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 companys 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.