Ratios

Particulars | Formula | Mar-06 | Mar-07 | Mar-08 | Mar-09 |

  |   |   |   |   |   |

Debt- Equity Ratio | Debt/Equity | 0.07 | 0.11 | 0.09 | 0.01 |

Financial Leverage | EBIT/EBT | 1.01 | 1.02 | 1.02 | 1.03 |

ROCE | EBIT/Capital.Employed | 32.82% | 30.65% | 26.18% | 17.37% |

Dividend Payout Ratio | Div. Per Equity Share/EPS | 8.50% | 8.32% | 8.35% | 8.30% |

Interest Coverage Ratio | EBIT/interest charges | 81.29 | 58.33 | 42.99 | 32.29 |

Financial coverage ratio

CALCULATION SHOWING AVERAGE COST OF CAPITAL:

Cost Of Equity | | | | | | |

Year | 2009-10 | 2008-09 | 2007-08 | 2006-07 | 2005-06 | Average |

PAT | 4723 | 2167.9 | 3258.2 | 2990.5 | 2337.2 | |

Net Worth | 11835.10 | 9344.90 | 8415.40 | 6853.90 | 5452.60 | |

Cost Of Equity | 39.91% | 23.19% | 38.72% | 43.63% | 42.86% | 37.66% |

| | | | | | |

Cost of Debt | | | | | | |

Year | 2009-10 | 2008-09 | 2007-08 | 2006-07 | 2005-06 | Average |

Interest & Financial Charges | | | | | 605 | 381.8 |

Secured loans | 26.50 | 0.10 | 0.10 | 63.50 | 71.70 | |

Unsecured Loans | 794.90 | 698.80 | 900.10 | 567.30 | 0.00 | |

Total Loan | 821.40 | 698.90 | 900.20 | 630.80 | 71.70 | 624.6 |

Cost of Debt | 3.36% | 8.24% | 7.94% | 10.89% | 10.49% | 7.69% |

Avg. Cost of Capital |   |   |   |   |   |  =22.98% |

REASONS FOR RAISING FUNDS THROUGH THE STATED SOURCES:

* In 2010 company raised its reserves by 2490.2 when compared with the previous year. Company raised money in the form of term loans as unsecured loans to meet the ever rising price of raw material and other factors of production.

* Company also raised its money in the form of unsecured loans. Unsecured loans attract less interest as compared to both secured loan and equity.

* In the financial year 2009-10, the government is planning to make a disinvestment of 10% of their stake with the view of raising fund from the proposed new steel plant.

* In shareholding, 0.02%...