A STUDY ON

FINANCIAL PERFORMANCE IN ITI LIMITED,

PALAKKAD

MAJOR PROJECT REPORT

Submitted to
University of Calicut
In partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

BY
HAFISH M,
(REG. NO: LCALMBA 027)
IVth SEMESTER MBA (2011-13),
LEAD COLLEGE OF MANAGEMENT, PALAKKAD

Under the guidance of
MR. PRADEEP KUMAR
ASSISTANT PROFESSOR
LEAD COLLEGE OF MANAGEMENT, PALAKKAD

MAY 2013




DECLARATION

I, hereby declare that this dissertation entitled A study on Financial performance in ITI Ltd,
Palakkad submitted in partial fulfillment of Master in Business administration of Calicut
university, It is a record of independent research work carried by me under the guidance of Mr.
Pradeep Kumar, Assistant Professor , Lead College of Management, Dhoni, Palakkad
I also declare that this dissertation is a result of my own effort and has not been submitted
earlier for the award of any degree/diploma/associate ship/prize by Calicut University or any other
university


Date: HAFISH M
Place: Reg no: LCALMBA027











ACKNOWLEDGEMENT
I would like to express sincere gratitude and reverence to God Almighty, for guiding me
throughout this project, making my endeavor an undiluted success.
With great pleasure, I am presenting this project entitled a study on Financial performance
in Indian Telecom Industries Limited, Palakkad; project of this dimension would not have been
possible without the sincere help and earnest support provided to me from all sources that was
approached.
My most sincere thanks to Mr. T N V NAMBIAR, Assistant Finance Manager, and
Mr. VT. PARAMESWARAN, Finance officer and Smt. HARINI, Head of personal department of
ITI Limited, Palakkad, for their kind hearted co- operation, direction and assistance in spite of their
busy schedule which has helped me a lot in completing this report successfully.
I wish to express my deep sense of gratitude to Mr. PRADEEP KUMAR, assistant
professor at LEAD COLLEGE OF MANAGEMENT for his kind support, advice and
encouragement from the beginning of the project work till the completion of the project report and
he has been very co-operative and without his valuable advices and suggestions this report would not
have been successful.
My hearty thanks to our principal Dr. K.V UNNINARAYANAN and all teaching and
non-teaching staffs for providing me with all the facilities in completing this report.
In course of completion of the project I was fortunate to receive the assistance
of many faculty, friends and relatives who were extremely generous with their time and energy, I
would like to thank all of them and recognize the fact that without them this project would have been
inconceivable.

HAFISH M
Reg no: LCALMBA027



Table of Contents
Chapter Title Page no
I INTRODUCTION 1-17
1.1 Organization profile 4
1.1.1 About the products 7
1.1 .2 About the services 7
1.1.3 Strategic alliances 8
1.1.4 Infrastructure & Facilities 9
1.1.5 Quality system 10
1.1.6 Achievements 11
1.2 Research problem statement 14
1.3 Objectives 15
1.4 Scope of the study 15
1.5 Research methodology 16
1.6 Limitations of the study 17
II REVIEW OF LITERATURE 18-30
2.1 Financial analysis 22
2.2 Types of financial analysis 22
2.3 Procedure of financial statement analysis 24
2.4 Methods of financial analysis 25
III DATA ANALYSIS & INTERPRETATION 31-83
IV FINDINGS AND SUGGESTION 84-87
4.1 Findings 84

4.2 Suggestions
86

4.3 Conclusion
87
BIBILIOGRAPHY 88
ANNEXURE 90-91




LIST OF TABLES

SLNO TABLE PAGE NO
3.1 Current Ratio 32
3.2 Quick ratio 34
3.3 Inventory Turnover Ratio 36
3.4 Debtors Turnover Ratio 38
3.5 Creditors Turnover Ratio 40
3.6 Working Capital Turnover Ratio 43
3.7 Fixed asset turnover ratio 45
3.8 Total asset turnover ratio 46
3.9 Gross Profit ratio 48
3.10 Operating ratio 50
3.11 Operating Profit ratio 52
3.12 Net Profit ratio 54
3.13 Common size Balance sheet 57
3.14 Common size Income statement 61
3.15 Comparative balance sheet for the year 2007 and 2008 63
3.16 Comparative balance sheet for the year 2008 and 2009 65
3.17 Comparative balance sheet for the year 2009 and 2010 67
3.18 Comparative balance sheet for the year 2010 and 2011 69
3.19 Comparative balance sheet for the year 2011 and 2012 71
3.20 Comparative Income statement for the year 2008-2009 73
3.21 Comparative Income statement for the year 2009-2010 74
3.22 Comparative Income statement for the year 2010-2011 75
3.23 Comparative Income statement for the year 2011-2012 76
3.24 Trend Analysis of the Balance sheet 77
3.25 Trend Analysis of the Income statement 80
3.26 Correlation between Sales and Profit 82






LIST OF CHARTS

SLNO CHART PAGE NO
3.1 Current ratio 32
3.2 Quick ratio 34
3.3 Inventory Turnover Ratio 37
3.4 Debtors Turnover Ratio 39
3.5 Average collection period 39
3.6 Creditors Turnover Ratio 41
3.7 Average payment period 41
3.8 Working Capital Turnover Ratio 43
3.9 Fixed asset turnover ratio 45
3.10 Total asset turnover ratio 47
3.11 Gross Profit ratio 49
3.12 Operating ratio 51
3.13 Operating Profit ratio 53
3.14 Net Profit ratio 55















Chapter I
Introduction

























Chapter II
Review of Literature



















Chapter III
Data analysis and
Interpretation

















Chapter IV
Findings and Suggestions
















Appendix







A STUDY ON
FINANCIAL PERFORMANCE IN ITI LIMITED,
PALAKKAD

MAJOR PROJECT REPORT

Submitted to
University of Calicut
In partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

BY
HAFISH M,
(REG. NO: LCALMBA 027)
IVth SEMESTER MBA (2011-13),
LEAD COLLEGE OF MANAGEMENT, PALAKKAD

Under the guidance of
MR. PRADEEP KUMAR
ASSISTANT PROFESSOR
LEAD COLLEGE OF MANAGEMENT, PALAKKAD

MAY 2013