Debt Ratio-annual Report Of Mawana Sugars

Annual report of MAWANA SUGARS LTD. CAPITAL STRUCTURE

CONTENTS • BACKGROUND OF THE COMPANY

CAPITAL STRUCTURE

BUSINESS OF THE CO. • WHEN WAS IT INTRODUCED • PRESENT POSITION OF THE CO. • STATEMENT OF DEBT EQUITY RATIO ANALYSIS

CONCLUSION

MAWANA SUGARS LTD. Mawana Sugars Limited (Formerly known as

Siel Limited) (‘The Company’) emerged as an independent entity in 1989 out of the restructuring of the erstwhile DCM Group. The Company has been engaged in the business of manufacture and selling of chemicals ,sugar and edible oils.  Mawana Sugars Limited (Formerly known as Siel Limited) is listed on the Mumbai Stock Exchange  With effect from 4.01.2008 the name of Siel Limited has been changed to Mawana Sugars Limited.

ANALYSIS The debt equity ratio of Mawana Sugars is

0.20. Shows that the company is investing Re.1 from their pocket and 20 Paisa from outside So the cost of equity capital > cost of debt capital Ke capital v. Capital can be raised by retaining earnings vi. Equity can be raised by issuing new shares

§ Cost of Debt ix. By borrowing funds from financial institutes

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