RESEARCH SYNOPSIS

ON
ANALYSIS OF FINANCIAL STATEMENT

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

Of

I.K.G. Punjab Technical University

By
CHANAKYA DUTT
BBA Semester 6th
ROLL NO. 1723365

UNDER THE SUPERVISION OF

MS.ROOPIKA MALHOTRA

Chandigarh Business School of Administration, Landran, Mohali

INTRODUCTION:
Incepted in the year 1993,INDOSAW was established with an
objective to be recognised as one of the India’s leading
manufacturers and exporters of porcelian tableware and other
creamery products

The combination of cutting edge technology and pro active

client service has helped us to meet the exacting requirements
of our clients and industry standards .Our experience with a
wide variety of industry group allows us to continually offer
proven technologies creatively to meet unique challenges

Our goal is to design and manufacture quality tableware prdoucts

that consistently meets our clients requirements and needs .
INDOSAW delivers European quality at Indian prices.
LITERATURE REVIEW :

 A review of completed and ongoing study has been conducted

to identify current knowledge or methodologies that may be
appropriated for the study of financial analysis. The review of
literature and research in progress address the following
aspects:

1. Manish Mittal and Arunna Dhademade (2005) : they found

that higher profitability is the only major parameter for evaluating banking
sector performance from the shareholders point of view. It is for the banks to
strike a balance between commercial and social objectives. They found that
public sector banks are less profitable than private sector banks. Foreign banks
top the list in terms of net profitability. Private sector banks earn higher non-
interest income than public sector banks, because these banks offer more and
more fee based services to business houses or corporate sector. Thus there is
urgent need for public sector banks to provide such services to stand in
competition with private sector banks.

2. I.M. Pandey (2005): An efficient allocation of capital is the most

important financial function in modern times. It involves decision to commit
the firm's funds to the long term assets. The firm’s value will increase if
investments are profitable and add to the shareholders wealth. Financial
decisions are important to influence the firm’s growth and to involve
commitment of large amount of funds. The types of investment decisions are
expansion of existing business, expansion of new business and replacement
and modernization. The capital budgeting decisions of a firm has to decide the
way in which the capital project will be financed. The financing or capital
structure decision. The assets of a company can be financed either by
increasing the owners claims on the creditors’ claims. The various means of
financing represent the financial structure of an enterprise.

3. Medhat Tarawneh (2006) financial performance is a dependent

variable and measured by Return on Assets (ROA) and the intent income size.
The independent variables are the size of banks as measured by total assets of
banks, assets management measured by asset utilization ratio (Operating
income divided by total assets) operational efficiency measured by the
operating efficiency ratio (total operating expenses divided by net income)

4. Vasant desai (2007): The Reserve Bank of India plays a very vital role.
It is known as the banker’s bank. The Reserve Bank of India is the head of all
banks. All the money formulations of commercial banks are done under the
Reserve Bank of India. The RBI performs all the typical functions of a good
central bank as it is involved in planning the economy of the country. The main
function is that the RBI should control their credit. It is mandatory for the Bank
to maintain the external value of the rupee. Major function is that it should
also control the currency.
OBJECTIVES OF THE STUDY :

The objective decides where we want to go, what we want to achieve

and what is our goal or destination. The objective of “A STUDY OF
Analysis of Financial Statement of INDOSAW industries is to –

General Objectives :
The key objective is to analyze the financial performance of
INDOSAW Industrial products PVT.LTD.

Specific Objectives:
There are some specific objectives also. This are-
 To analyze the financial statements of INDOSAW.
 To calculate the different financial ratios.
 To understand the implications in analyzing and interpreting
the financial ratios.
 To identify the findings and raise possible recommendations for
Sudha
RESEARCH METHODOLOGY
Research methodology in a way is a written game plan for conducting
research. Research methodology has many dimensions. It includes not
only the research methods but also considers the logic behind the
methods used in the context of the study and complains why only a
particular method of technique has been used. The basic task of
research is to generate accurate information for use in decision
making. Research can be defined as the systematic and objective
process of gathering, recording and analyzing data for aid in making
business decisions.

As the project involves analyzing of financial structure, the research is

exploratory in nature, covering financial parameters and come of the
important ratios to carry out research.
DATA COLLECTION METHOD:
The data will be collected using both by primary data collection
methods as well as secondary sources.

(i) PRIMARY DATA- Most of the information will be

gathered through primary sources. The methods that will
be used to collect primary data are books, research,
newspapers, web sites etc.

(ii) SECONDARY DATA – Secondary data of this project on

INDOSAW will be collected from –
 Annual Report of INDOSAW
 Different text books and journals.
 Different kind of reports and articles related to
study.
 Some of my course elements as related to this
report.
 Web based support from the internet and intranet.

TIME FRAME OF THE DATA COLLECTION:

2 Months

METHOD OF SAMPLING:
The technique used for conducting the study was Convenience
Sampling Technique as sample of respondents was chosen according
to convenience.

STASTICAL TOOLS:
The tools used in this study were MS-EXCEL, MS-WORD. MS-EXCEL
was used to prepare pie- charts and graphs. MS-WORD was used to
prepare or write the whole project report.

REPORT WRITING AND PRESENTATION

Report Encompasses – Charts, diagrams

METHOD YOU WILL USE TO CLASSIFY DATA:

Data Analysis & Interpretation – Classification & tabulation
transforms the raw data collected in to useful information by
organizing and compiling the bits of data contained i.e., observation
and responses are converted in to understandable and orderly
statistics are used to organize and analyze the data.

¨ Analysing Liquidity using Balance sheet.

¨ Calculating the Current Ratio of the Firm.

¨ Analysing the Activity of Firm

¨ Analysing the Debt of Firm

FORMULA USED:-

 Net Working Capital=Total Current Assets-Total Current

Liabilities
 Current Ratio=Current assets/Current liabilities
 Quick (Acid-test) Ratio= (Current assets-Inventory)/Current
liabilities
 Inventory Turnover = Cost of Goods Sold for the Year / Average
Inventory
 Fixed Asset Turnover=Sales/Net Fixed Asset
 Total Asset Turnover=Sales/Total Asset
 Debt Ratio=Total liabilities/Total assets
 Debt-equity Ratio =Long –term debt/stockholder’s equity
 Gross Profit Margin = (Sales-COGS)/Sales=Gross Profit/Sales
 Operating Profit Margin=Operating Profit/Sales
 Net Profit Margin=Net Profit after Tax/Sales
 Return on Investment=Net Profit after Tax/Total Assets
 Return on Equity=Net Profit after Tax/stockholder's equity
 CONCLUSION
1. After analyzing the trading a/c we came to know the company had
efficient performance.
2. After analyze the profit and loss statement we realized the profits
were good as per companies past performance
. 3. In the end when we analyze the balance sheet the company has
increase his performance as per past.
4. As far as ratios are concerned the companies short term financial
positions is satisfactory.
5. Up to the mark performance.
6. From the point of view of long term financial positions the company’s
debt equity ratio is zero which means company is less dependent on
outsides loans.
7. Cash profit ratio, return on shareholders fund ratio earning are
increasing every year.
CHAPTERISATION :
Introduction to company’s profile
 Review of Literature
 Objective , Scope and Limitation
 Research Methodology
 Conclusion
 References
REFERENCES:

Books:
 Gupta, Shashi K, Management Accounting; Kalyani Publishers, Ed. 2003
 Kothari, C.R.,Research Methodology; WishwaParkashan, Ed. 2004
 Annual General Report of the company
 Documents & files of INDOSAW Industrial products pvt.ltd.AMBALA
 The source of data regarding INDOSAW industial products
pvt.ltd.AMBALA Profile Details is collected from the annual reports of
INDOSAW and some part of the profile is also taken from the following
websites

Websites:

www.indosaw.com
www.indosawedu.com
www.wikipedia.org
www.slideshare.net
www.academia.edu
www.projecthelpline.com

NEWAPAPERS:

 ECONOMIC TIMES
 BUSINESS STANDARD