1) INTRODUCTION

1.1 GENERAL INTRODUCTION Financial analysis (also referred to as financial statement analysis or accounting analysis) refers to an assessment of the viability, stability profitability of a business, sub business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may: Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent / lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. Performance analysis is the process of identifying the strength and the weakness of the firm with the help of accounting information provided by the Profit & Loss Account and the Balance Sheet. It is the process of evaluation of relationship between component parts of financial statement to obtain a better understanding of the firms position and performance. and

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1.2 INDUSTRY PROFILE What is Fast Moving Consumer Goods (FMCG)? Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and 2005.

FMCG Industry
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.

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FMCG industry economy

FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP).

Common FMCG products

Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.

Market potentiality of FMCG industry

Some of the merits of FMCG industry, which made this industry as a potential one are low operational cost, strong distribution networks, presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of this industry.

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Job opportunities in FMCG industry

FMCG industry creates a wide range of job opportunities. This industry is a stable, diverse, challenging and high profile industry providing a wide range of job categories like sales, supply chain, finance, marketing, operations, purchasing, and human resources.

Scope of the Sector

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then.

Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside.

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However, the demand in urban areas would be the key growth driver over the long term. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc., in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income.

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Indian Competitiveness and Comparison with the World Markets The following factors make India a competitive player in FMCG sector: Availability of raw materials Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

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 Presence across value chain Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage.

Swot Analysis Strengths:

Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector

Weaknesses:
Lower scope of investing in technology and achieving economies of scale, especially in small sectors Low exports levels "Me-too products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities:
Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Large domestic market- a population of over one billion. Export potential High consumer goods spending

Threats:
Removal of import restrictions resulting in replacing of domestic brands Slowdown in rural demand Tax and regulatory structure

Spending Pattern
An increase is spending pattern has been witnessed in Indian FMCG market. There is an upward trend in urban as well as rural market and also an increase

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in spending in organ-ized retail sector. An increase in disposable income, of household mainly because of in-crease in nuclear family where both the husband and wife are earning, has leads to growth rate in FMCG goods.

Changing Profile and Mind Set of Consumer

People are becoming conscious about health and hygienic. There is a change in The mind set of the Consumer and now looking at Money for Value rather than Value for Money. We have seen willingness in consumers to move to evolved products/ brands, because of changing lifestyles, rising disposable income etc. Consumers are switching from economy to premium product even we have witnessed a sharp increase in the sales of packaged water and water purifier. Findings according to a recent survey by A. C. Nielsen shows about 71 per cent of Indian take notice of packaged goods labels containing nutritional information compared to two years ago which was only 59 per cent.

Advantages To The Sector Governmental Policy

Indian Government has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions, reducing excise duties, automatic foreign in-vestment and food laws resulting in an environment that fosters growth. 100 per cent ex-port oriented units can be set up by overnment approval and use of foreign brand names is now freely permitted.

Central & State Initiatives

Recently Government has announced a cut of 4 per cent in excise duty to fight with the slowdown of the Economy. This announcement has a positive impact on the industry. But the benefit from the 4 per cent reduction in excise duty is not likely to be uniform across FMCG categories or players. The changes in excise duty do not impact cigarettes (ITC, Godfrey Phillips), biscuits (Britannia Industries, ITC) or ready-to-eat foods, as these prod-ucts are either subject to specific duty or are exempt from excise. Even players with manu-facturing facilities located mainly in tax-free zones will also not see material excise duty savings. Only large FMCGmakers may be the key ones to bet and gain on excise cut.

Foreign Direct Investment (FDI)

Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). There is a continuous growth in net FDI Inflow. There is an increase of about 150 per cent in Net Inflow for Vegetable Oils Vanaspati for the year 2008.

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Market Opportunities Vast Rural Market

Rural India accounts for more than 700 Million consumers, or ~70 per cent of the Indian population and accounts for ~50 per cent of the total FMCG market. The working rural population is approximately 400 Millions. And an average citizen in rural India has less then half of the purchasing power as compare to his urban counterpart. Still there is an untapped market and most of the FMCG Companies are taking different steps to capture rural market share. The market for FMCG products in rural India is esti-mated ~ 52 per cent and is projected to touch ~ 60 per cent within a year. Hindustan Unilever Ltd is the largest player in the industry and has the widest market coverage.

Export - Leveraging the Cost Advantage

Cheap labor and quality product & services have helped India to represent as a cost ad-vantage over other Countries. Even the Government has offered zero import duty on capital goods and raw material for 100% export oriented units. Multi National Companies out-source its product requirements from its Indian company to have a cost advantage. India is the largest producer of livestock, milk, ugarcane, coconut, spices and cashew apart from being the second largest producer of rice, wheat, fruits & vegetables. It adds a cost advantage as well as easily available raw materials.

Sectoral Opportunities
Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below: Dairy Based Products India is the largest milk producer in the world, yet only around 15 per cent of the milk is processed. The organized liquid milk business is in its infancy and also has large long-term growth potential. Even investment opportunities exist in value-added products like desserts, puddings etc. Packaged Food Only about 10-12 per cent of output is processed and consumed in packaged form, thus highlighting the huge potential for expansion of this industry. Oral Care The oral care industry, especially toothpastes, remains under penetrated in India with penetration rates around 50 per cent. With rise in per capita incomes and awareness of oral hygiene, the growth potential is huge. Lower price and smaller packs are also likely to drive potential up trading. Beverages Indian tea market is dominated by unorganized players. More than 50% of the market share is capture by unorganized players highlighting high potential for organized players.

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Market overview
The Indian FMCG sector, with a market size of US$ 25 billion (200708 retail sales), constitutes 2.15 per cent of Indias GDP. The industry is poised to grow between 10 to 12 per cent annually. A well-established distribution network spread across six million retail outlets (including two million in 5,160 towns and four million in 627,000 villages) low penetration levels, low operating costs and intense competition between the organised and unorganised segments are key characteristics of this sector.

Market segments
Food products is the largest consumption category in India, accounting for nearly 21 per cent of the countrys GDP. 1. 2. 3. 4. 5. 6. 7. Baby care - 2% Fabric care- 12% Food products- 43% Hair care- 8% Household- 4% OTC products- 5% Other Personal care- 22%

Policy and regulatory framework Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity, or 100 per cent for NRI and overseas corporate bodies (OCBs) investment, is allowed in food processing segments such as coffee and tea. The Government of India (GoI) recognises food processing and agro industries as priority sectors. Industrial license is not required for almost all food and agro processing industries, barring certain items such as beer, potable alcohol and wines, cane sugar and hydrogenated animal fats and oils and items reserved for exclusive manufacture in the smallscale sector. The GoIsannouncement of a 4 per cent reduction in excise duty (as part of the earlier stimulus package in December 2008) has impacted the FMCG industry positively. In October 2009, the GoIamended the Sugarcane Control Order, 1966, and replaced the Statutory Minimum Price (SMP) of

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sugarcane with Fair and Remunerative Price (FRP) and the State Advised Price (SAP). Outlook
There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.

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COMPANY PROFILE
Featuring among the top five FMCG players in India, with a turnover crossing Rs. 13,000 crores, Ruchi Soya Industries Limited is the flagship company of Ruchi Group of Industries. Besides being a leading manufacturer of high quality edible oils, vanaspati, bakery fats and soya foods, Ruchi is also the highest exporter of soya meal and lecithin from India. Nutrela (soya chunks, granules and soya flour) is the largest selling soya foods brand in the country.

Ruchi is a leading branded edible oil supplier. NutrelaSoyumm (Soyabean Oil), Ruchi Gold (Palmolein Oil), Mahakosh, Sunrich (Sunflower Oil) and Mandap (Mustard Oil) and new healthy oil variants like Nutrela Vitamin Sunflower oil and Nutrela Groundnut oil make Nutrela a trusted option in edible oils. Superior procurement and trading skills, continuous innovation, an endeavor to meet consumer needs and stringent quality control standards have enabled Ruchi to emerge as a highly-respected and admired Indian company.

Ruchi Soya Industries Limited is listed on Bombay Stock Exchange Limited (BSE Code: 500368), National Stock Exchange of India Limited (NSE Code: RUCHISOYA) and Delhi Stock Exchange.

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History of the company

1986 - The Company was incorporated on 6th January, 1986. It was promoted by General Goods Pvt. Ltd. and Ruchi Pvt. Ltd; of the Shahra Group of Industries. It manufactures Soya proteins, Speciality Soya products, Soya snack foods and Nutrela. During September, the Company offered 4,46,666-13.5% convertible debentures of Rs 150 each on rights/private placement basis, theproportion of rights being 35 debentures for every100 equity shares held. Only 1,87,126 debentures were taken up by shareholders. The balance 2,59,540 debentures were allotted on private placement basis. Additional 64,554 debentures were also allotted on private placement basis to retain oversubscription. Another 22,333 debentures were allotted to employees/workers of the Company and those of the associated companies on an equitable basis. A total of 5,32,543-13.5% convertible debentures of Rs.150 each were thus allotted for Rs 7,98,81,450. As per the terms of the issue, Rs 50 out of each debentures of Rs. 150 was automatically converted into 5 No. of equity shares of Rs 10 each of the Company at par on 20th July, 1987. The balance of Rs 100 per debentures shall be redeemed at par in three annual instalments on the expiry of 7th, 8th and 9th years from the date of allotment. 70 shares subscribed for by the signatories to the Memorandum Of Association, 12,49,930 shares were then issued at par (including 25% retention) of which 4,99,930 shares were reserved and allotted to promoters, directors at par. Out of the remaining 7,50,000 shares, the following shares were reserved for preferential allotment; (i) 62,500 shares to employees of the company (4,500 shares taken up); (ii) 12,000 shares to businessassociates of the company (all were taken up) and (iii) 2,40,000 shares to NRIs (only 2,36,800 shares taken up). The balance

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4,35,500 shares along with the unsubscribed portion of 61,200 shares out of the preferential quota were offered for public subscription during February-March 1986. 1987 - 26,62,715 No. of equity shares allotted at par in part conversion of debentures on 20.07.1987. 1988 - The Company proposed to expand its capacity from 6,000 tonnes per annum to 12,000 tonnes per annum. 1989 - New texturised soya protein plants near Noida, U.P. and near Indore, M.P. were commissioned. During November-December, the Company offered 2,69,949-13.5% secured fully convertible debentures of Rs 150 each on `Rights basis' in the proportion 1 debenture: 15 No. of equity shares held. Additional 19,464 debentures were allotted to retain oversubscription. Another 1,34,970 - 13.5% debentures were issued to the employees/workers of the Company and associate companies. - Rs 70 of the face value of each debenture was automatically and compulsorily converted into 5 No. of equity shares of Rs 10 each at a premium of Rs 4 per share during 1990-91. The remaining Rs 80 of the face value of each debenture was converted into four equity shares of Rs 10 each, at a premium of Rs 10 per share, during 1991-92. 1991 - The Company increased the texturised soya protein capacity from 12,000 TPA to 24,000 TPA and vanaspati from 7,500 TPA to 15,000 TPA. 1992 - During August, the Company offered 65,17,432 No. of equity shares of Rs 10 each at a premium of Rs 50 per share on Rights basis in the proportion 1:1. Out of this, 65,07,678 shares were allotted to shareholders/renouncees leaving a balance of 9,754 shares. Application were received for additional shares upto 26,94,800 shares from

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shareholders/renouncees, the balance of 9,754 shares were allowed to lapse as the allotment of these shares would have created fractions and odd lots.

1994 - The Company embarked upon an expansion programme with emphasis on value addition. It was proposed to expand the capacity of TVP (Nutrela) plant to increase the range of products. the year. 1995 - The Company proposed to enter into marketing tie up with a reputed international firm. Also, it was proposed to set up a EOU for soya processing with a capacity of 4,50,000 TPA with a view to enhancing the total manufacturing capacity. Steps were taken to set up a captive power plant for optimum utilisation of plant. The Company issued 17.5% - 4,00,000 non-Convertible debentures of Rs 100 each on Private Placement with GIC. These are redeemable in four equal half yearly instalments commencing at the end of one and half years from date of allotment i.e. 20.12.1993. Also 1,00,000-19% non-Convertible debentures were partially placed with UTI. These are redeemable at a premium of 5% of the Face value in three equal yearly instalments commencing at the end of 6th years from the date of allotment i.e. 9th January, 1992. 1996 - The company was also planning to set up an oil refinery on the southern coastal region of India. 1997 - 1,000,000-12.5% and 1,400,000-13% CR Pref. shares issued during the year. 2000 - A fire accident occurred on December 25 at the refinery section of the company located at village TalawaliChanda, District Indore (M.P.), in which the plant and machinery of the refinery section were damaged. Also the additional capacity of 200 TPD of refininng soya oil using state-of-the-art technology was to be commissioned during

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2001 - The Board has allotted 40,98,545 No. of equity shares of Rs 10 each at a premium of Rs 32 per share to overseas corporate bodies and Indian companies on preferential basis. Ruchi Soya Industries Ltd introduces high portein defatted soya flour NutrelaProfilo. 2004 -Ruchi Soya Industries Ltd purchases 75000 equity shares of Aneja Solvex Pvt. Ltd. For Rs.201 lacs.AnejaSolvex Pvt. Ltd. becomes a wholly owned subsidiary of the company -Ruchi Soya Industries Ltd. has informed that the equity shares of the company have been delisted from the Delhi Stock Exchange Association Ltd., w.e.f. February 11, 2004. 2007 - The Company has splits its face value from Rs10/- to Rs2/-. THE SOYA REVOLUTION In early 1960s Mr. MahadeoShahra created awareness on the potential of soya crop amongst the farmers in the state of Madhya Pradesh in India. He was instrumental in bringing up a small green revolution in the state, by introducing and encouraging soyabean cultivation on a commercial scale. Shahra family was in the business of commodities trading and subsequently entered the business of ginning and oil milling. The family's efforts, along with that of the others, resulted in soya revolution in Madhya Pradesh. Today Madhya Pradesh is considered as Soya bowl of the country, and contributes to approximately 60% of its production. Despite all odds, Ruchi is now a leading player in the country in edible oils, soya foods and processed foods categories. This is largely due to its strict adherence to quality and continuous innovation to keep with the times. Also, Ruchi has evolved from being a large manufacturing firm to a respected brand, keeping in line with the FMCG players. Its Nutrela and Ruchi Gold brands have captured leading positions in the soya foods and edible oils categories respectively. Ruchi has also ventured into other businesses like bakery specialties, where it foresees a big potential for growth. With its innate manufacturing and logistics advantages, and

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its foray into the branded sector, one only sees immense potential for the growth of Ruchi in the future.

BRANDS Over the years, Ruchi Soya Industries Limited has grown to become a multimillion US Dollar company. Two of our strongest brands, Nutrela and Ruchi Gold are category leaders. Nutrela, the most respected soya foods brand in the country, enjoys sizeable market share. It has enjoyed the trust of consumers for last 24 years now, and continues to expand its range to cater to varying needs of its consumers. It has become generic to the soya category. We have effortlessly strived to educate people about health and goodness of soya as our firm commitment is to provide healthy solutions to the consumers. Our edible oils brands like Ruchi Gold and NutrelaSoyumm enjoy mass acceptability and acclaim from the people. Ruchi Gold is the leader in the palmoline category. As a part of packaged goods thrust, Ruchi Gold was introduced in Chennai. Today, it enjoys leadership position in branded palmoline oil category. Mahakosh Refined Soyabean Oil is known for its purity and premium taste, its nutritional qualities enhance its health quotient. It contains fats that may help in reducing serum cholesterol levels and omega-3 fatty acids that protect against heart diseases.

NutrelaSoyumm ranks in one of the most popular oils in the category, and continues to strive to reach the top position. Both brands symbolize health and quality.We are also a leading vanaspati manufacturer with brands like Ruchi No. 1 and have also ventured into bakery and special fats category.

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Product line of the company

1. Mahakosh oils

Soyabean Cotton seed Groundnut 2. Sunrich oils

Sunflower 3. Ruchi gold oils

Palmolein Mustard 4. Nutrela oils

Nutrelasoyumm oil Nutrela sunflower oil Nutrela mustard oil Nutrela groundnut oil Nutrela rice bran oil

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5. Vanaspati

Nutri gold vanaspati Ruchi NO 1 vanaspati

6. Bakery fats

Bakery fats Speciality bakery fats 7. Soya foods

Nutrela chunks, Granules &Mini-chunks Soya Flakes Soya Flours Soya Grits Soya TVP (Textured Vegetable Protein) Soya Lecithin Soya Protein Concentrate

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 Soya Protein Isolate Soya Distillate

8. Soaps

Freshness of lime Goodness of rose petals Magic of fresh jasmine Goodness of natural sandalwood

Features of products
1. Mahakosh oils

a. Soyabean Features: A brand synonymous with purity and premium taste, this transparent cooking oil is full of nutritional qualities. The natural taste of soyabean oil enhances the flavour of food without masking the taste of other ingredients.

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Health Benefits: It contains both polyunsaturated and monounsaturated fats which have been known to reduce serum cholesterol levels. Omega-3 fatty acids present in soyabean oil offer protection against heart-related diseases. Available in 500 ml, 1liter, 5 liters, 15 liters and 15 Kg. packs.

b. Cotton seed Features:Mahakosh refined cottonseed oil is ideal for frying and cooking all sort of dishes. This oil has high smoke point & it provides long shelf life to the finished product. Health Benefits: Excellent oil for cooking and frying purposes, particularly chips and other snack foods. Available in 1liter, 5 liters, 15 liters and 15 Kg. packs.

c. Groundnut Features: Groundnut oil has a high smoke point so it is an excellent choice for sauting and frying. Health Benefits: It is also high in monounsaturated and polyunsaturated fats, which it a healthy oil to use for cooking or as a base for dressings. Consumers prefer groundnut oil for its nutty flavor & taste. Available in 1 liter, 5 liters, 15 liters and 15 Kg. packs.

2. Sunrich oils

a.Sunflower

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Features: healthy and natural cooking oil which is light in taste Health Benefits: It supplies more Vitamin E than any other vegetable oil. Vitamin E is a powerful antioxidant that protects cells against the effect of damaging free radicals. With zero per cent cholesterol levels, it offers a cooking medium that is ideal for the health conscious. The premium high quality sunflower oil is offered in 500 ml, 1 liter, 5 liters, 15 liters and 15 Kg. packs.

3. Ruchi gold oils

a.Palmolein Features: The market leader and the largest-selling refined palm oil brand in the country.

Health Benefits: It is rich in Vitamin E, a natural antioxidant that prevents cell deterioration. The goodness of natural vitamins makes it a nutritious and healthful option. The Palmolein oil is offered in 200 ml, 500 ml, 1 liter, 5 liters, 15 liters and 15 Kg. packs.

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b. Mustard Features: A high-quality aromatic mustard oil made from the first press of the finestmustard seeds while preserving their aroma and fragrance. HealthBenefits: It is rich in alpha linolenic acid which is a source of Omega-3 polyunsaturated fatty acids that protect the heart. A value for money mustard oil brand from Ruchi, available in 200 ml, 500ml, 1 liter,15 liters and 15 kg. packs. 4. Nutrela oils a. Nutrelasoyumm oil

Features:A fine-quality soyabean oil that enhances the taste of food. Benefits OfNutrelaSoyabean Oil: The natural taste of Soyabean oil enhances the flavour of food, and works well with other ingredients including fats and oils, making it edible in salad dressings, sauces and baked foods. It contains 61% polyunsaturated fats and 24% monounsaturated fats, adding up to a total of 85% unsaturated fats, which is comparable to, or even better than most vegetable oils. Poly and monounsaturated fats have been known to reduce serum cholesterol levels, which makes people heart healthy'. It also contains Omega 3 fatty acids, which are known to be protective against heart diseases. It does not produce any irritating odour, and is one of the most popularly used commercial deep-frying oils.

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It is available in 500 ml, 1lt, 5 liters and 15 liters packs.

b. Nutrela sunflower oil Features: Healthy, pure and enriched with vitamins A, D and E. It is healthy, natural and light in both taste and appearance. Benefits Of Nutrela Sunflower Oil : It is healthy, natural and light in taste and appearance. It supplies more Vitamin E, than any other vegetable oil. With zero percent cholesterol levels, it makes an excellent choice as a cooking medium. This premium high quality sunflower oil is offered in 500 ml, 1 liter, 5 liters and 15 liters packs. c. Nutrela mustard oil Features: Made from the first press of the finest quality mustard seeds, preserving the rich aroma and flavour. Health Benefits: It is made from the first press of the finest mustard seeds, preserving their aroma and flavour, which makes food delicious. Besides acting as a preservative, it imparts flavour to Indian recipes, sausages and western foods . It is an economical cooking medium with a long shelf life. It is available in 500 ml, 1 liter, 5 liters, 15 liters and 15 kgsPacks. d. Nutrela groundnut oil Features: Has a high smoke point which makes it an excellent choice for sauting and frying.

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Health Benefits: High in monounsaturated and polyunsaturated fats. It is better tolerated in diabetics as the monounsaturated fats prevent vascular complications.Available in 1 liter Pouch, 1 liter Pet jar & 5 liter HDPE.

e.Nutrelaricebran oil Features:Ricebran Oil is sometimes referred to as the worlds healthiest edible oil.Thats because it contains vitamins, antioxidants, nutrients and is trans-fat free. It is said to be an ideal cooking medium due to its many nutritional benefits over other edible oils. It has a neutral, delicate flavour and a high smoke point, making it a perfect all-purpose cooking oil. Health Benefits:Ricebran Oil has the best balance of saturated, monounsaturated and polyunsaturated fats as recommended by the World Health Organization. With its unique nutraceuticals (Oryzanol and Tocotrienol) it is the oil of choice for improving serum cholesterol levels and preventing cardiovascular diseases. Available in 1 lt, 15 lts and 15 kg packs. 5.Vanaspati f. Nutri gold vanaspati With its grainy ghee-like texture, is ideal for deep-frying and for preparing dishes that need to be preserved for a longer period of time. Health Benefits: It offers a healthy alternative to traditional vanaspati due to its relatively low trans-fatty acid content. g. Ruchi NO 1 vanaspati

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Features:Vanaspati is a hydrogenated vegetable fat. It is white and grainy in texture, and favouredasa multi-purpose cooking medium, adding taste to food. Health Benefits: Manufactured in a sophisticated ultra modern plant without animal extract, it is untouched by hand, during the entire process. Vanaspati contains the essential vitamins A and D. Available in 50 ml, 1100 ml, 200 ml, 500 ml, 1 lt, 5 lts, 15 lts, 15 kgs

6.Bakery fats Bakery Fats are manufactured in an Ultra modern plant with highly shelf sophisticated life techniques to under the specific hygienic products. conditions. These are stable medium which provides a longer

Bakefat- for Puff products: This product is a highly textured and grain-less product having best plasticity, smooth and creamy texture and a blend-in taste that ensures a good layered structure in puff products. Bakefat- for Biscuits: This is a grain-less product having smooth and creamy texture and a blend-in taste that makes the biscuits crunchy. NeptuneInteresterified Vegetable fat. This is a low trans fat and grainless product having smooth and creamy texture and a blend-in taste. This is used for icing on cakes and making cookies. Bakery Fats are available in 15 kgs Poly bag in box (corrugated box). biscuits crunchy. Neptune- Interesterified Vegetable fat

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This is a low trans fat and grain-less product having smooth and creamy texture and a blend-in taste. This is used for icing on cakes and making cookies. Bakery Fats are available in 15 kgs Poly bag in box (corrugated box). b.Speciality bakery fats Ruchi Provides A Range Of Specialty Bakery Fats

CakeMo, Margarine Margarine that is as good as butter without the problems of butter. Best for making Pound, Fruit and Plum cakes. The cakes will look bigger and taste delicious with long lasting softness. CookieMo, Full Fat Full Fat with Nitrogen gas that can give higher volume. It mixes well with maida and makes crispy cookies and biscuits with a long lasting shelf life. MoCreme, Cream Gives more cream (more volume). Cream will have more whiteness so that it will absorb any colour and flavour very well. The cakes and pastries will look bigger. It is very good for icing and as sandwich cream. PuffMo, Margarine Margarine for puff pastry. This will spread easily and more flaky layers will be seen. The dough can be easily spread into sheets there-by gaining more puffs. MoSno Cream, Margarine This is a margarine that will give snowy white cream. Its

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moistness will give your mouth a cool feeling. It may be used in making Kulfi and ice creams. The icing or cream will not dry up or become flaky easily and, can thus, be easily spread straight from the refrigerator or cooler.

7.Soya foods a.Nutrelachunks,Granules&Mini-chunks Promotes Growth Nutrela's high protein content is ideal for kids,helps to excel in ports and studies at school and at home.It also helps in mental and physical growth. Good For The Heart Since Nutrela contains no cholesterol,it is good for the heart. Low In Fat And Full Of Energy

Regular intake of Nutrela helps you remain slim.ANutrela is low in fats and keeps you energetic and active throughout the day. Nutrela is beneficial for all lifestyles and age-groups as follows For The Busy Executive Nutrela helps control hypertension, blood pressure and is also excellent as part of a low- calorie fitness training. diet for weight control or

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 In Women Nutrela can help fulfill many of the requirements of expectant mothers. In older women, it promots bone health and reduces the risk of osteoporosis. Moreover, it also helps prevent the breast cancer, and uncomfortable menopausal symptoms.

In Children Nutrelas high proteins content helps deliver essential nutrients to remain fit, healthy and aids the development energetic throughout the day. It also of bones and teeth.

How To Use Just follow the simple 3 step procedure mentioned on the box and prepare a range of delicious dishes for all mealtimes, including breakfast, lunch, dinner, evening snacks and even desserts! Available in 3 forms Chunks : 100 gms, 200 gms and 1 kg packs Granules : 200 gms and 1 kg packs Mini chunks : 200 gms pack b.Soya Flakes Soya Flakes are the primary derivatives of de-oiled soyabeans.

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They make excellent raw material for many products. Ruchi Soya Flakes are the largest used raw material for Soya Sauce manufacturing. They also find application in the poultry industry as hatchery feed. They are also used in pharmaceuticals, shrimp feed and sauce making. Our flakes are well established in the Far East for their excellent protein content c.Soya Flours Soya Flours come in five variants and find myriad uses, right from fortification of the human diet to medicine to chemicals and even as glue in wood manufacturing. In home cooking, Soya Flour is used as a thickening agent in gravies and sauces. In baked products, Soya Flour adds tenderness and moisture and helps to keep products from becoming stale. Soya Flour also makes a good egg substitute in baked products d.Soya Grits Soya Grits are obtained from selected good quality yellow Soyabean by a process involving solvent extraction using food grade hexane under controlled heat treatment and grinding. Soya Grits are available in 50 kg HDPE bags and can be stored in their original packing for six months at a temperature under 25C in dry conditions. e.Soya TVP (Textured Vegetable Protein) Soya TVP is widely used as a meat substitute and extender in millions of householdseveryday. It is perhaps the most affordable form of easily available quality nutrition. Ruchi TVP is available in consumer packs as well as in bulk packs for industrial use. f.Soya Lecithin We produce Soya Lecithin in Liquid and Powder forms obtained from solvent extracted Soyabean Oil. Powder Lecithin is available in 25 kg corrugated boxes with inside liners and can be

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stored in its original packing for one year in a cool and dry place, while Liquid Lecithin is available in 200 kg MS drums. g.Soya Protein Concentrate This is the proteinous fraction of Soyabean. Made from Food Grade, de-fatted soyabean flour, Soya Protein gives industries a versatile base for their products. h.Soya Protein Isolate Isolate is the more concentrated form of Protein Concentrate, suitable in all applications requiring high protein addition. i.Soya Distillate Soya Distillate is available in 200 KGs epoxy Coated MS Drums under nitrogen blanket. 8.Soaps Ruchi No 1 is the optimum answer for all the needs of the skin as it provides Purification, Nourishment and Hydration. Consumer research has indicated that the desire for a lasting fragrance features highest in the daily beauty regime of economy soap users. Hence Ruchi No 1 comes in four enhanced fragrances, which provide longer lasting freshness besides just taking care of the skin. a.Freshness of lime Natural rose petals are popularly used for softening & toning of the skin and the sweet rose fragrance creates an atmosphere of opulence. After bathing with Ruchis Rose soap, you will feel like a movie star throughout the day. b.Goodness of rose petals The exotic aroma of jasmine creates an ambiance of bathing in a magic garden, away from the mayhem of day to day life. Ruchis new offering promises the magic to linger and the romance to continue till the next bath. c.Magic of fresh jasmine

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Lime embodies freshness and cleanliness. Bathing with Ruchis fresh new soap after a long, tiring day uplifts the fatigued body and boosts it with energy. This freshness of the mind and the body will help you maintain a sense of well being through d.Goodness of natural sandalwood Sandalwood is known for its legendary cleansing and hydrating properties and its excellent aroma . Sandalwood was the choice of royalty in olden times to enhance skincare. Ruchis sandalwood aroma will transport you back in time when long drawn out bathing rituals were cherished and women were fastidious about natural skin care and favored natural sandal fragrance.Ruchi No. 1 has 72 % TFM ( total fatty matter ) and delivers the promise of quality at an economical price , keeping in line with the companys commitment to consumers. With the company lending its corporate name to this brand, it guarantees gms Rs.10/-. MARKETING STRENGTHS The extensive distribution network, built over the years, is a major strength for Ruchi Soya Industries Limited. Catering nationally through over 6.25 Lac retail stores, with 96 Company depots, over 3200 distributors and a sales staff of over 200, Ruchi has attempted to penetrate depth wise, along with opening new markets. With its emphasis on providing value goods to consumers, dual strategy of Ruchi on popular and premium range works well. Ruchi Gold and Sunrich are our value for money offering but with no compromise in quality. This positioning helps generate large sales volumes for the products. Our Nutrela series is more premium, and offers healthy options in soya foods and edible oils. This dual strategy is based on our cultivated understanding of the Indian consumer psyche. optimum quality to the consumer. Ruchi No. 1 is available in 2 SKUs. 75 gms Rs.8/- and 100

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With undivided focus on new channels of distribution, we have a firm footing in modern retail and prestigious hotel chains. With our alliances with players like Pantaloon and visible presence in all leading national and regional supermarkets, we hope to grow our consumer base and product portfolio.

NEW HORIZONS Ruchi Soya Industries Limited is exploring new horizons beyond its traditional business interests. New initiatives like palm plantation and renewable energy sources coagulate well with the existing business goals of the company. We have expanded our crushing and refining capacities to remain competitive in the market. Our recent acquisitions and mergers will help us to accelerate our pace of growth. Palm Plantation Green Energy Capacity Enhancement Mergers & Acquisition

Palm Plantation Indian edible oil market is the worlds fourth largest after USA, China and Brazil. A growing population with increasing rate of consumption and continuously increasing per capita income are some of the factors accelerating the demand for edible oil in India. This has lead to increased dependence on import of palm oil. To tackle this situation, Government of

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India has formed an expert committee which has identified suitable land for palm plantation all over India.

Palm plantation has multiple benefits as it has yield and income per hectare are better than other oil seed crops. Once planted, palm trees can be harvested for about 25 years. Reduced dependency on imports conserves countrys foreign exchange reserves and needless to state - Plantations are always environmentally beneficial. Ruchi has taken the initiative and consolidated its palm plantation activities, by merging Mac Oil Palm Limited and Palm Tech India Limited into Ruchi Soya Industries Limited. Ruchi has acquired contract farming access to a total land bank of 1,69,000 ha, a 60 tph oil mill capacity for FFB processing and 15 nurseries. Ruchi has palm plantations in Andhra Pradesh, Karnataka, Mizoram, Gujarat, Orissa and Tamil Nadu. Green Energy In 2006 Ruchi Soya industries Limited ventured into the field of generating feed stock for bio-diesel through Jatropha plantation. It has completed plantation of about 60,000 acres in Madhya Pradesh, Maharashtra and Andhra Pradesh through various farmer-friendly models. To tap more opportunities in this field Ruchi has formed a Limited Liability Partnership (a corporate business vehicle) called Indian Oil Ruchi Bio-Fuels LLP in association with Indian Oil Corporation Ltd. for Jatropha plantation on Government wasteland in Jhansi and Lalitpur districts. The LLP would carry out plantation on 50,000 ha of wasteland available in Jhansi, Lalitpur and adjoining districts in a phased manner and will establish bio-diesel production plant of 300 TPD capacity by 2014 to provide an alternate fuel option. Uttar Pradesh has about 10 lacs of waste land on which Jatropha can be planted. Jatropha seeds contain 30% oil, which can be extracted and processed into bio-diesel.

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Ruchi Soya Industries Limited is active in wind power generation, having wind mill installations in Madhya Pradesh, Tamil Nadu, Maharashtra, Gujarat and Rajasthan with an aggregate capacity of 59.10 MWh as of the end of last financial year. Rural integration is the key business philosophy of Ruchi, thereby, continuing the tradition of being a farmer friendly company. We believe that effective utilization of uncovered waste/marginal land of the country will lead to inclusive growth by generating large scale rural employment opportunities. Capacity Enhancement Ruchi Soya Industries Limited has expanded its refining and crushing capacities. Ruchi now has over 2.2 million metric tons per anum of refining and over 4.1 million metric tons per anum of crushing capacities, spread over strategic locations across India. We are one of the few edible oil companies in the country that has a balanced mix of inland and port based refineries. This enables us to optimize production depending upon the availability of various alternatives local oilseeds or imported crude oil. Moreover, multi- location refineries have reduced road travel costs leading to significant transportation cost advantage. We have 5 refineries at various locations and 12 inland crushing plants out of which most are attached with refinery. Mergers & Acquisition Ruchi Soya Industries Limited consolidated its position in palm plantation activities by merging Mac Oil Palm Limited and Palm Tech India Limited. This consolidation will enable Ruchi to sustain its leadership and have a formidable presence in the southern markets of India both in terms of sourcing and marketing. Also the investment of resources will prove beneficial for the rural development and agricultural economy in Andhra Pradesh and Karnataka. Merger of Mac Oil and Palm Tech with Ruchi will support overall initiatives of promotion,

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development and processing of oil palm plantations in India and contribute towards reduced dependency on edible oil imports in the long run. Ruchi has set up a wholly owned subsidiary in the name of Ruchi Industries Pte. Ltd. in Singapore and Ruchi Ethiopia Holding Ltd. in Dubai for investing in plantation activities outside India. The Board has approved a Scheme of Amalgamation and Arrangement of Sunshine Oleochem Limited with the Company subject to approval of members, creditors and jurisdictional High Court. Earlier Ruchi had merged its sister concerns AnejaSolvex Ltd, General Foods Ltd, Ruchi Credit Corporation, Ruchi Health Foods Ltd, Param Ind. Ltd, Ruchi Private Ltd and soya businesses of MP Glychem

LIST OF AWARDS RECEIVED National Energy Conservation Award (Second Prize) to its Manglore (Karnataka) plant in Edible Oil/Vanaspati Industry National Energy Conservation Award (first prize) to its Kandla (Gujarat) plant in Edible Oil/Vanaspati Industry National Energy Conservation Award (second prize)to its Chennai plant in Edible Oil/Vanaspati Industry National Energy Conservation Award (first prize) to its Thiruvallur(Chennai) plant in Edible Oil/Vanaspati Industry Dun and Bradstreet Rolta Corporation Award-2008 Dun and Bradstreet Award for the No. 1 food processing company of India.

2009

2008

2008

2007 2009 2006

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GLOBOIL DIAMOND AWARD Golboil India Man of the year Awarded to Mr. NiteshShahra Highest Importer of Edible Oil Highest Exporter of Oilmeals Importer of Edible Oil Exporter of Oilmeals Highest Importer of Edible Oil Highest Export of Oilmeals Globoil Woman Enterpreneur of the year Awarded to Ms. Amrita Shahra 2010 2010 2010 2009 2009 2008 2008 2008

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From GLOBOIL India, Mumbai : GLOBOIL GOLD award for outstanding Performance in category of : Energy Conservation Award Outstanding performance for a decade in Import of Edible Oil Outstanding performance for a decade in Export of Oil meal 2009 2009 2009

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From Dun and Bradstreet Dun and Bradstreet Award 2006 FROM THE SOYABEAN PROCESSORS' ASSOCIATION OF INDIA, INDORE : 1st Highest Exporter as Manufacturer Exporter 1st Highest Processor 1st Highest Seller of Soy Oil in Consumer Pack 1st Certificate of Merit for Highest sale of textured vegetable protein (Soy Nuggets) 1st Certificate of Merit for Highest Sale of Lecithin 2nd Highest Exporter as Manufacturer Exporter 1st Highest Processor 1st Highest Seller of Soya Oil in Consumer Pack 1st Certificate of Merit for Highest Sales of Textured Vegetable Protein (Soy Nuggets) 2nd Certificate of Merit for Highest Sales of Lecithin 1st Highest Exporter as Manufacturer Exporter 1st Highest Processor 1st Highest Seller of Soya Oil in Consumer Pack 1st Certificate of Merit for Highest Sale of Textured Vegetable Protein (Soy Nuggets) 1st Certificate of Merit for Highest Sale of Lecithin 1st Certificate of Merit for Manufacturing Maximum Number of Value Added Products 1st Highest Exporter as Manufacturer Exporter 1st Highest Processor (Private Sector) 2nd Highest Sales of Soya Oil in Consumer Pack 1st Certificate of Merit for Highest Sales of Textured Vegetable e 39 | P a g Protein 1st Certificate of Merit for Highest Sales of Lecithin Certificate of Merit for Manufacturing Maximum Number of 2002-2003

2004-2005 2004-2005

2004-2005 2004-2005

2004-2005 2003-2004 2003-2004 2003-2004 2003-2004 2003-2004 2002-2003 2002-2003

2002-2003

2002-2003 2002-2003

2001-2002 2001-2002 2001-2002 2001-2002 2001-2002

FOOD AND SPECIALITY

Ruchi Soya processes over 25 % of the country's crop. We manufacture and export soya based nutritional ingredients and products to over 60 countries across the globe. Our strategically located manufacturing facilities and infrastructure at almost every port enables us to provide high quality products to all our customers in the quickest time. An impressive roster of Fortune 500 companies on our client list bears testimony to this. All our facilities comply with USFDA and GMP norms and are certified by ISO 18001, ISO 22000, Cert-ID, Halal Committee and Kosher/ Orthodox Union Certificate, further underscoring our commitment to quality. We believe in constant innovation; it helps cut costs, compresses delivery time and improves quality. For instance our De-Husking technology breaks the seed in two instead of the prevalent cracking process. As a result, lesser amount of husk goes into processing, thereby yielding far higher protein content, a far better product. Since we are a manufacturer-exporter and procure directly from the farmer, we have a large degree of control over the quality of our products. Our plants are PLC controlled and fully automated and can control parameters to an exacting degree. Our Farmer Industry Partnership program also allows us to choose precise seed qualities

EXPORTS Ruchi Soya Industries Limited is the Flagship Company of Ruchi Group, a pioneer soya processor group, which started operating back in 1972-73 and is the first exporter of Soyabean Meal from India. Over the years, Ruchi has become one of the largest crushers of soyabean in India and presently has installed crushing capacity of about 4.1 million tons annually in 12 plants. Being a leading crusher,

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Ruchi with its annual export of about 6 lacs tons has also become one of the largest exporters of Indian Soyabean Meal accounting for nearly 25% of the total soyabean meal from India. Soyabean meal (de-oiled extractions / cake) is obtained after crushing of seed and extraction of oil by solvent extraction process. Soyabean meal is considered as one of the most valuable raw material for preparing poultry / aqua / animal feed in the world market as it contains a very high percentage of protein. Ruchi produces different grades of soyabean meal viz. de-hulled, high pro and normal FAQ varieties. Ruchi has been able to create a strong niche in the international market for its soyabean meal which is in high demand particularly by the quality feed producers in South East Asia, Far East and Middle East markets.

Besides, Ruchi is also able to export high end value added products like edible defatted soya flour, full fatted edible flour, soya lecithin, soya granules, soya flakes and soya chunks etc. All the products produced by Ruchi enjoy ready accessibility in the export market namely, Japan, Vietnam, Indonesia, Thailand, Philippines, South Korea, Taiwan, Middle East countries apart from Indian Sub continent countries namely Bangladesh, Pakistan, Nepal, Sri Lanka etc.

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List of Countries where Ruchisoya Industries have their trading Sr No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Country Argentina Australia Bahrain Bangladesh Belgium Bulgaria Cameroon Canada China Congo Egypt Ethiopia Fiji France Germany Ghana Greece Hongkong Hungary Indonesia Sr No Country 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Iran Ireland Italy Japan Jordon Kazakistan Kenya Korea Republic Kuwait Libya Macedonia Malaysia Mauritius Myanmar Nederlands NewZealand Nigeria Oman Pakistan Phillipinnes Sr No Country 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 Portugal Qatar Romania Russia Saudi Arabia Singapore South Africa Spain Sri Lanka Switzerland Syria Taiwan Thailand Turkey UAE Ukraine United Kingdom United States Vietnam Yemen Zambia

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CODE OF CONDUCT FOR BOARD MEMBERS AND SENIOR MANAGEMENT Introduction This Code of Conduct (here in after referred to as "the Code") has been framed and adopted by Ruchi Soya Industries Limited (hereinafter referred to as "the Company") in compliance with the provisions of Clause 49 of the Listing Agreements entered into by the Company with the Stock Exchanges. Applicability The Code applies to the Members of Board of Directors (hereinafter referred to as "Board Members") and Members of the Senior Management Team of the Company one level below the Executive Directors, viz. Vice Presidents, Unit Heads and all other executives having similar or equivalent rank in the Company and the Company Secretary of the Company (hereinafter referred to as "Senior Managers"). The Company Secretary shall be the Compliance Officer for the purpose of this Code. The Code shall come into force with effect from 1st January, 2006 and future amendments / modifications shall take effect from the date stated therein. Code of conduct

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The Board Members and Senior Managers shall observe the highest standards of ethical conduct and integrity and shall work to the best of their ability and judgment. The Board Members and the Senior Managers of the Company:

1. Shall maintain and help the Company in maintaining highest degree of Corporate Governance practices. 2. Shall act in utmost good faith and exercise due care, diligence and integrity in performing their office duties. 3. Shall ensure that they use the Company's assets, properties, information and intellectual rights for official purpose only or as per the terms of their appointment. 4. Shall not seek, accept or receive, directly or indirectly, any gift, payments or favour in whatsoever form from Company's business associates, which can be perceived as being given to gain favour or dealing with the Company and shall ensure that the Company's interests are never compromised. 5. Shall maintain confidentiality of information entrusted by the Company or acquired during performance of their duties and shall not use it for personal gain or advantage. 6. Shall not commit any offences involving morale turpitude or any act contrary to law or opposed to the public policy. 7. Shall not communicate with any member of press or publicity media or any other outside agency on matters concerning the Company, except through the designated spokespersons or authorized otherwise. 8. Shall not, without the prior approval of the Board or Senior Management, as the case may be, accept employment or a position of responsibility with any other commercial organization for remuneration or otherwise that are prejudicial to the interests of the Company and shall not allow personal interest to conflict with the interest of the Company. 9. Shall in conformity with applicable legal provisions disclose personal and/ or financial interest in any business dealings concerning the Company and shall declare information about their relatives (spouse, dependent children and dependent parents) including transactions, if any, entered into with them. 10. Shall ensure compliance with SEBI (Prohibition of Insider Trading) Regulations, 1992 as also other regulations as may become applicable to them from time to time. 11. Board Member and Senior Managers shall affirm compliance with this Code

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on an annual basis as at the end of the each financial year of the Company (as per Appendix I within 7 days of the close of every financial year). 12. Each Board Members and Senior Managers both present and future shall acknowledge receipt of the Code or any modification(s) thereto, in the acknowledgement form annexed to this Code as Appendix II and forward the same to the Compliance Officer. 13. Any breach of the aforesaid Code brought to the notice of the Compliance Officer or any member of the Board or Senior Management shall be reported to the Board of Directors of the Company for necessary action. Management of the Company Name A B Rao Dinesh Shahra Dinesh Shahra KailashShahra N Murugan NavinKhandelwal P D Dwivedi R L Gupta R L Gupta SajeveDeora Sanjeev Kumar Asthana V K Jain Designation Director CEO Managing Director Chairman / Chair Person Director Director Director Co.Secretary&Compl. Officer Secretary Director Additional Director Director

Main Competitors of Ruchisoya Industries Ltd

1. Alpine Industries Ltd. 2. Anik Industries Ltd.

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3. ArihantTournesolLtd. Ashiana Agro Industries Ltd. 4. AVT Natural Products Ltd. 5. ChakanVegoilsLtd. 6. Coromandel Agro Products and Oils Ltd. 7. Darshan Oils Ltd. 8. Devika Proteins Ltd. 9. DivyaJyothi Industries Ltd. 10. GokulRefoils& Solvent Ltd. 11. Gujarat Ambuja Exports Ltd. 12. Indian Extractions Ltd. 13. Integrated Proteins Ltd. 14. JR Foods Ltd. 15. K S Oils Ltd. 16. Khandelwal Extractions Ltd. 17. Kothari Fermentation &BiochemLtd. 18. Kothari Global Ltd. 19. Kriti Industries (India) Ltd. 20. Kriti Nutrients Ltd.

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The compnay forms a part of following indices 1. BSE 500 Index (500 Cos) 2. BSE Mid-Cap Index 3. S&P CNX 500 Equity Index (500 Cos) Listed On: 1. Bangalore Stock Exchange Ltd. 2. Cochin Stock Exchange Ltd. 3. Delhi Stock Exchange Assoc. Ltd. 4. Hyderabad Stock Exchange Ltd 5. Madras Stock Exchange Ltd., 6. National Stock Exchange of India Ltd. 7. Over The Counter Exchange Of India Ltd. 8. The Stock Exchange, Mumbai 9. Uttar Pradesh Exchange Assoc Ltd.

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Corporate Social Responsibility

Shri MahadeoShahraSukrat Trust is a Public Charitable Trust duly registered by Registrar of Public Charitable Trust, Indore, and was formed in 1976 specially to initiate the corporate social responsibility initiatives of Ruchi. The Trust initially undertook relief work for the underprivileged in the areas of health, education and other sectors at Manglia, Indore, Madhya Pradesh where the largest and first production plant of Ruchi is situated. The Trust runs a hospital throughout the year for the underprivileged and needy and provides free medical treatment, and free medicines. The hospital is upgraded every year with new and improved medical treatment and the facilities are extended by a team of doctors specialized in various fields of medicine. The Trust also organizes a one day Medical Camp every year on the November 25 which is the death anniversary of Late Smt. Kausalya Devi Shahra. The one day camp is conducted by a team of specialists and medicines are distributed free of cost. When Ruchi decided to put up its edible oil refinery plant at Patalganga in Raigad district in Maharashtra in the year 2003, it also decided to take on the corporate social responsibility since the day the construction began at site. Our plant is situated in remote and rural surrounded by a large tribal population. SHAHRA (Self-Help, Assistance, Hope, and Renewed-Action) Learning Centre at Patalganga was established to help less privileged students in their all- round development through various activities and cultural programs. A computer education initiative at DrParnekar School has benefited several students. An Ashram is being run at Omkareshwar in Madhya Pradesh where ShriMahadeoShahraSukrat Trust provides facilities for saints from distant places. The Trust is also involved in other social activities like Spiritual Functions, Yoga Camps, Alternative Therapies Camps and other Cultural Programs. The Trust is actively involved in helping the needy by way of donations, medical aid and educational grants. Over the years, ShriMahadeoShahraSukrat Trust has partnered with a number of NGOs and institutions. The main ones are: Aararmbh, an NGO specializing in providing rehabilitation to street children. The trust provides the basics to them such as pulses, grains and oil for consumption.

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Astha, an old age home; the trust contributes in the form of providing books and reading materials, food and has helped built recreational facilities for the home.

WOMEN EMPOWERMENT We are interacting with three women groups through the Self Help process. Basically saving money and putting that to sensible use have found recognition that the women need. They are seen as individuals who help the family in difficult times. They learn to make decisions, voice their concern and come together to solve their own problems. It is encouraging to see how the EktaMahila Group approached the Trust to help solve their Drinking water problem. They made a proper representation, put facts in proper perspective, were ready to help themselves and also worked out the distribution of water and paid their contribution as a token towards solving the water problem. They are now prepared to work on sorting out the water problem on a long term basis and are willing to look at Water shed programs. They came forward and asked us to start tailoring classes. They searched a well known teacher and gave us two machines until we could purchase four more machines. They pay a nominal fee and show great enthusiasm to learn. We have seen great progress in their skills and are very encouraged by it. EDUCATION The Rural children need to come into the mainstream of education. We have started a centre called the SELF LEARNING CENTRE and have equipped it with a good library, educational CDs, indoor and out door games, three computers, toys, and a large variety of learning material. The center provides a teacher who helps them in their studies and a computer teacher who supervises and teaches basic computer skills. The Youth who have left school, young girls and even a married lady have enrolled themselves for the computer classes and once again we are very encouraged to see this response.

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The children are exposed to various character building training programs of educational interest such as yoga, vedic mathematic, astronomy etc. We have also taken a lot of initiative in a nearby school the children attend, known as the DrParnekar`s High school. We have played an active role in improving the variety of activities in the school so as to improve the quality of education and help children take interest in their studies as the overall atmosphere of the school is improved and children are positive. We have also built two Sanitation blocks called the Pour Flush. The School has contributed 10% of the cost of the construction. We have been running a mobile library for the primary school children. Trained young girls from the village regularly go to distribute the books at the school and conduct related activity. Senior students are being exposed to Vocational courses available to them after SSC. Last year, The Scholarship for Academic excellence at the SSC Level by ShriMahadeoShahraSukrat Trust was started. Any student who scores more than 75% at the SSC Level living in our Project area is awarded a Scholarship Prize. HEALTH Whilst we would very much like to go into Health awareness programs in a systematic manner, we have started programs which can give immediate relief. We have partnered with The K.K. EYE Hospital which is run by the Sadhu Waswani Mission and has a super specialty hospital for eye care. We conduct Cataract Detection camps; those detected are then taken to the K.K. Eye Hospital for their surgeries. So far 68 financially challenged patients from these villages have got back their sight. These include the adivasis also.

The national program of Pulse Polio is another activity that we have decided to support and is in line with the nations goal to eradicate pulse polio. The Primary Health Centre staff is given the vehicle to move around in the villages that their centre is supposed to cover. Even the Cataract camp is held in this centre which gives them an edge also as the patients that come to them are then referred to the camp.

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Most diseases are water borne and are a perennial problem to the people of the village of Esambe as there is a scarcity of clean and safe drinking water in this village. We consider it our duty to help provide clean drinking water to attack this phenomenon and as the women of the village of Esambe are ready to take this on a priority, we will address this issue along with them.

1.3 STATEMENT OF THE PROBLEM

The selection of a topic for the research is the first step in a project. It is important to define a research problem. The problem defines the goal of the research. The research problem in this project is to compare the financial strength and weakness of RUCHI SOYA INDUSTRIES LTD. Through a careful analysis of its financial performance, the organization can identify opportunities to improve performance at the department, unit, or organizational level .The financial analysis helps to assess the liquidity and stability and thereby enhancing the performance.

1.4 OBJECTIVE OF THE STUDY Primary objective

The primary objective is to know about the financial position and progress of the company through analysis.

Secondary objectives
o To determine the short-term financing requirements of the business enables the company to monitor its working capital performance against targets. o To evaluate the liquidity, solvency, investment efficiency and operating efficiency of the company.. o To analyze the financial performance for the last five years. o To evaluate the profitability of the firm.

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o o

To find out the current financial position of the firm. To offer findings, suggestions, and conclusion

1.5 SCOPE OF THE STUDY

The scope of the study is limited to Ten years. Based on these historical data available in the balance sheets, analysis of the financial performances of the company for the above Ten years has been done. The current financial position of Ruchi Soya Industries can be determined by analyzing the financial statements of the company. Analyzing financial statements also helps to predict the future of the company. 1. The financial performance analysis helps the firm to know about its liquidity, profitability and inventory position of the firm. 2. It also helps the firm to know the financial strength and weakness

of a firm in a more easy and understandable manner. 3. Financial statement analysis helpful for the management to take of the firm, working capital

decision regarding the fund utilization

management and control of debtors and creditors.

1.6 RESEARCH METHODOLOGY Nature of research

The research is a analytical study geared to solve the specific problem relating to financial performances, by discovery of the relevant variables that is associated with financial statements.

Research design

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The purpose of this particular study is to analyze the financial strength and weakness of RUCHI SOYA INDUSTRIES .LTD using financial statement . This will help to make appropriate decisions on operational and pricing aspects. This study is conducted for a period of Six years of 2004-2010.

Sources of Data
There are two sources of data are primary data and secondary data. The present study mainly depends on secondary data.

Secondary Data
Secondary data collected from the annual audited report of RUCHI SOYA INDUSTRIES LTD, for Six years (Balance sheet and Profit and Loss account) and a research report.

Period of study
A study on the financial performance analysis of RUCHI SOYA INDUSTRIES LTD, BANGALORE consists of Six years. It starts from 2000 April 1st to 2010 March 31st.

Tools used for the study

Following tools or methods can be applied for analyzing financial statements or financial performance of an organization; RATIO ANALYSIS Liquidity Ratio Solvency Ratio Profitability Ratio Efficiency Ratio COMMON SIZE ANALYSIS

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1.7 LIMITATIONS OF THE STUDY

The study on the financial performance of Ruchisoya Industries Limited is not free from certain limitations. Some of them are as follows: The time period for undergoing the study is days. This period The study is limited to financial records of Six years for the

is not sufficient to study. study on the financial performance of the company. It is not possible to use different tools for analysis within limited time period. Limitations of ratio analysis are also applicable for the study. Findings are based on financial statements so there is a probability of error.

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II) REVIEW of LITERATURE/THEORETICAL BACKGROUND

The analysis and interpretations of financial statement is used to determine the financial positions and result of operation as well. A number of methods or devices are used to study the relationship between different statements.

Meaning and scope of financial analysis

The term financial analysis , also known as analysis and interpretation of financial statements , refers to the process of determining financial strengths and weakness of the firm by establishing strategic relationship between the items of balance sheet, P&L a/c and other operative data. The purpose of financial analysis is to diagnose the information contained in financial statement so as to judge the profitability and financial soundness of the firm. The analysis and interpretation of financial statements is essential to bring out the mystery behind the figures in financial statements so that the forecast may be of the future prospect for earnings, ability to pay interest and debt maturities and profitability. The term financial statement analysis includes both analysis and interpretation. While the term analysis is used to mean the simplification of financial data by methodical classification of data given in the financial statements , interpretation means explaining the meaning significance of the data so simplified.

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Analyzing financial statement, is a process of evaluating the relationship between component parts of a financial statement to obtain better understanding of a firms position and performance -Metcalf and Titard

Objectives
To estimate the earning capacity of the firm To gauge financial position and financial performance of the firm To determine the debt capacity of the firm To determine the long term liquidity of funds as well as solvency To decide about the future prospects of the firm

1. RATIO ANALYSIS
This is the most important tool available to financial analysis for their work. An accounting ratio shows the relationship in mathematical term between two inter-related accounting figures. The important ratios are:

1.Liquidity ratio: In order to stay in business, a firm should be able

to pay its obligations as they become due even when profits are low and cash flows are tight. To do this a firm has to maintain some reserve that can be used to cover cash flow deficits in the short run. A firm is said to be liquid if it has the ability to raise the cash that needed to pay all financial obligations coming.

1.1 Current Ratio: This ratio provides an indication of the liquidity

of the business by comparing the amount of current asset to current liabilities.

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1.2 Working capital: It is simply the amount that current asset

exceed current liabilities, and serves as the liquid reserve available to satisfy contingencies and uncertainties.

1.3 Acid test or Quick Ratio : Quick ratio measures how well a
company can pay its debts without selling inventory. It is same as the current ratio except it takes inventories out of the analysis.

1.4 Cash Ratio: cash ratio is a better indicator of liquidity than the acid test
ratio. If there is a considerable delay in the collection of accounts receivable, then the acid test ratio will not be useful. Ultimately, cash is required to discharge the current obligations. That is why; cash ratio is also termed as absolute liquid ratio.

2. Solvency Ratio: Solvency relates to the ability of a business firm to

pay-off all of its financial obligations. The survival and continuity depends whether it is able to stay solvent.

2.1 Leverage: Leverage is a ratio that measures a company's Capital

structure. In other words, it measures how a company finances its assets.

2.2 Debt to asset Ratio: This ratio provides information about the Co's
ability to absorb asset reductions arising from losses without jeopardizing the interest of creditors. It is used as a measure of solvency that reflects how much debt a business has per rupee of asset.

2.3 Total debt to equity Ratio: It measures how much debt a company is
using to finance its operations. If this number is too high it may signify future liquidity problems. If this number is too low it can signify inefficient use of the financing alternatives available to a company.

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2.4 Interest Coverage Ratio: This ratio measures a company's capacity

to meet interest obligations. In this ratio attempts to find out as to what extent the net profits earned will cover fixed charges or interest payments.

3. Profitability Ratio: A central objective of business is to generate

profits using the limited capital resources available at a given point of time. Businesses are continually assessing their profitability and trying to determine if they are doing as well as they could be in terms of generating profits.

3.1 Net Profit Ratio: This ratio measure of how much of a return to assets
a business is able to generate per rupee of total income. The higher the value of this ratio the greater the likelihood that there will be profits. This is a measure of overall profitability of a business firm.

3.2 Gross Profit Ratio: This is one of the most widely used ratios for the
measurement of profitability. For better analysis this ratio should be compared with industry data. Otherwise, it may indicate excessive purchasing or high labour costs.

3.3 Return on Assets: This ratio reflects the earnings that are generated
per each rupee of asset or in other words this ratio measures the company's ability to utilize its assets to create profits.

3.4 Return on Equity: This ratio is a measure of the profit that a business
earns per each rupee of equity that is invested in the business or in other words, it measures the income earned on the shareholder's investment in the business.

3.5 Return on Investment: This ratio measures the income earned on the
invested capital. It is the percentage of return on funds invested in the business by its owners. If the ROI is less than the return on an alternative, risk-free

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investment such as a bank savings account, the investors may put the money in such savings instruments.

4. Efficiency Ratios: A business firm's profitability is very

much determined by its financial efficiency. A firm is said to be efficient when it is able to produce maximum income per rupee of expenditure or expense.

4.1 Working Capital turnover Ratio: This ratio measures the number
of times the working capital is turned over during the year. A low ratio indicates slow moving operating cycle and it is a sign of efficiency.

4.2 Inventory turnover Ratio: It measures the liquidity of the inventory

in a manufacturing firm by establishing the relationship between the cost of goods sold and average inventory. The objective of calculating this ratio is to find out to what extent the inventory has been utilized efficiently and what proportion of working capital has been locked up in inventory.

4.3 Accounts Payable turnover ratio: This ratio measures the number
of times creditors are discharged during the year. Or in other words, it indicates that the liquidity of the firm's payables. A high payable turnover ratio indicates that the creditors' bills are discharged in a shorter period.

4.4 Accounts Receivable Turnover Ratio: It measures the number of

times per year a company completely clears all of its outstanding debt. This ratio indicates the average period for which sales revenue will be held in accounts receivable.

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II.

COMMON SIZE ANALYSIS

In vertical analysis of financial statements, an item is used as a base value and

all other accounts in the financial statements are compared to the base value. On the Balance sheet, total assets equal 100% and each asset is stated as a percentage of total assets. Similarly, total liabilities and stock holder's equity are assigned 100%, with a given liability or equity account stated as a percentage of total liabilities and stockholder's equity. On the income statement or profit and loss account, 100% is assigned to net sales, with all revenue and expenses accounts then related to it. These statements are also called 100 percent statements or component Statement.

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III) DATA ANALYSIS AND INTERPRETATION

In this chapter, the data collected through annual reports and other reports of the company is analyzed and interpreted so as to arrive at valid conclusions. The financial data become organized and condensed through financial tools. Analysis is the process of planning the data in an ordered form in such a way to combine them with the subject of the study. Interpretation is the outcome of the analysis in form of suggestions. The important statistical tools in this study are: Percentage analysis Bar diagrams

Percentage analysis: respondents.

Percentage analysis is used to find out the

percentage of respondent to a particular issue from the total no. Of

Bar diagram: Diagrams are the pictorial representation of collected data. Bar diagrams are used in this study.

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3.1 RATIO ANALYSIS

This section examines the different ratio's performance

3.1.1 LIQUIDITY RATIO'S 3.1.1.1 Current Ratio: Current ratio is the relationship between current
assets and current liabilities. Current asset Current ratio = Current liability

Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Current Assets
14826900000 24174700000 29375900000 44913800000 45634500000 52782800000

Current Liabilities
7351400000 15308000000 16283000000 30071500000 30178300000 30602900000

Current Ratio
2.016 1.579 1.804 1.493 1.512 1.724

Table no 3.1 Current ratio's performance

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Chart no: 3.1 Current Ratios Performance

Ratio
2.5 2 1.5 1 0.5 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2.016 1.804 1.579 1.493 1.512 1.724

Ratio

INTERPRETATION:

In the year 2004-2005 shows current ratio of 2.016, the second year 2005-2006 the ratio will be 1.579 , in 2006-2007 the ratio is 1.804 and reaches 1.724 by the year 2009-2010 from the downward trend of 1.493 in 2007-2008. The current position of the firm fluctuates from year to year. Even it tends to a downward movement in certain years the ratio is getting recovered in the very next year . It fulfill the current ratio's standard; therefore current financial position of the company is good .

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3.1.1.2 Liquid Ratio: Liquid ratio shows the relationship between liquid
assets and current liabilities. Liquid ratio = Liquid asset Current liabilities

Table no 3.1.1.2 Year

2004-2005 2005-2006

Liquid Assets
10150100000 13722300000

Current Liabilities
7351400000 15308000000

Liquid Ratio
1.380 0.896

2006-2007 2007-2008

9549279914 21393200000

16283000000 30071500000

0.586 0.711

2008-2009

24195800000

30178300000

0.801

2009-2010

30670900000

30602900000

1.002

Table showing acid test performance of Ruchisoya Industries Ltd

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Chart 3.1.1.2 Diagram showing quick performance of Ruchisoya Industries

L iquidRatio
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2004-20052005-20062006-20072007-20082008-20092009-2010 0.586 0.896 0.711 0.801 Liquid Ratio 1.38

1.002

INTERPRETATION:
From the table it is clear that quick ratio shows a fluctuating trend year by year. The quick asset performance showing a cyclical type of improvement. In the year 20062007 it shows a low level and coming years, it will increase to an upward scale. A high quickness creates less fund operation in the business.

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3.1. 2 SOLVENCY RATIO 3.1.2.1 Leverage Ratio:

leverage ratio shows the capacity of a firm to meet its outside obligations. It is the relationship between debt and equity. Leverage Ratio = Debt Equity

Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Debt
7694600000 10763600000 14697600000 15595800000 17208400000 23463600000

Equity
3553400000 8000500000 8883900000 10842000000 11625700000 19001300000

Leverage Ratio
2.165 1.345 1.654 1.438 1.480 1.234

Table no: 3.1.2.1 Table showing leverage position of Ruchisoya Industries Ltd

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Chart no: 3.1.2.1 Diagram showing leverage position of Ruchisoya Industries Ltd

L everag Ratio e
2.5 2 1.5 1 0.5 0 1.345 2.165 1.654 1.438

1.48 1.234 Leverage Ratio

INTERPRETATION:
In the year 2007-2008 to recent 2009-2010 shows a downward performance in the area of leverage. A bad leverage position to meet its outside obligations.

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3.1.2.2 Total asset to total debt: It shows the relationship between total
assets and total debt.

Total asset to total debt =

Total Asset Total Debt

Table no 3.1.2.2 Table showing solvency position of Ruchisoy Industries Ltd Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Total Assets
11248000000 18764100000 23581500000 26662000000 29062200000 42711400000

Total Debt
7694600000 10763600000 14697600000 15595800000 17208400000 23463600000

Ratio
1.461 1.743 1.604 1.709 1.688 1.820

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Chart no 3.1.2.2 Diagram showing solvency position of Ruchisoya Industries Ltd

Ratio
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 Ratio 1.461 1.743 1.604 1.709 1.688 1.82

INTERPRETATION:
From the table it is clear that total asset to total debt ratio shows a fluctuating trend year by year. In the year 2004-2005 ratio is 1.461 and 2005-2006 it was 1.73 and 2009-2010 it was showing 1.82.The Solvency preposition move in a cyclical manner, an average probability of assets to meet it's obligation at a large span of time.

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3.1.3 PROFITABILITY RATIO 3.1.3.1 Gross Profit Ratio: It shows the relationship between gross profit
and net sales. Gross Profit Ratio = Gross Profit Net sales

Table no: 3.1.3.1 Table showing gross margin performance of Ruchisoya Industries Ltd

Year
2004-2005

Gross Profit
876300000

Net Sales
38951400000

Gross Profit Ratio

0.022

2005-2006

175100000

74758700000

0.002

2006-2007

2220600000

85546700000

0.025

2007-2008

3284700000

109083200000

0.030

2008-2009

2365100000

119207200000

0.019

2009-2010

3728500000

134188400000

0.027

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Chart no: 3.1.3.1 Diagram showing gross margin performance of Ruchisoya Industries Ltd

GrossProfitRatio
0.035 0.03 0.025 0.02 0.015 0.01 0.005 0 0.002 Gross Profit Ratio 0.022 0.019 0.025 0.03 0.027

INTERPRETATION:
Gross margin shows a bad performance in year of 2005-2006 and this is followed by an upward trend in 2007-2008, remaining years shows a good performance in the gross margin segment with slight variations.

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3.1.2.3 Interest coverage Ratio: It establishes the relationship between

operating profit and interest charges. This ratio measures the capacity of the firm to pay profit and interest charges. Interest Coverage Ratio = operating profit Interest charges

Table no 3.1.2.3 Table showing interest coverage of Ruchisoya Industries Ltd Year
2004-2005

Profit before Interest Interest and tax

127400000 397700000

Interest Coverage Ratio

0.320

2005-2006

2718400000

967400000

2.810

2006-2007

367500000

1454400000

0.252

2007-2008

5173100000

1888400000

2.739

2008-2009

4244900000

1879800000

2.258

2009-2010

5535800000

1807300000

3.063

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Chart 3.1.2.3 Diagram showing Interest coverage of Ruchisoya Industries Ltd

InterestCoverag Ratio e
3.5 3 2.5 2 1.5 1 0.5 0 0.32 0.252 Interest Coverage Ratio 2.81 2.739 2.258 3.063

INTERPRETATION:
In the year 2008-2009 give a neutral performance in the area of interest. Recently it gives a better coverage to its business.

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3.1.3.2 Net Profit Ratio:

It shows the relationship between net profit and net sales. Net Profit Ratio = Net Profit Net Sales

Table no: 3.1.3.2 Table showing net margins performance

Year
2004-2005

Net Profit
435500000

Net Sale
38951400000

Net Profit Ratio

0.011

2005-2006

846200000

74758700000

0.011

2006-2007

1001600000

85546700000

0.011

2007-2008

1513100000

109083200000

0.013

2008-2009

885600000

119207200000

0.007

2009-2010

1670700000

134188400000

0.012

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Chart no 3.1.3.2 Diagram showing Net Margins performance

NetProfit Ratio
0.014 0.012 0.01 0.008 0.006 0.004 0.002 0 Net Profit Ratio 0.007 0.011 0.011 0.011 0.013 0.012

INTERPRETATION:
As compared to the five year's 2007-2008 shows a excellent ranking in the area of net margin. An efficient profit to meet its financial obligations like interest and dividend at a time.

3.1.3.3 Return on Total Assets:

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It shows the relationship between Net Profit and Total Assets. Return on Total Asset = Net Profit Average of Total Asset

Table no: 3.1.3.3 Table showing return on total Assets

Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net Profit
435500000 846200000 1001600000 1513100000 885600000 1670700000

Average of Total Assets

10932800000 150060500000 21172800000 251217500000 27862100000 35886800000

Ratio
0.039 0.005 0.047 0.006 0.031 0.046

Chart no :3.1.3.3

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Diagram showing Return on Total Assets

Ratio
0.05 0.045 0.04 0.035 0.03 0.025 0.02 0.015 0.01 0.005 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 0.005 0.006 Ratio 0.039 0.031 0.047 0.046

INTERPRETATION:
Total asset to return create an upward trend in the return scenario even if there is downward movements in certain years. By 2009-2010 it regained its peak position at a rate of 0.046. A good return to encourage the habit of investing in asset related areas.

3.1.3.4 Return on Investment:

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Return on investment ratio states the relationship between Net Profit and Total liabilities. Return On Investment = Net Profit Total Liabilities

Table no : 3.1.3.4 Table showing Return Relation to obligations

Year

Net Profit

Total Liabilities
11248000000

Ratio

2004-2005

435500000

0.038

2005-2006

846200000

18764100000

0.045

2006-2007

1001600000

23581500000

0.042

2007-2008

1513100000

26437800000

0.057

2008-2009

885600000

28834100000

0.030

2009-2010

1670700000

42464900000

0.039

Chart no: 3.1.3.4

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Diagram showing Return relation to Obligations

Ratio
0.06 0.05 0.04 0.03 0.02 0.01 0 2004-20052005-20062006-20072007-20082008-20092009-2010 0.038 0.03 Ratio 0.045 0.057

0.042

0.039

INTERPRETATION:
Return on investment shows an excellent performance in the area of investment. Even in the yeary 2008-2009 there is a low rate of performance in the return 0.03, this is regained by .039(09-10), and the remaining previous years with the good ratios of.038 (04-05), 0.045(05-06).042(06-07) and .057(07-08).

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3.1.4 EFFICIENCY RATIO: A firm is said to be efficient when it is able

to produce maximum income per rupee of expenditure or expense.

3.1.4.1 Working Capital Turnover Ratio:

The ratio measures the number of times the working capital is turned over during the year. WCTR = Net Sales Working Capital

Table no: 3.1.4.1

Table showing working capital to Turnover

Year
2004-2005 2005-2006

Net Sales
38951400000 74758700000

Working Capital
7475500000 16823300000

Ratio
5.210 4.443

2006-2007 2007-2008

85546700000 109083200000

13092900000 14842300000

6.533 7.349

2008-2009

119207200000

15456200000

7.712

2009-2010

134188400000

22179900000

6.050

Chart no:3.1.4.1

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Diagram showing working capital to turnover Ratio

Ratio
9 8 7 6 5 4 3 2 1 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 5.21 4.443 Ratio 6.533 7.349 7.712 6.05

INTERPRETATION:
Day to day to turnover shows a positive performance. The recent year 2009-2010 it was a downward trend of 6.05, but is followed by 7.712 (08-09), 7.349(07-08) and 6.533(06-07) and will increase in upcoming years.

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3.1.4.2 Accounts Receivables Ratio: Debtors Turnover Ratio shows the

relationship between Net credit sales and average debtors. Debtors Turnover Ratio = Credit Sales Average Debtors

Table no: 3.1.4.2 Table showing Debtors turnover preposition

Year
2004-2005

Net Credit Sales

39356800000

Average Debtors
501500000

Debtors Turnover Ratio

78.478

2005-2006

74867300000

6608100000

11.329

2006-2007

85705600000

8269200000

10.364

2007-2008

109297100000

10377100000

10.644

2008-2009

119420300000

10268300000

11.629

2009-2010

134348700000

11968200000

11.225

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Chart no: 3.1.4.2 Diagram showing Debtors Turnover position

DebtorsT urnover Ratio

90 80 70 60 50 40 30 20 10 0 11.329 10.364 10.644 11.629 11.225 DebtorsTurnover Ratio 78.478

INTERPRETATION:
Debtors remain outstanding the debtors turnover ratio indicates that the debtors are converted in to cash in a very good rate til the recent year 2009-2010.

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INTERPRETATION:
1. Reserves & surplus of the firm running in an upward manner, which means the company is running at a profit. 2. Short term asset performance is not good. problem in the organization. 3. Firm is able to increases the long term loans fund scenario. 4. Turn over position tend to be move in a positive way and profit grow in a positive type. This will create liquidity

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VI. FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 FINDINGS OF THE STUDY

1) The current ratio indicates that the firm's capacity to pay its current liability in time. The Ratio fluctuates from year to year and finally tends to a n upward trend like 1.724. Finally found that the current performance is good. 2) Cash segment in the business is very good. Therefore, a needy cash requirement to meet the day to day affairs at a short span of time. 3) The firm's leverage position is "excellent" to meet the outside obligation at a given period of time. 4) As compared to total assets to total obligations results a green signal to the business. 5) 6) The coverage of interest is neutral as compared to past year performance. The gross margin segment also create a performance as compared (20072008 is 0.30). It will result in better trade operations in the organization. 7) As compared to Gross Margin, the Net Margin is very good. It will result in better operational efficiency and eminent performance in the interest and dividend segment. 8) 9) Return on asset is good. It will create more asset preposition in the business. As compared to investment the return is good. It will create more investment opportunities in the business. 10) In working capital segment as compared to turnover is excellent. It results in day to day affairs of the company. 11) Inventory turnover grow in an upward trend. As compared to the standard, it is an excellent performance in the inventory segment.

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12) The debtors are turned over and converted into cash on an average. It will result in a liberal policy in credit sales segment. 13) In 100% statement results, a better turnover position in the business and profits tends to be an upward trend. 14) As per inventory conversions, it is reduced to 14 days and to create a maximum level of inventory in the stock preposition. 15) Debtors' conversion period is good. 16) Turnover position tend to be move in a positive way and profit grow in a negative type. 17) Reserves and surplus of the firm running in a upward manner, which means the company is running at a profit.

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4.2 SUGGESTIONS OF THE STUDY

1. To create a better current asset segment to reduce the operational problems in the organization. 2. On the basis of assets, taking any funds from the outsiders to reduce the problems in the organization. 3. A good accounting software oriented package to reduce the inaccuracy in accounting and related areas. 4. 5. Management should take necessary steps to monitor the constant increase in Current Liability. To have an efficient working capital management the short term fund should be used efficiently in the operation of the business. In order to improve the WC turnover ratio. 6. Its better to have more proportion of equity than debt, as it provides a larger margin of safety for the owners.

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4.3 CONCLUSION
The project entitled Financial Performance Analysis of Ruchisoya Industries, Bangalore help me to know about the financial performance and progress of the organization. From the study, I conclude that the financial analysis tools like ratio analysis and common size analysis to know about different party's position in the organization. Thus it can be conclude that Ruchisoya Industries is a well planned and executed enterprise. Some of the suggestions that have been discussed in this report are to be considered for adoption of the company.

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BIBLIOGRAPHY BOOKS
Gupta S.P, statistical methods. New Delhi: sulthan chandh &sons, 12th edition. Kothari C.R, research methodology. New Delhi: New age International (p) Ltd. Publishers, 16th edition. Maheswari S N, cost and management Accounting. New Delhi: sulthan chandh & sons, 12th edition. Punithavathy pandian, security analysis and portfolio management. Chennai: vikas publishing house pvt. Ltd, 6th edition Vinod A, cost and management accounting. Calicut: Calicut university publishers, 1st edition. Annual Report of Paragon Steels

WEBSITES:
www.ruchisoyaindustries.com www.niir.org www.cmg.net

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