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INTRODUCTION
Finance is that business activity which is concerned with the organization and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise.-Wheeler
Financial management is that managerial activity which is concerned with the planning and controlling of a firm financial reserve. Financial management as an academic discipline has undergone fundamental charges as regards its scope and coverage. In the early years of its evolution it was treated synonymously with the raising of funds. In the current literature pertaining to this growing academic discipline, a broader scope so as to include in addition to procurement of funds efficient use of resources in universally recognized.
The objective of financial analysis is the pinpointing of strength and weakness of a business undertaking by regrouping and analyzing of figures obtained from financial statement and balance sheet by the tools and techniques of management accounting. Financial analysis is the final step of accounting that result in the presentation of final and the exact data that helps the business managers, creditors and investors.
Based on this reasoning, this project is an attempt to analyze the financial performance of SHYLENDRA ELECTRONICS
In the financial analysis a ratio is used as an index for evaluating the financial position and performance of the firm. The absolute accounting figures reported in the financial statement do not provide a meaningful understanding of the performance and the financial position of a firm.
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The following facts are stated as the need for the study:
To understand the volume of the profit and its reasonableness. To understand the movement of profit over a period of time. To know the reason for the variation in the profit. To know the present position of the company.
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This research is descriptive in nature and involves the following steps To understand theory behind financial performance analysis through various textbooks have been referred. Information is downloaded from various webssites to understand industrial background. The study period has been decided which is 3 years Annual reports and other published data have been collected from the company Identification of financial ratios, literally to reflect the liquidity, solvency and efficiency and profitability of the firm. In this case it has been decided to be LIQUIDITY RATIOS LONG TERM SOLVENCY RATIOS PROFITABILITY RATIOS TURNOVER RATIOS ACTIVITY RATIOS
Calculation of the above ratios over the study period and tabulation Finally forwarding certain recommendations and conclusion to the company. Hoysala College of Management Page 5
METHODOLOGICAL ASSUMPTION:
1) Definition used is universal. 2) Ultimate performance evaluations are financial performance. 3) Selected study period is sufficient. 4) Selected financial ratios reflect financial performance.
SOURCES OF DATA
Data is defined as group of non-random symbols in the form of text, image, or voice representing qualities, actions as objects. Data is processed into a form that is meaningful to the recipient and is of real and perceived value in the current or prospective actions or decisions of the recipient.
Primary data: The data are originally collected by an investigator or agency for
the first time for an statistical investigation and used by them in the statistical analysis and termed as primary data this datas are collected directly from the source for first time
Secondary data: Any data have been gathered earlier for some other purpose is
secondary data in the hands of an individual who is using them. In the hands of an individual who is using them. In contrast, the data that are collected first hand by someone specifically for the purpose of facilitating the study are known as primary data. Thus, primary data collected by one person may become the secondary data for another.
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Financial Statement Analysis Both primary and secondary data have been collected for the study purpose primary interviewing certain executives who were chosen on the basis of their indepth knowledge and work experience in the company. The interview was informal in nature in order to gain more information as much as possible.
Most of the data collected is of secondary in nature and it includes, Annual reports of the company. Journals - Business world, Business line, India today. Internet and daily newspaper. Other books and accounts maintained by the company.
FIELD WORK:
Fieldwork is done for the collection of data. For the purpose of collecting primary data, fieldwork involved here is visiting the offices of SHYLENDRA ELECTRONICS for interview chosen executive of the company. Also for the purpose of collecting secondary data like annual reports visiting the offices of the firm was mainly the fieldwork. Secondary data was also topped from web site.
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COMPANY PROFILE
Mr. S.P. Srinath and Mr. S. Srikanth was established the Shylendra Electronics in 1995. Shylendra Electronics is a Testing and Measuring equipment of Authorized Distributers & Represent of Megger ltd, Aplob ltd, Automatic Electric ltd, Nagman Instrument India ltd and Kyoritsu & Emerson. Serving power industry (Generation, Transmission and Distribution) through complete range of testing and measuring instrument. Electronic, Electrical, Mechanical Lab and Field grade instruments. Equipment for application in Defense Establishments. Partner of MEGGER LTD a pioneer in electrical test instruments. Experience of more than a decade in T&M instruments. Application based product support for various Industries and Projects. Conducting study of existing capital equipment and suggesting
changes/replacements
ELECTRONIC INSTRUMENTS
Power Analysers Clamp on Meters Earth Leakage Testers Multi Function Tester Power Supplies RF power meter On line UPS. Thermometer Infrared Process Calibrators Hoysala College of Management Page 8
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ELECTRICAL INSTRUMENTS BDV test kit HV Line detection device Relay Test Equipment Cable fault locator Energy meters Insulation Tester Primary and Secondary Injection Test Kit Transformer Turns Ratio Meter Tan Delta test set Micro ohm meter 1-600A Motor and Generation test set, synchronizing facility CB test kit and Analyser
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MECHANICAL INSTRUMENTS Vibration meters Cable crimping-precision grade Profile projector Hardness testers
CUSTOMERS
The customers of Shylendra Electronics are: 1. BHEL-ISG-Bangalore 2. BHEL-EMRP-Mumbai 3. BHEL-EPD-Bangalore 4. KPCL-BTPS-Bellary 5. KPCL-RTPS-Raichur 6. KPTCL 7. Indian Navy-Seabird (Mecon-Consultants) 8. NTPC-Koldam 9. Nuclear Power Corporation of India ltd- Kudankulam Hoysala College of Management Page 11
Financial Statement Analysis 10. ABB ltd, Bangalore 11. Tehri Hydro electric Project 12. NAL, Bangalore 13. BEL-Bangalore 14. ABB, Baroda 15. SIEMENS GURGAON 16. KPTCL, Bangalore 17. HAL ltd 18. ABB / Salem Steel 19. CQAL, Bangalore 20. Cooper Bussmann India 21. Siemens 22. Matwane pvt. ltd 23. MRPL-Mangalore 24. G.E India pvt. Ltd
COMPANY ADDRESS:
SHYLENDRA ELECTRONICS #52, 9th Main Road, 3rd Block Jayanagar Bangalore 560 011
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ACCOMPLISHMENTS
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1. Comparative Statements:
The comparative balance sheet analysis is the study of trend of the same items, group of items and computed items in two or more balance sheet of the same business enterprise on different dates. The changes in periodic balance sheet items at the beginning and at the end of a period can be observed, which reflect a conduct of a business.
3. Trend Analysis:
The easiest way to evaluate the performance of a firm is to compare its present ratio with the past ratios. When financial ratios over a period of time are compared it is known as time series or trend analysis, it gives on indication of a direction of change and reflects whether financial performance has improved as has deteriorated as has remained constant overtime.
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6. Cost-Volume-Profit Analysis:
It is a technique for studying the relationship between cost, volume and profit. Profits of an undertaking depend upon a large number of factors. But the most important of these factors are the cost of manufacture, volume of sales and the selling prices of products. It is the ascertainment of marginal costs and its effect on the profit of changes in volume or type of output by differentiating between fixed cost and variable costs. It is a technique, which is concerned with the changes in cost and profits resulting from changes in the volume of profit.
7. Ratio Analysis:
Ratio analysis is a technique of analysis and interpretations of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions. Ratio analysis is a widely used tool of financial analysis; it is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weakness of firm as well as its historical performance and current financial position can be determined.
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CLASSIFICATION OF RATIOS
1. LIQUIDITY RATIOS
Current ratio
Quick ratio
2. TURNOVER RATIOS
Working capital turnover ratio Inventory turnover ratio Debtor turnover ratio Creditor turnover ratio Fixed asset turnover ratio
4. PROFITABILITY RATIO
Gross profit ratio Net profit ratio Return on asset
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LIQUIDITY RATIOS
The term liquidity refers to firms ability to meet its current liabilities when they become due; liquidity ratios are used to measure the liquidity position or shortterm financial position of a firm. The bankers and creditors for materials are interested in the liquidity position. The ratios, which reflect the short-term solvency of a business unit, are current ratio, quick ratio, working capital ratio turnover ratio, stock turnover ratio, and debtors turnover ratio. There are four types of comparison 1) Trend ratios 2) Comparison of items within a single year financial statement of a firm. 3) Inter-firm comparison
Trend Ratios:
This involves a comparison of the ratios of a firm overtime. In other words, present ratios are compared with past ratios for the same firm. Trend ratios indicate the direction of change in the performance that is improvement, deterioration or constancy over the years.
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1. CURRENT RATIO:
Current ratio is defined as the ratio of current assets to current liabilities; it shows the relationship between total current assets and total current liabilities. It is a measure of firms short-term solvency. Current ratio is also called working capital ratio. It is calculated as follows:
The conventional rule a current ratio of 2:1 are more considered satisfactory. This rule is based on the logic that in a worse situation even if the value of the current assets becomes half the firm will be able to meet its obligation. This ratio represents margin of safety.
2. QUICK RATIO:
Liquid ratio is the ratio of liquid assets to current liabilities. It expresses the relationship between quick assets and current liabilities it is also called acid test ratio. It is computed as follows:
Liquid or quick assets include cash, bank balance debtors, and bills receivables and short term marketable securities in other wards they are current assets minus stocks & prepaid expresses. Stock cannot be included in quick assets because it is not easily and readily convertible into cash. Quick ratio is considered to be superior to current ratio in testing the liquidity position of a firm. It is an improvement of current ratio because in the calculation of quick ratio, the weakness of current ratio is overcome. When used in conjunction with current ratio, the liquid ratio gives a better picture of the firms liquidity a quick ratio of 1:1 is considered ideal.
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TURNOVER RATIOS
Turnover ratios are used to indicate the efficiency with which assets and resources of the firm are being utilized. These ratios are known as turnover ratios because they indicate the speed with which assets are being converted or turned over into sales. These ratios, thus, express the relationship between sales and various assets. A higher turnover ratio generally indicates better use of capital resources which in turn has a favorable effect on the profitability of the firm.
A low working capital turnover ratio may be reflecting an inadequacy of working capital and lower turnover of inventories and receivables. A high ratio may be the result of high turnover of inventories or receivables.
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This ratio is usually expressed in times. This ratio as may also be expressed in period
This ratio indicates the efficiency of the firm in selling its products
Inventory turnover ratio is a measure of liquidity of inventory. This ratio indicates the speed with which the inventory sold. A high turnover ratio indicates that inventory is sold fast. On the other hand, a low turnover ratio reflects over investment in inventories, accumulation of huge sock etc. This ratio is also an index of profitability. It should be remembered that, for a meaning full analysis, this ratio should be compared with similar ratios in previous year and with ratios of similar firm.
Net credit sales mean (Sales- returns). The term debtors for this ratio is the amount the debtors plus bills receivables at the end of accounting period. Sometimes the ratio is computed by taking the average of opening and closing debtors. It should be remembered that provision for bad and doubtful debts should not be deducted from debtors. When the credit sales are not given, the total sales may be used. The debtors turnover ratio may also be expressed in days. Then it is called average collection period or debtors velocity.
The debtor turnover ratio indicates the quality of debtors by measuring the rapidity as slowness in collection process. A shorter collection period (on higher turnover ratio) indicates prompt payment of debtor while a longer period (lower turnover ratio) indicates the in efficiency of credit collection.
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Financial Statement Analysis Net credit purchases mean credit purchase minus purchase returns. The term creditor for this ratio is amount of the creditors plus bills payable at the end of accounting period. Sometimes the ratio is computed by taking average of opening and closing creditors. The creditor turnover ratio may also be expressed in days. Then it is known as creditor payment period or creditors velocity.
The term fixed assets for this ratio is the depreciated value of fixed assets i.e, the amount of depreciation is deducted from the value of fixed assets.
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1. Proprietary ratio:
This ratio establishes the relationship between shareholders funds and the total assets. It indicates the proportion of total assets financed by shareholders. It is usually computed as percentage. It is computed as follows:
Owners funds, preference share capital and all reserves and surplus. Total assets include all assets including good will some others exclude goodwill from total assets.
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Financial Statement Analysis Interpretation: It reflects the general financial strength of the company. It enables creditors to find out the proportion of shareholders funds in total assets, higher the ratio, as share of shareholders in total capital of the company, better is the long-term solvency position of the company.
2. Solvency ratio:
This ratio expresses the relationship between total assets and total liabilities. It is pure ratio. It is calculated to measure the solvency of the firm.
Interpretation: Generally there is no standard set. But the lower the ratio of total liabilities to total as sets, more satisfactory and stable is the long-term solvency position of the firm.
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PROFITABILITY RATIOS:
The ultimate aim of any business enterprise is to earn maximum profit. A firm should earn profits to survive and grow over a long period of time. To the management, profit is the measure of efficiency and control. To the owners, it is a measure worth of their investment. To the creditors, it is the margin of safety. The management of the Company is very much interested in the profitability of the Company Besides management, creditors and owners also are interested in the profitability of the Company Creditors want to get interest and repayment of principal regularly owners want to get a reasonable return on their investment.
The profitability of firm can be easily measured by its profitability ratios; Profitability ratios measure the ability of a firm to earn on adequate return on sales, total assets and invested capital. Profitability ratios are calculated either in relation to sales or in relation to investment.
Interpretation: As the grass profit is found by deducting cost of goods sold from net sales, higher the grass profit ratio, better the results. A low gross profit ratio indicates high cost of goods sold due to unfavorable purchasing policies, upper sales, lower selling prices excessive competition etc.
Gross Profit ratio indicates the margin of profit on sale. It is useful to ascertain whether the average percentage of mark-up on the goods sold is maintained. There is Hoysala College of Management Page 32
Financial Statement Analysis no ideal Gross profit ratio for evaluation. However, the Gross profit ratio should be sufficient to cover all operating expenses, fixed interest charges, dividends and appropriation of reserves.
Here Net profit is the balance of profit and loss account after adjusting interest and taxes and all non-operating expenses and non-operating incomes. Net profit ratio indicates managements efficiency in manufacturing administering and selling products. This is a measure of overall profitability. It indicates what portion of sales is left to the owners after all expenses have been met. This ratio also indicates the firms capacity to adverse economic conditions.
Interpretation: A high net profit ratio would indicate higher overall efficiency of the business, better utilization of limited resources and reasonable returns to owners. A low net profit ratio would mean low efficiency and inadequate returns to owners.
3. Return on Assets:
Return means net profit after tax, total resources or total of all revisable assets, including intangible assets. This ratio measures the productivity of total resources or assets of a concern it indicates the profitability of the business.
Interpretation: As such, there cannot be any norms for this ratio. It depends on the industry in which the firm is operating.
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DEFINITION OF CONCEPTS
1) Financial analysis: - The use of financial data to evaluate the financial portion of a firm. 2) Balance sheet: - Statement showing assets and liability of the business as on a particular date and time 3) Income statement: - A summary of a firms revenues and expenses over a specified period ending with net income and loss for the period 4) Financial ratio: - An index that relates two accounting members and is obtained by dividing one number by the others 5) Liquidity: - Ability to meet short term obligation when they become due 6) Profit: - Measure of efficiency and control 7) Profitability: - The ability to earn an adequate return on sales, total assets and invested capital 8) Current asset: - Assets convertible in to cash during current year 9) Current liability: - Liabilities payable during the current year 10) Debt: - Barrowed capital 11) Equity: -capital assured by firm 12) Debenture: - Barrowed capital 13) Returns: - Revenue - all costs 14) Taxes: - To be paid/payable to government as a penalty for having made money 15) Fixed assets: - Long term assets Cost. Could be recovered over time in terms of depredation 16) Long term liabilities: - Those liabilities payable in a period more than one year 17) Industry: - A collection of firms in same line of industry 18) Provision: - fixed interest on borrowed capitals 19) Turn over: - Conversion of ratio of assets in to sales 20) Debtor: - A person who has to give money to company 21) Creditor: - A person who has to get money from company 22) Prepaid expenses: - Part of current assets Ex- advance paid Market price of equity: - price of equity in Secondary market applicable to debentures too Hoysala College of Management Page 34
ITEMS
Current Assets Current Liabilities Quick Assets Quick Liabilities Net Sales Net Working Capital Net Purchase Sundry Debtors Cost of Goods Sold Average Inventory Sundry Creditors Fixed Assets Owners Fund Total Assets Total Liabilities Gross Profit Net Profit
2008
5656519 3411838 5369449 2109682 13480939 2244681 8608703 4493595 9893976 340952 1967269 492732 1257395 6149251 4093842 3586963 398671
2009
7201919 4706622 6196919 4312038 14064508 2495297 11280539 4957257 10542609 636035 4259798 908111 1561153 8110030 5523733 3521899 303757
2010
3972387 2840599 3071565 2860490 15711111 1131788 12215964 2784556 12320142 952911 2696026 789082 1561153 4761469 3466102 3390969 369085
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Interpretation:
The actual current ratio has to be compared with the standard current ratio of 2:1. The company current ratio is 1.66:1 in the year 2008 that has been decreased to 1.53 in the year 2009 and it is again decreased to 1.40 in the year 2010. The companies need to maintain more current assets in order to meet its short-term obligations. We can conclude that the ratio is favorable as the current assets is more than the current liabilities
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1.6
1.55 1.53
CURRENT RATIOS
1.5
1.45
1.4 1.4
1.35
1.3
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2. Quick Ratio:
This ratio expresses the relationship between quick asset and quick liabilities. It reveals the firm ability to meet current liabilities through Quick assets.
Interpretation:
The actual quick ratio has to be compared with the standard quick ratio of 1:1. The company quick ratio is 2.55:1 in the year 2008 that has been decreased to 1.44 and 1.07 in the year 2009 and 2010 respectively. The quick ratio is more than the standard. The company has maintained favorable quick assets in every year.
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2.55 2.5
QUICK RATIO
1.5
1.44
1.07 1
0.5
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II.
Years Sales Net working capital Working capital turnover ratio Interpretation:
There is no standard working capital turnover ratio. The working capital turnover ratio in the year 2008 is 6.01 and it was decreased to 5.64 in the year 2009 and it was increased to 13.88 in the year 2010. It shows the company has maintained satisfactory working capital turnover ratio, it is very high in the year 2010 that is 13.88.
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14
13.88
12
10
6.01 6 5.64
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Years Cost of goods sold Average inventory Inventory turnover ratio Interpretation:
Usually a high inventory turnover indicates efficient management of inventory because more frequently the stock is sold. Here the company has maintained a high inventory turnover. In the year 2008 company inventory ratio is 29.02 and it has been decreased to 16.58 and 12.93 in the year 2009 and 2010 respectively. It shows that company has managed inventory not efficiently.
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30
29.02
25
20
16.58 15 12.93
10
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Interpretation:
This ratio indicates the liquidity position of inventory. Higher the ratio better is the efficiency of management of debtors. Debtor turnover ratio in the year 2008 is 3.00:1 and it decreased to 2.84 in the year 2009 and it increased to 5.64 in the year 2010. Very high debtor turnover ratio is not good. It shows very high credit sales. Here company has not maintained satisfactory debtor turnover ratio.
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3 3 2.84
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Financial Statement Analysis 4. Creditor turnover ratio: This is the ratio between net credit purchases and sundry creditors. It implies that credit period enjoyed by the firm in paying creditors.
Years Net credit purchases Sundry creditors Creditor turnover ratio Interpretation:
A high creditors turnover ratio shows that creditors are being paid promptly; usually there is no fixed norm for this ratio. The company credit turnover ratio is 4.38 in the year 2008 and it has been decreased in 2009 it is 2.65 and it is increased to 4.53 in 2010. Here company has maintained a very high credit turnover ratio and it shows that company is prompt and quick in paying creditor but it enjoyed very low credit period.
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3.5
3 2.65 2.5
1.5
0.5
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A high fixed asset turnover ratio reflects over trading. On other hand, a lower ratio indicates the idle capacity and excessive investment in fixed assets. The fixed asset turnover ratio is 27.36 in the year 2008. It decreased to 15.49 in the year 2009, in the year 2010 it increased to 19.91. Here ratio shows that a company has maintained a standard fixed asset turnover ratio in all 3 years.
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25
19.91
15.49 15
10
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III.
Interpretation:
It reflects the general financial strength of the company, higher the ratio better is the position of company. The proprietary ratio is 20% in the year 2008; in 2009 it decreased to 19.25 and in the year 2010 that is raised to 32.79. From above information we can interpret that company financial position strong in 2010 and its low in 2008 and 2009.
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35% 32.79%
30%
25%
PROPRIETARY RATIO
15%
10%
5%
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2. Solvency ratio:
This ratio expresses the relationship between total assets and total liabilities. This ratio is calculated to measure the solvency of the firm.
Interpretation:
Generally there is no standard set for this ratio here the long term solvency position is better because the ratio between total liabilities and total assets is very low and stable. Company solvency ratio is 0.67:1 in the year 2008 and it increased to 0.68:1 in the year 2009 and it also increased to 0.73 in the year 2010. From above ratios we can conclude that ratio between total liabilities and total assets are very low so company solvency position is satisfactory.
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0.74
0.73 0.73
0.72
0.71
0.69
0.68 0.68
0.67 0.67
0.66
0.65
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IV.
Interpretation:
If the gross profit ratio is high it is an indication of good results. If the gross profit is too low it is an indication of poor results. Company gross profit in the year 2008 is 26.61 it decreased to 25.04 and 21.58 in the year 2009 and 2010 respectively. The gross profit ratio is very high in the year 2008. Here results are satisfactory.
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30.00%
21.58%
20.00%
15.00%
10.00%
5.00%
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Interpretation:
A high net profit ratio indicates that the profitability of the concern is good. On the other hand a low net profit ratio indicates that the profitability of the concern is poor. Companies net profit ratio is 2.96 in the year 2008 and it decreased to 2.16 in the year 2009 and the year 2010 it increased to 2.35. It shows that company overall efficiency would decrease and increase. The company overall efficiency would satisfactory.
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3.00%
2.96%
1.50%
1.00%
0.50%
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As such there is no standard norm for this ratio. It mostly depends upon nature of industry. Return on assets is 6.48% in the year 2008 and it decreased to 3.75 in the year 2009 and it increased to 7.75 in the year 2010. Companies return on assets is satisfactory.
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8.00%
7.75%
7.00% 6.48%
6.00%
RETURN ON ASSETS
5.00%
4.00%
3.75%
3.00%
2.00%
1.00%
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TREND ANALYSIS
YEAR Sales Stock Cost of Goods Sold Gross Profit Net Profit
2008
13480939 267070 9893976 3586963 398671
2009
14064508 1005000 10542609 3521899 303757
2010
15711111 900822 12320142 3390969 369085
TREND PERCENTAGES (BASE YEAR 2008) SALES YEAR 2008 2009 2010 AMOUNT 13480939 14064508 15711111 TREND PERCENTAGE 100 104.33 111.71
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STOCK YEARS 2008 2009 2010 AMOUNT 267070 1005000 900822 TREND PERCENTAGES 100 376.31 337.30
COST OF GOODS SOLD YEARS 2008 2009 2010 AMOUNT 9893976 10542609 12320142 TREND PERCENTAGES 100 106.56 124.52
GROSS PROFIT YEARS 2008 2009 2010 AMOUNT 3586963 3521899 3390969 TREND PERCENTAGES 100 98.91 94.54
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NET PROFIT YEARS 2008 2009 2010 AMOUNT 398671 303757 369085 TREND PERCENTAGES 100 76.19 92.58
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FINDINGS
The Current ratio & Quick ratio is decreasing every year. The sales of the company is increasing every year, it is healthy development. Company debtor turnover ratio is very high it is not good for a company. High debtor turnover shows high credit sales. Company creditor turnover ratio is high this shows company paid his creditors very quickly. Gross profit ratio is decreased every year it is unhealthy to the company Net profit ratio is decreased in 2009, but it increase in 2010. Increasing the net profit is healthy development to the company. Return on asset is decreased in 2009, but it increase in 2010 it is healthy development to the company. Working capital turnover ratio is increased in 2010. Inventory ratio is decreasing every year, it is not good for the company
SUGGESTIONS
Company must take necessary steps to collect the debtors. The company has to take necessary steps to maintain the increase profitability. The company has necessary to maintain the high current assets and quick assets The company has maintain its increasing the sales The company has to take necessary steps to increase inventories.
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CONCLUSIONS
The analysis of the ratio is proving that company financial position is good but in some areas company is to improve those positions. The company current assets & quick assets are decreasing. Company has to take necessary steps to maintain the current assets & quick assets. The sales of the company is increasing every year, it is healthy development, company has maintain his increasing the sales Inventory ratio is decreasing every year; it is not good for the company. The company takes necessary steps to increase the inventories. The company debtor turnover ratio is high, it shows high credit sales. Company has to collect the debtor amount. Company creditor turnover ratio is high, it shows company paid his creditors very quickly so company cannot enjoy a long term credit period. Profitability of company is increase in 2010 it is very good to the company. Finally the company sales is increasing & profit is also increase it shows company is good position, it helps develop to the company.
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ANNEXURE
Balance sheet as on 31.03.2008 Liabilities Capital Account: S.P.Srinath S.Srikanth Secured Loans: Bank overdraft Bill discounting IOB car loan City bank loan amount amount
Assets amount amount
Fixed Assets: 704949 Fixed assets 552447 1257395 Depreciation Investments 1302156 3235396 Current assets: 433316 Closing stock 248688 5219556 Sundry debtors Fixed deposit : IOB Telephone deposit Loans and 1967269 advances Bills margin 16854 money 142413 2126536 Cash in hand TDS 110662 8714149
576042 83310
492732 15000
Current Liabilities: Sundry creditors Audit fees payable Other provisions Income tax payable
8714149
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Balance sheet as on 31/3/2009 Liabilities Capital Account: S.P.Srinath S.Srikanth Secured Loans: Bank overdraft Bill discounting City bank loan Pushpak loancar amount amount
Assets amount amount
Fixed Assets: 856828 Bajaj motorcycle 704325 1561153 Computer Furniture Lenovo laptop 394584 Printers 1555887 Scorpio car 163872 653239 2767582 Investments: Fixed deposit : IOB investment in RMF 25000 4259798 16854 110662 Current assets: FBT refund due
908111
Current Liabilities: Provisions Sundry creditors Audit fees payable Income tax payable Sales tax payable HSBC Loan
9707 1005000 1238211 4957257 1451 632578 11801 3000 7859005 8821667
Closing stock Loans and 53378 advances 27240 4492932 Sundry debtors Cash in hand Bills margin money TDS Telephone deposit 8821667
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Balance sheet as on 31/3/2010 Liabilities Capital Account: S.P.Srinath S.Srikanth Secured Loans: Bank overdraft Unsecured loans Pushpak loan- car Current Liabilities: Provisions Sundry creditors collected amount amount
Assets amount amount
Fixed Assets: 856828 Bajaj motorcycle 704325 1561153 Computer Furniture Lenovo laptop -19891 Printers 53063 Scorpio car 579464 612636 Investments: RD Account at IOB 164464 2696026 Current assets: -7023 2853466 Stock-in-hand Loans and advances Sundry debtors Cash in hand EMD Fixed depositsPBG Retention money Telephone deposit 5027255
789082
100000
900822 92662 911252 3864 190483 162786 1873304 3000 4138173 5027255
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Trading & Profit and Loss account for the year ended 31/3/2008 Particulars Opening stock Purchase Direct Expenses Gross Profit amount amount particulars Sales &service 414834 charges 8608703 1137509 Closing stock 3586963 13748009 Audit fees Bank charges Bonus Conveyance Courier Depreciation Advertisement Electricity charges Freight outwards Fringe benefit tax Insurance Office maintenance Repair & maintenance Partners remuneration Printing & Stationery Rates &Taxes
Rebates & Discounts 16854
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Financial Statement Analysis Trading & Profit and Loss account for the year ended 31/3/2009
Particulars Opening stock Purchase Service charges Gross Profit amount amount particulars Sales &service 267070 charges amount amount 14064508 1005000
Partners salary Telephone charges Advertisement Audit fees Bank charges Consultancy Charges Courier Demurage charges paid Depreciation FBT Fright charges IEE Specification Import Handling charges Inland charges Intrest on car loan Intrest paid to Bank Liquidated Damages Local conveyance loss on sale of Baleno car Office Maintenance Miscellaneous & Insurance premium expenses power charges Presentation-Motwane Printing & stationery PT Renewal for 2008-09 Rebates &Discounts Rent Mobile bill Salary & Wages
528000 117990 9051 16854 89390 2000 27956 6500 122722 27449 2941 5292 222178 208155 35479 299293 242197 58644 55928 5357 41452 15268 19696 74401 2000 117618 53100 1200 783041
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Trading & Profit and Loss account for the year ended 31/3/2010
Particulars Opening stock Purchase Service charges Gross Profit amount amount particulars 1005000 Sales account amount amount 15711111 900822
16611933 Gross Profit b/d Indirect incomes Dealer Discount received ORC from Motwane service bill raised 3390969
Advertisement Audit fees Bank charges Courier Customs duty Depreciation Diff in s.tax 2007-08 Import Handling charges Incentives Income tax Inland charges Insuarance premium paid Insuarance premium Scorpio Intrest paid to Bank Inward Frieght, tempo, coolie Liquidated Damages Local conveyance
6020 17000 77138 32387 672069 119030 19874 180832 79725 174148 447601 31935 12416 293751 694 37684 34102
1397761
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Partners remuneration
Packing material power charges Printing &stationery PT Renewal for 09-10
Rates &Taxes
Rebates &Discounts Reliance data card Rent
Telephone charges
Tempo & coolie Tender fees Training & seminars Net Profit
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BIBLIOGRAPHY
STANDARD TEXT BOOKS:
a. Management accounting by R.K. Sharma b. Management accounting by I.M. Pandey c. Financial Management by M.Y. Khan
WEBSITES:
a. www.shylendraelectronics.com b. www.google.com
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