a study on financial performance in icm private limited

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A STUDY ON FINANCIAL PERFOMANCE IN ICM

PRIVATE LIMITED COIMBATORE

PROJECT REPORT

Submitted by

K.SANGEETHA

Reg no:108001611042

In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

IN

DEPARTMENT OF MANAGEMENT STUDIES

PAAVAI COLLEGE OF ENGINNERING

PACHAL, NAMAKKAL-637 018

JUNE 2012

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BONAFIDE CERTIFICATE

PAAVAI COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT STUDIES

PROJECT WORK

JUNE 2012

This is to certify that the project entitled

A STUDY ON FINANCIAL PERFORMANCE IN ICM PRIVATE LIMITED COIMBATORE

is the bonafide record of project work done by K.SANGEETHA 108001611042 of MBA during

the year 2011-2012.

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

Project Guide HOD

Submitted on project work Viva-Voce examination held on……………

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

Internal Examiner External Examiner

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DECLARATION

I affirm that project work titled A STUDY ON FINANCIAL PERFORMANCE

PRIVATE LIMITED COIMBATORE being submitted in partial fulfillment for the award of

Master of Business Administration (MBA) is the original work carried out by me. It has not

formed the part of any other project work submitted for award of any degree or diploma, either in

this or any other University.

Signature of the student

K.SANGEETHA,

Reg.no.108001611042.

I certify that the declaration made above by the candidate is true

Signature of the Guide.

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ACKNOWLEDGEMENT

First I thank the “ALMIGHTY GOD” for having showered his earnest blessing on me

to complete this work successful.

I would like to express my gratitude to Shri. CA. N.V. Natarajan. Chairman, B.Com.

F.C.A., and Smt. N. Mangaiarkarsi., M.Sc., Correspondent, Paavai Institutions., Pachal,

Namakkal, for giving me an opportunity and facility to complete this project.

I wish to place my deep sense of gratitude to Prof.K.K.Ramasamy, M.E, (Ph.D),

Director Administration, Paavai Institutions, pachal, Namakkal, for all the encouragement

received during the MBA course.

I would like to express my gratitude to Dr. V. Murali Baskaran, M.E., Ph.D., Principal,

Paavai College of Engineering

I would like to place my boundless thanks and gratitude towards my faculty guide

Mr.M.Gurusamy., MBA, M.Phil., (Ph.D).,Head of the department of MBA, Paavai College of

Engineering for his guidance and help to do my project successfully. I also express thanks to all

the other faculty members of the department.

I express my sincere thanks to Mr.K.Nirmal Kumar., Finance Manager for his

valuable guidance to undertake this project work in the esteemed organization.

`

K.SANGEETHA

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ABSTRACT

The present study of the research entitled “A Study on Financial Performance" was

conducted at Intelligence Credit Management, Coimbatore. The details regarding the history

and accounting policies of the company was collected through discussion with the company

officials. The study was based on secondary data from records, reports and profile of the

organization. The present study has been organized into five chapters. The first chapter deals

with the introduction about the project title “Financial performance” and profile of the company.

The second chapter deals with the need, objectives and limitations of the study. The main

objectives of the study is to make an analysis on the financial performance of the company for 5

financial Years, to calculate profitability turnover & financial ratios to assess the financial

position of the firm, to study the efficiency and liquidity position using ratios, to study the trend

of financial performance of the company, to asses individual financial segments and put forth the

strength and weakness of the financial elements of balance sheet through trend analysis.

The third chapter deals with research design, data collection and period of study. The data

for 5 financial years i.e., from 2006 – 2007 to 2010 – 2011, were collected and used in the

present study.

The fourth chapter deals with the Analysis and Interpretation. The tools used in this study

are ratio analysis, trend percentages of income statements and Balance sheet, common size

income statement & balance sheet and comparative income statement & balance sheet. Charts

and tables are used for better understanding. Through ratio analysis the company could

understand the Profitability, Liquidity, Leverage, Turnover positions of the company. Through

trend percentage of income statement & balance sheet, the company can visualize their trend of

growth. The comparative income statement & balance sheet reveals the comparison between the

various year periods.

The fifth chapter deals with results, suggestions for the improvement of the company and

conclusion. Findings of the study shows that the profitability position is good as the Net profit

ratio, return on equity, operating profit ratio have an increasing trend during the period of study.

The Turnover position was better as the Debt – equity ratio, Fixed & Total asset turn over ratios

show an increasing trend during the period of study, the collection period was also within the

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efficiency level. The liquidity position was good during the period of study. The Leverage

position was not so poor during the period of study. The suggestion is that, the management may

take proper decisions to maintain their absolute liquid ratio, so that they can maintain their

liquidity position in the long run., The liquidity position could be strengthened by reducing the

current liabilities., The management may try to increase the EPS by increasing the profitability of

the company., The cash balance level of the company when compared to current liabilities is

lower. The management may improve the cash balance to an optimum level to meet the

contingencies. This study will be useful for owners, creditors, suppliers, customers, Department

managers and others to get insight about financial soundness.

The study has revealed that the financial performance of Intelligence Credit

Management, Coimbatore is good.

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CHAPTER 1

INTRODUCTION 1.1 INTRODUCTION AND DESIGN OF THE STUDY

Finance holds the key to all human activity. It is guide for regulating investment

decisions and expenditure and endeavors to squeeze the most out of every available rupee. The

government too, treats it as a signpost, a beckon to responsibility that covers men, money,

material, methods and management. Out of these finance is a resource and it has to be managed

efficiently for the successful functioning of an enterprise. Financial management is that

managerial activity which is concerned with the planning and controlling of the firm’s financial

resources.

1.1.1 Financial Performance Analysis.

The financial statement provides the basic data for financial performance analysis.

Basic limitation of the traditional financial statement comprising the balance sheet

and the profit and loss account is that they do not give all the information regarding the financial

operations of a firm. Nevertheless, they provide some useful information to the extent the

balance sheet mirrors the financial position on a particular date in terms of the structure of assets,

liabilities and owners equity, and so on. The profit and loss account shows the results of

operations during a certain period of time in terms of the revenues obtained and the incurred

during the year. Thus, the financial statements provide a summarized view of the financial

position and operations of a firm. Therefore, much can be learnt about a firm from a careful

examination of its financial statements as invaluable documents / performance reports. The

analysis of financial statements is, thus, an important aid to financial analysis.

The focus of financial analysis is on key figures in the financial statements and

the significant relationship that exists between them. The analysis of financial statements is a

process of evaluating relationship between component parts of financial statements to obtain a

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better understanding of the firm’s position and performance. The first task of financial analyst is

to select the information relevant to the decision under consideration from the total information

contained in the financial statement. The second step involved in financial analysis is to arrange

the information in a way to highlight significant relationships. The final step is interpretation and

drawing of inferences and conclusions. In brief, financial analysis is the process of selection,

relation, and evaluation.

1.1.2. Tools of Financial Analysis

A financial analyst can adopt the following tools for analysis of the financial

statement. These are also termed as methods of financial analysis.

1.1.2.1. Ratio analysis

Ratio analysis is a widely – used tool of financial analysis. It is defined as the

systematic use of ratios to interpret the financial statements so that the strengths and weakness of

a firm as well as its historical performance and current financial condition can be determined.

The term ratio refers to the numerical or quantitative relationship between two items/ variables.

This relationship can be expressed as: (i) percentages (ii) Fractions (iii) Proportion of numbers.

Computing of ratios does not add any information not already inherent in the financial statement.

The ratios reveal that relationship in a more meaningful way so as to enable us to draw

conclusions from them. The rationale of ratio analysis lies in the fact that it makes related

information comparable. A single figure by itself has no meaning but when expressed in terms of

a related figure, it yields significant interfaces. The ratio analysis, as a quantitative tool, answers

to questions such as: are the net profits adequate? Are the assets being used efficiently? Is the

firm Solvent? Can the firm meet its current obligations? And so on.

It is also defined as “an expression of the quantitative relationship between two

numbers”. (Wixion, Kell, Bedford 1970).

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1.1.2.2 Significance of Ratio Analysis

Ratio analysis determines the following

1. The ability of the Firm to meet its current obligations.

2. The extent to which the firm has used its current obligations.

3. The efficiency with which the firm is utilizing its various assets in generating

sales revenue.

4. The overall operating efficiency and performance of the firm.

1.1.2.3 Limitations of Ratio Analysis

1. It is difficult to decide on the proper basis for comparison.

2. The comparison is rendered difficult because of differences in situations of two

companies or of one company over years.

3. The price level changes make the interpretations of ratios invalid.

4. The differences in the definitions of items in the balance sheet and income

statement make the interpretation of ratios difficult.

5. The ratios calculated at a point of time are less informative and defective as they

suffer from short-term changes.

1.1.2.4 Uses

These can be useful indicators of measures to appraise the financial health of an

organization and its profitability, financial stability (long term and short term), financial

management and overall efficiency of the business. The inherent strength underlying the ratio

analysis is the fact that absolute figures are meaningless and sometimes misleading and therefore

for the purpose of any comparison all absolute data should data should be converted into ratios

representing meaningful relationship.

1.1.3 Profitability Ratios

Profitability reflects the final of result of business operations.

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1.1.4 Turn over Ratios

Turn over ratios, also referred to as activity ratios or asset management ratios,

measure how efficiency the assets are employed by the firm.

1.1.5 Liquidity ratios

Liquidity refers to the ability of a firm to meet its obligations in the short run,

usually one year. Liquidity ratios are generally based on the relationship between current assets

and current liabilities. The important liquidity ratios are Current ratio, acid-test ratio

1.1.6 Leverage Ratios

Financial leverage refers to the use of debt finance. While debt capital is a

cheaper source of finance, it is also a riskier source of finance. Leverage ratios help in assessing

the risk arising from the use of debt capital.

1.1.7 Comparative Financial Statements

Comparative financial statements are these statements which have been designed

in a way so as to provide time perspective to the consideration of various elements of financial

position embodied in such statements. In these statements figures for two or more periods are

placed side by side facilitate comparison. Both the income statement and balance sheets can be

prepared in the form of comparative financial statement

1.1.8 Comparative Income Statements

The income statement discloses net profit and net loss on account of operations. A

comparative Income Statements will show the absolute figures for two or more periods, the

absolute change from one period to another and if desired the change in terms of percentages.

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1.1.9 Comparative Balance Sheet

Comparative balance sheet as on two or more different dates can be used for

comparing assets and liabilities and finding out any increase or decrease in those items.

1.1.10 Common Size Financial Statements

Common size financial statements are those in which figures reported are

converted into percentages to some common base. In the income statement the sale figure is

assumed to be low and all figures are expressed as a percentage of sales. Similarly in the balance

sheet the total of assets or liabilities is taken as 100 and all the figures are expressed as

percentages of this total.

1.1.11 Trend Percentages

Trend percentages are immensely helpful in making a comparative study of the

financial statements for several years. The method of calculating trend percentages involves the

calculation of percentage relationship that each item bears to the same item in the base year.

1.1.12 Types of Financial Statement

The term financial statements generally refer to two basic statements:

1. The income statement & 2. The balance sheet. Business men also prepare 3. A

statement of retained earnings, and 4. A statement of changes in financial position, in addition

to the above two statements.

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1.1.12.1 Income Statement

The income statement is generally considered to be the most useful of all financial

statements. It explains what has happened to a business as a result of operations between two

balance sheet dates. For this purpose, it matches the revenues and cost incurred in the process of

earning revenues and shows the net profit earned or loss suffered during a particular period.

1.1.12.2 Balance Sheet

It is a statement of financial position of a business at a specified moment of time.

It represents all assets owned by the business at a particular moment of time and claims or

equities of the owners and outsiders against those assets at that time. It is in a way snapshot of

the financial condition of the business at that time. The important distinction between an income

statement and a balance sheet is that income statement is for a period while balance sheet is on a

particular date.

1.1.12.3 Statement of Retained Earnings

The term retained earnings means the accumulated excess of earning over losses

and dividends. The balance shown by the income statement is transferred to the balance sheet

through this statement, after making necessary appropriations. It is thus a connecting link

between the income statement and the balance sheet. It is fundamentally display of things that

have caused the beginning of the period retained earnings balance to be charged into the one

shown in the end of the period balance sheet.

1.1.12.4 Statement of Changes in Financial Position

The balance sheet shows the financial condition of the business at a particular time while

the income statement discloses the result of operations at a particular time while the income

statement discloses the result of operations of the business over a period of time. However for

the better understanding of the affairs of the business it is essential to identify the movement of

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working capital or cash in and out of the business. This information is available in the statement

of changes in financial position of the business. The statement may emphasize any of following

aspects relating to changes in financial position of the business.

1. Change in firm’s working capital.

2. Change in firm’s cash position.

3. Change in the firm’s total financial position.

1.1.13 Nature of Financial Statements

According to the American Institute of Certified Public Accountancy Financial

Statements reflect a combination of recorded in the financial are not depicted in the financial

statements, however material they might be, for example, fixed assets are shown at cost

irrespective of their market or replacement price since such price is not recorded in the books.

1.1.13.1 Accounting Conventions

Accounting conventions imply certain fundamental principles which have been sanctified

by long usage. For example, an account of the convention of conservatism provision is made for

expected losses but expected profits are ignored.

1.1.13.2 Personal Judgments

Personal judgments have also had an important bearing on the financial statement. For

example, the choice of selecting methods of depreciation lies on the accountant. Similarly, the

mode of amortization of fictitious assets also depends on the personal judgments of the

accountant.

1.1.13.3 Ignore Substance

Financial statements in India are prepared and presented in the form prescribed by law.

As a result many substantial facts go unrecorded.

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1.1.13.4 Over Generalization

A financial statement presents data in a generalized form and not as required of a specific

user, viz shareholders, employees, government, potential investors, lenders, etc... Hence they

cannot meet the specific data requirements of the users. They are only general purpose

statements.

1.1.14 Limitations of Financial Statement

Financial statements are prepared with the object of presenting a periodical review or

report on the progress by the management and deal with the 1) status of the investments in the

business and 2) results achieved during the period under the review. However these objectives

are subject to certain limitations as given below

1.1.14.1 Financial Statements are Generally Interim Reports

The profit shown by profit and loss account and financial position as depicted by the

balance sheet is not exact. The exact position can be known only when the business is closed

down.

1.1.14.2 Accounting Concepts and Conventions

Finical statements are prepared on the basis of some accounting conceptions and

conventions. On account of this reasons the financial positions as disclosed by these statements

may not be realistic. For example, fixed assets in the balance sheet are shown on the basis of

going concern concept. This means that value placed on fixed assets may not be the same as may

be realized in their scale. On account of conservation the income statement may not disclose true

income of the business since probable losses are considered while probable incomes are ignored.

1.1.14.3 Influence on Personal Judgment

Many items are left to the personal judgment of the accountant. For example the method

of amortization of fixed assets, treatment of differed revenue expenditure all depend on the

personal judgment of the accountant.

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1.1.14.4 Disclose only Monetary Facts

Financial statement does not depict those facts which cannot be expressed in the terms of

money. For example, development of a term of loyal and efficient workers enlightened

management, the reputation and prestige of management with the public are matters which are of

considerable importance for the business, but they are now here depicted by the financial

statements.

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1.2 INTRODUCTION TO COMPANY

1.2.1 Company profile

We would like to introduce ourselves as M/s Intelligence Credit Management, a well-

known organization established in the year 2008 based out in Coimbatore, Tamil Nadu and

having experience of around 2 years in the area of Collections & Verification.

Aim

Our aim is to provide Quality service to the client in a timely manner.

To consistently provide world class service to our clients to enable them to leverage their profit

by means of outsourcing their services.

Corporate Office

The Intelligence Credit Management is functioning in a modern office at No.106-86, 3rd

floor, Big Bell Complex, D.B. Road, R.S. Puram, Coimbatore - 641002. Phone : +91-422-

4368858, 3231319, Email : [email protected], [email protected] .

Experience

1. SBI CARDS: We have done service with this company for 1 year. We handled X-bucket and Bucket-1. 2. GE Money Financial Services Ltd. : We have done service with this company for 2 years. We handled X-bucket, Mid-buckets and recoveries. 3. Cholamandalam DBS: We have done service with this company for 1 year. We handled only recoveries. 4. AIRCEL Cellular Ltd. : We have done service with this company for 1 year. We handled Verifications for pre-paid connections. 5. TATA MOTORS FINANCE LIMITED: We are associated with this company for 2 years currently. We are handling X-Bucket Collections For the Commercials, Cars all over Tamilnadu. 6. HDB Financial Services: We are associated with this company presently. We are handling Collections of the Personal Loans.

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Infrastructure

We have a centralized call-center which links all the above locations from Coimbatore.

Latest technology based systems, phones, printers, scanners, fax etc. We have introduced the

SMS based alert systems to get more out of the services.

Personnel

We have very good staff who have got best experience in the field of collection and

Verification. Each team is followed by a Team Leader who is responsible for the performance of

his team and motivating them to achieve higher goals. All the Team Leaders have been provided

with mobile phones to facilitate easier communication round the clock with office and clients. In

addition to that, we have the SMS alert system for communication purpose. The present staff can

be enhanced when the circumstances demands.

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Past Performance

The company is on its fast track of growth and the past performance details are given

below:

(Amount in lakhs)

Details/

Year 31.03.06 31.03.07 31.03.08 31.03.09 31.03.010 31.03.11

Sales 3566.23 4436.56 5621.56 5589.79 6420.36 6840.42

Profit

before

tax

5.86 39.24 302.93 148.72 312.30 3503.21

Share

Capital 230.00 370.00 400.00 400.00 475.00 475.00

Reserves

& surplus 567.11 574.64 720.19 767.48 759.58 866.70

Net

Worth 797.11 944.64 1120.19 1167.48 1389.43 1341.71

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Past Performance

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1.3 NEED, OBJECTIVES, SCOPE AND LIMITATIONS OF THE STUDY

1.3.1 NEED FOR THE STUDY

The need for the study is as follows:

1. The study aim at assessing profitability and solvency position of the company.

2. The liquidity and activity positions of the firm are analyzed using liquidity and turnover

ratios involving current liabilities.

3. The solvency position of the company is also analyzed using ratios.

1.3.2 OBJECTIVES OF THE STUDY

1. To make an analysis on the financial performance of M/S Intelligence Credit

Management for 5 financial Years extending from 2005- 2006 to 2009- 2010.

2. To calculate profitability turnover & financial ratio to assess the financial position of the

firm.

3. To study the efficiency and liquidity position using ratios.

4. To study the trend of financial performance of the company

5. To asses individual financial segments and put forth the strength and weakness of the

financial elements of balance sheet through trend analysis.

1.3.3 SCOPE FOR THE STUDY:

The following are the scope that this project possesses its main value by the following

necessities;

1. The scope of this study is to compare the budget estimate, with the actual.

2. The study helps to know the budgetary control at Coimbatore.

3. To cover commercial & Non-commercial or political risks attendant on granting credit to a

foreign buyer.

4. To cover natural risks like an earthquake, floods etc.

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5. Availability of the funds at the required time to the exporter is to be analyzed.

6. It is purely based on the Affordability of the cost of funds.

1.3.4 LIMITATIONS OF THE STUDY

1. The study is based on the data obtained from the annual reports of the concern i.e.

balance sheet.

2. The period under study has been only for 5 financial years i.e. 2005 - 2006 to 2009 -

2010.

3. The study doesn’t take into account the other areas such as dividend policy, capital

budgeting etc.

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RESEARCH METHODOLOGY

1.1 RESEARCH DESIGN

The collected data were presented in tables and these tables were analyzed

systematically. Ratio analysis, the vital financial tool was used to study the financial

performance of Intelligence Credit Management. A chart and various diagrams are used to

explain the analysis clearly. It is an undisputed truth that graphs and diagrams render any

complicated discussion and any intricate subject, very simple to any casual reader of the thesis.

Common size financial statement is a tool to assess, in which figures reported are

converted into percentages to some common base. Trend percentages are also taken as a tool

which is immensely helpful in making a comparative study of the financial statement for several

years. The method of calculating trend percentages involves the calculation of percentage

relationship that each item bears to the same item in the base year.

1.2 DATA COLLECTION

The study is based on secondary source of data. Secondary data have been mainly

obtained from annual reports, records and books of Intelligence Credit Management.

The secondary data were also collected from audited financial statements periodicals and other

records maintained by Intelligence Credit Management.

1.3 PERIOD OF STUDY

Data of 5 financial years are used for the purpose of study. The 5 years of study

ranges from 2005- 2006 to 2009 - 2010.

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CHAPTER 2

ANALYSIS AND INTERPRETATIONS 2.1 PROFITABILITY RATIO 2.1.1 Gross Profit Margin Ratio

Table 2.1.1.1

Gross Profit Ratio = (Gross profit / Net sales) x 100

INTERPRETATION The table reveals Gross Profit Ratio showing slightly increasing trend, it was low in the

period 2006 - 2007 with 3.50% and raised during the period 2007 - 2008 to 7.62% then a sudden

decrease in the next year to 4.80% and from that it started raising to 6.86% in the period 2010 -

2011.

Year Gross Profit Net Sales Ratio % 2006 - 2007 15,524,000 443,655,702 3.50 2007 - 2008 42,814,000 562,156,209 7.62 2008 - 2009 26,844,000 558,979,157 4.80 2009 - 2010 41,968,000 642,036,128 6.54 2010 - 2011 46,919,000 684,042,985 6.86

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Chart 2.1.1.1

Gross Profit Margin Ratio

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2.1.2 Net Profit Margin Ratio Net Profit Ratio = (Net Profit after Tax / Net Sales) x 100

Table 2.1.2.1

Year Net Profit After Tax Net Sales Ratio %

2006 - 2007 2,483,226 443,655,702 0.56

2007 - 2008 27,793,429 562,156,209 4.94

2008 - 2009 13,372,347 558,979,157 2.39

2009 - 2010 26,629,773 642,036,128 4.15

2010 - 2011 22,321,948 684,042,985 3.26

INTERPRETATION The ratio was highest in the period 2006 - 2007 and lowest in the period 2005 - 2006. It

shows a fluctuating trend.

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2.1.3 Operating Profit Margin Ratio Operating Profit Ratio = (Operating Profit / Net Sales) x 100

Table 2.1.3.1

Year Operating Profit Net Sales Ratio %

2006 – 2007 24,963,264 443,655,702 5.63

2007 - 2008 33,518,306 562,156,209 5.96

2008 - 2009 35,247,359 558,979,157 6.31

2009 - 2010 60,449,540 642,036,128 9.42

2010 - 2011 65,282,800 684,042,985 9.54

INTERPRETATION

Higher operating profit ratio shows better operating efficiency. The ratio was high in

period 2009 - 2010. Therefore the operating efficiency is better in periods 2008 - 2009 & 2009 -

2010.

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Chart 2.1.3.1 Operating Profit Margin Ratio

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2.1.4 Return on Capital Employed

Return on Capital Employed = (Operating Profit / Capital Employed) x 100

Table 2.1.4.1

Year Operating Profit Capital Employed Ratio %

2006 - 2007 24,963,264 251,868,614 9.91

2007 - 2008 33,518,306 325,379,860 10.30

2008 - 2009 35,247,359 295,678,264 11.92

2010- 2011 60,449,540 290,317,852 20.82

2011 - 2012 65,282,800 299,028,910 21.83

INTERPRETATION The return on capital employed was low in the period 2005 - 2006 and highest in the

period 2009 - 2010. It shows the increasing trend so it is good for the company.

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Chart 2.1.4.1

Return on Capital Employed

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2.1.5 Return on Equity Return on Equity= (Equity Earnings / Net Worth) x 100

Table 2.1.5.1

Year Equity Earnings Net Worth Ratio %

2006 - 2007 3,924,130 94,464,264 4.15

2007 - 2008 30,293,429 112,019,306 27.04

2007 - 2009 14,872,347 116,748,359 12.74

2009 - 2010 31,229,773 138,943,355 22.48

2010 - 2011 35,032,105 134,170,505 26.11 INTERPRETATION The ratio was low in the period 2005 - 2006 and high in the period 2006 - 2007 and 2009

- 2010. Though there was a decline in the period 2007 - 2008 to 12.74% it shows the increasing

trend in the succeeding periods.

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Chart 2.1.5.1

Return on Equity

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2.1.6 Earning Per Share Earnings Per Share = (Net Profit – Preference Dividend / No. of equity Shares)

Table 2.1.6.1

Year Profit After Tax No. of equity Shares Ratio (Rs.)

2006 – 2007 3,924,130 37,000,000 0.11

2007 - 2008 30,293,429 40,000,000 0.76

2008 - 2009 14,872,347 40,000,000 0.37

2009 - 2010 31,229,773 47,500,000 0.66

2010 - 2011 35,032,105 47,500,000 0.74 INTERPRETATION The Earnings per Share helps in determining the market price of the Equity shares of the

company. Initially the EPS was low (Rs. 0.11) in the period 2005 - 2006 and high in the period

2006 - 2007 & 2009 - 2010. There was a decline in the period 2007 - 2008 to Rs. 0.37 and started

increasing in the succeeding periods.

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Chart 2.1.6.1

Earning Per Share

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

50000000

2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011

profit after tax

no.of equity shares

ratio (Rs)

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2.2 TURN OVER RATIO 2.2.1 Debtor’s turnover Ratio Debtor’s turnover Ratio = (Total Sales / Debtors)

Table 2.2.1.1

Year Total Sales Debtors Ratio (in times)

2006 – 2007 443,655,702 93,213,080 4.76

2007 - 2008 562,156,209 123,053,398 4.57

2008 - 2009 558,979,157 126,619,031 4.41

2009 - 2010 642,036,128 111,904,860 5.74

2010 - 2011 684,042,985 124,894,006 5.48

INTERPRETATION The Debtors turnover ratio shows a fluctuating trend. The ratio was low in the period

2007 - 2008 and high in the year 2008 - 2009. Though it is fluctuating it show a consistent

position.

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Chart 2.2.1.1

Debtor’s Turnover Ratio

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2.2.2 Debt Collection Period Debt Collection Period = [ (Months/ Days in a Year) / Debtors Turnover]

Table 2.2.2.1

Year Days in a Year Debtors Turnover (in times)

Debt Collection Period (in days)

2006 - 2007 360 4.76 75.63

2007 - 2008 360 4.57 78.77

2008 - 2009 360 4.41 81.63

2009 - 2010 360 5.74 62.72

2010 - 2011 360 5.48 65.69

INTERPRETATION A shorter collection period implies prompt payment by debtors. The collection period

was high in the period 2007 - 2008 (81.63 days) and low in the period 2008- 2009 (62.72 days).

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Chart 2.2.2.1 Debt Collection Period

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2.2.3 Fixed Asset Turnover Ratio Fixed Asset Turnover Ratio = (Net Sales / Fixed Assets)

Table 2.2.3.1

Year Net Sales Fixed Assets Ratio

2006 - 2007 443,655,702 147,770,694 3.00

20067- 2008 562,156,209 139,052,943 4.04

2008- 2009 558,979,157 132,523,352 4.22

2009- 2010 642,036,128 128,771,175 4.99

2010 - 2011 684,042,985 144,989,602 4.72

INTERPRETATION The Fixed Asset Turnover ratio shows an increasing trend. The ratio was low initially and

rose in succeeding periods to 4.99 in the period 2008 - 2009 and it slightly decreased to 4.72 in

the period 2009 - 2010.

42

Chart 2.2.3.1

Fixed asset turnover ratio

43

2.2.4 Total Assets Turnover Ratio Total Assets Turnover Ratio = ( Net Sales / Total Assets)

Table 2.2.4.1

Year Net Sales Total Assets Ratio

2006 – 2007 443,655,702 251,868,614 1.76

2007 - 2008 562,156,209 325,379,860 1.73

2008 - 2009 558,979,157 295,678,264 1.89

2009 - 2010 642,036,128 290,317,852 2.21

2010 - 2011 684,042,985 299,028,910 2.29

INTERPRETATION The ratio was low in the period 2005 - 2006 and high in the period 2009 - 2010. It shows

an increasing trend.

44

Chart 2.2.4.1 Total Assets Turnover Ratio

45

2.2.5 Inventory Turnover Ratio Inventory Turnover Ratio = (Cost of Goods Sold / Average Inventory)

Table 2.2.5.1

Year Cost of Goods Sold Average Inventory In times

2006 – 2007 240,246,671 58,290,635 4.12

2007 - 2008 305,918,359 77,811,639 3.93

2008 - 2009 305,609,655 88,734,863 3.44

2009 - 2010 353,912,960 90,990,585 3.89

2010 - 2011 362,439,330 101,639,924 3.57

INTERPRETATION A high inventory turnover ratio may be caused by a low level of inventory which may

result in frequent stock outs and loss of sales. The ratio was high in the period 2005 - 2006 and

low in the period 2006 - 2007 & 2009 - 2010. It shows a decreasing trend.

46

Chart 2.2.5.1 Inventory Turnover Ratio

47

2.2.6 Stock Velocity Stock Velocity = (Days in a Year / Inventory Turnover Ratio)

Table 2.2.6.1

Year Days in a Year Inventory

Turnover Ratio (in times)

In days

2006 – 2007 360 4.12 87.38

2007 - 2008 360 3.93 91.60

2008 - 2009 360 3.44 104.65

2009 - 2010 360 3.89 92.54

2010 - 2011 360 3.57 100.84

INTERPRETATION The inventory turnover ratio and the velocity period of the company remained stable

which is 3.44 times and 104.65 days. In 2005 - 2006 the velocity period was 87.38. Introduction

of proper stock control system like periodic stock taking would bring down the velocity period.

48

Chart 2.2.6.1

Stock Velocity

49

2.3 LIQUIDITY RATIO

2.3.1 Current Ratio Current Ratio = (Current Assets / Current liabilities)

Table 2.3.1.1

Year Current Assets Current liabilities Ratio

2006 – 2007 195,883,904 102,660,992 1.91

2007 - 2008 300,572,233 133,910,888 2.24

2008 - 2009 261,060,070 115,396,812 2.26

2009 - 2010 280,750,701 136,000,733 2.06

2010 - 2011 291,217,546 163,281,315 1.78

INTERPRETATION This ratio indicates the extent to which short term creditors are safe in terms of liquidity

of the current assets. Thus, higher the value of the current ratio, more liquid the firm is and more

ability it has to pay the bills. However a current ratio of 2:1 is considered generally satisfactory.

As per the study the current ratio varies from 1.78 to 2.26. The current ratio was satisfactory

during 2006 - 2007, 2007 - 2008 and 2008 - 2009.

50

Chart 2.3.1.1 Liquidity Ratio: Current Ratio

51

2.3.2 Quick Ratio Quick Ratio = (Quick Assets / Current liabilities) Quick Assets = Current Assets - Inventory

Table 2.3.2.1

Year Quick Assets Current liabilities Ratio

2006 – 2007 135,269,918 102,660,992 1.32

2007 - 2008 205,562,934 133,913,888 1.54

2008 - 2009 178,599,642 115,396,812 1.55

2009 - 2010 181,229,959 136,000,733 1.33

2010 - 2011 187,458,441 163,281,315 1.15

INTERPRETATION The quick ratio of 1:1 is considered satisfactory. Though the quick ratio during the period

of study are above the satisfactory level, the period 2007 - 2008 having the ratio 1.55 times was

good to the company and it started decreasing in the succeeding years.

52

Chart 2.3.2.1

Quick Ratio

53

2.4 LEVERAGE RATIO

2.4.1 Debt Equity Ratio Debt Equity Ratio = (Total Debt / Share Holders Fund)

Table 2.4.1.1

Year Total Debt Share Holders Fund Ratio

2006 – 2007 93,213,080 94,464,264 0.99

2007 - 2008 123,053,398 112,019,306 1.10

2008 - 2009 126,619,031 116,748,359 1.08

2009 - 2010 111,904,806 138,943,355 0.81

2010 - 2011 124,894,006 134,170,505 0.93 INTERPRETATION The ratio indicates the proportion of owners’ stake in the business. Excessive liabilities

tend to cause insolvency. The ratio was high during the period 2006 - 2007 and low during the

period 2008 - 2009. The general norm for this ratio is 2:1.

54

Chart 2.4.1.1 Leverage Ratio: Debt Equity ratio

55

2.4.2 Debt – Assets Ratio Debt – Assets Ratio = (Total Debt / Total Assets)

Table 2.4.2.1

Year Total Debt Total Assets Ratio

2006 – 2007 157,404,350 251,868,614 0.62

2007 - 2008 213,360,554 325,379,860 0.66

2008 - 2009 178,929,905 295,678,264 0.61

2009 - 2010 151,374,497 290,317,852 0.52

2010 - 2011 145,762,978 299,028,910 0.49

INTERPRETATION The ratio was high during the period 2006 - 2007 and low during the period 2009 - 2010.

It shows a decreasing trend.

56

Chart 2.4.2.1

Debt assets ratio

57

2.5 ANALYSIS OF COMMON SIZE BALANCE SHEET 2.5.1 Common Size Balance Sheet (2006, 2007)

Table 2.5.1.1

Particulars 31.03.2006 Percentage 31.03.2007 Percentage Sources of Funds Share Capital 23,000,000 9.53 37,000,000 14.69 Reserves & Surplus 56,710,638 23.50 57,464,264 22.82 Loan Funds Secured Loans 128,370,342 53.20 113,771,350 45.17 Unsecured Loans 33,201,000 13.76 43,633,000 17.32 Total 241,281,980 100.00 251,868,614 100.00 Application of Funds Fixed Assets 179,872,825 74.55 147,770,694 58.67 Investments 1,102,442 0.46 692,786 0.28 Current Assets, Loans & Advances

Inventories 55,967,284 23.20 60,613,986 24.07 Sundry Debtors 69,949,936 28.99 93,213,080 37.01 Cash & Bank Balances 8,599,952 3.56 18,554,203 7.37 Deposits, Loans& Advances 36,523,557 15.14 23,502,635 9.33

Total 171,040,729 70.89 195,883,904 77.77 Less: Current Liabilities & Provisions

Current Liabilities 117,112,122 48.54 99,963,143 39.69 Provisions 3,247,779 1.35 2,697,779 1.07 Net Current Assets 50,680,828 21.00 93,222,982 37.01 Miscellaneous Expenditure 9,625,885 3.99 10,182,152 4.04

Total 241,281,980 100.00 251,868,614 100.00

58

Chart 2.5.1.1 Analysis on common size balance sheet: Balance sheet 2006-07

2.5.2 Common Size Balance Sheet (2007, 2008)

59

Table 2.5.2.1

Particulars 31.03.2007 Percentage 31.03.2008 Percentage

Sources of Funds Share holders Fund Share Capital 37,000,000 14.69 40,000,000 12.29 Reserves & Surplus 57,464,264 22.82 72,019,306 22.13 Loan Funds Secured Loans 113,771,350 45.17 185,582,274 57.04 Unsecured Loans 43,633,000 17.32 27,778,280 8.54 Total 251,868,614 100.00 325,379,860 100.00 Application of Funds Fixed Assets 147,770,694 58.67 139,052,943 42.74 Investments 692,786 0.28 685,222 0.21 Current Assets, Loans & Advances

Inventories 60,613,986 24.07 95,009,299 29.20 Sundry Debtors 93,213,080 37.01 123,053,398 37.82 Cash & Bank Balances 18,554,203 7.37 5,729,942 1.76 Deposits, Loans& Advances 23,502,635 9.33 76,779,594 23.60



Total 251,868,614 100.00 325,379,860 100.00

Chart 2.5.2.1

60

Common Size Balance Sheet (2007, 2008)


61

Table 2.5.3.1


Sources of Funds

Share holders Fund

Share Capital 40,000,000 12.29 40,000,000 13.53

Reserves & Surplus 72,019,306 22.13 76,748,359 25.96

Loan Funds

Secured Loans 185,582,274 57.04 150,171,725 50.79

Unsecured Loans 27,778,280 8.54 28,758,180 9.73

Total 325,379,860 100.00 295,678,264 100.00

Application of Funds

Fixed Assets 139,052,943 42.74 132,523,352 44.82

Investments 685,222 0.21 684,222 0.23 Current Assets, Loans & Advances

Inventories 95,009,299 29.20 82,460,428 27.89

Sundry Debtors 123,053,398 37.82 126,619,031 42.82

Cash & Bank Balances 5,729,942 1.76 6,589,816 2.23 Deposits, Loans& Advances 76,779,594 23.60 45,390,795 15.35


Current Liabilities 128,369,169 39.45 108,751,813 36.78

Provisions 5,541,719 1.70 6,644,999 2.25

Net Current Assets 166,661,345 51.22 145,663,258 49.26 Miscellaneous Expenditure 18,980,350 5.83 16,807,432 5.68

Total 325,379,860 100.00 295,678,264 100.00

62

Chart 2.5.3.1 Balance Sheet 2008-2009


63

Table 2.5.4.1


Sources of Funds Share holders Fund Share Capital 40,000,000 13.53 47,500,000 16.36 Reserves & Surplus 76,748,359 25.96 75,958,085 26.16 Deferred Tax(net) ------------ ---------- 15,485,270 5.33 Loan Funds Secured Loans 150,171,725 50.79 128,552,520 44.28 Unsecured Loans 28,758,180 9.73 22,821,977 7.86 Total 295,678,264 100.00 290,317,852 100.00 Application of Funds

Fixed Assets 132,523,352 44.82 128,771,175 44.36 Investments 684,222 0.23 683,722 0.24 Current Assets, Loans & Advances

Inventories 82,460,428 27.89 99,520,742 34.28 Sundry Debtors 126,619,031 42.82 111,904,860 38.55 Cash & Bank Balances 6,589,816 2.23 9,821,111 3.38

Deposits, Loans& Advances 45,390,795 15.35 59,503,988 20.50



Total 295,678,264 100.00 290,317,852 100.00

Chart 2.5.4.1

64

Balance Sheet 2009-2010


65

Table 2.5.5.1

Particulars 31.03.2009 Percentage 31.03.2010 Percentage Sources of Funds Share Capital 47,500,000 16.36 47,500,000 15.88 Reserves & Surplus 75,958,085 26.16 86,670,505 28.98 Deferred Tax(net) 15,485,270 5.33 19,095,427 6.39 Secured Loans 128,552,520 44.28 123,702,659 41.37 Unsecured Loans 22,821,977 7.86 22,060,319 7.38 Total 290,317,852 100.00 299,028,910 100.00 Application of Fund Fixed Assets 128,771,175 44.36 144,989,602 48.49 Investments 683,722 0.24 698,722 0.23 Current Assets Inventories 99,520,742 34.28 103,759,105 34.70 Sundry Debtors 111,904,860 38.55 124,894,006 41.77 Cash & Bank 9,821,111 3.38 13,077,458 4.37 Depo., Loans & Adva. 59,503,988 20.50 49,486,977 16.55 Total 280,750,701 96.70 291,217,546 97.39 Current Liabilities 114,898,809 39.58 135,465,900 45.30 Provisions 21,101,924 7.27 27,815,415 9.30 Net Current Assets 144,749,968 49.86 127,936,231 42.78 Misc. - Expenditure 16,112,987 5.55 25,404,355 8.50 Total 290,317,852 100.00 299,028,910 100.00

INTERPRETATION

Taking total source of funds as 100 reserves and surplus, both secured and unsecured

loans shows an increasing trend and slight decrease in the period 2008 - 2009. Taking total

application of funds as 100 the fixed assets shows a fluctuating trend varying from 58.67 during

the period 2005 - 2006 to 42.74 during the period 2006- 2007. the total current assets shows an

increasing trend during period of the study, it was low 77.77 during the period 2005 - 2006 and

high 97.39 during the period 2009 - 2010, though there was a slight decrease during the period

2007 - 2008. The current liabilities shows an fluctuating trend, it was high 54.6 during the period

2009 - 2010 and low 39.05 during the period 2007 - 2008. On netting the current assets and

current liabilities, net current assets shows a fluctuating trend, it was low 37.01 during the period

2005 - 2006 and high 51.22 during the period 2006 - 2007.

66

Chart 2.5.5.1

Balance Sheet 20010-11

67

2.6 ANALYSIS OF COMMON SIZE INCOME STATEMENT

2.6.1 Common Size Income Statement (2005, 2006)

Table 2.6.1.1

Particulars 31.03.2005 Percentage 31.03.2006 PercentageIncome Sales 356,623,072 98.11 443,655,702 99.70 Other Income 2,527,954 0.70 2,677,899 0.60

Increase/ Decrease in Stock of Finished Goods & Stock in Trade

4,337,079 1.19 -1,342,571 -0.30

Total Income 363,488,105 100.00 444,991,030 100.00 Expenditure Raw Materials Consumed 187,365,835 51.55 240,246,671 53.99 Stores & Consumables 2,138,042 0.59 2,143,176 0.48 Power & Fuel 3,633,696 1.00 5,338,101 1.20 Trading Goods Consumed 6,076,505 1.67 9,638,063 2.17 Employee Cost 32,199,076 8.86 36,977,451 8.31 Administrative Expenses 56,853,505 15.64 63,683,585 14.31 Interest, Finance & Bank Charges 18,559,501 5.11 25,764,462 5.79

Selling & Distribution Expenses 38,849,374 10.69 36,481,781 8.20

Other Expenses 1,784,216 0.49 5,254,581 1.18 Repair & Maintenance 4,754,737 1.31 3,939,064 0.89 Depreciation 10,736,554 2.95 11,599,965 2.61 Total Expenditure 362,951,041 99.85 441,066,900 99.12 Net Profit for the Year 537,064 0.15 3,924,130 0.88 Total 363,488,105 100.00 444,991,030 100.00

68

Chart 2.6.1.1 Common Size Income Statement (2005, 2006)

69


Table 2.6.2.1

Particulars 31.03.2006 Percentage 31.03.2007 Percentage Income Sales 443,655,702 99.70 562,156,209 96.76 Other Income 2,677,899 0.60 2,194,910 0.38 Increase/ Decrease in Stock of Finished Goods & Stock in Trade

-1,342,571 -0.30 16,624,415 2.86

Total Income 444,991,030 100.00 580,975,534 100.00 Expenditure Raw Materials Consumed 240,246,671 53.99 305,918,359 52.66

Stores & Consumables 2,143,176 0.48 2,999,915 0.52 Power & Fuel 5,338,101 1.20 6,906,040 1.19 Trading Goods Consumed 9,638,063 2.17 739,213 0.13

Employee Cost 36,977,451 8.31 43,176,685 7.43 Excise Duty 0.00 76,055,525 13.09 Administrative Expenses 63,683,585 14.31 15,004,348 2.58 Interest, Finance & Bank Charges 25,764,462 5.79 26,291,527 4.53


Other Expenses 5,254,581 1.18 2,763,446 0.48 Repair & Maintenance 3,939,064 0.89 4,987,867 0.86 Depreciation 11,599,965 2.61 12,521,481 2.16 Total Expenditure 441,066,900 99.12 550,682,105 94.79 Net Profit for the Year 3,924,130 0.88 30,293,429 5.21 Total 444,991,030 100.00 580,975,534 100.00

70

Chart 2.6.2.1

Income Statement (2006, 2007)

71


Table 2.6.3.1


16,624,415 2.86 -2,422,729 -0.43


Stores & Consumables 2,999,915 0.52 2,877,773 0.52 Power & Fuel 6,906,040 1.19 5,770,990 1.03 Trading Goods Consumed 739,213 0.13 172,412 0.03

Employee Cost 43,176,685 7.43 46,667,402 8.36 Excise Duty 76,055,525 13.09 70,179,471 12.57 Administrative Expenses 15,004,348 2.58 14,507,346 2.60 Interest, Finance & Bank Charges 26,291,527 4.53 25,245,113 4.52



72

Chart 2.6.3.1 Income Statement (2007, 2008)

73


Table 2.6.4.1


-2,422,729 -0.43 11,962,376 2.05

Total Income 558,322,454 100.00 583,821,779 100.00 Expenditure Raw Materials Consumed 305,609,655 54.74 353,912,960 60.62 Stores & Consumables 2,877,773 0.52 4,301,998 0.74 Power & Fuel 5,770,990 1.03 6,268,736 1.07 Trading Goods Consumed 172,412 0.03 95,905 0.02

Employee Cost 46,667,402 8.36 51,392,395 8.80 Excise Duty 70,179,471 12.57 5,055,469 0.87 Administrative Expenses 14,507,346 2.60 17,310,767 2.97 Interest, Finance & Bank Charges 25,245,113 4.52 23,681,777 4.06



74

Chart 2.6.4.1 Income Statement (2008, 2009)

75


Table 2.6.5.1

Particulars 31.03.2009 Percentage 31.03.2010 Percentage Income Sales 568,970,924 97.46 604,922,063 100.79 Other Income 2,888,479 0.49 3,095,246 0.52 Inc. / Dec. in Stock of FG & Stock in Trade 11,962,376 2.05 -7,837,636 -1.31


Stores & Consumables 4,301,998 0.74 3,898,992 0.65 Power & Fuel 6,268,736 1.07 6,044,134 1.01 Trading Goods Consu. 95,905 0.02 5,605,012 0.93 Employee Cost 51,392,395 8.80 55,357,601 9.22 Excise Duty 5,055,469 0.87 -------------- ------ Admi. Expenses 17,310,767 2.97 20,867,497 3.48 Int.,& Bank Charges 23,681,777 4.06 12,629,477 2.10

Selling & Dist. Exp. 66,314,412 11.36 72,959,579 12.16 Other Expenses 9,304,847 1.59 9,133,027 1.52 Repair & Maintenance 4,214,800 0.72 4,325,955 0.72 Depreciation 10,737,940 1.84 11,886,964 1.98 Total Expenditure 552,592,006 94.65 565,147,568 94.16 Net Profit for the Year 31,229,773 5.35 35,032,105 5.84 Total 583,821,779 100.00 600,179,673 100.00

INTERPRETATION Assumed total income as 100 sales figure shows a fluctuating trend it was low 96.76

during the period 2006 - 2007 and high 100.79 during the period 2009 -2010. The total

Expenditure was high 99.85 during the period 2005 - 2006 and low 94.16 during the period 2009

- 2010, it shows that the company has started reducing the expenses. The net profit was low 0.15

during the period 2005 -2006 and high 5.84 during the period 2009 -2010; it shows that the net

profit has an increasing trend during the period of study.

76

Chart 2.6.5.1 Income statement 2009-10

77

2.7 ANALYSIS OF COMPARATIVE BALANCE SHEET 2.7.1 Comparative Balance Sheet (2005, 2006)

Table 2.7.1.1

Particulars 2005 2006 Inc. / Dec. Inc. / Dec. (%)

Inventories 55,967,284 60,613,986 4,646,702 8.30 Sundry Debtors 69,949,936 93,213,080 23,263,144 33.26 Cash & Bank 8,599,952 18,554,203 9,954,251 115.75 Dep. Loans& Adv. 36,523,557 23,502,635 -13,020,922 -35.65 Total C.A. 171,040,729 195,883,904 24,843,175 14.52 Fixed Assets 179,872,825 147,770,694 -32,102,131 -17.85 Investments 1,102,442 692,786 -409,656 -37.16 Total Assets 352,015,996 344,347,384 -7,668,612 -2.18 Current Liabilities 117,112,122 99,963,143 -17,148,979 -14.64 Provisions 3,247,779 2,697,779 -550,000 -16.93 Total C.L. 120,359,901 102,660,922 -17,698,979 -14.71 Mis.- Expenditure 9,625,885 10,182,152 556,267 5.78 Share Capital 23,000,000 37,000,000 14,000,000 60.87 Reserves & Surpl. 56,710,638 57,464,264 753,626 1.33 Total Reserves & Surplus 79,710,638 94,464,264 14,753,626 18.51

Secured Loans 128,370,342 113,771,350 -14,598,992 -11.37 Unsecured Loans 33,201,000 43,633,000 10,432,000 31.42 Total Loan 161,571,342 157,404,350 -4,166,992 -2.58 Total Liabilities & Capital 371,267,766 364,711,688 -6,556,078 -1.77

INTERPRETATION On comparing the balance sheet of company for the year ending 2005,2006. Current

assets have been increased by 14.52 %, the total Assets have been decreased by 2.18 %. The

current liabilities have been decreased by 14.71 %; total reserves and surplus have been raised

by18.51 %. The total liabilities and capital have been decreased by 1.77%.

78

Chart 2.7.1.1 Comparative Balance Sheet: Balance Sheet 2005-06

79

2.7.2 Comparative Balance Sheet (2006, 2007)

Table 2.7.2.1

Particulars 2006 2007 Inc. / Dec. Inc / Dec(%)

Inventories 60,613,986 95,009,299 34,395,313 56.74 Sundry Debtors 93,213,080 123,053,398 29,840,318 32.01 Cash & Bank 18,554,203 5,729,942 -12,824,261 -69.12 Dep. Loans& Adv. 23,502,635 76,779,594 53,276,959 226.69 Total C.A. 195,883,904 300,572,233 104,688,329 53.44 Fixed Assets 147,770,694 139,052,943 -8,717,751 -5.90 Investments 692,786 685,222 -7,564 -1.09 Total Assets 344,347,384 440,310,398 95,963,014 27.87 Current Liabilities 99,963,143 128,369,169 28,406,026 28.42

Provisions 2,697,779 5,541,719 2,843,940 105.42 Total C.L. 102,660,922 133,910,888 31,249,966 30.44 Mis. - Expenditure 10,182,152 18,980,350 8,798,198 86.41 Share Capital 37,000,000 40,000,000 3,000,000 8.11 Reserves & Surplus 57,464,264 72,019,306 14,555,042 25.33 Total Reserves & Surplus 94,464,264 112,019,306 17,555,042 18.58

Secured Loans 113,771,350 185,582,274 71,810,924 63.12 Unsecured Loans 43,633,000 27,778,280 -15,854,720 -36.34 Total Loan 157,404,350 213,360,554 55,956,204 35.55 Total Liabilities & Capital 364,711,688 478,271,098 113,559,410 31.14


assets have been increased by 53.44 %, the total Assets have been increased by 27.87 %. The

current liabilities have been increased by 30.44 %; total reserves and surplus have been raised by

18.58 %. The total liabilities and capital have been increased by 31.14%.

80

Chart 2.7.2.1

Comparative Balance Sheet 2006-07

81


Table 2.7.3.1

Particulars 2007 2008 Inc / Dec Inc / Dec (%)

Inventories 95,009,299 82,460,428 -12,548,871 -13.21 Sundry Debtors 123,053,398 126,619,031 3,565,633 2.90 Cash & Bank 5,729,942 6,589,816 859,874 15.01 Dep.Loan& Adv. 76,779,594 45,390,795 -31,388,799 -40.88 Total C.A. 300,572,233 261,060,070 -39,512,163 -13.15 Fixed Assets 139,052,943 132,523,352 -6,529,591 -4.70 Investments 685,222 684,222 -1,000 -0.15 Total Assets 440,310,398 394,267,644 -46,042,754 -10.46 Current Liabilit. 128,369,169 108,751,813 -19,617,356 -15.28 Provisions 5,541,719 6,644,999 1,103,280 19.91 Total C.L. 133,910,888 115,396,812 -18,514,076 -13.83 Mis.-Expenditur. 18,980,350 16,807,432 -2,172,918 -11.45 Share Capital 40,000,000 40,000,000 0 0.00 Res. & Surplus 72,019,306 76,748,359 4,729,053 6.57 Total Reserves & Surplus 112,019,306 116,748,359 4,729,053 4.22

Secured Loans 185,582,274 150,171,725 -35,410,549 -19.08 Unsec. Loans 27,778,280 28,758,180 979,900 3.53 Total Loan 213,360,554 178,929,905 -34,430,649 -16.14 Total Liabilities & Capital 478,271,098 427,882,508 -50,388,590 -10.54


assets have been decreased by 13.15 %, the total Assets have been decreased by 10.46 %. The

current liabilities have been decreased by 13.83 %; total reserves and surplus have been raised by

4.22 %. The total liabilities and capital have been decreased by 10.54%.

82

Chart 2.7.3.1 Comparative Balance Sheet 2007-08

83


Table 2.7.4.1

Particulars 2008 2009 Inc / Dec Inc / Dec (%)

Inventories 82,460,428 99,520,742 17,060,314 20.69 Sundry Debtors 126,619,031 111,904,860 -14,714,171 -11.62 Cash & Bank 6,589,816 9,821,111 3,231,295 49.03 Dep. Loan& Adv. 45,390,795 59,503,988 14,113,193 31.09 Total C.A. 261,060,070 280,750,701 19,690,631 7.54 Fixed Assets 132,523,352 128,771,175 -3,752,177 -2.83 Investments 684,222 683,222 -1,000 -0.15 Total Assets 394,267,644 410,205,098 15,937,454 4.04 Current Liabilities 108,751,813 114,898,809 6,146,996 5.65 Provisions 6,644,999 21,101,924 14,456,925 217.56 Total C.L. 115,396,812 136,000,733 20,603,921 17.85 Mis.- Expenditure 16,807,432 16,112,987 -694,445 -4.13 Share Capital 40,000,000 47,500,000 7,500,000 18.75 Res. & Surplus 76,748,359 75,958,085 -790,274 -1.03 Total Reserves & Surplus 116,748,359 123,458,085 6,709,726 5.75

Secured Loans 150,171,725 128,552,520 -21,619,205 -14.40 Unsecured Loans 28,758,180 22,821,977 -5,936,203 -20.64 Total Loan 178,929,905 151,374,497 -27,555,408 -15.40 Total Liabilities & Capital 427,882,508 426,946,302 -936,206 -0.22




5.75 %. The total liabilities and capital have been decreased by 0.22 %.

84


85


Table 2.7.5.1

Particulars 2009 2010 Inc / Dec Inc/Dec (%)

Inventories 99,520,742 103,759,105 4,238,363 4.26 Sundry Debtors 111,904,860 124,894,006 12,989,146 11.61 Cash & Bank 9,821,111 13,077,458 3,256,347 33.16 Dep. Loan& Adv. 59,503,988 49,486,977 -10,017,011 -16.83 Total C.A. 280,750,701 291,217,546 10,466,845 3.73 Fixed Assets 128,771,175 144,989,602 16,218,427 12.59 Investments 683,222 698,722 15,500 2.27 Total Assets 410,205,098 436,905,870 26,700,772 6.51 Current Liabilities 114,898,809 135,465,900 20,567,091 17.90 Provisions 21,101,924 27,815,415 6,713,491 31.81 Total C.L. 136,000,733 163,281,315 27,280,582 20.06 Mis. - Expenditure 16,112,987 25,404,355 9,291,368 57.66 Share Capital 47,500,000 47,500,000 0 0 Reserves & Surplus 75,958,085 86,670,505 10,712,420 14.10 Total Reserves & Surplus 123,458,085 134,170,505 10,712,420 8.68

Secured Loans 128,552,520 123,702,659 -4,849,861 -3.77 Unsecured Loans 22,821,977 22,060,319 -761,658 -3.34 Total Loan 151,374,497 145,762,978 -5,611,519 -3.71 Total Liabilities & Capital 426,946,302 468,619,153 41,672,851 9.76




8.68 %. The total liabilities and capital have been increased by 9.76 %.

86


87

2.8 ANALYSIS OF COMPARATIVE FINANCIAL STATEMENT 2.8.1 Comparative Financial Statement (2005, 2006)

Table 2.8.1.1

Particulars 31.03.2005 31.03.2006 Inc / Dec Inc/ Dec (%) Income Sales 356,623,072 443,655,702 87,032,630 24.40 Other Income 2,527,954 2,677,899 149,945 5.93 Inc. / Dec. in Stock of F.G.& Stock in Trade 4,337,079 -1,342,571 -5,679,650 -130.96

Total Income 363,488,105 444,991,030 81,502,925 22.42 Expenditure R.M. Consumed 187,365,835 240,246,671 52,880,836 28.22 Stores & Consumables 2,138,042 2,143,176 5,134 0.24 Power & Fuel 3,633,696 5,338,101 1,704,405 46.91 Trading Goods Consumed 6,076,505 9,638,063 3,561,558 58.61

Employee Cost 32,199,076 36,977,451 4,778,375 14.84 Administrative Expenses 56,853,505 63,683,585 6,830,080 12.01 Interest, Finance & Bank Charges 18,559,501 25,764,462 7,204,961 38.82

Selling & Dist. Exp. 38,849,374 36,481,781 -2,367,593 -6.09 Other Expenses 1,784,216 5,254,581 3,470,365 194.50 Repair & Maintenance 4,754,737 3,939,064 -815,673 -17.15 Depreciation 10,736,554 11,599,965 863,411 8.04 Total Expenditure 362,951,041 441,066,900 78,115,859 21.52 Net Profit for the Year 537,064 3,924,130 3,387,066 630.66

INTERPRETATION On comparing the financial statement of company for the year ending 2005,2006. Total

income has been increased by 22.42 %. The total Expenditure has been increased by 21.52 %.

The Net profit has been increased by 630.66 %.

88

Chart 2.8.1.1

Comparative Financial Statement (2005, 2006)

89

2.8.2 Comparative Financial Statement (2006, 2007)

Table 2.8.2.1

Particulars 31.03.2006 31.03.2007 Inc / Dec Inc/ Dec (%)

Income Sales 443,655,702 562,156,209 118,500,507 26.71 Other Income 2,677,899 2,194,910 -482,989 -18.04 Inc. / Dec. in Stock of F.G.& Stock in Trade -1,342,571 16,624,415 17,966,986 -1338.25

Total Income 444,991,030 580,975,534 135,984,504 30.56 Expenditure R. M Consumed 240,246,671 305,918,359 65,671,688 27.34 Stores & Consumables 2,143,176 2,999,915 856,739 39.98 Power & Fuel 5,338,101 6,906,040 1,567,939 29.37 Trading Goods Consumed 9,638,063 739,213 -8,898,850 -92.33

Employee Cost 36,977,451 43,176,685 6,199,234 16.76 Excise Duty 76,055,525 76,055,525 0

Adm. Expenses 63,683,585 15,004,348 -48,679,237 -76.44

Interest, Finance & Bank Charges 25,764,462 26,291,527 527,065 2.05

Selling & Dist. Exp. 36,481,781 53,317,699 16,835,918 46.15 Other Expenses 5,254,581 2,763,446 -2,491,135 -47.41 Repair & Maintenance 3,939,064 4,987,867 1,048,803 26.63 Depreciation 11,599,965 12,521,481 921,516 7.94 Total Expenditure 441,066,900 550,682,105 109,615,205 24.85 Net Profit for the Year 3,924,130 30,293,429 26,369,299 671.98

INTERPRETATION On comparing the financial statement of company for the year ending 2006,2007. Total

income has been increased by 30.56 %. The total Expenditure has been increased by 24.85 %.

The Net profit has been increased by 671.98 %.

90

Chart 2.8.2.1 Financial statement 2006-07

91


Table 2.8.3.1

Particulars 31.03.2007 31.03.2008 Inc / Dec Inc/ Dec (%) Income Sales 562,156,209 558,979,157 -3,177,052 -0.57 Other Income 2,194,910 1,766,026 -428,884 -19.54 Inc. / Dec. in Stock of F.G.& Stock in Trade 16,624,415 -2,422,729 -19,047,144 -114.57

Total Income 580,975,534 558,322,454 -22,653,080 -3.90 Expenditure R. M. Consumed 305,918,359 305,609,655 -308,704 -0.10 Stores & Consumables 2,999,915 2,877,773 -122,142 -4.07 Power & Fuel 6,906,040 5,770,990 -1,135,050 -16.44 Trading Goods Consumed 739,213 172,412 -566,801 -76.68

Employee Cost 43,176,685 46,667,402 3,490,717 8.08 Excise Duty 76,055,525 70,179,471 -5,876,054 -7.73 Adm. Expenses 15,004,348 14,507,346 -497,002 -3.31 Interest, Finance & Bank Charges 26,291,527 25,245,113 -1,046,414 -3.98

Selling & Dist. Exp. 53,317,699 51,493,793 -1,823,906 -3.42 Other Expenses 2,763,446 4,977,782 2,214,336 80.13 Repair & Maintenance 4,987,867 3,976,867 -1,011,000 -20.27 Depreciation 12,521,481 11,971,503 -549,978 -4.39 Total Expenditure 550,682,105 543,450,107 -7,231,998 -1.31

Net Profit for the Year 30,293,429 14,872,347 -15,421,082 -50.91

INTERPRETATION On comparing the financial statement of company for the years 2007-08. Total income

has been decreased by 3.90 %. The total Expenditure has been decreased by 1.31 %. The Net

profit has been decreased by 50.91 %.

92

Chart 2.8.3.1 Financial statement 2007-08

93


Table 2.8.4.1

Particulars 31.03.2008 31.03.2009 Inc / Dec Inc/ Dec (%)Income Sales 558,979,157 568,970,924 9,991,767 1.79 Other Income 1,766,026 2,888,479 1,122,453 63.56 Inc. / Dec. in Stock of F.G.& Stock in Trade -2,422,729 11,962,376 14,385,105 -593.76

Total Income 558,322,454 583,821,779 25,499,325 4.57 Expenditure R. M. Consumed 305,609,655 353,912,960 48,303,305 15.81 Stores & Consumables 2,877,773 4,301,998 1,424,225 49.49 Power & Fuel 5,770,990 6,268,736 497,746 8.62 Trading Goods Consumed 172,412 95,905 -76,507 -44.37

Employee Cost 46,667,402 51,392,395 4,724,993 10.12 Excise Duty 70,179,471 5,055,469 -65,124,002 -92.80 Adm. Expenses 14,507,346 17,310,767 2,803,421 19.32 Interest, Finance & Bank Charges 25,245,113 23,681,777 -1,563,336 -6.19

Selling & Dist. Exp. 51,493,793 66,314,412 14,820,619 28.78 Other Expenses 4,977,782 9,304,847 4,327,065 86.93 Repair & Maintenance 3,976,867 4,214,800 237,933 5.98 Depreciation 11,971,503 10,737,940 -1,233,563 -10.30 Total Expenditure 543,450,107 552,592,006 9,141,899 1.68 Net Profit for the Year 14,872,347 31,229,773 16,357,426 109.99

INTERPRETATION On comparing the financial statement of company for the years 2008, 2009. Total income

has been increased by 4.57 %. The total Expenditure has been increased by 1.68 %. The Net

profit has been increased by 109.99 %.

94

Chart 2.8.4.1

Financial statement 2008-09

95


Table 2.8.5.1

Particulars 31.03.2009 31.03.2010 Inc / Dec Inc/ Dec (%)

Income Sales 568,970,924 604,922,063 35,951,139 6.32 Other Income 2,888,479 3,095,246 206,767 7.16 Inc. / Dec. in Stock of F.G.& Stock in Trade 11,962,376 -7,837,636 -19,800,012 -165.52

Total Income 583,821,779 600,179,673 16,357,894 2.80 Expenditure R.M. Consumed 353,912,960 362,439,330 8,526,370 2.41 Stores & Consumables 4,301,998 3,898,992 -403,006 -9.37 Power & Fuel 6,268,736 6,044,134 -224,602 -3.58 Trading Goods Consumed 95,905 5,605,012 5,509,107 5744.34

Employee Cost 51,392,395 55,357,601 3,965,206 7.72 Excise Duty 5,055,469 -5,055,469 -100.00 Adm. Expenses 17,310,767 20,867,497 3,556,730 20.55 Interest, Finance & Bank Charges 23,681,777 12,629,477 -11,052,300 -46.67

Selling & Dist. Exp. 66,314,412 72,959,579 6,645,167 10.02 Other Expenses 9,304,847 9,133,027 -171,820 -1.85 Repair & Maintenance 4,214,800 4,325,955 111,155 2.64 Depreciation 10,737,940 11,886,964 1,149,024 10.70 Total Expenditure 552,592,006 565,147,568 12,555,562 2.27 Net Profit for the Year 31,229,773 35,032,105 3,802,332 12.18

INTERPRETATION On comparing the financial statement of company for the years 2009, 2010. Total income

has been increased by 2.80 %. The total Expenditure has been increased by 2.27 %. The Net

profit has been increased by 12.18 %.

96

Chart 2.8.5.1

Financial statement 2009-10

97

2.9 TREND ANALYSIS

2.9.1 Financial Statement Trend Percentages Base Year (2005 - 2006)

Table 2.9.1.1

Particulars 2009 - 2010

2008 - 2009

2007 - 2008

2006 - 2007

2005 -2006

Sales 136 128 126 127 100

Total Income 135 131 125 131 100

Total Expenditure 128 125 123 125 100

Net Profit 893 796 379 772 100

INTERPRETATION Trend Percentages of financial statement as base year 2005 - 2006. Sales have been

increased during the period 2009 -2010 making Sales 136. Both the Total income and Total

Expenditure have been raised during the year 2009 - 2010 making Total income 135 and Total

Expenditure 128. Net Profit has been increased during the period 2009 - 2010. Therefore the

Financial Statement shows an increasing trend.

98

Chart 2.9.1.1

Trend Analysis: Financial statement trend percentages base year 2005-06

99

2.9.2 Balance Sheet Trend Percentages Base Year (2005 - 2006) Table 2.9.2.1

Particulars 2009 - 2010

2008 -2009

2007 - 2008

2006 - 2007

2005 - 2006

Share Capital 128.38 128.38 108.11 108.11 100

Reserves & Surplus 150.83 132.18 133.56 125.33 100

Secured Loans 108.73 112.99 131.99 163.12 100

Unsecured Loans 50.56 52.30 65.91 63.66 100

Fixed Assets 98.12 87.14 89.68 94.10 100

Investments 100.86 98.69 98.76 98.91 100

Inventories 171.18 164.19 136.04 156.74 100

Sundry Debtors 133.99 120.05 135.84 132.01 100

Cash & Bank Balance 70.48 52.93 35.52 30.88 100

Deposits, Loans & Advances

210.56 253.18 193.13 326.69 100

Miscellaneous Expenses 249.50 158.25 165.07 186.41 100

Current Liability & Provisions

159.05 132.48 112.41 130.44 100

INTERPRETATION Trend Percentages of Balance Sheet as base year 2005 - 2006. Fixed assets and Current

liabilities have been increased during the period 2009 -2010 making fixed assets 98.12 and

current assets as 687.07. Current liabilities have been increased as 159.05 during the period 2009

-2010. Therefore the balance sheet shows an increasing trend.

100

Chart 2.9.2.1 Balance Sheet Trend Percentages Base Year 2005-06

101

CHAPTER III

FINDINGS, SUGGESTIONS AND CONCLUSION

3.1 FINDINGS

1. Gross Profit Ratio shows an increasing trend from 2005 – 2006, though there was

slight decrease during the period 2007 - 2008. There is a significant change in

cost of material consumed. The companies highest gross profit ratio was during

the period 2006 - 2007.

2. Net Profit Ratio has a slow growth and decline during the period of study. It

indicates insignificant improvement in conditions of the business.

3. Operating Ratio is the test of operational efficiency. The efficiency has risen

slightly during the period of study.

4. The Return on Capital Employed ratio shows increasing trend in all financial

years during the period of study. Highest of 21.83% was during the period 2009 -

2010.

5. Return on Equity Ratio shows an increasing trend though there is a slight decrease

during the year 2007 - 2008. Highest during the period 2006 - 2007 (27.04%).

6. Earnings per Share Ratio in 2006 - 2007 and 2009 - 2010 is 0.76 and 0.74

respectively, these were the highest.

7. Debtors Turnover Ratio shows slight variations between the periods. It varies

from 4.41 to 5.74. Higher the ratio it signifies that the debt are being collected

more promptly. This ratio indicates that the debts are being collected more

promptly in the company.

8. Debt collection period indicates the quality of debtors since it measures the

fastness with which money is collected from them. As it is between 2 to 3 months,

it indicates the debt collection efficiency is satisfactory in the business. In general

the amount of receivables should not exceed 3 – 4 months of credit sale.

9. Fixed asset turnover ratio shows an increasing trend in all the financial years

except during 2009 - 2010. The ideal ratio is 0.67. During the period of study it

doesn’t fall below 3.

102

10. Total asset turnover ratio shows an increasing trend in all the financial years

during the period of study. It shows that the assets are well utilized.

11. Inventory turnover ratio indicates the utilization of inventory in an efficient

manner. It is therefore clear that the sales are quick and stock does not consist of

non-salable items. It was higher in 2005 - 2006, indicates speedier movement of

stock. It has decreased from 4.12 to 3.44 with a difference of 0.68 times.

12. Stock velocity shows the duration of the stock at the company. The company

takes 87.38 days to 104.65 days to clear the stocks.

13. The current ratio was favorable during 2006 – 2009

14. the quick ratio was above the satisfactory level as it shows a favorable trend

15. Debt equity ratio shows that the company is depending outsiders more during the

year 2006 - 2007.

16. Sales have been raised from 100% to 136%.

17. Net profit has been raised from 100% to 893%.

18. During the period of study the total income was always more than the total

expenditure which is good for the company.

19. Share capital has been raising in all financial years from 100% to 128.38%.

20. Reserves and surplus has been raising from 100% to 150.83%.

21. Sundry debtors has been raising from 100% to 133.99%.

22. Investment shows a decreasing trend from 100% to 98.12%.

103

3.2 SUGGESTIONS

1. The management may take proper decisions to maintain their absolute liquid ratio,

so that they can maintain their liquidity position in the long run.

2. The liquidity position could be strengthened by reducing the current liabilities.

3. The management may try to increase the EPS by increasing the profitability of the

company.

4. The cash balance level of the company when compared to current liabilities is

minimum and the management may improve the cash balance to an optimum

level to meet the contingencies.

5. The company may tighten the credit policy to the customers to reduce the debt

collection period.

104

3.3 CONCLUSION

On studying the financial performance (through ratio analysis) of Intelligence Credit

Management for a period of five years from 2005 - 2006 to 2009 - 2010, the study reveals that

the financial performance in general is satisfactory. It could be concluded that the company

“Intelligence Credit Management” has been performing well.

105

CHAPTER 4

4.1 SCOPE OF FUTURE WORK:

A financial statement is physical documentation of a business's finances. This statement is

sent out to shareholders and potential shareholders if the company is publicly traded in order to

inform them of the business's financial health.

It consists of four parts: The balance sheet report, income statement, statement of cash

flow and statement of shareholders' equity. In addition to this, the financial performance review

at the regular intervals of time is also considered as a vital part for the organizational sustainable

development.

Hence, this project paves the way for all the future research work and it becomes an

essential part for those researchers to fulfill their research work with accurate and expected

results.

The consolidations of all the financial performance will both the shows the financial

results of the parent company and its subsidiaries as if the group were a single company with

multiple branches.

By following the correct sequence for recording transactions and preparing financial

statements, financial managers ensure the reports are accurate and in line with regulatory

guidelines.

106

Appendices 1

Balance Sheet (Amount in Rupees)

Particulars As on 31.03.2006

As on 31.03.2007

As on 31.03.2008

As on 31.03.2009

As on 31.03.2010

Sources of Funds

Share holders Fund

Share Capital 37,000,000 40,000,000 40,000,000 47,500,000 47,500,000 Reserves & Surplus 57,464,264 72,019,306 76,748,359 75,958,085 86,670,505

Deferred Tax(net) 15,485,270 19,095,427

Loan Funds Secured Loans 113,771,350 185,582,274 150,171,725 128,552,520 123,702,659 Unsecured Loans 43,633,000 27,778,280 28,758,180 22,821,977 22,060,319 Total 251,868,614 325,379,860 295,678,264 290,317,852 299,028,910 Application of Funds

Fixed Assets 147,770,694 139,052,943 132,523,352 128,771,175 144,989,602 Investments 692,786 685,222 684,222 683,722 698,722 Current Assets, Loans & Advances

Inventories 60,613,986 95,009,299 82,460,428 99,520,742 103,759,105 Sundry Debtors 93,213,080 123,053,398 126,619,031 111,904,860 124,894,006 Cash & Bank Balances 18,554,203 5,729,942 6,589,816 9,821,111 13,077,458

Deposits, Loans& Advances 23,502,635 76,779,594 45,390,795 59,503,988 49,486,977

Total 195,883,904 300,572,233 261,060,070 280,750,701 291,217,546 Less: Current Liabilities & Provisions

Current Liabilities 99,963,143 128,369,169 108,751,813 114,898,809 135,465,900

Provisions 2,697,779 5,541,719 6,644,999 21,101,924 27,815,415 Net Current Assets 93,222,982 166,661,345 145,663,258 144,749,968 127,936,231

Miscellaneous Expenditure 10,182,152 18,980,350 16,807,432 16,112,987 25,404,355

Total 251,868,614 325,379,860 295,678,264 290,317,852 299,028,910

107

Appendices 2

Income Statement (Amount in Rupees)

Particulars As on 31.03.2006

As on 31.03.2007

As on 31.03.2008

As on 31.03.2009

As on 31.03.2010

Income Sales 443655702 562156209 558979157 568970924 604922063 Other Income 2677899 2194910 1766026 2888479 3095246

Increase/ Decrease in Stock of Finished Goods & Stock in Trade

-1342571 16624415 -2422729 11962376 -7837636

Total Income 444991030 580975534 558322454 583821779 600179673 Expenditure Raw Materials Consumed 240246671 305918359 305609655 353912960 362439330

Stores & Consumables 2143176 2999915 2877773 4301998 3898992

Power & Fuel 5338101 6906040 5770990 6268736 6044134 Trading Goods Consumed 9638063 739213 172412 95905 5605012

Employee Cost 36977451 43176685 46667402 51392395 55357601 Excise Duty 76055525 70179471 5055469 Administrative Expenses 63683585 15004348 14507346 17310767 20867497

Interest, Finance & Bank Charges 25764462 26291527 25245113 23681777 12629477

Selling & Distribution Expenses

36481781 53317699 51493793 66314412 72959579

Other Expenses 5254581 2763446 4977782 9304847 9133027 Repair & Maintenance 3939064 4987867 3976867 4214800 4325955

Depreciation 11599965 12521481 11971503 10737940 11886964 Total Expenditure 441066900 550682105 543450107 552592006 565147568 Net Profit for the Year 3924130 30293429 14872347 31229773 35032105

Total 444991030 580975534 558322454 583821779 600179673

108

REFERENCES

1. Dr. S.N. Maheswari (2000) Principles of Management Accounting. Published by Sultan Chand & Sons, New Delhi.

2. I.M Pandey (1995) Financial Management. Published by Vikas Publishing House

Pvt. Ltd., New Delhi.

3. Khan & Jain (2001) Theory and problems of Financial Management. Published

by Tata McGraw-Hill Publishing Company Ltd., New Delhi. 4. Wixom R, Kelly W.G, Bed Ford N.M (1970) Accounts Hand Book.

5. Prasanna Chandra (1999) Fundamentals of Financial Management. Published

by Tata McGraw-Hill Publishing Company Ltd., New Delhi.

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