Ratio Analysis in Plastic Industry

SHRI J.H.
BHALODIA WOMEN’S COLLEGE,

RAJKOT.
FINANCIAL PROJECT RESEARCH REPORT

ON
A Comparative Study of RATIO ANALYSIS
PLASTIC INDUSTRY
PREPARED BY - DHINGANI RAJAL S.
CLASS - B.B.A - V
ROLL No - 14
SEAT No -
ACADEMIC YEAR – 2017-18
PROJECT GUIDE - PROF. R.
DANGAR
SUBMITTED TO:-
SAURASTRA UNIVERSITY, RAJKOT
DECLARATION
I, undersigned Dhingani Rajal S. the student of B.B.A.

Semester-V hereby declare that the project work presented in this report
is my own work and has been carried out under the supervision and
guidance of PROF. RAMESH DANGAR Of J.H.BHALODIA
WOMENS COLLEGE, RAJKOT.
This work has not been previously sub`fff1mitted to any

other university for any examination.
Date :-
Place : - Rajkot
Yours faithfully
(Rajal Dhingani)
ACKNOWLEDGEMENT
It is my great pleasure to present this report .I am heartily thankful to all the

persons who spend their valuable time and help me in making of this project report
by providing and giving guidance. Without their help and supervision, it would
have become difficult for me to complete this work successfully.
I would like to express my gratitude towards our Principal N.M.KANANI

& our lecturer PROF. RAMESH DANGAR. I also thankful to my Parents who
are always encouraged me and I also Grateful to my FRIENDS for their co-
operation.
This project comes to a successful completion only with the joint efforts of
all these people and their help.
DATE: - Yours faithfully

PLACE : (Rajal Dhingani)
PREFACE
In Indian business, industrial and management activities are base for the
development of the country. With a view to preparing excellent future managers,
Saurashtra University has added a special subject, where students are required to
prepare a product project report in B.B.A. Sem-5.
Small scale industry is an important part of Indian economy. It provides

employment; adopt modern techniques, increases foreign exchange through
exports etc.
As a student of B.B.A., one should have basic & sufficient knowledge

about how to start business, how to manage, how to create funds. So, Product
project report is the basic requirement of it. In this regard, I have chosen to prepare
a product project report on Besan.
MAIN INDEX
Sr. no. Particular Page

no.
1 Overview of plastic industry
2 Overview of sample unit
3 Review of literature
4 Research methodology
5 Conceptual framework of relationship
between asset & liability
6 Analysis & interpretation of data
7 Finding
8 SWOT analysis
9 Suggestions
10 Conclusion
11 Bibliography
1. OVERVIEW OF PLASTIC INDUSTRY
Sr. no. Particular Page no.

1 History of plastic industry
2 Growth of plastic industry
3 Types of plastic product
4 Top 5 unit of plastic industry
5 Manufacturing process of plastic industry
6 Plastic production in the world
7 Role of plastic industry in Indian economy
1) HISTORY OF PLASTIC INDUSTRY
Ever since 1957, the plastics industry in India has made significant
achievements as it made a modest but promising beginning by commencing
production of polystyrene. The chronology of manufacture of Indian
polymers is summarized as under – 1957- polystyrene, 1959- LDPE, 1961-
PVC, and 1968- HDPE, 1978- polypropylene. Such potential Indian market
has motivated the entrepreneurs in the company to acquire technical
expertise, achieve high quality standards and build capacities in various
facets of the booming plastic industry. The phenomenal development in the
plastic machinery sector is coupled with the developments in the
petrochemical sector, both of which support the plastic processing sector.
This has facilitated the plastic processors to build capacities for the service
of both the domestic market and the markets overseas. Today Indian plastic
processing sector comprises of over 30,000 units involved in producing a
variety of items through injection moulding, blow moulding, extrusion and
calendaring. The capacity to build in most segments of this industry coupled
with inherent capabilities has made us capable of servicing the overseas
markets. The Indian plastic industry has taken great striders and in the past
few decades, the industry has grown to the status of a leading sector in the
country with a sizable base.
2) GROWTH OF PLASTIC INDUSTRY
The Indian plastics market is comprised of around 25,000 companies and

employs 3 million people. The domestic capacity for polymer production was
5.72m tons in 2009. The State of Gujarat in Western India is the leading plastics
processing hub and accounts for the largest number of plastics manufacturers, with
over 5,000 plastics firms.
The growth rate of the Indian plastics industry is one of the highest in the
world, with plastics consumption growing at 16% per annum (compared to 10%
p.a. in China and around 2.5% p.a. in the UK). With a growing middle class
(currently estimated at 50 million) and a low per capita consumption of plastics,
currently 8kg per head, this trend is likely to continue. The Plastindia Foundation
estimates that plastics consumption is likely to reach 16kg per head by 2015.
3) TYPES OF PLASTIC PRODUCT
Plastics are the common name for manmade polymers.

Chemically, these materials are made up of a single unit, the monomer, which will
link up with millions of it to form long chains. The length of these chains, if they
have many branches and how tightly they wrap together determine the physical
properties of the end plastic. Production refinements since plastics entered large
production during World War 2 have spawned thousands of different types of
plastic.
Here are 10 of the most common thermoplastics used in injection molding.
1. Polyethylene (PE):-
The most common plastic on earth, the key to PE’s wide usage is its ability
to be manufactured in varying densities which give it different mechanical
properties. At the heavy end of the scale Ultra High Molecular Weight PE
(UHMWPE) is used in bulletproof vests. High Density PE (HDPE) is found
in almost anywhere cheap rigid plastic is needed, like food packaging, toys
and pipes. Low Density PE (LDPE) is the king of disposable packaging, and
almost every piece of thin plastic sheeting, from shopping bags to food
wrap, is made from it.
2. Polypropylene (PP):-
Commonly known in the plastics industry as “prop”. Polypropylene is a one
of the most adaptable thermoplastics around. It is tougher than PE but
remains flexible. Repeated stress will not crack it. It has a high melting
point; it is easy to injection mould, acid resistant, and best of all its cheap.
Good old propel is the second most manufactured plastic, and you can find it
in everything from a wheelie bin to your see through Tupperware.
3. Polyethylene Terephthalate (PETE or PET):-

Known as polyester. By volume, it’s most common use is as a textile, ether
by itself or more commonly as cheap, durable filler for other fibers. It’s most
visible use is as food packaging where it is important to create an oxygen
barrier to protect against spoilage. Almost every clear plastic bottle you have
ever seen, used or tossed away was probably PET. Given the re-usability of
this polymer if you threw it in the right bin you probably ended up wearing it
a few years later.
4. Acrylonitrile-Butadiene-Styrene (ABS):-
ABS is often used in the automotive industry for consoles, panels, trims and
vents. It is strong and flexible, chemically resistant and has a relatively low
manufacturing cost. It is also often used for boxes, gauges, housings, asthma
inhalers and toys.
5. Polyvinyl Chloride (PVC):-
If the Chloride part of its name sounds nasty to you, you are on the money.
Once hugely popular due to its UV stability and ability to blend with other
materials to produce many mechanically different resins, its use is on the
decline because it is toxic throughout its whole life cycle. It can still be
found in products as varied as clothing, non-food packaging, piping and wire
insulation.
6. Polyamide (PA):-
Almost universally known as Nylon. Like PE it is available in many
variants with different properties. It is strong, hardy and ranges in colour
from milky-white to almost clear. It is significantly more expensive than
plastics such as PP, and is usually reserved for when toughness is needed. It
is often reinforced with short glass fibers and used in situations requiring
excellent impact and resistance and some flexibility, such as seatbelt buckles
and hinges.
7. Polycarbonate (PC):-
It is tough, stable and transparent. Originally heavily used for food storage
requiring strength, like baby bottles, PC’s tendency to leach harmful
chemicals has seen it repurposed almost exclusively as an engineering
plastic. It now corners the market in applications requiring clear or vividly
colored plastics with high gloss finishes, scratch resistance and high
strength. Commonly, this involves products such as handheld devices or
light switches.
8. Polystyrene (PS):-
Polystyrene can refer to three different types. General Purpose (GPPS)
Polystyrene is the brittle, cheap material that is often used for packing
products into boxes. High Impact Polystyrene (HIPS) is hardy, has impact
resistance and is translucent. It is used for electrical components, food
containers and construction aids. Expanded Polystyrene is PS fluffed up with
air inside a mould, and is commonly seen as the padding inside bicycle and
motorcycle helmets.
9. Polyoxymethylene (POM):-
Commonly known as Acetyl. POM is another high strength engineering
plastic, which often competes with PC. Unlike PC it is not clear, and so is
hard to cooler. However it has a higher resistance to heat, is stiffer, has low
friction and keeps its shape better. It is often used for moving mechanical
parts such as bindings, gears, wheels, sides and locking parts.
10.Polyurethane (PU):-
One of the most chemically flexible plastics on this list, PU can be either
thermoforming or thermosetting. When injection molded softer, highly
flexible forms of PU are often used. These form features like internal seals,
bump protection and even the “soft touch” skin molded over many handheld
devices to increase comfort and grip.
There is an incredible range of plastics available. Coupled with the low part
cost and amazing shapes that injection molding can offer, it is no wonder plastic
injection molding is one of the most powerful and widely used production
processes used today.
4) TOP 5 UNIT OF PLASTIC INDUSTRY
Supreme industries is the plastic

company, which was established in the
year 1942.the company offers a wide
range of polymer products in the
SUPREME Indian market and manufactures
INDUSTRY molded furniture, petrochemical,
material handling products, piping
system, etc.
The company owns the largest plastic
processors in the country and operates
plants in Noida, silvassa, puducherry,
talegaon, jalgaon, etc.
Nil Kamal is a leading plastic company

in India, which came into existence in
the year 1985. Nil Kamal is a leading
NILKAMAL manufacturer of molded plastic
furniture in the country
A VIP industry limited is placed 6th in

the list of top 10 plastic companies in
India. VIP industry limited is a leading
luggage brand in India and sells its
VIP products to various countries in the
world.
VIP, sky bags and aristocrat are
some of the famous luggage brands of
the company.
The next plastic company on this list is
Plastibends India, a leading
manufacturer of thermoplastic
PLASTIBENDS compounds in India. Plastibends India
INDIA owns two manufacturing plants in the
country, which has an annual capacity
of more than 70,000 million tones.
Last on this list of Cosmo films, a

COSMO leading manufacturer of polypropylene
films in the world. The company also
FILMS manufactures coated plastic films,
synthetic paper and laminating films
.
5) MANUFACTURING PROCESS OF PLASTIC INDUSTRY
1) Blow molding
Hot air is blown into a pre-formed tube, a parson, of semi-molten plastic
which expands to fill a cavity formed by a two part, usually metal, mould. The tube
can be injection molded allowing a thread for a lid or some other detail to be
formed. It can also be extruded as a tube, pinched at one end, and again expanded
to fill the cavity of a two part metal mould. Textures can be formed on the mould
walls.
2) Casting
Plastic in liquid form is poured into an open mould itself often moulded
from plastic.
3) Compression molding
A measured amount of material is added to a two part mould and subjected
to heat and pressure.
4) Extrusion
Plastic pellets are fed into a heated cylinder and driven forward by a turning
screw which compacts and melts them and forces the melt through a die at the end,
creating continuous lengths of shapes with the desired profile. It is a system much
like that of a mincing machine except for the addition of heat. Once the plastic
shape is formed it is cooled by air or water. 
5) Fabrication
A catch-all term for a variety of processes, including bonding,

carving, cutting, sticking, turning and welding. Go to the different materials
to see how they are fabricated.
6) Foaming
There are a number of different processes but they share the release of
air/gas into the plastic so that it fills with bubbles and foams within a two
part metal mould of the desired shape.
7) Injection molding
Similar to extrusion except that the plastic is injected into a metal
mould often with branching for multi-impression tools.
8) Rotational molding
A measured amount of material is placed in a mould which is rotated
on two axes at low speed within an oven. The molten plastic then covers and
adheres to the inner surface of the mould. The mould is then cooled while
still rotating and the product is released.
9) Thermoforming
Uses preformed sheets which are warmed and sucked (vacuum
forming) or pushed into a mould. Neither high heat nor pressure is
required so moulds can be made from cheap materials such as MDF or cast
aluminum. Also used to shape rod and tube.
6) PLASTIC PRODUCTION IN THE WORLD
 Worldwide plastics production rose to 280 million tons in 2011, according to

first rough estimates published by plastic Europe.
 This represents around 4% increase from 2010, when 270 million tons of
plastic were produced. It also confirms the return of long term growth after
the economic crisis.
 The five largest plastics types (polyolefin, PVC, EPS and PET) account for
about 70%of the total global demand, i.e. 200 million tons.
 From 2010 to 2016, global plastics consumption is expected to grow by an

average of about 4% each year.
 Most plastic scraps from the united states, Europe, and other countries that
have established collection systems flow to china, which receives 56% (by
weight) of waste plastic imports worldwide.
 Indirect evidence suggests that most of this imported plastic is reprocessed at
low- tech, family- run facilities with no environmental protection controls,
such as proper disposal of contaminants or waste water.
 There are also concerns that low- quality plastics are not reused but are
disposed of or incinerated for energy in plants that lack air pollution control
systems. Through its 2010 green fence operation, the Chinese government
has started to work to reduce the number unregulated facilities.
 About 4% of the petroleum consumed worldwide each year is used to make

plastic, and another 4% is used to power plastic manufacturing processes.
 In Europe, 26%, or 6.6 million tons, of the post-consumer plastic produced

in 2012 was recycled, while 36% was incinerated for energy generation. The
remaining 38% of post-consumer plastics in Europe went to landfills.
 In the United States, only 9% of post-consumer plastic (2.8 million tons)

was recycled in 2012. The remaining 32 million tons was discarded.
7) ROLE OF PLASTIC INDUSTRY IN INDIA
2005 2015
4.7 million tone 18.9 million tone
@ 15% CARG, consumption
of plastic polymers
2.5 million 9.5 millions

Employment in plastic
industry ( direct+ indirect)
Rs. 35,000 crore Rs. 1,33,245 crore

Plastic industry’s turnover
US $ 1900 US $ 10215 millions

Export of plastic products @ millions
30% CARG
Rs. 6200 crore Rs. 15990 crore

Contribution of polymers
and plastic products to the
exchequer
Overview
of
SAMPLE
UNIT
SUPREME INDUSTRY
HISTORY OF SUPREME INDUSTRY:-
Supreme industries incorporated in s1942 manufactures a wide range of

polymers products. The Company manufactures products like Cross-Laminated
films, HMHD films, Multilayer films, SWR Piping Systems, Moulded Furniture
and many more.
The company owns largest plastics in India. SIL operates 18 plants that are
located at Derabassi, Gadegaon, Guwahati, Halol, Hosur, Jalgaon, Kanhe, Kanpur,
Khopoli, Khushukheda, Malanpur, Nandesari, Noida, Pondicheri and Silvassa.
The company operates a subsidiary namely the Supreme Industries Overseas
Operating in UAE. This subsidiary has supported company to create product
presence in 21 Countries.
2018-19 will see the Supreme Group turnover cross a projected Rs. 125
billion.
COMPANY PROFILE OF SUPREME INDUSTRY
Date of Establishment 17-02-1942
Corporate Address 612, Raheja Chambers, Nariman Point,

Mumbai – 400021,
Maharastra.
Management Detail Chairperson – B.L.Taparia

MD – M.P.Taparia
Directors – Rashna Khan
R.M.Pandia
R Kannan
Y.P.Trivedi
N. N. Khandwala
S. J. Tapariya
Business Operations Plastic Products
Financials Total Income –

Rs. 29883.662 Million
Net Profit –
Rs. 2130.991 Million
Company Secretary R.J. Saboo
Bankers & Auditors Chhogmal & Co.
Traded AS BSE : 509930

NSE : SUPREMEIND
MISSION & VISION OF SUPREME INDUSTRY
MISSION
- To conduct business with ethical practice and WALK OUR TALK.

- To offer consistent Product and Services with uncompromising quality supported by
continuous improvements and innovations thereby exceeding Customer’s expectations.
- To ensure the culture of utmost respect and empowerment to individuals and be a
catalyst in enhancing their competencies.
VISION
- To grow business with dignity & respect.
NILKAMAL INDUSTRY
HISTORY OF NILKAMAL INDUSTRY
Nilkamal was incorporated on 5th December1985 as Creamer

Plastic. The company changed its name to Nilkamal Plastic on 23 August 1990.
The company has manufacturing facilities in Samba, Greater Noida, Pondicherry,
Barjora, Sinnar, Nashik and Silvassa. The company also has joint manufacturing
ventures in Bangladesh and Sri lanka. In 2011, the company also began production
of matteresses with manufacturing units in Hosur and Dankuni.
COMPANY PROFILE OF NILKAMAL INDUSTRY
Type Public Limited Company
Traded as BSE: 523385

NSE: NILKAMAL
Industry Furniture
Genre Plastics
Founded 1981
Founders Vaman Parekh &

Sharad Parekh
Headquarters Mumbai, Maharastra
Revenue Rs.21,654.7 million
Website www.nilkamal.com
MISSION & VISION OF NILKAMAL INDUSTRY
MISSION
- Make Nilkamal the leader in pure chosen markets by creating an environment to

attract and retain a committed team of talented professionals.
VISION
- Growing the business by improving and optimizing human skills, effective use of
technology and manpower skills within the Nilkamal Group resulting in 15000 jobs.
VIP INDUSTRY
HISTORY OF VIP INDUSTRY:-
The very first VIP Suitcase was manufactured in the year 1971. Since
then, VIP Industries has sold over 60 million pieces of luggage to people around
the world and have subsequently become the foremost manufacturer of hard and
soft luggage in Asia, with a goal to make travelling simple
VIP manufactures an array of products and provides numerous different services

with an aim to make travel simple and convenient for millions of people around the
world. There products and services are carefully designed to help people
experience the delight of travelling .A team of professional, skilled designers
constantly innovate and explore new technological aspects and materials to craft
luggage which is at-par with the world’s highest standards.The Product Portfolio of
VIP Industries Ltd. today, consists of a diverse range of hard-sided and soft-sided
luggage. The moulded furniture range includes strollys, suitcases, duffel-bags,
backpacks, executive cases, overnight travel solutions and school bags. VIP
Industries Ltd. is the parent of many renowned brands like VIP, Aristocrat, Alfa,
Footloose, Skybags and Carlton which cover the entire spectrum of travel
products.
VIP Industries Ltd. has more than 8000 retail outlets across India and with a
network of over 1300 retailers across 27 countries. With a product range which
includes Injection Moulded PP Cases and Furniture, Vacuum formed PC and ABS
cases and Soft sided luggage in Nylon, Polyester and EVA material, VIP Industries
Ltd has several innovations in product design and technology.
COMPANY PROFILE OF VIP INDUSTRY

Type Public company
Traded as BSE : 507880

NSE : VIPIND
Founded 1971
Headquarters Mumbai, Maharashtra
Area Served India
Revenue Rs. 6368.0 million
Number of employees 1645
Parent DG Parimal Group
Website vipindustries.co.in
MISSION & VISION OF VIP INDUSTRY

MISSION
- Building enriching partnerships, pride of leadership and delightful

experience by adding a spark of innovation to all that we do.
VISION
- To be the global leaders in the travel production business.

- To manufacture and provide travel utilities which are of high eminence,
innovative and unique and enlighten our consumer to the joys of travelling.
PLASTIBENDS INDUSTRY
HISTORY OF PLASTIBENDS INDUSTRY
Plastibends India Limited, promoted by the 'Kolsite Group' is located in the union
territory of Daman, to manufacture various types of Master Batches, Compounds,
Blends, Alloys, etc. for the Plastics Industry. Plastibends India Limited is the first
master batch manufacturing company in India who has been awarded ISO 9001
Quality Assurance Certification by TUV Bayern, Germany.
Plastibends India (PBI) is India’s largest manufacturer and exporter of master

batches and additive compounds for the plastic processing industry. Headquartered
in Mumbai, India, their world class manufacturing, product development and
application facilities are located in Daman and Roorkee.
The company has made a large investments in innovative technology and R&D
and is having a total manufacturing capacity of over 40000 Tons per annum.
The company’s products are highly compatible with a wide range of polymers like
polyolefin, polystyrenes, polyamides, PBT, PET and a diverse range of
engineering plastics.
Backed by years of experience the company is able to offer optimum solutions to

its customers by constantly monitoring market demand and customers’ changing
needs.
PBI has got the coveted ‘Export House’ status by Government of India. They have
been making a major export thrust in keeping with their global aspirations. Their
products match international quality standards making them globally acceptable.
They have been exporting to more than 30 countries worldwide in Asian, African,
European, South American Markets and New Zealand. They are poised to
extend their footprint to the advanced North American Markets.
COMPANY PROFILE OF PLASTIBENDS INDUSTRY
Year of Establishment 1991
Revenue market cap 79.96 ( USD in millions)

6280.29018
( Rs. in millions)
Address Plastibends India Ltd.

Fortune Terraces,
A wing, opp. city mall,
Link road, Andheri (west)
Mumbai 400053, India.
Financials Total income –

Rs. 5205.21 million
Net Profit –
Rs. 376.708 million
Bankers DBS Bank

Kotak Mahindra bank
HSBC Bank
Auditors AG OGALE & COMPANY

MISSION & VISION OF PLASTIBENDS INDUSTRY
MISSION
- The way they do their business, work culture, quality perspectives, obsession
with innovative, technology and their human resource are all singularly
focused on enhancing and adding value.
VISION
- To attain and maintain leadership status in their chosen field of business.

- Focusing all their actions towards total customer satisfaction.
- A total employee involvement, sincerity of purpose and commitment to
objectives as the foundations of the vision.
COSMO FILMS INDUSTRY
HISTORY OF COSMO FILMS INDUSTRY
Cosmo Films was started in 1981 to manufacture Bi–axially Oriented

Polypropylene Films (BOPP) for the first time in India. The company is promoted
by its visionary leader Ashok Jaipuria and is a pioneer of BOPP manufacturing in
India.
The company is engaged in the production of Wet Laminating, Printing and

Pouching, Label Films, Soap Wrap Films, Over Wrap Films, Tape & Textile and
Thermal Laminating Film for Graphic Finishing.
Since inception Cosmo has maintained market leadership in both the domestic and
export market. Cosmo Films believe in constant growth and innovation and hence
had taken strategic decision of expanding its current capacities to compete
successfully in the global market. This strategy will help in increasing its global
presence while contributing to overall margins and benefiting its shareholders &
stakeholders. This is reflected through its association with leading FMCG Brands
worldwide for providing them with cost–effective innovative packaging solutions
to enhance their value. Its current capacity is 56,000 MT per annum, and 22,000
MT of Thermal lamination film.
The company has acquired a PVDC and Acrylic coating plant from France and has
started making inroads in the high barrier packaging material as well as coated
Label segments. the R & D of Cosmo is committed to adapt, modify and develop
the product to fulfill customer's requirements and needs in time. The R & D center
is thoroughly equipped with MVTR, OTR, FTIR machines apart from various
other testing equipments
During a survey conducted by 'FORBES' in 2003 Cosmo was recognized as one of
the best 200 companies out of 19000 listed companies with revenue of less than 1
Billion US$ outside US
COMPANY PROFILE OF COSMO INDUSTRY:-
Type Public
Traded as BSE : 5088814

NSE : COSMOFILMS
Industry Manufacturing, Plastic
Founded 1976
Founder Ashok Jaipuria
Headquarters Delhi, India
Area Served Worldwide
Key People Ashok Jaipuria

Pankaj Poddar
Website www.cosmofilms.com
MISSION & VISION OF COSMO INDUSTRY
MISSION
- To deliver the finest product and service experience, backed by

innovation, people and processes.
VISION
- "To be the most preferred global brand offering value added BOPP films for
packaging, labels, lamination and industrial applications."
1. REVIEW OF LITERATURE
 Literature review on different plastic waste materials used in

concrete by Muhammad Refigure who is project officer at
frontier works organization published on June 13, 2015.
Plastic waste is silent threat to the environment and their disposal is a serious
issue for waste managers. Now a day society does not have any alternative to
plastic products like plastic bags, plastic bottles, and plastic sheets etc. In spite of
all efforts made to limit its use but unfortunately its utility is increasing day by day.
To circumvent this issue many efforts were made in the past to reuse the plastic
waste but no significant results were achieved. On contrary concrete being the
widely used construction material is facing problem due to unavailability of
construction material (Cement, sand and coarse aggregate). Various attempts were
made through experimentation to check the feasibility of plastic waste to be use
partially in concrete with respect to various properties of strength, workability,
durability and ductility of concrete. This paper includes review of various studies
conducted on utility of waste plastic material used in the concrete. Moreover this
paper will draw our focus toward the impingement on the various properties of
concrete when partially replacing with waste plastic.
 Literature review on plastics recycling and waste
management in the US by Subramanian, P.M., in 2009
The increasing awareness of the environment has contributed to concerns

regarding our life styles and our indiscriminate disposal of wastes. During the last
decade, we have been trying to address this complex problem, more aggressively.
Discussed here briefly, are our efforts in the United States in addressing the issue
of solid wastes and in particular, plastic wastes. These efforts have begun to show
promising results. The municipal solid waste (MSW) produced annually, has
begun to decrease, e.g. from 211.5 million tons in 1995 to 209.7 million tons in
1996. Recycling rates and composting rates are increasing. Disposal in landfills is
decreasing (from 60.9 to 55.5% in 1996). Waste disposal by combustion is also
increasing. This is primarily due to the increased efficiencies of the new
incinerators and their ability for the removal of particulates and harmful gases.
Plastics are a small but a significant component of the waste stream. It is
encouraging to note that the amount of plastics being recycled has grown
significantly. In 1997, about 317 million kg of high density polyethylene (HDPE)
bottles and 294 million kg of polyethylene Terephthalate (PET) bottles were
recycled. Recycling of durable goods, such as automotive parts, carpets, electronic
and appliance housings and parts are being explored. Environmental compatibility
and recyclability are being considered during the designing of new parts. Life cycle
analyses and management are also being studied as tools for decision making.
SR NO. PARTICULAR PAGE
NO.
1 Introduction
2 Definitions
3 Importance of Ratio Analysis
INTRODUCTION
Financial analysis is the process of taking accounting &

other financial data & organizing them into a form which reveals a firm’s strengths
& weaknesses. By highlighting these areas, the users of financial information can
then make more informed decisions about the organization.
The analysis undertaken will depend upon the needs of the

user. If a supplier wants to know if their bills will be paid, emphasis will be placed
on the liquidity part of the analysis. If a banker is being asked for a loan, liquidity
& level of debt will be examined. Equity investors will require a more in-depth
analysis into the overall soundness of the investment. The general manager wants
to keep track of operating expenses, cost of goods, & other operational details of
the company. One of the most difficult issues in financial analysis is focusing on
the information which meaning for a specific use without becoming lost in
unrelated & inappropriate data & ratios.
DEFINITIONS
Ratio analysis is the process of examining and comparing

financial information by calculating meaningful financial statement figure
percentages instead of comparing line items from each financial statement.
Managers and investors use a number of different tools and

comparisons to tell whether a company is doing well and whether it is worth
investing in. The most common ways people analysis a company’s performance
are horizontal analysis, vertical analysis, and ratio analysis. Horizontal and vertical
analyzes compare a company’s performance over time and to a base or set of
standard performance numbers.
IMPORTANCE OF RATIO ANALYSIS
1. Analyzing Financial Statements
Ratio analysis is an important technique of financial statement analysis.

Accounting ratios are useful for understanding the financial position of the
company. Different users such as investors, management. Bankers and creditors
use the ratio to analyze the financial situation of the company for their decision
making purpose.
2. Judging Efficiency
Accounting ratios are important for judging the company's efficiency in terms of
its operations and management. They help judge how well the company has been
able to utilize its assets and earn profits.
3. Locating Weakness
Accounting ratios can also be used in locating weakness of the company's

operations even though its overall performance may be quite good. Management
can then pay attention to the weakness and take remedial measures to overcome
them.
4. Formulating Plans
Although accounting ratios are used to analyze the company's past financial
performance, they can also be used to establish future trends of its financial
performance. As a result, they help formulate the company's future plans.
5. Comparing Performance
It is essential for a company to know how well it is performing over the years and
as compared to the other firms of the similar nature. Besides, it is also important to
know how well its different divisions are performing among themselves in
different years. Ratio analysis facilitates such comparison. Ratio analysis is an
important and useful technique to check upon the efficiency of an organization.
The management can arrive at important decisions by using ration analysis. The
ratio is used for expressing the mutual relation to different accounts consisting in
the financial statement.
INDEX
Sr. No. Particulars Page

No.
1 Introduction
2 Meaning
3 Research Design
4 Research Process
5 Title Of The Study
6 Period Of The Study
7 Universe Of The Study
8 Sources Of The Data
9 Objectives Of The Study
10 Significance Of The Study
11 Tools & Techniques
12 Limitations Of The Study
13 Research type
INTRODUCTION
Research methodology is a way to systematically solve the

research problem. It may be understood as how research is done scientifically in
financial research, researcher as student as well as industry. In which research has
conducted.
For any kind of investigation the methodology aspects has got

a special significance. It involves formulation and application of the research
designs in such way that the condition of collection and analysis of the data enable
us to the specific questions posed, under the object of the study. So, this study us
role of finance management in industry.
Research is a careful and scientific inquiry into every subject,

subject matter or area, which is an Endeavour to discover valuable information
which would be useful for further application. Thus, research is a process of a
systematic and in-depth study of research of any specific topic, Subject or area of
investigation. The research would result in the formulation of new theories,
discovery of new techniques and an improvement in old concept or knocking-off
of an existing theory, concept, method or technique. There cannot be any research
which does not increase in the knowledge or improve scientific know- how in any
branch of science, arts or commerce.
MEANING OF RESEARCH
Research is refers to search for knowledge. Research is an art

of scientific and systematic investigation on a specific topic. Research is an
original contribution to the existing stock of knowledge making for its
advancement. It is the pursuit truth with the help of study, observation, comparison
and experiment. In other words, research is an attempt to know things, facts,
information etc. in a scientific manner. Therefore, though the objectives and
systematic methods of finding solution to a problem in research.
According • "Research is a
systematic study of
to Remand generationg new
and Mary knowledge."
Definition:-
“Research is a systematic activity directed towards the discovery and
development of an organized body of knowledge.”
- JOHANWEST
RESEARCH DESIGN
Suppose a manufacturer of a quality machines finds sales

disappointing & believes that they may be helped by the development of point of
purchase display. The contemplated display is expensive but manufacturer would
like to try it out first on a limited basis to be sure that it stimulates more sales and
profit than its costs. This can be achieved through a better planning & formulation
of good strategy.
Accordin • "Research design is the plan,

g structure & strategy of
nvestigation conceived so as to
obtain answer to research
to questions & to control
variance."
Kerlinger
“Research design is in fact the conceptual structure with in

which the research is conducted; it is the blue print for the collection, measurement
& analysis of the data.”
PROCESS OF RESEARCH
Defining the problems &

objectives
Develop the research plan
Collect the information
Analysis of information
Present the findings
Make the decision

Defining the problems and research objectives:-
In first stage research process identification the problem which arise in
business. The research objectives define way of research for facing problems of
business.
Develop the research plan:-

The second stage of research calls for developing the most efficient plan for
gathering the method needed information. For designing a research plan calls for
decision on the data source, research instrument, sampling data plan and contract
method.
Collect the information:-
The collection is done in two ways that is primary data collection and secondary
data collection. But here primary data collection is not require in finance
secondary data which is useful for making decision in balance sheet and profit
& loss account government finance journal etc.
Analysis of the information:-
The next stage of research method is to extract the findings from the collection
data. The researcher tabulates the data and analysis it.
Present the findings:-
The last stage the researcher presents the findings in front of top management.
So, top management can approve these findings.
Make the decision:-

By approving the findings, now the basis of research decision in taken for
improving the company’s strength is this researcher are also compare other
past researcher as well as other company research.
TITLE OF THE STUDY
Title of the study is that, “a financial research report on investment

analysis of selected plastic industries in India” which is as under…
1. SUPREME INDUSTRY
2. NILKAMAL
3. VIP
4. PLASTIBLENDS
5. Cosmo FILMS
PERIOD OF THE STUDY
The present study has been made covering the period of last 5
years that are 2012-13 to 2016-17. There are not special reasons to choose this time
period for purpose of study.
UNIVERSE OF THE STUDY
The universe of the study is all leading units & all are private limited units
which are working in tea industry. They are as follows:-
1. SUPREME INDUSTRY
2. NILKAMAL
3. VIP
4. PLASTIBLENDS
5. Cosmo FILMS
SOURCES OF THE DATA
The task of data collection after a research problem has been defined and research
design/plan checked out. While deciding about the method of data collection to be
used for the study, the researcher should keep in mind two types of data.
1) Primary data: -The primary data are those which are collected afresh and
for the first time and thus happen to be original in character. There are
following methods of obtaining primary data.
 Questionnaire or survey method
 Observation method
 Panel research
 Experimental research
2) Secondary data: - The secondary data are those which have already been
passed through the statistical process. There are internal & external sources
of obtaining secondary data. Like sales force reports, miscellaneous reports,
internal expert, government publication, non- government publication,
research agencies, publication of internal organization.
The present research work is mainly based on secondary data
obtained from the annual reports of the sample units. To supplement the data,
different publication, various books, journal and different websites related
Automobile industry etc. have been used for better reliability.
OBJECTIVES OF THE STUDY
No work is started without any objective. Objective of

preparing this report is to make a research work on financial aspects of the
conceptual bank & company. The main contents of the financial statements, i.e.
Balance sheet, profit & loss accounts with including the other analysis of financial
information.
Financial management is life blood of any organization. So

object of research study are as under:-
 To understand financial analysis as a concept.

 To gain familiarity with a phenomenon or to achieve new insights into it.
 To checks the different scope of financial analysis.
 To know the efficiency of all public limited companies.
To evaluate the liquidity position of the units.
 To overview of overall performance of the units taken for the study.

 To understand and recognize, the volatility of ratios.
SIGNIFICATION OF THE STUDY
 If analysis is done in various aspects like liquidity, profitability, assets

utilization the relevant information can be furnished to its various users for
their decision making.
 It is also necessary to find out some important factors which affect internal
decision of industry.
 As per many financial and non-financial institute and also government
affects by various financial aspects, its various should be analyzed.
 A large mass of the company even from housewife to businessmen has
started to invest their money in share markets so financial analysis will be
helpful to them to take proper decision to invest their money in these sectors.
TOOLS & TECHNIQUES FOR ANALYSIS
The collected data are duly edited classified & analyzed using all types
of relevant accounting ratios & statistical techniques. The data are presented
through simple classification & with the help of percentage, average & hypothesis
are tested at 5% level of significance of employing ‘F’-test.
There are many techniques which may be used for analyzing the
financial performance. These techniques have been classified as follows:
A. Accounting techniques
B. Statistical techniques
Accounting Techniques:-
 Ratio Analysis:-
A ratio analysis is a figure showing the logical relationship between any two items
taken from financial statements. A number of ratios are used by financial analysis.
They can be classified as profitability ratios, activity ratios, liquidity ratios and
solvency ratios. The use of ratios for the purpose of arriving at some conclusion
regarding some aspect of performance of financial position of business is known as
ratio analysis.
Statistical Techniques:-
 F-Test:-
An F- test is any statistical test in which the test statistical has an F distribution
under the null hypothesis. It is not often used when comparing statistical models
that have been fitted to a data set, in order to identify the model that fits the
population from which the data were samples. Exact F- test mainly arises when the
models have been fitted to the data using least squares.
 ANOVA Analysis:-
ANOVA table also shows the statistics used to test hypotheses about the
population means. An ANOVA is a statistical test that evaluates data sets from
statistical experiments to see if there are statistically significant differences in the
different experimental conditions. For an ANOVA, the data sets are organized by
the different independent variables in your experiment, with each factor being
tested at given levels.
LIMITATIONS OF THE STUDY
There are some pros and cons for each and every study. I have
studied the project report on financial statement analysis of development.
 This study is based on secondary data taken from published annual reports &
accounts of selected companies and such as its findings depends entirely on
the accuracy of such data.
 There are different methods to measure the liquidity of an industry in this
connection views of experts differ from one another.
 The present study is largely based on ration analysis has its own limitations
which also applies to the study.
 The different views have been applied in the calculation of the elements of
costs by the unit.
Research Type
1) Descriptive Vs. Analytical:-

Descriptive research includes survey & fact finding enquiries
of different kinds. The major purpose of descriptive research is description
of the state of affairs as it exists at present. In analytical research, on the
other hand, the researcher has to use facts or information already available,
& analyze these to make a critical evaluation of the material.
2) Applied Vs. Fundamental:-

Research can either be applied research or fundamental
research. Applied research aims at finding a solution for an immediate
problem facing a society or an industrial/ business organization, whereas
fundamental research is mainly concerned with generalizations & with the
formulation of a theory.
3) Quantitative Vs. Qualitative:-

Quantitative research is based on the measurement of
quantity or amount. It is applicable to phenomena that can be expressed in
terms of quantity. Qualitative research, on the other hand, is concerned
qualitative phenomena, i.e., phenomena relating to or involving quality or
kind.
4) Conceptual Vs. Empirical:-
Conceptual research is that related to some abstract idea or
theory. It is generally used by philosophers & thinkers to develop new
concepts or to reinterpret existing ones. On the other hand, empirical
research relies on experience or observation alone, often without due regard
for system & theory.
(1) Gross Profit Ratio
Gross profit margin is the ratio of gross profit to sales revenue. It is the
percentage by which gross profit exceed production cost. Gross margins
reveal how much a company earns taking into consideration the costs that it
incurs for producing its products or services. A company that boasts gross
margin than its competitors and industry is more efficient.
Gross profit ratio = Gross profit * 100
Sales
YEAR Supreme Plastibends Nilkamal VIP Cosmo Ri Avg.
2012-13 13.33 6.93 5.17 5.56 4.25 35.24 7.048
2013-14 12.29 9.21 5.80 6.59 5.03 38.92 7.784
2014-15 12.38 9.01 4.82 5.83 6.24 38.28 7.656
2015-16 11.98 10.23 8.65 7.47 11.51 49.84 9.968
2016-17 13.61 9.30 8.61 8.48 9.55 49.55 9.91
Ci 63.59 44.68 33.05 33.93 36.58 211.83
Avg. 12.718 8.936 6.61 6.786 7.316 42.366

16
14
12
10 SUPREME
PLASTIBENDS
8
NILKAMAL
6 VIP
COSMO
4
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
 In 2012 - 13, the higher ratio of Supreme which is 13.33 and the lower ratio
of Cosmo which is 4.25.
 In 2013-14, the higher ratio of supreme is 12.29 and the lower ratio of
Cosmo which is 5.03.
Nilkamal which is 4.82.
 In 2015-16, the higher ratio of supreme is 11.98 and the lower ratio of VIP
which is 7.47.
which is 8.48.
F – Test:
Ho = There is no significant difference in gross profit ratio within the
samples & between the samples.
H1 = There is significant difference in gross profit ratio within the
ANOVA
Source of
Variation SS Df MS F P-value F crit
Rows 37.36414 4 9.341036 5.18725 0.007123 3.006917
Columns 129.4489 4 32.36223 17.97134 9.1E-06 3.006917
Error 28.8123 16 1.800768
Total 195.6253 24
H0: This is rejected, because (Fc > Ft) i.e. (5.18> 3.00).
H1: This is rejected, because (Fc > Ft) i.e. (17.97 > 3.00).
Interpretation:
 Above table indicates the calculated value of ‘F’. The calculated value of ‘F’
is 5.18 and 17.97.
 5.18 And 17.97 both are more than to table value of ‘F’ at 5% level of
significance is 3.00.
 It indicates that null hypothesis is rejected and alternative hypothesis is also
rejected.
(2) Net Profit Ratio
The net profit margin ratio is the overall measure of a firm’s ability to turn
each rupee of income into profit. It indicates the efficiency with which a
business managed. A bank with a high net profit ratio is in an advantageous.
Where net profit ratio is low the firm will find it difficult to survive on this
adverse situation.
Net profit ratio = Net Profit *100

Sales
Year Supreme Plastibends Nilkamal VIP Cosmo Ri Avg.
2012-13 8.00 3.75 1.93 3.60 1.35 18.53 3.706
2013-14 7.10 5.84 2.41 6.00 0.64 21.99 4.398
2014-15 7.42 6.07 2.37 4.56 2.73 23.15 4.63
2015-16 7.16 7.27 5.55 5.21 7.51 32.7 6.54
2016-17 8.50 5.77 6.05 5.96 7.65 33.93 6.786
Ci 38.18 28.7 18.31 25.33 19.88 130.3
Avg. 7.636 5.74 3.662 5.066 3.976 26.06

9
6
SUPREME
5 PLASTIBENDS
NILKAMAL
4
VIP
3
COSMO
2
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
 In 2013-14, the higher ratio of supreme is 7.10 and the lower ratio of cosmo
which is 0.64.
 In 2015-16, the higher ratio of cosmo is 7.51 and the lower ratio of VIP
which is 5.21.
Plastibends which is 5.77.
F – Test:
 Ho = There is no significant difference in Net profit ratio within the

 H1 = There is significant difference in Net profit ratio within the
ANOVA
Source of
Variation SS df MS F P-value F crit
Rows 37.25248 4 9.31312 4.165341 0.016851 3.006917
Columns 50.52996 4 12.63249 5.649947 0.004954 3.006917
Error 35.77376 16 2.23586
Total 123.5562 24
Interpretation:
is 4.16 and 5.64.
 4.16 And 5.64 both are more than to table value of ‘F’ at 5% level of
significance is 3.00.
rejected.
(3) Current Ratio
This ratio used to perform the short term financial analysis. It is also known
as working capital ratio. This ratio matches the current assets to the current
liability of the firm.
A ratio greater than one means that firms has more current
assets against current liability. The ratio is obtained by dividing current
assets by current liabilities.
Current ratio = Current assets
Current liabilities
2012-13 0.90 1.14 0.92 2.11 0.51 5.58 1.116
2013-14 1.08 1.65 1.03 2.16 0.60 6.52 1.304
2014-15 1.21 1.47 1.20 1.93 0.61 6.42 1.284
2015-16 0.88 1.08 1.56 1.96 0.68 6.16 1.232
2016-17 1.17 1.21 1.72 2.27 0.74 7.11 1.422
Ci 5.24 6.55 6.43 10.43 3.14 31.79
Avg. 1.048 1.31 1.286 2.086 0.628 6.358

2.5
SUPREME
1.5
PLASTIBENDS
NILKAMAL
1 VIP
COSMO
0.5
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
 In 2012 - 13, the higher ratio of VIP which is 2.11 and the lower ratio of
 In 2013-14, the higher ratio of VIP is 2.16 and the lower ratio of Cosmo
which is 0.60.
which is 0.61.
which is 0.68.
 In 2016-17, the higher ratio of VIP is 2.27 and the lower ratio of cosmo
which is 0.74.
F – test:
 Ho = There is no significant difference in current ratio within the

 H1 = There is significant difference in current ratio within the
ANOVA
Source of
Rows 0.248016 4 0.062004 1.507733 0.24688 3.006917
1.15E-
Columns 5.645736 4 1.411434 34.32142 07 3.006917
Error 0.657984 16 0.041124
Total 6.551736 24
H0: This is accepted, because (Fc < Ft) i.e. (1.50 < 3.00).
Interpretation:
is 1.50 and 34.32.
 34.32 are more than to table value of ‘F’ at 5% level of significance is 3.00.
 It indicates that null hypothesis is accepted and alternative hypothesis is
rejected.
(4) Fixed Asset Turnover Ratio
With the help of profitability & efficiency of the firm can be

measured. The more the sales in relation to the amount invested in fixed assets,
the more efficient the use of fixed assets. If the sales are less as compared to
investment in fixed assets, it means fixed assets are not adequately utilized in
the business.
Fixed Assets Turnover Ratio = Sales

Fixed Assets
2012-13 2.14 4.24 2.46 3.13 1.23 13.2 2.64
2013-14 2.28 4.67 2.41 3.74 1.49 14.59 2.918
2014-15 2.34 4.30 2.60 4.31 1.67 15.22 3.044
2015-16 1.45 2.60 2.68 4.99 1.38 13.1 2.62
2016-17 1.97 2.53 5.59 5.14 1.56 16.79 3.358
Ci 10.18 18.34 15.74 21.31 7.33 72.9
Avg. 2.036 3.668 1.9675 4.262 1.466 14.58

6
4
SUPREME
PLASTIBENDS
3
NILKAMAL
VIP
2
COSMO
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
 In 2012 - 13, the higher ratio of Plastibends which is 4.24 and the lower ratio
 In 2013-14, the higher ratio of Plastibends is 4.67 and the lower ratio of
which is 1.67.
which is 1.38.
 In 2016-17, the higher ratio of Nilkamal is 5.59 and the lower ratio of
F – Test:
 Ho = There is no significant difference in Fixed asset turnover ratio

within the samples & between the samples.
 H1 = There is significant difference in Fixed asset turnover ratio within
the samples & between the samples.
ANOVA
Source of
Rows 1.87772 4 0.46943 0.565964 0.690919 3.006917
Columns 26.53972 4 6.63493 7.999337 0.000966 3.006917
Error 13.27096 16 0.829435
Total 41.6884 24
H0: This is accepted, because (Fc < Ft) i.e. (0.56< 3.00).
Interpretation:
is 0.56 and 7.99.
rejected.
(5) Total asset turnover Ratio
The ratio indicates the number of times total asset are being
turned over with relationship to value of sales in a year. This ratio is used to
indicate the efficiency with which asset and resources of firm are being
utilized. A high ratio shows efficient utilization. A low ratio shows that the
firm has an extensive investment in total assets.
Total asset turnover ratio = sales * 100
Total asset
2012-13 2.83 2.37 2.06 2.94 1.32 11.52 2.304
2013-14 2.95 2.79 2.27 3.21 1.43 12.65 2.53
2014-15 2.97 2.78 2.71 3.11 1.85 13.42 2.684
2015-16 2.17 1.95 2.82 3.49 1.75 12.18 2.436
2016-17 2.58 1.86 2.62 3.21 1.29 11.56 2.312
Ci 13.5 11.75 12.48 15.96 7.64 61.33
Avg. 2.7 2.35 2.496 3.192 1.528 12.266

4
3.5
2.5 SUPREME
PLASTIBENDS
2
NILKAMAL
1.5 VIP
COSMO
1
0.5
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
 In 2012 - 13, the higher ratio of VIP which is 2.94 and the lower ratio of
which is 1.43.
which is 1.85.
which is 1.75.
which is 1.29.
F – Test:
 Ho = There is no significant difference in Total Asset turnover ratio

 H1 = There is significant difference in Total Asset turnover ratio
ANOVA
Source of
Rows 0.508304 4 0.127076 1.313637 0.307068 3.006917
Columns 7.376064 4 1.844016 19.06236 6.23E-06 3.006917
Error 1.547776 16 0.096736
Total 9.432144 24
Interpretation:
1.31 and 19.06
rejected.
(6) Debtor Turnover Ratio
The ratio shows the number of days taken to collect the dues of credit sales. The
ratio is computed by dividing debtors and bills receivable by the average daily
sales. The average daily sales are obtained by dividing the total annual sales by
365. The debtor’s turnover suggests the number of times the amount of credit sale
is collected during the year.
Debtors Turnover Ratio = Sales

Debtors
2012-13 18.12 5.50 7.57 7.65 9.49 48.33 9.666
2013-14 18.05 5.36 7.40 9.76 10.02 50.59 10.118
2014-15 18.01 5.47 7.96 10.16 10.06 51.66 10.332
2015-16 12.56 5.17 7.65 9.34 10.41 45.13 9.026
2016-17 17.44 5.17 7.15 9.45 9.52 48.73 9.746
Ci 84.18 26.67 37.73 46.36 49.5 244.44
Avg. 16.836 5.334 7.546 9.272 9.9 48.888

20
18
16
14
SUPRME
12
PLASTIBENDS
10
NILKAMAL
8 VIP
6 COSMO
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
of Plastibends which is 5.50.
 In 2015-16, the higher ratio of Supreme is 12.56 and the lower ratio of
F – Test:
 Ho = There is no significant difference in Debtor turnover ratio

 H1 = There is significant difference in Debtor turnover ratio within
ANOVA
Source of
Rows 5.007936 4 1.251984 0.874378 0.500767 3.006917
Columns 374.0862 4 93.52155 65.31489 1.05E-09 3.006917
Error 22.9097 16 1.431857
Total 402.0039 24
Interpretation:
is 0.87 and 65.31
rejected.
(7) Inventory Turnover Ratio
The inventory turnover ratio is an efficiency ratio that shows how

effectively inventory is managed by comparing cost of goods sold with average
inventory for a period. This measures how many times average inventory is
"turned" or sold during a period. In other words, it measures how many times a
company sold its total average inventory dollar amount during the year.
Inventory Turnover Ratio = Cost of Goods Sold

Average Inventory
2012-13 8.12 6.91 5.28 6.02 10.21 36.54 7.308
2013-14 7.96 8.10 5.50 5.63 14.40 41.59 8.318
2014-15 10.17 11.91 6.89 4.78 15.98 49.73 9.946
2015-16 5.98 9.83 6.76 4.44 9.71 36.72 7.344
2016-17 6.44 8.62 6.42 4.78 13.76 40.02 8.004
Ci 38.67 45.37 30.85 25.65 64.06 204.6
Avg. 7.734 9.074 6.17 5.13 12.812 40.92

18
16
14
12
SUPREME
10 PLASTIBENDS
NILKAMAL
8
VIP
6
COSMO
4
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
 In 2012 - 13, the higher ratio of Cosmo which is 8.12 and the lower ratio of
 In 2013-14, the higher ratio of Cosmo is 14.40 and the lower ratio of
 In 2014-15, the higher ratio of Cosmo is 15.98 and the lower ratio of VIP
which is 4.78.
 In 2015-16, the higher ratio of Plastibends is 9.83 and the lower ratio of VIP
which is 4.44.
which is 4.78.
F – test:
 Ho = There is no significant difference in Inventory turnover ratio

 H1 = There is significant difference in gross Inventory turnover ratio
ANOVA
Source of
Rows 23.13988 4 5.78497 2.572524 0.077751 3.006917
Columns 178.9805 4 44.74512 19.89775 4.72E-06 3.006917
Error 35.98004 16 2.248753
Total 238.1004 24
Interpretation:
is 2.57 and 19.89.
rejected.
(8) Debt Equity Ratio
The Debt equity ratio a financial ratio indicating the relative proportion
of shareholders' equity and debt used to finance a company's assets. Closely
related to leveraging, the ratio is also known as risk, gearing or leverage.
The two components are often taken from the firm's balance sheet or
statement of financial position (so-called book value), but the ratio may also
be calculated using market values for both, if the company's debt and equity
are publicly traded, or using a combination of book value for debt and
market value for equity financially.
Debt Equity ratio = Total liabilities ÷ Total shareholders' equity
2012-13 0.51 0.49 0.83 0.16 1.15 3.14 0.628
2013-14 0.40 0.23 0.58 0.06 1.36 2.63 0.526
2014-15 0.29 0.13 0.34 0.10 0.96 1.82 0.364
2015-16 0.19 0.45 0.14 0.04 0.66 1.48 0.296
2016-17 0.15 0.42 0.12 0.01 0.86 1.56 0.312
Ci 1.54 1.72 2.01 0.37 4.99 10.63
Avg. 0.308 0.344 0.402 0.0740 0.998 2.126

1.6
1.4
1.2
1 SUPREME
PLASTIBENDS
0.8
NILKAMAL
0.6 VIP
COSMO
0.4
0.2
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
VIP which is 0.16.
which is 0.06.
which is 0.10.
which is 0.04.
which is 0.
F – test:
 Ho = There is no significant difference in Debt Equity ratio within the

 H1 = There is significant difference in Debt Equity ratio within the
ANOVA
Source of
Rows 0.422704 4 0.105676 3.912332 0.021142 3.006917
Columns 2.361544 4 0.590386 21.85724 2.55E-06 3.006917
Error 0.432176 16 0.027011
Total 3.216424 24
Interpretation:
is 3.91 and 21.85.
 3.91 and 21.85 are more than to table value of ‘F’ at 5% level of significance
is 3.00.
rejected.
(9) Long term debt equity Ratio
The ratio is calculated by taking the company's long-term debt and dividing it by
the book value of common equity. The greater a company's leverage, the higher
the ratio. Generally, companies with higher ratios are thought to be more risky.
A high ratio usually indicates a higher degree of business risk because the
company must meet principal and interest on its obligations. Potential creditors are
reluctant to give financing to a company with a high debt position. However, the
magnitude of debt depends on the type of business. For example, a bank may have
a high debt ratio but its assets are generally liquid. A utility can afford a higher
ratio than a manufacturer because its earnings are more stable.
Long term debt equity ratio = Long-term debt ÷ (Common stock + Preferred stock)
2012-13 0.29 0.12 0.26 0.16 1.15 1.98 0.396
2013-14 0.27 0.12 0.20 0.06 1.36 2.01 0.402
2014-15 0.21 0.18 0.09 0.10 0.96 1.54 0.308
2015-16 0.05 0.19 0.02 0.04 0.66 0.96 0.192
2016-17 0.01 0.19 0.07 0.02 0.86 1.15 0.23
Ci 0.83 0.8 0.64 0.38 4.99 7.64
Avg. 0.166 0.16 0.128 0.076 0.998 1.528

1.6
1.4
1.2
1 SUPREME
PLASTIBENDS
0.8
NILKAMAL
0.6 VIP
COSMO
0.4
0.2
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
which is 0.12.
which is 0.
 In 2016-17, the higher ratio of cosmos is 0.86 and the lower ratio of
Nilkamal which is 0.
.
F – Test:
 Ho = There is no significant difference in Long term Debt equity ratio

 H1 = There is significant difference in Long term Debt equity ratio
ANOVA
Source of
Rows 0.180456 4 0.045114 3.122833 0.044585 3.006917
Columns 3.021816 4 0.755454 52.29322 5.48E-09 3.006917
Error 0.231144 16 0.014447
Total 3.433416 24
Interpretation:
is 3.12 and 52.29.
 3.12 And 52.29.are more than to table value of ‘F’ at 5% level of significance
is 3.00.
rejected.
(10) Operating Profit Margin Ratio:-
The operating profit margin ratio indicates how much profit a company makes
after paying for variable costs of production such as wages, raw materials, etc. It is
also expressed as a percentage of sales and then shows the efficiency of a company
controlling the costs and expenses associated with business operations.
Furthermore, it is the return achieved from standard operations and does not
include unique or one time transactions. Terms used to describe
operating profit margin ratios this include the following:
Operating profit margin = Operating income ÷ Total revenue
Where,
Operating Income = gross profit – operating expenses
year Supreme Plastibends Nilkamal VIP Cosmo Ri Avg.
2012-13 15.73 7.93 7.93 7.82 7.44 46.85 9.37
2013-14 14.85 10.13 8.75 8.34 8.24 50.31 10.062
2014-15 15.65 10.27 7.83 7.29 8.27 49.31 9.862
2015-16 15.49 11.44 11.47 8.46 13.67 60.53 12.106
2016-17 17.06 11.11 11.10 9.38 11.88 60.53 12.106
Ci 78.78 50.88 47.08 41.29 49.5 267.53
Avg. 15.756 10.176 9.416 8.258 9.9 53.506
18
16
14
12
SUPREME
10 PLASTIBENDS
NILKAMAL
8
VIP
6
COSMO
4
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
which is 8.27.
 In 2015-16, the higher ratio of Supreme is 115.49 and the lower ratio of VIP
which is 8.46.
which is 11.88.
F – Test:
 Ho = There is no significant difference in Operating Profit Margin

ratio within the samples & between the samples.
 H1 = There is significant difference in Operating Profit Margin ratio
ANOVA
Source of
Rows 34.15926 4 8.539816 6.755924 0.002204 3.006917
Columns 170.4486 4 42.61216 33.71086 1.31E-07 3.006917
Error 20.22478 16 1.264049
Total 224.8327 24
Interpretation:
is 6.75 and 33.71.
 6.75 and 33.71..are more than to table value of ‘F’ at 5% level of significance
is 3.00.
rejected.
(11) Asset Turnover Ratio :-
The asset turnover ratio is an efficiency ratio that measures a company’s ability to
generate sales from its assets by comparing net sales with average total assets. In
other words, this ratio shows how efficiently a company can use its assets to
generate sales.
The asset turnover ratio is calculated by dividing net sales by average total
assets.
2012-13 3.23 2.48 2.13 2.80 1.49 12.13 2.426
2013-14 3.09 2.73 2.18 3.23 1.77 13 2.6
2014-15 3.04 2.86 2.56 3.26 1.75 13.47 2.694
2015-16 2.10 2.33 2.82 3.54 1.50 12.29 2.458
2016-17 2.86 1.99 2.77 3.41 1.43 12.46 2.492
Ci 14.32 12.39 12.46 16.24 7.94 63.65

Avg. 2.864 2.478 2.492 3.248 1.588 12.67
3.5
2.5 SUPREME
PLASIBENDS
2
NILKAMAL
1.5 VIP
COSMO
1
0.5
0
2012-13 2013-14 2014-15 2015-16 2016-17
Interpretation:
which is 1.77.
which is 1.75.
which is 1.50.
which is 1.43.
F – Test:
 Ho = There is no significant difference in Asset turnover ratio within

 H1 = There is significant difference in Asset turnover ratio within the
ANOVA
Source of
Rows 0.2458 4 0.06145 0.529844 0.715584 3.006917
Columns 7.59256 4 1.89814 16.36645 1.64E-05 3.006917
Error 1.85564 16 0.115978
Total 9.694 24
Interpretation:
is 0.52 and 16.36.
rejected.
(12) Investment turnover Ratio:-
The investment turnover ratio compares the revenues produced

by a business to its debt and equity. The ratio is used to evaluate
the ability of a management team to generate revenue with a
specific amount of funding. The "turnover" part of the term
indicates the number of multiples of revenue that can be
generated with the current funding level. The formula for the
investment turnover ratio is to divide net sales by
all stockholders' equity and outstanding debt.
Investment Turnover Ratio =

Revenues / (Stockholders' Equity + Debt)
2012-13 8.12 6.91 6.42 4.78 10.21 36.44 7.288
2013-14 7.96 8.10 6.76 4.44 14.40 41.66 8.332
2014-15 10.17 11.91 6.89 4.78 15.98 49.73 9.946
2015-16 5.98 9.83 5.50 5.63 9.71 36.65 7.33
2016-17 6.44 8.62 5.28 6.02 13.76 40.12 8.024

Ci 38.67 45.37 30.85 25.65 64.06 204.6
Avg. 7.734 9.074 6.17 5.13 12.812 40.92
18
16
14
12
SUPREME
10 PLASTIBENDS
NILKAMAL
8
VIP
6
COSMO
4
0
2012-13 2013-14 2014-15 2015-16 2016-14
Interpretation:
VIP which is 4.78.
which is 4.44.
which is 4.78.
 In 2015-16, the higher ratio of Plastibends is 9.83 and the lower ratio of
F – Test:
 Ho = There is no significant difference in Investment turnover ratio

 H1 = There is significant difference in Investment turnover ratio within
ANOVA
Source of
Rows 23.4214 4 5.85535 2.624355 0.073688 3.006917
Columns 178.9805 4 44.74512 20.05467 4.48E-06 3.006917
Error 35.69852 16 2.231158
Total 238.1004 24
Interpretation:
is 2.62 and 20.05.
rejected.
FINDING
S
FINDING
At last finding help to under the conclusion of project. In this showing that in how
5 companies work and what is conclusion from the ratio of and position the
company.
(1) Gross Profit Ratio

Overall plastic industries are 42.366 during the period in this calculation
value of Fc (5.18) is more than table value Ft (3.01) so, null hypothesis is
rejected. There is significant difference in Gross profit ratio within the
(2) Net Profit Ratio

rejected. There is significant difference in Net profit ratio within the
(3) Current Ratio

value of Fc (1.50) is less than table value Ft (3.01) so, null hypothesis is
accepted. There is no significant difference in Return on capital Employed
(4) Fixed Asset Turnover Ratio:-

Overall plastic industries are 14.58 during the period in this calculation value of Fc
(0.56) is less than table value Ft (3.01) so, null hypothesis is accepted. There is no
significant difference in Return on capital Employed ratio within the samples &
between the samples.
(5) Total Asset Turnover Ratio

Overall plastic industries are 12.266 during the period in this calculation value
of Fc (1.31) is less than table value Ft (3.01) so, null hypothesis is accepted.
There is no significant difference in Return on capital Employed ratio within
(6) Debtors Turnover Ratio

accepted. There is no significant difference in Return on capital Employed
(7) Inventory Turnover Ratio

accepted. There is significant difference in Return on capital Employed ratio
(8) Debt Equity Ratio
rejected. There is significant difference in Return on capital Employed ratio
(9)Long term Debt Equity Ratio

(3.12) is more than table value Ft (3.01) so, null hypothesis is rejected. There is no
(10) Operating Profit margin Ratio

rejected. There is significant difference in Return on capital Employed ratio
(11) Asset Turnover Ratio

accepted. There is significant difference in Return on capital Employed ratio
(12)Investment Turnover Ratio
(2.62) is less than table value Ft (3.01) so, null hypothesis is accepted. There is no
STRENGTH
 Hard working worker and Regularity in work is the main strength.
 The quality of the product, as well as its reasonable price is the second strength.
WEAKNESS
 Shortage of raw materials, controlling daily rejection.
 Price of Raw material is not stable.
OPPORTUNITY
“Opportunities do not come itself.”-It is rightly said. So, one have to grab
opportunities or to recognize them in time.
 Untapped rural market.
 Rising income level.
 Large domestic market.
 High consumer goods spending.
 Marketing department has to do good advertisement and build brand
awareness in the market.
 Job rotation, job enlargement and job enrichment needs to be done
frequently which would motivate an employee to do better.
 Recruitment and selection process should be more transparent.

Ratio Analysis in Plastic Industry

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Ratio Analysis in Plastic Industry

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SHRI J.H.

BHALODIA WOMEN’S COLLEGE,

FINANCIAL PROJECT RESEARCH REPORT

PREPARED BY - DHINGANI RAJAL S.

I, undersigned Dhingani Rajal S. the student of B.B.A.

This work has not been previously sub`fff1mitted to any

It is my great pleasure to present this report .I am heartily thankful to all the

I would like to express my gratitude towards our Principal N.M.KANANI

DATE: - Yours faithfully

Small scale industry is an important part of Indian economy. It provides

As a student of B.B.A., one should have basic & sufficient knowledge

Sr. no. Particular Page

Sr. no. Particular Page no.

The Indian plastics market is comprised of around 25,000 companies and

Plastics are the common name for manmade polymers.

Here are 10 of the most common thermoplastics used in injection molding.

3. Polyethylene Terephthalate (PETE or PET):-

Supreme industries is the plastic

Nil Kamal is a leading plastic company

A VIP industry limited is placed 6th in

Last on this list of Cosmo films, a

shape is formed it is cooled by air or water.

A catch-all term for a variety of processes, including bonding,

 Worldwide plastics production rose to 280 million tons in 2011, according to

 From 2010 to 2016, global plastics consumption is expected to grow by an

 About 4% of the petroleum consumed worldwide each year is used to make

 In Europe, 26%, or 6.6 million tons, of the post-consumer plastic produced

 In the United States, only 9% of post-consumer plastic (2.8 million tons)

2.5 million 9.5 millions

Rs. 35,000 crore Rs. 1,33,245 crore

US $ 1900 US $ 10215 millions

Rs. 6200 crore Rs. 15990 crore

HISTORY OF SUPREME INDUSTRY:-

Supreme industries incorporated in s1942 manufactures a wide range of

COMPANY PROFILE OF SUPREME INDUSTRY

Date of Establishment 17-02-1942

Corporate Address 612, Raheja Chambers, Nariman Point,

Management Detail Chairperson – B.L.Taparia

Business Operations Plastic Products

Financials Total Income –

Company Secretary R.J. Saboo

Bankers & Auditors Chhogmal & Co.

Traded AS BSE : 509930

MISSION & VISION OF SUPREME INDUSTRY

- To conduct business with ethical practice and WALK OUR TALK.

- To grow business with dignity & respect.

HISTORY OF NILKAMAL INDUSTRY

Nilkamal was incorporated on 5th December1985 as Creamer

COMPANY PROFILE OF NILKAMAL INDUSTRY

Type Public Limited Company

Traded as BSE: 523385

Founders Vaman Parekh &

Headquarters Mumbai, Maharastra

Revenue Rs.21,654.7 million

MISSION & VISION OF NILKAMAL INDUSTRY

- Make Nilkamal the leader in pure chosen markets by creating an environment to

VIP manufactures an array of products and provides numerous different services

COMPANY PROFILE OF VIP INDUSTRY

Traded as BSE : 507880

Headquarters Mumbai, Maharashtra

Area Served India

Revenue Rs. 6368.0 million

shape is formed it is cooled by air or water. 