A] Liquidity Position

1. Current Ratio

Year of
Pre-Acquisition Post-Acquisition
Acquisition
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Current assets 14,986 16,327 18,107 33,447 37,354

Current Liabilities 5,636 6,393 7,917 10,331 10,926

Current Ratio = CA/CL 2.66 2.55 2.29 3.24 3.42

The provided table shows the current ratio of a company for the five years from 2015-16 to 2019-20,
both pre- and post-acquisition.

The current ratio is a liquidity ratio that measures a company's ability to pay its short-term
obligations using its current assets. A higher current ratio indicates that a company has more current
assets relative to its current liabilities, which suggests that it is better able to cover its short-term debt
obligations.

Looking at the table, we can see that the current ratio of the company improved significantly after the
acquisition in 2018-19. Prior to the acquisition, the current ratio ranged from 2.29 to 2.66, which
indicates that the company had a relatively strong liquidity position. However, in the year of the
acquisition (2018-19) and in the subsequent year (2019-20), the current ratio increased to 3.24 and
3.42, respectively, which suggests that the company's liquidity position improved even further.

It is important to note that the current ratio should not be viewed in isolation, and other factors such
as the company's operating cash flows and capital structure should also be considered when
evaluating its overall financial health.
2. Liquid Ratio

Year of
Pre-Acquisition Post-Acquisition
Acquisition

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Liquid Assets = (CA-Stock-Prepaid 14,946 16,265 18,041 33,372 37,318

Expenses)
Liquid Liabilities (CL-Bank
Overdraft) 5,636 6,393 7,917 10,331 10,926

Liquid Ratio= Liquid Assets / Liquid

2.65 2.54 2.28 3.23 3.42
Liabilities

The provided table shows the liquid ratio of a company for the five years from 2015-16 to 2019-20,
both pre- and post-acquisition. The liquid ratio is a variation of the current ratio that excludes
inventory from current assets and bank overdraft from current liabilities, in order to focus on the
company's more liquid assets and liabilities.

Looking at the table, we can see that the liquid ratio of the company followed a similar trend to the
current ratio. Prior to the acquisition, the liquid ratio ranged from 2.28 to 2.65, which suggests that
the company had a relatively strong liquidity position. However, in the year of the acquisition (2018-
19) and in the subsequent year (2019-20), the liquid ratio increased to 3.23 and 3.42, respectively,
indicating an even stronger liquidity position.

It is important to note that, like the current ratio, the liquid ratio should not be viewed in isolation,
and other factors such as the company's operating cash flows and capital structure should also be
considered when evaluating its overall financial health.
B) Profitability Ratios

1. Net Profit Ratio

Year of
Pre-Acquisition Post-Acquisition
Acquisition

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Net Profit 3,024 2,853 3,786 4,354 3,903

Net Sales 26,494 29,141 30,773 34,742 36,868

Net Profit Ratio = Net Profit /

11.41 9.79 12.30 12.53 10.59
Net Sales

The provided table shows the net profit ratio of a company for the five years from 2015-16 to 2019-
20, both pre- and post-acquisition. The net profit ratio, also known as the profit margin, measures a
company's ability to generate profit from its sales. A higher net profit ratio indicates that the
company is more efficient at controlling its costs and generating profit from its sales.

Looking at the table, we can see that the net profit ratio of the company fluctuated over the years. In
2015-16, the net profit ratio was 11.41%, which decreased to 9.79% in 2016-17, and then increased
to 12.30% in 2017-18. In the year of the acquisition (2018-19), the net profit ratio remained
relatively stable at 12.53%, and then decreased slightly to 10.59% in 2019-20.

It is important to note that the net profit ratio should not be viewed in isolation, and other factors
such as the company's revenue growth, operating expenses, and tax liabilities should also be
considered when evaluating its overall profitability.
2. Return on Total Assets

Year of
Pre-Acquisition Post-Acquisition
Acquisition
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Net Profit 3,024 2,853 3,786 4,354 3,903

Net Sales 26,494 29,141 30,773 34,742 36,868

Net Profit Ratio = Net Profit /
11.41 9.79 12.30 12.53 10.59
Net Sales

The provided table shows the net profit ratio of a company for the five years from 2015-16 to 2019-
20, both pre- and post-acquisition. The net profit ratio, also known as the profit margin, measures a
company's ability to generate profit from its sales. A higher net profit ratio indicates that the
company is more efficient at controlling its costs and generating profit from its sales.

Looking at the table, we can see that the net profit ratio of the company fluctuated over the years. In
2015-16, the net profit ratio was 11.41%, which decreased to 9.79% in 2016-17, and then increased
to 12.30% in 2017-18. In the year of the acquisition (2018-19), the net profit ratio remained
relatively stable at 12.53%, and then decreased slightly to 10.59% in 2019-20.

It is important to note that the net profit ratio should not be viewed in isolation, and other factors
such as the company's revenue growth, operating expenses, and tax liabilities should also be
considered when evaluating its overall profitability.
3. Return on Shareholder's Fund

Year of
Pre-Acquisition Post-Acquisition
Acquisition

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20

Net Profit 3,024 2,853 3,786 4,354 3,903

Net Sales 14,590 16,435 18,841 20,282 21,812

Net Profit Ratio = Net Profit /

20.73 17.36 20.10 21.47 17.89
Net Sales

The provided table shows the net profit ratio of a company for the five years from 2015-16 to 2019-
20, both pre- and post-acquisition. The net profit ratio, also known as the profit margin, measures a
company's ability to generate profit from its sales. A higher net profit ratio indicates that the
company is more efficient at controlling its costs and generating profit from its sales.

Looking at the table, we can see that the net profit ratio of the company fluctuated over the years. In
2015-16, the net profit ratio was 20.73%, which decreased to 17.36% in 2016-17, and then increased
to 20.10% in 2017-18. In the year of the acquisition (2018-19), the net profit ratio remained
relatively stable at 21.47%, and then decreased slightly to 17.89% in 2019-20.

It is important to note that the net profit ratio should not be viewed in isolation, and other factors
such as the company's revenue growth, operating expenses, and tax liabilities should also be
considered when evaluating its overall profitability.