project on kms

KMS COUCH BUILDERS

TITLE:

“FINANCIAL STATEMENT ANALYSIS”.

AREA OF TOPIC CHOSEN

FINANCE

In our present day economy, finance is defined as the provision of money at the time when it is required.

Every enterprise, whether big, medium of small, needs finance to carry on its operations and to achieve

its targets. Finance is a source of every organization. Finance refers to the management of flows of money

through an organization. It concerns with the application of skills in the manipulation, use and control of

money.

MEANING OF BUSINESS FINANCE

Literally speaking, the term ‘Business Finance’ connotes finance of business activities. It is composed of

two words i) Business, ii) Finance Thus, it is essential to understand the managing of the two words,

business & finance which is the starting point to develop the whole concept & meaning of the term

business finance.

The word ‘Business’ literally means a ‘state of being busy’. All creative human activities relating to the

production and distribution of goods & services for satisfying human wants are known as business. It also

includes all those activities which indirectly help in production and exchange of goods, such as, transport,

insurance, banking and warehousing, etc. Broadly speaking, the term ‘business’ includes industry, trade

and commerce.

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INTRODUCTION:

Financial analysis refers to an assessment of the viability, stability and profitability of a business,

sub-business or project.

Study and analysis of balance sheet is done for past 2 consecutive years. The current study is

undertaken for the purpose of knowing the financial performance of the company. The study focuses

attention mainly on the level of financial performance.

Financial performance is done by analyzing financial statements. Financial statements are

prepared primarily for decision making. They play a dominant role in setting the framework of

managerial decisions. Finance both in theory and practice as experienced strong development over recent

decades. Large firms in India and elsewhere in a world have been respective to the advancement made in

modern financial theory and the increasing globalization of markets , theories in finance have develop

rapidly do greatly to the assumption of perfect capital market.

Finance management brings together the notion of perfect market theory and the word of market

in perfection and adapts continuously to the present contingencies. A purpose of finance management is

to provide manager with a valuable decision making frame work one that take agency, control and

governance issues into account in the decision making process.

Financial statements are prepared primarily for decision making. They play a dominant role in

setting the frame work of managerial decisions. The finance manager has to adhere to the five R’s with

regard to money. This right quantity of money for liquidity consideration of right quality. Whether owned

or borrowed funds. At the right time to preserve solvency from the right sources and at the right cost of

capital.

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MEANING AND CONCEPTS OF FINANCIAL ANALYSIS;

The term financial analysis, also known as analysis and interpretation of financial statements,

refers to the process of determining financial strengths and weakness of the firm by establishing strategic

relationship between the items of the balance sheet, profit and loss account and other operative data.

In the words of Myers, “Financial statement analysis is largely a study of relationship among

the various financial factors in a business as disclosed by a single set of statements, and a study of the

trend of these factors as shown in a series of statements.”

Limitations of the study are time constraint and dependence on secondary data. The suggestions

given were, to make use of assets and sources optimal and better liquidity position.

This study mainly focus on the above:

The financial position of the company.

The growth over the year.

The company performance.

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REVIEW OF LITERATURE

1. PERFORMANCE EVALUATION AND RATIO ANALYSIS OF PHARMACEUTICAL

COMPANY IN MALAYSIA

Author: Hossan Faruk; Ahsan Habib; [2010]

Keywords: Financial analysis; ratio analysis; Beximco company financial analysis; square company

financial analysis;

Abstract:

The thesis applies performance evaluation of pharmaceutical company in Malaysia. It means evaluate

how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical

(Beximco and Square pharmaceutical) companies in Malaysia. The main data collection from the annual

financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial

ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios,

debt management ratios and finally measure the best performance between two companies. The

mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is

most important factors for performance evaluation. The graphical analysis and comparisons are applies

between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is

conveying the ability to repay short-term creditors and it total cash. It determines perform of short term

creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio

and cash ratio. Asset management ratio is measurement how to effectively a company to use and controls

its assets. Its also quantify into seven categories for both pharmaceutical companies such as account

receivable turnover, average collection period, inventory turnover, account payable turnover ,account

payable turnover in days ,fixed asset turnover ,total asset turnover. Profitability ratio is evaluate how well

a company is performing by analyzing and how profit was earned relative to sales, total assets and net

worth for both pharmaceutical companies. Debt coverage ratio is performing that the property insufficient

to collect their mortgage for both companies and market value is perform the stockholder to analysis their

future market value of the stock market. Overall analyses are measurement the best one between Beximco

and Square pharmaceutical companies.

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http://www.essays.se/about/square+company+financial+analysis/

http://www.essays.se/about/square+company+financial+analysis/

http://www.essays.se/about/Beximco+company+financial+analysis/

http://www.essays.se/about/ratio+analysis/

http://www.essays.se/about/Financial+analysis/

http://www.essays.se/about/Ahsan+Habib/

http://www.essays.se/about/Hossan+Faruk/

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2. FINANCIAL PERFORMANCE IN HONG KONG LISTED HOTELS: THE EFFECT OF

VALUE-ADDED CREATION AND COST-LEADERSHIP SEEKING

Author: Lin Zhang Wai Fong Chow [2010]

Keywords: value creation cost leadership; competitive strategies; financial performance and statement

analysis;

Abstract:

We structure a literature review which we provide with broader definitions of the majorconcepts: value

creation, cost efficiency (leadership), competitive strategies, financialperformance and statement analysis.

The literature review focuses mainly on Hong Kongcontext and literatures supporting the similar business

strategies among similar size ofcompanies from various industries.The study takes forms as a quantitative

study with a deductive approach. A set offinancial performance data will be collected and examined, to

show how companyperformance is correlated to its strategies and what an outcome is. We aim at

providinganother perspective of investment analysis approach to the potential investors, so theycould

embrace the whole picture of available information.We develop two groups of hypothesis; the first group

is company's strategy measures thatshow no effect on financial performance, the second group is

company's strategymeasures that show some effect on financial performance.The result indicates while

normally staff cost and cost of sale are recognized as costleadership measure under product industry, it

implies positive contribution to valuecreation financial performance in service industry, instead of having

influence onprofitability. Also, the wealth generated from previous sale revenue margin will havepositive

impact on company's competiveness in the hotel industry.Keywords: value creation cost leadership,

competitive strategies, financial performanceand statement analysis

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3. THE FINANCIAL PERFORMANCE OF ETHICAL FUNDS : A COMPARATIVE ANALYSIS

OF THE RISK-ADJUSTED PERFORMANCE OF ETHICAL AND NON-ETHICAL MUTUAL

FUNDS IN UK

Author: Shalom [2009]

Keywords: Socially responsible investments; ethical funds; corporate social responsibility; risk-adjusted

performance; management fee;

Abstract:

The review of the ethical funds literature shows the significant growth of the Socially Responsible

Investments (SRI) in the last few decades. The increase of the interest towards SRI indicates that ethical

issues have become more essential for the investors. However the number of surveys reveals that

financial performance remains of an important concern for the socially responsible investors. Therefore

the benchmark analysis of the expected returns and management fees of the ethical mutual funds is

chosen as a topic for this thesis research. The risk-adjusted measures are used to analyze and compare the

performance of the ethical and non-ethical mutual funds in United Kingdom. The analysis does not

indicate the significant difference in the expected returns between the two groups of funds. However this

study concludes that on average ethical funds charge higher management fees. Thus investing in ethical

funds is more costly but gives about the same returns as investing in conventional funds.

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4. PERSISTENCY & TRENDS : STOCK PRICE IMPACT OF INTERIM REPORTS

Author: Fredrik ; Vladimir

Keywords: Financial statement analysis; Market behaviour; Interim reports; Fourth quarter reports;

Persistent trends; Trend analysis; Stockholm stock exchange; Analysts; Expectations.;

Abstract:

Problem: Interim and annual reports are some of the most crucial sources of information regarding

companies’ performances. Interested parties such as analysts and investors assess this information and

compare it with expectations. Analysts’ expectations of companies’ interim reports are of great

importance when analysing the future development of share movement. Possible deviations between

analysts’ expectations and actual presented results from the individual companies might change the

perceptions of specific future stock prices. Furthermore business sectors have different characteristics and

might respond differently to unexpected earnings news. Over- and underperformance of the presented

results in relation to analysts’ expectations could create specific stock price movements over a

forthcoming period depending on the nature of the report. The authors label this phenomenon as

persistent trends.

Results: The authors presented empirically founded evidence for the existence of persistent trends

following the presentation of both positive and negative reports. The authors also rejected the presence of

a uniform response to deviating earnings information in the business sectors.

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5. A VALUE RELEVANT FUNDAMENTAL INVESTMENT STRATEGY : THE USE OF

WEIGHTED FUNDAMENTAL SIGNALS TO IMPROVE PREDICTABILITY

Author: Eliasson; Malik; Benjamin Österlund;

Keywords: Fundamental analysis; Financial statement analysis; Financial analysis;

Abstract:

The aim of this study is to investigate the possibility to improve the investment model defined in

Piotroski (2000) and the subsequent research carried out on this model. Our model builds further upon the

original fundamental score put forth by Piotroski. This further developed model is tested in two different

contexts; firstly, a weighted fundamental score is developed that is updated every year in order to control

for any changes in the predictive ability of fundamental signals over time. Secondly, the behavior of this

score is analyzed in context of recession and growth cycles of the macro economy. Our findings show

that high book-to-market portfolio consist of poor performing firms, as shown by Fama and French

(1995) and is thereby outperformed by both Piotroski's F_score and our own developed scores. The score

based on a rolling window correlation is performing a little better then F_score, but the score based on

correlations for prior Up and Down periods is not. The conclusions we draw from the results are that

improvements have to be made, both to F_score and our own developments, to sort winners from loser to

get an even more profitable zero-investment hedge strategy.

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STATEMENT OF THE PROBLEM:

The project is titled ANALYSIS OF FINANCIAL STATEMENTS AT KMS COACH

BUILDERS LTD a company that had shown a growth with steady pace of increased profits and turnover

in recent years. The study is conducted to evaluate the performance and market standing of the KMS in

order to give a better scope to the investors, shareholders, creditors and the management themselves about

the rating of the KMS and its performance in the market.

SCOPE OF THE STUDY

The study covers comparative income statement and balance sheet it primarily depends on the

accuracy of balance sheet and data found in annual report.

OBJECTIVES OF THE STUDY

1. To study the liquidity position of the company

2. To study the operational performance of the company

3. To know the solvency position of the company.

4. To study the profitability position of the company.

RESEARCH METHODOLOGY

The study is mainly based on data provided in the annual report of the company for the year 2009-10

to 2010-11.Secondary data was used to obtain the required information.

Secondary data has been collected from secondary sources like company records, company reports,

and published studies. Significant tools popular with my studies are company websites, annual reports

and other books and magazines.

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DATA COLLECTING METHODOLOGY

Primary data:

Primary data are those, which are collected by Means of interacting with the Management,

branch managers, Officials and staff of the organization and this happens to be Original in character.

Secondary data:

Secondary data are also the sources of information, which have already been collected and

proposed. It includes data available in the textbooks, annual reports, internet and websites of the

company.

LIMITATIONS:

1. The information provided in the financial statement is compiled on the financial basis of historical costs.

2. The accuracy of analysis depends on data collected from financial statements.

3. The findings and analysis of the reports is prepared from the information available in the annual reports

and book of accounts.

4. Despite of the limitations, maximum care was exercised to make the study scientific & meaningful.

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INDUSTRY PROFILE

BUS HISTROY

Any of a class of large, self-propelled, wheeled vehicles designed to carry passengers, generally

on a fixed route can be termed a bus. Developed at the beginning of the 20th century, to provide greater

route flexibility, it was the natural outgrowth of the horse-driven coach. In the present moment, buses are

defined as vehicles that accommodate more than 10 passengers.

DEVEPLOMENT

In 1830, Sir Gold worthy Gurney of Great Britain designed a large stagecoach driven by a steam

engine that may have been the first motor-driven bus. It was Germany's turn next to design an eight-

passenger omnibus, driven by a four-horsepower single-cylinder engine in 1895. Sightseeing companies

were the first to introduce buses in the United States. One type of these open vehicles built by Mack

Inc., in 1904 had a nominal seating capacity of 15 with a four-cylinder gasoline engine developing 36

horsepower at street speeds of up to 20 miles per hour (32 kilometers per hour).

Technically, the early bus resembled the motor truck. Until the 1920s the bus consisted of a bus

body mounted on a truck chassis. 1921 saw the development of a chassis specifically meant for a bus.

This was manufactured in the United States and was made by the Fageol Safety Coach Company of

Oakland, Calif. This new frame was one foot lower than a truck frame. In 1926 Fageol developed the first

integral-frame bus, with twin engines mounted amidships under the floor. The integral frame utilized the

roof, floor, and sides of the bus as structural members. Mack and Yellow Truck & Coach of the United

States were among the other early bus manufacturers in the United States, both of which built gasoline-

electric models. In these buses a gasoline engine drove a direct-current generator, and the output of the

generator provided electrical power for the driving motors on the rear wheels.

This electrical system performed the functions of a transmission by multiplying driving torque

and providing a means of connecting and disconnecting the engine from the drive wheels.

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Transcontinental bus service was introduced in the United States in 1928. The first rear engine in an

integral-frame bus was introduced in 1931. Two-stroke-cycle diesel engines were first used in buses in

1938 and were found in most city and intercity models for the next 40 years.

Introduced in 1953, air suspensions continue to be employed on integral-frame bus models.

They consist of multiple heavy rubber bellows, air springs, mounted at each axle. The air springs are

supplied with air from a reservoir in which pressure at about 100 pounds per square inch (690

kilopascals) is maintained. An advantage gained from this type of suspension is that as the load increases

or decreases, the level and height of the vehicle remain constant.

A bus (archaically also omnibus, multibus, or autobus) is a road vehicle designed to carry

passengers. A bus can generally seat a maximum of anywhere from 8 to 300 passengers. Buses are the

most widely used form of public transportation, although they are also used in tourism and as private

transport.

The most common type of bus is the single-decker bus, with larger loads carried by double-

decker buses and articulated buses, and smaller loads carried by minibuses and minibuses. A more

luxurious version of the bus is the coach. Buses are usually powered by a diesel engine, although early

buses were horse drawn and there were experiments with steam propulsion. Trolleybuses use power

drawn from overhead power lines. In common with the car industry bus manufacturing is increasingly a

globalized activity, with the same design of bus appearing on roads around the world.

CLASSFICATION OF BUSES

Single Decker

The most common design of bus is a rigid single-decker bus with two axles, or if needed, a

second rear axle. The mini buses is a lighter and smaller purpose built development of the single deck

bus, which emerged in the 1990s. The minibus, originally developed from van conversions, fulfills the

lowest capacity needs of buses. Minibuses today are both still derived from vans, or built specifically as

minibuses.

Double Decker’s

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Where more capacity is needed, a double-decker bus or articulated bus may be used, the

prevalence of which varies from country to country. A double-decker is a rigid vehicle with an extra

upper deck; the two conjoined for access by a staircase— usually in modern vehicles a spiral staircase

near the front, but often at the rear on older vehicles, which may have an open platform. Larger double

Decker might have both front and rear staircases.

Articulated buses

Articulated buses take the form of single-decker bus with a 'trailer' portion attached. In articulated

buses, drive can be through the front or rear section's axles. In modern articulated buses one can walk

between the front and rear sections through an "accordion joint". In the UK and Australia they are often

called bendy buses.

Low-floor buses

For many new fleets, particularly in local transit systems, there is an increasing shift to low-floor

buses (primarily for easier accessibility).High-floor buses, whose design allows for luggage

compartments underneath the passenger seating area, are used for longer-distance intercity travel (see

Coaches). The move to the low-floor design has all but eliminated the mid-engine design, although some

coaches still have mid mounted engines.

Bi-articulated

An uncommon departure from the standard rigid or articulated buses, there also exist limited

instances of bi-articulated buses, and passenger-carrying trailers— either towed behind a conventional

bus (a bus trailer), or hauled as a trailer by a truck (a trailer bus).

Open top

A bus may be "open top", that is to say, it has little or no roof. The aim is for passengers to get a

better feel for of the outdoors, and a better view. Typically they are used as tourist buses on short city

tours. The coach building is generally done when the vehicle is first made, but sometimes an open top bus

is converted from a double-decker that has scraped or lost its roof on a low bridge or other impediment,

since its chassis will generally be intact.

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Coaches

A coach or motor coach describes a more luxurious version of a bus, designed for more

comfortable or longer-distance travel. In the UK, an old-fashioned word for it is a char banc. Coaches can

come in the same general configurations as buses, as single- or double-deckers, articulated, or small

'mini-coaches'. Coaches have a higher floor level than buses, to let luggage be stored in compartments

under the passenger floor..

Coaches do not generally allow for standing passengers, and feature upholstered, high-backed,

individual seats. Coaches often have passenger comforts such as reclining seats, hand luggage storage,

toilets, and audio-visual entertainment systems. As a low-cost version of a coach, buses may be fitted

with coach-style, higher-backed, more comfortable seats, termed 'dual-purposed' bodywork. These may

be used on long-distance public transport services, or as low-cost charter coaches. Increasingly in some

areas individual upholstered coach-style seating, either fully high-backed or standard bus-seat height, is

being deployed on higher-specification transit buses, sometimes with leather upholstery.

Trolleybuses

A trolleybus is essentially an electrically powered bus that is attached to and draws power from

overhead lines. The trolleybus can be seen as a branch of, and a parallel development to, the conventional

bus, and is exclusively used for public transport (apart from some systems recreated in transport

museums). Trolleybuses appeared at nearly the same time as combustion engine powered buses, with a

system in Dresden, Germany, in 5 May 1901. As with conventional buses, double-deck and articulated

versions of the trolleybus have been developed.

NOTABLE FEATURES OF BUSES

Accessibility

Increasingly in some countries, buses and coaches are designed with accessibility features, often

in response to regulations and recommendations laid out in disability discrimination laws. While such

access laws apply to public transport, accessible features are also often adopted by private operators as a

customer service Differentiator or due to the accessible designs becoming the market standard for new

buses and coaches.

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Historically, accessible buses were specially modified standard buses, as mobility buses,

produced by post manufacture, or niche manufacturers. Later, many standard bus types have become

accessible, although mobility buses are still in production, usually as minibus-size vehicles. Mobility

buses can be modified with a side or rear wheelchair lift, additional doors, wider doors, or an extendible

access ramp. For standard buses, a major part of accessibility is achieved by the low-floor bus design,

although for coaches, accessibility is being achieved through wheelchair lifts due to their higher floor

level. Easier access for wheelchairs, pushchairs and the elderly can also be achieved through the use of

kneeling air suspension and electrically or hydraulically extended under-floor ramps. Other accessibility

features include wide entrances and interior gangways for wheelchairs and baby carriages; brightly

colored interior fittings; and clear destination displays to aid the visually impaired.

Public transport

Public transport forms the major use of buses and coaches, designed for the transport of the

general public as a public service, rather than the private hire or use of buses for transport or other

purposes. The use and design of public transport buses varies around the world, and utilizes the entire

range of bus designs and capacities. The design of buses and coaches is often specialized to a particular

type of service. Buses may operate fixed routes, or be used as flexible services. Public buses can be

organized in large fleets or as small concerns, and be publicly or privately owned and operated.

The transit bus is the predominant design of public bus, which features specific features to allow

use as a public transport vehicle. Transit buses have utilitarian fittings designed for efficient movement of

large numbers of people, and often have multiple doors. A dual purpose bus is a transit bus fitted with

coach style higher backed more comfortable seats, used on longer distance routes where standing

passengers are not likely to be present. Specially adapted mobility buses may be used on specialist

services for the transport of passengers with mobility issues.

High capacity bus rapid transit (BRT) services may use the bi-articulated bus, an extension of the

articulated bus concept with two trailer sections. BRT schemes (and other uses) may also use tram style

buses, which certain bus manufacturers have tried to emulate the tram with modified articulated bus

designs, with features such as a ‘pilot’ style driving position and streamlined styling, for example the

Wright Streetcar and the Iris bus Civis. Guided buses are fitted with technology to allow them to run in

designated guide ways, allowing the controlled alignment at bus stops and less space taken up by guided

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lanes than conventional roads or bus lanes. Guidance can be mechanical, optical or electromagnetic.

Guidance is often, but not exclusively, employed as part of a BRT scheme. Extensions of the guided

technology include the Guided Light Transit and Transport systems, although these are more often termed

'rubber tyred trams' as they have limited or no mobility away from their guide ways.

Schools

In some countries, particularly the U.S., buses used to transport school children have evolved in

to a specific design with specified mandatory features. These buses feature things such as the school bus

yellow livery and crossing guards. Other countries may mandate the use of seat belts. As a minimum

many countries require that a school bus displays a sign, and may also adopt yellow liveries. School buses

are also often older buses cascaded from service use, retro-fitted as a school bus, with more seats and/or

seatbelts. School buses may be operated by local authorities or private contractors. Schools may also own

and operate their own buses for other transport needs, such as class field trips, or to transport associated

sports, music or other school groups.

Private charter

Due to the costs involved in owning, operating and driving buses and coaches, many bus and

coach uses come about from the private hire of vehicles from charter bus companies, either for a day or

two, on a longer contract basis, where the charter company provides the vehicles and qualified drivers.

Charter bus operators may be completely independent businesses, or charter hire may be a subsidiary

business of a public transport operator who might maintain a separate fleet or use surplus buses, coaches,

and dual purpose coach seated buses. Many private taxicab companies also operate larger minibus

vehicles to cater for group fares. Companies, private groups and social clubs may hire buses or coaches as

a cost effective method of transporting a group to an event or site, such as a group meeting, racing event,

or organized recreational activity such as a summer camp.

Entertainment or event companies may also hire temporary shuttles buses for transport at events

such as festivals or conferences. Party buses are used by companies in a similar manner to limousine hire,

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for luxury private transport to social events or as a touring experience. Sleeper buses are used by bands or

other organizations that tour between entertainment venues and require mobile rest and recreation

facilities. Some couples hire preserved buses for their wedding transport instead of the traditional car.

Buses are often hired for parades or processions. Victory parades are often held for triumphant sports

teams, who often tour their home town or city in an open-top bus. Sports teams may also contract out

their transport to a team bus, for travel to away games, to a competition or to a final event.

These buses are often specially decorated in a livery matching the team colors. Private companies often

contract out private shuttle bus services, for transport of their customers or patrons, such as hotels,

amusement parks, university campuses or private airport transfer services. This shuttle usage can be as

transport between locations, or to and from parking lots. High specification luxury coaches are often

chartered by companies for executive or VIP transport. Charter buses may also be used in Tourism and

for promotion (See Tourism and Promotion sections).

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Company ProfileBus is the most common mode of transport used by public for both Inter City as well as for Intra City

operations. Untill recent days people considered it a luxury if the bus comes at its stipulated time. The

commuter had no option, but to travel in whatever mode of transport available. But the position has

gradually changed during the last 5 years. More number of buses are being inducted into the system.

Today the passenger has options in most of the prominent cities and routes. Accordingly the passenger is

attaching more importance to comfort and aesthetics. Hence there is demand for comfortable aesthetically

built attractive buses.

As regards to urban areas, pollution levels in major cities are crossing the limits due to traffic pollution.

The cities are also getting congested due to high concentration of vehicles. Hence the Governments are

motivating the public to use public transport by offering them comfortable, safe and good looking buses.

We, at KMS Coach Builders are devoted to make this happen.

Pathway of KMS:

KMS Coach Builders,based in Bangalore was established during November 2006 with its works situated

at # 125 /1 B – Industrial Area, Kengeri on Bangalore – Mysore Highway. Initially, it was started as a

“Proprietorship” concern. In order to support the growing activities, the proprietorship concern was

converted into a Private Limited Company during June 2007. This led to the emergence of KMS Coach

Builders Pvt. Ltd. We are one of the leading companies engaged in bus body manufacturing and

supplying to various government and private organizations across the country. Our contemporary designs,

quality products, market leading prices and prompt timely deliveries have made a big impact on the bus

body building industries situated in Bangalore. Since its emergence in this business domain, KMS has

been successfully fulfilling the growing demands of several leading Transport Corporations of the India.

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KMS is dedicated to manufacture bus bodies of latest in design and robust in construction. With the

complete knowledge of current market trends backed by sincere efforts of our dedicated workforce, we

have constructed buses for some of the most reputed State Transport Corporations in India. KMS is also

constructing buses for several prominent schools & colleges situated in and around Bangalore. Some of

the worth mentioning customers we are serving are listed as below:

Bangalore Metropolitan Transport Corporation.

Karnataka State Transport Corporation, Bangalore.

North Eastern Transport Corporation, Gulbarga.

Metropolitan Transport Corporation Ltd., Chennai

The Tamil Nadu Transport Corporation (Salem) Ltd. Salem.

Andhra Pradesh State Transport Corporation, Hyderabad.

Apart, from above listed State Transport Corporations, we are also constructing buses for the two leading

O.E. Manufacturers of India viz.,

Ashok Leyland Ltd.,

TATA Motors Ltd.,

KMS initially started with a monthly production capacity of 15 –20 buses. With the growing list of

customers, first phase of expansion was completed during June 2007. Since this expansion was also not

sufficient to meet the demand, the second phase of expansion was completed during Dec 2007.

With further increase in the customer base, the present infrastructure is also falling short of requirement.

Hence, third phase of expansion is under process and with this KMS is expecting to increase the

production capacity to 100 buses a month. Within three years of inception, KMS has commissioned three

phases of expansion.

Following are the facilities available at KMS to construct the bus bodies matching with international

standards:

Modern Painting Booth with baking facility.

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10 Tank process zinc plating & Hot Phosphating plant.

Machine shop comprising of Heavy duty shearing machine and press brake to fabricate components.

Water Shower Plant for Roof Leakage test.

CO2, Mig- Mag welding equipments.

Diesel Generators for uninterrupted power supply.

Hydraulically operated Panel Stretching Equipment.

Centralised Screw Compressor for operation of pneumatic tools.

Our Team:

KMS possesses a team of experienced, qualified, and innovative engineers, technicians and other

professionals who are experts in their respective areas. Our workforce makes all out efforts to ensure the

delivery of the buses as per the delivery commitments. Highly skilled workforce aided by competent

Engineers is dedicated to qualitative production to ensure complete satisfaction of our cherished

customers.

Exclusive Assortment of Buses:

KMS has constructed the following types of buses for its esteemed clients:

“Meghadoota” Airconditioned Luxury Class Buses.

Rajahamsa “Luxury Class” Non A/c. buses.

Moffussil type buses for STU’s with tubular structure.

City type double door buses with 2 x 2 seats

“SUVARNA” improvised city type buses (Volvo city type) with passenger friendly features.

Suburban type double door buses with 3 x 2 seats.

Staff & School Buses for educational institutions.

Semi Low Floor Buses for city operations.

“Quality” our Endeavour:

We are the team of professionals who give utmost importance to quality. At KMS, quality is a way of life

and not merely a word. The company, right from its inception has been focusing to develop new methods

of manufacturing and designing bus bodies to satisfy customer’s demands.

To ensure a quality product, it is very essential to ensure the quality of input materials. Hence we use top

quality raw materials for manufacturing our products and comply with all the quality norms in the

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manufacturing processes. Our qualified and experienced Engineers strictly monitor each step right from

procurement of raw materials to the delivery of final product. We strive to achieve 100% satisfaction of

our valued customers. We are an ISO 9001/2008 certified company which stands to certify our

commitments to quality.

Innovation:

Innovation and research are our driving forces. Our company is entirely dedicated to manufacture bus

bodies which offer comfort and security to passengers. In order to accomplish this goal of providing

buses for better travelling, our designers at KMS have developed a new version and a PROTO which is

already offered to well known Ashok Leyland. This model was later supplied to BMTC by Ashok

Leyland. BMTC has approved this model and named these buses as “SUVARNA”. These buses are

being operated to Bangalore International Airport from different parts of city.

BMTC has inducted over 300 buses of this type to its fleet within a short span of 6 months. Adding to

this, BMTC has inducted a new series of BIG – 10 buses which is also a feather from the cap of

KMS.We are the first bus body builder in Bangalore to construct “Semi Low Floor” buses as per the

specification of JN NURM for BMTC & KSRTC. These innovations in bus body designing and ability to

satisfy customers’ demands are our indistinguishable assets.

Business type Manufacturer

Year established 2006

Total employees 101-500 people

Bus body building

KMS is continuously making its mark in bus body building industry. In a short span of two

years, we have served to several transport giants across south India. The company understands

the changes our society is going through and manufactures buses which suit to these modern

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KMS COUCH BUILDERS

times.

We always make sure that passengers should feel comfortable and secure while travelling in

buses without compromising on the quality of buses. We offer buses which are aesthetic,

comfortable, safe and durable. Apart from these qualities, timely delivery & competitive rates

are also guaranteed at KMS.

Management

We, at KMS Coach Builders Pvt. Ltd., have excellent management system for carrying out the

entire fabrication and building process. Our superior team of experts works dedicatedly for

completing their assigned tasks and make sure that the output is delivered within the specified

time-frame.

The complete processes right from obtaining the material and components until the final delivery

of the bus body are performed under the vigil eye of the expert supervisors to ensure superb

quality output. Expertise management of over all functioning of our organization makes us a

leading manufacturer of bus bodies, which are supplied to government as well as private

companies. With prompt and smooth functioning, backed by effective management, we have

gained trust and admiration of our clientele.

Infrastructure

KMS owns an excellent infrastructural facility for carrying out the bus body building process.

Our fabrication facility is well-equipped with contemporary machinery and technology to ensure

quality output is derived out of the entire process. We have our facility well-organized for

carrying out different production stages efficiently.

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We have all the tools and techniques for building bus body, and constantly upgrade our facilities

for remaining abreast with the latest trends and market. Effective management, superior

infrastructure, and skilled personnel aid us in meeting the customers’ requisites effectively and

stay ahead of our competitors. Even, we regularly train our personnel for smooth and effective

production as per the latest techniques and machines.

Production

We carry out our bus body production process effectively and make sure that no possibility of

any flaws remains. The entire production stages are carried out smoothly under expert

supervision to make sure the clients’ requisites are met within the stipulated time-frame. The

production goes flawless which assure superior quality, durability and higher performing

capability of the output bus body.

Also, we are backed by constant supply of quality raw material procured from reliable vendors

along with committed team of employs which makes it easier to complete the production and

deliver the final output within the agreed time-frame. Quality and durability are gien extreme

importance throughout the production process, which has gained us our clientele’s trust and

appreciation for our final output bus bodies.

FINANCIAL ANALYSIS

Financial analysis is the process of identifying the financial strengths and weakness of the firm

and establishing between the items of the balance sheet and profit and loss account

This analysis includes comparative financial statements and ratio analysis.

COMPARATIVE FINANCIAL STATEMENTS

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Comparative financial statements refer to the statements of the financial affairs

Of a business, which are prepared in such a way as to provide time perspective to the various elements

contained in such statements for the purpose of analysis, comparative financial statements use the

following information

Absolute data in money values as given in the financial statements, for current period and the preceding

period.

Increase or decrease in absolute data in money values in the current period.

Increase or decrease in absolute data in terms of percentage.

Comparisons of absolute data expressed in ratio’s where it’s considered necessary.

There are important comparative financial statements:

Comparative income statement

Comparative balance sheet.

RATIO ANALYSIS

Financial ratio analysis is the calculation and comparison of ratios, which are derived from

the information in a company‘s financial statements .the level and historical trends of these ratios can be

used to make inferences about a company’s financial conditions, its operations and attractiveness as a

investments. The information in the statements is used by.

Trade creditors, to identify the firm’s ability to meet their claims i.e. liquidity positions of the company.

Investors, to know about the present and future profitability of the company and its financial structure.

Mangament, in every aspects of the financial analysis. It is the responsibility of the management to

maintain sound financial condition in the company.

The term “RATIO “refers to the numerical and quantitative relationships between two items or variables.

The relationship exposed as.

Percentage

Fractions

Proportion of number

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Ratio analysis is defined as the systematic use of the ratio to interpret the financial statement .so that the

strengths and weakness of a firm, as well as its historical performances and current financial condition

can be determined .ratio reflects a quantitative judgment.

Steps in ratio analysis

1. The first task of the financial analysis is to select the information relevant to the decision

under consideration from the statements and calculates appropriate ratios.

2. To compare the calculated ratios with ratios of the same firm relating to the past or with the

industry ratios. It facilities in assessing success or failure of the firm.

3. Third step is to interpretation, drawing of inferences and report writing conclusions are drawn

after comparison in the shape of report or recommended courses of action.

TYPES OF RATIOS

1) LIQUIDITY RATIOS

Liquidity Ratios refers to the firm’s ability to satisfy its short term obligations or current

liabilities as they become due, liability will be usually of one year. It reflects the financial

strength/solvency of a firm. A firm should ensure that it does not suffer from lack of liquidity and also

that it does not have excess liquidity. A failure of company to meet its obligation due to lack of sufficient

liquidity, will result in poor credit worthiness. A very high degree of liquidity is also bad because, idle

asset earn nothing. The firm funds will be unnecessary tide up in current assets. Therefore, it is in

necessary to strike a proper balance between high liquidity and lack of liquidity.

A. CURRENT RATIO

The current ratio is also known as working capital ratio, the current ratio is an indication of a

firm’s market liquidity, is a measure of firm’s short-term solvency. It indicates the availability of current

assets in rupee for every rupee of current liability. A ratio greater than one means that the firm has more

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current assets than current liabilities against them. As conventional rule, a current ratio of 2:1 is

considered satisfactory. If current liabilities exceed current assets (the current ratio is below 1), then the

company may have problems meeting is short- term obligations. If the current ratio is too high, then the

company may not be efficiently utilizing its current assets. The current ratio is calculated as follows.

CURRENT ASSETS

CURRENT RATIO =

CURRENT LIABILITIES

Acid Test Ratio

The acid test ratio is also known as liquid or quick ratio. The idea behind this ratio is that stocks

are sometimes become problem because of we find difficult to sell or use. It is often referred to as quick

ratio because it is a measurement of a firm’s ability to convert its current assets quickly into cash that to

without any loss of value in order to meet its current liabilities. The term quick assets refers to current

assets which can be converted into cash immediately or at a short notice without diminution of value.

Included in this category of current assets are cash, bank balance, short term marketable securities,

debtors and receivables. Thus, the current assets which are excluded are prepared expenses and inventory.

Generally, an acid-test ratio of 1:1 is considered satisfactory as a firm can easily meet all current claims.

Quick Assets

Quick Ratio = ---------------------------

Current Liabilities

Quick Assets = (current assets - inventory)

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c. Cash Ratio

Since cash is the most liquid assets, a financial analyst may examine cash ratio and its equivalent

to current liabilities. Trade investments or marketable securities are equivalent of cash; therefore, they

may be included in the computation of cash ratio.

Cash + Marketable securities

Cash Ratio = ------------------------------------------

Current Liabilities

2) LEVERAGE/ CAPITAL STRUCTURE/ DEBT/ SOLVANCY

The second category of financial ratio is Leverage Ratio. The debt position of a company

indicates the amount of other people’s money being used to generate profits. The more debt a firm has the

greater is the risk creditors’ claims must be satisfied before the earnings can be distributed to

shareholders, lenders are also concerned about the firm’s indebtedness. To judge the long term financial

position of the firm, financial leverage or capital structure ratios are calculated. These ratios indicate mix

funds provided by the owners and lenders. As a general rule there should be an appropriate mix of debt

and owners equity in financing the firm’s assets.

There are two aspects of the long term solvency of a firm

i. Ability to repay the principal when due.

ii. Regular payment of the interest. Accordingly there are 2 different, but mutually dependent and

interrelated, type of leverage ratios. First ratio which are based on the relationship between borrowed

fund and owner’s capital.

a. Debt-equity Ratio

Debt equity measures the ratio of long term or total debt to share holder’s equity. The

relationship between borrowed funds and owner’s capital is popular measure of the long term financial

solvency of a firm.

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Total Debt

Debt Equity Ratio =

Net Worth

Net Worth = share capital + reserve + retained profits.

b) Proprietary ratio

A variant to the debt –equity ratio is the proprietary ratio, which is also known as equity ratio. This ratio

establishes relationship between shareholders funds to total assets of the firm.

Shareholders fund

Proprietary ratio =

Total assets

c) Fixed assets net worth ratio

The ratio establishes the relationship between fixed assets and shareholders’ funds, share capital plus

reserves, surpluses and retained earnings. The ratio can be calculated as follows;

Fixed assets (after depreciation)

Fixed assets to net worth ratio =

Shareholders fund

d) Interest coverage ratio

Net income to debt service ratio are simply debt service ratio is used to test the debt servicing capacity of

a firm. The ratio is also known as interest coverage ratio or coverage ratio. This ratio is calculated by

dividing by Net profit before interest and taxes by fixed interest charges.

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EBIT

Interest coverage ratio =

FIXED INTREST CHARGES

3) ACTIVITY /EFFICIENCY/ASSET UTILISATION/TURNOVER RATIO

Activity ratio are concerned with measuring the efficiency in assets management, it measures

how quickly a firm converts non-cash asset to cash asset (sales). The greater is the rate of turn over or

conversion the more efficient is the utilization of assets, other things being equal. For this reason such

ratio is also designated as turnover ratio.

It may be defined as the test of relationship between sales and various assets of firm. Depending

on the various types of assets, there are various types of activity ratio.

1) Inventory or Stock Turnover

Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet

the requirements of the business. But the level of inventory should neither be too high nor too low. It is

harmful to hold more inventories so it is advisable to dispose of inventory as early as possible.

SALES

INVENTORY TURN OVER RATIO = ---------------------------------

AVERAGE INVENTORY

2) Debtors Turnover Ratio

Credit is one of the important elements of sales promotion. The volume of sales can be increased

by following a liberal credit policy. Trade debtors are expected to be converted in to cash within a short

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period and or included in current assets. Hence, the liquidity position of concern to pay its short-term

obligations in time depends upon the quality of its trade debtors.

NET CREDIT ANNUAL SALES

DEBTORS TURNOVER RATIO =

AVERAGE TRADE DEBTOR

a) Working Capital

It indicates the velocity of the utilization of net working capital. Yhis indicates the no of times the

working capital is turned over in the course of a year. A higher ratio indicates efficient utilization of

working capital and lower ratio indicates inefficient utilization.

Sales

Working Capital Turnover = -------------------------------

Net Working Capital

4. PROFITABILITY RATIOS

The primary objective of a business undertaking is to earn profits. Profit earning is considered

essential for the survival of the business. A business needs profits not for its existence but also for

expansion and diversification.

Generally , profitability ratios are calculated either in relation to investment

General profitability ratios are

Gross profit ratio

Operating profit ratio

Net profit ratio

1. GROSS PROFIT RATIO

Gross profit is the difference between sales and the manufacturing cost of goods sold. The gross

profit margin reflects the efficiency with which management produces each unit of product. This ratio

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indicates the average spread between the cost of goods sold and the sales revenue. A high gross profit

margin ratio is a sign of good management.

Sales – Cost of Goods Sold

Gross Profit Margin = ----------------------------------------------

Sales

Gross Profit = Sales – Cost Of Goods Sold.

2. Operating profit ratio

This ratio is calculated by dividing operating profit by sales.

Operating profit

Operating profit ratio = x100

Net sales

3. Net profit ratio.

Net profit ratio establishes a relationship between net profit (after taxes) and sales and indicates the

efficiency of the management in manufacturing, selling, administrative and other activates of the firm.

This ratio is the overall measure of firms profitability and is calculated as.

Net profit after tax

Net profit ratio= x100

Net sales

4. overall profitability ratio

Profits are the measure of overall efficiency of a business. The higher the profit, the more efficient is the

business considered. Thus , overall profitability or efficiency of a business can be measured in terms of

profits related to investments made in the business.

a) Return on equity capital

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Ordinary share holders are the real owners of the company. They assume the highest risk in the company.

Ordinary shareholders are more interested in the profitability of a company and the performance of a

company should be judged on the basis of return on equity capital of a company.

Net profit after tax- preference dividend

Return on equity capital =

Equity share capital

b) Return on total assets

Profitability can be measured in terms of relationship between net profit and assets. This ratio is also

known as profit-to –assets ratio. It measures the profitability of investments. The overall profitability can

be known.

Net profit after tax

Return on assets =

Total assets

c) Earning per share

Earning per share are all a small variation of return on equity capital and are calculated by dividing the

net profit after taxes and preference dividend by the total number of equity shares.

Earnings available to equity shareholders

Earning per share=

NO. equity shares

d) Dividend payout ratio

Dividend pay out ratio is calculated to find the rxtent to which earnings per share have been retained in

the business. It is an important ratio because pouching back of profits enables a company to grow and pay

more dividends in future.

Dividend per equity share

Dividend pay out ratio=

Earning per share

Analysis and interpretation

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In this chapter , the various collected data has been analyzedand interpreted. The various tools used in this

comparative financial statements, trend analysis and ratio analysis.

In comparative financial statements again it is compared foe balance sheets as well as profit and loss

account. In trend analysis the percentage varied in all components with respect to precious years has been

done. Finally in ratio analysis various ratios like liquidity ratios profitability ratios, assets movement

ratios have been found out.

Comparative balance sheet

PARTICULAR 2009-10 2010-11 2010-11

INCERASE/DECREASE

IN Rs IN %

SOURCES OF FUNDS

Shareholder’s funds

Share capital 5,75,96,850 5,75,96,850 0.00 0.00

Reserves surplus 62,50,54,850 86,35,62,433 23,85,07,583 38.16

68,26,51,700 92,11,59,283 23,85,07,583 34.94

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Loans and funds

Secured loans 2,39,04,286 56,47,104 (1,82,57182) (76.38)

Unsecured loans 5,52,92,606 6,56,29,850 1,04,37,244 18.88

Deferred tax(net) 3,38,77,821 3,42,30,358 3,52,537 1.04

TOTAL 79,57,26,413 102,67,66,820 23,10,40,407 29.04

Application of funds

Fixed assets

Gross block 56,26,38,721 69,23,58,476 12,97,19,755 23.04

Accumulated depreciation 28,37,62,441 30,94,66,616 2,57,04,175 9.06

Net block 27,88,76,280 38,28,91,860 10,40,15,580 37.30

Capital work –in-progress 1,78,89,997 35,65,074 (1,43,24,923) (80.07)

29,67,66,277 38,64,56,934 8,96,90,657 30.22

Investment 4,48,54,400 5,00,00,000 51,45,600 11.47

Current assets

Loans and funds

Inventories 33,57,17,559 51,14,38,308 17,57,20,749 52.34

Receivables 30,32,08,487 36,23,14,806 5,91,06,319 19.49

Cash and bank balances 16,96,74,585 18,73,87,909 1,77,13,324 10.44

Loans and advances 4,96,13,589 8,50,05,185 3,53,91,596 71.33

Sub-total(A) 85,82,14,220 1,14,61,46,208 28,79,31,998 33.55

Current liabilities and

provisions

Current liabilities 36,40,69,573 48,81,98,992 12,41,29,419 34.10

Provisions 4,70,86,462 7,11,61,106 2,40,74,644 51.13

Sub-total(B) 41,11,56,035 55,93,60,098 14,82,04,063 36.04

Net current assets(A-B) 44,70,58,185 58,67,86,110 13,97,27,925 31.25

Miscellaneous expenditure

the extent not written off

70,47,551 35,23,776 (35,23,775) (50.00)

Total 79,57,26,413 102,67,820 23,10,40,407 29.04

Analysis and interpretation:

Share capital remains constant since no fresh issue of share made.

Reserves and surplus shows an increasing trend of 38.16%in 2010-11

This shows that the company has transferred good %of profits to reserve and surplus account

Secured loans are decreased by a gradual increase in unsecured loans and disinvestment.

There is a gradual increase inboth current assets and current liabilities

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Miscellaneous expenditure, is decreased in the year2010-2011

Comparative income statement

PARTICULAR 2009-10 2010-11 2010-11

INCERASE/DECERASE

IN RS IN %

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INCOME

Sales 188,58,08,040 274,13,60,356 85,55,52,316 45.37

Other income 2,78,36,530 4,82,26,975 2,03,90,445 73.25

TOTAL 191,36,44,570 278,95,87,331 89,59,42,761 45.77

EXPENDITURE

Material consumed 123,78,42,995 181,08,92,176 57,30,49,181 46.30

Personal and other expenses 41,89,82,721 50,42,43,618 8,52,60,897 20.35

Finance charges 53,38,233 52,97,747 (40.486) (0.76)

Depreciation 2,89,93,059 2,81,49,745 (8,43,314) (2.91)

TOTAL 169,11,57,008 234,85,83,286 65,74,26,278 38.87

PROFIT OF THE YEAR 22,24,87,562 44,10,04,045 21,85,16,483 98.22

Add/(Less):PRIOR years

adjustment

1,12,097 3,70,448 2,58,351 230.47

PROFIT FOR INCOME

TAX

Current tax 7,83,00,000 15,02,00,000 7,19,00,000 91.83

Income tax –prior period 3,596 - - -

Deferred tax (38,07,957) 3,52,762 41,60,719 109.26

Fringe benefit tax 40,78,800 17,10,497 (23,68,303) (58.06)

TOTAL TAX 7,85,74,439 15,22,63,259 7,36,88,820 93.78

PROFIT AFTER TAX 14,40,25,220 28,91,11,234 14,5086,014 100.74

Analysis and interpretation:

Sales shows an increasing trend of 45.37%during the year 2010-2011. Indicates the better financial

soundness of the company.

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Even other also show a significant increase of 45%

However there is a increase even in expenditure by 38%

Ratio analysis

Liquidity ratios

a.Current ratio

Current ratio=Current assets/Current liabilites

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This is the most widely used ratio. It is the ratio of current asset to current liability generally 2:1 is

considered ideal for a concern. The current ratio considers a margin of safety for creditors. The higher the

ratio the greater the margin of safety; the larger the amount of current asset in relation to current liability

the more the firm’s ability to meet its obligation The current ratio is a crude and quick measure of firm’s

liquidity.

PARTICULAR 2009-10 2010-11

CURRENT ASSETS 808600631 1061141023

CURRENT LIABILITES 411156035 559360098

CURRENT RATIO 2.00 1.90

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2009-10 2010-111.84

1.86

1.88

1.9

1.92

1.94

1.96

1.98

2

CURRENT RATIO

CURRENT RATIO

Analysis

The current ratio of the company is decreased to 1.90 in the year 2010-11compared to the previous year

of 2.00 in the year 2009-10.

INTERPRETATION

The current ratio of the company is decreased to 1.90 in the year 2010-11compared to the

previous year of 2.00 in the year 2009-10. Current ratio measures the degree to which current assets cover

current liabilities. The ideal ratio is 2:1. From the above table, we can observe that the liquidity position

of the company is satisfactory which shows the improvement in the efficiency of current assets

management. Thus the firm is efficiently utilizing its current assets.

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1. QUICK (ACID TEST OR LIQUID) RATIO:

This is the ratio of liquid assets to liquid liability 1:1 ratio is considered ideal ratio for a Concern

because it is wise to keep the liquid assets at least equal to liquid liability at all Times. Liquid assets are

those assets are those assets which are readily converted into cash and will include cash balances, bill

receivables, sundry debtors and short term investments. Inventories and prepaid expenses are not included

in liquid assets. Liquid liabilities except bank overdraft.

Current Asset-Inventory (Quick Assets)

Quick Ratio= ----------------------------------------------------------------------

Current Liabilities (Quick Liabilities)

QUICK RATIO

PARTICULAR 2009-10 2010-11

LIQUID ASSETS 472883072 549702915

CURRENT

LIABILITES

411156035 559360098

LIQUID RATIO 1.15 0.98

2009-10 2010-110.85

0.9

0.95

1

1.05

1.1

1.15

QUICK RATIO

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Analysis

From the above we can observe that the ratio was high during the year2009-10. And it decreased to 0.98

which indicates the firm is liquid and has ability to meet its current liabilities.

INTERPRETATION

As a rule of thumb Quick ratio of 1:1 is considered satisfactory. It is generally thought if the

quick assets are equal to current liabilities, then the concern may be able to meet is short term obligations.

From the above we can observe that the ratio was high during the year2009-10. And it decreased to 0.98

which indicates the firm is liquid and has ability to meet its current liabilities.

1. CASH RATIO (ABSOLUTE LIQUIDITY RATIO)

Since cash is most liquid asset to get an idea about absolute liquidity of a concern, both receivables

and inventories are excluded from current assets and only absolute liquid asset Such as cash, bank and

realizable securities are taken into consideration. Standard norm is 0.5:1. This is still more rigorous test of

liquidity.

Cash ratio=Cash /Current liabilities

ABSOLUTE LIQUID RATIO

PARTICULAR 2009-10 2010-11

CASH AND ITS

EQUIVALENTS

169674585 187387909

CURRENT

LIABILITES

411156035 559360098

CASH RATIO 0.41 0.34

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2009-10 2010-110

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45



Analysis

The cash ratio of the company is decreased to 0.34 in the year 2010-11 compared to the previous ratio of

0.41 in the year 2009-10

INTERPRETATION

The cash ratio of the company is decreased to 0.34 in the year 2010-11 compared to the previous

ratio of 0.41 in the year 2009-10. The acceptable norm for cash ratio is 0.5. from the above table we can

infer that the company is not able to meet its cash requirements. thus liquid ratio is unfavorable for the

year 2010-11.

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CAPITAL TURN OVER RATIO

This ratio shows the efficiency of capital employed in the business by computing how Many

times capital employed is turned over in a stated period. The ratio is ascertained As follows:

Capital Turnover Ratio=Sales/capital employed

PARTICULAR 2009-10 2010-11

CAPITAL

EMPLOYED

761848592 992536237

SALES 1885808040 2741360356

CAPITAL

TURNOVER RATIO

2.48 2.76

2009-10 2010-112.3

2.35

2.4

2.45

2.5

2.55

2.6

2.65

2.7

2.75

2.8



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Analysis

From the above table we can see that the capital turnover is increased to 2.76 in the year 2010-

11compared to previous year ratio of 2.48 in the year 2009-10

INTERPRETATION

From the above table we can see that the capital turnover is increased to 2.76 in the year 2010-

11compared to previous year ratio of 2.48 in the year 2009-10. This is another ratio to judge the

efficiency and effectiveness of company. The sales are greatly with the previous year. Due to huge

increase in net profit, the capital employed has also increased with the previous year. Due to huge

increase in net profit, the capital employed had also increased along with sales. Both have effected in the

increment of capital turn over. Thus, it is showing a very positive trend.

WORKING CAPITAL TURNOVER RATIO

This ratio reveals number of times working capital is turned over in a stated period. The Ratio of

sales to working capital can be judged as follows:

Working capital ratio = sales/working capital

The higher the ratio lowers the investment in working capital and greater are the profit. However, a

very high turnover of working capital is a sign of over trading and may put The concern to financial

difficulties a low working capital is not effectively used.

PARTICULAR 2009-10 2010-11

NET WORKING

CAPITAL

444531058 572942031

SALES 1885808040 2741360356

WORKING CAPITAL

TURNOVER RATIO

4.24 4.78

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2009-10 2010-113.9

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

WORKING CAPITAL TURN OVER RATIO

WORKING CAPITAL TURN OVER RATIO

Analysis

In the year 2010-11 working capital has been increased when you compare in the year 2009-10

INTERPRETATION

It indicates the velocity of the utilization of net working capital. This indicates the number of

times the working capital is turned over in the course of a year. From the above table we can say

company is taking proper measures for effective management of working capital.

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TOTAL ASSETS TURN OVER RATIO

PARTICULAR 2009-10 2010-11

SALES 1885808040 2741360356

TOTAL ASEETS 1206882448 1586126918

TOTAL ASEETS

TURNOVER RATIO

1.56 1.73

2009-10 2010-111.45

1.5

1.55

1.6

1.65

1.7

1.75

ANALYSIS

The total assets turnover ratio is increased to 1.73 in the year 2010-11 from a previous year low of 1.56 in

the year 2009-10. The standard for the ratio 2:1.

EWCM/RCN/AN

KMS COUCH BUILDERS

INTERPRETATION

The total assets turnover ratio is increased to 1.73 in the year 2010-11 from a previous year

low of 1.56 in the year 2009-10. The standard for the ratio 2:1. From the above we can infer that assets

are comparatively higher to its turnover indicating over-stocking or under-stocking of fixed assets. This

ratio further indicates overstocking.

STOCK TURNOVER (INVENTORY TURNOVER RATIO)

Stock turnover ratio establishes efficiency of the firm in selling its product. It establishes

relationship between sales and inventory of a particular period. The ratio reveals number of times finished

stock is turned over during a given accounting Period. Higher the ratio better it is because it shows that

finished stock is rapidly Turnover. A Low stock turnover is not desirable because it reveals that obsolete

stock or the carrying of too much stock. This ratio is calculated as follow.

Stock turnover ratio = sales/inventory

Inventory turnover ratio

PARTICULAR 2009-10 2010-11

Sales 1885808040 2741360356

Average inventory 300553059 423577933

ITR 6.27 6.73

EWCM/RCN/AN

KMS COUCH BUILDERS

2009-10 2010-116

6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8 inventory turover ratio

INTERPRETATION

Stock turnover is increased to 6.73 in the year 2010-11 from 6.27 in the year 2009-10. Inventory

ratio measures the velocity of stock. The standard ratio is 5 to 7 times of inventory to sales. From the

above table we can observe that the ratio is satisfactory in all the years which show the efficient

management of inventory of the firm.

EWCM/RCN/AN

KMS COUCH BUILDERS

Debtors turnover ratio

PARTICULAR 2009-10 2010-11

Net credit sales 1885808040 2741360356

Average debtors 272584534 332761646

DTR 6.92 8.24

2009-10 2010-116

6.5

7

7.5

8

8.5 Debtors turn over ratio

INTERPRETATION

Debtors turnover ratio indicates who promptly the company is collecting debtors. There is

no thumb rule which may be used to interpret the debtors turnover ratio as it may differ from a concern to

another depending upon the nature of concern. Comparing to the company standard of 9-10 times a year

the debtors turnover is not up to their standard. Thus company is not efficient in managing debtors.

EWCM/RCN/AN

KMS COUCH BUILDERS

CREDITORS TURN OVER RATIO

Net credit annual purchase

Creditors turn over =

Average turn over ratio

PARTICULAR 2009-10 2010-11

DTR 1304956181 1986081295

NO of days 320203900 426134282

ACP(DAYS) 4.08 4.66

EWCM/RCN/AN

KMS COUCH BUILDERS

2009-10 2010-11

3.7

3.8

3.9

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

creditors turnover ratio

Analysis

The creditors turnover is increased to 4.66 times in the year 2010-11compared to previous year low of

4.08 times in the year 2009-10

INTERPRETATION

The creditors turnover is increased to 4.66 times in the year 2010-11compared to previous year low of

4.08 times in the year 2009-10. A low creditors turnover reflects liberal credit terms granted by suppliers

while a high creditors turnover ratio indicates that account have settled rapidly. Thus , from the above

table we can infer the company is enjoying liberal credit terms from the suppliers.

EWCM/RCN/AN

KMS COUCH BUILDERS

SOLVENCY RATIO

INTREST COVERAGE RATIO

PARTICULAR 2009-10 2010-11

INTREST 5338233 5297747

EBIT 204367086 407424650

INTREST COVERAGE

RATIO

38.27 76.87

Solvency ratios

EWCM/RCN/AN

KMS COUCH BUILDERS

2009-10 2010-110

10

20

30

40

50

60

70

80

INTEREST COVERAGE RATIO

INTREST COVERAGE RATIO

Analysis

The operating profits company is 76.87 times higher than their interest liability comparing to the previous

year interest coverage ratios of 38.27 times 2009-10.

INTERPRETATION

The operating profits company is 76.87 times higher than their intrest liability comparing to the previous

year interest coverage ratios of 38.27 times 2009-10. This a good sign to the company. The lenders are

secured to a greater extent.

DEBT EQUITY RATIO

PARTICULAR 2009-10 2010-11

Long term debts 79196892 71376954

Share holders funds 682651700 921159283

Debt equity ratio 0.12 0.08

EWCM/RCN/AN

KMS COUCH BUILDERS

2007-2008 2008-20090

0.02

0.04

0.06

0.08

0.1

0.12

debt equalty ratio

debt equalty ratio

Analysis

From the above we see that debt-equity is decreased to0.08 in the year 2010-11 from previous ratio of

0.12 in the year 2009-10.

INTERPRETATION

From the above we see that debt-equity is decreased to0.08 in the year 2010-11 from previous ratio of

0.12 in the year 2009-10. It is calculated to know the extent to which debt financing has been used against

The firms assets. A low ratio is viewed can only be taken as unsatisfactory because they find neglected

opportunities for using low cost outsiders fund to acquire fixed assets. The ratio 1:1 is advisable. It can be

inferred that the company concentration on returning debts borrowed seems to be more and it would like

to operate on its own capital rather than borrowed funds.

Fixed assets ratio

PARTICULAR 2009-10 2010-11

EWCM/RCN/AN

KMS COUCH BUILDERS

Fixed assets 296766277 386456934

Capital employed 682651700 921159283

Fixed assets ratio 0.43 0.42

2007-2008 2008-20090.414

0.416

0.418

0.42

0.422

0.424

0.426

0.428

0.43

fixed assets ratio

fixed assets ratio

Analysis

There is a decreasing trend during the years. Thus the firm has to achieve the ideal ratio in the company

years for the better utilization of the shareholders’ fund

INTERPRETATION

Generally the purchase of fixed assets should be financed by shareholders funds. If the ratio is less than

100% it implies that owners funds are more than fixed assets and shareholders provide a part of working

capital. The ratio is satisfactory when it is between 60to65percentage. There is a decreasing trend during

the years. Thus the firm has to achieve the ideal ratio in the company years for the better utilization of the

shareholders’ fund.

EWCM/RCN/AN

KMS COUCH BUILDERS

Proprietory ratio

PARTICULAR 2009-10 2010-11

Shareholders’ funds 682651700 921159283

Total tangible assets 1199834897 1582603142

Proprietary ratio 0.57 0.58

1. PROPRIETARY RATIO;

A variant to debt equity ratio is the proprietary ratio, which is also known as Equity Ratio or

Shareholders to total Equities ratio. This ratio establishes the relationship between shareholders funds to

total assets of the firm.

Proprietary Ratio=Proprietary funds /Tangible assets

2009-10 2010-110.564

0.566

0.568

0.57

0.572

0.574

0.576

0.578

0.58

proprietary ratio

proprietary ratio

EWCM/RCN/AN

KMS COUCH BUILDERS

Analysis

The proprietary ratio is increased to 0.58 in the year 2010-11 from previous year ratio of 0.57 in the year

2009-10. The ratio represents the relationships of owners fund to total asset

INTERPRETATION

The proprietary ratio is increased to 0.58 in the year 2010-11 from previous year ratio of 0.57 in the year

2009-10. The ratio represents the relationships of owners fund to total asset. When the ratio is high the

risk is low. The ratio below 50% may be alarming for the creditors since they have to lose heavily in the

event of company’s liquidation on account of heavy losses. The table shoes high ratio is the long-term

solvency position of the company.

Profitability ratio

A company should earn profit to survive and grow over a long period of time. Profit is the

difference between revenue and expense over a long period of time. Profit is the Ultimate output of a

company and it will have no future it is fails to make sufficient Profit. The profitability ratios are

calculated to measure the operating efficiency of the Company. Besides management of a company,

creditors want to get interest and Repayment of principal regularly. Owners want to get reasonable return

on their Investment. These ratios are calculated to enlighten the end result of the business Activities

which is the sole criterion of the overall efficiency of the business concern.

Generally two major types of profitability ratios are calculated.

Profitability in relation to sales.

Profitability in relation to investment

EWCM/RCN/AN

KMS COUCH BUILDERS

Gross profit ratio

Gross profit ratio:-

This ratio tells gross margin on trading and is calculated as under

Gross profit ratio = gross profit/sales *100

Gross profit should be adequate to cover fixed expenses, dividends and building up of Reserves. An

important factor which will affect the ratio of gross profit to sales is that Of Practice of increasing or

reducing the sale price of goods sold by marks up and Marks downs. It is important that a business keep

up its margin of gross profit Otherwise it may not cover its operating expenses and thus provide an

adequate relation to proprietors.

PARTICULAR 2009-10 2010-11

Gross profit 586010346 852089333

Net sales 1885808040 2741360356

g/p ratio(%) 31.07 31.08

2007-2008 20008-2000931.064

31.066

31.068

31.07

31.072

31.074

31.076

31.078

31.08

gross profit ratio

gross profit ratio

EWCM/RCN/AN

KMS COUCH BUILDERS

Analysis

The gross profit is increased to 31.08% in the year 2010-11 from previous year low of 31.07% in the year

2009-10.

INTERPRETATION

The gross profit is increased to 31.08% in the year 2010-11 from previous year low of 31.07% in the year

2009-10. The ratio indicates the extent to which selling price may declaim without resulting in losses on

operations of a firm. It reflects the efficiency with which a firm produces its products. It also helps in

ascertaining whether the average of makeup on the goods is maintained. The table shows low gross profit

ratio, which generally indicates considerable increase in expences due to some unfavorable reasons.

Net profit ratio

This ratio is very useful to the proprietors and prospective investors because it reveals the overall

profitability of the concern. This is the ratio of net profit after taxes to net Sales. Sales are calculated as

follows.

Net profit ratio = Net profit/sales *100

particular 2009-10 2010-11

NPAT 144025220 289111234

NET SALES 1885808040 2741360356

NET PROFIT RATIO% 7.64 10.55

EWCM/RCN/AN

KMS COUCH BUILDERS

2009-10 2010-110

2

4

6

8

10

12

NET PROFIT RATIO

NET PROFIT RATIO

Analysis

The net profit ratio is increased to 10.55% in the year 2010-11 from the previous year ratio of 7.64% in

the year 2009-10.

INTERPRETATION

The net profit ratio is increased to 10.55% in the year 2010-11 from the previous year ratio of 7.64% in

the year 2009-10. The ratio indicates the percentage of net profit earned by the enterprises on the sales.

This ratio indicates the firm capacity to face the adverse economic conditions. The net profit has

increased during 2010-11 as compared to previous year.

OPERATING PROFIT RATIO

Particular 2009-10 2010-11

EBIT 204367086 407424650

EWCM/RCN/AN

KMS COUCH BUILDERS

NET SALES 1885808040 2741360356

OPERATING PROFIT

RATIO%

12.38 15.89

2009-10 2010-110

2

4

6

8

10

12

14

16



Analysis

The operating profit ratio of the company is increased to 15.89% in the year 2010-11 from previous year

ratio of 12.38% in the year 2009-10.

INTERPRETATION

The operating profit ratio of the company is increased to 15.89% in the year 2010-11 from previous year

ratio of 12.38% in the year 2009-10. There is no ideal ratio for operating profit if the ratio is higher it will

be better. Sales registered a steady increase throughout the years and operating profit also increased

which resulted in increase in operating profit.

OPERATING COST RATIO

Particular 2009-10 2010-11

COGS+O/E 1652447895 2305785961

NET SALES 1885808040 2741360356

EWCM/RCN/AN

KMS COUCH BUILDERS

Operating cost ratio 87.62 84.11

2009-10 2010-1182

83

84

85

86

87

88

operating cost ratio

operating cost ratio

Analysis

From the above table we can see that the operating cost is decreased to84.11% during the year 2010-11

from 87.62%in the year 2009-10.

INTERPRETATION

Lower the ratio, the better it is. Higher the ratio, the less favorable it is because it would have smaller

margin of operating profit for the payment of dividends and the creation of reserves. From the above table

we can see that the operating cost is decreased to84.11% during the year 2010-11 from 87.62%in the year

2009-10. Thus its showing optimal level of efficiency by reducing operating cost.

RETURN ON NET WORTH

Particular 2009-10 2010-11

EWCM/RCN/AN

KMS COUCH BUILDERS

NPAT 144025220 289111234

Share holders funds 682651700 921159283

RONW % 21.10 31.40

2009-10 2010-110

5

10

15

20

25

30

35

RETURN ON NET WORTH

RETURN ON NET WORTH

Analysis

. The return on net worth is increasing at a greater rate from 21.10% in the year 2009-10 to 31.40%

during the year 2010-11.

INTERPRETATION

From the above table we can infer that return on shareholders is fairly good owing to the fact that only

8% of capital is employed is through debt. The return on net worth is increasing at a greater rate from

21.10% in the year 2009-10 to 31.40% during the year 2010-11.

Overall profitability ratio

RETURN ON TOTAL ASSETS

EWCM/RCN/AN

KMS COUCH BUILDERS

Particular 2009-10 2010-11

NPAT 144025220 289111234

TOTAL ASSETS 1206882448 1586126918

ROTA % 11.93 18.23

2009-10 2010-110

2

4

6

8

10

12

14

16

18

20



Analysis

. Return on assets of the KMS COUCH BUILDERS LTD for the year 2009-10 was 11.93% and the year

2010-11 was 18.23%

INTERPRETATION

This is the ratio between net profit and total assets. Here, the return on assets seems to be good at 18.23%

indicating firm is making efficient use of its asset base. Return on assets of the KMS COUCH

BUILDERS LTD for the year 2009-10 was 11.93% and the year 2010-11 was 18.23%

RETURN ON CAPITAL EMPLOYED

This ratio is considered to be the most important ratio because it reflects the overall Efficiency

with which capital is used. This ratio is an indicator of earning capacity of Capital employed in the

EWCM/RCN/AN

KMS COUCH BUILDERS

business. By capital employed we mean fixed assets plus Working capital and for net profit; amount is

taken for interest, tax and dividend. This Ratio is a helpful tool for making capital budgeting decision a

profit yielding higher Return as favored. This ratio is computed as:

Return of capital employed = Net profit/capital employed *100

Particular 2009-10 2010-11

EBIT 204367086 407424650

Capital employed 716994192 942536247

ROCE % 28.50 43.23

2009-10 2010-110

5

10

15

20

25

30

35

40

45



EBIT

Return on capital employed = x 100

Capital employed

Analysis

EWCM/RCN/AN

KMS COUCH BUILDERS

The return on capital employed is increasing to 43.23%in the previous year 2010-11from 28.50%in the

year 2009-10. This is the ratio between operating profits and capital employed.

INTERPRETATION

The return on capital employed is increasing to 43.23%in the previous year 2010-11from 28.50%in the

year 2009-10. This is the ratio between operating profits and capital employed. The ratios is generally

calculated as percentage multiplying with 100. The operating profit is increased due to the increase in the

sales and the capital employed is increased because of reserve&surplus. So, the ratio is increased in the

current year.

EARNING PER SHARE

Particular 2009-10 2010-11

NPAT 144025220 289111234

NO OF SHARES OUTSTANDING 5759685 5759685

EPS 25.01 50.20

EWCM/RCN/AN

KMS COUCH BUILDERS

2009-10 2010-110

10

20

30

40

50

60

EARNING PER SHARE

EARNING PER SHARE

Analysis

The earnings per share of the increased into a new high of rs.50.20 in the year 2010-11 from rs25.01 in

the year2009-10.

Interpretation

The earnings per share of the increased into a new high of rs.50.20 in the year 2010-11 from rs25.01 in

the year2009-10. Net profit after tax is increased due to the huge increase in the sales. That is the amount

which is available to the shareholders to take. There are shares 57,59,685 of rs. 10each. The share capital

is constant from the year 2008-09. Due to the huge increase per share is greatly increased in 2009-10.

DIVIDEND PAYOUT RATIO

Particular 2009-10 2010-11

DIVIDEND PER EQUITY

SHARE

5.00 7.50

EWCM/RCN/AN

KMS COUCH BUILDERS

EPS 25.01 50.20

DPR % 20 14.94

2009-10 2010-110

2

4

6

8

10

12

14

16

18

20



Analysis

From the above table it is clear that the company has retained greater part of its profit to future. Thus it

has resulted in low dividend payout ratio of 14.94%in the year 2010-11

Interpretation

Dividend payout ratio is calculated to find the extent to which earning per share have been retained in the

business. From the above table it is clear that the company has retained greater part of its profit to future.

Thus it has resulted in low dividend payout ratio of 14.94%in the year 2010-11

EWCM/RCN/AN

KMS COUCH BUILDERS

FINANCIAL STATEMENT BALANCE SHEET

particular

2011 2010

Sources of funds

Shareholder’s funds

Share capital 5,75,96,850 5,75,96,850

Reserves and surplus 86,35,62,433 62,50,54,850

EWCM/RCN/AN

KMS COUCH BUILDERS

92,11,59,283 68,26,51,700

Loans funds

Secured loans 56,47,104 2,39,04,286

Unsecured loans 6,57,29,850 5,52,92,606

Deferred tax 3,42,30,358 3,3877821

Total 102,67,66,820 79,57,26,413

Application of funds

Fixed assets

Gross block 69,23,58,476 56,26,38,721

Accumulated depreciation 30,94,66,616 28,37,62,441

Net block 38,28,91,860 27,88,76,280

Capital work –in-progress 35,65,074 1,78,89,997

38,64,56,934 29,67,66,277

Investment 5,00,00,000 4,48,54,400

Current assets

Loans and advances

Inventories 51,14,38,308 33,57,17,559

Receivables 36,23,14,806 30,32,08,487

Cash and loans balances 18,73,87,909 16,96,74,585

Loans and advances 8,50,05,185 4,96,13,589

Sub-totals(A) 1,14,61,46,208 85,82,14,220

Current liabilities and

provisions

Current liabilities 48,81,98,992 36,40,69,573

Provisions 7,11,61,106 4,70,86,462

Sub-total (B) 55,93,60,098 41,11,56,035

Net current assets(A-B) 58,67,86,110 44,70,58,185

Miscellaneous expenditure the

extent not written off

35,23,776 70,47,551

Total

102,67,66,820 79,57,26,413

PROFIT AND LOSS ACCOUNT AS ON 31/3/2009

PARTICULARS 2009 2008

EWCM/RCN/AN

KMS COUCH BUILDERS

INCOME

Sales 274,13,60,356 188,58,08,040

Other income 4,82,26,975 2,78,36,530

Total 278,95,87,331 191,36,44,570

Expenditure

Materials Consumed 181,08,92,176 123,78,42,995

Personal and other

expenses

50,42,43,618 41,89,82,721

Finance charges 52,97,747 53,38,233

Depreciation 2,81,49,745 2,89,93,059

Total 234,85,83,286 169,11,57,008

Profit for the year 44,10,04,045 22,24,87,562

Add/(less):prior years

adjustment

3,70,448 1,12,097

Profit for income tax

Current tax 15,02,00,000 7,83,00,000

Income tax –prior period 3,596

Deferred tax 3,52,762 (38,07,957)

Fringe benefit tax 17,10,497 40,78,800

Total tax 15,22,63,259 7,85,74,439

Profit after tax 28,91,11,234 14,40,25,220

Finding of the study

EWCM/RCN/AN

KMS COUCH BUILDERS

1. The current ratio has shown in a fluctuating trend as 2.00 and 1.90 during 2010-11 of which indicates a

continuous increase in both current assets and current liabilities

2. The quick ratio is also in a fluctuating trend throughout the period 2009-10 resulting as 1.15and 0.98

respectively. The company present liquidity position is satisfactory.

3. The absolute liquid ratio is decreased from 0.41to 0.34 from 2009-10. The firms cash ratio is not up to

industry standard.

4. The debt-equity ratio of the company is decreased from the year to year. It indicates that debt has

increased as proportion increased to share holders fund.

5. The proprietary ratio is showing a fluctuating trend. The proprietary ratio is increased compared with the

last year. So , the long term solvency of the firm is increased.

6. The working capital turnover ratio is increased from 4.24 to 4.78 in the year 2010-11

7. The capital turnover ratio is increased from 2.48 to 2.76.

8. Debtors turn over ratio shows that the company has changed its credit policy to collect from its debtors.

9. The net profit is increased greatly in the current year. So the return on total assets ratio is increased from

11.93%to18.23%

10. The return on capital employed is increased from 28.50% to 43.23%compared with the previous year.

Both the profit and shareholders funds increase cause an increase in their shareholders.

11. The return on shareholders funds ratio is increased from the year to year expect 2010-11. it shows the

company has in better condition to pay the return on investment of their shareholders.

12. Earnings per share of the company have increased from year to year. It indicates that dividend of the

shareholders will be secured.

Suggestions:

1. The liquidity position of the company is fluctuating from past 2 year. Through it is satisfactory,it is not a

good sign to the company. Thus ,the company has to maintain stability in the liquidity of the company.

2. The company cash is not up to industry standard. Thus the company should maintain an adequate cash

and bank balance in order to meet the emergency requirements.

3. The credit policy of the company is mot up to their standards. The debtors should be adequately

monitored to reduce the delay in collections.

4. The working capital of the company has maintained the standard levels. It must maintain the same for

future years.

5. The company has to increase its debt portion in its capital structure by back of shares in order to take

advantage of trading on equity to maximize the value of the shareholders.

6. Gross profit of the company is low compared to previous year. Thus, the company has to reduse the

expenses in order to increase the profits.

EWCM/RCN/AN

KMS COUCH BUILDERS

Conclusion

Kms is a manufacturing unit which produces buses. The company vision is to be economical and

competitive in the market.it has achieved its goals and attained market leadership through employees to

be BEST IN THE FIELD.

The company products are marketed under the brand name looking at the overall market scenario and

economic situations the performance of the industry seems to be bright.

The company has been doing their activity effectively and efficiently. The company has a sound long-

term solvency. The company year position is well due to rise in the profit level from the last years

position.

Further it is suggested that company should try to maintain and to tune its volume of business. The

company can adapt the suggestions if found necessary.

EWCM/RCN/AN

project on kms

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