Page 1 of 2 Assessment of Working Capital Requirements

RATIO ANALYSIS
Name: M/S S K AUTO PARTS
Previous Current
Year Year Following years Projected
Ideal Provisional Estimated
Sr. No. Particulars
Levels
31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24
Year 1 Year 2 Year 3 Year 4
A Long-term Solvency Ratios
1 Debt Equity Ratio - - - -

2 Net Worth to Total Assets Ratio 0.50 0.54 0.57 0.61

3 Debt to Net Worth Ratio - - - -

4 Capital Gearing Ratio - - - -

5 Fixed Assets to Long Term Funds - - - -

6 Propriety Ratio 0.50 0.54 0.57 0.61

7 Interest Coverage - - - -

8 Debt Service Coverage - - - -

B Short-term Solvency Ratios

1 Current Ratio 1.10 1.36 1.63 1.92

2 Quick Ratio or Liquid Ratio or Acid Test Ratio 0.37 0.43 0.52 0.61

3 Absolute Liquid Ratio 0.06 0.06 0.08 0.09

C Profitability Ratios
1 Return on Capital Employed or Return on
Investment 24.94% 24.88% 27.05% 27.81%

2 Gross Profit Margin 38.37% 38.93% 39.66% 41.41%

3 Net Profit Margin 11.17% 10.17% 10.08% 9.54%

4 Cash Profit Ratio 11.17% 10.17% 10.08% 9.54%

5 Return on Net Worth 50.19% 46.45% 47.34% 45.86%

6 Operating Profit (before interest) Margin 24.99% 25.30% 25.50% 26.00%

7 Operating Profit (after interest) Margin 24.99% 25.30% 25.50% 26.00%

D Activity Ratios
1 Inventory Turnover Ratio 6.12 5.65 5.65 5.65
[Based on closing inventory]

2 Inventory Turnover Ratio 12.24 6.39 6.16 6.16

[Based on average inventory]

3 Inventory Turnover Ratio 7.55 3.90 3.72 3.61

[Based on cost of sales / average inventory]
Page 2 of 2 Assessment of Working Capital Requirements
RATIO ANALYSIS
Name: M/S S K AUTO PARTS
Previous Current
Year Year Following years Projected
Ideal Provisional Estimated
Sr. No. Particulars
Levels
31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24
Year 1 Year 2 Year 3 Year 4
4 Inventory Turnover Period
i Based on net sales & closing inventory 59.62 64.63 64.61 64.62
ii Based on net sales & average inventory 29.81 57.16 59.23 59.23
iii Based on net cost of sales & average inventory 48.37 93.60 98.16 101.11

5 Debtors Turnover Ratio 14.18 14.21 14.20 14.19

[Based on closing debtors]

6 Debtors Turnover Ratio 28.36 15.48 15.49 15.49

[Based on average debtors]

7 Debtors Turnover Period

i Based on net sales & closing debtors 25.74 25.69 25.70 25.72
ii Based on net sales & average debtors 12.87 23.57 23.56 23.57

8 Creditors Turnover Ratio 226.93 177.21 177.95 168.78

[Based on closing creditors]

9 Creditors Turnover Ratio 453.87 198.06 190.98 186.00

[Based on average creditors]

10 Creditors Turnover Period

i Based on purchases & closing creditors 1.61 2.06 2.05 2.16
ii Based on purchases & average creditors 0.80 1.84 1.91 1.96

11 Fixed Assets Turnover Ratio 4.99 6.67 8.93 11.94

12 Assets Turnover Ratio 2.23 2.45 2.68 2.92

13 Working Capital Turnover Ratio 44.86 14.50 9.91 8.04

14 Sales to Capital Employed 4.49 4.57 4.70 4.81

E Operating Ratios
1 Domestic Sales Proportion 100.00% 100.00% 100.00% 100.00%

2 Export Sales Proportion 0.00% 0.00% 0.00% 0.00%

3 Material Cost Ratio 72.97% 60.16% 58.28% 56.54%

4 Consumables Cost Ratio 0.00% 0.00% 0.00% 0.00%

5 Direct Labour Cost Ratio 4.99% 5.00% 5.00% 5.00%

6 Other Direct Cash Overheads Cost Ratio 0.00% 0.00% 0.00% 0.00%

7 Total Direct Cost Ratio [excl material & consumables] 4.99% 5.00% 5.00% 5.00%

8 Total Direct Cost Ratio [incl material & consumables] 77.96% 65.16% 63.29% 61.54%

9 Indirect Cost Ratio 13.38% 13.63% 14.16% 15.41%

10 Interest Cost Ratio 0.00% 0.00% 0.00% 0.00%

11 Operating Cost Ratio 75.01% 74.70% 74.50% 74.00%