The N P ratio has been consistent fromMar 09 to Mar 11.(The sales has increasesd from 26.18% to 37.98%)

The NP rationhas dipped to a negative7%,though the sales has reduced y-oy by only 3.7%

The PBDIT ratio is also declining The interest coverage ratio I not in a favorable condition.The PBDIT has declined in

the last year.The tax advantage is not there.Inearlier years also, it is not very high. Dupont: The reduction in ROA( product of pft margin and Asset Turn over ) is explained by the

drop in profit margin and the ATO

The current ratio ( 1;!)is less than the norm( though slightly less than the Indian thumb rule of 1.33%.The company will just be able to meet its current liabilities.We can not say it is a very comfortable situation.

The company finds it difficult to meet the stringent norm of quick ratio( The company’s ratio hovers around .66).It ay land in embarrassing situations,especially the inventory holing period ratio and Debtor realization ratio are not satisfactory, and in fact have moved soth ward.

The debt-equity ratio has been increasing and the company is trying to reap leverage effects.But the creditors may fell wary , as the profitability is not that comfortable. The apprehension is subject to the specific charge that might have been created on the assets at the time of availing loans.

The company, in view of the increasing Debtor T O ratio and the Debtors holding period, is not effective in realizing its dues from the customers.

Similarly, the creditors do not get the timely payments.