Page 89 - CCL AR 2017 Final

Comments on Ratios

Profitability Ratios:
Profitability ratios of the Company are enhanced due to increase in dispatches. The increase in
sales is mainly due to start of commercial operations of another line during the year and increase
in cost of sales was mainly due to increase in depreciation pertaining to Line II. Resultantly the
Company has managed to improve its profitability during the year 2017.

Liquidity Ratios:

The positivity reflected in the liquidity of the Company owing to healthy profitability and
improved cash flows. In view of expansion, Company’s liquidity position improved to cater the
growing needs of working capital requirements.

Activity / Turnover Ratios:

The Company managed to substantiate its financial position by enhanced inventory
management and improved operating cycle.

Investment / Market Ratios:

A considerable increase was witnessed in the earnings per share due to increased profitability of
the Company on account of increased capacity. The investor‘s confidence has been further
strengthened due to stable and improved growth in the financial position of the Company.

Capital Structure:

Capital structure of the Company was significantly improved due to increase in Shareholders’
Equity. The Company managed to obtain financing facilities at very competitive rates to finance
expansion project, hence managed its gearing at desirable level.

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Annual
Report 2017