITIES, COMMITMENTS  

Contingent Liabilities 33.93 54.37 54.53 52.16 101.61  

CIF VALUE OF IMPORTS  

Raw Materials 0.00 0.00 0.00 0.00 0.00  

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00  

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00  

Capital Goods 0.00 0.00 0.00 0.00 0.00  

EXPENDITURE IN FOREIGN EXCHANGE  

Expenditure In Foreign Currency 0.00 0.78 0.56 0.88 0.11  

REMITTANCES IN FOREIGN CURRENCIES FOR  

DIVIDENDS

Dividend Remittance In Foreign Currency -- -- -- -- --  

EARNINGS IN FOREIGN EXCHANGE  

FOB Value Of Goods -- -- -- -- --  

Other Earnings -- -- -- -- --  
BONUS DETAILS  

Bonus Equity Share Capital 10.68 10.68 10.68 10.68 10.68  

NON-CURRENT INVESTMENTS  

Non-Current Investments Quoted Market Value -- -- -- -- --  

Non-Current Investments Unquoted Book Value 2.19 3.08 2.68 2.35 2.00  

CURRENT INVESTMENTS  

Current Investments Quoted Market Value -- -- -- -- --  

Current Investments Unquoted Book Value -- -- -- -- --

CURRENT RATIO OF YEAR 2015-2020

 CURRENT RATIO :- Current Assets/ Current Liabilities (2016)

Current Assets:- Rs 75.89

Current Liabilities: - Rs 65.31

= Current Assets/ Current Liabilities

= 75.89/65.31

= 1.16:1

The ideal Current Ratio is 2:1, and Companies current ratio is 1.16:1. Which is less than
ideal ratio.

 CURRENT RATIO :- Current Assets/ Current Liabilities (2017)

Current Assets: - Rs 66.67

Current Liabilities: - Rs 54.48

= Current Assets/ Current Liabilities

 = 66.67/54.48

= 1.22:1

The ideal Current Ratio is 2:1, and Companies current ratio is 1.22:1. Which is less than
ideal ratio.

 CURRENT RATIO :- Current Assets/ Current Liabilities (2018)

Current Assets: - Rs 87.31

Current Liabilities: - Rs 68.87

= Current Assets/ Current Liabilities

= 87.31/68.87

= 1.27:1

The ideal Current Ratio is 2:1, and Companies current ratio is 1.27:1. Which is less than
ideal ratio.

 CURRENT RATIO :- Current Assets/ Current Liabilities (2019)

Current Assets: - Rs 115.02

Current Liabilities: - Rs 78.13

= Current Assets/ Current Liabilities

= 115.02/78.13

= 1.47:1

The ideal Current Ratio is 2:1, and Companies current ratio is 1.47:1. Which is less than
ideal ratio.

 CURRENT RATIO :- Current Assets/ Current Liabilities (2020)

Current Assets: - Rs 143.56

Current Liabilities: - Rs 64.16

 = Current Assets/ Current Liabilities

= 143.56/64.16

= 2.24:1

The ideal Current Ratio is 2:1, and Companies current ratio is 2.24:1. Which is more than
ideal ratio.

The ideal ratio of current ratio is 2:1 and Companies ratio is 1.16 in 2016, 1.22 in 2017,
1.27 in 2018, 1.47 in 2019 and 2.44 in 2020. Current ratio of the company is increasing
per year. In 2016-2019 ratio is less than ideal ratio it means companies liabilities is more
than assets which is not good but in 2020 the ratio is 2.24 which is more than ideal ratio
and its good for company. Overall companies current ratio is good, companies is going
good and its good for the company and it also means company is healthy.

QUICK RATIO OF YEAR 2015-2020

 QUICK RATIO:- Current Assets- Inventory- Prepaid Expenses/ Current

Assets(2016)

Current Assets= 75.89-28.82

Liquid Assets = Rs 47.07

Current Liability= Rs 65.31

QUICK RATIO= 47.07/65.31

= 0.72:1

The ideal Quick Ratio is 1:1, and Companies Quick ratio is 0.72:1. Which is less than
ideal ratio.

 QUICK RATIO:- Current Assets- Inventory- Prepaid Expenses/ Current

Assets(2017)

Current Assets= 66.67-28.56

Liquid Assets = Rs 38.11

Current Liability= Rs 54.48

QUICK RATIO= 38.11/54.48

= 0.70:1

The ideal Quick Ratio is 1:1, and Companies Quick ratio is 0.70:1. Which is less than
ideal ratio.

 QUICK RATIO:- Current Assets- Inventory- Prepaid Expenses/ Current

Assets(2018)

Current Assets= 87.31-38.07

Liquid Assets = Rs 49.24

Current Liability= Rs 68.87

QUICK RATIO= 49.24/68.87

= 0.71:1

The ideal Quick Ratio is 1:1, and Companies Quick ratio is 0.71:1. Which is less than
ideal ratio.
  QUICK RATIO:- Current Assets- Inventory- Prepaid Expenses/ Current
Assets(2019)

Current Assets= 115.02-55.92

Liquid Assets = Rs 59.1

Current Liability= Rs 78.13

QUICK RATIO= 59.1/78.13

= 0.76:1

The ideal Quick Ratio is 1:1, and Companies Quick ratio is 0.76:1. Which is less than
ideal ratio.

 QUICK RATIO:- Current Assets- Inventory- Prepaid Expenses/ Current

Assets(2020)

Current Assets= 143.56- 57.35

Liquid Assets = Rs 86.21

Current Liability= Rs 64.16

QUICK RATIO= 86.21/64.16

= 1.34:1

The ideal Quick Ratio is 1:1, and Companies Quick ratio is 1.34:1. Which is more than
ideal ratio.
The ideal ratio of Quick ratio is 1:1 and Companies ratio is 0.72 in 2016, 0.70 in 2017,
0.71 in 2018, 0.76 in 2019 and 1.34 in 2020. Quick ratio of the company is increasing and
then decreasing per year. In 2016 ratio is 0.72 and then it is decreasing to 0.70 in 2017 and
in 2018-2019 ratio is increasing but ratio is less than ideal ratio it means companies
liabilities is more than liquid assets which is not good but in 2020 the ratio is 1.34 which
is more than ideal ratio and its good for company. Overall companies quick ratio is good,
companies is going good and its near to ideal ratio and its good for the company and it
also means company is healthy.

ABSOLUTE LIQUIDITY RATIO OF YEAR 2015-2020

 Absolute Liquidity Ratio= Cash + Marketable Securities / Current Liability(2016)

Cash+ Marketable Securities= Rs 7.06

Current Liabilities= 65.31

=7.06/65.31

=0.11:1

The ideal Absolute Liquidity Ratio is 0.5:1, and Companies Absolute liquidity ratio is
0.11:1. Which is less than ideal ratio.
  Absolute Liquidity Ratio= Cash + Marketable Securities / Current Liability(2017)

Cash+ Marketable Securities= Rs 3.57

Current Liabilities= 54.48

=3.57/54.48

=0.06:1

The ideal Absolute Liquidity Ratio is 0.5:1, and Companies Absolute liquidity ratio is
0.06:1. Which is less than ideal ratio.

 Absolute Liquidity Ratio= Cash + Marketable Securities / Current Liability(2018)

Cash+ Marketable Securities= Rs 4.22

Current Liabilities= 68.87

=4.22/68.87

=0.06:1

The ideal Absolute Liquidity Ratio is 0.5:1, and Companies Absolute liquidity ratio is
0.06:1. Which is less than ideal ratio.

 Absolute Liquidity Ratio= Cash + Marketable Securities / Current Liability (2019)

Cash+ Marketable Securities= Rs 5.41

Current Liabilities= 78.13

=5.41/78.13

=0.07:1

The ideal Absolute Liquidity Ratio is 0.5:1, and Companies Absolute liquidity ratio is
0.07:1. Which is less than ideal ratio.

 Absolute Liquidity Ratio= Cash + Marketable Securities / Current Liability (2020)

 Cash+ Marketable Securities= Rs 21.92

Current Liabilities= 64.19

=21.92/ 64.19

=0.34:1

The ideal Absolute Liquidity Ratio is 0.5:1, and Companies Absolute liquidity ratio is
0.34:1. Which is less than ideal ratio.

Company’s ratio is 0.11 in 2016, 0.06 in 2017, 0.06 in 2018, 0.07 in 2019 and 0.34 in
2020. Absolute liquidity ratio of the company is decreasing per year but in 2020 it is
increasing. In 2016 ratio is 0.11 and then it is decreasing to 0.06 to 0.06 to 0.07 and it is
increasing in 0.34 in 2020. but ratio is less it means companies current assets is more cash
which is not good but in 2020 the ratio is 0.34 which is near to the ideal ratio and it
indicates cash is increasing and its good for company as company is going upward and
liabilities is going downwards. Overall companies Absolute liquidity ratio is good,
companies is going good and its near to ideal ratio and its good for the company and it
also means company is healthy.

CA TO FA RATIO FOR YEAR 2016-2020

 Ca to Fa ratio :- Current Assets/ Fixed Assets (2016)

Current Assets- 75.89

Fixed Assets- 94.18

= 75.89/94.18

= 0.81:1

 Ca to Fa ratio :- Current Assets/ Fixed Assets (2017)

Current Assets- 66.67

Fixed Assets- 90.79

= 66.67/90.79

= 0.73:1

 Ca to Fa ratio :- Current Assets/ Fixed Assets (2018)

Current Assets- 87.31

Fixed Assets- 102.59

= 87.31/102.59

= 0.85:1

 Ca to Fa ratio :- Current Assets/ Fixed Assets (2019)

Current Assets- 115.02

Fixed Assets- 118.33

= 115.02/118.33

= 0.97:1

 Ca to Fa ratio :- Current Assets/ Fixed Assets (2020)

Current Assets- 143.56

Fixed Assets- 120.73

= 143.56/120.73

= 1.19:1
The ideal ratio of Ca to Fa ratio is 0.5:1 and Companies ratio is 0.81 in 2016, 0.73 in
2017, 0.85 in 2018, 0.97 in 2019 and 1.19 in 2020. Ca to Fa ratio of the company is
decreasing from 2016 to 2017 which is 0.81 to 0.73 but in 2018 it is increasing again to
0.85 to 0.97 to 1.19, it means companies current asset is more than fixed assets which is
good but in 2020 the ratio is 1.19 and its good for company as company is going upward.
Overall companies. Ca to Fa ratio is good, companies is going good and its good for the
company and it also means company is healthy.

PROFIT & LOSS ACCOUNT OF ASSOCIATED MAR MAR MAR MAR MAR  
ALCOHOL AND BREWERIES (in Rs. Cr.) 20 19 18 17 16

  12 12 12 12 12  
months months months months months

INCOME  

REVENUE FROM OPERATIONS [GROSS] 532.15 409.37 329.10 289.82 287.65  

Less: Excise/Service Tax/Other Levies 12.42 13.04 6.87 0.11 0.25  

REVENUE FROM OPERATIONS [NET] 519.73 396.33 322.23 289.70 287.40  

TOTAL OPERATING REVENUES 522.58 398.54 324.12 290.95 287.52  

Other Income 3.28 4.21 3.07 2.64 0.59  

TOTAL REVENUE 525.86 402.75 327.19 293.59 288.11  

EXPENSES  

Cost Of Materials Consumed 272.28 253.46 192.61 158.35 154.58  

Operating And Direct Expenses 7.20 10.10 7.79 59.94 54.92  

Changes In Inventories Of FG,WIP And Stock-In 0.53 -11.93 -3.08 0.51 0.35  
Trade

Employee Benefit Expenses 24.22 19.63 22.41 19.45 17.00  

Finance Costs 2.08 2.23 3.84 4.10 5.19  

Depreciation And Amortization Expenses 14.10 12.29 11.32 10.95 10.34  

Other Expenses 140.33 68.86 52.14 8.13 19.23  

TOTAL EXPENSES 462.14 355.43 287.77 266.39 264.99  

PROFIT/LOSS BEFORE EXCEPTIONAL, 63.72 47.32 39.42 27.20 23.12  

EXTRAORDINARY ITEMS AND TAX

Exceptional Items 0.00 0.00 0.00 0.00 0.00  

PROFIT/LOSS BEFORE TAX 63.72 47.32 39.42 27.20 23.12  

TAX EXPENSES-CONTINUED OPERATIONS  

Current Tax 16.73 16.01 15.54 10.97 8.32  

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00  

Deferred Tax -2.44 0.86 -1.86 -0.77 0.17  

Tax For Earlier Years 0.08 0.18 0.55 0.08 0.00  

TOTAL TAX EXPENSES 14.38 17.05 14.23 10.29 8.50  

PROFIT/LOSS AFTER TAX AND BEFORE 49.34 30.26 25.19 16.91 14.62  
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM CONTINUING 49.34 30.26 25.19 16.91 14.29  

OPERATIONS

PROFIT/LOSS FOR THE PERIOD 49.34 30.26 25.19 16.91 14.29  

OTHER ADDITIONAL INFORMATION  

EARNINGS PER SHARE  

Basic EPS (Rs.) 27.29 16.74 13.93 9.35 7.90  

Diluted EPS (Rs.) 27.29 16.74 13.93 9.35 7.90  

VALUE OF IMPORTED AND INDIGENIOUS RAW  

MATERIALS STORES, SPARES AND LOOSE
TOOLS

Imported Raw Materials 0.00 0.00 0.00 0.00 0.00  

Indigenous Raw Materials 0.00 0.00 0.00 0.00 0.00  

STORES, SPARES AND LOOSE TOOLS  

Imported Stores And Spares 0.00 0.00 0.00 0.00 0.00  

Indigenous Stores And Spares 0.00 0.00 0.00 0.00 0.00  

DIVIDEND AND DIVIDEND PERCENTAGE  

Equity Share Dividend 1.71 1.71 1.81 1.09 0.90  

Tax On Dividend 0.47 0.47 0.37 0.00 0.18  

Equity Dividend Rate (%) 10.00 10.00 10.00 10.00 5.00

DEFENSIVE INTERVAL RATIO FOR YEAR 2016 TO 2020

 Defensive Interval Ratio = Current Assets/ Daily Expenditure (2016)
Daily Expenditure = Annual Operating Expenses – non-cash charges/ 365

= cogs+ administrative and selling expenses – noncash charges/365

=154.58+19.23 -10.34 /365 = 0.44

=Current Assets/ Daily Expenditure

= 75.89/ 0.44

= 172.45

 Defensive Interval Ratio = Current Assets/ Daily Expenditure (2017)

Daily Expenditure = Annual Operating Expenses – non-cash charges/ 365

= cogs+ administrative and selling expenses – noncash charges/365

=158.35+8.13 -10.95 /365 = 0.43

=Current Assets/ Daily Expenditure

= 66.67/ 0.43

= 155.04

 Defensive Interval Ratio = Current Assets/ Daily Expenditure (2018)

Daily Expenditure = Annual Operating Expenses – non-cash charges/ 365

= cogs+ administrative and selling expenses – noncash charges/365

=192.61+52.14 -11.32 /365 = 0.64

=Current Assets/ Daily Expenditure

= 87.31/ 0.64

= 136.42

 Defensive Interval Ratio = Current Assets/ Daily Expenditure (2019)

Daily Expenditure = Annual Operating Expenses – non-cash charges/ 365

= cogs+ administrative and selling expenses – noncash charges/365

=253.46+68.86 -12.29 /365 = 0.85

=Current Assets/ Daily Expenditure

= 115.02/ 0.85

= 135.32

 Defensive Interval Ratio = Current Assets/ Daily Expenditure (2020)

Daily Expenditure = Annual Operating Expenses – non-cash charges/ 365

= cogs+ administrative and selling expenses – noncash charges/365

=272.28+91.40 -14.10 /365 = 0.44

=Current Assets/ Daily Expenditure

= 143.56/ 0.44

= 326.27

Chart Title
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2016 2017 2018 2019 2020

The Defensive Interval Ratio is changing every year some time it is decreases and after
2019 it is increasing. Decrease in this ratio is good for the company.