A

PROJECT REPORT ON
RATIO ANALYSIS
UNDERTAKEN AT
SAI JYOTI DYEING AND PRINTING MILL PVT. LTD.
Submitted By:
TUSHAR B. KALATHIYA
( 097040592032 )
Guided By:
MR. AMIT SHAH
Asst. Professor
MBA PROGRAMME
(Year 2009-11)
BHAGWAN MAHAVIR COLLEGE OF MANAGEMENT
SURAT
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INTRODUCTION
About the topic:
o

Ratio analysis is one of the technique of financial analysis to

evaluate financial condition and performance of business.
Simply, ratio means the comparison of one figure to other
relevant figure or figures.

Ratios are calculated from current year numbers and are then
compared to previous years, other companies, the industry, or
even the economy to judge the performance of the company.

About the Organization:

o

Sai Jyoti Dyeing and printing mill Pvt. Ltd. is belonging to textile
industry. It is well known company in Surat and they are doing
their business in all over India.

They are using seymore print Pvt. Ltd. As marketing company.

It is expanded in the year of 2002 With New Subsidiary

Company Sai-Jyoti Fashion handprint & Prism Print.
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LITERATURE REVIEW
Name of author
James M. Patton

Year of study
1982

Result of study
o
o
o

Analysis of business transaction in market that may not be

efficient.
Performance evaluation and risk in an efficient market can be
measured by ratio analysis.
Analysts use ratios to predict financial variables and to
evaluate relative performance.

How the results are help me for study

o

Result of above studies are help me to analyze financial

statement and find out variables.
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CONTRIBUTION AND LEARNING

To the organization:

Company can measuring the profitability

They can judge the operational efficiency of business
They can assess the solvency of the business
They can measuring short and long term financial position of
the company

To the researcher:

By this project I can got lots of practical knowledge about Ratio

Analysis. How to get data for it, how to calculate ratio base on
that data, what are the problems face in it and how you can
learn from that.
By this project I can learn about human behavior in the
organization in practically.
I can get analytical skill and communication skill from this
project work.
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RESEARCH METHODOLOGY
Objectives

Primary Objective
To increase efficiency of organization within use of various
types of financial ratios.

Secondary Objective

To know the financial condition of the company

To know liquidity position of company

To know profitability of company

To know market position of company

Problem
o

Statment

How to know financial efficiency of the organization? And how

to increase it?

Research

Design

Analytical research design

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 Sample
o

Balance sheets and profit & loss Account of The Sai Jyoti
dyeing and printing mill Pvt. Ltd. ( of years 2006, 2007, 2008,
2009 ).

Data
o

Size

Collection Method

Secondary data collection method

Data are collected from balance sheet, profit & loss account,
auditors report, Directors report of Sai Jyoti dyeing & printing
mills Pvt. Ltd.

Limitation
o
o
o

Of Study

It takes more time and consuming money.

Lack of availability of common standards.
Balance sheet is base on last date and I analysis data on the
base on balance sheet so it give me result of one date which is
not sufficient.

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DATA ANALYSIS
o

Net profit margin ratio of company is 7.64% in 2009. And it is

increasing by 101.58% in 2009 then 2008.it indicate very good
growth of company. [1]

Company's gross profit margin is 16.11% in 2009 and 18.09% in

2008. so companys gross profit margin ratio is declining by 15%
in 2009 than 2008.

Asset turnover ratio is1.61 time in 2009. And it is increasing by

5% in 2009 then 2008.

Debt service cover ratio is 22.35% in 2009. And it is increasing

by 80.53%in 2009 then 2008.[2]

Earning per share of company is 13.19 Rs. in 2009 but it was

only 5.94 Rs. in 2008. It is increasing by 122% in 2009 then
2008. it indicate good performance of the company.[3]

Interest cover ratio of the company is 3.75 time in 2009. And it is

increasing by 60% in 2009 then 2008.
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FINDINGS
o

Company's gross profit margin is declining by 15% in 2009

then 2008.

Companys current ratio is 1:1.25 in 2009. current ratio is

increasing by 15% in 2009 then 2008.

Quick ratio of the company is declining by 15% in 2009 then

2008. Quick ratio is 1:1.05 in 2009.

Debtors conversion period is 5.58 time in 2009. And it is

increasing by 12% in 2009.

Stock turnover ratio is 30.39 time in 2009. And it is declining by

59% in 2009 then 2008.

Debt ratio of company is 75% of total assets in 2009. And it is

declining by 8.5% in 2009 then 2008.

Debt to equity ratio of company is 1.38 time in 2009. And it is

declining by 63.58% in 2009 then 2007.
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CONCLUSION
o

Company get good net profit margin in 2009. it become almost

doubled in2009 than 2008.

Liquidity position of the company is good in 2009 but than also

company wants to improve liquidity position. Liquidity ratio of the
company should be 1:2.

Debt ratio of the company is declining every year and it is good

for the company.

Company is not give an single rupee of dividend to its

shareholders and all profit invested in business. So companys
profit is continuously increased. But shareholder cannot get any
dividend.

From Ratio Analysis of all four years we can say that 2007 is not
as good as other years.[4]

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RECOMMENDATIONS
o

Company's gross profit margin is decline in 2009. So company

wants to control manufacturing cost to increase gross profit.

Current ratio of the company is less in all four years. Company

should increase their current assets or they can decrease current
liability.

Debtor conversion period of company is 5 time in a year.

Company should improve it by declining debtors.

Stock turnover ratio is 30.39 time in a year. Company wants to

increase it so they can decrease storage cost of the materials.

Debt ratio of the company is 75% in 2009. company should

decrease it by declining total debt or increasing equity shares of
the company.

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10

BIBLIOGRAPHY

o
o
o

Books
Ambrish Gupta Financial Accounting for Management(3 rd Edition
2009).
S.K. Bhattacharya, John Dearden Accounting for Management
(3rd edition 2008)
Paresh shah, Basic Accounting for Management(2008)
Financial Statement of Sai-Jyoti Dyeing & Printing mils Pvt.Ltd
(Year 2006, 2007, 2008 and 2009)
Websites
http://www.investopedia.com/terms/r/ratioanalysis.asp
http://en.wikipedia.org/wiki/Financial_ratio

http://www.universalteacher4u.com/cbse/xii/acctheory/ch11/page
1.htm

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