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bharti (Querist)

30 November 2009 Pls help me with my final accountancy project........
from the balance sheet of DABUR INDIA LTD.
I've ascertained following......

Gross Profit Ratio increased by - 1.06%

Return on Investment increased by - 1.20%

Net Profit Ratio increased by - 0.99%

Earning Per Share increased by - from Rs.1.24 to Rs.1.62

what is concluded from above information???

pls reply this query as soon as possible

I'm to submit this project tomorrow.....
thnx.

CA. SUDHARSAN K G

CA. SUDHARSAN K G (Expert)

30 November 2009 My Analysis

a) GP is Incresed. Hence, there should be increase in Sale.
b) NP is Incresed. However, it is not to the Proportionate of GP. So, there is a Variable Increase in Costs.
c) ROI is Incresed because of Earnings Increased.
d) EPS is Incresed by Rs.0.38. Hence there is a benefit to Share Holders.

shakuntala chhangani

shakuntala chhangani (Expert)

02 December 2009 Hi Bharti, the answer is,
1) GP has increased, it means either COGS has reduced or sales/selling price has increased.
2) since GP has increased, increased in ROI is obvious. However, increase in ROI is more than increase in GP, it means the co. must be exercising effective control on its Admn and Selling and distribution exp.
3)Due to higher GP and ROI, NP has increased.
4) due to increased NP and no. of shares remaining the same, EPS available to shareholders has increased by Rs. 0.38. this has increased shareholders equity.

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