Self Finance BBA College

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CHEPTER :1

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1.1 INTRODUCTION:We have visited ORACLE GRANITO LTD is a one of the small scale unit company in Gujarat. It is established in year of 2003 in Himatnagar. Which is in Sabarkantha district. In accounts work ORACLE GRANITO is starting at 4th Aug 2004. In ORACLE GRANITO also studied about ratio analysis. It helpful to me for making decision. The future decision is also was helpful to predict about management part year. Also preparing this report mostly concentrate on ratio analysis and this topic is also helpful to the management of ORACLE GRANITO LTD. All the information is provided by chief accountant of the company. So this information is helpful to me for the making for considering ratio analysis and successful complement.

1.2 ABOUT THE MARBITO

MARBITO the name synonymous for quality. The quality of the brand permit us to go globally. MARBITO is the first Indian vitrified tiles brand with the international quality and is only vitrified tiles to be around the world. The group has done a technical venture with the major Italian companies. The company has recently opened an office at London to meet the up coming demands of the International market. The group is also planning to open several offices in other parts of the world.

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Oracle granite limited Situated at Himatnagar,70km. from Ahmedabad. For manufacturing high quality vitrified tiles under. The brand name of MARBITO. It is a young company established recently. MARBITO drive an excellence an instable apatite for quality and customer satisfaction was accredited with ISO 9OO1: and 2000. MARBITO procure sophisticated technology from world leaders in vitrified technology such as sacmi, Barbieri, Itaca, Italy. MARBITO also have latest R & D laboratory with constantly trained workforce. MARBITO has been providing fascinating shades of marbles. Plain colors, antiskid, multi prints & Double charge excelling international technical specification to provide better floor solutions for our valued customers.

1.3) HISTORY & DEVELOPMENT :Oracle granite ltd. (MARBITO) is one of the leading manufacturer of vitrified and ceramic tiles. The company has stands amongst the best players in the ceramic industry. The company is well knolwn by its MARBITO brand which is a symbol of trust and quality in itself. The company has a state of the art technology and a very experienced management team.The company has its distribution fascility in each and every part of the country, with regional offices in Dilhi, Mumbai, Ahmedabad, Banglor. The company also has a presence in the international market.

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ORCALE GRANITO LIMITED is a closely held limited company, having registered office at shop No, 5 survey No. 322/1, near kubereshwer mahadev, saijpur Bogha, Naroda Road, ahmedabad was incorporated on 4th August, 2003 under the company Act, 1956 in state of gujarat and registrar of companies, Gujarat. The company was incorporated with objective of setting up a plant for manufacturing of vitrified plant. The company commenced commercial production of vitrified tiles with a capacity of 4000 square meter per day in the financial year 2004. the project was completed well before the estimated time schedule and as against the estimated 45% capacity utilization the company soon reached the capacity utilization of 85% showing the acceptability of its product. Looking to the increased demand of the product and mass acceptability of the brand of company i.e. MARBITO, the company then decided to increase the capacity by setting up another line of vitrified tiles and thus increased the capacity to 9000 square meter per day in 2006. Further the company has envisaged the demand and premium wall tiles which is picking up day by day. The demand is presently met by the importing the same from countries like countries like spain, vrazil, italy, china, etc.. thus the company has decided to import the wall tiles from various and sell under its brand.

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1.4) Oracle At a glance:-

1. Name of the unit:Oracle granito ltd. 2. Address of the unit:Oracle granito ltd. Survey NO, 120, Block NO, 237, Near Sabar Dairy, Talod road, At & Post: - Gadhoda, TA: - Himatnagar, Dist: - Sabarkantha, Gujarat,India, P.NO:- 02772-239833 02772-239834 Website:-www. Marbito ltd.

3.Establishment of the unit:This unit was Establishment on 14 January 2003.

4.Form of business organization:This is a large scale tiles industries and (Co-operative) private business. 5.Based a nature of activity:Based of nature of activity this is a manufacturing unit

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6.Area of the company is:3 Acres 7.Bankers of the unit:1.SBI vatava bank 3.I.C.I.C.I Bank of Himatnagar 4.OBC bank 5.Bank of Baroda 8.Auditors of the unit:1.Com secretary Vasant Patel (Ahmedabad) 2.Sunil Poddar & co., Ahmedabad 10.The company dealers :350 11.Aim of the unit:The main aim of unit is to earn profit because money is the blood of industry. The motto of the particular industry is Quality and responsibility the main object of this industry is to product or material at village or place at reasonable price.

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12.Board of directors / promoters:1. Shri Harshadbhai Patel 2. Shri Manilal Patel 3. Shri Ashvindbhai Patel 4. Shri prdnesh Patel 5. Shri devchandbhai Patel (Independent director) 13.Utilities:Electricity (Diesel Generator set) compressed air 14.No. of employees:250 employees working in the unit. 15.TOTAL DEPARTMENT: There are four departments in the company. (1) Production department (2) Marketing department (3) Finance department (4) Personnel department

1.5) PARTICULAR OF THE PROMOTAR:-

The company has been promoted by promoters of sterling group and safari group. The group has been manufacturing and distributing ceramic wall tiles under the brand name of bajaj tiles and the promoters were well crown with that before creation of new brand in Oracle Granito ltd. The promoters have
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rich experience in the ceramic industry and thus for management of Oracle granito ltd, they along with experience persons from ceramic industry have been appointed on the board of the company. All the directors are having rich experience in industry. They are also assisted by other senior executive and managerial personal for the development of business. As the promoters of the company were already in the line of manufacturing business of ceramic walls and floor tiles in various four units and having a network of 250 dealer in India, the dealers were demanding vitrified tiles from the company and meet the demand of the dealers, the promoters of the company has been dicided to set up a project of vitrified tiles jointly in this company.

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1.6) ORGANISATION STRUCTURE:

CHAIRMEN

MANAGING DIRECTOR

GENERAL MANAGER

PRODUCTIN MANAGER

PERSONAL MANAGER

MARKETING MANAGER

DGM OF MANAGER

RAW MATERIAL INCHARG

PERSONAL MANAGER

REGIONAL SALES MANAGER

FINANCE MANAGER

PRESS INCHARG KILN INCHARG FURNACE INCHARG

CLERK & TYPIST TIME KEEPIMG

AERA SALES MANAGER

ACCOUNTANT

CLERK BISINESS DEVLOPMENT EXECUTIVE

POLISHING INCHARG

SHORTING INCHARG 10

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1.7) PLANT LAY OUT:

MAIN OFFICE OF THE COMPANY

PRODUCTION UNIT

GARDEN CANTIN

GARDEN

WHARE HOUSE

PARKING

SCURITY OFFICE

TEMPLE

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CHEPTER: 2

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2.1) INTRODUCTION:Without production one no can make the marketing and without marketing there is no profit for the organization so to run the unit successfully production department is most important.. Production department manager have to check How the process is going on ? How the products are pleased ? which types of research and development is going on ? The Production activity is concerned with the converting row materials in to finished products. The production is main department of any organization. Availability of raw material is the main feature of any organization. Production is main source for every company so that production department is necessary for any departments or needed for any unit. production means creation and utilization of resources such as labor energy, material, machinery etc. The Company which is providing goods to the customer, for them production department is liked a heart of organization because all the activities of the organization depend on the production.

2.2) ABOUT CERAMIC TILES:The word Ceramic tiles is a genetic word which includes: Ceramic tiles; ceramic vitrified tiles; and porcelain tiles; Ceramic tiles may be classified as glazed ceramic tiles and unglazed ceramic tiles. Glazed ceramic tiles may be plain or decorated and are generally used as both wall tiles and floor tiles. Unglazed ceramic floor tiles are more suited to commercial and industrial settings. as glazed ceramic tiles and unglazed

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ceramic tiles. Glazed ceramic tiles may be plain or decorated and are generally used as both wall tiles and floor tiles. Unglazed ceramic floor tiles are more suited to commercial and industrial settings. Floor tiles are generally thicker, larger and more porous when compared to wall tiles. Floor tiles are generally of three kinds: Types of floor Tiles 1. Ceramic tiles 2. Porcelain tiles 3. Fully vitrified tiles (Granito).

PRODUCT DETAILS OF THE COMPANY:Company is producing only Vitrified types of tiles.

Basic raw material: Skie Ball Skie Powder Soap , Stone (Powder) China Clay Ball Clay Soda Feldsper Santapur (Patan) Bikaner Rajasthan Rajasthan Rajasthan Rajasthan Rajasthan (Bhuj)

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2.3) MANUFACTURING PROCESS:Raw Material

Blunting grinding

Spray drying

Pressing

Drying vertical

Firing (Inkillne) Sorting / Packing

Ware house

Loading & dispatch

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2.4

SAFETY MEASURE:For safety they give external training to their employees especially for

emergency. To provide medical activities for employees. Ambulance vanis also provided. They provide personal equipment to the employees which are as follow:- Mask - Safety belts - Safety helmet - Hand gloves - Occupational Health center QUALITY OF ORACLE GRANITO LTD PRODUCT:-

The supervisory system is done by total commitment & team effect. ORACLE GRANITO distributors LTD has quality at every stage of delivery & & resource.partner. manufacturing. for getting relationship with our customer and also suppliers,

2.5 DIFFERENT DESING OF TILES:

Epsania Brown Sandra White

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Arizona Dark Grey

Sandra Red

Epsania Blue

Sandra Green

Sandra Pink

Sandra Ivory

Epsania Yellow

Epsania Sandal

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Arizona Yellow

Tuscan Grey

Menta Ivory

Arizona Ivory

2.6) PRODUCTION PACKING DETAILS:-

Size/Box 605 x 605 600 x 600 807 x 807 1000 x 1000

Square ft. Size 15.76 sq.ft. 15.5 Sq.Ft 18.5 Sq.Ft 21.52 Sq.Ft

No. of Tiles 4 4 3 2
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Weight 30 kg 30 kg 40 kg 35 kg

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2.7) ORGANIZATION STRUCTURE:General Manager

Assistant manager

Executive

Supervisor

Labor

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2.8) PROCESS OF MANUFACTURING TILES:

The manufacturing process for wall tiles is different from the floor tiles. Wall tiles are manufactured through the bicultural process. Porcelain tiles are as ceramic tiles. they are made from raw material like kaolin clays, feldspar, silica and coloring oxides . They all are fired about 1200 degree Celsius.

Process of manufacturing tiles:

`1) Formation of body and drying: The power is taken from silos and sieving on a vibrator fitted with a market, it is fed into the hoppers of the hydraulic press where the power is pressed in o die to take the shape of tile of specific size as per the cavity of the die.. 2) Preparation of design and screen printing tiles In the printing section, various types of design are prepared and printing on the dried tiles by applying colors on the screen printing machines. Marble finish need to be screen printed; where as other types of tiles may not be subjected to this operation.

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3) Firing Thereafter the tiles are fed into the fast single layer roller kiln in which the tiles are fired. Here verification takes place in the body of the tile. 4) Polishing The baked tiles are subjected to polishing by using 36-38 head polishing lie. The tiles are also side chamfered. Thus in this section, size and thickness variation are minimized matt finish do not need polishing operation. 5) Sorting & Packing The polished tiles are subjected to checking and sorting , where an operator marks out tiles with defects and segregates them into different categories such as first,second,and third grade quality.Different grades of the finished tiles are then packed into different types packing boxes, which are marked accordingly. The packed finished goods are there after sent for dispatch.

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2.9) PROCESS OF FLOW CHART:

Section/ operation Equipment

Slip house clay & Mineral mixing slurry

Weighting hopper, conveyor ball mills/ strirrers/ blungers

Spray drying section Feeding Air heating Spray drying of slurry Storage of powder Spray drying plant Slip pump silos

Sieving, powder feeding

vibartor with magnate, Conveyor/elevator

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Pressing

Hydraulic presses/ Chilling plant

Automatic convey or/ fettling

Conveyor

Loading into Dryer

Loading machine

Drying

Horizontal dryer cooler Box

Unloading of transfer car

Unloading

Screen printing of tiles

Glaze line / glazing Accessories/ screen

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Printing machine

Screen printing of tiles Firing

Compensator, fast single layer roller kilm

Polishing

Polishing line/ squaring & charming line

Sorting & packing

Manual / plastic strapping Machine, fork lift

Stock/ finished goods Dispatch

Handling and transport equipment

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CHEPTER: 3

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3.1)INTRODUCTION:Personal department is also known as human resource department(H.R.M). It is an art of acquiring, developing and maintaining a competent work force in such a manner or to accomplish with maximum efficiency and economy the function and objectives of the organization. The assential area of this unit is management as manpower. Manpower is the greatest asset of any business enter price.

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Personal department is the code way of organization and treating individuals at work. The personal department is also known as labor management industries and Manpower management industries etc. Industry relation concern with trade union negotiation statement of industrial dispatch etc. 1. Man 2. Money 3. Method 4. Machinery 5. Material 6. Market

3.2) STRUCTURE OF PERSONNEL DEPARTMENT:Managing Director Personal manager DY.Supertendent

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Sr.officer (Personal & Administrator) Jr. Assist Clerk Management trainer Appreciate stockman

Peon

3.3) TIME KEEPING SYSTEM:Time keeping system in an organization is one of most important component time keeping system maintenance discipline in whole organization the time keeping system should accrued and correct. ORACLE adept time keeping system are as under .

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1st shift - 8.00 am to 4.00 pm 2nd shift - 4.00 pm to 12.00 pm 3rd shift 12.00 pm to 8.00 am TRAINING DEPARTMENT: After selection of employees, they are not ready to work in organization,so we have to train them to do particular work perfect. 1.ON THE JOB TRAINING: 2.OFF THE JOB TRAINING. 1). ON THE JOB TRAINING: ORACLE GRANITO LIMITED provide on the job training to the new workers. He gets training above the work and how to operate the different machine all these operating and running of the tools and machine given to employee in on the job training. On specific job. Rotation of position 2).OFF THE JOB TRAINING. vestibule school Apprenticeship

SELECTION PROCESS:-

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Selection process has been done by HR Department. Written test has been conducted before finalization of employee. If employees pass written test then Group discussion are arrange and after that the selection of the basis of company polices. RECRUITMENT:Recruitment is necessary for company & source of manpower is suitable for our organization. Recruitment is the generation of application for specific position through sources and it has also direct method. Recruitment by two ways:1. Internal:- Demotion - Promotion 2. External - Advertisement - on campus recruitment Promotion & Demotion policy:The oracle attitude of employees to work is good. They give attention to their work & performance their duty well.Promotion & demotion is based on seniority and work experience and ability skills aptitude. Wages & Salary

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Wages of labor in every department is Rs.65 While salary is based on skill payment of salary is done every monthly. in ORACLE GRANITO LTD the wages and salary administration is an important function of a personnel department in point of view employees as well as organization.

Facilities given to employees: Canteen Facilities 1 time 480 Rs 2 time 960 Rs Welfare facilities to employees Cold water facilities Garden facilities Lunch & dinner at subsidiary Parking facilities Benefits to employees o Pension scheme o Medical facility o provident fund o Group insurance o Over time facility

PROVIDENT FUND:Provident fund introduced in the year 1952. It is with a view to provide with like & maintains after the retirement of the employees. Company contribution 12%
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3.4) MISSION AND VISION

MISSION 1. To manufacture, market and services product of international standard. 2. Ensure that all company processes are geared to deliver the highest level of customer satisfaction. 3. Give priority to employees in all operation 4. Foster innovation and creativity at all levels.

VISSION 1. Oracle granite ltd. dedicates our slaves to total quality. 2. We give prominence to a healthy creative climate for new ideas to blossom with constant and continue innovation. 3. We, as one big finally committee ourselves to excellence and satisfy customer need by delivering consistency high quality product every tim

CHEPTER: 4
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4.1) INTRODUCTION :This department works for the sales and marketing of finished goods. It is the connection point between industry and customers.Marketing department is most important for selling finish goods to the customers.

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Company sell goods to the customers by the market so that market is a most important concept for every industrial unit. Marketing is based on four P:Product Price Place Promotion The local product is sale in DELHI, AHMEDABAD, MUMBAI, CHANNAI etc is decided by ORACLE it self. Marketing is the function of provide goods & service to the costumer and satisfy need and wants. marketing is separate department having its own different function. There is separate marketing department which helps in increasing activities. Organization structure of pricing policy: The total cost of raw material Total cost of production Total cost of transportation Tax,duty Trademark, registration fees Profit margin Advertising policy:Now days advertising is the need of business. It create image of company & firm. The brand name important for doing advertising in newspaper & TV etc.

4.2) MARKETING MEETING:

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The company arrange special Marketing meeting at every 3 month for the objective of. Analysis and review of market, Product, pricing, Competitor and brand development Market Segmentation:A company that decided to operate in a brand market recognized that it normally couldnt serve all customers in that market. The customers are too numerous and diverse in their buying requirement instead of competing every where the company need to identify the market segment that can serve must effectively for example. For the product of like clothes there will be different buying of the poor people. Thus market is distinguishing and segmented on the basis of the age, sex, income, geographical area, etc. This process is dividing the customer or buyers are called segmentation. In simple we can define marketing segmentation as a process of dividing a market into different sub market on the basic of some definition criteria. The product of oracle granito is produce under the brand name of MARBITO. ORACLE GRANITO cover almost all over INDIA.

Details of product line:Production is done according to the order. And availibity of the raw materials Available of raw materials Export demand The proper income Production capacity Efficiency of machines

4.3) CHANNEL OF DISTRIBUTION:35

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Company Company Department Distributors Dealers Retailers Consumers

Competitors:There are four types of competitors. 1. 2. 3. 4. Brand competition Industry competition Form competition Genetic competition

4.4) SALES PROMOTION:In the highly competitive world, promotion is an important in marketing for the growth & success of any organization. The company use following ways of the promotion.. Advertising, magazines, internet cable, speeches, press note etc.

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CHEPTER: 5

5.1) INTRODUCTION:37

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Finance is the life blood of the company or industry there is not perfect management of finance the unit have to finance management in the company. The vital post of company which can create or profit of a loss of the organization. With the help of finance manager the proprietor can know his company situation by profit & loss A/C.

5.2 ) ORGANIZATION STRUCTURE OF FIANCE:Finance manager Senior manager Executive Accountants Cashiers Clerks Risk, forced as inflation and the globalization of business & advancement in computer technology have increased the importance to the finance decision making.

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Capital structure:Its financial agreement of the company by various securities capital structure refer to a combination of long term source of find as long term debt & debenture & reserve & surplus. Characteristic:Flexibility Profitability Control Solvency

Bankers:I.C.I.C.I Bank of Himatnagar H.D.F.C Bank of Himatnagar S.B.I Vatava bank

Total turn over of the unit:Total turn over of the unit is about 100 corers.

Accounting system:Accounting are maintained on accrued accounting concept by accounting department.

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Fix assets:Assets are valued at historical cost including purchasing price and cost included to put such assets in its working condition. Investment:Investment valued is cost as made for long turm. Depreciation:Depreciation on fixes asset is calculation as per written down value method. Valuation Inventory:Trading stock cost or market price accepted raw material, packaging, material cost store and spares relievable. Sales:Sales of good is recognized on dispatch to customers & sales reported intensive of duty central sales fax & net of sales return if any during the year. Bonus and provident fund: Every year during in the month of Oct 8.33% of basic salary

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5.3) FINANCIAL STATEMENT:

PROFIT AND LOSS ACCOUNT FOR THE PERIOD 01/04/2009 TO 31/03/2010 AMOUNT PARTICULAR INCOMES: Income from operations 1,310,085,9 1147250083 47 Other income Increase in stock 2560571 14977156 3404571 3808991 2009-10 AMOUNT 2008-09

13276236 1154463645 74 EXPEN EXPENSES : Cost of materials/goods Manufacturing Expenses Admin. & Selling Exp Employees Cost Financial Expenses Preliminary exp. W/off P Q R S T L 310,047,749 648,004,137 169,116,847 56,134,225 54,043,655 113,068 1,237,459,6 80 NOTES ON ACCOUNTS Profit Before Depreciation and Tax Depreciation Profit after depreciation f 47,607,120 42,556,874 44,179,154 49,053,976 U 90,163,994 93,233,130 255,973,367 545,882,611 172,533,954 34,197,659 52,529,856 113,068 1,061,230,514

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Tax Provision current Deferred Fringe Benefit Taxes credit entitlement ( Mat) Profit after Taxes Prior period expenses (net) Short provision of earlier year taxation. Surplus brought forward Surplus carried to Balance Sheet BASIC AND DILUTED E.P.S

10,726,432 (421,449) 0

5,469,765 10,658,128 777,144

957,504

31,251,891 1,516,499 0

33,106,444 0 240,365

220,664,785 251,400,177

187,798,706 220,664,785

4.72

4.85

PROFIT AND LOSS ACCOUNT FOR THE PERIOD 01/04/2008 TO 31/03/2009 PARTICULARS INCOME : Income from operation Other Income M 1,147,250, 083 Increase/(Decrease) in N 3,404, 2,096,643 867,355,116 SCH. 2008-09 2007-08

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stock O

571 3,808,99 1 1,154,463, 645 860,777,799 (8,673,960)

EXPENSES:Cost of goods purchased P 255,973,36 7 Manufacturing Expenses Q 546,044,21 3 Admin. & Selling Exp R 172,533,95 4 Employees Cost Financial Expenses S T 34,036,057 52,5229,8 56 Preliminary exp. W/off NOTES ON ACCOUNTS L U 113,068 1,061,230 ,514 60350 741,530,263 26,827,512 38,296,773 117,863,748 377,941,730 180,540,151

Profit

Before

93,233,,13 0

119,247,536

Depreciation and Tax Depreciation

441,179, 32,136,187 154

Profit after Depreciation

F 76

49,053,9

87,111,348

Tax Provision current 5,469,765 - Deferred 10,658,1

9,768,045

17,618,675

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28 - Fringe Benefit Taxes Credit Entitlement (MAT) Profit after Taxes 444 33,106, 60,201,981 777,144 957,504 897,361 1,374,714

Surplus word

brought

far

187,798,7 127,529,010 06

(Excess)/Short

Provision 5 to

240,36

(67,715)

of earlier year taxation Surplus carried

220,664,7 187,798,706 85

Balance Sheet

BASIC AND DILUTTED EPS 85

4.

8.82

Schedules M to U forming integral part of the profit and loss account.

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BALANCE SHEETAS ON 31ST MARCH ,2010 PARTICULARS SCH. 2009-10 2008-09

I. SOURCES OF FUNDS [1] Share holders Funds: (a) Share Capital (b) Reserve & Surplus (c) Share Application Money. A B 68,259,100 309,256,782 0 68,259,100 278,521,390 690,000

[2] Loan Funds: (a) Secured Loans (b) Unsecured Loans C D 440,112,282 44,351,469 444,257,118 69,083,102

[3] Deferred Tax Liabilities

50,458,653 912,438,286

50,880,102 911,691,708

II. APPLICATION OF FUNDS [1] Fixed Assets (a) Gross Block (b) Depreciation (c) Net Block (d)Capital Work in progess [2] Current Assets, Loans & Advance : (a) Inventories G 267,705,121 240,228,812 F 576,162,997 178,900,180 397,262,816 104,490,877 547,575,181 131,293,060 416,282,121 100,009,004

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(b) Sundry Receivables (c) Cash & Bank (d) Loans & Advance

H I J

254,215,872 24,637,774 93,777,894 640,336,661

182,509,946 16,393,232 76,363,980 515,495,970 120,547,659

Less: Current Liabilities & provision Net Current Assets [3] Miscellaneous Expense (To the extent not wri/off)

229,991,273

410,345,389 L 339,204

394,948,311 452,272

912,438,286 NOTES ON ACCOUNTS u

911,691,708

Schedules

A to L and U forming part of the Balance Sheet

BALANCE SHEET AS ON 31ST MARCH, 2009 PARTICULARS SCH. 2008-09 2007-08

I. SOURCES OF FUNDS [1] Share holders Funds: (a) Share Capital (b) Reserve & Surplus A B 68,259,100 278,521,390 68,259,100 245,655,311

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(c) Share Application Money

690,000

[2] Loan Funds: (a) Secured Loans (b) Unsecured Loans C D 444,257,118 69,083,998 425,498,912 49,247,974

[3] Deferred Tax Liabilities

50,880,102 911,691,708

40,221,974 828,882,422

II. APPLICATION OF FUNDS [1] Fixed Assets (a) Gross Block (b) Depreciation F 547,575,181 131,293,060 428,741,234 88,209,157

(c) Net Block (d) Capital work-inprogress.

416,282,121 100,009,004

340,532,077 119,682,223

[2] Current Assets, Loans & Advance : (a) Inventories (b) Sundry Receivables (c) Cash & Bank (d) Loans & Advance G H I J 240,228,812 182,509,945 16,393,232 76,363,980 515,495,969 196,897,670 180,387,078 31,909,132 63,575,905 472,769,785

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Less: Current Liabilities & provision Net Current Assets [3] Miscellaneous Expenditure (To the extent not wri/off)

120,547,659

104,667,002

394,948,310 L 452,272

368,102,782 565,340

911,691,708 NOTES ON ACCOUNTS U

828,882,422

5.4) RATIO ANALYSIS:

The use of ratio for the purpose of arriving at some conclusion regarding some aspect of performance or financial position of business is known as ratio analysis. 1) NET PROFIT RATIO: (2010)
Net profit ratio = Net profit 100 Sales =

(2009)
Net profit ratio = Net profit 100 Sales

32,251,891 100 1327623674 2.42 =

33,106,444 100 1154463645 2.86

The ratio is computed on the basis of net profit earned from operation of business and non- operating expenses and incomes are excluded. The ratio
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indicates what proportion of sales revenue is left to the proprietors after all operating expenses met. The higher this ratio, the better will the profitability. We show that in 2009 profit ratio is better than in 2010. 2) RETURN ON CAPITAL EMPLOYED RATIO: (2010) Return on capital employed = Net profit = = 32251891 100510991 32.09 % = 100 100 Capital employed Net profit = 33106444 346780490 9.54 % (2009) Return on capital employed= 100 100 Capital employed

This ratio is an index of profitability of business and is obtained by comparing net profit with capital employed. The ratio is normally expressed in the percentage. The term capital employed includes share capital,reserve and long term loans as debentures. In this ratio analysis in 2009 ratio is 9.54 % . and in 2010 ratio is 32.09 %. That shows that oracle granite limited give more care to his employes in 2010 then 2009. 3) EXPENSE RATIO: (2010) Expense ratio = expense Sales = 1237459680 1327623674 (2009)

100

Expense ratio = expense Sales = 1061230514 1154463645

100

100

100

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93.20 %

= 91.92 %

These ratios over as number of years will reveal the extent to which expenses vary in relation to sales. Some accounts calculate expenses ratio in respect of raw material consumed, direct wages and factory expenses. Here expense is higher as relation with the sales. So it as to try to decrease the expense or do control over the expenses

4) CURRENT RATIO: (2010) Current ratio = Current assets Current liabilities = 640336661 2299911273 = 2.78:1 (2009) Current ratio = Current assets Current liabilities = 515495969 120547659 = 4.27: 1

This is widely used ratio shows the proportion of current assets to current liabilities. It is known as working capital ration as it measure of working capital available at a particular time. This is satisfactory ratio for the company 5) LIQUID RATIO:
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(2010) Liquid ratio= liquid assets Liquid liabilities = 372631540 229991273 =1.62:1 = =

(2009) Liquid ratio= liquid assets Liquid liabilities 275267157 120547659 2.28:1

Liquid ratio is designed to show the amount of cash available to meet immediate payments. It is obtained by dividing the liquid assets of stock in trade.

6) PROPRITARY RATIO: (2010)

Proprietary ratio

(2009)
Proprietary ratio

= Proprietary fund 10 Total assets

= Proprietary fund 100 Total assets

= 377515882 100 1897153531 = 19.90

= 346780490 1710655335 = 20.27

100

The ratio shows the proportion of proprietor fund to the total asset employed in the business. This ratio is according to Reserve bank of India. And it is most beneficial to the company

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7) RATE OF RETURN ON CAPITAL FUND RATIO: (2010)

RATE OF RETURN ON CAPITAL FUND RATIO: = RATIO:=

(2009)
RATE OF RETURN ON CAPITAL FUND

NET PROFIT = 32251891 377515882 = 8.54

100 100

NET PROFIT Share holders fund = 33106444 346780490 = 9.54

100 100

Share holders fund

This ratio shows the relation sheep between fixed capital and fixed assets the fixed assets. the ratio must be 1:1or more an this ratio is according to criteria Fixed capital must be more or equal to the fixed assets

CHEPTER: 6

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Conclusion:In the ORACLE GRANITO LTD, here we experienced the working of tiles industry. We got good response from the executive of the entire department and got good support from the concerned executive. We gained a good deal of knowledge regarding companys finance, production, marketing and HR departments. The executives of the company gave us their full attention and they also gave us answer positively. The workers were working in their own
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department like production, marketing, quality control etc very much effectively and as per my observation the future of the company is very bright. The learning we got in ORACLE GRANITO LTD is practical exposure of our theoretical subjects of BBA. And so this learning will help us in getting good grasp over our subjects. So I am grateful and an again very much thankful to the executives of the company and all those people who helped me directly and indirectly in completion of my project satisfactorily.

CHEPTER: 7

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BIBIOGRAPHY :

MARKETING H.R.M. FINANCE

: : :

PHILIP KOTLER ASHVTHAPA B.S SHAH (Page 72)

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WEBSITE

: :

WWW.MARBITO.CO.IN B.S SHAH

COMPANY ACCOUTS

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