Annexure 7.3 on the OLC contains an introduction on the Indian Paper Industry along with graphical trends on few ratios with a focus on three specific industry players in the same. This case is a continuation of that discussion. In the same annexure 7.3 27-year graphs of some more key financial ratios of the overall industry and also, of three paper players, namely, Andhra Pradesh Paper Mills, Rohit Paper Mills and Seshasayee Paper Mills are shared, namely, Debt to Equity Ratio; Networth Turnover Ratio; Return on Equity (ROE); Price-Earnings (P/E) Ratio; Dividend Payout Ratio; Quick Ratio; Times Interest Covered Ratio; and Average Collection Period. Based on these graphs, you are required to make comments on the following issues:

1. How have these ratios changed over time for the industry and also for the three firms being studied?

2. What could be the possible reasons behind these trends and fluctuations of these players and the industry averages?

3. What can be concluded about the financial position of the industry?

4. How has the capital structure of the industry and these players changed in the last two-plus decades? What could be the possible reasons for this change?