CHAPTER I

INTRODUCTION
1.1 INTRODUCTION AND DESIGN OF THE STUDY
Finance holds the key to all human activity. It is guide for regulating
investment decisions and expenditure and endeavors to squeeze the most out of every
available rupee. The government too, treats it as a signpost, a beckon to responsibility
that covers men, money, material, methods and management. ut of these finance is a
resource and it has to be managed efficiently for the successful functioning of an
enterprise. Financial management is that managerial activity !hich is concerned !ith
the planning and controlling of the firms financial resources.
1.1.1 Financial Performance Analysis.
The financial statement provides the basic data for financial
performance analysis.
"asic limitation of the traditional financial statement comprising the
balance sheet and the profit and loss account is that they do not give all the
information regarding the financial operations of a firm. #evertheless, they provide
some useful information to the extent the balance sheet mirrors the financial position
on a particular date in terms of the structure of assets, liabilities and o!ners equity,
and so on. The profit and loss account sho!s the results of operations during a certain
period of time in terms of the revenues obtained and the incurred during the year.
Thus, the financial statements provide a summarized vie! of the financial position
1
and operations of a firm. Therefore, much can be learnt about a firm from a careful
examination of its financial statements as invaluable documents $ performance
reports. The analysis of financial statements is, thus, an important aid to financial
analysis.
The focus of financial analysis is on key figures in the financial
statements and the significant relationship that exists bet!een them. The analysis of
financial statements is a process of evaluating relationship bet!een component parts
of financial statements to obtain a better understanding of the firm%s position and
performance. The first task of financial analyst is to select the information relevant to
the decision under consideration from the total information contained in the financial
statement. The second step involved in financial analysis is to arrange the information
in a !ay to highlight significant relationships. The final step is interpretation and
dra!ing of inferences and conclusions. In brief, financial analysis is the process of
selection, relation, and evaluation.
1.1.. Tools of Financial Analysis
& financial analyst can adopt the follo!ing tools for analysis of the
financial statement. These are also termed as methods of financial analysis.
1.1..1. Ra!io analysis
'atio analysis is a !idely ( used tool of financial analysis. It is defined
as the systematic use of ratios to interpret the financial statements so that the strengths
and !eakness of a firm as !ell as its historical performance and current financial
condition can be determined. The term ratio refers to the numerical or quantitative
relationship bet!een t!o items$ variables. This relationship can be expressed as) *i+
percentages *ii+ Fractions *iii+ ,roportion of numbers. -omputing of ratios does not
add any information not already inherent in the financial statement. The ratios reveal
that relationship in a more meaningful !ay so as to enable us to dra! conclusions
from them. The rationale of ratio analysis lies in the fact that it makes related
information comparable. & single figure by itself has no meaning but !hen expressed
in terms of a related figure, it yields significant interfaces. The ratio analysis, as a
.
.
quantitative tool, ans!ers to questions such as) are the net profits adequate/ &re the
assets being used efficiently/ Is the firm 0olvent/ -an the firm meet its current
obligations/ &nd so on.
It is also defined as 1an expression of the quantitative relationship
bet!een t!o numbers2. *3ixion, 4ell, "edford 1567+.
1.1.... Si"nificance of Ra!io Analysis
'atio analysis determines the follo!ing
1. The ability of the Firm to meet its current obligations.
.. The extent to !hich the firm has used its current obligations.
8. The efficiency !ith !hich the firm is utilizing its various assets in
generating sales revenue.
9. The overall operating efficiency and performance of the firm.
1.1..# $imi!a!ions of Ra!io Analysis
1. It is difficult to decide on the proper basis for comparison.
.. The comparison is rendered difficult because of differences in
situations of t!o companies or of one company over years.
8. The price level changes make the interpretations of ratios invalid.
9. The differences in the definitions of items in the balance sheet and
income statement make the interpretation of ratios difficult.
:. The ratios calculated at a point of time are less informative and
defective as they suffer from shot;term changes.
1.1.2.3 Uses
These can be useful indicators of measures to appraise the financial health of
an organization and its profitability, financial stability *long term and short term+,
financial management and overall efficiency of the business. The inherent strength
underlying the ratio analysis is the fact that absolute figures are meaningless and some
times misleading and therefore for the purpose of any comparison all absolute data
should data should be converted into ratios representing meaningful relationship.
8
1.1.8 Profi!a%ili!y Ra!ios
,rofitability reflects the final of result of business operations.
1.1.9 T&rn o'er Ra!ios
Turn over ratios, also referred to as activity ratios or asset management
ratios, measure ho! efficiency the assets are employed by the firm.
1.1.( $i)&i*i!y ra!ios
<iquidity refers to the ability of a firm to meet its obligations in the
short run, usually one year. <iquidity ratios are generally based on the relationship
bet!een current assets and current liabilities. The important liquidity ratios are
-urrent ratio, acid;test ratio
1.1.+ $e'era"e Ra!ios
Financial leverage refers to the use of debt finance. 3hile debt capital
is a cheaper source of finance, it is also a riskier source of finance. <everage ratios
help in assessing the risk arising from the use of debt capital.
1.1., Com-ara!i'e Financial S!a!emen!s
-omparative financial statements are these statements !hich have been
designed in a !ay so as to provide time perspective to the consideration of various
elements of financial position embodied in such statements. In these statements
figures for t!o or more periods are placed side by side facilitate comparison. "oth the
income statement and balance sheets can be prepared in the form of comparative
financial statement
9
9
1.1.. Com-ara!i'e Income S!a!emen!s
The income statement discloses net profit and net loss on account of
operations. & comparative Income 0tatements !ill sho! the absolute figures for t!o
or more periods, the absolute change from one period to another and if desired the
change in terms of percentages.
1.1./ Com-ara!i'e 0alance S1ee!
-omparative balance sheet as on t!o or more different dates can be
used for comparing assets and liabilities and finding out any increase or decrease in
those items.
1.1.12 Common Si3e Financial S!a!emen!s
-ommon size financial statements are those in !hich figures reported
are converted into percentages to some common base. In the income statement the
sale figure is assumed to be lo! and all figures are expressed as a percentage of sales.
0imilarly in the balance sheet the total of assets or liabilities is taken as 177 and all
the figures are expressed as percentages of this total.
1.1.11 Tren* Percen!a"es
Trend percentages are immensely helpful in making a comparative
study of the financial statements for several years. The method of calculating trend
percentages involves the calculation of percentage relationship that each item bears to
the same item in the base year.
1.1.1 Ty-es of Financial S!a!emen!
The term financial statements generally refer to t!o basic statements)
:
1. The income statement = .. The balance sheet. "usiness men also prepare 8.
& statement of retained earnings, and 9. & statement of changes in financial position,
in addition to the above t!o statements.
1.1.1.1 Income S!a!emen!
The income statement is generally considered to be the most useful of
all financial statements. It explains !hat has happened to a business as a result of
operations bet!een t!o balance sheet dates. For this purpose, it matches the revenues
and cost incurred in the process of earning revenues and sho!s the net profit earned
or loss suffered during a particular period.
1.1.1. 0alance S1ee!
It is a statement of financial position of a business at a specified
moment of time. It represents all assets o!ned by the business at a particular moment
of time and claims or equities of the o!ners and outsiders against those assets at that
time. It is in a !ay snapshot of the financial condition of the business at that time. The
important distinction bet!een an income statement and a balance sheet is that income
statement is for a period !hile balance sheet is on a particular date.
1.1.1.# S!a!emen! of Re!aine* Earnin"s
The term retained earnings means the accumulated excess of earning
over losses and dividends. The balance sho!n by the income statement is transferred
to the balance sheet through this statement, after making necessary appropriations. It
is thus a connecting link bet!een the income statement and the balance sheet. It is
fundamentally display of things that have caused the beginning of the period retained
earnings balance to be charged into the one sho!n in the end of the period balance
sheet.
1.1.1.4 S!a!emen! of C1an"es in Financial Posi!ion
>
>
The balance sheet sho!s the financial condition of the business at a particular
time !hile the income statement discloses the result of operations at a particular time
!hile the income statement discloses the result of operations of the business over a
period of time. ?o!ever for the better understanding of the affairs of the business it is
essential to identify the movement of !orking capital or cash in and out of the
business. This information is available in the statement of changes in financial
position of the business. The statement may emphasize any of follo!ing aspects
relating to changes in financial position of the business.
1. -hange in firm%s !orking capital.
.. -hange in firm%s cash position.
8. -hange in the firm%s total financial position.
1.1.1# Na!&re of Financial S!a!emen!s
&ccording to the &merican Institute of -ertified ,ublic &ccountancy Financial
0tatements reflect a combination of recorded in the financial are not depicted in the
financial statements, ho!ever material they might be, for example, fixed assets are
sho!n at cost irrespective of their market or replacement price since such price is not
recorded in the books.
1.1.1#.1 Acco&n!in" Con'en!ions
&ccounting conventions imply certain fundamental principles !hich have
been sanctified by long usage. For example, an account of the convention of
conservatism provision is made for expected losses but expected profits are ignored.
1.1.1#. Personal 5&*"men!s
,ersonal @udgments have also had an important bearing on the financial
statement. For example, the choice of selecting methods of depreciation lies on the
accountant. 0imilarly, the mode of amortization of fictitious assets also depends on
the personal @udgments of the accountant.
1.1.1#.# I"nore S&%s!ance
6
Financial statements in India are prepared and presented in the form
prescribed by la!. &s a result many substantial facts go unrecorded.
1.1.1#.4 O'er Generali3a!ion
& financial statement presents data in a generalized form and not as required
of a specific user, viz shareholders, employees, government, potential investors,
lenders, etc... ?ence they cannot meet the specific data requirements of the users.
They are only general purpose statements.
1.1.14 $imi!a!ions of Financial S!a!emen!
Financial statements are prepared !ith the ob@ect of presenting a periodical
revie! or report on the progress by the management and deal !ith the 1+ status of the
investments in the business and .+ results achieved during the period under the
revie!. ?o!ever these ob@ectives are sub@ect to certain limitations as given belo!
1.1.14.1 Financial S!a!emen!s are Generally In!erim Re-or!s
The profit sho!n by profit and loss account and financial position as depicted
by the balance sheet is not exact. The exact position can be kno!n only !hen the
business is closed do!n.
1.1.14. Acco&n!in" Conce-!s an* Con'en!ions
Finical statements are prepared on the basis of some accounting conceptions
and conventions. n account of this reasons the financial positions as disclosed by
these statements may not be realistic. For example, fixed assets in the balance sheet
are sho!n on the basis of going concern concept. This means that value placed on
fixed assets may not be the same as may be realized in their scale. n account of
conservation the income statement may not disclose true income of the business since
probable losses are considered !hile probable incomes are ignored.
A
A
1.1.14.# Infl&ence on Personal 5&*"men!
Bany items are left to the personal @udgment of the accountant. For example
the method of amortization of fixed assets, treatment of differed revenue expenditure
all depend on the personal @udgment of the accountant.
1.1.14.4 Disclose only 6one!ary Fac!s
Financial statement does not depict those facts !hich cannot be expressed in
the terms of money. For example, development of a term of loyal and efficient
!orkers enlightened management, the reputation and prestige of management !ith the
public are matters !hich are of considerable importance for the business, but they are
no! here depicted by the financial statements.
1. INTRODUCTION TO CO6PANY

1..1 HISTORY OF THE CO6PANY
The &maravathi -o;operative 0ugar Bills <td !as the first -o;operative 0ector sugar
mill in Tamilnadu. Cate of registration) 75;1.;15::. Cate of starting 18;1.;15::
<icense Dranted by the Dovernment of India .A;7:;15:>. This pro@ect !as taken up
for construction under the first five year plan. Installed capacity A77$1777 tons per
day. The Investment for the A77 tons capacity !as 1.: lakes !ith the permission of
state Dovt. the machineries are purchased from 3est Dermany originally site
measuring 17A.81 acres. It !as situated in 4rishnapuram, udumalpet *T4+,
-oimbatore *CT+.
1.. CO6PANY PROFI$E
#ame ) The &maravathi -o;operative sugar mills ltd
<ocation ) 4rishnapuram; >9.11
Edumalpet Taluk, -oimbatore Cistrict
,hone #o%s ) .:...1, .:...., .:...8, .:...9
5
Telegram ) 0ED&' Edumalpet
Telex ) 7A:1.7. &-0B I#
Fax ) 79.:. :..5:
Fear of commencement ) 15>7
Installed capacity ) .777 T-C
&rea of operation ) 1+ Gntrive Taluk of udumalpet -"G CT
.+ Gntrive Taluk of palladam -"G CT
8+ Gntrive Taluk of palani in Cindugal CT
9+ Charapuram Taluk in Tirupur Cistrict
0ource of !ater ) &maravathi 'iver
&verage &nnual 'ainfall ) 96: mm
&verage member of registration
-an Dro!ers$year ) 8777
&rea of o!n can farm) .6.9. acres
&rea of factory ) 87 acres
?ousing colony ) 97 acres
#earest 'ail!ay 0tation ) Baivadi 'oad 'ail!ay 0tation
#earest post office ) 4rishnapuram *In mill campus+
17
17
#earest Ba@or To!n ) Edumalpet
#earest Fire 0tation ) Edumalpet
1..# DI7ISIONA$ OFFICES
The factory !ich improve the economy and develops the skill of the
economic development !ich has seven divisional offices at different office area.
There are
H Bill site
H 4omaralingam
H 4aniyur
H Edumalpet
H ,allodam
H #eikkarappatti
H ,alani east and !est
1..4 6ANAGE6ENT
The factory is no! under the over all control of director of sugar
-hennai. Initially the members had formed a board of directors !ith president being
nominated by the Dovernment of Tamilnadu for the &dministration purpose general
manager !as appointed by the Dovernment
3ho took over the &dministration but from .5;7>;156. the Dovernment superseded
the board of directors and appointed special officers takes over the !hole
management affairs. ?e acts under the over all control of director of sugar -hennai.
&n &maravathi -o;operative sugar mill is registered under the
-o;operative societies all.
The ob@ective and the functions of the society are governed by
approved by la!s.
11
Gvery year statutory &udit is conducted by -o;operative
auditors and &udit certificate is issued.
Pas! Performance
The company is on its fast track of gro!th and the past performance details are
given belo!)
*&mount in lakhs+
De!ails8
Year
#1.2#.24 #1.2#.2( #1.2#.2+ #1.2#.2, #1.2#.2. #1.2#.2/
0ales 8:>>..8 998>.:> :>.1.:> ::A5.65 >9.7.8> >A97.9.
,rofit
before
tax
:.A> 85..9 87..58 19A.6. 81..87 8:78..1
0hare
-apital
.87.77 867.77 977.77 977.77 96:.77 96:.77
'eserves
=
surplus
:>6.11 :69.>9 6.7.15 6>6.9A 6:5.:A A>>.67
#et
3orth
656.11 599.>9 11.7.15 11>6.9A 18A5.98 1891.61
1.
1.
CHAPTER II
NEED9 O05ECTI7ES AND $I6ITATIONS OF THE STUDY
.1 NEED FOR THE STUDY
The need for the study is as follo!s)
1. The study aim at assessing profitability and solvency position of the company.
.. The liquidity and activity positions of the firm are analyzed using liquidity and
turnover ratios involving current liabilities.
8. The solvency position of the company is also analyzed using ratios.
18
. O05ECTI7ES OF THE STUDY
1. To make an analysis on the financial performance analysis of &maravathi
sugar mills ltd for : financial Fears extending from .779; .77: to .77A; .775.
.. To calculate profitability turnover = financial ratio to assess the financial
position of the firm.
8. To study the efficiency and liquidity position using ratios.
9. To study the trend of financial performance analysis of the company
:. To asses individual financial segments and put forth the strength and !eakness
of the financial elements of balance sheet through trend analysis.
19
19
.# $I6ITATIONS OF THE STUDY
1. The study is based on the data obtained from the annual reports of the concern
i.e. balance sheet.
.. The period under study has been only for : financial years i.e. .779 ( .77: to
.77A ( .775.
8. The study doesn%t take into account the other areas such as dividend policy,
capital budgeting etc.
1:
CHAPTER III
RESEARCH 6ETHODO$OGY
#.1 RESEARCH DESIGN
The collected data !ere presented in tables and these tables !ere
analyzed systematically. 'atio analysis, the vital financial tool !as used to study the
financial performance analysis of &maravathi sugar mills <td. & chart and various
diagrams are used to explain the analysis clearly. It is an undisputed truth that graphs
and diagrams render any complicated discussion and any intricate sub@ect, very simple
to any casual reader of the thesis.
-ommon size financial statement is a tool to assess, in !hich figures
reported are converted into percentages to some common base. Trend percentages are
also taken as a tool !hich is immensely helpful in making a comparative study of the
financial statement for several years. The method of calculating trend percentages
involves the calculation of percentage relationship that each item bears to the same
item in the base year.
#. DATA CO$$ECTION
The study is based on secondary source of data. 0econdary data have
been mainly obtained from annual reports, records and books of &maravathi sugar
mills <td.
The secondary data !ere also collected from audited financial statements periodicals
and other records maintained by &maravathi sugar mills <td.
#.# PERIOD OF STUDY
1>
1>
Cata of : financial years are used for the purpose of study. The : years
of study ranges from .779 ; .77: to .77A ( .775.
#.4 TOO$S
RATIO ANA$YSIS
,'FIT&"I<ITF '&TI
& class of financial metrics that are used to assess a businessIs ability
to generate earnings as compared to its expenses and other relevant costs
incurred during a specific period of time. For most of these ratios, having a
higher value relative to a competitorIs ratio or the same ratio from a previous
period is indicative that the company is doing !ell.
Re!&rn on e)&i!y J profit after tax
#et !orth
&#&<F0I0 F -BB# 0IKG I#-BG 0T&TGBG#T
Format for balance sheet and income statement *profit and loss
account+ in !hich each financial item is expressed also as a percentage of the
total amount *or a common base amount+ for easier comparison. For example,
total sales amount is used as a common base in an income statement and every
other item *cost of sales, gross profit, operating expenses, etc.+ is sho!n both
as a figure and as a percentage of total sales..
Working Capital = Current Assets- Current Liabilities
current Ratio = Current Assets
Current Liabilities
16
Cash Ratio = -ash Gquivalents L Barketable 0ecurities
-urrent <iabilities
&#&<F0I0 F -B,&'&TIMG "&<&#-G 0?GGT
ne of t!o or more financial statements prepared on different dates
that lend themselves to a comparative analysis of the financial condition of an
organization
Re!&rn on e)&i!y J profit after tax
#et !orth
T'G#C &#&<F0I0
The term N!ren* analysisN refers to the concept of collecting
information and attempting to spot a pattern, or trend, in the information. In
some fields of study, the term Ntrend analysis
Ca-i!al em-loyee : Ne! ;or!1 : Ne! sales : -rofi! %efore in!res! an* !a<
Profi!=%efore> ? Ta< : Profi!=af!er> ? Ta< : Di'i*en*
1A
1A
CHAPTER I7
ANA$YSIS AND INTERPRETATIONS
4.1 PROFITA0I$ITY RATIO
4.1.1 Gross Profi! 6ar"in Ra!io
Dross ,rofit 'atio J *Dross profit $ #et sales+ x 177
Table 9.1.1.1
Year Gross Profi! Ne! Sales Ra!io @
.779 ( .77: 1:,:.9,777 998,>::,67. 8.:7
.77: ; .77> 9.,A19,777 :>.,1:>,.75 6.>.
.77> ; .776 .>,A99,777 ::A,565,1:6 9.A7
.776 ; .77A 91,5>A,777 >9.,78>,1.A >.:9
.77A ; .775 9>,515,777 >A9,79.,5A: >.A>
Figure 9.1.1..
0
2
4
6
8
10
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
15
INTERPRETATION
The table reveals Dross ,rofit 'atio sho!ing slightly increasing trend, it !as
lo! in the period .779 ( .77: !ith 8.:7O and raised during the period .77: ( .77>
to 6.>.O then a sudden decrease in the next year to 9.A7O and from that it started
raising to >.A>O in the period .77A ( .775.
4.1. Ne! Profi! 6ar"in Ra!io

#et ,rofit 'atio J *#et ,rofit after Tax $ #et 0ales+ x 177
Table 9.1...1
Year
Ne! Profi! Af!er
Ta<
Ne! Sales Ra!io @
.779 ( .77: .,9A8,..> 998,>::,67. 7.:>
.77: ; .77> .6,658,9.5 :>.,1:>,.75 9.59
.77> ; .776 18,86.,896 ::A,565,1:6 ..85
.776 ; .77A .>,>.5,668 >9.,78>,1.A 9.1:
.77A ; .775 ..,8.1,59A >A9,79.,5A: 8..>
Figure 9.1....
INTERPRETATION
.7
.7
The ratio !as highest in the period .77: ( .77> and lo!est in the period .779;
.77:. It sho!s a fluctuating trend.
4.1.# O-era!in" Profi! 6ar"in Ra!io
perating ,rofit 'atio J *perating ,rofit $ #et 0ales+ x 177
Table 9.1.8.1
Year O-era!in" Profi! Ne! Sales Ra!io @
.779 ( .77: .9,5>8,.>9 998,>::,67. :.>8
.77: ; .77> 88,:1A,87> :>.,1:>,.75 :.5>
.77> ; .776 8:,.96,8:5 ::A,565,1:6 >.81
.776 ; .77A >7,995,:97 >9.,78>,1.A 5.9.
.77A ; .775 >:,.A.,A77 >A9,79.,5A: 5.:9
Figure 9.1.8..
INTERPRETATION
?igher operating profit ratio sho!s better operating efficiency. The ratio !as
high in period .77A ( .775. Therefore the operating efficiency is better in periods
.776 ( .77A = .77A ( .775.
.1
4.1.4 Re!&rn on Ca-i!al Em-loye*
'eturn on -apital Gmployed J *perating ,rofit $ -apital Gmployed+ x 177

Table 9.1.9.1
Year O-era!in" Profi! Ca-i!al Em-loye* Ra!io @
.779 ( .77: .9,5>8,.>9 .:1,A>A,>19 5.51
.77: ; .77> 88,:1A,87> 8.:,865,A>7 17.87
.77> ; .776 8:,.96,8:5 .5:,>6A,.>9 11.5.
.776 ; .77A >7,995,:97 .57,816,A:. .7.A.
.77A ; .775 >:,.A.,A77 .55,7.A,517 .1.A8
Figure 9.1.9..
INTERPRETATION
..
..
The return on capital employed !as lo! in the period .779 ( .77: and highest
in the period .77A ( .775. It sho!s the increasing trend so it is good for the company.
4.1.( Re!&rn on E)&i!y
'eturn on GquityJ *Gquity Garnings $ #et 3orth+ x 177
Table 9.1.:.1
Year E)&i!y Earnin"s Ne! Aor!1 Ra!io @
.779 ( .77: 8,5.9,187 59,9>9,.>9 9.1:
.77: ; .77> 87,.58,9.5 11.,715,87> .6.79
.77> ; .776 19,A6.,896 11>,69A,8:5 1..69
.776 ; .77A 81,..5,668 18A,598,8:: ...9A
.77A ; .775 8:,78.,17: 189,167,:7: .>.11
Figure 9.1.:..
INTERPRETATION
The ratio !as lo! in the period .779 ( .77: and high in the period .77: (
.77> and .77A ( .775. Though there !as a decline in the period .77> ( .776 to
1..69O it sho!s the increasing trend in the succeeding periods.
.8
4.1.+ Earnin" Per S1are
Garning ,er 0hare J *#et ,rofit ( ,reference Cividend $ #o. of equity 0hares+
Table 9.1.>.1
Year Profi! Af!er Ta<
No. of e)&i!y
S1ares
Ra!io =Rs.>
.779 ( .77: 8,5.9,187 86,777,777 7.11
.77: ; .77> 87,.58,9.5 97,777,777 7.6>
.77> ; .776 19,A6.,896 97,777,777 7.86
.776 ; .77A 81,..5,668 96,:77,777 7.>>
.77A ; .775 8:,78.,17: 96,:77,777 7.69
Figure 9.1.>..
INTERPRETATION
The Garning per 0hare helps in determining the market price of the Gquity
shares of the company. Initially the G,0 !as lo! *'s. 7.11+ in the period .779 ( .77:
and high in the period .77: ( .77> = .77A ( .775. There !as a decline in the period
.77> ( .776 to 's. 7.86 and started increasing in the succeeding periods.
4. TURN O7ER RATIO
.9
.9
4..1 De%!orBs !&rno'er Ra!io

Cebtor%s turnover 'atio J *Total 0ales $ Cebtors+
Table 9...1.1
Year To!al Sales De%!ors Ra!io =in !imes>
.779 ( .77: 998,>::,67. 58,.18,7A7 9.6>
.77: ; .77> :>.,1:>,.75 1.8,7:8,85A 9.:6
.77> ; .776 ::A,565,1:6 1.>,>15,781 9.91
.776 ; .77A >9.,78>,1.A 111,579,A>7 :.69
.77A ; .775 >A9,79.,5A: 1.9,A59,77> :.9A
Figure 9...1..
INTERPRETATION
The Cebtors turnover ratio sho!s a fluctuating trend. The ratio !as lo! in the
period .77> ( .776 and high in the year .776 ( .77A. Though it is fluctuating it sho!
a consistent position.
4.. De%! Collec!ion Perio*
.:
Cebt -ollection ,eriod J P *Bonths$ Cays in a Fear+ $ Cebtors TurnoverQ
Table 9.....1
Year Days in a Year
De%!ors T&rno'er
=in !imes>
De%! Collec!ion
Perio* =in *ays>
.779 ( .77: 8>7 9.6> 6:.>8
.77: ; .77> 8>7 9.:6 6A.66
.77> ; .776 8>7 9.91 A1.>8
.776 ; .77A 8>7 :.69 >..6.
.77A ; .775 8>7 :.9A >:.>5
Figure 9......
INTERPRETATION
& shorter collection period implies prompt payment by debtors. The collection
period !as high in the period .77> ( .776 *A1.>8 days+ and lo! in the period .776 (
.77A *>..6. days+.
4..# Fi<e* Asse! T&rno'er Ra!io
.>
.>
Fixed &sset Turnover 'atio J *#et 0ales $ Fixed &ssets+
Table 9...8.1
Year Ne! Sales Fi<e* Asse!s Ra!io
.779 ( .77: 998,>::,67. 196,667,>59 8.77
.77: ; .77> :>.,1:>,.75 185,7:.,598 9.79
.77> ; .776 ::A,565,1:6 18.,:.8,8:. 9...
.776 ; .77A >9.,78>,1.A 1.A,661,16: 9.55
.77A ; .775 >A9,79.,5A: 199,5A5,>7. 9.6.
Figure 9...8..
INTERPRETATION
The Fixed &sset Turnover ratio sho!s an increasing trend. The ratio !as lo!
initially and raised in succeeding periods to 9.55 in the period .776 ( .77A and it
slightly decreased to 9.6. in the period .77A ( .775.
4..4 To!al Asse!s T&rno'er Ra!io
.6

Total &ssets Turnover 'atio J* #et 0ales $ Total &ssets+
Table 9...9.1
Year Ne! Sales To!al Asse!s Ra!io
.779 ( .77: 998,>::,67. .:1,A>A,>19 1.6>
.77: ; .77> :>.,1:>,.75 8.:,865,A>7 1.68
.77> ; .776 ::A,565,1:6 .5:,>6A,.>9 1.A5
.776 ; .77A >9.,78>,1.A .57,816,A:. ...1
.77A ; .775 >A9,79.,5A: .55,7.A,517 ...5
Figure 9...9..
INTERPRETATION
The ratio !as lo! in the period .779 ( .77: and high in the period .77A (
.775. It sho!s an increasing trend.
4..( In'en!ory T&rno'er Ra!io
.A
.A
Inventory Turnover 'atio J *-ost of Doods 0old $ &verage Inventory+
Table 9...:.1
Year
Cos! of Goo*s
Sol*
A'era"e In'en!ory In !imes
.779 ( .77: .97,.9>,>61 :A,.57,>8: 9.1.
.77: ; .77> 87:,51A,8:5 66,A11,>85 8.58
.77> ; .776 87:,>75,>:: AA,689,A>8 8.99
.776 ; .77A 8:8,51.,5>7 57,557,:A: 8.A5
.77A ; .775 8>.,985,887 171,>85,5.9 8.:6
Figure 9...:..
INTERPRETATION
& high inventory turnover ratio may be caused by a lo! level of inventory
!hich may result in frequent stock outs and loss of sales. The ratio !as high in the
period .779 ( .77: and lo! in the period .77> ( .776 = .77A ( .775. It sho!s a
decreasing trend.
4..+ S!ocC 7eloci!y
.5
0tock Melocity J *Cays in a Fear $ Inventory Turnover 'atio+
Table 9...>.1
Year Days in a Year
In'en!ory
T&rno'er Ra!io
=in !imes>
In *ays
.779 ( .77: 8>7 9.1. A6.8A
.77: ; .77> 8>7 8.58 51.>7
.77> ; .776 8>7 8.99 179.>:
.776 ; .77A 8>7 8.A5 5..:9
.77A ; .775 8>7 8.:6 177.A9
Figure 9...>..
INTERPRETATION
The inventory turnover ratio and the velocity period of the company remained
stable !hich is 8.99 times and 179.>: days. In .779 ( .77: the velocity period !as
A6.8A. Introduction of proper stock control system like periodic stock taking !ould
bring do!n the velocity period.
4.# $IDUIDITY RATIO
4.#.1 C&rren! Ra!io
87
87
-urrent 'atio J *-urrent &ssets $ -urrent liabilities+
Table 9.8.1.1
Year C&rren! Asse!s C&rren! lia%ili!ies Ra!io
.779 ( .77: 15:,AA8,579 17.,>>7,55. 1.51
.77: ; .77> 877,:6.,.88 188,517,AAA ...9
.77> ; .776 .>1,7>7,767 11:,85>,A1. ...>
.776 ; .77A .A7,6:7,671 18>,777,688 ..7>
.77A ; .775 .51,.16,:9> 1>8,.A1,81: 1.6A
Figure 9.8.1..
INTERPRETATION
This ratio indicates the extent to !hich short term creditors are safe in terms of
liquidity of the current assets. Thus, higher the value of the current ratio, more liquid
the firm is and more ability it has to pay the bills. ?o!ever a current ratio of .)1 is
considered generally satisfactory. &s per the study the current ratio varies from 1.6A to
...>. The current ratio !as satisfactory during .77: ( .77>, .77> ( .776 and .776 (
.77A.
4.#. D&icC Ra!io
81
Ruick 'atio J *Ruick &ssets $ -urrent liabilities+
Ruick &ssets J -urrent &ssets ; Inventory
Table 9.8...1
Year D&icC Asse!s C&rren! lia%ili!ies Ra!io
.779 ( .77: 18:,.>5,51A 17.,>>7,55. 1.8.
.77: ; .77> .7:,:>.,589 188,518,AAA 1.:9
.77> ; .776 16A,:55,>9. 11:,85>,A1. 1.::
.776 ; .77A 1A1,..5,5:5 18>,777,688 1.88
.77A ; .775 1A6,9:A,991 1>8,.A1,81: 1.1:
Figure 9.8....
INTERPRETATION
The quick ratio of 1)1 is considered satisfactory. Though the quick ratio during
the period of study are above the satisfactory level, the period .77> ( .776 having the
ratio 1.:: times !as good to the company and it started decreasing in the succeeding
years.
4.4 $E7ERAGE RATIO
8.
8.
4.4.1 De%! E)&i!y Ra!io
Cebt Gquity 'atio J *Total Cebt $ 0hare ?olders Fund+
Table 9.9.1.1
Year To!al De%!
S1are Hol*ers
F&n*
Ra!io
.779 ( .77: 58,.18,7A7 59,9>9,.>9 7.55
.77: ; .77> 1.8,7:8,85A 11.,715,87> 1.17
.77> ; .776 1.>,>15,781 11>,69A,8:5 1.7A
.776 ; .77A 111,579,A7> 18A,598,8:: 7.A1
.77A ; .775 1.9,A59,77> 189,167,:7: 7.58
Figure 9.9.1..
INTERPRETATION
The ratio indicates the proportion of o!ners% stake in the business. Gxcessive
liabilities tend to cause insolvency. The ratio !as high during the period .77: ( .77>
and lo! during the period .776 ( .77A. The general norm for this ratio is .)1.
4.4. De%! ? Asse!s Ra!io
88
Cebt ( &ssets 'atio J *Total Cebt $ Total &ssets+
Table 9.9...1
Year To!al De%! To!al Asse!s Ra!io
.779 ( .77: 1:6,979,8:7 .:1,A>A,>19 7.>.
.77: ; .77> .18,8>7,::9 8.:,865,A>7 7.>>
.77> ; .776 16A,5.5,57: .5:,>6A,.>9 7.>1
.776 ; .77A 1:1,869,956 .57,816,A:. 7.:.
.77A ; .775 19:,6>.,56A .55,7.A,517 7.95
Figure 9.9....
INTERPRETATION
The ratio !as high during the period .77: ( .77> and lo! during the period
.77A ( .775 It sho!s a decreasing trend.
4.( ANA$YSIS OF CO66ON SIEE 0A$ANCE SHEET
4.(.1 Common Si3e 0alance S1ee! =2249 22(>
89
89
Table 9.:.1.1
Par!ic&lars #1.2#.224 Percen!a"e #1.2#.22( Percen!a"e
So&rces of F&n*s
0hare -apital .8,777,777 5.:8 86,777,777 19.>5
'eserves = 0urplus :>,617,>8A .8.:7 :6,9>9,.>9 ...A.
$oan F&n*s
0ecured <oans 1.A,867,89. :8..7 118,661,8:7 9:.16
Ensecured <oans 88,.71,777 18.6> 98,>88,777 16.8.
To!al 419.19/.2 122.22 (19.+.9+14 122.22
A--lica!ion of F&n*s
Fixed &ssets 165,A6.,A.: 69.:: 196,667,>59 :A.>6
Investments 1,17.,99. 7.9> >5.,6A> 7..A
C&rren! Asse!s9
$oans F A*'ances
Inventories ::,5>6,.A9 .8..7 >7,>18,5A> .9.76
0undry Cebtors >5,595,58> .A.55 58,.18,7A7 86.71
-ash = "ank "alances A,:55,5:. 8.:> 1A,::9,.78 6.86
Ceposits, <oans=
&dvances
8>,:.8,::6 1:.19 .8,:7.,>8: 5.88
To!al 1,192429,/ ,2../ 1/(9..#9/24 ,,.,,
<ess) -urrent
<iabilities =
,rovisions
-urrent <iabilities 116,11.,1.. 9A.:9 55,5>8,198 85.>5
,rovisions 8,.96,665 1.8: .,>56,665 1.76
Ne! C&rren! Asse!s (29+.29.. 1.22 /#99/. #,.21
Biscellaneous
Gxpenditure
5,>.:,AA: 8.55 17,1A.,1:. 9.79
To!al 419.19/.2 122.22 (19.+.9+14 122.22
4.(. Common Si3e 0alance S1ee! =22(9 22+>
Table 9.:...1
Par!ic&lars #1.2#.22( Percen!a"e #1.2#.22+ Percen!a"e
So&rces of F&n*s
0hare holders Fund
0hare -apital 86,777,777 19.>5 97,777,777 1...5
'eserves = 0urplus :6,9>9,.>9 ...A. 6.,715,87> ...18
$oan F&n*s
8:
0ecured <oans 118,661,8:7 9:.16 1A:,:A.,.69 :6.79
Ensecured <oans 98,>88,777 16.8. .6,66A,.A7 A.:9
To!al (19.+.9+14 122.22 #(9#,/9.+2 122.22
A--lica!ion of F&n*s
Fixed &ssets 196,667,>59 :A.>6 185,7:.,598 9..69
Investments >5.,6A> 7..A >A:,... 7..1
C&rren! Asse!s9 $oans
F A*'ances
Inventories >7,>18,5A> .9.76 5:,775,.55 .5..7
0undry Cebtors 58,.18,7A7 86.71 1.8,7:8,85A 86.A.
-ash = "ank "alances 1A,::9,.78 6.86 :,6.5,59. 1.6>
Ceposits, <oans=
&dvances
.8,:7.,>8: 5.88 6>,665,:59 .8.>7
To!al 1/(9..#9/24 ,,.,, #229(,9## /.#.
<ess) -urrent <iabilities
= ,rovisions
-urrent <iabilities 55,5>8,198 85.>5 1.A,8>5,1>5 85.9:
,rovisions .,>56,665 1.76 :,:91,615 1.67
Ne! C&rren! Asse!s /#99/. #,.21 1++9++19#4( (1.
Biscellaneous
Gxpenditure
17,1A.,1:. 9.79 1A,5A7,8:7 :.A8
To!al (19.+.9+14 122.22 #(9#,/9.+2 122.22
4.(.# Common Si3e 0alance S1ee! =22+9 22,>
Table 9.:.8.1
Par!ic&lars #1.2#.22+ Percen!a"e #1.2#.22, Percen!a"e
So&rces of F&n*s
0hare holders Fund
0hare -apital 97,777,777 1...5 97,777,777 18.:8
'eserves = 0urplus 6.,715,87> ...18 6>,69A,8:5 .:.5>
$oan F&n*s
0ecured <oans 1A:,:A.,.69 :6.79 1:7,161,6.: :7.65
Ensecured <oans .6,66A,.A7 A.:9 .A,6:A,1A7 5.68
To!al #(9#,/9.+2 122.22 /(9+,.9+4 122.22
A--lica!ion of F&n*s
8>
8>
Fixed &ssets 185,7:.,598 9..69 18.,:.8,8:. 99.A.
Investments >A:,... 7..1 >A9,... 7..8
C&rren! Asse!s9 $oans
F A*'ances
Inventories 5:,775,.55 .5..7 A.,9>7,9.A .6.A5
0undry Cebtors 1.8,7:8,85A 86.A. 1.>,>15,781 9..A.
-ash = "ank "alances :,6.5,59. 1.6> >,:A5,A1> ...8
Ceposits, <oans=
&dvances
6>,665,:59 .8.>7 9:,857,65: 1:.8:
To!al #229(,9## /.#. +192+292,2 .../
<ess) -urrent <iabilities
= ,rovisions
-urrent <iabilities 1.A,8>5,1>5 85.9: 17A,6:1,A18 8>.6A
,rovisions :,:91,615 1.67 >,>99,555 ...:
Ne! C&rren! Asse!s 1++9++19#4( (1. 14(9++#9(. 4/.+
Biscellaneous
Gxpenditure
1A,5A7,8:7 :.A8 1>,A76,98. :.>A
To!al #(9#,/9.+2 122.22 /(9+,.9+4 122.22
4.(.4 Common Si3e 0alance S1ee! =22,9 22.>
Table 9.:.9.1
Par!ic&lars #1.2#.22, Percen!a"e #1.2#.22. Percen!a"e
So&rces of F&n*s
0hare holders Fund
0hare -apital 97,777,777 18.:8 96,:77,777 1>.8>
'eserves = 0urplus 6>,69A,8:5 .:.5> 6:,5:A,7A: .>.1>
Ceferred Tax*net+ ;;;;;;;;;;;; ;;;;;;;;;; 1:,9A:,.67 :.88
$oan F&n*s
0ecured <oans 1:7,161,6.: :7.65 1.A,::.,:.7 99..A
Ensecured <oans .A,6:A,1A7 5.68 ..,A.1,566 6.A>
To!al /(9+,.9+4 122.22 /29#1,9.( 122.22
A--lica!ion of F&n*s
Fixed &ssets 18.,:.8,8:. 99.A. 1.A,661,16: 99.8>
Investments >A9,... 7..8 >A8,6.. 7..9
C&rren! Asse!s9 $oans
F A*'ances
Inventories A.,9>7,9.A .6.A5 55,:.7,69. 89..A
0undry Cebtors 1.>,>15,781 9..A. 111,579,A>7 8A.::
86
-ash = "ank "alances >,:A5,A1> ...8 5,A.1,111 8.8A
Ceposits, <oans=
&dvances
9:,857,65: 1:.8: :5,:78,5AA .7.:7
To!al +192+292,2 .../ .29,(29,21 /+.,2
<ess) -urrent <iabilities
= ,rovisions
-urrent <iabilities 17A,6:1,A18 8>.6A 119,A5A,A75 85.:A
,rovisions >,>99,555 ...: .1,171,5.9 6..6
Ne! C&rren! Asse!s 14(9++#9(. 4/.+ 1449,4/9/+. 4/..+
Biscellaneous
Gxpenditure
1>,A76,98. :.>A 1>,11.,5A6 :.::
To!al /(9+,.9+4 122.22 /29#1,9.( 122.22
4.(.( Common Si3e 0alance S1ee! =22.9 22/>
Table 9.:.:.1
Par!ic&lars #1.2#.22. Percen!a"e #1.2#.22/ Percen!a"e
So&rces of F&n*s
0hare -apital 96,:77,777 1>.8> 96,:77,777 1:.AA
'eserves = 0urplus 6:,5:A,7A: .>.1> A>,>67,:7: .A.5A
Ceferred Tax*net+ 1:,9A:,.67 :.88 15,75:,9.6 >.85
0ecured <oans 1.A,::.,:.7 99..A 1.8,67.,>:5 91.86
Ensecured <oans ..,A.1,566 6.A> ..,7>7,815 6.8A
To!al /29#1,9.( 122.22 //92.9/12 122.22
A--lica!ion of F&n*
Fixed &ssets 1.A,661,16: 99.8> 199,5A5,>7. 9A.95
Investments >A8,6.. 7..9 >5A,6.. 7..8
C&rren! Asse!s
Inventories 55,:.7,69. 89..A 178,6:5,17: 89.67
0undry Cebtors 111,579,A>7 8A.:: 1.9,A59,77> 91.66
-ash = "ank 5,A.1,111 8.8A 18,766,9:A 9.86
Cepo., <oans = &dva. :5,:78,5AA .7.:7 95,9A>,566 1>.::
To!al .29,(29,21 /+.,2 /191,9(4+ /,.#/
-urrent <iabilities 119,A5A,A75 85.:A 18:,9>:,577 9:.87
,rovisions .1,171,5.9 6..6 .6,A1:,91: 5.87
Ne! C&rren! Asse!s 1449,4/9/+. 4/..+ 1,9/#+9#1 4.,.
Bisc. ( Gxpenditure 1>,11.,5A6 :.:: .:,979,8:: A.:7
To!al /29#1,9.( 122.22 //92.9/12 122.22
8A
8A
INTERPRETATION
Taking total source of funds as 177 reserves and surplus, both secured and
unsecured loans sho!s an increasing trend and slight decrease in the period .77A (
.775. Taking total application of funds as 177 the fixed assets sho!s a fluctuating
trend varying from :A.>6 during the period .779 ( .77: to 9..69 during the period
.77: ( .77>. the total current assets sho!s an increasing trend during period of the
study, it !as lo! 66.66 during the period .779 ( .77: and high 56.85 during the
period .77A ( .775, though there !as a slight decrease during the period .77> (
.776. The current liabilities sho!s an fluctuating trend, it !as high :9.> during the
period .77A ( .775 and lo! 85.7: during the period .77> ( .776. n netting the
current assets and current liabilities, net current assets sho!s a fluctuating trend, it
!as lo! 86.71 during the period .779 ( .77: and high :1... during the period .77: (
.77>.
85
4.+ ANA$YSIS OF CO66ON SIEE INCO6E STATE6ENT
4.+.1 Common Si3e Income S!a!emen! =2249 22(>
Table 9.>.1.1
Par!ic&lars #1.2#.224 Percen!a"e #1.2#.22( Percen!a"e
Income
0ales 8:>,>.8,76. 5A.11
998,>::,67
.
55.67
ther Income .,:.6,5:9 7.67 .,>66,A55 7.>7
Increase$ Cecrease in 0tock of
Finished Doods = 0tock in
Trade
9,886,765 1.15 ;1,89.,:61 ;7.87
To!al Income #+#94..912( 122.22
4449//192#
2
122.22
E<-en*i!&re
'a! Baterials -onsumed 1A6,8>:,A8: :1.::
.97,.9>,>6
1
:8.55
0tores = -onsumables .,18A,79. 7.:5 .,198,16> 7.9A
,o!er = Fuel 8,>88,>5> 1.77 :,88A,171 1..7
Trading Doods -onsumed >,76>,:7: 1.>6 5,>8A,7>8 ..16
Gmployee -ost 8.,155,76> A.A> 8>,566,9:1 A.81
&dministrative Gxpenses :>,A:8,:7: 1:.>9 >8,>A8,:A: 19.81
Interest, Finance = "ank
-harges
1A,::5,:71 :.11 .:,6>9,9>. :.65
0elling = Cistribution
Gxpenses
8A,A95,869 17.>5 8>,9A1,6A1 A..7
ther Gxpenses 1,6A9,.1> 7.95 :,.:9,:A1 1.1A
'epair = Baintenance 9,6:9,686 1.81 8,585,7>9 7.A5
Cepreciation 17,68>,::9 ..5: 11,:55,5>: ..>1
To!al E<-en*i!&re #+9/(19241 //..(
44192++9/2
2
//.1
97
97
Ne! Profi! for !1e Year (#,92+4 7.1: #9/491#2 7.AA
To!al #+#94..912( 122.22
4449//192#
2
122.22
4.+. Common Si3e Income S!a!emen! =22(9 22+>
Table 9.>...1
Par!ic&lars #1.2#.22( Percen!a"e #1.2#.22+ Percen!a"e
Income
0ales 998,>::,67. 55.67 :>.,1:>,.75 5>.6>
ther Income .,>66,A55 7.>7 .,159,517 7.8A
Increase$ Cecrease in
0tock of Finished
Doods = 0tock in
Trade
;1,89.,:61 ;7.87 1>,>.9,91: ..A>
To!al Income 4449//192#2 122.22 (.29/,(9(#4 122.22
E<-en*i!&re
'a! Baterials
-onsumed
.97,.9>,>61 :8.55 87:,51A,8:5 :..>>
0tores = -onsumables .,198,16> 7.9A .,555,51: 7.:.
,o!er = Fuel :,88A,171 1..7 >,57>,797 1.15
Trading Doods
-onsumed
5,>8A,7>8 ..16 685,.18 7.18
Gmployee -ost 8>,566,9:1 A.81 98,16>,>A: 6.98
Gxcise Cuty 7.77 6>,7::,:.: 18.75
&dministrative
Gxpenses
>8,>A8,:A: 19.81 1:,779,89A ..:A
Interest, Finance =
"ank -harges
.:,6>9,9>. :.65 .>,.51,:.6 9.:8
0elling = Cistribution
Gxpenses
8>,9A1,6A1 A..7 :8,816,>55 5.1A
ther Gxpenses :,.:9,:A1 1.1A .,6>8,99> 7.9A
'epair = Baintenance 8,585,7>9 7.A5 9,5A6,A>6 7.A>
Cepreciation 11,:55,5>: ..>1 1.,:.1,9A1 ..1>
To!al E<-en*i!&re 44192++9/22 //.1 ((29+.912( /4.,/
Ne! Profi! for !1e Year #9/491#2 7.AA #29/#94/ :..1
To!al 4449//192#2 122.22 (.29/,(9(#4 122.22
91
4.+.# Common Si3e Income S!a!emen! =22+9 22,>
Table 9.>.8.1
Par!ic&lars #1.2#.22+ Percen!a"e #1.2#.22, Percen!a"e
Income
0ales :>.,1:>,.75 5>.6> ::A,565,1:6 177.1.
ther Income .,159,517 7.8A 1,6>>,7.> 7.8.
Increase$ Cecrease in
0tock of Finished
Doods = 0tock in
Trade
1>,>.9,91: ..A> ;.,9..,6.5 ;7.98
To!al Income (.29/,(9(#4 122.22 ((.9#94(4 122.22
E<-en*i!&re
'a! Baterials
-onsumed
87:,51A,8:5 :..>> 87:,>75,>:: :9.69
0tores = -onsumables .,555,51: 7.:. .,A66,668 7.:.
,o!er = Fuel >,57>,797 1.15 :,667,557 1.78
Trading Doods
-onsumed
685,.18 7.18 16.,91. 7.78
Gmployee -ost 98,16>,>A: 6.98 9>,>>6,97. A.8>
Gxcise Cuty 6>,7::,:.: 18.75 67,165,961 1..:6
&dministrative
Gxpenses
1:,779,89A ..:A 19,:76,89> ..>7
Interest, Finance =
"ank -harges
.>,.51,:.6 9.:8 .:,.9:,118 9.:.
0elling = Cistribution
Gxpenses
:8,816,>55 5.1A :1,958,658 5...
ther Gxpenses .,6>8,99> 7.9A 9,566,6A. 7.A5
'epair = Baintenance 9,5A6,A>6 7.A> 8,56>,A>6 7.61
Cepreciation 1.,:.1,9A1 ..1> 11,561,:78 ..19
To!al E<-en*i!&re ((29+.912( /4.,/ (4#94(2912, /,.#4
Ne! Profi! for !1e Year #29/#94/ :..1 149.,9#4, ..>>
To!al (.29/,(9(#4 122.22 ((.9#94(4 122.22
4.+.4 Common Si3e Income S!a!emen! =22,9 22.>
Table 9.>.9.1
Par!ic&lars #1.2#.22, Percen!a"e #1.2#.22. Percen!a"e
Income
0ales ::A,565,1:6 177.1. :>A,567,5.9 56.9>
ther Income 1,6>>,7.> 7.8. .,AAA,965 7.95
Increase$ Cecrease in
0tock of Finished Doods
= 0tock in Trade
;.,9..,6.5 ;7.98 11,5>.,86> ..7:
9.
9.
To!al Income ((.9#94(4 122.22 (.#9.19,,/ 122.22
E<-en*i!&re
'a! Baterials
-onsumed
87:,>75,>:: :9.69 8:8,51.,5>7 >7.>.
0tores = -onsumables .,A66,668 7.:. 9,871,55A 7.69
,o!er = Fuel :,667,557 1.78 >,.>A,68> 1.76
Trading Doods
-onsumed
16.,91. 7.78 5:,57: 7.7.
Gmployee -ost 9>,>>6,97. A.8> :1,85.,85: A.A7
Gxcise Cuty 67,165,961 1..:6 :,7::,9>5 7.A6
&dministrative
Gxpenses
19,:76,89> ..>7 16,817,6>6 ..56
Interest, Finance =
"ank -harges
.:,.9:,118 9.:. .8,>A1,666 9.7>
0elling = Cistribution
Gxpenses
:1,958,658 5... >>,819,91. 11.8>
ther Gxpenses 9,566,6A. 7.A5 5,879,A96 1.:5
'epair = Baintenance 8,56>,A>6 7.61 9,.19,A77 7.6.
Cepreciation 11,561,:78 ..19 17,686,597 1.A9
To!al E<-en*i!&re (4#94(2912, /,.#4 ((9(/922+ /4.+(
Ne! Profi! for !1e Year 149.,9#4, ..>> #19/9,,# :.8:
To!al ((.9#94(4 122.22 (.#9.19,,/ 122.22
4.+.( Common Si3e Income S!a!emen! =22.9 22/>
Table 9.>.:.1
Par!ic&lars #1.2#.22. Percen!a"e #1.2#.22/ Percen!a"e
Income
0ales :>A,567,5.9 56.9> >79,5..,7>8 177.65
ther Income .,AAA,965 7.95 8,75:,.9> 7.:.
Inc. $ Cec. in 0tock of
FD = 0tock in Trade
11,5>.,86> ..7: ;6,A86,>8> ;1.81
To!al Income (.#9.19,,/ 122.22 +2291,/9+,# 122.22
E<-en*i!&re
'a! Baterials
-onsumed
8:8,51.,5>7 >7.>. 8>.,985,887 >7.85
0tores = -onsumables 9,871,55A 7.69 8,A5A,55. 7.>:
,o!er = Fuel >,.>A,68> 1.76 >,799,189 1.71
Trading Doods -onsu. 5:,57: 7.7. :,>7:,71. 7.58
98
Gmployee -ost :1,85.,85: A.A7 ::,8:6,>71 5...
Gxcise Cuty :,7::,9>5 7.A6 ;;;;;;;;;;;;;; ;;;;;;
&dmi. Gxpenses 16,817,6>6 ..56 .7,A>6,956 8.9A
Int.,= "ank -harges .8,>A1,666 9.7> 1.,>.5,966 ..17
0elling = Cist. Gxp. >>,819,91. 11.8> 6.,5:5,:65 1..1>
ther Gxpenses 5,879,A96 1.:5 5,188,7.6 1.:.
'epair = Baintenance 9,.19,A77 7.6. 9,8.:,5:: 7.6.
Cepreciation 17,686,597 1.A9 11,AA>,5>9 1.5A
To!al E<-en*i!&re ((9(/922+ /4.+( (+(914,9(+. /4.1+
Ne! Profi! for !1e Year #19/9,,# :.8: #(92#912( :.A9
To!al (.#9.19,,/ 122.22 +2291,/9+,# 122.22
INTERPRETATION
&ssumed total income as 177 sales figure sho!s a fluctuating trend it !as lo!
5>.6> during the period .77: ( .77> and high 177.65 during the period .77A ;.775.
The total Gxpenditure !as high 55.A: during the period .779 ( .77: and lo! 59.1>
during the period .77A ( .775, it sho!s that the company has started reducing the
expenses. The net profit !as lo! 7.1: during the period .779 ;.77: and high :.A9
during the period .77A ;.775S it sho!s that the net profit has an increasing trend
during the period of study.
99
99
4., ANA$YSIS OF CO6PARATI7E 0A$ANCE SHEET
4.,.1 Com-ara!i'e 0lance S1ee! =2249 22(>
Table 9.6.1.1
Par!ic&lars 224 22( Inc. 8 Dec.
Inc. 8 Dec.
=@>
Inventories ::,5>6,.A9 >7,>18,5A> 9,>9>,67. A.87
0undry Cebtors >5,595,58> 58,.18,7A7 .8,.>8,199 88..>
-ash = "ank A,:55,5:. 1A,::9,.78 5,5:9,.:1 11:.6:
Cep. <oans= &dv. 8>,:.8,::6 .8,:7.,>8: ;18,7.7,5.. ;8:.>:
To!al C.A. 1,192429,/ 1/(9..#9/24 49.4#91,( 14.(
Fixed &ssets 165,A6.,A.: 196,667,>59 ;8.,17.,181 ;16.A:
Investments 1,17.,99. >5.,6A> ;975,>:> ;86.1>
To!al Asse!s #(921(9//+ #449#4,9#.4 G,9++.9+1 G.1.
-urrent <iabilities 116,11.,1.. 55,5>8,198 ;16,19A,565 ;19.>9
,rovisions 8,.96,665 .,>56,665 ;::7,777 ;1>.58
To!al C.$. 129#(/9/21 129++29/ G1,9+/.9/,/ G14.,1
Bis.; Gxpenditure 5,>.:,AA: 17,1A.,1:. ::>,.>6 :.6A
0hare -apital .8,777,777 86,777,777 19,777,777 >7.A6
'eserves = 0urpl. :>,617,>8A :6,9>9,.>9 6:8,>.> 1.88
To!al Reser'es F
S&r-l&s
,/9,129+#. /494+49+4 149,(#9++ 1..(1
0ecured <oans 1.A,867,89. 118,661,8:7 ;19,:5A,55. ;11.86
Ensecured <oans 88,.71,777 98,>88,777 17,98.,777 81.9.
To!al $oan 1+19(,19#4 1(,94249#(2 G491++9// G.(.
To!al $ia%ili!ies F
Ca-i!al
#,19+,9,++ #+49,119+.. G+9((+92,. G1.,,
9:
INTERPRETATION
n comparing the balance sheet of company for the year ending .779,.77:.
-urrent assets have been increased by 19.:. O, the total &ssets have been decreased
by ..1A O. The current liabilities have been decreased by 19.61 OS total reserves and
surplus have been raised by1A.:1 O. The total liabilities and capital have been
decreased by 1.66O.
9>
9>
4.,. Com-ara!i'e 0alance S1ee! =22(9 22+>
Table 9.6...1
Par!ic&lars 22( 22+ Inc. 8 Dec. Inc 8 Dec =@>
Inventories >7,>18,5A> 5:,775,.55 89,85:,818 :>.69
0undry Cebtors 58,.18,7A7 1.8,7:8,85A .5,A97,81A 8..71
-ash = "ank 1A,::9,.78 :,6.5,59. ;1.,A.9,.>1 ;>5.1.
Cep. <oans= &dv. .8,:7.,>8: 6>,665,:59 :8,.6>,5:5 ..>.>5
To!al C.A. 1/(9..#9/24 #229(,9## 1249+..9#/ (#.44
Fixed &ssets 196,667,>59 185,7:.,598 ;A,616,6:1 ;:.57
Investments >5.,6A> >A:,... ;6,:>9 ;1.75
To!al Asse!s #449#4,9#.4 4429#129#/. /(9/+#9214 ,..,
-urrent <iabilities 55,5>8,198 1.A,8>5,1>5 .A,97>,7.> .A.9.
,rovisions .,>56,665 :,:91,615 .,A98,597 17:.9.
To!al C.$. 129++29/ 1##9/129... #194/9/++ #2.44
Bis. ( Gxpenditure 17,1A.,1:. 1A,5A7,8:7 A,65A,15A A>.91
0hare -apital 86,777,777 97,777,777 8,777,777 A.11
'eserves = 0urplus :6,9>9,.>9 6.,715,87> 19,:::,79. .:.88
To!al Reser'es F
S&r-l&s
/494+49+4 11921/9#2+ 1,9(((924 1..(.
0ecured <oans 118,661,8:7 1A:,:A.,.69 61,A17,5.9 >8.1.
Ensecured <oans 98,>88,777 .6,66A,.A7 ;1:,A:9,6.7 ;8>.89
To!al $oan 1(,94249#(2 1#9#+29((4 ((9/(+924 #(.((
To!al $ia%ili!ies F
Ca-i!al
#+49,119+.. 4,.9,192/. 11#9((/9412 #1.14
INTERPRETATION
96
n comparing the balance sheet of company for the year ending .77:,.77>.
-urrent assets have been increased by :8.99 O, the total &ssets have been increased
by .6.A6 O. The current liabilities have been increased by 87.99 OS total reserves and
surplus have been raised by 1A.:A O. The total liabilities and capital have been
increased by 81.19O.
4.,.# Com-ara!i'e 0alance S1ee! =22+9 22,>
Table 9.6.8.1
Par!ic&lars 22+ 22, Inc 8 Dec Inc 8 Dec =@>
9A
9A
Inventories 5:,775,.55 A.,9>7,9.A ;1.,:9A,A61 ;18..1
0undry Cebtors 1.8,7:8,85A 1.>,>15,781 8,:>:,>88 ..57
-ash = "ank :,6.5,59. >,:A5,A1> A:5,A69 1:.71
Cep.<oan= &dv. 6>,665,:59 9:,857,65: ;81,8AA,655 ;97.AA
To!al C.A. #229(,9## +192+292,2 G#/9(191+# G1#.1(
Fixed &ssets 185,7:.,598 18.,:.8,8:. ;>,:.5,:51 ;9.67
Investments >A:,... >A9,... ;1,777 ;7.1:
To!al Asse!s 4429#129#/. #/49+,9+44 G4+9249,(4 G12.4+
-urrent <iabilit. 1.A,8>5,1>5 17A,6:1,A18 ;15,>16,8:> ;1:..A
,rovisions :,:91,615 >,>99,555 1,178,.A7 15.51
To!al C.$. 1##9/129... 11(9#/+9.1 G1.9(1492,+ G1#..#
Bis.;Gxpenditur. 1A,5A7,8:7 1>,A76,98. ;.,16.,51A ;11.9:
0hare -apital 97,777,777 97,777,777 7 7.77
'es. = 0urplus 6.,715,87> 6>,69A,8:5 9,6.5,7:8 >.:6
To!al Reser'es
F S&r-l&s
11921/9#2+ 11+9,4.9#(/ 49,/92(# 4.
0ecured <oans 1A:,:A.,.69 1:7,161,6.: ;8:,917,:95 ;15.7A
Ensec. <oans .6,66A,.A7 .A,6:A,1A7 565,577 8.:8
To!al $oan 1#9#+29((4 1,.9//9/2( G#494#29+4/ G1+.14
To!al $ia%ili!ies
F Ca-i!al
4,.9,192/. 4,9..9(2. G(29#..9(/2 G12.(4
INTERPRETATION
n comparing the balance sheet of company for the year ending .77>,.776.
-urrent assets have been decreased by 18.1: O, the total &ssets have been decreased
by 17.9> O. The current liabilities have been decreased by 18.A8 OS total reserves and
surplus have been raised by 9... O. The total liabilities and capital have been
decreased by 17.:9O.
95
4.,.4 Com-ara!i'e 0alance S1ee! =22,9 22.>
Table 9.6.9.1
Par!ic&lars 22, 22. Inc 8 Dec Inc 8 Dec =@>
Inventories A.,9>7,9.A 55,:.7,69. 16,7>7,819 .7.>5
0undry Cebtors 1.>,>15,781 111,579,A>7 ;19,619,161 ;11.>.
-ash = "ank >,:A5,A1> 5,A.1,111 8,.81,.5: 95.78
Cep. <oan= &dv. 9:,857,65: :5,:78,5AA 19,118,158 81.75
To!al C.A. +192+292,2 .29,(29,21 1/9+/29+#1 ,.(4
Fixed &ssets 18.,:.8,8:. 1.A,661,16: ;8,6:.,166 ;..A8
Investments >A9,... >A8,... ;1,777 ;7.1:
To!al Asse!s #/49+,9+44 41292(92/. 1(9/#,94(4 4.24
-urrent <iabilities 17A,6:1,A18 119,A5A,A75 >,19>,55> :.>:
,rovisions >,>99,555 .1,171,5.9 19,9:>,5.: .16.:>
To!al C.$. 11(9#/+9.1 1#+92229,## 29+2#9/1 1,..(
:7
:7
Bis.; Gxpenditure 1>,A76,98. 1>,11.,5A6 ;>59,99: ;9.18
0hare -apital 97,777,777 96,:77,777 6,:77,777 1A.6:
'es. = 0urplus 6>,69A,8:5 6:,5:A,7A: ;657,.69 ;1.78
To!al Reser'es F
S&r-l&s
11+9,4.9#(/ 1#94(.92.( +9,2/9,+ (.,(
0ecured <oans 1:7,161,6.: 1.A,::.,:.7 ;.1,>15,.7: ;19.97
Ensecured <oans .A,6:A,1A7 ..,A.1,566 ;:,58>,.78 ;.7.>9
To!al $oan 1,.9//9/2( 1(19#,494/, G,9(((942. G1(.42
To!al $ia%ili!ies
F Ca-i!al
4,9..9(2. 4+9/4+9#2 G/#+92+ G2.
INTERPRETATION
n comparing the balance sheet of company for the year ending .776, .77A.
-urrent assets have been increased by 6.:9 O, the total &ssets have been increased by
9.79 O. The current liabilities have been increased by 16.A: OS total reserves and
surplus have been raised by :.6: O. The total liabilities and capital have been
decreased by 7... O.
:1
4.,.( Com-ara!i'e 0alance S1ee! =22.9 22/>
Table 9.6.:.1
Par!ic&lars 22. 22/ Inc 8 Dec
Inc8Dec
=@>
Inventories 55,:.7,69. 178,6:5,17: 9,.8A,8>8 9..>
0undry Cebtors 111,579,A>7 1.9,A59,77> 1.,5A5,19> 11.>1
-ash = "ank 5,A.1,111 18,766,9:A 8,.:>,896 88.1>
Cep. <oan= &dv. :5,:78,5AA 95,9A>,566 ;17,716,711 ;1>.A8
To!al C.A. .29,(29,21 /191,9(4+ 1294++9.4( #.,#
Fixed &ssets 1.A,661,16: 199,5A5,>7. 1>,.1A,9.6 1..:5
Investments >A8,... >5A,6.. 1:,:77 ...6
To!al Asse!s 41292(92/. 4#+9/2(9.,2 +9,229,, +.(1
-urrent <iabilities 119,A5A,A75 18:,9>:,577 .7,:>6,751 16.57
,rovisions .1,171,5.9 .6,A1:,91: >,618,951 81.A1
To!al C.$. 1#+92229,## 1+#9.19#1( ,9.29(. 2.2+
Bis. ; Gxpenditure 1>,11.,5A6 .:,979,8:: 5,.51,8>A :6.>>
0hare -apital 96,:77,777 96,:77,777 7 7
'eserves = 0urplus 6:,5:A,7A: A>,>67,:7: 17,61.,9.7 19.17
To!al Reser'es F
S&r-l&s
1#94(.92.( 1#491,29(2( 129,1942 ..+.
0ecured <oans 1.A,::.,:.7 1.8,67.,>:5 ;9,A95,A>1 ;8.66
Ensecured <oans ..,A.1,566 ..,7>7,815 ;6>1,>:A ;8.89
To!al $oan 1(19#,494/, 14(9,+9/,. G(9+119(1/ G#.,1
To!al $ia%ili!ies F
Ca-i!al
4+9/4+9#2 4+.9+1/91(# 419+,9.(1 /.,+
:.
:.
INTERPRETATION
n comparing the balance sheet of company for the year ending .77A, .775.
-urrent assets have been increased by 8.68 O, the total &ssets have been increased by
>.:1 O. The current liabilities have been increased by .7.7> OS total reserves and
surplus have been raised by A.>A O. The total liabilities and capital have been
increased by 5.6> O.
:8
4.. ANA$YSIS OF CO6PARATI7E FINANCIA$ STATE6ENT
4...1 Com-ara!i'e Financial S!a!emen! =2249 22(>
Table 9.A.1.1
Par!ic&lars #1.2#.224 #1.2#.22( Inc 8 Dec Inc8 Dec =@>
Income
0ales 8:>,>.8,76. 998,>::,67. A6,78.,>87 .9.97
ther Income .,:.6,5:9 .,>66,A55 195,59: :.58
Inc. $ Cec. in 0tock of
F.D.= 0tock in Trade
9,886,765 ;1,89.,:61 ;:,>65,>:7 ;187.5>
To!al Income #+#94..912( 4449//192#2 .19(29/( .4
E<-en*i!&re
'.B. -onsumed 1A6,8>:,A8: .97,.9>,>61 :.,AA7,A8> .A...
0tores = -onsumables .,18A,79. .,198,16> :,189 7..9
,o!er = Fuel 8,>88,>5> :,88A,171 1,679,97: 9>.51
Trading Doods
-onsumed
>,76>,:7: 5,>8A,7>8 8,:>1,::A :A.>1
Gmployee -ost 8.,155,76> 8>,566,9:1 9,66A,86: 19.A9
&dministrative
Gxpenses
:>,A:8,:7: >8,>A8,:A: >,A87,7A7 1..71
Interest, Finance =
"ank -harges
1A,::5,:71 .:,6>9,9>. 6,.79,5>1 8A.A.
0elling = Cist. Gxp. 8A,A95,869 8>,9A1,6A1 ;.,8>6,:58 ;>.75
ther Gxpenses 1,6A9,.1> :,.:9,:A1 8,967,8>: 159.:7
'epair = Baintenance 9,6:9,686 8,585,7>9 ;A1:,>68 ;16.1:
Cepreciation 17,68>,::9 11,:55,5>: A>8,911 A.79
To!al E<-en*i!&re #+9/(19241 44192++9/22 ,.911(9.(/ 1.(
Ne! Profi! for !1e Year (#,92+4 #9/491#2 #9#.,92++ +#2.++
INTERPRETATION
n comparing the financial statement of company for the year ending
.779,.77:. Total income has been increased by ...9. O. The total Gxpenditure has
been increased by .1.:. O. The #et profit has been increased by >87.>> O.
:9
:9
4... Com-ara!i'e Financial S!a!emen! =22(9 22+>
Table 9.A...1
Par!ic&lars #1.2#.22( #1.2#.22+ Inc 8 Dec Inc8 Dec =@>
Income
0ales 998,>::,67. :>.,1:>,.75 11A,:77,:76 .>.61
ther Income .,>66,A55 .,159,517 ;9A.,5A5 ;1A.79
Inc. $ Cec. in 0tock of
F.D.= 0tock in Trade
;1,89.,:61 1>,>.9,91: 16,5>>,5A> ;188A..:
To!al Income 4449//192#2 (.29/,(9(#4 1#(9/.49(24 #2.(+
::
E<-en*i!&re
'. B -onsumed .97,.9>,>61 87:,51A,8:5 >:,>61,>AA .6.89
0tores = -onsumables .,198,16> .,555,51: A:>,685 85.5A
,o!er = Fuel :,88A,171 >,57>,797 1,:>6,585 .5.86
Trading Doods
-onsumed
5,>8A,7>8 685,.18 ;A,A5A,A:7 ;5..88
Gmployee -ost 8>,566,9:1 98,16>,>A: >,155,.89 1>.6>
Gxcise Cuty 6>,7::,:.: 6>,7::,:.: 7
&dm. Gxpenses >8,>A8,:A: 1:,779,89A ;9A,>65,.86 ;6>.99
Interest, Finance =
"ank -harges
.:,6>9,9>. .>,.51,:.6 :.6,7>: ..7:
0elling = Cist. Gxp. 8>,9A1,6A1 :8,816,>55 1>,A8:,51A 9>.1:
ther Gxpenses :,.:9,:A1 .,6>8,99> ;.,951,18: ;96.91
'epair = Baintenance 8,585,7>9 9,5A6,A>6 1,79A,A78 .>.>8
Cepreciation 11,:55,5>: 1.,:.1,9A1 5.1,:1> 6.59
To!al E<-en*i!&re 44192++9/22 ((29+.912( 12/9+1(92( 4..(
Ne! Profi! for !1e Year #9/491#2 #29/#94/ +9#+/9// +,1./.
INTERPRETATION
n comparing the financial statement of company for the year ending
.77:,.77>. Total income has been increased by 87.:> O. The total Gxpenditure has
been increased by .9.A: O. The #et profit has been increased by >61.5A O.
:>
:>
4...# Com-ara!i'e Financial S!a!emen! =22+9 22,>
Table 9.A.8.1
Par!ic&lars #1.2#.22+ #1.2#.22, Inc 8 Dec Inc8 Dec =@>
Income
0ales :>.,1:>,.75 ::A,565,1:6 ;8,166,7:. ;7.:6
ther Income .,159,517 1,6>>,7.> ;9.A,AA9 ;15.:9
Inc. $ Cec. in 0tock of
F.D.= 0tock in Trade
1>,>.9,91: ;.,9..,6.5 ;15,796,199 ;119.:6
To!al Income (.29/,(9(#4 ((.9#94(4 G9+(#92.2 G#./2
E<-en*i!&re
'. B. -onsumed 87:,51A,8:5 87:,>75,>:: ;87A,679 ;7.17
0tores = -onsumables .,555,51: .,A66,668 ;1..,19. ;9.76
,o!er = Fuel >,57>,797 :,667,557 ;1,18:,7:7 ;1>.99
Trading Doods
-onsumed
685,.18 16.,91. ;:>>,A71 ;6>.>A
Gmployee -ost 98,16>,>A: 9>,>>6,97. 8,957,616 A.7A
Gxcise Cuty 6>,7::,:.: 67,165,961 ;:,A6>,7:9 ;6.68
&dm. Gxpenses 1:,779,89A 19,:76,89> ;956,77. ;8.81
Interest, Finance =
"ank -harges
.>,.51,:.6 .:,.9:,118 ;1,79>,919 ;8.5A
0elling = Cist. Gxp. :8,816,>55 :1,958,658 ;1,A.8,57> ;8.9.
ther Gxpenses .,6>8,99> 9,566,6A. .,.19,88> A7.18
'epair = Baintenance 9,5A6,A>6 8,56>,A>6 ;1,711,777 ;.7..6
:6
Cepreciation 1.,:.1,9A1 11,561,:78 ;:95,56A ;9.85
To!al E<-en*i!&re ((29+.912( (4#94(2912, G,9#19//. G1.#1
Ne! Profi! for !1e Year #29/#94/ 149.,9#4, G1(94192. G(2./1
INTERPRETATION
n comparing the financial statement of company for the years .77>, .776.
Total income has been decreased by 8.57 O. The total Gxpenditure has been decreased
by 1.81 O. The #et profit has been decreased by :7.51 O.
:A
:A
4...4 Com-ara!i'e Financial S!a!emen! =22,9 22.>
Table 9.A.9.1
Par!ic&lars #1.2#.22, #1.2#.22. Inc 8 Dec Inc8 Dec =@>
Income
0ales ::A,565,1:6 :>A,567,5.9 5,551,6>6 1.65
ther Income 1,6>>,7.> .,AAA,965 1,1..,9:8 >8.:>
Inc. $ Cec. in 0tock of
F.D.= 0tock in Trade
;.,9..,6.5 11,5>.,86> 19,8A:,17: ;:58.6>
To!al Income ((.9#94(4 (.#9.19,,/ (94//9#( 4.(,
E<-en*i!&re
'. B. -onsumed 87:,>75,>:: 8:8,51.,5>7 9A,878,87: 1:.A1
0tores = -onsumables .,A66,668 9,871,55A 1,9.9,..: 95.95
,o!er = Fuel :,667,557 >,.>A,68> 956,69> A.>.
Trading Doods
-onsumed
16.,91. 5:,57: ;6>,:76 ;99.86
Gmployee -ost 9>,>>6,97. :1,85.,85: 9,6.9,558 17.1.
Gxcise Cuty 67,165,961 :,7::,9>5 ;>:,1.9,77. ;5..A7
&dm. Gxpenses 19,:76,89> 16,817,6>6 .,A78,9.1 15.8.
Interest, Finance =
"ank -harges
.:,.9:,118 .8,>A1,666 ;1,:>8,88> ;>.15
0elling = Cist. Gxp. :1,958,658 >>,819,91. 19,A.7,>15 .A.6A
ther Gxpenses 9,566,6A. 5,879,A96 9,8.6,7>: A>.58
'epair = Baintenance 8,56>,A>6 9,.19,A77 .86,588 :.5A
Cepreciation 11,561,:78 17,686,597 ;1,.88,:>8 ;17.87
To!al E<-en*i!&re (4#94(2912, ((9(/922+ /91419.// 1.+.
Ne! Profi! for !1e Year 149.,9#4, #19/9,,# 1+9#(,94+ 12/.//
INTERPRETATION
n comparing the financial statement of company for the years .776, .77A.
Total income has been increased by 9.:6 O. The total Gxpenditure has been increased
by 1.>A O. The #et profit has been increased by 175.55 O.
:5
4...( Com-ara!i'e Financial S!a!emen! =22.9 22/>
Table 9.A.:.1
Par!ic&lars #1.2#.22. #1.2#.22/ Inc 8 Dec Inc8 Dec =@>
Income
0ales :>A,567,5.9 >79,5..,7>8 8:,5:1,185 >.8.
ther Income .,AAA,965 8,75:,.9> .7>,6>6 6.1>
Inc. $ Cec. in 0tock of
F.D.= 0tock in Trade
11,5>.,86> ;6,A86,>8> ;15,A77,71. ;1>:.:.
To!al Income (.#9.19,,/ +2291,/9+,# 1+9#(,9./4 ..2
E<-en*i!&re
>7
>7
'.B. -onsumed 8:8,51.,5>7 8>.,985,887 A,:.>,867 ..91
0tores = -onsumables 9,871,55A 8,A5A,55. ;978,77> ;5.86
,o!er = Fuel >,.>A,68> >,799,189 ;..9,>7. ;8.:A
Trading Doods
-onsumed
5:,57: :,>7:,71. :,:75,176 :699.89
Gmployee -ost :1,85.,85: ::,8:6,>71 8,5>:,.7> 6.6.
Gxcise Cuty :,7::,9>5 ;:,7::,9>5 ;177.77
&dm. Gxpenses 16,817,6>6 .7,A>6,956 8,::>,687 .7.::
Interest, Finance = "ank
-harges
.8,>A1,666 1.,>.5,966 ;11,7:.,877 ;9>.>6
0elling = Cist. Gxp. >>,819,91. 6.,5:5,:65 >,>9:,1>6 17.7.
ther Gxpenses 5,879,A96 5,188,7.6 ;161,A.7 ;1.A:
'epair = Baintenance 9,.19,A77 9,8.:,5:: 111,1:: ..>9
Cepreciation 17,686,597 11,AA>,5>9 1,195,7.9 17.67
To!al E<-en*i!&re ((9(/922+ (+(914,9(+. 19(((9(+ .,
Ne! Profi! for !1e Year #19/9,,# #(92#912( #9.29## 1.1.
INTERPRETATION
n comparing the financial statement of company for the years .77A, .775.
Total income has been increased by ..A7 O. The total Gxpenditure has been increased
by ...6 O. The #et profit has been increased by 1..1A O.
>1
4./ TREND ANA$YSIS
4./.1 Financial S!a!emen! Tren* Percen!a"es 0ase Year =224 ? 22(>
Table 9.5.1.1
Par!ic&lars
22. G
22/
22, ?
22.
22+ G
22,
22( G
22+
224G
22(
0ales 18> 1.A 1.> 1.6 177
Total Income 18: 181 1.: 181 177
Total
Gxpenditure
1.A 1.: 1.8 1.: 177
#et ,rofit A58 65> 865 66. 177
INTERPRETATION
>.
>.
Trend ,ercentages of Financial 0tatement as base year .779 ( .77:. 0ales
have been increased during the period .77: ;.77> making 0ales 18>. "oth the Total
income and Total Gxpenditure have been raised during the year .77A ( .775 making
Total income 18: and Total Gxpenditure 1.A. #et ,rofit has been increased during the
period .77A ( .775. Therefore the Financial 0tatement sho!s an increasing trend.
4./. 0alance S1ee! Tren* Percen!a"es 0ase Year =224 ? 22(>
Table 9.5...1
Par!ic&lars
22. G
22/
22,
G22.
22+ G
22,
22( G
22+
224 ?
22(
0hare -apital 1.A.8A 1.A.8A 17A.11 17A.11 177
'eserves =
0urplus
1:7.A8 18..1A 188.:> 1.:.88 177
0ecured <oans 17A.68 11..55 181.55 1>8.1. 177
Ensecured
<oans
:7.:> :..87 >:.51 >8.>> 177
Fixed &ssets 5A.1. A6.19 A5.>A 59.17 177
Investments 177.A> 5A.>5 5A.6> 5A.51 177
Inventories 161.1A 1>9.15 18>.79 1:>.69 177
0undry Cebtors 188.55 1.7.7: 18:.A9 18..71 177
-ash = "ank
"alance
67.9A :..58 8:.:. 87.AA 177
Ceposits, <oans
= &dvances
.17.:> .:8.1A 158.18 8.>.>5 177
>8
Biscellaneous
Gxpenses
.95.:7 1:A..: 1>:.76 1A>.91 177
-urrent <iability
= ,rovisions
1:5.7: 18..9A 11..91 187.99 177
INTERPRETATION
Trend ,ercentages of "alance 0heet as base year .779 ( .77:. Fixed assets
and -urrent liabilities have been increased during the period .77A ;.775 making fixed
assets 5A.1. and current assets as >A6.76. -urrent liabilities have been increased as
1:5.7: during the period .77A ( .775s. Therefore the balance sheet sho!s an
increasing trend.
>9
>9
CHAPTER 7
FINDINGS9 SUGGESTIONS AND CONC$USION
(.1 FINDINGS
1. Dross ,rofit 'atio sho!s an increasing trend from .779 ( .77:,
though there !as slight decrease during the period .77: ; .77>. There
is a significant change in cost of material consumed. The companies
highest gross profit ratio !as during the period .77: ( .77>.
.. #et ,rofit 'atio has a slo! gro!th and decline during the period of
study. It indicates insignificant improvement in conditions of the
business.
8. perating 'atio is the test of operational efficiency. The efficiency has
risen slightly during the period of study.
9. The 'eturn on -apital Gmployed ratio sho!s increasing trend in all
financial years during the period of study. ?ighest of .1.A8O !as
during the period .77A ( .775.
:. 'eturn on Gquity 'atio sho!s an increasing trend though there is a
slight decrease during the year .77> ( .776. ?ighest during the period
.77: ( .77> *.6.79O+.
>. Garning per 0hare 'atio in .77: ( .77> and .77A ( .775 is 7.6> and
7.69 respectively, these !ere the highest.
6. Cebtors Turn over 'atio sho!s slight variations bet!een the periods. It
varies from 9.91 to :.69. ?igher the ratio it signifies that the debt are
>:
being collected more promptly. This ratio indicates that the debts are
being collected more promptly in the company.
A. Cebt collection period indicates the quality of debtors since it measures
the fastness !ith !hich money is collected from them. &s it is bet!een
. to 8 months, it indicates the debt collection efficiency is satisfactory
in the business. In general the amount of receivables should not exceed
8 ( 9 months of credit sale.
5. Fixed asset turn over ratio sho!s an increasing trend in all the financial
years except during .77A ( .775. The ideal ratio is 7.>6. Curing the
period of study it doesn%t fall belo! 8.
17. Total asset turn over ratio sho!s an increasing trend in all the financial
years during the period of study. It sho!s that the assets are !ell
utilized.
11. Inventory turn over ratio indicates the utilization of inventory in an
efficient manner. It is therefore clear that the sales are quick and stock
does not consist of non;salable items. It !as higher in .779 ( .77:,
indicates speedier movement of stock. It has decreased from 9.1. to
8.99 !ith a difference of 7.>A times.
1.. 0tock velocity sho!s the duration of the stock at the company. The
company takes A6.8A days to 179.>: days to clear the stocks.
18. The current ratio !as favorable during .77: ( .77A
19. the quick ratio !as above the satisfactory level as it sho!s a favorable
trend
1:. Cebt equity ratio sho!s that the company is depending outsiders more
during the year .77: ( .77>.
1>. 0ales have been raised from 177O to 18>O.
16. #et profit has been raised from 177O to A58O.
1A. Curing the period of study the total income !as al!ays more than the
total expenditure !hich is good for the company.
15. 0hare capital has been raising in all financial years from 177O to
1.A.8AO.
.7. 'eserves and surplus has been raising from 177O to 1:7.A8O.
.1. 0undry debtors has been raising from 177O to 188.55O.
... Investment sho!s a decreasing trend from 177O to 5A.1.O.
>>
>>
(. SUGGESTIONS
1. The management may take proper decisions to maintain their absolute
liquid ratio, so that they can maintain their liquidity position in the
long run.
.. The liquidity position could be strengthened by reducing the current
liabilities.
8. The management may try to increase the G,0 by increasing the
profitability of the company.
9. The cash balance level of the company !hen compared to current
liabilities is minimum and the management may improve the cash
balance to an optimum level to meet the contingencies.
:. The company may tighten the credit policy to the customers to reduce
the debt collection period.
>6
(.# CONC$USION
n studying the financial performance *thro ratio analysis+ of &B&'&M&T?I -;
,G'&TIMG 0ED&' BI<<0 <TC., for a period of five years from .779 ( .77: to
.77A ( .775, the study reveals that the financial performance in general is
satisfactory. It could be concluded that the company has been performing !ell.
>A
>A
0I0$IOGRAPHY
Techniques of financial analysis *& practical guide to managing and
measuring business performance+ 5
th
edition ( Grich &. ?elfert.
&nalysis for financial management !ith s = p bind by 'obert ?iggins.
Financial analysis tools and techniques a guide by Grich ?elfert.
0chaum%s quick guide to business formulas by @oel D. siegel
>5