A STUDY ON FINANCIAL FORECASTING WITH REFERENCE TO

CHENNAI PORT TRUST

BY
A.MONICA JULIN
(Reg. No: 210511631021)

A PROJECT REPORT
Submitted to the

FACULTY OF MANAGEMENT SCIENCE

In partial fulfilment of the requirements

For the award of the degree
Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY
CHENNAI-600 025
MAY 2013

DMI COLLEGE OF ENGINEERING

(Affiliated to Anna University)
Palanchur, Nazarathpet (P.O),
Chennai-602103

BONAFIDE CERTIFICATE
Certified that this project report titled A STUDY ON FINANCIAL FORECASTING
WITH REFERENCE TO CHENNAI PORT TRUST is the bonafide work of MS. A.
MONICA JULIN (210511631021) who carried out the research under my supervision.
Certified further, that to the best of my knowledge the work reported herein does not form
part of any other project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate.

HEAD OF DEPARTMENT

PROJECT GUIDE

DECLARATION

I hereby declare that the project work titled A STUDY ON FINANCIAL

FORECASTING WITH REFERENCE TO CHENNAI PORT TRUST, Chennai, is an
original work done by me and submitted in partial fulfilment of the award of MASTER
OF BUSINESS ADMINISTRATION of Anna University, Chennai, Tamil Nadu.

DATE:
PLACE:

A. MONICA JULIN

ACKNOWLEDGEMENT

First of all, I whole heartedly thank the almighty for giving me the opportunity
and strength to successfully complete my final project.
I render my sincere gratitude to Founder Rev.Fr.Dr.J.E. Arul Raj OMI and
Rev.Sr. Arokiya Mary, DMI (Correspondent) who persuade me to do this project
successfully and for their continuous support and encouragement.
I render my sincere gratitude and special thanks to Dr. V.Subbiah Bharathi,
M.Tech. Ph.D., Principal, DMI College of Engineering, Chennai, for giving us the
opportunity to undertake this project work.
I am very much thankful to Dr. M. Suresh, Dean Academics, for his constant
support and encouragement.
I also express my sincere gratitude to Prof. M. Sampath Kumar, BE, PGDM,
MBA(IIM) HOD, Department of Management Studies for his direction for this project and
for his untiring help and car evinced during my project work.
I would like to thank Mr. Josiah, for his valuable guidance, ideas and
encouragement for the successful completion of the project.
I would like to thank my guide at CPT, Mr. Damodharan, Manager, Finance
Department who granted me permission to conduct my study and also provided me with
the needed support and guidance.
I am thankful to all the faculty members of the department of Management
Studies who played a great role to make my project successful.

CONTENTS

SL.NO

TITLE
List of Tables
List of Charts
Abstract

CHAPTER-1
1.1

Introduction

1.2

Industrial profile

1.3

Company profile

1.3.1

Vision and Mission

1.4

Objective of the study

1.5

Need for the study

1.6

Scope of the study

CHAPTER-2
2.1

Review of Literature

CHAPTER-3
2.2

Research Methodology

2.3

Limitations of the study

CHAPTER-4
3

Analysis and Interpretation

CHAPTER-5
4.1

Findings

4.2

Suggestion

4.3

Conclusion

PAGE NO.

CHAPTER-6
Bibliography
Appendix

LIST OF TABLE

TABLE NAME

TABLE NO
4.1

Net profit ratio

4.2

Operating profit ratio

4.3

Return on investment

4.4

Administrative expenses ratio

4.5

Current ratio

4.6

Liquid ratio

4.7

Cash position ratio

4.8

Working capital turnover ratio

4.9

Fixed assets turnover ratio

4.10

Capital turnover ratio

4.11

Trend analysis for cargo handling

4.12

Payback period

4.13

Annual rate of return

4.14

Net present value

4.15

Internal rate of return

4.16

Discounted payback period

4.17

Profitability index

4.18

Trend analysis for profit

4.19

Trend analysis for expenditure

4.20

Trend analysis for working capital

LIST OF CHARTS

PAGE NO

TABLE NAME

TABLE NO
4.1

Net profit ratio

4.2

Operating profit ratio

4.3

Return on investment

4.4

Administrative expenses ratio

4.5

Current ratio

4.6

Liquid ratio

4.7

Cash position ratio

4.8

Working capital turnover ratio

4.9

Fixed assets turnover ratio

4.10

Capital turnover ratio

4.11

Trend analysis for cargo handling

4.12

Payback period

4.13

Annual rate of return

4.14

Net present value

4.15

Internal rate of return

4.16

Discounted payback period

4.17

Profitability index

4.18

Trend analysis for profit

4.19

Trend analysis for expenditure

4.20

Trend analysis for working capital

PAGE NO

ABSTRACT
This research entitled, A study on financial forecasting with reference to
Chennai port trust. The research study is to find out the future financial performance and
the research carried out based on the present financial position of the company.
The research design followed here is descriptive research. Data has been collected
from secondary data method and the secondary data are collected from the annual report,
company records, books and websites.
The tools and techniques used for analyzing the data are

Ratios,
Comparative balance sheet,
Capital budgeting,
Trend analysis.
The objective of the study is to forecast future profit, expenditure working capital

and to know the profitability of a new project.

CHAPTER-1
Introduction

INTRODUCTION
Financial Forecasting is the estimation of value of a variable or set of variable at
some future point. A Forecasting exercise is usually carried out in order to provide an aid to

decision making and planning in the future. Business Forecasting is an estimate or

prediction of future developments in business such as Sales, Expenditures and profits. Given
the wide swings in economic activity and the drastic effects these fluctuations can have on
profit margins, business forecasting has emerged as one of the most important aspects of
corporate planning. Forecasting has become an invaluable tool for business to anticipate
economic trends and prepare themselves either to benefit from or to counteract them. Good
business forecasts can help business owners and managers adapt to a changing economy.
Financial forecasting represents a blueprint of what a firm proposes to do in the
future. So, naturally planning over such horizon tends to be fairly in aggregative terms.
While there are considerable variations in the scope, degree of formality and level of
sophistication in financial planning across firms, we need to focus on common elements
which include Economic assumptions, Sales forecast, Pro forma statements, Asset
requirements and the mode of financing the investments.
In general usage, a financial plan can be a budget, a plan for spending and saving
future income. This plan allocates future income to various types of expenses, such as rent
or utilities, and also reserves some income for short-term and long-term savings. A financial
plan can also be an investment plan, which allocates savings to various assets or projects
expected to produce future income, such as a new business or product line, shares in an
existing business, or real estate.
Financial forecast or financial plan can also refer to an annual projection of
income and expenses for a company, division or department. A financial plan can also be an
estimation of cash needs and a decision on how to raise the cash, such as through borrowing
or issuing additional shares in a company.

INDUSTRY PROFILE

Ports are an important form of infrastructure in Indian economy. They play a

vital role in facilitating international trade and commerce by providing an interface between
the ocean transport and land-based transport. India has an extensive coastline of about 7517
km spreading on the Western and Eastern shelves of the mainland as well as along the
Islands. It has a well-established port infrastructure covering 12 major ports and 200
minor/intermediate ports (non-major ports), spreading across 9 coastal States. These major
ports come under the purview of the Central Government, while non-major ports (minor/
intermediate ports) come under the jurisdiction of the respective State Governments.
In India, the concerned authority is the Department of Shipping, in the Ministry
of Shipping, Road Transport and Highways, which has been entrusted with the
responsibility of formulating and implementing policies and programmes on port sector. The
Department has formulated the 'National Maritime Development Programme (NMDP)'
which aims to create world-class infrastructure in ports. Total investment envisaged in the
programme is Rs. 1, 00,339crores, out of which Rs. 55,804crores is for major ports. A total
of 276 projects (involving investment of USD 12.40 billion) relating to port sector have
been identified under the programme for implementation by 2011-12. These include berth
development, deepening of channels, port connectivity projects, up gradation/ modernisation
of cargo handling equipment and other support services. A major portion of the investment
is expected to come from the private sector, mainly in commercially viable projects like
construction of berths and operation of berths and terminals. Public funds are used where
necessary, for the provision of common user infrastructure facilities.
The 12 major ports serve as the gateways to India's international trade by sea,
handling over 90% of foreign trade. They are spread equally on the east coast and west coast
of India. Kolkata port (including Dock complex at Haldia); Paradip port; Visakhapatnam
port; Chennai port; Ennore port; and Tuticorin port are on the east coast. While, Cochin port;
New Mangalore port; Mormugao port; Jawaharlal Nehru port; Mumbai port; and Kandla
port are on the west coast. All the major ports are administered by the 'Port Trusts' governed
by the provisions of Major Port Trust Act, 1963 which are autonomous bodies, except the
newly ' Ennore Port' which is run by ' Ennore Port Limited' (registered under the Companies
Act, 1956).
The total 200 non-major ports are in the following States:- Gujarat (42);
Maharashtra (48); Tamil Nadu (15); Karnataka (10); Kerala (17); Andhra Pradesh (12);

Odessa (13); Goa (5); West Bengal (1); Daman and Diu (2); Lakshadweep (10); Pondicherry
(2); and Andaman & Nicobar (23).There has been a phenomenal growth in the cargo
handled at the ports, which has increased from 19.38 million tonnes (major ports) in 195051 to around 649.38 million tonnes (major and non-major ports) by 2006-07. At the
beginning of the Tenth Plan, the capacity of major ports was about 344 MT. The aggregate
capacity as on 31.3.2007 has been 504.75 million tonnes per annum (MTPA). Container
traffic handled at major ports is also fast increasing. About 75 per cent of the cargo handled
normally at these ports is for overseas trade.
The major ports have handled a total traffic of 463.84 million tonnes during the
year 2006-07 and 423.99 million tonnes in the year 2007-08 for the period up to 31.1.2008.
Traffic in these ports is projected to go up to 700 MT by the year 2011-12. It is, therefore,
planned to augment the capacities in the major ports to about 1000 MTPA by that period so
as to ensure smooth flow of traffic. Besides, the average output per ship per day for all
major ports taken together has improved from 9267 tonnes in 2005-06 to 9745 tonnes in
2006-07. Average turnaround time has marginally increased from 3.50 days to 3.62 days
over the same period primarily on account of increase in the number of ships handled at the
ports.
In order to improve efficiency, productivity and quality of services as well as
to bring in competitiveness in port services, the port sector has been thrown open to private
sector participation. Such private investments are mainly on the Build, Operate and Transfer
(BOT) basis and include various areas of port functioning, such as leasing out existing
assets of the port, construction/ creation of additional assets, construction of cargo handling
berths, container terminals and warehousing facilities, installation of cargo handling
equipments, construction of dry docks and ship-repair facilities, leasing of floating crafts,
pilotage and captive facilities for port based industries, etc. Foreign direct investment (FDI)
up to 100 per cent is permitted for construction and maintenance of ports and harbours.
Joint venture formations between a major port and a foreign port, between
major port and minor port(s) without tender, as well as between major port and
company(ies) following tender route are permitted by the Government. The measure is
aimed at facilitating port trusts to attract new technology, introduce better managerial
process, expedite implementation of schemes, foster strategic alliance with minor ports for
creation of optimal port infrastructure and enhance confidence of private sector in funding

ports. So far, 15 private sector projects involving an investment of Rs. 4242crores have
become operational. While, one project, that is, ICTT at Cochin is partly operational. Five
projects are under implementation and 17 projects are in the pipeline.
Major investment and development projects in the port sector are:

Re-development of Bulk Terminal as a Container Terminal project at Jawaharlal

Nehru Port developed on BOT basis by Maersk A/S and CONCOR.

International Container Transhipment Terminal at Cochin Port developed on BOT

basis by M/s Dubai Ports International (DPI).

Container Terminal Project at Kandla Port on BOT basis by M/s. ABG Heavy
Industries.

Development of Container Terminal at Kandla Port on BOT basis.

Stage 1 of the Inner Harbour Deepening project at Visakhapatnam Port.

Deepening Projects at JNPT, Mumbai, Ennore, Tuticorin and Paradip Ports; etc.
Thus, Indian ports are indispensable in the development of countrys maritime

trade and economy, owing to Indias current share in global merchandise trade at around
0.80%. They are not only considered as trade gateways, but also integral components of the
global logistics and transportation chain.

INTRODUCTION TO PORT SECTOR:

Port is an opening for boarding s hip. For the understanding of a port as commercial
enterprise which is offering its services on international transport markets. It is necessary to
define on the one hand the macro-economics role of a sea port in the chain of transport and
on the other hand the macro-economic function of a seaport for their national economy and
the geographical region where the port is located.

INDIAN PORT SECTOR

Foreign trade in any country is carried out by imports and exports. Generally, these
transactions is done by means of air, vessels or by land the ort provide facility for
transporting cargo in bulk by berthing the vesels and supply the required assistance in terms
of manpower, storage, machinery, equipments, security and also as a custodian of the cargo.
It also ensures proper duties (if any) are paid to the customers. Through ports the nation gets
enormous amount of foreign exchange. Port sectors performances are largely dependent on
the machineries possessed by the industry and the maintenance.
Chennai port is one of the major port in Indian and handles different kinds of vessels
including costal and foreign vessels. The port is located at the heart of the city o Chennai
and services to various industries, various types of cargo and handles through the port with
the help of the specialized equipments installed for the purpose.
The details about the port and the port operations were observed during the study.
During the training period the various information like the procedures for imports and
exports of cargo, handling of ships by the port, the facilities extended by the port for
transacting the cargo, the various operational divisions functions and ports plans for the
future development and the activities of the various departments were studied.

MAJOR PORTS:
1. Chennai port trust
2. New Mangalore port trust
3. Visakhapatnam port trust
4. Kolkata port trust
5. Kandla port trust
6. Cochin port trust
7. Mumbai port trust
8. Tuticorin port trust
9. Marmugao port trust
10. Haldia port trust
11. Paradeep port trust
12. Ennore port trust

Mumbai, Calcutta, Chennai and marmugao are more than 100 years old. Cochin and
Visakhapatnam ports have celebrated their golden jubilee. The port of kandla, tuticorin, new
mangalore and paradip were developed in the independent period.

Each major port has a board of trustees representing various interest connected with the
port operations and the shipping industry. The chairman of each major port is appointed
central government besides chairman, the port trust bard comprises deputy chairman,
representatives of the board, other than the chairman and deputy chairman are part time
members.
For its various activities, each port engages different types of labour, the workers
employed by the authorized are generally known as port workers and they work on shore
and for work based the ship, workers registered with labour known as dock labour are
engaged.

COMPANY PROFILE
Chennai Port, the third oldest port among the 12 major ports, is an emerging hub port
in the East Coast of India. This gateway port for all cargo has completed 128 years of
glorious service to the nations maritime trade.

Maritime trade started way back in 1639 on the sea shore Chennai. It was an open
road -stead and exposed sandy coast till 1815. The initial piers were built in 1861, but the
storms of 1868 and 1872 made them inoperative. So an artificial harbour was built and the
operations were started in 1881.The cargo operations were carried out on the northern pier,
located on the north-eastern side of Fort St. George in Chennai. In the first couple of years
the port registered traffic of 3 lakh tonnes of cargo handling 600 ships.
Being an artificial harbour, the port was vulnerable to the cyclones, accretion of sand
inside the basin due to underwater currents, which reduced the draft. Sir Francis Spring a
visionary skilfully drew a long-term plan to charter the course of the port in a scientific
manner, overcoming both man-made and natural challenges. The shifting of the entrance of
the port from eastern side to the North Eastern side protected the port to a large extent from
the natural vulnerabilities. By the end of 1920 the port was equipped with a dock consisting
of four berths in the West Quays, one each in the East & South Quay along with the transit
sheds, warehouses and a marshalling yard to facilitate the transfer of cargo from land to sea
and vice versa. Additional berths were added with a berth at South Quay and another
between WQ2 & WQ3 in the forties.
Indias Independence saw the port gathering development, momentum. The
topography of the Port changed in 1964 when the Jawahar dock with capacity to berth 6
vessels to handle Dry Bulk cargoes such as Coal, Iron ore, Fertilizer and non hazardous
liquid cargoes was carved out on the southern side.
In tune with the international maritime developments, the port developed the Outer
Harbour, named Bharathi Dock for handling Petroleum in 1972 and for mechanized
handling of Iron Ore in 1974. The Iron ore terminal is equipped with Mechanized ore
handling plant, one of the three such facility in the country, with a capacity of handling 8
million tonnes. The Chennai ports share of Iron ore export from India is 12%. The
dedicated facility for oil led to the development of oil refinery in the hinterland. This oil
terminal is capable of handling Suezmax vessels.
In 1983, the port heralded the countrys first dedicated container terminal facility
commissioned by the then prime minister Smt. Indira Gandhi on 18th December 1983. The
Port privatized this terminal and is operated by Chennai Container Terminal Private Limited.
Having the capability of handling fourth generation vessels, the terminal is ranked in the top
100 container ports in the world. Witnessing a phenomenal growth in container handling

year after year the port is added with the Second Container Terminal with a capacity to
handle 1.5 M TEUs to meet the demand. To cater to the latest generation of vessels and to
exploit the steep increase in containerized cargo the port is planning to welcome the future
with a Mega Container Terminal, capable of handling 5 Million TEUs expected to be
operational from 2013.
The Chennai port is one among the major ports having Terminal Shunting Yard and
running their own Railway operations inside the harbour on the East Coast. The port is
having railway lines running up to 68 kms and handles 25% of the total volume of the cargo,
4360 rakes (239412 wagons) during 2009-10.
The port with three Docks, 24 berths and draft ranging from 12m to 16.5m has
become a hub port for Containers, Cars and Project Cargo in the East Coast. The port has
handled an all time high of 61.06 Million tonnes of cargo registering an increase of 6.2%
over previous year. An increase of 10.14% in handling of cars from 273917 Units in the year
2009-10 when compared with 248697 Units in the year 2008-09 and an increase of 6.39% in
handling of containers from 1143373 TEUs in the year 2008-09 to 1216438 TEUs in the
year 2009-10. The long term plan for Chennai Port envisages that the Port will mainly
handle 4Cs i.e. Containers, Cars, Cruise and Clean Cargo.

PORT HISTORY
BEFORE 1800S:
In 1639, the British East India Company bought a three-mile long strip of land
lying along the coast between the Cooum delta and the Egmore River encompassing an area
of about five square kilometers from the Vijayanagara King Peda Venkata Rayalu. Soon

obtaining permission from the regional ruler, Damarla Venkatadri Nayakudu, the British
built a warehouse and factory on the site, and in 1940, the British expanded the occupation
by building the Fort St. George and establishing a colony on the site of the future port of
Madras.
By the late 18th century, most of the southern region of India had been
conquered by the British and Madras was established as the capital of the Madras
Presidency. During this period, the port flourished under British rule, becoming an
important naval base and urban center. A port at Madras was first suggested by Warren
Hastings in 1770 when he was posted here, who later became the first Governor General of
India. However, it was not until the 1850s that work began on a pier to berth vessels
following suggestions from the Madras Chamber of Commerce and Industry.
An artificial harbour was then built and the operations were started in 1881,
and the pier was rebuilt in 1885, although there was a demand for relocating the entrance.
Work on the harbour was completed in 1911. The Chennai Port Trust has taken the year
1881, the year of rebuilding, as the starting year. The cargo operations were carried out on
the northern pier, located on the north eastern side of Fort St. George in Chennai. In the first
couple of years the port registered traffic of 300,000 tons of cargo handling 600 ships. The
first railway line in South India was laid between Madras and Arcot which started operating
in 1856. By the late 19th century, the port was well connected to the other two important
cities in the British colony, viz. Bombay (Mumbai) and Calcutta (Kolkata).
From 1905 to 1919, major improvements took place in the port under the
stewardship of the visionary Sir Francis Spring. By the end of 1920, the port had a dock
consisting of four berths in the west quays, one each in the east and south quay along with
the transit sheds, warehouses and a marshaling yard to facilitate the transfer of cargo from
land to sea and vice versa. In 1929, the Mercantile Marine Department, which was working
directly under the Ministry of Shipping till the establishment of the Directorate General of
Shipping at Mumbai in 1949, was established to implement the first SOLAS and Load Line
conventions. Additional berths were added in the 1940s with a berth at south quay and
another between WQ2 and WQ3. The year 1946 saw the establishment of the Port Health
Organization. In 1947, when India gained independence, Chennai became the capital of the
Madras State, renamed as Tamil Nadu in 1969.

POST-INDEPENDENCE
Post-Independence, the development of the port gained momentum. In 1959,
a passenger station on the first floor of the transit shed at north quay was commissioned. In
1961, construction of signal station at north quay was completed. In the same year, the port's
Jawaharlal Dock was inaugurated by the then prime minister of India, Lal Bahadur Shastri.
In 1964, the Jawahar dock with capacity to berth 6 vessels to handle dry bulk cargoes such
as coal, iron ore, fertilizer and non-hazardous liquid cargoes was created on the southern
side changing the topography of the port. To handle vessels with as much as 16.2 m (53 ft.)
draft, the port developed the outer harbour, named Bharathi Dock, for handling petroleum in
1972 and for mechanized handling of iron ore in 1974. This oil terminal is capable of
handling Suezmax vessels.
When the city of Madras was renamed as Chennai in 1996, the Madras Port
Trust followed suit and was renamed as Chennai Port Trust. In 2000, the port began to
handle pure-car-carrier shipments of automobiles. In 2003, the 200 m naval berth was given
for 30-year lease. The 2004 tsunami devastated the shores of the port, taking many lives and
permanently altering the coastline.
The port currently has the capacity to handle 3,000,000 TEUs and with the
commissioning of the third mega container terminal being planned, the capacity would go
up to 8,000,000 TEUs. Due to excessive pollution from coal dust, the port for a brief period
of time suspended shipping food grain. However, following the transfer of coal shipments to
the neighbouring Ennore Port since 2002, handling of food grain was resumed after about 9
years in 2003. The port hopes to handle 4 million tons of food grain annually over the next
few years.

TERMINALS

CONTAINER TERMINALS:
The port has two container terminals, run separately by DP World Pvt. Ltd and

Singapore's PSA International Pte Ltd, with a combined capacity to handle 2.8 million
standard containers a year. The two terminals loaded 1.11 million standard containers

between April and December 2010, up from 886,000 containers a year earlier. Both the
terminals have daily trains to Inland Container Depots (ICDs). There are plans to build a
mega container terminal, the third one at the port, with private funds worth 36,860 million.
The port is served by various container liner services, namely, APL, K Line, Maersk Line,
MOL, NYK, PIL and several regional container lines.

CHENNAI CONTAINER TERMINAL:

Chennai Container Terminal (CCT) is the first container terminal in Chennai

port built in 1983. The container terminal was privatized in 2001 and is operated by DP
World since 30 November 2001 with a capacity of 1.2 million TEUs. CCT is managed under
a 30 year build-operate-transfer agreement set up with the Chennai Port Trust of the
Government of India. The terminal is capable of handling fifth generation vessels up to
6,400 TEU and has direct services to China, West Africa, Europe and the United States. The
terminal crossed the "one million TEU" mark in 2007. In 2011, it handled 1.12 million
TEUs.[66] It enjoys a quay length of 885 m (2,904 ft.) and has 4 berths with an alongside
depth of 13.4 m (44 ft.), height (ISLW to Top of Cope) of 34 m (112 ft.), channel length of
6,700 m (22,000 ft.) and channel depth of 19.2 m (63 ft.). The total terminal area covers
21.1 hectares, and yard stacking area covers 17 hectares (42 acres). The terminal has an onsite rail track. It has a berth productivity of 22 moves per hour and an average turnaround of
26 hours. The operator has invested around US$128 million to get new equipment at the
terminal. At present, 7 quay cranes with Super Post Panamax handling capacity and 24
rubber-tyred gantry cranes (RTGs) form part of the inventory.
The operator has also taken over from Chennai Port 4 quay cranes, 10 RTGs, 3 reach
stackers, 240 reefer plugs, and 2 top lifters and one empty container handler. CCT is ranked
at the 79th position among the top 100 container terminals in the world. It is one of the
fastest growing terminals in India with a CAGR of 20 per cent. It presently has four
mainline services with direct connectivity to Mediterranean, Europe, Thailand, Vietnam,
China and Korea. The mainline services are complemented by seven weekly feeder services
and one coastal service to Colombo, Vizag, Penang, Port Klang, Singapore, Yangon and Port
Blair, respectively. Presently, CCT is connected to 50+ ports worldwide. A container freight
station, with a covered area of 6,500 m2 (70,000 sq. ft.), operates within the port offering
such services as inspection, LCL de-stuffing and delivery of import cargo. CCT has plans to
invest 1 billion to install today cranes.

RO-RO CAR TERMINAL

Dubbed the Detroit of Asia, Chennai is base to several international car makers,

namely, Ford Motor Co., Hyundai Motor Co., Nissan Motor Co., Renault SA, Daimler AG
and BMW AG.[75] Car export (mainly Hyundai) increased by 80.25 per cent to touch 2,
48,697 during 2008-09 as against 1, 37,971 in the previous year. The port handled 65 car
carriers compared with 40 in the previous year. In 2009, the port shipped nearly 274,000
cars, 10 per cent more than the previous year. The port is now the number one ro-ro car
terminal in the country. After Hyundai, the port has started attracting global manufacturers
like Mahindra, Toyota, and Ford. Ford has decided to move exports to Chennai Port by
2010.

CRUISE TERMINAL
Chennai Port is one of the five major ports in the country that have been

identified by the Ministry of Shipping for development of cruise terminals, the other four
being Goa, Cochin, Mumbai and Mangalore. The port has had passenger and tourist services
to Burma, Malaya, Singapore, Manila, London, Suez, Aden and Colombo for over 100
years. There was regular passenger traffic during the British rule. Per official records, the
port had annual passenger traffic of 60,000 in 1956. In 1959, the port built a dedicated
passenger terminal for coastal and cruise vessels. The passenger cruise terminal is located in
the West Quay. The Shipping Corporation of India operated regular ChennaiSingapore
services till 1984. On an average, 10 international cruise vessels dock in the port each year.
The number of tourists visiting the port in 2008-09 was 2,616, which rose to 3,401 in 200910. The country's first cruise ship, AMET Majesty, is registered in Chennai and is set to start
from Chennai on 8 June 2011.

OIL TERMINALS (BD1 & BD3)

First Oil berth at Bharathi Dock-I commissioned in 1972 can handle tankers

up to 100,000 DWT. Second Oil Berth at Bharathi Dock-III commissioned in 1986 can
handle tankers up to 140,000 DWT. Maximum LOA of Tankers Berthed at BD - I & BD - III
- 280.4m (920 ft.). Minimum LOA of the ship so far Berthed at BD - I - 108.15m. Capacity
- 13 Million Tons per Annum. Installed with 5 Marine Loading Arms at BD- I and 6 Marine
Loading Arms at BD - III. Berths laid with 762 mm (30") die pipelines for conveying Crude,
500 mm (20") dia pipeline for conveying White Oil Product and 350 mm (14") dia pipelines

for conveying Furnace Oil. Separate Pipelines for Crude, Furnace Oil, White Oil Products,
DE ballasting, Tower Monitor, Fire Hydrant and Fresh Water. Service Lines for LDO
Bunker, Furnace Oil Bunker and Lubricant Oil Bunker. The facilities include pumping at the
rate of 3000 Tones per hour for Crude oil and 1000 Tones per hour for Petroleum Products.
Provision of Oil reception facilities in accordance with MARPOL convention for receiving
oily ballast, sludge and slop. Both the jetties are equipped with fire monitors. There is a
separate firefighting pump house with diesel and electrically driven pumps to supply fire
hydrant and tower monitors.

IRON ORE TERMINAL (BD2)

Mechanized Ore handling Plant commissioned in 1977 at Bharathi Dock-II.

Can handle Ore carriers of maximum size 1, 45,000 DWT and LOA of 280.4 meters.
Capacity - 8 Million Tons per Annum. Loading rate - 6000 Tones per hour. Capable of
receiving, stockpiling, reclaiming, weighing, sampling and ship loading. Ore handling
facilities consists of two rotary wagon tipplers, ten lines of conveyors, two rail-mounted
stackers, two rail-mounted bucket-wheel reclaimers and two rail-mounted ship loaders.
Equipped with automatic belt weighed, sampling facilities, self-contained maintenance
workshop and a service station. Separate receiving line and shipping line, which can also
function as interconnected system. Availability of two control rooms for the automatic
operation of various equipment and conveyors. Well-connected rail lines. Back-up of 33 KV
receiving sub-station. Ore Stock Yard - Capacity - 6.4 Lakh tons. Rotary Wagon Tippler can
handle 1200 MT/hr. at the rate of 20 wagons per hour. Receiving Conveyors (4 Nos.) can
handle 1500 MT/hr./stream of two conveyors. Shipping Conveyors (6 Nos.) can handle
4000 MT/hr./stream of three conveyors. Rated capacity of Stackers - 1500 MT/hr. each.

CARGO HANDLING EQUIPMENT

Sl.No.
1
2
3

Equipment
Floating Crane
Mobile Crane
Low Capacity Diesel Fork-Lift Truck

Numbers
1
3
10

Capacity
150 Tons
10 Tons.
3 Tons

10

High Capacity Diesel Fork-Lift Truck

10

Tons

3nos
5 Tons - 5
Nos.
25 Tons - 2
Nos.

Pay loader

Diesel Electric Locomotive

14

3 Tons

PORT CONNECTIVITY

EXTRA-PORT CONNECTIVITY
The Ennore Manali Road Improvement Project (EMRIP) is expected to be

completed in 2 years.
An 18.3-kilometre (11.4 mi) long, 20-metre (66 ft.) wide elevated road project
connecting the port with Maduravoyal is under construction at a cost of 16,550 million.
Upon completion, this will be the country's longest four-way elevated expressway.

INTRA-PORT CONNECTIVITY
The total port roads run to a length of 27.5 km with a minimum width of 6 m

and a maximum width of 26 m.The port is served by the Chennai Beach railway terminus in
the Chennai Suburban Railway Network of the Southern Railway, chiefly handling
suburban trains on the Chennai Beach-Tambaram section of the Chennai Suburban Railway
Network.

PIPELINES
The port is connected to the Chennai Petroleum Corporation's (CPCL) refinery

in Manali via a 30-inch-diameter pipeline.

NATURAL DISASTERS
As a consequence of the tsunami, the port trust is planning to create an artificial

beach from left of the Cooum river (next to the Napier bridge) right up to fishing harbour in
North Chennai covering about 10 km to protect the port from seaside from similar natural
calamities.

LIGHTS AND LIGHTHOUSES

There are both historic and modern lighthouses in and around the port, some of

which have been decommissioned. The port is the location of one of Chennai's earliest
lighthousesthe entrance channel tower. The 24 m (79 ft.) tall tower with a focal plane of
26 m (85 ft.), flashing white, red and green lights, is located north of the port. It is visible
only from around the entrance channel. The second and third lighthouses are located in the
Madras High Court campus near the port.
THE FUTURE

A third box terminal has been approved by the Cabinet Committee on Infrastructure.
This will require investment of US$800 million and will be offered as a buildoperate-transfer project, as part of a 30-year concession. Construction will take
seven years to complete and the deep-water container terminal will have a capacity

of 4 million TEU.
Chennai Port Trust has plans to build a marina along a 200-metre (660 ft.) stretch in
the west quay to berth a dozen yachts. The marina will provide lockers, separate

berths and other facilities to these sailors, who come in small boats.
The Rajiv Gandhi dry port (container freight station) and multi-modal logistics hub
near Sriperumbudur special economic zone (SEZ) is under development at an
estimated cost of 3,800 million, including land cost of 1,001.6 million. Proposed
components include ICD/off-dock CFS, container yard, rail and road connectivity to
national rail and road network; trade Centre, warehouses for containerized cargos

like leather garments, textiles, automotive components and electronic hardware.

A barge handling facility at the Bharathi Dock is being developed at a cost of 250

million. The project is expected to be completed by 2013.

The port is planning to construct a parking facility on an 11-acre stretch in
Thiruvottiyur for container trucks. The port is also investing 500 million to have

more berths exclusively for bunkering.

The port has decided to have a 7.5 MW wind energy farm in Tirunelveli district at an

outlay of 493.1 million.

To reduce congestion at the harbour, which has two bays (two each for entry and two
for exit of containers), the port plans to modernize zero gate and open one more bay
and widen the roads that lead to zero gate and to lay six to eight lanes from the zero
gate to avoid stranding of vehicles.

In December 2011, as part of security measures, the Directorate of Logistics,

Customs and Central Excise planned to get a fixed mega container scanner within
the next few months at a location near the Zero Gate of the port at a cost of 600

million from a U.S.-based company.

The Chennai Port Trust plans to develop a barge handling facility inside the port at a
cost of 260 million in Bharathi Dock through public-private partnership to meet the
increase in demand for bunkering - fuel oil used aboard ships. The need for barge
facility is also due to the increasing vessel movements and vessel size. The proposed
length of the jetty will be three times the length of the present facility. The jetty
could accommodate barges with carrying capacity of 1,000 tons to 3,000 tons. In
addition to bunkering fuel and edible oil, other cargoes that are envisaged to be
handled at the proposed facility include vegetable oil (crude and refined), furnace oil
and molasses.

STORAGE FACILITIES
Transit Shed/over flow shed
Warehouse
Container Freight Station
Open space
Container parking Yard

7 Nos. - 30,693 sq.mts

5 Nos. - 30,138 sq.mts
3 Nos. - 40,644 sq.mts
3,84,611 sq.mts
2,50,600 sq.mts

MISSION

Achieve excellence in Port operations with State-of-the-Art technologies.

Enhance competence and enthuse workforce to maximize customer satisfaction.
Anticipate and adapt to the changing global scenario.
Act as a catalyst for sustained development of the Region.

VISION

To be recognized as a futuristic Port with foresight.

QUALITY POLICY

Provide efficient, prompt, safe and timely services at optimum cost

Ensure quick turn round of vessels by providing facilities for efficient handling of cargo
Maintain total transparency in all our transaction of the and
Continually improve our services to meet the expectations of the port users,
employees and the society

DEPARTMENT OF THE COMPANY:

General Administration Department

Mechanical and Electrical Engineering Department
Civil Engineering Department
Finance Department
Traffic Department
Marine Department.
Vigilance Department
Medical Department
Materials Management

OBEJECTIVES OF THE STUDY

Primary objective
To analyze the financial forecasting through estimating existing data Chennai port trust.
Secondary objective:
To forecast the future expenditure and profit of the company based on the
current financial position of Chennai port trust.
To forecast future working capital of Chennai port trust.
To measure the profitability for the new project based on old project.

NEED OF THE STUDY

NEED FOR STUDY:

The study is conducted to find out the present financial position to analyze
future requirements.
To know the profitability of the income in future.
Study is conducted to find out the operating efficiency of the port.
Need to know the financial strengths and weakness of the port.
Study is needed to know the performance of Chennai port trust.

SCOPE OF THE STUDY

SCOPE OF THE STUDY:

The study will help finance personal to estimate budgeting for the future project
(expansion of port).
Provide way for finding operating working capital for the organization.
Future study is possible.
Its focus is on providing projector view on expansion.
Help in post implementation of the expenditure are reduced.

CHAPTER-2
REVIEW
OF
LITERATURE

REVIEW OF LITERATURE

The financial analyst forecasting literature: International journey of forecasting,

Sundaresh Ramnath, Steve Rock, Philip Shane.
This paper develops taxonomy of research examining the role of financial analyst in
capital markets. The paper builds on the perspectives provided by Schilpper [Schipper,K.
(1991). Analysts forecasts. Accounting Horizons, 5, 105-131] and brown [Brown,l.
(1993).Earnings forecasting research: its implications for capital markets research.
International Journal of forecasting, 9, 295-320].
We categorize papers published since1992, describe the sresearch questions
addressed, and suggest avenues for further research in seven broad areas: (1) Analysts
decision processes;(2) the nature of analysts expertise and the distributions of earnings
forecasts; (3) the information content of analyst research; (4) analyst and market efficiency;
(5) analysts incentives and behavioral biases; (6) the effects of the institutional and
regulatory environment (including cross-country comparisons); and (7) research design
issues.
An Analytic network process Model for financial crisis forecasting:
international journal of forecasting, Micheal P. Niemira, Thomas L. Satty.

We discuss and develop an imbalance crisis turning point model to forecast the
likelihood of a crisis based on an Analytic Network process framework. The ANP is a
general theory of relative measurement used to derive composite priority ratio scales from
individual ratio scales that represent relative influence of factors that interact with respect to
control criteria. Through its super matrix, which is composed of matrices of column
priorities, the ANP framework captures the outcome of dependence and feedback within and
between clusters of explanatory factors.
We argue that our framework is more flexible and is more comprehensive than
traditional methods and previous models. We illustrate hoe the ANP model would be
implemented for forecasting the probability of crises.

An Analytic Network Process Model for Financial Crisis Forecasting Original

Research Article International Journal Of Forecasting, Volume 20, Issue 4, OctoberDecember 2004, Pages 573-587 Micheal P. Niemira, Thomas L. Saaty.
Forecasts and projections have assumed extraordinary significance in U.S. business. The
release of corporate managers' earnings forecasts has become common. Management
forecasts have become an important source of information for financial analysts and
investors. Stock prices show significant movements after the release of information that
shows earnings will be higher or lower than current expectations
Financial forecasts are considered general-purpose financial statements that may be
distributed to any interested party, whereas financial projections are considered limitedpurpose financial statements only to be used by the responsible party who prepared the
statements or by knowledgeable third parties. In both forecasts and prospective financial
statement opinions, a warning must be included in the opinion that the prospective results
may not be achieved.
The American Institute of Certified Public Accountants (AICPA) Hirst, D. Eric,
Koonce, Lisa, and Miller, Jeffrey. (1999). "The Joint Effect of Management's Prior
Forecast Accuracy and the Form of Its Financial Forecasts on Investor Judgment."
Journal of Accounting Research 37 (Supplement): 101-124.
Financial forecasts and financial projections are prospective financial statements that
present an entity's expected financial position, results of operations, and cash flows in future

periods under two different conditions. Financial forecasts assume that the entity will
continue to function in the manner in which it is currently functioning. For example, if the
entity is a retail store chain, that it will continue to do business in the manner in which it is
currently engaged. The financial forecast presents the predicted results for the next year.
Financial projections, on the other hand, make one or more hypothetical assumptions about
an entity's future course of action.
AICPA Professional Standards. Attestation Standards, Financial Forecasts and
Projections. (1999). New York: American Institute of Certified Public Accountants
(published annually).

CHAPTER-3
Research
Methodology

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:

Research methodology is a way of systematically solving the research problem.

Research methodology deals with the research design used and methods used to present the
study.

The methods by the researcher for completing the study are called research

methodology. In other words, research methodology is simply the plan of action for a
research which explains in detail how data is to be collected, analyzed and interpreted.
RESEARCH DESIGN
Fundamental to any study is the research design. The research design gives the
conceptual structure within the study is conducted. In constitute the blue print for the
collection, measurement and analysis of data.
The research design of this study is analytical research. The analytical research
means the research has to use facts or information already available, and analyze these to
make a critical evaluation of the material.
DESCRIPTIVE RESEARCH DESIGN:
The type of research design used in the project was Descriptive research because; it
helps to describe a particular situation prevailing within a company. Careful design of the
descriptive studies was necessary to ensure the complete interpretation of the situation and
to ensure minimum bias in the collection of data.
DATA COLLECTION:

Data refers to information or facts. It includes numerical figures, non-numerical

figures, and descriptive facts and qualitative and quantitative information. The task of data
collection begins after a research problem has been defined and research plan has been
decided.
SOURCE OF DATA
It is necessary to collect accurate data. The data collected here is secondary data.

SECONDARY DATA:
Secondary data means data that are already available or already been collected and
analyzed by someone else. When the researcher utilises secondary data, then he has to look
into various sources from where he can obtain them.
o The data collected from the annual reports, maintained by the concern for the
past 6 years 2007-2012.
o Data are collected from website.
o Data are collected from Books and Journals pertaining to the topic.
PERIOD OF STUDY
The period was carried out for a period of January 2013-May 2013.
TOOLS AND TECHNIQUES IN THE ANALYSIS
The collected data were analyzed with the help of tables and charts technique are used

Ratios
Return on investment or overall profitability ratio
Net profit ratio
Expenses ration
Operating profit ratio
Current ratio
Liquid ratio

 Cash position ratio

Working capital turnover ratio
Fixed asset turnover ratio
Capital turnover ratio

Trend analysis

Capital budgeting

Comparative balance sheet

RATIO:
Ratio analysis is an age old technique of financial analysis. The ratio is a
mathematical relationship between two or more items taken from the financial statements.
Ratio analysis is the process of comparison and interpretation of ratios and using them as
basis for the future projections. Ratio analysis is helpful of management and outsiders to
diagnose the financial health of a business concern. It helps is measuring the profitability,
solvency, and activity of a firm.

1. RETURN ON INVESTMENT:
Return on investment is used to measure the operational and managerial
efficiency. A comparison of ROI with that of similar firms, with that of industry and with
past ratio will be helpful in determining how efficiently the long-term funds of owners and
creditors being put into use. Return on investment can be computed for measuring the
return for various purposes.
Formula:
Profit before interest and tax
RETURN ON INVESTMENT = ------------------------------------------- *100
Capital employed
Capital employed = fixed asset + net current asset

2. NET PROFIT RATIO:

This ratio is also called net profit sales ratio. It is a measure of
managements efficiency in operating the business successfully from the owners point of
view. It indicates the return on shareholders investments.
Formula:
Net profit after tax
NET PROFIT RATIO =--------------------------------------*100
Net sales

3. ADMINISTRATIVE EXPENSES RATIO:

They indicate the efficiency with the business a whole functions. It is better
the concern to known how it is able to save waste over expenditure in respect of different
items of expenses.
Formula:
Administrative expenses
ADMINISTRATIVE EXPENSES RATIO =-------------------------------------*100
Net sales

4. OPERATING PROFIT RATIO:

It is the ratio of profit made from operating sources to the sales, usually
shown as a percentage. It shows the operational efficiency of the firm and is a measure of
the managements efficiency in running the routine operations of the firm.
Formula:
Operating profit
OPERATING PROFIT RATIO = --------------------------------*100
Sales
Operating profit = net profit + non operating expenses non operating income

5. CURRENT RATIO:
The ratio of current assets to current liabilities is called current ratio. In
order to measure the short-term liquidity or solvency of a concern, comparison of current
assets and current liabilities is inevitable. Current ratio indicates the ability of a concern to
meet its current obligations as and when they are due for payment.
Formula:
Current assets
CURRENT RATIO =----------------------------------Current liabilities
6. LIQUID RATIO:
This ratio is also called quick or acid test ratio. It is calculated by comparing
the quick assets with current liabilities. Liquid assets refer to assets which are quickly
convertible into cash. Current assets other than stock and prepaid expenses are considered
as quick assets.
Formula:

Liquid assets
LIQUID RATIO=---------------------------------Current liabilities

7. CASH POSITION RATIO:

This ratio is also called Absolute liquidity ratio or super quick ratio. This
is a variation of quick ratio. This ratio is calculated when liquidity is highly restricted in
terms of cash and cash equivalents. This ratio measures liquidity in terms of cash and near
cash items and short-term current liabilities.
Formula:
Cash and bank balance
CASH POSITION RATIO = ---------------------------------------Current liabilities

8. WORKING CAPITAL TURNOVER RATIO:

Working capital ratio measures the effective utilisation of working capital. It
also measures the smooth running of business or otherwise, The ratio establishes
relationship between cost of sales and working capital.
Formula:
Sales
WORKING CAPITAL TURNOVER RATIO =-------------------------------------Net working capital

9. FIXED ASSETS TURNOVER RATIO:

This ratio determines efficiency of utilisation of fixed assets and profitability
of a business: concern. Higher the ratio, more is the efficiency in utilisation of fixed assets.
Formula:
Sales
FIXED ASSETS TURNOVER RATIO =----------------------------------------Net fixed assets
CAPITAL BUDGETING:
Capital budgeting is considered as the process of making investment decisions on capital
expenditure. Capital expenditure is that the expenditure the benefits of which are expected
to be received over a period exceeding one year.
Capital budgeting is the process most companies use to authorize capital spending on
long-term projects and on other projects requiring significant investments of capital.
Because capital is usually limited in its availability, capital projects are individually
evaluated using both quantitative analysis and qualitative information. Most capital
budgeting analysis uses cash inflows and cash outflows rather than net income calculated
using the accrual basis.

1. PAYBACK TECHNIQUE
The payback measures the length of time it takes a company to recover in cash its
initial investment. This concept can also be explained as the length of time it takes the
project to generate cash equal to the investment and pay the company back. It is calculated
by dividing the capital investment by the net annual cash flow. If the net annual cash flow is
not expected to be the same, the average of the net annual cash flows may be used.
Formula:
Capital investment
CASH PAYBACK PERIOD =--------------------------------------------Average annual net cash flow

2. NET PRESENT VALUE METHOD (NPV):

Net present value method is one of the discounted cash flow methods of capital
budgeting. It recognizes the time value of money and that cash flow arising at different
period of time differ in value and are not comparable unless their equivalent present values
are found. The net present value of all inflows and outflows of cash occurring during the
entire life of a project is determined by discounting these flows by the firms cost of capital
or some other pre-determined rate.

3. PROFITABILITY INDEX (PI):

The profitability index is also called benefit cost ratio. Though this is treated as
a separate method due to the importance of results obtained by its usages, it is only a
refinement of the N.P.V. method. It shows the relationship between P.V of cash inflow and
P.V of cash outflow.
Formula:
Present value of cash inflows
PROFITABILITY INDEX (PI) =--------------------------------------------Present value of cash outflows

4. INTERNAL RATE OF RETURN (IRR) METHOD:

The internal rate of return also uses the present value concepts. The internal rate of
return (IRR) determines the interest yield of the proposed capital project at which the net
present value equals zero, which is where the present value of the net cash inflows equals
the investment. If the IRR is greater than the company's required rate of return, the project
may be accepted. To determine the internal rate of return requires two steps. First, the
internal rate of return factor is calculated by dividing the proposed capital investment
amount by the net annual cash inflow. Then, the factor is found in the Present Value of an
Annuity of 1 table using the service life of the project for the number of periods. The
discount rate that the factor is the closest to is the internal rate of return.

Formula:
Positive NPV
INTERNAL RATE OF RETURN=Lower rate+--------------------------------*Difference in rate

Difference in calculated PV

5. ANNUAL RATE OF RETURN (ARR) METHOD:

The three previous capital budgeting methods were based on cash flows. The
annual rate of return uses accrual-based net income to calculate a project's expected
profitability. The annual rate of return is compared to the company's required rate of return.
If the annual rate of return is greater than the required rate of return, the project may be
accepted. The higher the rate of return, the higher the project would be ranked.
The annual rate of return is a percentage calculated by dividing the expected annual
net income by the average investment. Average investment is usually calculated by adding
the beginning and ending project book values and dividing by two.
Formula:
Estimated net annual income
ANNUAL RATE OF RETURN =

-------------------------------------------

Average investment

COMPARATIVE BALANCE SHEET:

Comparative balance sheet is a balance sheet that provides the amount of
changes in assets, liabilities, and equities from the beginning to the end of the period. A
statement which compares financial data from different periods of time. The comparative
statement lines up a section of the income statement, balance sheet or cash flow statement
with its corresponding section from a previous period. It can also be used to compare
financial data from different companies over time, thus revealing the trend in the financials.

TREND ANALYSIS:
An aspect of technical analysis that tries to predict the future movement of a stock
based on past data. Trend analysis is based on the idea that what has happened in the past
gives traders an idea of what will happen in the future.

LIMITATIONS OF THE STUDY

LIMITATIONS OF THE STUDY

In depth analysis data is not possible due to time constraint.
The financial data is dynamic in nature, hence analysis findings,
recommendations are confirmed to the time period of study.
The study is confirmed to the particular unit.
The study is conducted and concluded considering the prevailing condition,
which may be subjected to change in future.
The analysis is based on the previous year financial statements which is not an
appropriate tool to predict the future requirements.

CHAPTER-4
DATA ANALYSIS

DATA ANALYSIS AND INTERPRETATION

RATIO ANALYSIS:
TABLE: 4.1
NET PROFIT RATIO FOR THE YEAR 2006-2007 TO 2010-2011

YEAR

NET PROFIT

SALES

N.P.R

2007-2008

3,024,893,217

6,280,944,734

48.16

2008-2009

3,154,273,453

6,714,938,670

46.9

2009-2010

1,557,287,118

7,183,504,766

21.67

2010-2011

1,715,203,650

6,839,113,177

25.07

2011-2012

983,141,834

6,271,064,417

16.67

CHART: 4.1

N.P.R
N.P.R
48.16

46.9
25.07

21.67

16.67

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the net profit ratio values for the study period. The net
profit ratio was increase and decrease trend. The range of net profit ratio was decreasing
from 48.16 to 21.67 for the year 2008 to 2010 and increase from 21.67 to 25.07 for the year
2010-2012.

TABLE: 4.2
OPERATING PROFIT RATIO FOR THE YEAR 2007-2008 TO 20112012
YEAR

OPERATING

SALES

O.P.R

PROFIT
2007-2008

4,312,593,217

6,280,944,737

68.7

2008-2009

2,666,573,453

6,714,938,670

39.7

2009-2010

2,111,538,701

7,183,504,766

29.4

2010-2011

680,642,386

6,839,113,177

9.9

2011-2012

221,302,458

6,271,064,417

3.53

CHART: 4.2

O.P.R
O.P.R
68.7
39.7

29.4
9.9

3.53

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the operating profit ratio values for the study
period. The operating profit ratio was decrease trend. The range of operating profit
ratio was decreasing from 68.7 to 3.53 for the year 2008 to 2012.

TABLE: 4.3
RETURN ON INVESTMENT RATIO FOR THE YEAR 2007-2008 TO
2011-2012
YEAR

OPERAING

CAPITAL

PROFIT

EMPLOYED

R.O.I

2007-2008

4,312,593,217

12,249,721,384

35.2

2008-2009

2,666,573,453

14,963,276,968

17.8

2009-2010

2,111,538,701

15,002,257,723

14.1

2010-2011

680,642,386

14,550,606,761

4.7

2011-2012

221,302,458

793,828,324

27.9

CHART: 4.3

R.O.I
R.O.I
35.2
27.9
17.8

14.1
4.7

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the return on investment ratio values for the study
period. The return on investment ratio was increase and decrease trend. The range of
return on investment ratio was decrease from 35.2 to 4.7 for the year 2008-2011 and
increased from 4.7 to 27.9 for the year 2011-2012.

TABLE: 4.4
ADMINISTRATIVE EXPENSES RATIO FOR THE YEAR 2007-2008
TO 2011-2012

YEAR

ADMINISTRATIVE

NET SALES

EXPENSES

ADMINISTRATIVE
EXPENSES RATIO

2007-2008

1,675,013,638

6,280,944,737

26.7

2008-2009

1,892,976,197

6,714,938,670

28.2

2009-2010

2,250,386,335

7,183,504,766

31.3

2010-2011

2,418,796,663

6,839,113,177

35.4

2011-2012

2,446,325,238

6,271,064,417

39

CHART: 4.4

ADMINISTRATIVE EXPENSES RATIO

ADMINISTRATIVE EXPENSES RATIO

26.7

35.37

31.3

28.2

39

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the Administrative expenses ratio values for the
study period. The Administrative expenses ratio was increase trend. The range of
Administrative expenses ratio was increasing from 26.7 to 39 for the year 2008-2012.

TABLE: 4.5
CURRENT RATIO FOR THE YEAR 2007-2008 TO 2011-2012

YEAR

CURRENT

CURRENT

ASSETS

LIABILITIES

CURRENT RATIO

2007-2008

24,056,551,232

17,774,062,682

1.35

2008-2009

27,927,779,009

19,385,016,177

1.44

2009-2010

30,085,526,464

21,856,248,542

1.37

2010-2011

28,826,634,667

21,808,983,421

1.32

2011-2012

23,776,967,828

23,283,156,473

1.02

CHART: 4.5

CURRENT RATIO
CURRENT RATIO
1.44

1.35

1.37

1.32
1.02

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the current ratio values for the study period. The
current ratio was increase and decrease trend. The range of current ratio was increased from
1.35 to 1.44 for the year 2008-2009 and decreased from 1.44 to 1.02 for the year 2009-2012.

TABLE: 4.6
LIQUID RATIO FOR THE YEAR 2007-2008 TO 2011-2012

YEAR

LIQUID ASSETS

CURRENT

LIQUID RATIO

LIABILITIES
2007-2008

23,922,743,975

17,774,062,682

1.35

2008-2009

27,797,047,071

19,385,016,177

1.43

2009-2010

29,930,494,386

21,856,248,542

1.37

2010-2011

28,654,860,132

21,808,983,421

1.31

2011-2012

23,566,027,259

23,283,156,473

1.01

CHART: 4.6

LIQUID RATIO
LIQUID RATIO
1.43

1.35

1.37

1.31
1.01

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

INFERENCE:
The above table reveals that the liquid ratio values for the study period. The liquid
ratio was increase and decrease trend. The range of liquid ratio was increased from 1.35 to
1.43 for the year 2008-2009 and decreased from 1.43 to 1.01 for the year 2009-2012.

TABLE: 4.7
CASH POSITION RATIO FOR THE YEAR 2007-2008 TO 2011-2012

YEAR

CASH

CURRENT

CASH

LIABILITIES

RATIO

POSITION

2007-2008

17,843,957,343

17,774,062,682

1.00

2008-2009

19,310,471,167

19,385,016,177

1.00

2009-2010

21,346,726,375

21,856,248,542

2010-2011

17,898,770,050

21,808,983,421

0.82

2011-2012

14,525,522,046

23,283,156,473

0.62

CHART: 4.7

0.98

CASH POSITION RATIO

1

CASH POSITION RATIO

0.98
0.82
0.62

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the cash position ratio values for the study period.
The cash position ratio was decrease trend. The range of cash position ratio was decreasing
from 1.00 to 0.62 for the year 2008-20112.

TABLE: 4.8
WORKING CAPITAL TURNOVER RATIO FOR THE YEAR 2007-2008
TO 2011-2012

YEAR

SALES

NET

WORKING W.CTURNOVER

CAPITAL

RATIO

2007-2008

6,280,944,734

6,28,24,88,550

0.99

2008-2009

6,714,938,670

8,54,27,62,832

0.78

2009-2010

7,183,504,766

8,22,92,77,922

0.87

2010-2011

6,839,113,177

7,01,76,51,246

0.97

2011-2012

6,271,064,417

49,38,11,355

12.69

CHART: 4.8

W.C. TURNOVER RATIO

W.CTURNOVER RATIO
12.69

0.99

0.87

0.78

0.97

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the working capital turnover ratio values for the
study period. The working capital turnover ratio was increase and decrease trend. The range
working capital turnover ratio was decreased from 0.99 to 0.78 for the year 2008-2009 and
increased from 0.78 to 12.69 for the year 2009-2012.

TABLE: 4.9
FIXED ASSETS TURNOVER RATIO FOR THE YEAR 2007-2008 TO
2011-2012

YEAR

SALES

NET

FIXED F.A.TURNOVER

ASSETS

RATIO

2007-2008

6,280,944,734

5,967,232,834

1.052

2008-2009

6,714,938,670

6,420,514,136

1.045

2009-2010

7,183,504,766

6,772,979,801

1.060

2010-2011

6,839,113,177

7,532,955,515

0.907

2011-2012

6,271,064,417

7,444,475,969

0.842

CHART: 4.9

F.A.TURNOVER RATIO
F.A.TURNOVER RATIO
1.05

1.06

1.04

0.91

0.84

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

INFERENCE:
The above table reveals that the fixed assets turnover ratio values for the study
period. The fixed assets turnover ratio was decrease trend. The range of fixed assets turnover
ratio was decreasing from 1.052 to 0.842 for the year 2008-2012.

TABLE: 4.10
CAPITAL TURNOVER RATIO FOR THE YEAR 2007-2008 TO 20112012
CAPITAL CAPITAL
YEAR

EMPLOYED

SALES

TURNOVER
RATIO

2007-2008

6,280,944,734

12,249,721,384

0.513

2008-2009

6,714,938,670

14,963,276,968

0.449

2009-2010

7,183,504,766

15,002,257,723

0.479

2010-2011

6,839,113,177

14,550,606,761

0.470

2011-2012

6,271,064,417

793,828,324

7.899

CHART: 4.10

CAPITAL TURNOVER RATIO

CAPITAL TURNOVER RATIO
7.9

0.51

0.45

0.48

0.47

INFERENCE:
The above table reveals that the capital turnover ratio values for the study period.
The capital turnover ratio was increase and decrease trend. The range of capital turnover
ratio was decreasing from 0.513 to 0.449 for the year 2008-2009, increased from 0.449 to
0.47 for the year 2009-2011 and increased from 0.47 to 7.899 for the year 2011-2012.
FINANCIAL STATEMENT FOR ONE CONTAINER HANDLED FOR THE YEAR
ENDING 2011-2012.

INCOME
CONTAINER CHARGES
Import wharf age containerized cargo
Fcl container
Empty container
Containerized cargo
Fcl container
Empty container
Royalty-m/s CCTPL
Upfront premium
Revenue share
Storage import empty
Storage import loaded
PORT & DOCK CHARGES
Berth hire charges
Berth hire charges 2nd C.T
Port dues on vessels C.T

For 200.76 lakh

containers
2011-2012
(in lakhs)

For 4 Million
containers
2011-2012
(in lakhs)

0.03
0.21
0.27
0.30
3.62
0.08
11,655.30
33.33
6,597.03
0.05
7.98

597.73
4,185.10
5,379.56
5,977.29
72,125.92
1,593.94
232,203,626.22
664,076.51
131,441,123.73
996.21
158,995.82

677.48
296.12
1,126.52

13,498,306.44
5,899,980.08
22,445,108.59

Port dues on vessels 2nd C.T

Pilot age C.T
Pilot age 2ND C.T
RAILWAYS
Local haulage charges C.T
ESTATE RENTALS
Lease rental income M/S CCTPL
Annual land lease 2ND C.T
Annual way lease 2ND C.T
TOTAL
EXPENDITURE
Container handling establishment
Depreciation
Separation amount payable to M/S CCTPL
TOTAL
PROFIT BEFORE TAX
LESS: provision for tax
PROFIT AFTER TAX

468.18
2,410.44
905.40

9,328,153.02
48,026,300.06
18,039,450.09

113.74

2,266,188.48

2.51
767.94
0.13
25,065.66

50,009.96
15,300,657.50
2,590.16
499,415,421.40

37.06
150.42
37.06
225.54
24,841.12
8,361.52
16,479.60

738,395.10
2,997,011.36
738,395.10
4,473,799.56
494,941,621.84
166,597,349.91
328,344,271.93

ESTIMATION COSTS FOR EXPANSION OF MEGA CONTAINER TERMINAL

TABLE-5.11
MEGA CONTAINER
TERMINAL
PLAN FOR
CONSTRUCTION

CHENNAI
INTERNATIONAL
TERMINAL

BOT

BOT

COST OF PROJECT

3686 Cr.

Rs 495 crore

CONTRIPUTION OF
CHENNAI PORT TRUST

561 Cr.

CONTRIPUTION OF
PRIVATE COMPANY

3125 Cr.

495 CR.

30 YEARS

30 YEARS

CONSTRUCTION PERIOD

2020

2010

CAPACITY OF MEGA
CONTAINER TERMINAL

20 MILLION TEU'S p.a

1.5 million TEUs

REQUEST FOR

FINISHED

LEASE PERIOD

STAGE OF TERMINAL

PROPOSAL
ASSUMED BASED ON
OLD TERMINAL

45.801 per cent

15,000-TEU vessels

8,000-TEU vessels

QUAY LENGTH

2 km

832 m

NO. OF BERTHS

4(ESTIMATED)

300HA

35HA

REVENUE SHARE
CAPACITY OF VESSELS
HANDLDING

YARD SPACE

TABLE: 4.11
TREND ANALYSIS

(In Lakhs)
YEAR(X
)
2008
2009
2010
2011
2012

x=(X2010)
-2
-1
0
1
2
0

x2
4
1
0
1
4
10

A
B
YEAR

BX

PROFIT
AFTER TAX
(Y)
xY
BX
Y=A+BX
33,241.73 -66,483.47
-5,952.27
30,554.55
31,625.60 -31,625.60
-2,976.13
33,530.69
33,741.97
0.00
0.00
36,506.82
39,979.20
39,979.20
2,976.13
39,482.95
43,945.60
87,891.20
5,952.27
42,459.09
1,82,534.11
29,761.33

36506.82133
2976.133333
Y=A+BX

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

3
4
5
6
7
8
9
10
11
12
13
14

8,928.40
11,904.53
14,880.67
17,856.80
20,832.93
23,809.07
26,785.20
29,761.33
32,737.47
35,713.60
38,689.73
41,665.87

45,435.22
48,411.35
51,387.49
54,363.62
57,339.75
60,315.89
63,292.02
66,268.15
69,244.29
72,220.42
75,196.55
78,172.69

INFERENCE:
The above table reveals that the trend values for the study period. The trend was
increase trend. The range trend was increasing from 45,435.22 to 78,172.69 for the year
2013-2017

TABLE: 4.12
PAYBACK PERIOD

Payback period =

Original Investment
Annual Cash Inflow

The selection of the project to base on the earning capacity of a project here the fin
managers aim is to know how soon the original investments are recovered he has to
compare.

YEAR
1
2
3
4
5
6

PROFIT
AFTER TAX
45,435.22
48,411.35
51,387.49
54,363.62
57,339.75
60,315.89

CUMULATIVE
INFLOW

CASH
45,435.22
93,846.58
1,45,234.06
1,99,597.69
2,56,937.44
3,17,253.33

7
8
9
10

63,292.02
66,268.15
69,244.29
72,220.42

PAY BACK PERIOD

3,80,545.35
4,46,813.50
5,16,057.79
5,88,278.21

INITIAL INVESTMENT
NET CASH FLOW

8.13 Years

INFERENCE:
The Payback Period for the project is less than the cut off rate of capital, hence the
project is accepted. The payback period for the project is likely to be 8years and 1 month.

TABLE: 4.13
ACCOUNTING RATE OF RETURN METHOD
ARR is the Capital investment proposals are judged on the basis of their relative
profitability accounting Concepts, over the entire economic life of the projects& then the
average yield is calculated. Such a rate is termed as ARR. It may be calculated according to
any one of the methods.
ARR = Annual Average Earnings x100
Original Investment
The term average annual net earnings are the average of earnings (after depreciation
& tax) over the whole of the economic life of the project. The amount of average investment
can be calculated according to any of the following methods.

original investment
2

Annual Average Earnings

= 930797953777778

30
= Rs.3102.66 Lakhs
Original Investment

= 5610000000
2

= Rs.2805, 000,000 lakhs

ARR =

930797953777778 *100
2805000000

0.033%

INFERENCE:
Normally business enterprises fix a minimum rate any project expected to give a
return below this rate will be rejected. As the firm fixes the rate of return as 0.30% the
project is likely to be accepted.

TABLE: 4.14
NET PRESENT VALUE METHOD

NPV

R1

(1+k) 1

R2

R3

(1+k) 1

(1+k) 1

Rn
(1+k) 1

In case of non conventional cash inflows the equation is

R= Cash inflows at diff time periods
K= cost of capital or cut off rate
Z= cash outflows at different time periods.

CASH
YEAR FLOW

DEP

PBT

PAT

PAT+DEP

DISCOUNT PRESENT
FACTOR
VALUE

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

45,435.22
48,411.35
51,387.49
54,363.62
57,339.75
60,315.89
63,292.02
66,268.15
69,244.29
72,220.42

401.1
401.1
401.1
401.1
401.1
401.1
401.1
401.1
401.1
401.1

45,034.10
48,010.23
50,986.37
53,962.50
56,938.63
59,914.77
62,890.90
65,867.03
68,843.17
71,819.30

15158.47851
16160.24499
17162.01147
18163.77795
19165.54443
20167.31091
21169.07739
22170.84387
23172.61035
24174.37683

15559.59851
16561.36499
17563.13147
18564.89795
19566.66443
20568.43091
21570.19739
22571.96387
23573.73035
24575.49683

0.826
0.683
0.564
0.467
0.386
0.319
0.263
0.218
0.18
0.149

PV OF CASH INFLOW

12852.22
11311.41
9905.61
8669.81
7552.73
6561.33
5672.96
4920.69
4243.27
3661.75
75351.786

Tax @33.66%
PV Factor @10%
PV OF CASH INFLOW
LESS: INITIAL INVESTMENT
NET PRESENT VALUE

7535178666
5610000000
1925178666

INFERENCE:
In case the NPV is positive (P.V of cash inflows is more than PV of cash outflows)
the project should be accepted However if the NPV is negative (PV of cash inflow is less
than the present value of cash outflows) the accept/reject criterion can be put as follows
NPV> Zero accept the proposal
NPV< Zero reject proposal
PV> C accept proposal
PV- Present value of cash inflow &
C- Present value of cash out flow (or) outlays
Hence NPV>Zero the project proposal is accepted.

TABLE: 4.15
INTERNAL RATE OF RETURN
YEAR

PAT

1
2
3
4
5
6
7
8
9
10

45,435.22
48,411.35
51,387.49
54,363.62
57,339.75
60,315.89
63,292.02
66,268.15
69,244.29
72,220.42

PV FACTOR AT
20%
21%
0.833
0.826
0.694
0.683
0.579
0.564
0.482
0.467
0.402
0.386
0.335
0.319
0.279
0.263
0.233
0.218
0.194
0.18
0.162
0.149
NET
PRESENT
VALUE

TOTAL PV AT
20%
21%
37847.54 37529.4928
33597.48 33064.9552
29753.36 28982.5432
26203.27 25387.8112
23050.58 22133.1453
20205.82 19240.7683
17658.47 16645.8016
15440.48 14446.4577
13433.39 12463.9718
11699.71 10760.8428
228890.1

220655.79

FACTOR

0.12347

INTERNAL RATE OF
RETURN
=

LOWER RATE+NPV@LOWER RATE

NPV(LOWER RATE-HIGHER RATE)

20%

27.9971243

228890.1
228890.0385-220655.79

*1

INFERENCE:
The Internal rate of return is 27%, which is assumed to be a great return for the
amount invested. Therefore the amount invested will yield a great profit for the money
invested.

TABLE: 4.16
DISCOUNTED PAY BACK PERIOD
Excess Present value Index/ Benefit cost ratio
This is a refinement of the net present value method. Instead of working cut the NPV
a PV index is found out of PV of cash inflows & the total of the PV of future cash outflows.

DISCOUNTED PAY BACK PERIOD

(in lakhs)
DISCOUNTED

YEA
R

COST OF CAPITAL
@ 10%

2013
2014
2015
2016

0.909
0.826
0.751
0.683

CASH
CASH INFLOW
45,435.22
48,411.35
51,387.49
54,363.62

INFLOW
41300.61
39987.77
38592
37130.35

2017

0.61
57,339.75
TOTAL DISCOUNTED CASH INFLOW

35607.98
192618.73

EXCESS PRESENT VALUE INDEX

=

Discounted Cash Inflows x100

Cash Outflow

1926187397 x100
5610000000

35.33%

TABLE: 4.17
PROFITABLITY INDEX
It is the ratio of present value of cash inflows, at the required rate of return, to the
initial cash outflow of the investment proposal. PI is the ratio of present value of the future
cash benefits at the required rates of return at the initial cash outflow of the investment.
PI

PV of cash inflows
PV of cash outlay

753517866

1.96%

3830736204
Accept / Reject criteria
PI is positive (P.V of cash inflows is more than PV of cash outflows) the project
should be accepted However if the PI is negative (PV of cash inflow is less than the present
value of cash outflows) the accept/reject criterion can be put as follows
PI> Zero accept the proposal

PI< Zero reject proposal

Hence PI>Zero the project is accepted.

TABLE: 4.18
TREND ANALYSIS FOR PROFIT
YEAR
(X)
2008
2009
2010
2011
2012

x=X2010
-2
-1
0
1
2

X2
4
1
0
1
4

total

10

A
B

PROFIT
AFTER TAX(Y) XY
Bx
Y=a+Bx
3,02,48,93,217 -6049786434
1104514514
3191474368
3,15,42,73,453 -3154273453 552257256.9
2639217111
1,55,72,87,118
0
0
2086959854
1,71,52,03,650 1715203650 -552257256.9
1534702598
98,31,41,834 1966283668 -1104514514 982445340.6
10,43,47,99,272

-5522572569

2086959854
-552257256.9

YEAR
2013
2014
2015
2016

X
3
4
5
6

BX
Y=A+BX
-1656771771
430188083.7
-2209029028
-122069173.2
-2761286285
-674326430.1
-3313543541
-1226583687

2017

-3865800798

-1778840944

TREND FOR PROFIT

YEAR

PROFIT

430188083.7
2013
1

2014
2
-122069173.2

2015
3

2016
4

2017
5

-674326430.1
-1226583687
-1778840944

INFERENCE:
The above table reveals that the trend for profit values for the study period. The
trend for profit was decrease trend. The range trend for profit was decreasing from
430188083.7 to -1778840944 for the year 2013-2017.

TABLE: 4.19
TREND ANALYSIS FOR EXPENDITURE
YEAR
(X)
2008
2009
2010
2011

x=X2010
-2
-1
0
1

2012

EXPENDITUR
X2 E (Y)
XY
Bx
4
4,59,14,63,110 -9182926220 -1878166471
1
5,86,77,79,347 -5867779347 -939083235.5
0
6,91,99,21,945
0
0
1
8,07,69,95,220 8076995220 939083235.5
1636454270
4
8,18,22,71,351
2
1878166471

TOTAL
A
B
YEA
R
2013
2014

10

33,63,84,30,973

9390832355

6727686195
939083235.5

X
3
4

BX
Y=A+BX
2817249707
9544935901
3756332942
10484019137

Y=a+bX
4849519724
5788602959
6727686195
7666769430
8605852666

2015
2016
2017

5
6
7

4695416178
5634499413
6573582649

11423102372
12362185608
13301268843

TREND ANLYSIS FOR EXPENDITURE

YEAR
10484019137
2

9544935901
1

2013

2014

EXPENDITURE
3
11423102372

4
12362185608

2015

5
13301268843

2016

2017

INFERENCE:
The above table reveals that the trend for expenditure values for the study period.
The trend for expenditure was increase trend. The range trend for expenditure was
increasing from 9,54,49,35,901 to 13,30,12,68,843 for the year 2013-2017

TABLE: 4.20
TREND ANALYSIS FOR WORKING CAPITAL
YEAR
(X)
2008
2009
2010
2011
2012

x=X2010
-2
-1
0
1
2

TOTAL

X2
4
1
0
1
4
10

A
B

6113198381
-1310246598

YEA
R

BX

WORKING
CAPITAL (Y)
XY
Bx
Y=a+bX
6,28,24,88,550 -12564977100 2620493195 8733691576
8,54,27,62,832
-8542762832 1310246598 7423444979
8,22,92,77,922
0
0 6113198381
7,01,76,51,246
7017651246 -1310246598 4802951783
49,38,11,355
987622710 -2620493195 3492705186
30,56,59,91,905

-13102465976

Y=A+BX

2013
2014
2015
2016
2017

3
4
5
6
7

-3930739793
-5240986390
-1310246593
-7861479586
-9171726183

2182458588
872211990.6
4802951788
-1748281205
-3058527802

TREND ANALYSIS FOR WORKING CAPITAL

YEAR

WORKING CAPITAL

4802951788
3
2182458588
1
1

2013

2
872211990.6
2014

2015

2016
-1748281205
4

2017

5
-3058527802

INFERENCE:
The above table reveals that the trend for working capital values for the study period.
The trend for working capital was decrease trend. The range trend for working capital was
decreasing from 2182458588 to -305852780 for the year 2013-2017.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2007-2008

S.N
O
1

PARTICULARS
reserves and surplus
capital reserve
revenue reserve
statutory reserves

Yr 2007

Yr 2008

INC/DEC

PERCENT
-AGE

8222294987
4692537359
4596225752

8559129960
5045221571
6996225752

336834973
352684212
2400000000

4.096
7.516
52.217

loan funds
government loans

186421550

161366250

-25055300

-13.440

current liabilities
Total

16737931250
34435410898

17774062682
38536006215

1036131432
4100595317

6.190
11.908

5857689201
8010124593

5967232834
8512222149

109543633
502097556

1.870
6.268

fixed assets
Investments
current assets

interest accrued on invt

stores material
sundry debtors
cash and bank balance
loans and advances

820484964
122016239
861567672
14973764173
3789764056

1090580813
133807257
1284074074
17843957343
3704131745

270095849
11791018
422506402
2870193170
-85632311

32.919
9.663
49.039
19.168
-2.259

Total

34435410898

38536006215

4100595317

11.908

INFERENCE:
The above table reveals that the comparative balance sheets for the year 20072008. The total assets and total liabilities values were increased by 11.9%

COMPARITIVE BALANCE SHEET FOR THE YEAR 2008-2009

S.N
O
1

PARTICULARS
reserves and surplus
capital reserve
revenue reserve
Statutory reserves
loan funds
government loans

Yr 2008

9308309161
6293098253
8216225752

749179201
1247876682
1220000000

8.048
19.829
14.848

161366250

136310950

-25055300

-18.381

19385016177

1610953495

8.310

43338960293

4802954078

11.082

6420514136
8990667148

453281302
478444999

7.059
5.321

Total
fixed assets
Investments

5967232834
8512222149

current assets

INC/DEC

8559129960
5045221571
6996225752

1777406268
2
3853600621
5

current liabilities

Yr 2009

PERCEN
T
-AGE

interest accrued on invt

stores material
sundry debtors

1220821334
130731938
3468934225

130240521
-3075319
2184860151

10.668
-2.352
62.983

cash and bank balance

loans and advances

1090580813
133807257
1284074074
1784395734
3
3704131745

19310471167
3796820345

1466513824
92688600

7.594
2.441

Total

3853600621
5

43338960293

4802954078

11.082

INFERENCE:
The above table reveals the comparative balance sheets for the year 2008-2009.
The total assets and total liabilities values were increased by 11.1% but compare to previous
statement the total assets and total liabilities values were decreased.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2009-2010

S.N
O
1

PARTICULARS
reserves and surplus
capital reserve
revenue reserve
statutory reserves
loan funds
government loans

Yr 2009

INC/DEC

PERCENT
-AGE

9308309161
6293098253
8216225752

9922422039
6403021660
9116225752

614112878
109923407
900000000

6.597
1.747
10.954

136310950

111255650

-25055300

-18.381

21856248542 2471232365

12.748

47409173643 4070213350

9.391

6772479801 351965665
10550667378 1560000230

5.481
17.351

Total

1938501617
7
4333896029
3

fixed assets
Investments

6420514136
8990667148

current liabilities

Yr 2010

current assets
interest accrued on
invt
1220821334
stores material
130731938
sundry debtors
3468934225
cash and bank balance 19310471167
loans and advances
3796820345

1086573473 -134247861
155032078
24300140
3509043386
40109161
21346726375 2036255208
3988151152 191330807

-10.996
18.587
1.1562
10.545
5.039

4333896029
3

47408673643 4069713350

9.390

Total

INFERENCE:
The above table reveals the comparative balance sheets for the year 2009-2010.
The total assets and total liabilities value are increased by 9.4% but compare to previous
statement the total assets and total liabilities values were decreased.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2010-2011

S.N
O
1

PARTICULARS
reserves and surplus

Yr 2010

YR 2011

INC/DEC

PERCEN
T
-AGE

capital reserve
revenue reserve
statutory reserves

9922422039
6403021660
9116225752

1099468461
2
7413805792
7876225752

1072262573
1010784132
-1240000000

10.806
15.786
-13.602

loan funds
government loans

111255650

89150350

-22105300

-19.869

2185624854
2
4740917364
3

2180898342
1
4818284992
7

-47265121

-0.216

773676284

1.632

current liabilities
Total

fixed assets
Investments
current assets
interest accrued on invt
stores material
sundry debtors

6772976801 7532955515
1055066737
8 11823259745

759978714

11.220

1272592367

12.062

1211278824
171774535
4016628235
1789877005
0
5528183023

124705351
16742457
507584849

11.477
10.799
14.465

cash and bank balance

loans and advances

1086573473
155032078
3509043386
2134672637
5
3988151152

-3447956325
1540031871

-16.152
38.615

Total

4740917064
3

4818284992
7

773679284

1.632

INFERENCE:
The above table reveals the comparative balance sheets for the year 2010-2011.
The total assets and total liabilities value are increased by 1.6% but compare to previous
statement the total assets and total liabilities values were decreased.

COMPARATIVE BALANCE SHEET FOR THE YEAR 2011-2012

S.N
O
1

PARTICULARS
reserves and surplus

YR 2011

YR 2012

INC/DEC

PERCEN
T
-AGE

capital reserve
revenue reserve
statutory reserves

1099468461
2
7413805792
7876225752

11219642650
7420195598
8736225752

224958038
6389806
860000000

2.046
0.086
10.919

loan funds
government loans

89150350

67045050

-22105300

-24.795

current liabilities

23283156473

1474173052

6.759

50726265523

2543415596

5.278

7532955515
11823259745

7444475969
19504821726

-88479546
7681561981

-1.174
64.970

1211278824
171774535

1669460554
210940569

37.826
22.800

1462047397

-63.600

cash and bank balance

loans and advances

4016628235
1789877005
0
5528183023

14525522046
5908997262

458181730
39166034
2554580838
3373248004
380814239

Total

4818284992
7

50726265523

2543415596

5.278

Total
fixed assets
Investments

2180898342
1
4818284992
7

current assets
interest accrued on invt
stores material
sundry debtors

-18.846
6.888

INFERENCE:
The above table reveals the comparative balance sheets for the year 2011-2012.
The total assets and total liabilities value are increased by 5.3%.

FINDINGS AND SUGGESTION

GENERAL FINDINGS
Net profit was high 48.16% during 2007-08, low 16.67% during 2011-12.

 Operating profit ratio was high 68.7% during 2007-08, low 3.5% during 201112.
Return on investment ratio was high35.2% during 2007-08, low 4.7% during

2010-11.
Expenses ratio was high 39% during 2011-12, low 26.7% during 2007-08.
Current ratio was high 1.44 times during 2008-09, low 1.02 during 2011-12.
Liquid ratio was high 1.43 times during 2008-09, low 1.01 during 2011-2012.
Cash position ratio were high 1.00 during 2008 and 2009, low 0.62during 2012.
Working capital turnover ratio was high 12.7% during 2011-12, low 0.78 during

2008-09.
Fixed asset turnover ratio was high 1.06 during 2009-10, low 0.84 during 201112.
Capital turnover ratio was high 7.89% during 2011-12, low 0.45during 2008-09.
The findings from payback period shown that the project has the capacity to back
the invested amount in the period of 8 years and 1 month.
The Average rate of return for the life of the project is expected to be 0.30%
therefore the project is likely to be accepted.
The result of NPV shows that the project can be accepted, as the result of NPV is
greater than 0 i.e. 1925.17.
Internal Rate of return is 27% which is likely to be yield high profit when the
operation runs with full capacity.
The discounted payback period supports the idea of accepting the project.
Trend analysis for profit is increasing 430188083.7 in the year of 2013 and
started decreasing the profit up to 2014-2017.
Trend analysis for expenditure is increasing the fore coming years from
9544935901 to 13301268843 for the year 2013-2017.
Trend analysis for working capital trend is increasing up to 48029578855 in the
year of 2013-2015 and decreasing from 17485656884-30587654 in the year of
2015-2017.

SUGGESTIONS

The expenditure of the Chennai port trust were increased from 2008-2012,
but profit of the Chennai port trust were decreased from 2008-2012 so the
company has to take some effective measures to increase the profit for the
fore coming years.
The return on new terminal is profitable based on budget, so the company
can start a new terminal project. The return on the new terminal expected to
be high,

 Allocations of working capital were decreased, so company has to allocate

adequate funds to meet the current obligations.
The company has to reduce the cost of operation so that the company could
earn more profit.

CONCLUSION
As I conclude that the training project done at Chennai port trust has helped me in
all the ways to understand each and every activity in Finance. And look closely at the
operation being performed. Moreover, it helps in improving and expanding in knowledge
base and perfect learning experience for me. The analysis of the study also reveals at that
the present forecasting method can be further enhanced by adopting latest techniques and
ideas and methods.

Mega container is a long term project which has many threats to operate in the
long run. The company needs to strong enough to manage the terminal for profit. The results
of the project will only provide the guideline and an exact profit that the terminal will earn.

CHAPTER-5
BIBLIOGRAPY

BIBLIOGRAPHY

BOOKS:
Financial Management

Management Accounting

Business Research Methodology

- C.R. KOTHARI

Statistics for Management

- SUBRAMANIAM.

WEBSITES:
www.cpt.co.in
www.google.com
www.wikipedia.com