Company Analysis Report On M/s Vimal Oil & Foods LTD

Vimal &Oil Foods Ltd
Company Profile
M/s Vimal Oil & Foods (Vimal) was incorporated on 14th May 1992. It received
the certificate of commencement of business on 19 May 1992 from the Registrar
of Companies Gujarat.
The company has embarked upon a project for setting up a 200 TPD solvent
extraction and 50 TPD edible refined oil plant at village Hanumant Heduva Dist.
Mehsana (North Gujarat). Presently the company is engaged in the production of
edible oils in its edible oil refinery which commenced commercial production on
25.09.93. Vimal is promoted by a group of qualified entrepreneurs viz. Shri
Chandubhai I Patel Shri G K Patel Shri J C Patel and Shri K S Patel from
Mehsana (Gujarat)
2003
-Members approve delisting from Delhi Stock Exchange
M/s. Vimal Oil & Foods Limited (Vimal) was incorporated on 14th May 1992. It
received the certificate of commencement of Business on 19th May 1992 from
the Registrar of Companies Gujarat. The Company is engaged in the production
of edible oil in its edible oil refinery whichcommenced commercial production with
a 50 TPD capacity in September 1993.
The Company made the Public Issue of 27 50 000 Equity Shares of Rs. 10/- for
cash at par aggregating Rs. 2 75 00 000/- in March 1994 to part finance the
project for setting up a 200 TPD Solvent Extraction Plant which was commenced
in December 1994.
In the year 1995 additional Oil Refinery capacity of 100 TPD was commenced. In
the year 1995 the Company has set up a Wind Mill at Survey No. 128 Mouj:
Kalyanpur Tal: Kalyanpur Dist: Jamnagar. The Company has set up a Milk
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Powder plant in the year 1997 at Village: Hanumant Heduva Nr. Palvasna
Railway Crossing Highway and Mehsana- 384 002.
In the year 2003 refining capacity was enhanced to 80 000 TPA (approx. 300
TPD). The said expansion was funded by term loan and internal accruals.
The Company is exporting the De-oiled Cake (DOC) a by-product under the
solvent extraction to various foreign countries. The Company has been
presented with the Export Awards in the years 1998 1999 and 2001. The
Company has obtained One Star Export House status from the office of theJoint
Director General of Foreign Trade Ahmedabad on 18th October 2005 which is
valid from 01.04.2005 to 31.03.2009.
The Company has adhered to the Quality Management System Standard of ISO
9001: 2000 issued by the Det Norske Veritas (DNV).
MAJOR EVENTS IN THE HISTORY OF THE COMPANY:
Year Events
1992 Incorporation of the company as the limited company1993 50 TPD capacity

refinery of Cotton seed/Rapeseed Oil was commenced1994 200 TPD Solvent Extraction
Plant was commenced1995 Additional Oil Refinery capacity of 100 TPD was
commenced1995 Company has set up a Wind Mill1997 Company has set up a Milk
Powder plant1998 Award for the highest Exporter of Rapeseed De-oiled cakes (DOC) in
India during the year 1997-98 from the Solvant Extraction Association of India.1998-99
2000-01 Award for the Second Highest Exporter's of Rapeseed DOC for the year 1998-
99 2000-01 2001 Company has also ISO 9001 : 2000 Registration for Quality System
Certification from DNV Netherlands2003 Refining capacity was enhanced to 80 000
TPA. (approx. 300 TPD)2006 Implementation of Customised Enterprise Resource
Planning System
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1992 Incorporation of the company as the limited company

1993 50 TPD capacity refinery of Cotton seed/Rapeseed Oil was commenced
1994 200 TPD Solvent Extraction Plant was commenced
1995 Additional Oil Refinery capacity of 100 TPD was commenced
1995 Company has set up a Wind Mill
1997 Company has set up a Milk Powder plant
1998 Award for the highest Exporter of Rapeseed De-oiled cakes

(DOC) in ndia during the year 1997-98 from the Solvant Extraction
Association of India.
1998-99,
2000-01 Award for the Second Highest Exporter's of Rapeseed DOC for
the year 1998-99, 2000-01
2001 Company has also ISO 9001 : 2000 Registration for Quality
System Certification from DNV, Netherlands
2003 Refining capacity was enhanced to 80,000 TPA. (approx. 300

TPD)
2006 Implementation of Customised Enterprise Resource Planning System
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Business Description
Vimal Oil & Foods Limited. The Group's principal activity is to produce edible oil and
de-oiled cake (DOC). It operates in three segments, namely, Integrate Oil Division,
Powder Manufacturing and Wind Mill. It exports its by-product de-oiled cake to foreign
countries. The products include refined cotton seed oil, groundnut oil, rape seed oil and
de-oil cake, refined soya bean oil and others The plant is located in Gujarat.
Basic information
INDUSTRY : VIMAL OIL *&FOODS LTD
ROC Reg. No. : 51577
Incorporation Year : 1989
Ownership : Private (Indian)
Website : WWWW. VIMALOIL .COM
ISIN Code : INE345E01013
BSE Demat Code : 523576
BSE Listing group :B
Face value (Rs) : 10
Beta : 1.66
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BOARD OF DIRECTORS
Directors Name Designation
J C Patel Ch & Md
Mahendrabhai V Patel Director
Mukesh N Patel Director
Harnarayan J Patel Director
Bankers
Bank of America
Bank of Baroda
Central Bank of India
Citibank NA.
Hongkong & Shanghai Banking Corporation Ltd.
Punjab National Bank
Standard Chartered Bank
State Bank of India
ICICI Bank Ltd.
HDFC Bank Ltd.
IDBI Bank Ltd.
Canara Bank
Not Reported
American Express Bank
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CONTACT
Registered Office : 4th Floor Heritage Nr. The Grand Bhagwati Sarkhej Gandhinagar
Highway Ahmedabad Gujarat - 380054 Tel: 26841851 26841852 26841853
Industry Type: Edible Oils & Solvent Extraction
Key Officials:
Mr. Harnarayan J Patel Director
Mr. Mahendrabhai V Patel Director
Mr. Mukesh N Patel Director
Mr. Jayesh C Patel Chairman and Managing director
BSE CODE: 519373 NSE CODE: Not Available

ISIN: INE067D01015
Current Market Capital: 9.828
Promoters %: 26.4218
Promoters Shares: 1202193
Institution Investment %: 0.0176
Institution Investment Shares: 800
Auditor: Rajesh Rasiklal Shah & Associates
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Study objectives
 To know the liquidity activity and profitability position of the company
 To determine the impact of selected ratios on profitability
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Executive Summary
Mar Mar Mar Mar Mar Mar
Vimal Oil & Foods Ltd. 2003 2004 2005 2006 2007 2008
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 236.55 248.85 248.56 363.79 492.67 637.87
Sales 236.26 247.74 247.83 363.17 491 635.47
Income from financial services 0.28 0.71 0.68 0.53 1.61 2.18
Total expenses 237.53 247.32 249.12 365.27 496.41 634.6

Raw material expenses 213.41 217.06 129.42 162.55 275.31 322.24
Power, fuel & water charges 2.61 1.94 1.71 2.16 2.72 2.87
Compensation to employees 0.6 0.59 0.65 0.64 0.85 1.14
Indirect taxes 1.12 7.27 6.4 2.1 0.13 0.41
Selling & distribution expenses 2.83 2.11 1.69 2.92 4.63 4.7
Other operational exp. of indl. enterprises 0.02 0.37 0.14 0.01 0.03 0.02
Other oper. exp. of non-fin. service
enterprises 0 0 0 0 0 0
PBDITA 5.08 4.95 5.83 7.21 11.34 17.19

PBDTA 2.8 2.83 2.7 4.28 6.95 11.26
PBT 1.82 1.81 1.71 3.28 5.5 8.71
PAT 1.28 1.23 1.05 2.02 3.43 5.58
Net worth 9.96 10.42 10.64 14.64 14.93 24.5

Paid up equity capital (net of forfeited
capital) 4.55 4.55 4.55 4.55 4.55 4.55
Reserves & surplus 5.41 5.87 6.09 7.59 10.38 14.95
Total borrowings 26.87 34.33 30.7 38.73 47.25 69.8

Current liabilities & provisions 7.22 7.72 16.91 29.04 79.25 48.2
Total assets 46.86 55.28 60.98 84.98 144.37 146.12

Gross fixed assets 19.67 19.49 19.42 20.4 24.28 31.24
Net fixed assets 13.95 12.81 11.77 11.79 14.55 20.36
Investments 0.01 0.01 0 0 0 0
Current assets 31.64 39.92 47.31 73.06 126.13 123.15
Loans & advances 1.23 2.54 1.9 0.05 2.26 2.61
Growth (%)
Total income 55.074079 5.1997464 -0.116536 46.359028 35.427032 29.47206
Total expenses 59.662566 4.1215846 0.727802 46.624117 35.902209 27.83788
PBDITA 24.815725 -2.559055 17.777778 23.670669 57.281553 51.5873
PAT 9.4017094 -3.90625 -14.63415 92.380952 69.80198 62.68222
Net worth 2.9015544 4.9345418 2.1113244 36.842105 -6.456044 79.88253
Total assets 37.419355 17.968417 10.311143 39.357166 69.887032 1.212163
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Profitability ratios %
PBDITA Net of P&E/Total income net of
P&E 2.1475375 1.8708509 2.3456989 2.0126478 2.3120801 2.702787
PAT Net of P&E/Total income net of P&E 0.5411118 0.3741702 0.4224672 0.5856475 0.7064125 0.882639
PAT Net of P&E/Avg. net worth 13.014743 9.1265947 9.97151 16.851266 23.537369 28.55694
PAT/Avg. net worth 13.014743 12.070658 9.97151 15.981013 23.199188 28.30332
PAT Net of P&E/Avg. total assets 3.1620553 1.82103 1.8062962 2.9186078 3.0346632 3.876209
PAT/Avg. total assets 3.1620553 2.408459 1.8062962 2.7678816 2.9910617 3.841785
Liquidity ratios (times)

Current ratio 1.3475298 1.2762148 1.3141667 1.3444976 1.064478 1.266454
Debt to equity ratio 2.7059416 3.2946257 2.8853383 2.6600275 3.469163 2.84898
Interest cover 1.7982456 1.7122642 1.5463259 2.1569966 2.2642369 2.477234
Debtors (days) 16.291056 24.213995 36.907961 33.261764 30.757383 27.24849
Creditors (days) 8.2911881 7.5063881 21.782548 27.457505 34.692282 26.0567
Efficiency ratios (times)

Total income / Avg. total assets 5.8501298 4.8741553 4.2759333 4.987524 4.322425 4.411578
Total income / Compensation to employees 394.25 421.77966 382.4 568.42188 579.61176 559.5351
Assets
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-
Gross fixed assets 19.67 19.49 19.42 20.4 24.28 31.24
Land & building 3.58 3.7 3.66 3.82 4.39 4.51
Plant & machinery 15.11 14.67 14.59 14.73 18 22.45
Transport & comm. equipment/infrastructure 0.59 0.73 0.65 0.57 0.58 0.65
Furniture,amenities & other fixed assets 0.39 0.39 0.52 1.28 1.31 1.52
Capital work-in-progress 0 0 0 0 0 2.11
Intangible assets 0 0 0 0 0 0
Net pre-operative expenses pending allocation 0 0 0 0 0 0

Net lease reserve adjustment 0 0 0 0 0 0
Less: Cumulative depreciation 5.72 6.68 7.65 8.61 9.73 10.88
Less: Arrears of depreciation 0 0 0 0 0 0
Net fixed assets 13.95 12.81 11.77 11.79 14.55 20.36
Investments 0.01 0.01 0 0 0 0

Equity shares 0.01 0.01 0 0 0 0
Preference shares 0 0 0 0 0 0
Mutual funds 0 0 0 0 0 0
Debt instruments 0 0 0 0 0 0
Approved securites (slr/statutory req.) 0 0 0 0 0 0
Assisted companies 0 0 0 0 0 0
Others 0 0 0 0 0 0
Less: Provision for dimunition in value of
investments 0 0 0 0 0 0
Group companies 0 0 0 0 0 0
Non-group companies 0.01 0.01 0 0 0 0
Market value of quoted investments 0 0 0 0 0 0
Deferred tax assets 0 0 0 0 0.12 0
Current assets 31.64 39.92 47.31 73.06 126.13 123.15

Cash & bank balance 1.92 1.07 0.11 1.1 36.32 14.42
Inventories 15.73 14.57 13.33 27.98 37.27 50.95
Receivables 13.99 24.28 33.87 43.67 52.54 57.78
Expenses paid in advance 0 0 0 0.31 0 0
Loans & advances 1.23 2.54 1.9 0.05 2.26 2.61

Deferred revenue expenditure 0.03 0 0 0.08 1.31 0
Total assets 46.86 55.28 60.98 84.98 144.37 146.12
Liabilities
-
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Net worth 9.96 10.42 10.64 14.64 14.93 24.5

Authorised capital 6 6 6 6 18 18
Issued equity capital 4.55 4.55 4.55 4.55 4.55 4.55
Paid up equity capital (net of forfeited capital) 4.55 4.55 4.55 4.55 4.55 4.55
Forfeited equity capital 0 0 0 0 0 0
Paid up preference capital (net of forfeited capital) 0 0 0 0 0 5
Capital contibution, suspense and application
money 0 0 0 2.5 0 0
Reserves & surplus 5.41 5.87 6.09 7.59 10.38 14.95

Free Reserves 5.41 5.87 6.09 7.59 10.38 14.95
Security premium reserves (Net of deductions) 0 0 0 0 0 0
Other free reserves 5.41 5.87 6.09 7.59 10.38 14.95
Specific Reserves 0 0 0 0 0 0
Revaluation Reserves 0 0 0 0 0 0
Less Accumulated losses 0 0 0 0 0 0
Total borrowings 26.87 34.33 30.7 38.73 47.25 69.8

Bank borrowings 18.32 26.29 21.15 26.76 40.3 52.71
Short term bank borrowings 16.66 23.79 19.17 25.36 39.39 49.66
Long term bank borrowings 1.66 2.5 1.98 1.4 0.91 3.05
Financial institutional borrowings 0.38 0 0 0 0 0
Central & state govt. (usually sales tax deferrals) 0 0 0 0 0 0
Debentures / bonds 0 0 0 0 0 0
Convertible 0 0 0 0 0 0
Non-convertible 0 0 0 0 0 0
Fixed deposits 0 0 0 0 0 0
Foreign borrowings 0 0 0 0 0 0
Of which : euro convertible bonds 0 0 0 0 0 0
Borrowings from corporate bodies 3.55 0 9.55 11.97 6.95 7.09
Group / associate cos. 0 0 0 0 0 0
Borrowings from promoters / directors 0.11 0.12 0 0 0 10
Commercial paper 0 0 0 0 0 0
Hire purchase borrowings 0 0 0 0 0 0
Deferred credit 0 0 0 0 0 0
-7.11E-
Other borrowings 4.51 7.92 0 15 0 0
Secured borrowings 18.73 26.3 21.15 26.76 40.3 52.71

Unsecured borrowings 8.14 8.03 9.55 11.97 6.95 17.09
Current portion of long term debt 0 0 0 0 0 0
Current liabilities & provisions 7.22 7.72 16.91 29.04 79.25 48.2
Sundry creditors 5.22 4.86 14.35 26.85 45.75 43.93
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Acceptances 0 0 0 0 0 0
Deposits & advances from customers &
employees 0.01 0.11 0.13 0.07 0.32 0.11
Interest accrued 0 0 0 0 0.13 0
Share application money 0 0 0 0 29.16 0.01
Other current liabilities 0.07 0.02 0.06 0.18 0.27 0.26
Provisions 1.92 2.73 2.37 1.94 3.62 3.89
Deferred tax liability 2.81 2.81 2.73 2.57 2.94 3.62
Total liabilities 46.86 55.28 60.98 84.98 144.37 146.12
Net worth (net of reval & DRE) 9.93 10.42 10.64 14.56 13.62 24.5
Contingent liabilities 14.16 66.3 157.05 138.08 97.94 182.89
Profits
Mar Mar Mar Mar Mar
Vimal Oil & Foods Ltd. 2003 2004 2005 2006 2007 Mar 2008
-
PBDITA 5.08 4.95 5.83 7.21 11.34 17.19
Depreciation 0.95 0.99 0.99 1 1.12 1.24
Amortisation 0.03 0.03 0 0 0.33 1.31
PBIT 4.1 3.93 4.84 6.21 9.89 14.64

Interest paid 2.28 2.12 3.13 2.93 4.39 5.93
Financial charges on instruments 0 0 0 0 0 0
Fee based financial services expenses 0 0 0 0 0 0
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PBT 1.82 1.81 1.71 3.28 5.5 8.71

Provision for direct tax 0.54 0.58 0.66 1.26 2.07 3.13
Corporate tax 0.36 0.58 0.74 1.4 1.8 2.3
Deferred tax 0.18 0 0 0 0.24 0.8
Less: Deferred tax assets / credit 0 0 0.08 0.16 0 0
Other direct tax 0 0 0 0.02 0.03 0.03
Fringe benefits tax 0 0 0 0.02 0.03 0.03
PAT 1.28 1.23 1.05 2.02 3.43 5.58
Prior period & extra-ordinary income 0 0.3 0.02 0.09 0.04 0.01
Prior period & extra-ordinary expenses 0 0 0.02 0.2 0.09 0.06
Net prior period & extraordinary
transactions 0 -0.3 0 0.11 0.05 0.05
PBDITA net of P&E 5.08 4.65 5.83 7.32 11.39 17.24

PBIT net of P&E 4.1 3.63 4.84 6.32 9.94 14.69
PBT net of P&E 1.82 1.51 1.71 3.39 5.55 8.76
PAT net of P&E 1.28 0.93 1.05 2.13 3.48 5.63
Distribution of profits (%)

PBDITA 100 100 100 100 100 100
Depreciation & Amortisation 19.291339 20.606061 16.981132 13.869626 12.786596 14.834206
Financial charges 44.88189 42.828283 53.687822 40.638003 38.712522 34.4968
Tax 10.629921 11.717172 11.320755 17.475728 18.253968 18.208261
PAT 25.19685 24.848485 18.010292 28.016644 30.246914 32.460733
Non--provisions 0 0 0 0 0 0
Diminution in investement 0 0 0 0 0 0
Sundry debtors 0 0 0 0 0 0
Loans & advances including NPAs 0 0 0 0 0 0
Loans & advances to group cos. 0 0 0 0 0 0
Interest expenses 0 0 0 0 0 0
Power expenses 0 0 0 0 0 0
TOOLS OF ANALYSIS
NATURE OF RATIO ANALYSIS
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as “the

indicated quotient of to mathematical expressions “and as “the relationship between two
or more things”. In financial analysis, a ratio is used as a bench mark for evaluating
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The financial position and performance of firm. The absolute accounting figures reported
in the financial statements do not provide a meaningful understanding of the
performance and financial position of a firm. An accounting figure conveys meaning
when it is related to some relevant information
CLASSIFICATION OF RATIOS
Ratio analysis was pioneered by Alexander. Interpretation of financial statements

can be made easier by establishing quantitative relationships between various items of
financial statements.
Accounting ratios may be classified as:
 Liquidity Ratios
 Solvency Ratios
 Turnover Ratios
 Profitability Ratios
Statistical Tools
Trend analysis y=a+bx
Σ y = na + bΣx
Σxy = aΣx + bΣx2
Co-efficient of correlation:-
The Correlation matrix is a powerful tool for degree of relationship among
predictors. To examine the correlation among various variables, Pearson product
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movement correlation (r) was computed. Thus, the growth is outcome number of strategic
decisions taken by a firm in the every-changing business environment.
N ∑ XY − (∑ X )( ∑Y )
r=
Co-efficient of correlation
N ∑ X 2 − (∑ X 2 ) N ∑Y 2 − ( ∑Y ) 2
LIQUIDITY RATIO:
(a) CURRENT RATIO (CR):
The ratio of current assets to current liabilities is called “current ratio”. The
term current assets includes debtors, stock, bills receivable, bank and cash balance,
prepaid expenses, income due and short term investments.
The term current liabilities includes creditors, bank overdraft, bills payable,
out standing expenses, income received in advances, etc. standard expected current ratio
internationally accepted current ratio is 2:1 i.e. current assets shall be 2times to current
liabilities.
Current assets
Current ratio =----------------------------
Current liability
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TABLE NO: 1 calculation Of CR during 2003-2008 (RS in Crores)
Years C.A’S C.L’S Ratio Trend

2003 31.64 5.8 5.45 -
2004 39.92 4.99 8 increase
2005 47.31 14.54 3.25 decrease
2006 73.06 27.1 2.69 decrease
2007 126.13 75.63 0.59 decrease
2008 123.15 119,26 1.03 increase
SOURCE: completed from the annual reports of ‘Vimal oil & foods Ltd”.
GRAPH NO: 1
cr
8
8
6 5.45
4 3.25 2.69
2 0.59 1.03
0
2003 2004 2005 2006 2007 2008
ye a rs
INTERPRETATION:
From the above table & chart it is observed that the current ratio is during the
study period this is due to increase in proportionate change in current assets is less than
the proportionate change in current liabilities .the current ratio of the company is more
than the standard norm of 2:1 but it is less in the years 2007 & 2008.
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(b)QUICK RATIO (QR):

This ratio is called “LIQUID” OR “ACID TEST RATIO”. It is calculated by
comparing the quick assets with quick liabilities. A quick or liquid asset refers to assets
which are quickly convertible cash. Quick assets other than stock and pre paid expenses
are considered as quick assets.
The ideal ratio or generally accepted “norm” for liquid ratio is “1”.
Quick assets
Quick ratio = -------------------------------
Current liabilities
TABLE NO: 2 Calculation of QR during 2003-2008 (RS in Crores)

Years Quick assets Current ratios trend
liabilities
2003 15.91 7.22 2.20 ------
2004 25.35 7.72 3.28 increase
2005 33.98 16.91 2.00 decrease
2006 44.77 29.04 1.54 decrease
2007 88.86 79.25 1.12 decrease
2008 72.2 48.2 1.49 increase
GRAPH NO :2
QUICK RATIO
3.28
3.5
3
2.5 2.2
2
2 1.54 1.49
ratio
1.5 1.12
1
0.5
0
2003 2004 2005 2006 2007 2008
years
INTERPRETATION:
From the above table it is observed that it is observed that the quick ratio is
decreased in the year 2005-2007 fluctuating the years due to increase the year 2004
&2008 of quick ratio.
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(c) ABSOLUTE QUICK RATIO (AQR):
Absolute assets are cash, bank balance &marketable securities. This ratio
reveals the relationship between absolute quick assets and quick liability.
Absolute liquid assets

Absolute quick ratio =--------------------------------------
Current liability
TABLE NO: 3 calculation of AQR during 2003-2008 (Rs in crores)
Years A.l.A’S C.L’S Ratio Trend

2003 1.92 7.22 0.26 -
2004 1.07 7.72 0.13 DECREASE
2005 0.11 16.91 0.006 DECREASE
2006 1.1 29.04 0.03 DECREASE
2007 36.32 79.25 0.45 INCREASE
2008 14.42 48.2 0.29 DECREASE
GRAPH NO: 3
ABSOLUTE QUICK RATIO
0.5 0.45
0.4
0.29
0.26
RATIO
0.3
0.2 0.13
0.1 0.006 0.03
0
2003 2004 2005 2006 2007 2008
YEARS
INTERPRITATION:
From the above table it is observed that absolute quick ratio is during the study period..
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SOLVENCY RATIO:
(a) PROPRIETARY (PR):
The ratio compares the shareholder’s fund or owners fund and total tangible
assets. In other words this ratio expresses the relationship between the proprietors
fund and the total tangible assets.
Shareholders fund (Net worth)

Proprietary ratio =----------------------------------------------
Tangible assets
CHART NO:4 calculation of PR during the year 2003-2008 (Rs in cores)
Years Net worth T.A’S Ratio Trend

2003 9.96 46.86 0.21 -
2004 10.42 55.28 0.19 DRCREASE
2005 10.64 60.98 0.18 DECREASE
2006 14.64 84.98 0.17 DECREASE
2007 14.93 144.37 0.10 DECREASE
2008 24.5 146.12 1.73 INCREASE
GRAPH NO :4
PROPRIETORY RATIO
2 1.73
1.5
RATIO
0.5 0.21 0.19 0.18 0.17 0.1

0
2003 2004 2005 2006 2007 2008
YEARS
INTERPRETATION:
From the above table it is observed that proprietary ratio is decreasing from 2003
to 2007 and it increased in 2008 .this is due to increase in net worth and tangible assets.
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(b) DEBT-EQUITY RATIO (DER):
This ratio is ascertained to determine long term solvency position of a company. It

is also called as “external-internal equity ratio”. This ratio relationship between outsiders
fund and internal equities. The norm of this ratio is 2:1.
Debt (total borrowings)

Debt-equity ratio = -------------------------------------------
Equity (Networth)
CHART NO: 5 Calculation of DER during the year 2003-2008 (Rs in crores)
Years Debt Equity Ratio Trend

2003 26.87 9.96 2.69 -
2004 34.33 10.42 3.29 INCREASE
2005 30.7 10.64 2.88 DECREASE
2006 38.73 14.64 2.64 DECREASE
2007 47.25 14.93 3.16 INCREASE
2008 69.8 24.5 2.84 DECREASE
GRAPH NO: 5
DER
4 3 .2 9
3 2 .6 9 2 .8 8 2 .6 4 3 .1 6 2 .8 4
2
1
0
2 0 0 32 0 0 42 0 0 52 0 0 62 0 0 72 0 0 8
YEARS
INTERPRETATION:
From the above table it is observed that debt equity ratio is having fluctations in the
Year 2004 it is increased due to increase in debt equity ratio but it is decreased in the
year 2005, 2006,2008 due to increased in the year 2007 debt total borrowings
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TURN OVER RATIO (T.O.R):
These ratios are called performance ratios. Activity ratios highlight the operational
efficiency of the business concern.
(a) Working capital turn over ratio:
Working capital turnover ratio measures the effective utilization of working capital.
Working capital turn over ratio = sales

Net working capital
Net working capital = current assets –current liabilities.
CHART NO: 6 Calculation of WCTOR during the year 2003-2008 (Rs in crores)
years sales Net working Ratio Trend

capital
2003 236.26 24.42 9.67 -

2004 247.74 32.2 7.69 decrease
2005 247.83 30.4 8.15 Increase
2006 363.17 44.02 8.25 Increase
2007 491 46.88 10.47 increase
2008 635.47 74.95 8.47 decrease
GRAPH NO: 6
W CTOR
15
1 0 .4 7
1 0 9 . 6 77 . 6 98 . 1 58 . 2 5 8 .4 7
5
0
2 0 0 32 0 0 42 0 0 52 0 0 62 0 0 72 0 0 8
YEARS
INTERPRETATION:
From the above table it is observed that the working capital turnover ratio is showing
fluctuation during the study period. It is observed that it is high in the year 2004-2007
due to increase in the sales & decrease in the working capital.
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CAPITAL TURN OVER RATIO (C.T.O.R):
This ratio determines capital turnover of the company, which will determine capacity of
sales, shares & many more.
cost of sales
C.T.O.R = -------------------------
Capital employed
CHART NO: 7 Calculation of C.T.O.R during 2003-2008(RS in crs)
years sales Capital employed Ratio Trend

2003 236.26 36.83 6.41 -
2004 247.74 44.75 1.06 Decrease
2005 247.83 41.34 5.99 Increase
2006 363.17 53.37 5.84 Decrease
2007 491 62.18 7.89 Increase
2008 635.47 94.3 6.73 decrease
GRAPH NO: 7
Capital turnover Ratio
9 7.89
8
6.41 6.73
7 5.99 5.84
6
5
Ratio
4
3
2 1.06
1
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that the capital turnover ratio is increased &
decreased in 2008 .It is due to increase in sales and decrease in capital employed.
AITS, Rajampet 22
FIXED ASSETS RATIO (F.A.R):
The ratio establishes the relationship b/n fixed assets & long term funds. The objective of
calculating this ratio is to ascertain the proportion of long term funds invested in fixed
assets.
F.A.R = fixed assets
Long term funds
CHART NO: 8 calculation of fixed assets ratio during 2003-2008(RS in crs)
year Fixed assets Long term Ratio Trend

funds
2003 15.22 39.64 0.38 -
2004 15.36 47.56 0.32 Decrease
2005 13.67 44.07 0.31 Decrease
2006 11.92 55.94 0.21 Decrease
2007 18.24 65.12 0.28 increase
2008 22.97 97.92 0.23 decrease
GRAPH NO : 8
FAR
0 . 4 0 . 3 80 . 3 2
0 .3 1 0 .2 8
0 .3 0 .2 3
0 .2 1
0 .2
0 .1
0
2 0 0 32 0 0 42 0 0 52 0 0 62 0 0 72 0 0 8
YEARS
INTERPRETATION:
From the above table it is observed that fixed assets ratio showing fluctuations. In the
year 20043the fixed assets ratio is high because of increasing of fixed assets. In the year
2006 it is low because of decreasing of fixed assets.
AITS, Rajampet 23
RETURN ON TOTAL ASSETS (ROTA):

The ratio calculated to measure the productivity of total assets. The term
fictitious assets refer to preliminary expenses, debit balance of profit and loss account and
other similar losses shown on Balance sheet assets side.
PAT
ROTA =------------------------------------ *100
Total assets
TABLE NO: 9 Calculation of ROTA during the year 2003-2008 (Rs in crores)
Years PAT Total assets Ratio Trend
2003 1.28 46.86 0.02 -
2004 1.23 55.28 0.02 constant
2005 1.05 60.98 0.o1 decrease
2006 2.02 84.98 0.02 increase
2007 3.43 144.37 0.02 constant
2008 5.58 146.12 0.03 increase
GRAPH NO : 9
ROTA
150 1 4 4 .13476 . 1 2
100 8 4 .9 8
5 5 .2 8 6 0 .9 8
5 0 4 6 .8 6
0
2 0 0 32 0 0 4 2 0 0 52 0 0 62 0 0 72 0 0 8
YEARS
INTERPRETATION:
From the above table it is observed that return on total assets is fluctuating during
the study priod.This is due to fluctuation in PAT and increase in total assets.
AITS, Rajampet 24
PROFITABULITY RATIOS:
Ability to make maximum profit from optimum utilization of resources by a
business concern is termed as “profitability”.
(1)RETURN ON INVESTMENT (ROI):
This ratio is called “overall profitability ratio” or “Return on capital employed”. It
measures the sufficiency or otherwise of profit in relation in capital employed.
Operating profit
ROI =------------------------------------ *100
Capital employed
CHART: 10 Calculation of ROI during the year 2003-2008 (Rs in crores)
Years Operating Capital employed Ratio Trend
profit
2003 1.28 36.83 3.47 -
2004 1.23 44.75 2.74 Decrease
2005 1.05 41.32 2.53 Decrease

2006 2.02 53.37 3.78 Increase
2007 3.43 62.18 5.51 Increase
2008 5.58 94.3 5.91 Increase
GRAPH NO : 10
ROI Ratio
6 5.91
5.51
5
4 3.78
3.47
Ratio 3 2.74 2.53
2
1
0
2003 2004 2005 2006 2007 2008
Years
INTERPRETATION:
From the above table it is observed that return on investment ratio it is decreased in the
year 2004 to 2005 and it increased from the year 2006 to 2008.This is due to
fluctuations in operating profit and increase in capital employed.
AITS, Rajampet 25
INTEREST COVERAGE RATIO (ICR):
This ratio establishes the relationship between profit before interest and tax and
Interest.
Operating Profit
Interest Coverage Ratio = ------------------------
Interest
Operating Profit =PBIT
CHART : 11 Calculation of ICR during the year 2003-2008 (Rs in crores)
Years pbit Interest Ratio Trend

2003 4.1 0.27 15.18 -
2004 3.93 0.7 5.61 DECREASE
2005 4.84 0.68 7.11 INCREASE
2006 6.21 0.53 11.71 INCREASE
2007 9.89 1.61 6.14 DECREASE
2008 14.64 2.18 6.71 INCREASE
GRAPH NO: 11
IC R
20
1 5 .1 8
15 1 1 .7 1
10
5 .6 17 .1 1 6 .1 46 .7 1
5
0
2 0 0 32 0 0 42 0 0 52 0 0 62 0 0 72 0 0 8
YEA RS
INTERPRETATION:
From the above table it is observed that interest coverage ratio is having fluctuating
from the year 2003 to 2008 year it is decreased in the year 2004 & 2007 due to
increase the year 2005,2006 2008 year .
AITS, Rajampet 26
NET PROFIT RATIO(NPR):

This ratio is called net profit sales ratio it is a measures of management’s
efficiency operating the business successfully from the owner’s point of view.Net profit
includes non operating incomes and profits.
Net profit after tax
NET PROFIT RATIO =----------------------------------*100
Net sales
CHART: 12 Calculation of NPR during the year 2003-2008 (Rs in crores)
Years PAT Net sales Ratio Trend
2003 1.28 236.26 0.54 -

2004 1.23 247.74 0.49 decrease
2005 1.05 247.83 0.42 decrease
2006 2.02 363.17 0.55 increase
2007 3.43 491 0.69 increase
2008 5.58 635.47 0.87 increase
GRAPH NO: 12
NPR
1 0 .8 7
0 .6 9
0 . 5 40 . 4 9 0 . 5 5
0 .5 0 .4 2
0
2003 2 0 0 24 0 0 25 0 0 26 0 0 27 0 0 8
YEAR
INTERPRETATION:
From the above table it is observed that net profit ratio decreased in the year
2004 to 2005 and it increased from the year 2006-2008. This is due to fluctuations in
PAT and increase in netsales.
AITS, Rajampet 27
SIMPLE CORRELATION TABLE
YEARS WCTR CTR ICR ROI

2003 9.67 3.47 15.18 3.47
2004 7.69 2.74 5.61 2.74
2005 8.15 2.53 7.11 2.53
2006 8.25 3.78 11.71 3.78
2007 10.47 5.51 6.14 5.51
2008 8.47 5.91 6.71 5.91
Coefficient of 0.0851
correlation 0.080 0.579 -
INTERPRITATION:
The coefficient of correlation between WCR and ROI is 0.0851.This shows that
they are moving in same/opposite direction.As thers is a 100% change in WCR leads to
100% change in ROI negatively/positively.
AITS, Rajampet 28
TREND ANALYSIS
The table shows the estimated values during 2003-2008
YEAR CURRENTRATIO PROPRIETOR NETPROFIT ROI

Y RATIO RATIO
2003 5.45 0.21 0.54 3.47

2004 8 0.19 0.49 2.74
2005 3.25 0.18 0.42 2.53
2006 2.69 0.17 0.55 3.78
2007 0.59 0.10 0.69 5.51

2008 1.03 1.73 0.87 5.91
Estimated 6.7 1.84 0.423 23.94
value for
2009
* = ESTIMATED VALUES
• The forecasted value of cueent ratio for 2009 is 6.7

• The forecasted value of proprietory ratio for 2009 is 1.84
• The forecasted value of netprofit ratio for 2009 is 0.423
AITS, Rajampet 29
FINDINGS
• The current is fluctuation the year current ratio is also decreased in the year 2005
to fluctuating the year due to increased 2004 & 2008 year.
• The quick ratio it is observed decreased in the year 2005 to 2007 fluctuating the
year due to increased the year 2004 &2008 year of the quick ratio.
• They absolute quick ratio is observed is decreased in the year 2004 to 2008 but it
is increased in 2007 year.
• The proprietary ratio share holder funds it is observed that ratio decreased in the
year 2004 to 2007.due to increase in 2008 year.
• The dept equity ratio is having fluctuations in the year 2004. it is increased due to
increase indebt equity ratio to increased in the years 2007 debt total borrowings.
• The working capital turn over ratio it is observed that turn over ratio is decreased
from the year 2004 and 2008 due to increased in the year 29\005 to 2007 year of
the working capital turn over ratio.
• It is observed that capital turn over ratio is decreased from the year 2004 and 2008
year due to increased in the year 2005 to 2007 year capital turn over ratio.
• The return on total asset it is observed that the ratio constant the years 2004 and
2008 year due to decreased in the 2005 year. But only increased in 2006 and 2008
year.
AITS, Rajampet 30
• The fixed assets ratio showing fluctuations. In the year 20043the fixed assets ratio
is high because of increasing of fixed assets. In the year 2006 it is low because of
decreasing of fixed assets.
• The interest coverage ratio is having fluctuating from the year 2003 to 2008
year it is decreased in the year 2004 & 2007 due to increase the year 2005,2006
2008 year .
• It is observed that the netprofit ratio decreased in the year 2004 and 2005 due to
increased in the year 2006 to 2008 of net profit ratio.
AITS, Rajampet 31
CONCLUSION
The study period reveals that the liquidity position of Vimal oil & food ltd
results are more of standard norms .Return on shareholders funds is more
and the Return on investment is also more because the company having
more operating due the company is in good position . The coefficient of
correlation between the working capital turn over ratio ,capital turn over
ratio ,and return on investment ratio is positive it means that the company
is in a good positio is good for that we can conclude that the company
should more concentrate on the liquidity area by concentrating on the
liquidity area the company well get the profits in the lesser time period . The
forecasted statistical values are also indicating the company well get the
good financial profits. Finally I can conclude that the vimal oil& food ltd
well become very good in the future.
AITS, Rajampet 32

Company Analysis Report On M/s Vimal Oil & Foods LTD

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Vimal &Oil Foods Ltd

-Members approve delisting from Delhi Stock Exchange

MAJOR EVENTS IN THE HISTORY OF THE COMPANY:

1992 Incorporation of the company as the limited company1993 50 TPD capacity

1992 Incorporation of the company as the limited company

1994 200 TPD Solvent Extraction Plant was commenced

1995 Additional Oil Refinery capacity of 100 TPD was commenced

1995 Company has set up a Wind Mill

1997 Company has set up a Milk Powder plant

1998 Award for the highest Exporter of Rapeseed De-oiled cakes

2003 Refining capacity was enhanced to 80,000 TPA. (approx. 300

2006 Implementation of Customised Enterprise Resource Planning System

INDUSTRY : VIMAL OIL *&FOODS LTD

ROC Reg. No. : 51577

Incorporation Year : 1989

Ownership : Private (Indian)

Website : WWWW. VIMALOIL .COM

ISIN Code : INE345E01013

BSE Demat Code : 523576

BSE Listing group :B

Face value (Rs) : 10

Directors Name Designation

Mahendrabhai V Patel Director

Mukesh N Patel Director

Harnarayan J Patel Director

BSE CODE: 519373 NSE CODE: Not Available

 To know the liquidity activity and profitability position of the company

 To determine the impact of selected ratios on profitability

Total expenses 237.53 247.32 249.12 365.27 496.41 634.6

PBDITA 5.08 4.95 5.83 7.21 11.34 17.19

Net worth 9.96 10.42 10.64 14.64 14.93 24.5

Total borrowings 26.87 34.33 30.7 38.73 47.25 69.8

Total assets 46.86 55.28 60.98 84.98 144.37 146.12

Liquidity ratios (times)

Efficiency ratios (times)

Net pre-operative expenses pending allocation 0 0 0 0 0 0

Net fixed assets 13.95 12.81 11.77 11.79 14.55 20.36

Investments 0.01 0.01 0 0 0 0

Market value of quoted investments 0 0 0 0 0 0

Deferred tax assets 0 0 0 0 0.12 0

Current assets 31.64 39.92 47.31 73.06 126.13 123.15

Loans & advances 1.23 2.54 1.9 0.05 2.26 2.61

Total assets 46.86 55.28 60.98 84.98 144.37 146.12

Net worth 9.96 10.42 10.64 14.64 14.93 24.5

Reserves & surplus 5.41 5.87 6.09 7.59 10.38 14.95

Total borrowings 26.87 34.33 30.7 38.73 47.25 69.8

Secured borrowings 18.73 26.3 21.15 26.76 40.3 52.71

Deferred tax liability 2.81 2.81 2.73 2.57 2.94 3.62

Total liabilities 46.86 55.28 60.98 84.98 144.37 146.12

PBIT 4.1 3.93 4.84 6.21 9.89 14.64

PBT 1.82 1.81 1.71 3.28 5.5 8.71

PAT 1.28 1.23 1.05 2.02 3.43 5.58

PBDITA net of P&E 5.08 4.65 5.83 7.32 11.39 17.24

Distribution of profits (%)

NATURE OF RATIO ANALYSIS

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as “the

Ratio analysis was pioneered by Alexander. Interpretation of financial statements

TABLE NO: 1 calculation Of CR during 2003-2008 (RS in Crores)

Years C.A’S C.L’S Ratio Trend

(b)QUICK RATIO (QR):

TABLE NO: 2 Calculation of QR during 2003-2008 (RS in Crores)

(c) ABSOLUTE QUICK RATIO (AQR):