Understanding Financials

MADRAS FERTILIZERS

GROUP MEMBERS• Aditya Awasare – 01• Aditya Tawde - 02• Krishnanand Shenai – 13• Omkar Sawant – 28• Pankaj Patil – 29• Prem Sawant – 34• Rohit Dumbre – 41• Tushar Surana – 53• Vinayak Kudva - 55• Vinit Pitale - 56

Madras Fertilizers

• MFL was incorporated on December 8, 1966• A joint venture between GOI and AMOCO India

incorporated of U.S.A (AMOCO)• MFL had an initial public offering of its shares in May 1997 %• Government of India 59.50• Naftiran Intertrade Co Ltd 25.77 (Affiliate of NIOC) • Public 14.73 100.00

Liquidity Ratios Ratio 07-08 06-07 05-06

Current Ratio 0.81 0.86 1.11

Acid Test Ratio 0.45 0.37 0.64

Working Capital to Sales Ratio (0.064) (0.04) 0.042

Leverage RatioRatio 07-08 06-07 05-06

Debt to Equity 4.78 4.37 4.53

Debt to Asset 2.57 1.92 1.44

Long Term Debt to Equity

4.78 4.38 4.53

Interest Coverage (0.719) (0.42) (1.013)

ACTIVITY RATIORatio 07-08 06-07 05-06

Inventory Turn Over

- 18.27 12.83

Bills Receivable Turn Over

398.69times 409.27times 145.83times

Fixed Asset Turn Over

3.07 2.92 2.39

Total Asset Turn Over

0.81 0.89 1.12

Profitability RatioRatio 07-08 06-07 05-06

Gross Profit to Sales (0.0113) 8.411 (0.0217)

Net Profit to Sales (0.118) (0.095) (0.121)

Return to Equity 28.45 % 33.84% 58. 71 %

Return on Capital Employed

0.616 (2.47) (0.843)

Return On Investment

(0.184) (0.089) (0.131)

Share Holder RatioRatio 07-08 06-07 05-06

Earning Per Share

(8.37) (7.12) (8.18)

Book Value (29.42) (21.05) (13.93)

P.E. (0.842)

Du Pont Analysis

For 2007-2008

3-11

ROE = 28.45%

ROA = -44.72% Asset/equity= -0.636

PM = -11.83 TAT = 3.78

PAT = --134.85 Sales = 1140.06 Sales = 1140.06 TA = 301.54

Fixed Assets = 374.85 Net Current Assets = -73.31

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For 2006-2007

3-12

ROE = 33.84%

ROA = -30.99% Asset/equity= -1.09

PM = -9.48 TAT = 3.27

PAT = --114.78 Sales = 1210.66 Sales = 1210.66 TA = 370.40

Fixed Assets = 418.44 Net Current Assets = -48.04

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For 2005-2006

3-13

ROE = 58.71%

ROA = -25.87% Asset/equity= -2.27

PM = -12.15 TAT = 2.13

PAT = --131.74 Sales = 1084.22 Sales = 1084.22TA = 509.30

Fixed Assets = 463.63 Net Current Assets = 45.67

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FUND

FLOW

..\Fund_Flow_Statement-Madras_fertilisers.xls

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