How does the company compare with the prevailing norms of the rivet industry?

Benazir Rivet Company (BRC) is one of the largest rivet manufacturing companies having a high market reputation on the quality of the rivets manufactured.
As an independent financial advisor, you have been requested to evaluate the decline in the efficiency of BRC, a leading North Indian company engaged in the manufacturing of different varieties of rivets and a wholesaler of rivet equipments, from the balance sheet and income statement for the year 2004 and 2005 and the relevant data provided by the Rivet Manufacturers Association for the relevant period.
Benazir Rivet Company—Balance sheet As on 31 March 2004 As on 31 March 2005 (Rs in ‘000) (Rs in ‘000)
Assets:
Cash 450 480 Bills receivables 380 750 Inventory 400 1,200 Investments 120 120 Total current assets 1,350 2,550 Buildings (net of depreciation) 600 530 Plants and machineries (Net) 2,100 1,810 Other assets 300 180 Total assets 4,350 5,070 Liabilities and capital:
Bills payable 630 1,140 Sundry creditors 70 280 Due to officers 50 50 Total current liabilities 750 1,470 6% debentures 1,200 600 Total liabilities 1,950 2,070 Share capital 1,800 2,100 Retained earnings 600 900 Total liabilities and capital 4,350 5,070 Benazir Rivet Company—Income statement Year ended 31 March 2004 Year ended 31 March 2005 (Rs in ‘000) (Rs in ‘000)
Net sales 4,490 4,860 Cost of sales 3,380 3,900 Gross profit 1,110 960 Operating expenses 330 360 Net profit (before taxes) 780 600 Income tax 390 300 Net profit after tax 390 300