A Summer Training Project Report On Financial System Manual of R.K.

Marble Submitted to: Rajasthan Technical University, Kota In partial fulfillment for the award of degree of Master of Business Administration

Under the supervision of: Mr.MADAN LAL LODHA

(H.R.Manager)

Submitted by: VINITA S. SHARMA

MBA Semester II

2010-12 Management and Commerce Institute of Global Synergy, Ajmer (Approved by AICTE, affiliated to RTU Kota)

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Miss Neha Somani mam for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him/them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/they had provided to me with all stages of this project. I would also like to thank the supporting staff Mr. Ravi Choudhry, for their help and cooperation throughout our project

(Signature of Student) NAME OF THE STUDENT VINITA S. SHARMA

PREFACE
When the work is started or study is started on any topic, it will have its own significance. As it guides and defines the study process and the areas to be included in order to reach the completion of the study. In my case, firstly I discuss the summary of project so that the broad area of the study can be made. In the process introduction of the company will come after the summary and then the main area of study will come. The topic mainly refers to different system manual, so that every systems current procedure are available here, my sincere effort and the contents will surely justify it.

CONTENTS
1. Cover page 2. Certificate 3. Acknowledgement 4. Preface 5. Introduction of the organization 7. Introduction of the project 7.1 7.2 7.3 7.4 7.5 Need for the study Objective of the study Research Methodology Analysis of the study ERP System

8. Use of Information System in Industry 9. Financial system 10. Financial statement 11. System manual: 11.1 11.2 11.3 11.4 11.5 Purchase and store system Production system Sales system Process control system Accounting system

12. Financial analysis 13. Extra function / facilities 14. I.T System 15. SWOT Analysis 16. Conclusions and Findings 17. References and Appendix

INTRODUCTION OF THE ORGANISATION

THE COMPANY:

The Patni group of Kishangarh-District Ajmer established

R. K. Marble Private

Limited in 1989, to help serve increasing National and international demands for Indian marble. Since then we have enjoyed exponential growth and export to many markets worldwide including European Union countries, the Middle East, Japan, other parts of Asia, China and North America etc. The Company dedicated to bringing the finest marble to the world. For over twenty years, the name is synonymous with grandeur, finesse and quality that can only be expected from the most superior class of marble. An ISO 9001:2000 certified company, R.K. Marble has set benchmarks in the mining, processing and finishing of marble. An annual production of over 1.5 Million Tonnes (equivalent to more than 60,000 sq. meters per day) has earned the company a place in the Guinness Book of World Records as the largest producer of marble in the world, the group is now geared up to scale newer heights and achieve the impossible. Our success is based upon our ability to respond flexibly to our customer's individual needs for both large and small projects, our experience and detailed knowledge of the marble industry, our competitive prices and the excellent comprehensive service we provide for a very wide range of materials.

We have supplied marble for many major projects including palaces, temples, mosques, embassies, international hotel chains and office buildings as well as commercial works requiring large quantities of competitively priced materials.

THE PRODUCTS :

Wonder marble The WONDER MARBLE produced at the R.K. Majoli mines comes to you in heart warming shades of deep and dark red, brown to rose patches in creamy base coupled with abrasion resistant fine grained form, lustre and reflective gloss which makes it truly a masterpiece for a lifetime. Wonder Marble is available in 4 exotic colours:

Milky Opal: Creamy base: Shades of beige & mauve Pink Pearl: Ecstatic pink & brown tones Garnet Rush: Reddish Jasper Jazz: Chocolate, red & brown

Imported Marble
R. K. Marble brings you the finest marble from around the globe. So that, you can lend your home and office space an international look and feel. Go on, explore the exclusive collection and youll not settle for anything else. After all, true beauty speaks a universal language. Open your eyes to the grandeur of stunning Italian, Spanish, Turkish marble and more from many other such exotic locations thatll simply take your breath away. Just one glance and the elegant textures in myriad hues with a pinch of sophistication will compel you to give in to their sheer magnificence, almost instantly. Ocean Black After introducing the world to the grandeur of Wonder Marble, R. K. Marble now presents 90 degree stone, a novel concept thatll win the world over, once again. Simply because, now you have the freedom and power to choose the stone finish, thickness and size that you like. The first offering under the brand name 90 degree stone is Ocean Black. Though geologically, Ocean Black is a Phyllite stone, it is infact far above the slate in the chain metamorphism. Ocean Black comes to you from Indias exclusive Phyllite quarry, which is owned by R. K. Marble. So go on, give in to the purest element of nature. Style it, the way you like it.

Flawless marble Discover the divinity of white with the smoothness of pearls. Welcome to the world of Flawless White marble from Vietnam. Chaste and exquisite, Flawless White marble is

naturally white. It personifies beauty, strength and durability. A fine grained rock, it contains more than 99% calcite making it one of the purest marble in the world. The Flawless White is available in random size blocks, slabs and tiles. Highly versatile, Flawless White marble has varied usages. Apt for both interiors and exteriors, it is extensively used for all types of high grade commercial buildings and residential spaces. It is also used for high quality daily use products such as bath tubs, wash basins and souvenirs such as statues. Go ahead and discover the smooth world of Flawless White from Vietnam.

QUALITY ASSURANCE : Famous from antiquity, for the high quality the incomparable clearness and resistance, the Morwad Marble from R. K. Marble Group have constituted the base of many big monuments and works of art in India. Nowadays R. K. Marble Group continues to supply the domestic market with Morwad Marble.

Zoom into the corner stone of Majoli, in Madhya Pradesh, India to scale the mesmeric appeal of a Guinness Record Holder, engaged as the leading producer of marble in the world. The exotic Majoli mine is the most popular production ground of world's choicest Wonder Marble, that's astonishing and breathtaking in numerous shades. Wonder Marble's color panorama and natural beauty makes it the right choice for flamboyant users. Our attractive range can be floored to encompass living rooms, drawing arrangements, dining spaces, hotel lobby's, pool sites, wall claddings, lounges and many more.

MINES : World famous Morwad Mines of the R. K. Marble Group are situated 15 Kms from Rajnagar on Udaipur - Rajnagar - Ajmer National Highway No.8. It is well connected by metalled road from Rajnagar. The nearest Airport is at Dabok which is 68 Kms from the mines and 19 Kms from Udaipur. Nearest Railway station is at Kankroli, which is 20 Kms from the mines. Electrical power line of 11KV from State Viduyat Nigam is extended up to mines. Captive Power generation to the tune of 2500 KVA is onstand-

by. Four Captive Diesel Dispensing Pumps with 80 KL storage capacity and Explosive Magazine with 500 kg storage capacity are maintained at mines. An overhead tank of 1.5 lac liters capacity along with a filter plant is maintained for meeting the requirement of drinking water and domestic use. The quality of water is potable. Requirement of water for industrial use is met with the help of water tanks filled from tube wells from the nearby areas. The Safety Management is given utmost importance. Pit Safety Committee meetings are organized regularly for taking stock of safety preparation, accident analysis, and suggestions for remedial measures for achieving ZERO accident status. The personal protective equipment and safety gadgets are provided to employees and all out efforts are made to inculcate the habit of their regular use. Facilities of Modern store and well equipped workshops for repair and maintenance of HEMM and other field machinery are available at mines. Telephone connections, with a fax connection and two hot lines between Mines to Udaipur and Kishangarh office are available at mines site. Base mobile and walky-talky sets are well maintained for smooth communication amongst the staff/workers/officers. A four-bed dispensary with Para medical staff and Doctor along with an ambulance is available at mines. A well-equipped Group Vocational Training Center is established at site to provide initial training to new entrants, refreshers and special training to existing employees OEMS and other service agencies.

AWARDS:

AWARD NAME
Guinness World Records Samman Patra Jain Gaurav Entry in Limca Books of World Records Padm Divakar Highest Income tax payer Award (Individually to Syt. Ashok Patni, Syt. Suresh Patni, Syt.Vimal Patni) Udyog Patra Award State Level Bhamashah Award Best Annual Report Award for Rajasthan Based Companies Indira Priyadarshini Award Social Welfare & Development Appeared in Guinness World Record Books ISO 9001 : 2000 ISO 14001 Model Marble Quarry award - Best Mechanised Quarry- First Prize LAFP Award The Best Stall for Stone & Stone Products (Outdoor) SEERI Environment Award Corporate Governance Award

AWARDED BY
Guinness World Records Income Tax Department, Udaipur All India Digamber Jain Samaj, Sikar Limca Books of World Records Shree Digamber Jain Atishaya Kshetra, Padampura, Jaipur Income Tax Department, Ajmer Institute of trade and Industrial Development, New Delhi Education Department, Bikaner Institute of Chartered Accountants of India, Jaipur National Publication, New Delhi Lions Club. Udaipur Guinness World Records BVQI, USA BVQI, USA Federation of Indian Mineral Industry (FIMI) & All India Granite & Stone Association (AIGSA) Directorate General of Mines Safety Centre for Development of Stones (CDOS) Society for Environment Education & Research Rajasthan Chamber of Commerce & Industry

YEAR
1998, 2000, 2001... 1998 1998 1998,1999 1999

2000

2001 2001 2001 2001 2001 2003... 2003 2003 2003 2003 2003 2004 2004

INTRODUCTION OF THE PROJECT

7.1 NEED FOR THE STUDY To know about the different types of systems manual being used in R.K Marble at present . 7.2 OBJECTIVES OF THE STUDY To know about the basic financial system in company. To know about the process and system of company workings. 7.3 RESEARCH METHDOLOGY Research methods which are conventionally being used for financial analysis of comparative study of previous data of balance sheets and profit and loss a/c 2-3 years as a part of AS-3. Data collection: data from the secondary source.

7.4 ANALYSIS OF STUDY Financial system Financial statement System manual 1. Purchase and store system 2. Production system 3. Sales system 4. Process control system 5. Accounting system

7.5 ERP SYSTEM

The user interface of the ERP software is implemented as separate layer called Presentation layer which contains validations, code for programming the controls and calling code of the Business layer. Master programming TreeView control - display multiple relationships between groups and accounts and Bill of materials. Master programming DataGridView control - for accepting multiple items in Sales orders, Sales invoice, etc. Master ERP software application architecture design. Learn how to use Data Access layer component in the Business layer of the ERP software. Learn how to use Business Layer component in the Presentation layer of the ERP software. Create menus and sub menus programmatically for the ERP software. Design and program the Bill of materials feature including table structures. Accepting and handling raw materials, sub assemblies, finished products and consumables. Understand the difference between logical vs physical layers. Optimize business objects to implement multiple business processes in an organization. Optimize data entry forms (windows forms) to implement multiple business processes in an organization. Implement business rules in the Business layer. Format and set the datagrid and bind the grid with the Dataset. Retrieve, Traverse the dataset and fill the Listbox. Steps to interact with the Data Access Layer. Implement double entry rules in an ERP software. Transaction management between Layers using TransactionScope object. Add checkbox control in the datagrid to tick the packing and shipping sales orders. Place items under different item types - Raw material, Finished product, Consumable or Sub assembly. Retrieve components for a parent item in the Bill of materials product structure. Create reports like Stock ledger, Cash book, General ledger, Trial balance, Income statement, Pending sales orders, back orders etc. Update both finance and inventory tables from sales and purchase invoice transactions.

Payroll accounting software A payroll accounting software records the salaries of employees working in an organization and enables prompt payment ensuring a certain fairness as all are paid in a particular time frame. A payroll accounting software starts with generating the pay slips. To generate a pay slip the software should be able to record attendance, record employee details, pay details, leave details, grading, and incentive details if any. Based on this, the software should be able to generate monthly and yearly provident fund, month and yearly professional tax, ESI etc, tax returns, salary certificate, gratuity valuation, bank statement, leave encashment valuation, MIS reports, increment details and deductions. Payroll forms a part of HR. If an HR feature is provided, it should ideally be able to monitor the employees work performance, help the management in identifying the areas where each employee can improve and thus assist in organizing training programs, selecting the areas of training, durations, results of the training and on the whole help in improving the organizations functioning.

Construction accounting software A construction firm requirements are different as they come. A good construction software will include modules for General Construction, Materials, Highway, Mechanical and other areas like sewer, oil pipelines etc. Audit trail, closing of books, job costing, general ledger, over/under billing, overhead allocation, constructionspecific payroll features, union reporting, certified Payroll reporting, payables and receivables. Many of the construction projects are executed on site. This necessitates special features like remote access, updation, and retrieval of data.

A construction order is an ongoing project in stages and is usually executed on receipt of payments for each stage. A good construction management software should be able to add new sub contractor in the middle of a project being executed and maintain subcontracts by job and sub-contract number. Generating and printing the sub-ledger, which includes not only invoices but also change orders, holdback amounts, amounts payable, and actual contract information for each sub-contractor. A good construction management software can record all costs related to a particular job or order and thus enable closer accounting control. Querying features include inquiry by PO status, payment status, order status, job status, and material receipt or dispatch status. Managing the sub contractors is a major requirement in any construction project and today most construction management software include features to closely manage them. Inventory control software is sold as a separate software. However, a construction software should include inventory control with features to track material flow to different projects, and their status.

8. Use Of Information System Information Systems (IS) Division - In todays world, business drives the technology. Different elements of business which need to work in cohesive manner needs different

technologies. For a seamless, integration operation, it is mandatory to integrate various application software. The experience of various technologies & business processes makes us the right choice for any such integration. Integration may be across any ERP, Business Intelligence Design, Project Management, PLM, Web Enabled; Software Integration can be across various Databases or Hardware platforms or Mobile Devices. We have full fledged software development center in which we have focusing on developing various kind of softwares. We develop the softwares using Structured Systems Analysis methodology. Processes are in place to ensure the delivery of Quality Software. Defect Analysis & Prevention is a way of life in Kamtech. Some of the processes are: Function Point Analysis method for estimating the size of the project. Planning. Daily, weekly and monthly monitoring of the progress of the project. Joint Reviews with customer at periodic intervals. Module wise periodic installation of the system and acceptance from customers. Configuration Management. Intra-project communication channels. Training of the team members. Information Systems Division activities: We closely work with the client to analyze the needs and map the same on process chart leading to the best available solution suiting to specific needs. Assessment and identification of the software solutions as per the requirement which can be customized for the specific functional area of the organisation IT Consultancy Quality Checks & Evaluations SAKSHAM ERP A Web based ERP Provide Sales & Marketing, Implementation & Technical Support Services for Packaged Software's.

 Internet / Intranet Solutions, EDI Solutions. Portal / Website Design and Development E-Marketing /Internet Marketing. Offshore Outsourcing services. Bar Coding & RFID (Radio Frequency Identification Device) Solutions, Implementation and Support Services Business Process Mapping Analysis, Identification, Sourcing & Implementation of IT solutions. Corporate training in knowledge fields of ERP and E-Commerce. E-Commerce - B2B and B2C Solutions. Knowledge Management. Customized Software Solutions, System Study, Analysis & Documentation, Software Testing, Data Processing, Customer Support, Search Engine Optimization, Technical Training Support and Maintenance. CD / Multimedia Presentations At Kamtech we believe in using IT for e-enabling the brick and mortar organizations and making them increase productivity thus becoming globally competitive. We provide best of the IT solutions for various industrial sectors.

9. Benefits of Computerized Accounting: Computerized Accounting Spreadsheets and accounting information systems require accountants to enter financial data into them, and then mathematical algorithms compute the information into the necessary ledgers and financial statements. Computerized systems also allow accountants to create trending analysis and report any variances quickly and accurately. Additionally, transactions from all company divisions are accessible through computerized accounting systems, giving accountants better access to financial information.

Computerized Accounting Benefits Computerized accounting offers several more benefits than manual accounting; accountants process more information quicker, formulas verify calculated totals and errors are less common. Accounting systems also are customizable by industry, allowing accountants the opportunity to use preset templates for their general ledger. Accountants also can store several years of financial information with relative ease, giving them the opportunity to review previous year's information without sorting through stacks of paper ledgers. Best Method Most companies will use a computerized accounting system for recording and presenting their financial information. This system allows companies to record business transactions accurately and generate financial reports quickly for management review. While the functions of manual accounting have changed, it will never go away completely. Accountants must review the information presented on financial reports from the accounting system and ensure that it is accurate and valid. Accountants must also ensure that all financial information follows the Generally Accepted Accounting Principles and any other guidelines from regulatory agencies.

FINANCIAL SYSTEM
When a business starts, it needs some type of fund in the forms of its capital. Then from where it will get funds, become a problem. When it is on small scale the funds of the owner will be sufficient but in the condition of large company own funds will not be sufficient. So in that condition there is other options of borrowing funds. Borrowing funds can be received from many parties like government, financial institutions, and other non- recognized institutions. So the requirement of the company can be fulfill by the OWN+BORROWED FUNDS . after getting funds the second most problem will be

allocation of fund. In which this fund should be invested. Mainly in business field major things are there Fixed assets Working capital Working capital is used for the smoothing flow the use of fixed assets. In working capital use, sincerity should be there. Working capital is used for the operational activities like :1. Purchase 2. Production 3. Process control 4. sales 5. accounting payment and collections

So, there should be such type of system so that working capital will not be blocked. After getting employed of working capital and fixed assets, here may be profit or loss. If there is profit, then the next problem will be that how much part of profit should be distributed or how much part of the profit should be kept in reserves of the company. So these decisions are called. Dividend decision Reserve keeping decision After discussion of all above matter on financial system, we may find that there are three main decisions 1. Funds requirement decision 2. Fund allocation decision 3. Profit distribution decision But according to the scope of the project, we will mainly focus on the operational part of financial system only. In this project mainly three questions arises which should be answered . What are the statements made in the financial system and there usefulness

 What are the system manual are currently being used in R.K Marble Pvt. Ltd. What are the analysis techniques should be used

FINANCIAL STATEMENT
Financial statements (or financial reports) are formal records of the financial activities of a business, person, or other entity. In British English, including United Kingdom company law, financial statements are often referred to as accounts, although the term financial statements is also used, particularly by accountants.

Financial statements provide an overview of a business or person's financial condition in both short and long term. All the relevant financial information of a business enterprise, presented in a structured manner and in a form easy to understand, are called the financial statements. There are four basic financial statements: 1. Balance sheet: also referred to as statement of financial position or condition, reports on a company's assets, liabilities, and Ownership equity at a given point in time. 2. Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time. Profit & Loss account provide information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state. 3. Statement of retained earnings: explains the changes in a company's retained earnings over the reporting period. 4. Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities. For large corporations, these statements are often complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.

Purpose of financial statements "The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions."[2] Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities and equity

are directly related to an organization's financial position. Reported income and expenses are directly related to an organization's financial performance. Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently." Financial statements may be used by users for different purposes:

Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with a more detailed understanding of the figures. These statements are also used as part of management's annual report to the stockholders.

Employees also need these reports in making collective bargaining agreements (CBA) with the management, in the case of labor unions or for individuals in discussing their compensation, promotion and rankings.

Prospective investors make use of financial statements to assess the viability of investing in a business. Financial analyses are often used by investors and are prepared by professionals (financial analysts), thus providing them with the basis for making investment decisions.

Financial institutions (banks and other lending companies) use them to decide whether to grant a company with fresh working capital or extend debt securities (such as a long-term bank loan or debentures) to finance expansion and other significant expenditures.

Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes and other duties declared and paid by a company.

Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.

Media and the general public are also interested in financial statements for a variety of reasons.

In practical life there are mainly two types of statements:1. Balance sheet 2. Profit and loss account Some statements are made in big companies like : Statements of changes in working capital Fund flow statement OBJECTIVES OF STATEMENTS 1. It gives information about cash flow of firm. 2. It also gives information about future financial position of firm. 3. It gives information about the utilization of resources. 4. It gives information about the earning capacity of firm and their analysis.

BALANCE SHEET Balance sheet is the most important statements in the financial statements. It shows information about liabilities and assets of the firm. The balance sheet is a statement which reports the values owned by the enterprise and the claims of the creditors and owners against these properties.

HOWARD AND UPTON The debt side of balance sheet can be seen in the other way like the sources and application of funds. In the application side those items will be added which are the assets of the firm like land & building, machine etc. and in the source of the fund side those items will be added which are the liabilities of firm like owner funds, borrowed capital etc. Explanation of Balance Sheet Items 1. Share Capital Share capital is the first item on the liabilities side of a balance sheet. Authorized and issued capital is shown giving the number of shares and their amount. The number of shares for which public has applied (subscribed capital) are mentioned along with the type of capital, i.e. preference share capital and equity share capital. If the capital is issued for other than cash, the amount of such capital is mentioned. The fact of issue of bonus share is also mentioned. Any unpaid calls are deducted from the called up capital. If forfeited shares are reissued, this amount is added to the paid-up capital.

2. Reserves and Surplus Under this heading, all those reserves which have been created out of undistributed profits are shown. Reserves are classified as capital reserves and revenue reserves. Capital reserves are the reserves which are not free for distribution as profits whereas revenue reserves are created out of appropriations of profits. Following items are included here: Capital reserves Capital redemption reserve Share premium account Other reserves

 Surplus, i.e. profit and loss account Proposed additions to reserves Sinking fund

The additions and deductions since last balance sheet will be shown under each head. The word fund in relation to any reserve should be used only where such reserve is specifically represented by earmarked investments. 3. Secured Loans All those loans against which securities are given are shown under this category. Debentures are shown under this heading. Loans and advances from bank, subsidiary companies etc. should be shown separately and the nature of securities should also be mentioned.

4. Unsecured Loans These are the loans and advances against which the company has not given any security. The items included here are deposits, loans and advances from subsidiary companies and loans and advances from other sources. Short-term loans from banks and other sources are also shown in this category. Short-term loans include those which are due for not more than one year on the balance sheet. Loans from directors, managers etc. should be shown separately under different sub-headings. This is done to show regard to them.

5. Current Liabilities and Provisions These are divided into current liabilities and provisions. In this category, following items are included:

(a) Current liabilities include the following: Acceptances Sundry creditors Subsidiary companies Advance payments and unexpired discounts Unclaimed dividends Other liabilities, if any Interest accrued but not paid on loans (b) Following items are included under provisions: Provision for taxation Proposed dividends Provision for contingencies Provision for provident fund scheme Provision for insurance, pension and similar staff benefits schemes Other provisions

Assets Side The assets are given under the following heads:

1. Fixed Assets Fixed assets are those which are purchased for use over a long period. These assets are meant to increase production capacity of the business. They are not acquired for sale but are used for a considerable period of time. The balance sheet is prepared to show

the financial position of the concern. These assets should be shown in such a way that balance sheet depicts true financial position of the business. Fixed assets are shown distinctly from each other, e.g., goodwill, land building, leaseholds, plant and machinery, furniture, railways sidings, patents, live stock, vehicles etc. These assets are shown at their original cost. Any additions and deductions during the year are shown separately. The amount of depreciation upto the previous year and during the current year is separately deducted from the assets. 2. Investments Investments are shown by giving their nature and mode of valuation. Investments under various sub-heads such as investments in government or trust securities, in shares, debentures and bonds, and in immovable properties are given separately in the inner column of the balance sheet.

3. Current Assets According to Alexander Wall, Current assets are such assets as in the ordinary and natural course of business move onward through the various processes of production, distribution and payment of goods, until they become cash or its equivalent by which debts may be readily and immediately paid. Current assets are either cash in hand and at bank or shortly convertible into cash. The assets like debtors and bills receivables are one step away from cash. The stocks-in-trade is considered to be two steps away from sales, which when made the collections will be undertaken. The commonly used method of valuation, i.e. cost price, is not strictly used while valuing stock. The stock is used either at cost or market price, whichever is low. This is done to avoid anticipating profits during inflationary conditions and taking into account losses if there is a fall in prices of stock. The debtors are shown after making a provision for bad and doubtful debts. The debtors, if more than six months old, are given separately. The amounts owned by directors etc., if included in debtors, are also separately mentioned. 4. Miscellaneous Expenditure Deferred expenditure is shown under this heading. Miscellaneous expenditure are the expenses which are not debited fully to the profit and loss account of the year in which

they have been incurred. These expenses are spread over a number of years and unwritten balance is shown in the balance sheet. The items under this heading are preliminary expenses, discount allowed on issue of shares or debentures, interest paid out of capital during construction etc.

Balance Sheet of .(name of the Company ) as on .(date on which balance sheet is prepared)

Liabilities

Rs.

Assets Fixed Assets Goodwill Land Building Households Railway Sidings Plant and Machinery Furniture Patents and Trade Marks Livestock Vehicles

Rs.

Share Capital Authorized-Shares of Rs.each Issued-Preference shares of Rs each Equity shares of Rseach Less calls unpaid Reserves and Surplus Capital Reserve Capital Redemption Reserve Share Premium Other reserves Profit and Loss Account Secured Loans Debentures Loan and advances from banks Loans and advances from subsidiary Other loans and advances Unsecured loans Fixed deposits Short term loans and advances Other loans and advances Current Liabilities and Provisions

Investments Government or trust Securities Shares, Debentures, Bonds A. Current Assets Loans and Advances Interest accrued Stores and Spare parts Loose tools Stock in Trade Work in progress Sundry debtors Cash and Bank Balances B. Loans and Advances Advances and loans to subsidiary Bills receivables

A. Current Liabilities Acceptances Sundry Creditors Outstanding Expenses B. Provisions Provision for Taxation Proposed Dividends For Contingencies For Provident Funds Scheme
For Insurance, Pension and other benefits

Advance Payments Miscellaneous Expenditure Preliminary Expenses Discount on issue of Shares and Debentures Other Deferred Expenses Profit and Loss Account (Debit Balance)

Profit and loss account or income statement

The statement of profit and loss is the condensed and classified record of the gains and losses causing change in the owners interest in the business for the period of time Gulhman H.G SOME ITEMS SHOULD BE DISCRIBED IN THE PROFIT & LOSS ACCOUNT Source of income cost of goods sold administrative expenses sales and distribution expenses depreciation other income-income from investment income tax

Relationship of Profit and Loss Account with Balance Sheet Profit and loss account provides the vital link between the balance sheet at the beginning of a period and the balance sheet at the end of that period. Profit and loss account deals with the costs incurred during the current period for the purpose of earning the related revenue. The impact of this is disclosed by the balance sheet. The balance sheet exhibits expenditure which is either outstanding or paid in advance, i.e. the unexpired benefits. The amount of net profit or loss reported by the profit and loss account is carried forward in the balance sheet showing their impact on various other terms disclosed in the balance sheet. Thus, balance sheet shows the transactions remaining for execution as a result of the revenue transactions of the profit and loss account. The preparation of profit and loss account precedes the working of the balance sheet and the balance sheet cannot be prepared without the preparation of the profit and loss account. The profit and loss account can be prepared without the balance sheet. However, absence of balance sheet will fail to disclose the impact of the revenue terms on the balance sheet which is the final resulting financial position of the business.

The balance of accounts given in the trial balance is obtained after the completion of double effect of the transactions mentioned in the ledger. Hence, Nominal account balances are transferred to and appear in either trading account or profit and loss account Balance of other accounts is carried forward and appears in the balance sheet The same balance, from within the trial balance, cannot, therefore, appear both in the trading or profit and loss account and in the balance sheet.

SINGLE STEP INCOME STATEMENT In this statement all the expenses and cost are deducted from the sales revenue.

INCOME STATEMENT FOR THE YEAR ENDED PARTICULARS Revenue Sales less returns Other incomes TOTAL REVENUE TOTALCOST & EXPENSES Cost of sales General expenses Selling expenses Depreciation Interest Non-operating expenses Provision for tax TOTAL COST NET PROFIT AFTER TAX DETAILS NET AMOUNT

Proposed dividend Income retained in business Cost of sales = opening stock + purchases closing stock

MULTY- STEP INCOME STATEMENT In the statement incomes are distributed in multiple head. So according to the requirement that income can be calculated.

INCOME STATEMENT FOR THE YEAR ENDED--------------------PARTICULARS SALES Less: cost of goods sold GROSS PROFIT LESS; OPERATING EXPENSES Administrative expenses Selling expenses Depreciation OPERATING PROFIT Add: other revenue Less: non- operating expenses DETAILS NET AMOUNT

PROFIT BEFORE TAX Less ; provision for tax NET PROFIT AFTER TAX Less; proposed dividend RETAINED SURPLUS

So financial statements are the useful for all the parties related to business firm. But with this there are some limitations of financial statements which are as follows: 1. Lack of provisions 2. Lack of exactness or completion 3. Incomplete information 4. Interim report 5. Hiding the real position 6. Lack of comparability 7. Historical costs These limitations are generated due to old concept and convention. But in the modern age these limitations can be finished.

SYSTEM MANUAL

So we have to know about the following system and their process. 1. Purchase and store system 2. Production system 3. Sales system 4. Process control system 5. Accounting system

11.1 PURCHASE AND STORE SYSTEM PURCHASE SYSTEM It has been decided that the purchase system will be as under :In case of purchase upto Rs.2000/- it can purchase directly by the stores department, after consulting rates from 2/7 suppliers and checking the quality of the product being purchased. In case of purchase above Rs.2000/- accounts manager will handle the purchases. The user department will forward their requisition. To stores department after checking the present stock position will forward the requisition to manager ( accounts ) The manager ( accounts ) will call quotations from atleast % parties and the quotation will be compare and purchase order will be placed by manager (accounts ) to the lowest quoted party. However, due regards also be given to the quality of the product. Before finalization of the order the matter will be discussed with user department and undersigned. As above procedure will take 2 days therefore, it should be ensure by the user department that they send requisition in due time and as far as possible emergency purchase should be avoided.

STORE SYSTEM

The store department has challenging assignments in hand. In view of proper handling of spares, store department is broadly classified as :STORE I & II STORE III STORE IV STORE I & II Meant for items used in machinery as spare are grouped and systematically placed either on racks or into individual bin box on the racks. STORE III Heavy machines part and barrels of oils used as lubricants are positioned in the store. STORE IV In view of hazard item that is chemicals used in filling and polishing of marble slabs this store is specially used for such type of items. Most modern business required accumulate method of inventory control, whether they are involved in outside sale or need to moniter equipment and supplies for internal use. The stores department situated at madanganj marble area is playing the lead role and maintaining the flow of work and productive activities by backing up the operations through supplies of various commodities . Whether it be workshop diesel generator set, hydraulic and pneumaticess, gang saw machines, dressing machine, gantry crane, diamond blade, water filter plant, and electronic panel and motors. The store department maintains the flow of parts and accessories to each production unit round the clock without the fear about the weather conditions or other hindrances. The store department works for 24hrs a day and constantly keeps a updating these stock of the required items related to any type of production unit. Since stores is fully computerized, resulting it is very easy to have a quick view of stock position. Most

items have its individual account, relevant transactions are recorded manually in respective account. Bin card, each bin card is predefined as how much quantity would be maintained. All the transactions made are checked daily and its notice any item goes lower than the predefined quantity are written down as required items and get procured according to our procedure like: PURCHASE Items in purchased if it is in demand and in not is stock, item is demanded for the first time or current stock of that particular item is limited. This is based on predefined quantity specified in bin card, when should the item be purchased so that sufficient quantity in stock can be maintained.

Items are purchased through:Store department (routine item worth of less than Rs 3000 /-based on defined limit in bin card). Manager purchased :- (item worth of more than Rs 3000/-) Purchase are made from an appreciated source of supply based on purchased requisition slip as per criteria defined in bin card is forwarded to manager purchase which reverted to store with the copy of purchased order. MATERIALS REQUIRED BY STORE FOR MAINTAINING DEFINED LIMIT OF STOCK Store department Requirement slip for purchase Manager purchase Materials required by production department Production department Requirement slip for purchase Manager purchase through store Disposal of bills

When material is approved, relevant particulars of bill is feeded in computer and taken out a computerized GR on the basis of suppliers bill and same are forwarded to words manager along with day book for verification the bill thereafter it is reverted to internal auditor afterwards it comes to manager account and finally the general manager approve the same and send to making payments. After all items received are properly classified, items are placed into respective bin box in store and entry made in individual bin card.

RECEIPT Materials when received from any source or station are receipted in store with reference to the purchase order/indent possessions with store department and inspected the same by technical personnel for as they are informed for such inspection. The quantity received is verified with quantity specified on the purchase order is checked by the store incharge. Deficiency, if any, noticed is taken up with the supplies for rectification. Excess supplies are either retained or returned to the suppliers as considered necessary by the appropriate personnel. RETURN If any manufacturing department is noticed in any of the items received, same is returned back to the suppliers through the format of gate pass either it can be non returnable gate pass or returnable. Non-returnable gate pass means materials has been rejected and been returned back to the supplies. The credit note is demanded against material returned back to the suppliers unless the credit note is received to us the relevant invoice is kept as pending in store. Returnable gate pass is used for those items, which are send for the replacement until the exact material is received, payment is not released. The relevant bill is kept as pending till replacement. Four copies of gate pass in prepared and items are returned with it the particulars are recorded in respective gate pass register and computer simultaneously. Particulars

of returnable goods are not recorded in computer. It is recorded in its respective register only. First copy sent to the party Second copy security copy Third copy account copy Fourth copy maintained in store REPAIR Items repaired for minor damages. In practice repairing is avoided for cheap items or those, which are in stock with sufficient quantity. Item is send for repairing through returnable gate pass and entry is made in respective register. Item when received duly repaired, entry for the same is made in gate pass register and if it is taken on stock the computerized GR is made for the same. ISSUE Material is issued in two modes Daily issue Temporary issue

DAILY ISSUE This mode is meant for the consumable items, which are not to be return back to the store. In this mode material is issued to different type of consumers. Material is issued at factory, for local consumption. When issue slip is indented to the store when material is issued entry is made into bin card and computer simultaneously.

TEMPORARY ISSUE Item issue in this mode is return back to the store if not consumed or issued in absence of signatory of issue slip. Entry of the issued item is made into temporary issue register.

When item is return back to store, entry is made in corresponding columns against issue entry of that item. ISSUE SLIP Daily: 1. Bin card is updated 2. Item is handed over to consulting person 3. Sign of receiver is taken on issue slip TEMPROARY: 1. Entry is made in temporary issue register 2. Item is handled over to consulting person 3. Signature of receiver is taken on temporary issue register. 11.2 PRODUCTION SYSTEM The under mining euphoric, exuberance and excellence demonstrated at strategically located majoli mine has, of course made the entire marble work set up and take notice. 15kms away from Rajsamand and 70kms away from udaipur in morwad mine which is the most mechanized mine in the world, producing dazzling white marble with hardness, compactness that takes goods pampering of polished and is nothing but a visual fantasy on the floors. The mine adjoining morwad mine is dharmenta mine the spell binding mine with her difference / producing the most sought after milky white marble with alluring shades of vibrant green and grey. It has now closed. A R.K Marble Pvt. Ltd., research and development are not just for a lip service but for an extended CRM (customer relationship management) featuring one of the most mechanized marble mines on the planet called earth with developed tools and technologies that makes R.K Marble Pvt. Ltd. Stand a breed apart even under threats from a stiff competition from the worked over. The insatiable appetite for WONDER MARBLE from majabica mine is the equivalent testimonial of our core competence in customer satisfaction that forever young and exhilerating. The process of production will be started from

BLOCK MAKING The process of marble mining at R.K Marble Pvt. Ltd. Begins with identification of the mining area by survey feasibility study and core drilling. There experts never fail to notice the prospective mining fields. There fleet of dumpers driven by expert drivers quickly cleans the mining fields. The mining fields begin to take shape and production in form of marble blocks begins. The drilling and wire saw department get busy in cutting the marble mountain. Averagely 15000lt of diesel is consumed by heavy machinery every day, for removed of over burden and other production related activities under supervision of experts blasters, the upper layer of loose rock and overburden removal with the help of excavators. In the beginning of the process, to cut the big rock from the mountain drilling equipment is set up to drill holes in the mountain, compressed air used to drive the drilling equipments. Holes are and matched and then a diamond beaded wire is passed through the holes and mounted on the wire saw machine, which cuts through the mountain neatly and effortlessly. To cut like a knife through better, belt saws are also used. These belt saws are the best and latest technology devices in opening the face of the quarry and making a bottom cut. After the completion of cuts, air and water pillows are inserted in the cuts to widen them for activities space. Every task is accomplished in a truly professional manner. Once the gap is wide enough, excavators push and topple the huge rock and separate it from the mountain. Innovative techniques implemented by the company are at its peak here. Years by years, this art has been perfected over the years and a lot effort also goes into maintaining the quality because the company believes in never compromising on the quality. Strict supervision is maintained at every stage in order to maintain the high level of quality, while keeping the operating hosts at the lowest possible level. The quantity of their production does not affect the quality of their product. The blocks thus prepared are then moved to the locations suitable for loading with the help of caterpillar wheel loaders, which do the Herculean task in a jiffy.

One such huge rock might weight more then 2000 MTT fallen rock is then marked by block marking experts to take out the max numbers of blocks with the best possible textures and design patterns. The ready blocks are loaded on the trucks with the help of derrick cranes and the final inspection is performed to cross check the quality. SLAB MAKING Slab making process start at the corporate office madanganj-kishangarh (rajasthan), where the company was born in 1989. the gantry crane is the place where they stock their blocks for further processing. Before saving the uneven sides of the block are dressed to maximize the utilization of the gang saw machine. The marble block is placed beneath the gang saw-machine and it is now ready to cut in slabs. Water is used as a coolant for the diamond. Segment which cut the block and for remond of slurry. The company slurry treatment plant is the first and only completely indigenous automatic slurry treatment plant in the marble industry. The final result is slabs of 18/20 mm thickness. The company also has a slab stock yard for consumers to pick and choose the variety they want and no slab remains unsold by the evening. It is hardly surprising that the company boost the highest production of marble blocks (in tons). The 90% of the production is sold on the mining side. Competent go-getters are our highly qualified technical task force of committed, assiduous human assets, who have gained heavily over the years from our marvelous HRD initiatives and policies. With major thrust upon innovation, creativity and human ingenuity are human assets have today gained par excellence in mining and maintenance of the earth moving mechanism and tireless endeavors to ensures the optimum feel good factor in all mines, in today indisputably the best in the world.

PLANT AND MACHINERIES AND MINING EQUIPMENTS USED IN R.K.MARBLE Pvt. Ltd.

AT FACTORY NAME OF PLANT & MACHINERY Gang-saw machine Dressing machine Edge cutting machine Gantry cranes D.G. set Water treatment plant Polish plant FUNCTION Sawing of marble blocks Sawing of marble blocks Tiles cutting Lifting of marble blocks Power generation Water processing Finishing on marble slabs

AT MINES NAME OF THE EQUIPMENTS Caterpillar wheel loader Belt saw Chain saw Excavators Volvo Ec 360-02 dumpers Tippers Volvo Fmt Wheel loader Derrick cranes Jet Wires saws Slim drills LD-4 Quarry Jack hammers D.G. sets Pump set for hydro bog Hole finder system Work bench MINING WORKING Block movement Block cutting Block cutting Block handling Block transportation Waste unloading Block handling & waste cleaning Block loading Digging and trenching Block cutting Drilling Drilling Drilling and slotting Drilling Power generator Topple the block Hole finding Diamond wire making

11.3 Sales system

Zoom into the corner stone of majoli, in Madhya Pradesh, India to scale the magnetic fascination of an ISO 9002 adorned Guinness record holder, engaged as the largest producer of the marble in the world. Bedecked with the most sought after gadgets, the exotic majoli mine is the most coveted breeding ground of worlds choicest WONDER MARBLE thats wondrous and awesome in myriad hues. WONDER MARBLE color panorama and innovate design makes it the right choice for flamboyant users. Fascinating range can be floored to encompass living rooms, drawing arrangements, dining spaces, hotel lobbies, pod sites well claddings, special lounges and many more. Among its endless usages left for creative imagination, some could be table tops, artfacts and decorative objects. Yes, the WONDER MARBLE produced at the majoli mines comes to you in heart warming shades of deep and dark red, brown to rose patches in creamy base coupled with abrasion resistence frame grained form luster and reflective gloss which makes it truly a master piece for a life time.

PROCESS The sales process is very simple because mostly the sales are made in cash at R.K. MARBLE PVT. LTD. Some following steps are followed in sales procedure When customer comes, any salesman can handle him and sales man shows him different slabs or cut size marble acc. To the requirement of customer. When customer decides that he has to bring out or buy this type of marble. Then he bargain from the salesman about the prices of that marble, bargain can be done within the limit. When price are set, then the discussion topic will that transportation charges who will bear. It can be bear by either company or customer. Then the time comes for making the bill, bill should be made in 5 copies. After that payment should be their without the payment goods cannot be going outside the company. After payment, goods are loaded in trucks and the sales procedure is finished.

DIFFERENT TYPES MONSOON PEARL Monsoon pearl is the heavenly prose forms the rich and contended green fields from the yarden of eden with the mystique pink splendor on wonder marble. MILKY OPAL Milky opal is the astute magic white and romantic esteem in shades of white and beige that can evoke even a poet from a deep slumber. PRINCESS RUBY Princess ruby is the replica of block dazzling beauty that acts as cosmic cynosure with shades of illuminating galaxy tones. PINK PEARL Pink pearl is a beacon call from the natural forest dunes that are splendid and effusive in generous shades of ecstatic pink and brown tones. MOON ROCK Moon rock is the enigmatic charisma on wonder marble thats soaked in classic timeless beauty with the blandish farvor or rustic pinkish green tones.

11.4 PROCESS CONTROL SYSTEM In process system three activities are included :1. Production process 2. Mechanical maintenance 3. Electrical maintenance PURPOSE Processing of marble slabs and tiles SCOPE

Scope of process cover the operation and maintenance (mechanical and electrical) of the following machines

NAME OF MACHINE Gantry cranes Dressing machines Resin treatment plant Gang saw machines Edge cutting machines Power control centre unit D.G. sets Effluent treatment plant unit

QUANTITY 05 08 02 14 06 01 04 01

PROCESS SYSTEM The raw material, raw marble blocks received from mines are unloaded in the gantry yard with the help of gantry cranes. The concerning supervisor examine the quality of marble blocks. The raw material is a natural product and every block is different in nature, so it can only be examined visually. The block supervisor who are expert of stones shall determined the size to be prepared of every raw material blocks. The experts than give directions to dressing incharge or dressing machine operator for dressing a marble blocks. The dressed blocks are shifted to gangs saw trolley as per the size of gang saw machine. The block is now ready for final sawing into slabs on gang saw machines The gang saw trolley ready for saw of block is shifted manually to gang saw machine.

The operator than fixes the trolley in the machine before starting saving the operator will check the proper sharpness of cutting tools. During block saving process the operator will check and watch the proper cutting is been done. When sawing is completed the operator will stop the machine. The labour will pack the trolley as per instruction given to them with the help of side supports and wooden wedges to avoid breakage is shifting by keeping the slabs state on the trolley.

The coolant required for sawing is continuously supplied by water recycling effluent treatment plant. A water recycling plant is there for continuous supply of water. the plant also treats the effluent, marble slurry from the use water. Effluent is speedily settled with the help of flocculent in settler tanks and then sent to filter process, which removes the excess water from the effluent The gangs saw trolley now contains marble slabs is shifted to finished goods yard with the help of transfer car. After purring the trolley on transfer car proper packing of trolley is done by the transfer car operator.

After sawing, for further treatment the slabs are taken to chemical treatment yard where they are netted and epoxy resign are use to fill the cracks and strengthened the slabs.

The slab trolley is shifted near to slab yard. all saleable or fresh slabs are shifted to slab yard. Tiles of various sizes are recovered on edge cutting machine out or broken slabs. The tiles recovered are shifted to tile yard for keeping lot as per size and quality for marketing.

11.5 ACCOUNTING SYSTEM All the consumption, sale and purchase are accounted and control by maintaining its records in computers in accounts department. All the computerized vouchers related to above transactions with adequate supporting maintained and kept in record department

PURPOSE To get goods in time at reasonable price & superior quality. PROCESS We are received requirement slips from main store/guest house stores or any other user department, we examine the requirement of material on the basis of work to be done and for what purpose material is required. If material is not available with stores, quotation is collected either verbally or written from various parties. Rates are compared and purchase order is issued to party which quote least rate with suitable make/quality. purchase order are reviewed on daily basis in respect to goods received as per purchase order for comparing of quantity & quality of goods received. A separate file is maintained for all the purchase order issued to parties at record department. Normally, purchase is made from only those who are registered with the company. for this purpose, company registered to supplier after inquired about suppliers services on time to time, whenever registration of vendor is required. Company having a practice of vendor analysis on yearly basis in respect to quantity, quality, rates, and delivery period & on what terms material were supplied during the year. A separate file is maintained for all the vendor registration forms at record department. If any material received from parties & later on its returned to party due to inferior quality, short quantity, higher rate charge or any other reason is recorded in non conformity product register, maintained at main store and action are taken at time of vendor analysis.

ACCOUNTING AND PAYMENT Whenever purchase are made through our documented procedure, the computerized G.R is prepared in main store, house keeping store & R.K house and it are received to accounts department for releasing the payment. Accounts department checks all the documented procedure through which the purchase are made and checkek in respect to rates, arithmetical calculations, purchase order/indent security seal approval of purchase etc, and send it to general manager for approval of payment there after the G.R.S comes to accounts and payment saction that make necessary feeding in computer and

prepare a cheque in accordance to computerized voucher called journal voucher accompanied the G.R.S kept as record. VOUCHER ENTRY SYSTEM There are six type of voucher are prepared namely, Bank payment voucher Bank receipt voucher cash payment voucher cash receipt voucher journal voucher sales invoice

SALES The marble slabs are marketed and sold on its quality. The rate of slabs are fixed and negotiated by marketing manager. Computerized bills are prepared and records of sales are maintained automation. For customer satisfaction/doubts, suggestion box positioned at sales department, if any suggestion/complaints are received from customer is written down in customer evaluation form. Suggestion box is opened on weekly basis and contents are reported to top management. According to customer evaluation form, reply is made to the relevant customer. Corrective/preventive actions are initiated according to instruction given by the higher authority. Any type of information required by the customer through customer evaluation form and satisfactory reply is made to them. SCRAP SALE If any item received after its use as scrap are stored at separate location called scrap yard and sale through invoice. Bidding are invited and sold on higher rate offered by the party or on the basis of that rater offered as earlier. Whenever scrap is sold, the consent of technical person is taken to avoid sale of useful items. Non returnable gate pass is made and are recorded in relevant register. On the basis of said gate pass sale bill is prepared and amount is deposited by party at cash counter and for amount received, a cash receipt voucher is prepared.

BUFFER REGISTRATION We have adopted a buffer registration policy for sale of raw marble stone under which standard buffer registration form is essential to filled up by the party. Previous approval of chairman/managing director/Executive director is required for said registration. CONTRACTORS BILLS-CIVIL WORK Whenever any civil construction is proposed, quotation are invited from contractor different type of civil work. After comparison of different quotation by civil manager and top management, quote by different contractors, written contract, the company provides material itself. During the work under construction, checking and physical verification done by the company staff at regular interval. Whenever contractors bills of civil work received is verified and checked in respect of rates, arithmetical calculations and conformed that contractors had followed all the terms and conditions written in the agreement like compliance of statutory matter that is tax deducted at source , insurance contractor labour, P.F and ESI etc. all the written contract are kept in record room. Payment is made on the approval of the civil manager and general manager. Approval of managing director is taken, if required.

INFRASTRUCTURE FACILITY BILLS Meant for service bill such as electric bill, water bill, telephone and mobile bills etc.these type of bills received are checked based on its consumption/utilization of units and tariff and forwarded to general manager for approval for payment if it is found ok. No G.R.S are made for this type of bills but computerized J.V are made and kept in paper record. If any facility used for personal purpose than it recovered from particular employee.

CONTROL Print-out of all the day books are taken on daily basis for comparing all the transaction related to purchase, sale, store and finance. Mainly following day books are printed on daily basis: Main store Accounts General store R.K.house

All the day books are checked and if any deficiencies found is reported to relevant department for rectification. These daybooks enables to the accounts department to control each and every event.

FINANCIAL ANALYSIS
Financial statements are only the informer, which provide information about financial position of the firm. But they are only the figures. For understanding them, we have to do financial analysis. By analysis of statements we have find conclusions like management efficiency, future growth etc.

The science of financial analysis is assuming an increasingly important role as a tool for appraising the real worth of a going concern. It helps in drawing out the implications of which is contained in the statements themselves. NAVEEN CHANDRA JOSHI Analyzing financial statements is a process of evaluating the relationship between component part of a financial statements to obtain a better understanding of a firms position and performance. METCAFFAND TITARD The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of the financial statements data so that the forecast may be made of the prospects for future earnings, ability to pay interest and debt on maturities (both current and long term) and probability of a sound dividend policy. There must be three-step follow in selection of information: Define relationship Evaluation

DIFFERENCE BETWEEN INTERPRETATION AND ANALYSIS Interpretation of accounts may be defined as the art and science of translating the figures there in such a way as to reveal the financial strength and weakness of a business and the causes, which have contributed therein. So, interpretation and analysis are to different functions. Analysis is the the process of facts finding and division of

complicated data in simple form. But the interpretation is the art of defining the actual importation of facts. But both activities core related, one can be not full without the other.

OBJECTIVE OF ANALYSIS 1. Profitability 2. Solvency 3. Ownership 4. Financial strength 5. Trend 6. Gearing and cover IMPORTANCE OF FINANCIAL ANALYSIS 1. Disclosure of facts 2. Effective decision-making 3. Effective operation and control 4. Planning tool 5. Comparative study of efficiency 6. Surveying the need of interested partie

TECHNIQUES OF FINANCIAL ANALYSIS methods employed to examine the vertical as well as horizontal relationship of different financial variables with a view to studying profitability and financial position of a business enterprises are called tools of financial analysis. There may be different techniques, but these techniques should be used according to the requirements.

OTHER TECHNIQUES

RATIO ANALYSIS Ratio is simply a means of highlighting in arithmetical terms the relationship between figures drawn from financial statement. Ratio analysis of statements is the process of determining and presenting the relationship of items and groups in the statement. FUND FLOW ANALYSIS Fund flow analysis are called by four names Statement of sources and application of funds Where got, where gone statement Statement of changes in financial position Funds statements

Fund flow statement is a statement prepared to indicate the increase in the cash resources and the utilization of such resources of the business during the accounting period. The fund flow statement is a statement summarizing the significant financial changes, which were occurred in the beginning and the end of the companys accounting period. BREAK EVEN ANALYSIS Profit is depend upon different factors like- sales volume, sales price per unit, different costs like- fixed cost and variable cost. Or we can say that profit is based on the sales and cost. So we can make internal relationship of sales, costs and profit. Where cost and sales are equal and profits are nil, this technique is called break even analysis.

There are four methods used in this technique: Contribution Profit volume ration Break even point Margin of safety

EXTRA FUNCTIONS/FACILITIES IN R.K. MARBLE PVT.LTD

ADVERTISING R.K.MARBLE PVT.LTD. was the first to introduce concept of advertisement for selling marble slabs. Prior to this the marble was sold only on the basis of word of mouth and advertisement/sales promotion was not resorted to reach to the consumer. Setting up a manufacturing unit in a city where there is no market of marble, where there was no marble mining, it was a challenging task to attract customers. Billboards was put up on the all national highways leading to kishangarh. This immediately popularized there factory and customer started to visit them. COMPUTERISATION IN R.K. MARBLE File system management Marbles block received and cutting details. Marble slurry removal system Power cut details and reasoning Personal management system

Petrol consumption of factory vehicles Website management system Management of address of all their clients All day-to-day correspondence work is now on computers Complete inventory and stock management Accounting work and account details Sales billing and customer address management Customer feedback Telephone calling and billing/cost management

OTHER FACILITIES LODING R.K. MARBLE PVT.LTD. Is providing free lunch and dinner to all the employees in the staff mess. BOARDING R.K. MARBLE PVT. LTD. has provided free and furnished boarding facilities for every employee. HOSPITAL R.K. MARBLE PVT. LTD. is having four bed hospital at mines side working round the clock with a qualified doctor and compounder, this facility is for every employee.the hospital is fully equipped with modern equipment, ambulance and primary medical aid which are required for emergency purpose. TRAINING R.K. MARBLE PVT. LTD. is operating a vocational training centre for providing initial training for new entrants and refresher traning to existing employees. On the job training is also the part of such training. SOFTWARES IN DIFFERENT DEPARTMENTS

ACCOUNTS In accounts department we are using tally 9.2 software. This software fulfills all the information, which is required for organization. Balance sheet Trial balance Ratio analysis Fund flow analysis Cash flow analysis Ledger Cost centers Budget analysis

SALES In sales department house developed software is clipper 5.2.this software includes all the information which management requires. Bill and goods transfer memo printing Daily dispatch report Party master maintenance Party wise report Pit wise report Goods booking Truck booking and dispatch Block making expenses report

STORES AND PURCHASE In stores department NAC software are using, which is developed on DBMS platform in clipper 5.2 Minimum level report Maximum level report Reorder level report Master maintenance report

Daily issue register Daily receipt report ABC analysis VED analysis Stock checking report Debit/credit note Gate pass

DIESEL PUMP For diesel pump there own develop software is using, which is developed in clipper 5.2. This software is giving following reports Diesel received register Daily issue register Date wise issue summary Group wise issue summary Machine wise/vehicle wise detail/summary Equipment list Insurance list Diesel turnover report

PERSONNEL In personnel department R.K. MARBLE PVT. LTD. is using PMS SOFTWARE. The above software is developed on DBMS platform in clipper 5.2 MASTER REPORT Company master reports Employee master report Department master report Leave master report

TIME OFFICE REPORT Mismatches report

Late arrivals Early arrivals Attendance register

PAYROLL REPORT Pay slip printing Monthly salary statement ESI statement PF & FPF summary statement Annual salary statement

SWOT ANALYSIS
STRENGTH Firstly R.K Marble Pvt.Ltd. has Guinness Record of producing highest marble slabs. They have latest technologies. They have the certificate of higher tax payer, so they have good image in the market. WEAKNESS They are based on only a single product. They have no internal training as per the requirement. Increasing demand of marble.

OPPORTUNITIES

Nuclear families are increasing faster, which are using the product like marbles in high quantity. Hotels and hospitals and other centers, which are using the product, like marble. They have enough chances to export the product.

THREATS The uses of ceramic tiles are also increasing very much. Importing of marble is also a threat for marble industries in India. The manufacturing process of marble need huge level of water which is problem.

CONCLUSION AND FINDINGS

After discussing all these system manuals, we can know about the different process of system, which are been followed at R.K. MARBLE PVT. LTD. kishangarh, ajmer is acknowledged as the biggest marble company in the world and they hold the certificate from Guinness book of world records to buttress their claim. Today RK group is the more successful in this business but it is worth that they have no bigger competitor in front of them. If we analysis all the system manuals, we will find some following points: The services, which are provided at R.K Marble Pvt.Ltd., are quite satisfied. If we consider the employee turnover, we will find that employee turnover at R.K Marble Pvt.Ltd. is about 1% per annum. Employees of R.K Marble Pvt.Ltd. as such have no compulsory level of qualification. Promotion of the employee is based on his performance only. Facilities of internal training are very low.

After consulting all these things we can conclude that all the systems have some sequence and that sequence should be followed. It should be remember that if there is any type of deviations in any systems, it will effect on whole organization.

REFERENCES AND APPENDIX

Guidance from faculty and corporate guide. Reference to companys financial statement. Reference to R.K. MARBLE Pvt. Ltd. website. Reference to various websites like ; 1. www.google.com 2. www.indianfoline.com 3. www.wikepedia.com 4. www.workingcapitalmanagement.com

APPENDIX Appendix A : Balance Sheet for R.K MARBLE PVT. LTD. (2008-2009 TO 20092010) Appendix B : Profit and Loss account for R.K MARBLE PVT.LTD. ( 2008-09 TO 2009-10)