An Analytical Study of Three Year

8/3/2019 An Analytical Study of Three Year

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Navneet Publications (India) Limited

Submitted to:-

Prof. Angha dixit

Submitted by:-

Sammar Qureshi

S.Y.B.B.A:- B

Roll no:-178



CERTIFICATE

This is to certify that a financial report based on analysis of threeconsecutive latest annual report of NANVEET PUBLICATION (INDIA)

LIMITED is submitted by Ms.SAMMAR QURESHI M.SALIM to

N.R.Institute of Business Administration afflicted to Gujarat University in

partial requirement of completion of S.Y.B.B.A Programme for the

academic year 2011-12

___________ ____________ _________

Director Prof-in-charge External Prof.



ACKNOWLEDGEMENT

The successful completion of this financial reportswould have been possible without the co-operation & support of our

institute¶s teachers, friends. I also extend my thanks to my Prof. Angha

dixit & for the co-operation in preparing me this financial report.

I am also grateful to NAVNEET PUBLICATION INDIA LTD.

To provide this information about the report. I am also grateful to Gujarat

University for including report as part of the curriculum of the B.B.A.



PREFACE

Finance is very important aspect in any business.Financial management is concerned with such matter as how a

business. Corporation raised its finance &how its makes use of it.

In today era only the ordinal knowledge is not sufficient to survivein the competition pratical knowledge is also required. So as the part of S.Y.B.B.A. Programme, we are supposed to prepare a financial report.The objective for this preparation is not only to know about the financialperformance of the company in different years.

I have prepared this financial report on the basis of annual reportlast 3years as 2008-09, 2009-10, 2010-11. I have also based auditor¶sreport director¶s report also finance subject we should make the financereport. The company Navneet publication (India) Ltd. is a very goodposition company.



INDEX

Sr.no

TOPIC Pg.no

1. COMPANY PROFILE1.1 name of company1.2 registered address of the company1.3 brief introduction of the activities of the business1.4 status in the market1.5 special achievement1.6 financial highlights (profit, sales, EPS)1.7 Meaning of analysis and objective of study

2. RESULT OF OPERATIONS2.1 profit of three years GP, NP, EBIT, EBT, EAT

2.2 meaning and importance of cash flow statement2.3 cash flow statement of company concerned2.5 conclusion

3. RATIO ANALYSIS3.1 meaning,impotance,limitation classification of

Ratio analysis3.2 profitability ratio3.3 activity/turnover ratio3.4 liquidity ratio3.5 leverage ratio

3.6 coverage ratio4 ACCOUNTING POLIOCIES AND NOTES

5 DIRECTOR¶S REPORT

6 AUDITOR¶S REPORT

7 COMMON SIZED STATEMENT



Chapter: 1 COMPANY PROFILE



1.1 Name of the company

NAVNEET PUBLICATION INDIA LIMTED

1.2 Registered Address of the Company

Address: Navneet Bhavan, Bhavani

Shankar road, Dadar (w)

Mumbai ± 40028

1.3 Activities of the company:

Navneet Publications India Limited, founded by the Gala Family, isin the business of Educational and children Books Publishing, Scholasticpaper stationery and non-paper stationery products.

Since 1959, Navneet has been a major force in the dissemination of knowledge. NAVNEET is a dominant player in the field of publishing,with more than 5000 titles in English, Hindi, Marathi, Gujarati and foreignlanguages.

In 1987, to further strengthen and consolidate the business of bookpublishing, NAVNEET installed ultramodern printing press at Dental,District Gandhinagar, Gujarat. By 1991, sophisticated printing andbinding machineries had been imported to complete the modernisation-cum-expansion plans of the company.

Over the decades, Navneet has emerged as a leading EducationalProducts and Services company in India. The company's productsare sold under the 'Navneet', 'Vikas', 'Gala', µFfUuNn', µBoss' andµNavneet Nxt' brand names. It's portfolio of syllabus based Booksincludes high quality supplementary books like Digests (Guides),Workbooks and 21 Question Sets, most of which are published in four

languages - English, Hindi, Marathi and Gujarati. The company has adominant market share in Gujarat and Maharashtra. Also with the newrange of supplementary books targeting the students from CBSE andICSE boards, Navneet's educational products are now made availableacross India



Navneet also produces various titles in the Children and General bookscategory, which is not, based on syllabus, such as activity books for children, board books, story books, health related books, cookery books,mehendi & embroidery books, etc.

In 1993, Navneet saw opportunity in the exports of Stationery productsfor which it now has state-of-art manufacturing facilities in Vasai (near Mumbai) Daman and Silvassa (Union Territories bordering Maharashtraand Gujarat). In the same year Navneet also launched its paper stationery products for the domestic market. Products range includestight bind note books, long books; hard case bound books and drawingbooks.

The company enjoys leading position in premiere stationery markets inIndia, the Middle East, parts of Africa, U.S.A. and Europe. With now

more than 500 SKU's, Navneet is one of the largest paper stationerybrand in India.

In 2006, taking the success of the Paper Stationery products further,Navneet launched its first range of non-paper stationery ± FfUuNnPencils. The company has aggressive plans in this segment

1.4 Status in the market

It is good position company. It has good status market. It has

been spread all over India. It products are well diminished in the market

1.5. Special Achievement

Stationery segment has been growth driver during the year

under review, the domestic stationers vertical achieved 36% growth forthyear under review is expected to growth at 25% in the current year. Cost

cutting has been the philosophy around the world the year under review

and the drive is across the board in many organisations.



1.6. Financial highlights

2008-09 2009-10 2010-11

Operating profit (PBDT) 9862 11427 12935

Depreciation 1171 1164 1144

Tax 2797 3466 4036Net profit (PAT) 5894 6798 7755

Dividend 2477 2382 3335

Dividend (%) 52 50 70

Sales 50490 52220 54850

Eps (Rs 2 per share %) 2.5 2.9 2.3

1.7 Meaning of analysis and objective of study:

Analysis:

The practice of examining information to determine

what conclusions it indicates. The information observed in

analysis depends on the type of analysis being conducted.

Objective of study:

To know the financial situation and objectives of the company. Also to know how company makes its balance

sheet, profit and loss statement, cash flow statement etc.



Chapter: 2 Result of Operation



2.1 Profit of 3 years (in lacs)

Profits 2008-09 2009-10 2010-11

GP 42.66 44.48 46.71

NP 11.67 13.02 14.14

EBIT 9862 11428 12935EBT 8691 10264 11791

EAT 5894 6794 7755

2.2 Meaning and importance of cash flow

Meaning:-

A statement that shows the amount of cash flowing intoflowing groups out of business is known as ³cash-flow statement.

Importance:-

As we have seen, cash flow statement is useful to

management in short term planning of liquidity. It is prepare by

comparing figure of last 2 years. Its utility can be stated as follows:-

1. Efficient cash management:

If the finance manger has a clear

idea of cash receipts and payments, cash resources can be

efficiently managed. If the cash payments are planned at a time,

when enough cash inflow is likely, it is possible to manage

business with minimum of working capital. Excess cash found at

that time may be profitably invested for the time being profitability

is increased.

2. Useful for internal finance management:

The management can planned out payment of dividend,

repayment of long term loans, purchase of machines or equipments

etc. If it has good idea about the timing when enough cash will be on



hand. This will avoid the possibility of borrowing funds at high rate of

interest.

3. Information about cash receipts and payments:

Such a statement will give information

about the trend of cash receipts and payments. Such information is

useful to management in meeting any future contingencies and also in

seizing any profitable opportunity.

4. Useful for control:

The historical cash flow statementprepare for last year is useful for comparing the figure of cash budgets

and points of differences may be located. This facilities managerial

control on the use of cash.

5. Ease in obtaining funds:

By comparing the figure of cash flow

statement and cash budgets, the cash planning and control becomemore effective. Liabilities are easily paid as and when they mature. This

position improves and raises the prestige of the firm in the market. This

facilities raising of additional funds easily when needed.

2.3 cash flow of company concerned:



CASH FLOW STATMENT

For year ended

2008-09

_________________________________________________________

Rs. In lacs

Cash flow for operating activities

Net profit before tax 8691

Adjustment for,

Interest & financial income (non operational) 260

(profit)/loss on sale of fixed asset (1)(profit)/loss on sale of investments (4)

interest and financial expenses 402

deprecation 1171

change in current asset and liabilities

(Increase)/ decrease in inventory (2274)

(increase)/ decrease in debtors (720)

(increase)/ decrease in loans and advances (187)

(increase)/ decrease in current liabilities and provision 611income tax paid (2884)

_________________________________________________________

Net cash flow/ (outflow) from operating Activities (A) 5064

cash flow from investing activities

Purchase of fixed asset and change in capital WIP (1193)

proceeds from sales of fixed asset 40

(increase)/ decrease in investment other than subsidiary (870)

(increase)/ decrease in investment in subsidiary (262)(Profit)/ loss on sale of investments 4

interest & financial income 199

_________________________________________________________

Net cash inflow/ (outflow) from investing Activities (B) (2082)

cash flow from financing activities



(Increase)/ decrease in share capital -

(increase)/ decrease in loan fund (1846)

interest and financial expenses (861)

Dividend paid (including dividend tax) (69)

_________________________________________________________Net cash inflow/ (outflow) from financing Activities (C) (2776)

Net increase/ (decrease) in cash and cash Equivalents 206

cash and cash equivalent as at the commencement of the year 424

cash and cash equivalent as at the end of the year 630

Net increase/ (decrease) as mention above 206

Notes: (1) cash and cash equivalent includes

cash, cheque in hand and remittance in transit 36

Balance with banks 594

_________________________________________________________



CASH FLOW STATMENT

For year ended

2009-10

_________________________________________________________

Rs. In lacs



Adjustment for,

Interest & financial income (non operational) (472)



deprecation 1164


(Increase)/ decrease in inventory 1856


(increase)/ decrease in loans and advances 40

(increase)/ decrease in current liabilities and provision (592)income tax paid (3270)

_________________________________________________________





(increase)/ decrease in investment other than subsidiary 870

(increase)/ decrease in investment in subsidiary (234)(Profit)/ loss on sale of investments 4


_________________________________________________________










Net increase/ (decrease) in cash and cash Equivalents 455



Net increase/ (decrease) as mention above 455




_________________________________________________________



CASH FLOW STATMENT

For year ended

2010-11

_________________________________________________________

Rs. In lacs



Adjustment for,

Interest & financial income (non operational) (411)



deprecation 1144


(Increase)/ decrease in inventory (444)


(increase)/ decrease in loans and advances (2272)

(increase)/ decrease in current liabilities and provision (24)income tax paid (3959)

_________________________________________________________





(increase)/ decrease in investment other than subsidiary -

(increase)/ decrease in investment in subsidiary -(Profit)/ loss on sale of investments 114


_________________________________________________________










Net increase/ (decrease) in cash and cash Equivalents (39)



Net increase/ (decrease) as mention above (39)




_________________________________________________________



2.4 CONCULSION:

Whether the increase or decrease in cash flow the separate

activities but overall cash & cash equivalents have increased to a great

extent. In 2009 it was 594 and in the year 2011 it is 1051 that means an

increase of 457. It can be caused a remarkable increase which shows

the strong financial position of the company

In operating activities expenses is higher in 2011 as compared to

2010.in the year 2010 the investing expanses is higher as compared to

2010 & the financial expanses is higher in the year 2011 as compared to

2010 so the overall the company¶s situation is very good in performance

of overall expenses .



Chapter 3: RATIO ANALYSIS



3.1 Meaning, Importance, Limitations and classification of Ratio

Analysis:

Meaning:

If relationship between various related items in these

financial statements is established, they can provide useful

clue to gauge accurately the financial health and ability of

business to make profit. This relationship between the two

related items of financial statement is known as ratio

analysis.

Importance:

a) On the basis of profitability ratios, investors get an idea about

the overall efficiency of business, the management gets an

idea about the efficiency of managers and bank as well as

other creditors draws useful conclusions about repaying

capacity of the borrowers.

b) Banks and other lenders will be able to conclude from

liquidity ratios whether the firm will be able to pay regularly

the interest and loan instalments.

c) All turnover ratios related to sales present a good picture of

the success or otherwise of the business.

d) With the help of ratio inter-firm comparison becomes

possible, which shows the strength and weakness of the firm

as compared to other firms and will indicate corrective

measures.

e) The efficiency of various departments can be judged on the

basis of their profitability ratios and efficiency of each

department can thus be determined.



Limitations:

a) The utility of ratios computed from the financial statements of

one year only is obviously limited.

b) While comparing ratios of different firms, it must be

remembered that different firms accountancy plans andpolicies.

c) While comparing ratios of past several years, it should be

remembered that changes in price level may render such

comparison useless.

d) One ratio used without reference to other ratios may be

misleading.

e) There is practically no standard ratio against which the actual

performance can be compared.

f) The accounting ratios can never be more correct than the

information from which they are computed.

Classification:

a) Traditional classification:

The ratios are grouped into basis of the

financial statement from which the figures are taken for computing the

ratios. The ratios according to the classification are:

i. Revenue statement ratios: These are the ratios

computed on the basis of items taken from revenue

statement i.e. Profit and Loss account.

ii. Balance sheet ratios: When two items or groups of

items appearing in the balance sheet are compared,

the ratio so obtained is a balance sheet ratio.

iii. Composite ratios: A ratio showing the relationship

between one item taken from balance sheet and

another taken from Profit and Loss account is a

composite ratio.



iii. Leverage ratio:

The composition of capital of business and

the proportion of owners capital and capital provided by

outsiders are reflected by leverage ratios:

y Proprietary ratio

y Debt Equity ratio.

y Gearing ratio.

y Fixed capital ratio.

y Coverage ratio.

iv. Activity ratios:

These are the ratios showing theeffectiveness with which the resources of the business

are employed. It signifies the efficiency of the

management.

y Stock turnover.

y Debtors ratio.

y Current asset turnover.

y Fixed assets turnover.

y Total assets turnover.

3.2 Profitability Ratio:



1. GROSS PROFIT RATIO:

It is a ratio expressing relationship between gross

profits earned from net sales. It is useful indication of theprofitability of business. It shows whether the mark of obtained and

cost of production is sufficient.

Formula:

Gross profit ratio = gross profit/sales*100

Gross profit= sales cogs

Calculation:

2008-09

18187/50490*100

=36.02%

2009-10

24838/52220*100

= 47.26%

2010-11

25302/54850*100

= 46.12%



TABLE OF THREE YEAR RATIO:

2008-09 2009-10 2010-11G.P(RS) 18187 24838 25302

SALES 50490 52220 54850

G.P (%) 36.02 47.26 46.12

INTERPRETATION:

This ratio indicates an average gross margin

earned on sales 100. The higher ratio the more efficient, theproduction & purchase management and lower the ratio,

inefficiency of management. Here is continuously increasing in

business.

2. NET PROFIT RATIO:

This ratio is valuable for the purpose of

ascertaining the overall profitability of business and it shows the

the efficiencies of operating the business. The reasonable ratio

ensures adequate return to the owners and so it is great

significance to owner.

FORMULA:

Net profit ratio = net profit*(PAT) *100

Sales



CALCULATION:

2008-09

5894/50490*100

= 11.67

2009-10

6798/52220*100

=13.02%

2010-11

7755/54850 *100

= 14.14%


2008-09 2009-10 2010-11

N.P(RS) 5894 6798 7755

SALES 50490 52220 54850

N.P (%) 11.67 13.02 14.14



INTERPRETATION:

This ratio indicates an average operating cost incurred

on sales of goods worth Rs.100 lower the ratio greater the operating

profit to cover the non-operating expenses to pay the dividend and to

create reserves and vice-versa. Here it is seems that the ratio is lower

which means company management is not good and they management

sufficiently.

3. OPERATING RATIO:

It is a ratio showing relation between cost of

goods sold plus operating expenses and net sales. It shows the

efficiency of the management.

FORMULA:

: Operating Ratio = cogs+ operating exp*100

Sales

CALCULATION:

Operating ratio = cogs+operatingexp/sales*100

2008-09

32363+7595/50490*100=79.14%

2009-10

27342+8234/52220*100



= 68.12

2010-11

29548+8358/54850*100= 69.11


2008-09 2009-10 2010-11

COGS 32363 27342 29548OPERATING EXP 7595 8234 8358

SALES 50490 52220 54850

OPERATING (%) 79.14 68.12 69.11

INTERPRETATION:

Here the operating ratio is showing the better

management efficiency in the business but in year 2009-10 decrease

from 79.14% to 68.12% and in year 2010-11 again is increasing from

68.12% to 69.11%. Lower the ratio is better for the company.

3. EXPENSES RATIO:

For the purpose of ascertaining relationship

between operating expenses and net sales, expenses ratio are

computed.

FORMULA:

Expenses ratio = expenses*100

Sales



CALCULATION:

Expenses ratio= expenses/sales*100

2008-09

7595/50490*100

= 15.05%

2009-10

8234/52220*100

= 15.77%

2010-11

8358/54850 *100

= 15.24%


2008-09 2009-10 2010-11

EXPENSES(RS) 7595 8234 8358

SALES 50490 52220 54850

EXPENSES (%) 15.05 15.77 15.24

INTERPRETATION:

Between the ratios, better for the business when

expenses are lower, it is good for the business. But in the company,

2008-09 to 2009-10 the ratio decreasing and than 2010-11 it is

increasing. It is not that good but satisfaction for the company.



4. RETURN ON CAPITAL EMPLOYED:

It is an index of profitability of business

obtained by comparing net profit with capital employed.

FORMULA:

Capital employed = EBIT *100

Capital employed

CALCULATION:

Capital employed = EBIT/capital employed*100

2008-09

8691/27603 *100

= 31.49%

2009-10

10264/31528 *100

= 32.56%

2010-11

11791/35100 *100

= 33.59%


2008-09 2009-10 2010-11

EBIT 8691 10264 11791CAPITAL EMPLOYED(RS) 27306 31528 35100

CAPITAL EMPLOYED (%) 31.49 32.56 33.59



INTERPRETATION:

In the company, the year 2008-09 R.O.A.C.E ratio

31.49% and then 2009-10 it is increased by 32.56% so it is good for the

business when return on capital is higher so it is good for the business

and shareholder

5. RETURN ON SHAREHOLDER FUND:

This ratio measures the profitability in relation to

owners funds. So it is also known as return on proprietors¶ fund or

Return on owners funds or return on shareholders Investment. This

ratio shows that amount of dividend is likely to be received on share.

FORMULA:

Return on shareholder fund = ____PAT_______ *100

Shareholder fund

CALCULATION:

2008-09

5894/26094 *100

= 22.59%

2009-10

6798/30061 *100

= 22.61%

2010-11

7755 /33942*100

= 22.85%




PARTICULAR 2008-09 2009-10 2010-11

NET PROF

IT 5894 6798 7755SHAREHOLDER¶S FUND 26094 30061 33942RATIO 22.59 22.61 22.85

INTERPRETATION:

After studying return on shareholder equity the return on

money is being increasing. In year 2008-09 to 2010-11 the ratios are

22.59% to 22.58% than it said that it is increasing. So it can said that

company is in good position and working in good position.

6. RETURN ON EQUIT Y SHARE CAPITAL:

It indicates profitability of a firm from the

viewpoint of real owners who are ordinary shareholders, who bear all

risks of business.

FORMULA:

Return on Equity share capital = PAT-Preference Dividend/

Equity share capital*100

CALCULATION:

2008-09

6894-0/1906*100

= 309.329%

2009-10

6798-0/4764*100



= 142.70%

2010-11

7755-0/4764*100

= 162.78%


2008-09 2009-10 2010-11

PAT 6894 6798 7755

PREFERENCE DIVIDEND 0 0 0

Eq.SHARE CAPITAL 1906 4764 4764

RATIO 309.329 142.70 162.78

INTERPRETATION:

In the above table we can see that Return on Equity share

capital has been fluctuating. In year 2009-2010 Return on Equity share

capital has decreased 166.629% as compared to year 2008-2009. In the

year 2010-2011 Return on Equity share capital has decreased

146.549% as compared to year 2008-2009 and 20.08% as compared

2009-2010 respectively.

7. RETURN ON Eq. SHAREHOLDER FUNDS:

This ratio shows the profit available to only equity

shareholders in relation to capital invested by them.

FORMULA:

Return on Equity shareholder¶s fund = PAT-Preference Dividend/Equity share fund*100



CALCULATION:

2008-09

5894-0/26094*100

= 22.59%

2009-10

6798-0/30061*100

= 22.61%

2010-11

7755-0/33942*100

= 22.85%


2008-09 2009-10 2010-11

PAT 5894 6798 7755

PREFERENCE DIVIDEND 0 0 0EQUITY SHARE FUND 26094 30061 33942

RATIO 22.59 22.61 22.85

INTERPRETATION:

In the above table we can see that Return on Equity

shareholder¶s fund has been increasing. In year 2009-2010 Returnon Equity shareholder¶s fund has increased 22.61% as compared

to year 2008-2009. In the year 2010-2011 Return on Equity

shareholder¶s fund has increased 22.85% as compared to year

2008-2009 and 22.59% as compared to year 2009-2010

respectively.



8. EARNING PER SHARE:

This ratio measures the profit available to equity

shareholders on per share basis.

FORMULA:

Earnings per share = PAT-Preference dividend/No. Of Equity

shares

CALCULATION:

2008-09

5894-0/2382.15

= 2.47%

2009-10

6798-0/2382.15

= 2.85%

2010-11

7755-0/2382.15

= 3.26%


2008-09 2009-10 2010-11

PAT 5894 6798 7755

PREFERENCE DIVIDEND 0 0 0NO. OF EQUITY SHARE 2382.15 2382.15 2382.15

RATIO 2.47 2.85 3.26



INTERPRETATION:

In the above table we can see that Earnings per share

are increasing. In year 2009-2010 Earnings per Share has

increased 0.38% as compared to year 2008-2009. In the year

2010-2011 Earnings per share has been also increased by 0.79%as compared to year 2008-2009 and has increased 0.41% as

compared to year 2009-2010.

9. DIVIDEND PER SHARE:

Dividend per share is the amount of actual

dividend paid to equity shareholder¶s divided by the no. Of equity

shares outstanding.

FORMULA:

Dividend per share = Total dividend declared/No. Of

shares

CALCULATION:

2008-09

2477/2382.15

= 1.04%

2009-10

2382/2382.15

= 1%

2010-11

3335/2382

= 1.40%




2008-09 2009-10 2010-11

TOTAL DIVIDEND 2477 2382 3335

NO. OF SHARES 2382.15 2382.15 2382.15

RATIO 1.04 1 1.40

INTERPRETATION:

In the above table we can see that dividend per share is

fluctuating. In 2009-10 it decreased by 0.04% by comparing of 2008-09.

In 2010-11it increased by 0.36% and0.40% by comparing 2008-09 and

2010-11.

10. PRICE EARNING RATIO:

It shows relation between the market price of the

shares and EPS.

FORMULA:

Market value per share/ earning per share

CALCULATION:

2008-09

/2.47

=

2009-10

/2.85

=

2010-11



= /3.26


2008-09 2009-10 2010-11

MARKET VALUE PER SHAREEARNING PER SHARE 2.47 2.85 3.26RATIO

INTERPRETATION:

11. DIVIDEND YIELD RATIO:

The Dividend yield is the percentage of dividend

actually received to the market value per equity share.

FORMULA:Dividend yield ratio = Dividend per share/Market value per

share

CALCULATION:

2008-09

1.04/

=

2009-10

1/



=

2010-11

1.40/

=


2008-09 2009-10 2010-11

DIVIDEND PER SHARE 1.04 1 1.40

MARKET VALUE PER SHARE

RATIO

INTERPRETATION:

3.2 ACTIVITY TURNOVER RATIO:

1. FIXED ASSET TURNOVER RATIO:

To ascertain the efficiency and

profitability of the business, the total fixed assets are compared

to sales.

FORMULA:

Fixed Assets turnover ratio = Sales/Fixed Assets



CALCULATIONS:

2008-09

50490/18506

= 2.73%

2009-10

52220/19338

= 2.70%

2010-11

54850/23188

= 2.37%


2008-09 2009-10 2010-11

SALES 50490 52220 54850

FIXED ASSET 15806 19338 23188RATIO 2.73 2.70 2.37

INTERPRETATION:

In the above table we can see that Fixed Assets

turnover ratio IS decreasing den remained same in the year 2010-2011.

In year 2009-2010 Fixed Assets turnover ratio has decrease from 2.70%

to 2.73% as compared to year 2008-2009. In the year 2010-2011 Fixed

Assets turnover ratio has decrease 2.37 % as compared to year 2008-2009 and has remained same as compared to year 2009-2010.

2. Debtor ratio:

The ratio shows the no. Of days taken to collect the

dues of credit sales



FORMULA:

Debtors ratio = Debtors/R/Average daily sales * no. Of

working days

CALCULATIONS:

2008-09

8131-0/50490*365

= 44 days

2009-10

17563-0/52220*365

= 53 days

2010-11

806890-0/54850*365

= 54 days


2008-09 2009-10 2010-11DEBTORS 8131 17563 806890

BILL RECEVIABLE 0 0 0

SALES 50490 52220 54850RATIO(DAYS) 44 53 54



INTERPRETATION:

In the above table we can see that debtors ratio of the

year 2010-2011 has increased in comparison to 2009-2010. In year

2010-2011 debtors ratio has increased 8% as compared to 2009-2010.

3. DEBTOR TURNOVER RATIO:

The debtors turnover suggests the no. Of

times the amount of credit sales is collected during the year

.

FORMULA:

Debtors turnover ratio = No. Of days/Average Debtors

CALCULATIONS:

2008-09

365/44

= 8.30 %

2009-10

365/53

= 7%

2010-11

365/54

= 7%




2008-09 2009-10 2010-11

NO OF DAYS 365 365 365

DEBTOR RATIO 44DAYS 53 DAYS 54 DAYS

RATIO(DAYS) 8.33 7 7

INTERPRETATION:

In the above table we can see that debtors turnover ratio

of the year 2010-2011 has decrease in comparison to2008-09. In year

2009-10 and 2010-2011 debtors turnover ratio has remain same.

4. CREDITORS RATIO:

The no. Of days within which we make

payment to our creditors for credit purchases is obtained from

creditors velocity.

FORMULA:

Creditors Ratio = Creditors-B.P./Credit purchase*365

CALCULATIONS:

2008-09

1451-0/26747*365

= 20 days

2009-10

1411-0/24201*365

= 22 days



2010-11

2018-0/26361*365

= 28 days


2008-09 2009-10 2010-11

CREDITORS 1451 1411 2018

BILL-PAYABLE 0 0 0

CREDIT PURCHASE 26747 24201 26361RATIO 20 22 28

INTERPRETATION:

In the above table we can see that creditors ratio is

increasing constantly. In year 2009-2010 Creditors ratio has increased

from20% to22% as compared to year 2008-2009. In the year 2010-2011

Creditors ratio has increased to 20% to 28 % as compared to year 2008-

2009 and has increased 22% to28% as compared to year 2009-2010.

Hence we can say that debts of the company have increased.

5. CREDITORS TURNOVER RATIO:

The creditors ratio suggests the

no. Of times the amount of credit purchase is done during the

year.

FORMULA:

Creditors Turnover ratio = No of days/Average Creditors



CALCULATIONS:

2008-09

365/20

= 18 %

2009-10

365/22

= 17%

2010-11

365/28

= 13%


2008-09 2009-10 2010-11

NO OF DAYS 365 365 365

CREDITORS RATIO 20DAYS 22 DAYS 28 DAYSRATIO 18 17 13

INTERPRETATION:

In the above table we can see that creditors turnover ratio is

decreasing constantly. In year 2009-2010 Creditors turnover ratio has

decreased by 18% to 17% as compared to year 2008-2009. In the year

2010-2011 Creditors turnover ratio has decreased by 18% to 13 % as

compared to year 2008-2009 and 17% to 13% as compared to year 2009-2010 respectively.



6. STOCK TURNOVER RATIO:

It shows the no. Of times the average stock is turned

over during the year.

FORMULA:

Stock turnover ratio = Cost of sales/Average stock

CALCULATION:

2008-09

32303/11700.5

= 2.76%

2009-10

27342/12645.2

= 2.16%

2010-11

29548/12075

= 2.44%


2008-09 2009-10 2010-11

COGS 32303 27342 29548

AVERAGE STOCK 11700.5 12645.2 12075

RATIO 2.76 2.16 2.44



INTERPRETATION:

In the above table we can see that stock turnover ratio is

fluctuating. In year 2009-2010 stock turnover ratio has decreased from

2.76% to 2.16% as compared to year 2008-2009. In the year 2010-2011

stock turnover ratio has decreased from 2.76% to 2.44% as compared toyear 2008-2009 and increased from 2.16% to 2.44% as compared to

year 2009-2010 respectively.

7. WORKING CAPITAL TURNOVER RATIO:

A measurement comparing the depletion of

working capital to the generation of sales over a given period.

FORMULA:

Working capital turnover = Sales/Net working capital

CALCULATION:

2008-09

50490/22593= 2.23%

2009-1052220/26338= 1.98%

2010-1154850/26650

= 2.06%

TABLE OF THREE YEAR RATIO:2008-09 2009-10 2010-11

SALES 50490 52220 54850

NET WORKINGCAPITAL 22593 26338 26650

RATIO 2.23 1.98 2.06



INTERPRETATION:In the above table we can see that Working capital

turnover ratio is fluctuating. In year 2009-2010 Working capital turnover ratio has decrease from 2.23% to 1.98% as compared to year 2008-2009. In the year 2010-2011 Working capital turnover ratio has

decreasing by0.17 % as compared to year 2008-2009 and hasincreased by 0.08% as compared to year 2009-2010

8. BOOK VALUE PER SHARE: A financial measure that represents a per

share assessment of the minimum value of a company's equityis known as book value per share.

FORMULA:Book value per share = Proprietors fund/No. Of share

CALCULATIONS:

2008-09

26094/2382.15

= 10.45%

2009-10

30061/2382.15

= 12.62%

2010-11

33942/2382.15

= 14.25




2008-09 2009-10 2010-11

PROPRITER FUND 26094 30061 33942

NO OF SHARES 2382.15 2382.15 2382.15

RATIO 10.45% 12.62% 14.25

INTERPRETATION:

In the above table we can see that Book Value per share

is increasing. In year 2009-2010 Book Value per share has increased

4.52% as compared to year 2008-2009. In the year 2010-2011 Book

Value per share has increased 7.54 % as compared to year 2008-2009

and has increased 3.17% as compared to year 2009-2010.

3.3 LIDQUITY RATIO:

1. CURRENT RATIO:

This ratio shows the proportion of current assets to

current liabilities.

FORMULA:

Current ratio = Current Assets/Current Liabilities

CALCULATIONS:2008-09

28884/8291

= 4.59%

2009-10



29217/2880

= 10.90%

2010-11

31750/5100

= 6.23%


2008-09 2009-10 2010-11

CURRENT ASSET 28884 29217 31750

CURRENT LIABILITY 8291 2880 5100

RATIO 4.59 10.90 6.23

INTERPRETATION:

In the above table we can see that Current ratio is

fluctuating very minorly. In year 2009-2010 Current ratio has

increased by 4.59% to10.90% as compared to year 2008-2009. In

the year 2010-2011 Current ratio has decreased by 10.90% to

6.23% as compared to year 2008-2009 and has increased 6.31%

as compared to year 2009-2010.

2. LIQUIDIT Y RATIO:

It is variant of current which is designed to show the

amount of funds to meet immediate payments.

FORMULA:

Liquid ratio = Liquid assets/Liquid liability



CALCULATIONS:

2008-09

9812/6291

= 1.56%

2009-10

12001/2880

= 4.17%

2010-11

14090/5100

= 2.76%


2008-09 2009-10 2010-11LIQUID ASSET 9812 14090 14090

LIQUID LIABILITY 6291 5100 5100

RATIO 1.56 4.17 2.76%

INTERPRETATION:

In the above table we can see that Liquid ratio is

fluctuating. In year 2009-2010 Liquid ratio has increased by 2.61%

as compared to year 2008-2009. In the year 2010-2011 Liquid

ratio has increased 1.2% as compared to year 2008-2009 and has

decreased 1.41% as compared to year 2009-2010.

3. ACID TEST RATIO:

A stringent indicator that determines whether a firm

has enough short-term assets to cover its immediate liabilities

without selling inventory.



FORMULA:

Acid test ratio = Quick assets/liquid liabilities

CALCULATIONS:

2008-09

630/6291

= 0.10%

2009-10

1085/2879

= 0.38%

2010-11

1046/5100

= 0.20%

TABLE OF THREE YEAR RATIO:2008-09 2009-10 2010-11

QUICK ASSET 630 1085 1046


RATIO 0.10 0.38 0.20

INTERPRETATION:


fluctuating. In year 2009-2010 Liquid ratio has increased by 0.28% as

compared to year 2008-2009. In the year 2010-2011 Liquid ratio has

increased by 0.10% as compared to year 2008-2009 and has decreased

by 0.18 % as compared to year 2009-2010.



3.5. LEAVERAGE RATIO:

1. CURRENT RATIO:

This ratio shows the proportion of current assets to current

liabilities.

FORMULA:

Current ratio = Current Assets/Current Liabilities

CALCULATIONS:

2008-09

28884/8291

= 4.59%

2009-10

29217/2880

= 10.90%

2010-11

31750/5100

= 6.23%




2008-09 2009-10 2010-11

CURRENT ASSET 28884 29217 31750

CURRENT LIABILITY 8291 2880 5100

RATIO 4.59 10.90 6.23

INTERPRETATION:

In the above table we can see that Current ratio is

fluctuating very minorly. In year 2009-2010 Current ratio has

increased by 4.59% to10.90% as compared to year 2008-2009. In

the year 2010-2011 Current ratio has decreased by 10.90% to

6.23% as compared to year 2008-2009 and has increased 6.31%

as compared to year 2009-2010.

2. LIQUIDIT Y RATIO:

It is variant of current which is designed to show the

amount of funds to meet immediate payments.

FORMULA:

Liquid ratio = Liquid assets/Liquid liability

CALCULATIONS:

2008-09

9812/6291

= 1.56%

2009-10

12001/2880



= 4.17%

2010-11

14090/5100

= 2.76%


2008-09 2009-10 2010-11

LIQUID ASSET 9812 14090 14090


RATIO 1.56 4.17 2.76%

INTERPRETATION:


fluctuating. In year 2009-2010 Liquid ratio has increased by 2.61%

as compared to year 2008-2009. In the year 2010-2011 Liquid

ratio has increased 1.2% as compared to year 2008-2009 and has

decreased 1.41% as compared to year 2009-2010.

3. ACID TEST RATIO:

A stringent indicator that determines whether a firm

has enough short-term assets to cover its immediate liabilities

without selling inventory.

FORMULA:

Acid test ratio = Quick assets/liquid liabilities

CALCULATIONS:

2008-09

630/6291



= 0.10%

2009-10

1085/2879

= 0.38%

2010-11

1046/5100

= 0.20%


2008-09 2009-10 2010-11

QUICK ASSET 630 1085 1046

LIQUID LIABILITY 6291 2879 5100RATIO 0.10 0.38 0.20

INTERPRETATION:

In the above table we can see that Liquid ratio isfluctuating. In year 2009-2010 Liquid ratio has increased by 0.28% as

compared to year 2008-2009. In the year 2010-2011 Liquid ratio has

increased by 0.10% as compared to year 2008-2009 and has decreased

by 0.18 % as compared to year 2009-2010.

4. LONG TERM FUNDS TO FIXED ASSET:

This ratio shows the relationship between fixedcapital and fixed assets.



FORMULA:

Long term funds to fixed assets = Capital employed/Net fixed

assets

CALCULATIONS:

2008-09

2009-10

2010-11

TABLE OF THREE YEAR RATIOS:

2008-09 2009-10 2010-11

INTERPRETATION:



3.6. COVERAGE RATIO:

1. INTEREST COVERAGE RATIO:

The ratio indicates as to how many times

the profit covers the payment of interest on debentures andother long-term loans. Hence it is known as interest

coverage ratio.

FORMULA:

Interest coverage ratio = EBIT/int. Paid

CALCULATIONS:

2009-10

11615/187

= 62.11%

2010-11

13229/294

= 45%

TABLE OF TWO YEAR RATIOS:

2009-10 2010-11

EBIT 11615 13229

INTEREST PAID 187 294

RATIO 62.11 45

INTERPRETATION:

In the above ratio we can see that ratios are decreasing.

In year 2009-10 62.11% and in 2010-11 decreased by 45%.



CHAPTER: 4 ACCOUNTING POLICY

AND NOTES



4.1) NOTES OF ACCOUNT:

1) COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE

The Corporate Governance at Navneet is a combination of severalfactors to achieve the objectives of transparency, full disclosure, asystem of checks and balances between the shareholders, directors,auditors and the management. The Company continuously strives toattain higher levels of accountability, transparency, responsibility andfairness in all aspects of its operations. Navneet's basic philosophybehind an endeavour towards better Corporate Governance is to enrichthe value of shareholders by achieving business excellence. Your Company is committed to the principles of good Corporate Governance.

(2) BOARD OF DIRECTORS

2.1 Composition

The Board of Directors comprises of 13 directors. The Company has 6Independent Directors, 1 Non-Executive Director and 6 Promoter /Executive Directors. The Chairman of the Board is an IndependentDirector.

2.2 Number of Board Meetings held and dates on which held:

There were five Board Meetings held during 2010-2011 and gapbetween two Board Meetings did not exceed four months. The dates of the Board Meeting are - 27th April, 2010, 24th June, 2010, 26th July,2010, 28th October, 2010, 31st January, 2011.

2.3 A brief resume of Directors seeking appointment / re-appointment:

Shri Shivji K. Vikamsey

He is a Chartered Accountant by profession. He has more than five

decades of experience in the field of Accounting, Auditing, Taxation andManagement consultancy.

Shri Harakhchand R. Gala

He has wide experience in the field of sales & distribution of educationalbooks.



Shri Kamlesh S. Vikamsey

He is a renowned Chartered Accountant by profession and hasspecialised in the field of Accounting, Taxation and Managementadvisory services.

Shri Mohinder Pal Bansal

Shri Mohinder Pal Bansal was appointed as an Additional Director w.e.f.14th September, 2010. He is a Chartered Accountant by profession andhas over two decades of experience in M&A, Strategic Advisory, CapitalMarkets, Portfolio Company integration and post-acquisitionperformance management in India, Asia and Europe. He holds 4000shares of the Company.

2.4 Shri Amarchand R. Gala, Shri Dungarshi R. Gala, Shri HarakhchandR. Gala and Shri. Shantilal R. Gala are related as brothers and ShriShivji K. Vikamsey and Shri Kamlesh S. Vikamsey are related as father and son.

(3) CODE OF CONDUCT FOR DIRECTORS & SENIORMANAGEMENT PERSONNEL

The Board at its meeting held on 7th November, 2005 have adopted theCode of Conduct for the Directors and Senior Management Personnel.

A copy of Code of Conduct has been put on the Company's Websitewww.navneet.com

Code of Conduct has been circulated to all the Members of the Boardand Senior Management Personnel of the Company and compliance of the same is affirmed by them. A declaration by the Managing Director under Clause 49 of the Listing Agreement regarding compliance withCode of Conduct is given below: In accordance with Clause 491(D) of the Listing Agreement with the Stock Exchanges, I hereby confirm thatall the Members of the Board and Senior Management Personnel of the

Company have affirmed compliance with the Code of Conduct guidelineas applicable to them for the Financial Year ended 31st March, 2011.

Amarchand R. Gala Managing Director

(4) AUDIT COMMITTEE

4.1 Composition



The Audit Committee presently comprises of four Independent Directorsnamely Shri Shivji K. Vikamsey, Shri Kamlesh S. Vikamsey, ShriLiladhar D. Shah and Shri Mohinder Pal Bansal. The Chairman of the Audit Committee is an Independent Director namely Shri Kamlesh S.Vikamsey.

4.2 Shri Amit D. Buch, Company Secretary is Secretary to the AuditCommittee.

4.3 Attendance

Five Audit Committee Meetings were held during the year on 27th April,2010, 24th June, 2010, 26th July, 2010, 28th October, 2010 and 31stJanuary, 2011.

4.4 Powers of Audit Committee

(1) To investigate any activity within its terms of reference.

(2) To seek information from any employee.

(3) To obtain outside legal or other professional advice.

(4) To secure attendance of outsiders with relevant expertise, if itconsiders necessary.

4.5 Broad Terms of References of the Audit Committee

(1) To review with the management the Management discussion andanalysis of financial condition and results of operations.

(2) To review Statement of significant related party transactions (asdefined by the Audit Committee) submitted by management.

(3) To review Management letters / letters of internal controlweaknesses issued by the statutory auditors.

(4) To review Internal Audit Reports relating to internal controlweaknesses.

(5) To review appointment, removal and terms of remuneration of theChief internal auditor.

(6) To review with the management, the statement of uses / applicationof funds raised through an issue (public issue, rights issue, preferential



issue, etc.), the statement of funds utilized for purposes other than thosestated in the offer document/prospectus/notice and the report submittedby the monitoring agency monitoring the utilisation of proceeds of apublic or rights issue, and making appropriate recommendations to theBoard to take up steps in this matter.

(7) To overview the Company's financial reporting process and thedisclosure of its financial information to ensure that the financialstatements are correct, sufficient and credible.

(8) To recommend to the Board, the appointment, re-appointment and, if required, the replacement or removal of the statutory auditor and thefixation of audit fees.

(9) To approve payment to statutory auditors for any other servicesrendered by the statutory auditors.

To review with the management, the annual financial statements beforesubmission to the board for approval, with particular reference to:

a) Matters required being included in the Director's ResponsibilityStatement to be included in the Board's report in terms of Clause (2AA)of Section 217 of the Companies Act, 1956.

b) Changes, if any, in accounting policies and practices and reasons for the same.

c) Major accounting entries involving estimates based on the exercise of judgement by management.

d) Significant adjustments made in the financial statements arising out of audit findings.

e) Compliance with listing and other legal requirements relating tofinancial statements.

f) Disclosure of any related party transactions.

g) Qualifications in the draft Audit Report.

11) To review with the management, the quarterly financial statementsbefore submission to the board for approval.

12) To review with the management, performance of statutory, internalauditors, and adequacy of the internal control system.



13) To review the adequacy of internal audit function, if any, includingthe structure of the internal audit department, staffing and seniority of theofficial heading the department, reporting structure coverage andfrequency of internal audit.

14) Approval of appointment of CFO after assessing the qualifications,experience & background, etc. of the candidate.

15) To discuss with internal auditors any significant findings and followup there on.

16) To review the findings of any internal investigations by the internalauditors into matters where there is suspected fraud or irregularity or afailure of internal control systems of a material nature and reporting thematter to the board.

17) To discuss with statutory auditors before the audit commences,about the nature and scope of audit as well as post-audit discussion toascertain any area of concern.

18) To look into the reasons for substantial defaults in the payment tothe depositors, debenture holders, shareholders (in case of non paymentof declared dividends) and creditors.

19) To carry out any other function as may be added by the Board of Directors in the terms of reference of the Audit Committee, by the Board

from time to time.

(5) SUBSIDIARY COMPANIES

The Company does not have a material non-listed Indian subsidiaryCompany whose turnover or net worth exceeds 20% of the consolidatedturnover or net worth respectively of the holding Company in theimmediately preceding accounting year. The Board of Directorsperiodically review the investments and transaction of its subsidiarycompanies. Copies of the minutes of the meeting of Board of Directors

of the subsidiary companies are placed at the subsequent Boardmeeting of the holding Company.

(6) INVESTORS' GRIEVANCE COMMITTEE

6.1 Composition

The composition of Investors' Grievance Committee is as under:



(a) Shri Liladhar D. Shah (Independent Director)

(b) Shri Kamlesh S. Vikamsey (Independent Director)



CHAPTER: 5 DIRECTOR·S REPORT



PERTAINING MAINLY TO THE FINANCIAL ASPECT:

Particulars Current year Previous year

(a) Profit before interest, depreciation andtax

13229 11615

(b) Less : interest 294 187

(c) Profit before depreciation and tax 12935 11428

(d) Less : deprecation 1144 1164

(e) Profit before tax 11791 10264

(f) Less: (i) provision for tax 3940 3554(ii) provision for deferred tax 100 (48)

(iii)(add)/less: provision for tax of earlier years

(4) (40)

(g) profit after tax 7755 6798

(h) balance brought forward from last year 16279 13268

(i) Profit available for Appropriation 24034 20066

APPROPRIATIONS:(a)Interim dividend

1429 2382

(b)F

inal dividend 1906 -(c) Corporate tax on dividend 547 405

(d) General reserve 1000 1000

(e) Balance carried to balance sheet 19152 16279

24034 20066

OTHER GENERAL INFORMATION AND IMPLEMENTION:

1. DIVIDEND:

Directors are pleased to recommend a final dividend of

Rs. 0.80 ps (40%) per share for the financial year 2010-11. The

company had declared and paid interim dividend of Rs. 0.60 ps

(30%) per share during the year under review. The interim



dividend so paid along with final dividend, if declared, work out to

above 50% as against your company¶s policy of distribution of

minimum of 25% of its net profit.

2. CORPORATE GOVERANCE:Company has complied with clause 49 of the

listing agreement entered with the stock exchanges. A report on

corporate governance as stipulated under clause 49 of the listing

agreement along with auditor¶s certificate on compliance with the

corporate governance forms part of annual report.

3. SUBSIDAR Y COMPANIES:

In accordance with the general circular issued

ministry of corporate affairs, government of India, the balancesheet, profit and loss account and other document of subsidiary

companies are not attached with annual account of the company.

The consolidated accounts has been prepared in accordance with

accounting standards (AS-21), on consolidated financial

statements issued by institute of chartered Accountants of India.

4. DIRECTORS RESPONSIBILIT Y STATEMENT:

Directors hereby state:

(a) In the preparation of annual accounts, the applicableaccounting standards have been followed along with proper

explanation relating to material departures;

(b) Applied them consistently and made judgements and

estimates that are reasonable and prudent so as to give true

and fair view of the state of affairs of the company at the end of

financial year and profit of the company for that period;

(c) The director has taken proper and sufficient care for the

maintenance of the adequate accounting records in accordance

with the provision of companies Act, 1956 for safeguarding the

asset of the company and f

(d)

(e) or preventing and detecting fraud and other irregularities;

(f) The directors have prepared the annual accounts on a going

concern basis;



CHAPTER: 6 AUDITORS REPORT



NAME OF THE AUDITORS:

M/s. Ghalla & Bhansali

Statuary Auditors of the company

TO STATE WHETHER REPORT IS QUALIFIED OR UN

QUALIFIED:

Thus the report is not a qualified report.

IMPLICATION:

According to information and explanations given to us, the

central government has not prescribed maintance of cost records under

clause (d) of sub-section (1) of section 209 of the companies act, 1956,

for the industry in which the company operates.

The Members of Navneet Publications (India) Limited,

They have audited the attached Balance Sheet of NAVNEET PUBLICATIONS (INDIA) LIMITED, as at 31st March 2010, the Profit

and Loss Account and the Cash Flow Statement of the Company for theyear ended on that date annexed thereto. These financial statementsare the responsibility of the Company's management. Our responsibilityis to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with the auditing standardsgenerally accepted in India. Those Standards require that we plan andperform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on the test basis, evidence supporting the amounts and

disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis of our opinion.1. As required by the Companies (Auditor's Report) Order, 2003 issuedby the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclosed in the Annexure



attached here to, a statement on the matters specified in paragraphs 4and 5 of the said Order.2. Further to our comments in the Annexure referred to in Para (1)above, we report that:a) We have obtained all the information and explanations, which to the

best of our knowledge and belief were necessary for the purpose of our audit.b) In our opinion, proper books of accounts as required by law havebeen kept by the Company so far as appears from our examination of the books.c) The Balance sheet, Profit and Loss Account and Cash FlowStatement dealt with by this report are in agreement with the books of account.d) In our opinion, the Balance Sheet, Profit and Loss Account and CashFlow Statement dealt with by this report, is in compliance with the

Accounting Standards specified by the Institute of Chartered Accountants of India, referred to in sub-section (3C) of section211 of theCompanies Act, 1956; to the extent applicable to the Company.



CHAPTER: 7 COMMON SIZESTATEMENT

An Analytical Study of Three Year

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