raj oil final

8/3/2019 Raj Oil Final

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A

Financial Report On Three Years Annual Reportsof

.

Under the guidance:

Pro. Poonam Kanchani

SUBMITED BY:

Rathor Laxman J

Roll No:-4057

SUBMITED TO:

Govt.B.B.A.College

(K.K.Shashtri Sancul)

Maninag

ar. Abad.

R A J O I L M I L L S L T D .Page 10


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CERTIFICATE

This is to certify that the financial report on the three years publishing data of

Raj Oil Mill Ltd. is submitted by RATHOR LAXMAN J. to Govt. B.B.A. College,

affiliated to the Gujarat Univercity, in fulfillment of the completion of practical studies at

the second year B.B.A. programme for the year2009-10.

Principal. Prof.incharge.

Date:



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S.R.NO

NAME ROLL

NO

1 RATHOR LAXMAN J 4057

2 JAIN PRASHANT 4022

3 GOHIL MAYUR 4019

4 BAROT DIPAK 4005

5 OZA ARPAN 4038

6 PANCHAL POONAM 4040

7 KHATWANI PRAKASH 4025



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Acknowlegement

It is pleasure to represent this report. I thank of then who helped me to got necessary

information to prepare this report. I would like to express my sinciar thanks to our Pro.Poonam

Kanchani for arranging such a useful project on finance analysis.

I would like to convey my special thanks to our Pro.Pooja madam who has

always been a source of invaluable information and encouragement for us . I also share my

obligation to my fiends for leading me a helping in preparation of my report .And special thanks

to the administration staff of my college for their support.



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PREFACE

A company is publishing its annual report for share holder as per the

companies act. How ever without analyzing the companys annual report. We can not know the

actual position of the company. The share holders by the studying the balance sheet. Sometimes

feel safe that they have instead in the company Where profit are increasing only the ratio analysis

can appropriately unable assesstment of companys actual profitability.

Here this practical activity of preparing report on financial analysis is

very important for a student who studying in the business administration programme. The

preparation of this report is based on the financial analysis annual report of three consecutive

year of a public limited company.



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TABLE OF CONTENT

S.R.NO. Particular Page No.

Title Page

Certificate 2

Acknowledgement 4

Preface 5

1) Company Profile 7

2) Directors Reports 11

3) Auditor Report 14

4) Ratio Analysis 18

5) Common Size Statement 51

6) Cash flow Statement 56

7) Conclusion 63

8) Bibliography 64

9) Annexure: 65

Balance Sheet

P & L Account

Cash Flow Statement



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Company profile

(A)General Information

Name : RAJ OIL MILL LTD.

Registered Office : 224-230 Bellasis Road

Mumbai-400008.

Company Type : Public Limited Co.

Type of Industry : Oil Industry

Established Year : 17 Octomber,2001

E-mail : [email protected]

Tele.No. : +91-22-23021996-98

Website : www.rajoilmillsltd.com

mailto:[email protected]://www.rajoilmillsltd.com/mailto:[email protected]://www.rajoilmillsltd.com/


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Company Registration : 11-133714 eIN:

U15142Number MH2001PLC133714

(B) Key Personal

Chairman & Managing Director

(1) Mr.Shaukat S. Tharada

(2) Mr.Azamkhan F. Lohani

Board of Director

(1) Mr.Abdulla K. Musla

(2) Mr.Rashid I. Tharadra

(3) Mr.Bhimji V.Ratanghayra

(4) Mr.Mohamedi T.Singaporewala

(5) Mr.Narotambhai V. Patel

(6) Dr.R.H. Balasubramany

Company Secretary

Mr.Alok Desai



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Legal advisor to the issue

M/S Arpan M. Rajput & Co.

Auditor to the Company

M/S M.K. Gohil & Associates(Chartered Accountants)

Bankers to the Company

(1) ICICI Bank Ltd

(2) Yes Bank Ltd

(3) Development credit Bank Ltd

(4) HDFC Bank Ltd

(5) The Shamrao Vithal Co-operative Bank Ltd

Promoter of the Company

(1) Mr.Shaukat S. Tharada

(2) Mrs.Shanida S. Tharada



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(C) Business Overview

A Partnership firm RAJ OIL MILLS was formed on 18 February 1959 with

registration No.B-8203 was engaged in the business of dealing in edible oil on October , 2001.RAJ OIL MILLS LTD was incorporated to undertake the business of buying, selling ,

manufacturing , processing of edible oil. The Registered office of the company is in the Mumbai.

At present RAJ OIL MILLS LTD is engaged in the business of crushing and

oil filtration with a capacity of5000 TPA and 30000 TPA Respectively.

Product

:The following are the major product of the company.

Cocoraj Coconut Oil.

Cocoraj Cool Ayurvedic Oil.

Guined filtered Groundnut Oil.

Guined Lite Refined Groundnut Oil.

Guined Lite Refined Sunflower Oil.

Tilraj Til Oil.

Mustraj Mustered Oil.

Guined Lite Refined Cottonseed Oil.

Guined Lite Refined Soyabeen Oil.

Cocoraj Jashmine

(D) Business Strategy

Versatile Manufacturing Capabilities.

High Quality Products.



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Our Wide Product Range.

Competitive Conditions.



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DIRECTORS REPORT

PERFORMANCE:

Sales achieved during the financial year ended on 31st march 2009 is 2229.68lac profit tax is

240.43lac the overall business scenario last year was not buoyant due to political turmoil and

effect arising out of sactions imposed after the oil tests. However, inspite of the aboveeconomic conditions, the 15% growth achieved by your company is considerd satisfactory.

Financial results & appropriations

Profit for the year providing Rs. 240.43lac,

General reserve is Rs. 7622.67, proposed final dividend is @15%

Foreign exchange outgo & earnings

Details of foreign exchange outgo and earnings appear under items (v) to (ix) of schedule

19 to the accounts for the year under review

Future prospectus



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The year to date performance encouraging director are hope full that bearing unforeseen

circumstances, the currant year will also show improved performance.

Dividend

Director paid interim dividend at 15% on the increased paid up ordinary share capital of

the company, after issue of bonus share in the ratio 4:1 and are now pleased

recommended , for the approval of the member, a final dividend at 15% on the further

increased paid up ordinary share capital of the company, after issue of share to the

members of raj oil mills ltd, in terms of the scheme of new management

Fixed deposit

The amount of deposit by the public & share holders with your company as on 31st march

2009 was 240.43 lac. Out of this, deposit amounting to rs 52 lac which had matured for

repayment. Are lying unclaimed for which your company has sent out reminders.

Personnel:

Company recognize human resource as the most important toll to achieve its objectives.

Director would like to placed on record their there appreciation of the valuable

contribution made by all the employees at all level.

Listing with stock exchange:

Company is listed with the Bombay stock exchange, dalal street, Mumbai 400-001, the dilhiStock association ltd west plaza, indra Gandhi stadium, indraprastha estate , new delhi

110002 & stock exchange ahmedabad kamdhenu complex, apposite shajananad college

panjarapole, ahmedabad 380015 & the company has paid the listing fee to each of

exchanges.



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Auditors:

The auditors, m/s lovelock & lewes , retire at the conclusion of the ensuing general meeting

& being eligible under section 224 (1b) of the companies act 1956 offer themselves for

reappointment



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AUDITORS REPORT

To,

The board of directors,

Raj oil mills limited,

224-230, bellasis road,

Mumbai-400 008

Dear sirs,

Sub : Proposed initial public issue of RAJ OIL MILLS LIMITED.

(A) Financial information as per audited financial statement

1) We have examined the annexed restated financial information if raj oil mills ltd.,

Mumbai for the purpose of discloser in the offer document being issued by the company

in connection with the public the issue). The restated financial information is based on

the audited A/C adopted by the board of directors and audited for period ended 31st

January 2009 and the five financial years ended 31st December 2008, 31st December

2007, 31st December 2006, 31st December 2005, 31st December 2004. These restated

financial information have been extracted from the financial statements for the year

ended 31stdecember 2005 and 31st December 2004 audited by M/s S.H. Bhatiya &

association, C.A, Mumbai being the auditors of the company for those years & for the

period ended 31st January2009 & for financial year ended 31stdecember 2008, 31st

December 2007 and 31st December 2006, have been audited by us. These financial



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statements are the responsibilities of the companys management. our responsibility is to

express an opinion on these accounts based on the audit.

2) In accordance with the requirements of :-

a). paragraph B (1) of part 2 of schedule 2 of the companies act ,1956

b). the S.E.B.I guidelines 2000 and the releted clarifications issued by the sebi as

amended to date

c). the terms of preference with the company dated 9th april2008 requesting us to carry

out work in connection with the offer document as aforesaid.

3) The company has not paid any dividend on equity share

in any of the year /period mentioned above.

(B) Other financial information:-

We have examined the following financial information

releting to the company as approved by the board of the directors for the purpose ofinclusion in the offer document :

1. Statement of debtors

2. Details of loans and advances

3. Statement of secured loans

4. Statement of un secured loan

5. Statement of operating income

6. Statement of other income

7. Details of contingent liabilities

8. Financial ratio



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9. Capitalization statement

10.statement of tax shelters

11.statement of investments

12.transaction with the related parties

(C) In our opinion the above financial information of the company as started in Para A &

B above read with significant accounting policies & adjusted notes appearing in

annexure 5 to this report, after making adjustments / restatements and re-grouping as

considered appropriate, has been prepred in accordance with part 2 of schedule 2 of

the act and the SEBI guidelines.

This report is intended solely for your information and for inclusion in the offer

document in connection with the initial public offer of the company and is not to be

used, referred to or distributed for any other purpose without our prior written

consent.

Yours faithfully,

For M.K. Gohel & Associates

Chartered Accountant

Sd/-

Mukesh K. Gohel



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Proprietor

Membership No:-038823

Place:- Mumbai

Date :-5th june 2009



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INTRODUCTION

Meaning of Ratio

A ratio is one number expressed in terms of another. It is a mathematical

yardstick that measures the relationship between two figures.

Classification of Accounting Ratio.

The ratio can be classified as under.

(A) Traditional Classification.

(B) Functional Classification



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(A) Traditional Classification

The ratios are grouped in three categories.

(1) Revenue Statement Ratio.

(2) Balance Sheet Ratio.

(3) Composite Ratio.

(B) Functional Classification

The ratios are grouped in four categories.

(1) Liquidity Ratio

(2) Profitability Ratio

(3) Leverage Ratio

(4) Activity Ratio

(1) Liquidity Ratio.

Current Ratio.

Liquid Ratio.

Acid-test Ratio.



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(2) Profitability Ratio.

Gross Profit Ratio.

Net Profit Ratio.

Operating Ratio.

Return on Total Assets.

Return on Capital Employed.

Return on Shareholders Equity.

Return on Equity share Capital.

Earning per Share.

Dividend per Share.

Dividend Pay-out Ratio.

(3) Leverage Ratio

Proprietary Ratio.

Debt Ratio.

Gearing Ratio.

Fixed capital-Fixed assets ratio.

Coverage Ratio.

(4) Activity Ratio



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Stock Turn-over Ratio.

Debtor Ratio.

Current Assets Turn-over.

Total Assets Turn-over

CALCULITION

[1] Current Ratio

Introduction:-

The current ratio is the ratio of current assest & current liabilities. The

ideal ratio of current ratio is 2:1.it is not desirable that the assest is more than double of

liabilities &not also less than liabilities.assets must be double than liabilities.

Current Ratio =

Current

Assets

Current

Liability Ratio

2009 13403 931.78 14.38:1

2008 13110.7 1274.32 10.29:1

2007 7280.7 1762.3 4.13:1



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Interpritation :-

Current Ratio indicates the working capital position .There has

been considerable deterioration in the current ratio . Here the current assets have been increased

to almost 20% to 40%. Company should try to maintain this ratio.

[2] Liquid Ratio

Introduction:-

Ratio showing the ability of a firm to pay its current liabilities as and

when they mature are liquidity ratio.

Liquid Ratio =

Year Liquid Assets Stock Liquid Liabilities B.o.d. Ratio

2009 12060.1 1342.86 931.78 - 12.94:1

2008 11773.67 1337.01 1274.32 - 9.24:1

2007 6503.11 777.59 1762.26 - 3.69:1



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Iterprtation :-

The liquid ratio is a better indicator of liquid position of the company. Here

also the liquid assets are increasing at a very fast level. In year,2009 it was 12.94:1.But in 2007

it is 3.69:1. So the company try to maintain this ratio.

[3] Gross Profit Ratio

Introduction:-

It express relationship between gross profit earned to net sale. It is also known

as gross margin.

Gross profit ratio:-

Gross profit = sales cogs

COGS Sales Gross profit Ratio

2009 1701.45 2229.54 528.09 23.69%

2008 24909.05 31775.59 6866.54 21.61%

2007 19463.96 23909.52 4445.56 18.60%



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Interpretation:-

This ratio was satisfactory in the year2009,but not in the 2008 & 2007

because it is increasing at very fast level. The company should try to maintain this ratio.

[4] Net Profit Ratio

Introduction:-

This ratio measures the relation between the net profit & sales of the

firm.The net profit is the profitabity of the firm.As more profit is earn by the so firm the firm

become more stable.

Net Profit ratio=

Year Net profit Sales Ratio2009 240.23 2229.54 10.77%

2008 2961.88 31775.59 9.32%

2007 1815.20 23909.52 7.32%



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Interpretation:-

This ratio shows the relationship between the net profit & sales. The net

profit ratio is declining every year. So it is not so satisfactory company should try to maintain

this ratio.

[5] Operating Ratio

Introduction:-

It is a ratio that shows relationship between cost of goods sold plus

operating exp. to sales. Operating ratio is the ratio of operating activity of the company.

Operating ratio=

Operating exp. = Mfg. exp. + administrative exp. + S & D exp.

Year Op.exp. Mfg. exp. Adm. exp. S & D exp Cogs Sales Ratio

2009 71.35 17.16 21.51 32.68 19463.96 2229.54 90.52%



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2008 1185.26 272.01 365.00 548.25 24909.05 31775.59 82.12%

2007 933.45 152.99 375.11 405.35 20890.64 23909.52 91.27%

Interpretation:-

This ratio shows that the sale of every 100,the op.exp. takes

90.52%,82.12%,91.27%, respectively and remaining price the profit of the company.

[6] Administrative expenses Ratio

Introduction:-

It shows the relationship between Adm.exp. to sales. In this ratio all the

administrative expanses is divided by the net sales & multiply by the hundred.

Administrative expenses=

Year Adm.exp. Net sales Ratio

2009 21.51 2229.54 0.96%

2008 365.00 31775.59 1.15%

2007 375.11 23909.52 1.57%



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Interpretation :-

This ratio shows the adm.exp. done on the executive. This type of

exp. is deacreasing every year in this ratio. The management of the company should try to

maintain this expenses

[7] C.O.G.S Ratio

Introduction:-

It shows the relationship between cogs to sales. Cogs means cost of

goods sold.In this all expenses include which done in favour of producing the goods.

COGS Ratio =

Year Cogs Sales Ratio

2009 1701.45 2229.54 76.31%

2008 24909.05 31775.59 78.39%

2007 19463.96 23909.52 81.41%



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Interpretation:-

This ratio is not so satisfactory. The ratio is decreasing in the year 2008

but due to companys less efforts.It will be decrease in the year 2009 so the company should try

to increase this ratio.

[8] Return of capital employed

Introduction:-

Capital employed means the long term funds employed in business

supplied by the creditors and owner both.

Capital employed =share capital+ reserves& surplus+ long terms loans fictitious assets

R.O.C.E= x100

Year PBIT Eq. share

capital

R&s Long term

loan

Capital

employed

Ratio

2009 365.95 2651.01 7622.67 2388.70 2662.38 2.89%

2008 4529.92 2651.01 7382.43 2119.56 1215.3 37.27%

2007 2840.92 1849.02 2495.80 1150.24 5489.13 51.70%



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Interpretation:-

From the view of point of this ratio. This ratio is decreasing at every

year.The company should try to maintain this level.

[9] Return on share holders fund

Introduction:-



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This ratio indicates how profitability the funds provided by the owner

have been used in business.

Holders fund =Equity share capital+ pref.share capital+ reserve.

ROSF=

Year P.A.T Eq share

capital

R & S Shareholder

s fund

Ratio

2009 240.23 2651.01 7622.67 10273.44 2.34%

2008 2961.88 2651.01 7382.43 10033.44 29.52%

2007 1815.20 1849.02 2495.80 4338.89 41.84%



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Interpretation:-

This ratio indicates how profitability the funds provided by the owner

have been used in business .If the ratio is high the profitability is also high. So this ratio is not

satisfactory.

[10] Return on equity shareholders fund

Introduction:-

The equity shareholders funds include not only the paid up equity share

capital but also all reserves and net profit available to equity shareholders.

Return on equity shareholders fund = x100

Equity share holder fund = Equity share capital + R & S

Year PAT Pref. div. Eq sharecapital

R & S Equity shareholders fund

Ratio

2009 240.23 - 2651.01 7622.67 10273.68 2.34%

2008 2961.88 - 2651.01 7382.43 10033.44 29.52%

2007 1815.20 - 1849.02 2495.80 4338.89 41.84%



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Interpretation:-

This ratio was much satisfactory. It was deacreasing every year.

So the profit is less available to the shareholders because it was decreasing from 41.84 to

29.52% to 2.34 in the year 2007, 2008, & 2009 respectively.

[11] Return on Equity Share capital

Introduction:-

In this ratio net profit less pref. dividend is compared with only paid up

equity sharecapital.



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Return on equity share capital =

Year Net profit(PAT) Pre.dividend Eq.sharecapital Ratio

2009 240.23 - 2651.01 9.06%

2008 2961.88 - 2651.01 111.73 %

2007 1815.20 - 1849.02 98.17 %



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Interpretation:-

This ratio has an improvement in the year 2008. It will be not so

satisfactory in the year 2009 the company must have to try to increase this level . So that a

company can earn more profit .

[12] Return on Total Assets



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Introduction:-

The return on total assets implies how the fund supplied by both owners

and creditors are utilized in business.

Return on Total Assets =

Year PAT Total Assets Ratio

2009 240.23 16536.3 1.45 %2008 2961.88 16247.6 18.23 %

2007 1815.20 9358.78 19.40 %



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Interpretation:-

There has been a heavy improvement in this ratio compared

to the previous year . So the company should have to try to maintain this ratio .

[13] Earning per share

Introduction:-



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It shows the profit available to equity shareholders on per share basis.

Earning per share =

Year PAT Pre. Div. No. of shares Ratio

2009 240.23 - 22.73 10.57:1

2008 2961.88 - 249.52 11.87:1

2009 1815.20 - 173.37 10.47:1

Interpretation:-

The earning per share increase during the year 2008 . But , it is further

decline in 2009 . However , normally an earning per share of Rs 10.47 may be considered to

be satisfactor

[14] Debt equity Ratio

Introduction:-



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This ratio establishes relationship between the outside total

liability and owners funds .

Debt equity Ratio =

Share holders fund = Equity share capital + pref. share capital + R & S

Year Total liabilities Share holders funds Ratio

2009 2489.92 10273.68 0.24:1

2008 2224.62 10033.44 0.22:1

2007 2110.46 4338.89 0.49:1

Interpretation:-

This ratio is much satisfactory. There has been an increment in

every year . So, that there will be increase in the profit of shareholders . So the company should

have to try to maintain this ratio.

[15] Proprietary Ratio

Introduction:-



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The ratio shows the proportion of proprietors funds to the total assets

employed in the business .

Proprietary Ratio =

Proprietary fund = Share holders fund

Year Proprietors fund Total Assets Ratio

2009 10273.68 16536.3 62.13 %

2008 10033.44 16247.6 61.75 %

2007 4338.89 9358.78 46.36 %

Interpretation:-

The ratio indicates the proportion of funds contributed by the

proprietors . The higher the ratio, the stronger is the financial position. In this ratio , all the ratio

are higher . The company have to try to maintain this ratio.

(16) Long term to Fixed Assets:-

Introduction:-



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This ratio shows the relationship between fixed capital and fixed

assets.

Long term fixed assets =

Year Fixed capital Fixed assets Ratio

2008 12662.38 3130.84 4.04

2008 12153 3134.42 3.88

2007 5489.13 2057.58 2.67

Interpretation:-

The ratio for this company during the all the three year. It will not be

satisfactory so the company will have to try to increase this ratio. Otherwise the company will put in

trouble.

(17) Stock Turn Over Ratio



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Introduction:-

It Shows The number of times the average stock is turned over

during the year.

Stock turnover =

Average stock=

Year COGS Opening stock Closing stock Average stock Ratio

2009 1701.45 1337.01 1342.86 1339.94 1.27Times

2008 24909.05 777.59 1337.01 1057.3 23.56 Times

2007 19463.96 503.95 777.59 640.77 30.38 Times



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Interpretation:-

This ratio indicates the speed with the stock is turn over in the year 2007.

It is not satisfactory in the year 2007 and 2008 . It will satisfactory in the year 2009 . The

company should have to try to maintain this ratio .

(18) Debtors ratio



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Introduction:-

The ratio shows the number of days taken to collect the dues of credit sales.

Debtors ratio =

Year Debtors B.R Credit sales Ratio

2009 8958.19 - 2229.54 1446 Days

2008 8509.24 - 31765.50 98 Days

2007 5345.39 - 21738.54 90 Days



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Interpretation:-

The debtors ratio shows the efficiency of collection department. It

is easy to give judgment on the above days. This ratio is more unsatisfactory. The debts showed becollect within the 30 days.

(19) Fixed assets turn over ratio



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Introduction:-

In this ratio total fixed assets are compared to sales.

Fixed assets turn over =

Year Sales Fixed assets Ratio

2009 2229.54 3130.84 0.71

2008 31775.59 3134.42 10.13

2007 23909.52 2075.58 11.52



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Interpretation:-

This ratio suggest unsatisfactory situation. The investment in fixed

assets decreasing in the year 2008. This is much affect to this ratio.

(20) Current assets turn over ratio



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Introduction:-

In this ratio current assets are compared to sales.

Current assets turnover =

Year Sales CurrentAssets Ratio

2009 2229.54 13402.96 0.17

2008 31775.59 13110.68 2.42

2007 23909.52 7280.70 3.28



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Interpretation:-

This ratio suggest unsatisfactory situation theinvestment in the current assets is decreasing in the year 2009. But the sales is also decline.

So this ratio is not so satisfactory.



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(21) Total assets turnover ratio

Introduction:-

In this ratio total assets are compared with the sales.

Total assets turn over ratio =

Year Sales Total assets Ratio

2009 2229.54 16536.3 0.13

2008 31775.59 16247.6 1.96

2007 23909.52 9358.78 2.55



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Interpretation:-

This ratio is also not so satisfactory . Because in this ratio both total

assets and sales are decresing but the ratio is high .So the company should try to increase bothfactors .

Information of all ratios



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S.R. No. Particular Ratio 2009 2008 2007

1 Current ratio 14.38:1 10.28:1 4.13:1

2 Liquid ratio 12.94:1 9.24:1 3.69:1

3 Gross profit ratio 23.69% 21.61% 18.60%

4 Net profit ratio 10.77 % 9.32% 7.59%

5 Operating ratio 90.52 % 82.12% 91.27%

6 Administrative expanse ratio 0.96 % 1.15% 1.57%

7 C.O.G.S. ratio 76.31% 78.39% 81.41%

8 Return on capital employed 2.89 % 37.27% 51.70%

9 Return on shareholders fund 2.34 % 29.52% 41.84%

10 Return on eq. shareholders fund 2.34 % 29.52% 41.84%

11 Return on eq. share capital 9.06 % 111.73% 98.17%

12 Return on total assets 1.45 % 18.23% 19.40%

13 Earning per share 10.57 11.87 10.57

14 Debt eq. ratio 0.24 0.22 0.49

15 Proprietory ratio 62.13 % 61.75% 46.36%

16 Long term funds to fix assets 4.04 3.88 2.67

17 Stock turnover ratio 1.27 times 23.56 times 30.38 times

18 Debtor ratio 1446 days 98 days 90 days

19 Fixed assets turnover 0.71 10.13 11.52

20 Current assets turnover 0.17 2.42 3.28

21 Total assets turnover 0.13 1.96 2.55



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COMMON SIZE BALANCE SHEET

Particular

ASSETS

2009 % 2008 % 2007 %

(A)Fixed assets

Gross fixed assets 2320.57 14.03 2316.15 14.26 2100.04 22.44

Less: accumulated 363.14 2.20 354.36 2.18 253.02 2.70



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depreciation

Net fixed assets 1957.13 11.84 1961.78 12.07 1847.02 19.74

After revolution

reserves

1957.13 11.84 1961.78 12.07 1847.02 19.74

Capital work inprogress

1173.71 7.10 1172.63 7.22 228.56 2.44

Total fixed assets 1330.84 18.93 3134.42 19.29 2075.58 22.18

(B) INVESTMENT 2.50 0.015 2.50 0.015 2.50 0.027

(C) CURRENT

ASSETS, LOANS

AND ADVANCES

Sundry debtors 8958.19 54.17 8509.24 52.37 5345.39 57.12Cash & bank balance 141.71 0.86 135.12 0.83 243.78 2.60

Loans & advances 2960.20 17.90 3129.31 19.26 913.95 9.77

Inventories 1342.86 8.12 1337.01 8.23 777.59 8.31

Total (C) 13402.96 81.05 13110.68 80.69 7280.70 77.80

Total

(A+B+C)

16536.3 100 16247.6 100 9358.78 100

Liabilities

Minority interest 2388.70 14.45 2119.56 13.05 1150.24 12.29

Secured loans 101.22 0.61 105.06 0.65 960.22 10.26

Unsecured loans 191.33 1.16 190.16 1.17 168.68 1.80

Differed tax liability 931.78 5.63 1274.32 7.84 1762.26 18.83

Current liability 2649.60 16.02 2525.05 15.54 978.50 10.46

Provision

Total (D) 6262.62 37.87 6214.15 38.25 5019.90 53.64

Represent by

Eq. share capital 2651.01 16.03 2651.01 16.32 1849.02 19.76Reserve & surplus 7622.67 46.10 7382.43 45.44 2495.80 26.67

TOTAL 10273.68 62.13 10033.44 61.75 4344.82 46.43

Less: misscellanourexpenditure

- - 5.93 0.063

10273.68 62.13 10033.44 61.75 4338.89 46.36



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Total 16536.3 100 16247.6 100 9358.78 100

Interpretation:-

The common size statement gives useful proportion of each component to the

total.

Common size statement are found to be very useful for comparison of two business enterprises at a

certain date.

In the common size balance sheet relation of each item to total assets is computed .

The value of total assets and total liability is taken as 100%.

In the year 2007,2008,2009 the current assets is, 77.80%, 80.69%, 81.05%.

In the year 2007,2008,2009 the current liability is 10.46%, 15.54%, 16.02% of total liabilityrespectively.

Thus the common size balance sheet gives the compretive data to the each year.

COMMON SIZE P&L A/C

ERTICULARS 2007 % 2008 % 2009 %

come

les operating income

anufactured goods 2229.54 100 31765.50 100 21738.54 100

aded goods - 10.09 0.032 2170.98 9.99



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her income - 7.67 0.024 8.29 0.039

ventory 19.12 0.86 339.86 1.07 74.20 0.34

tal income 2248.66 100.86 32123.12 101.13 23992.11 110.37

xpenditure

w material consume 1703.42 76.40 24976.90 78.63 19385.17 89.17

anufacturing exp. 17.16 0.77 272.01 0.86 152.99 0.70

ovision for employee 57.98 2.60 731.84 2.30 460.65 2.12

dministrative exp. 21.51 0.96 365.00 1.15 375.11 1.73

lling & distributionp.

32.68 1.47 548.25 1.73 405.35 1.86

nance cost 41.18 1.85 596.21 1.88 292.77 1.35

precation 8.78 0.39 102.99 0.32 79.42 0.37

tal expenditure 1882.71 84.44 27593.20 86.87 21151.47 97.30

ofit before tax &

tra ordinary item

365.95 16.41 4529.92 14.26 2840.65 13.70

dd & less : provision

r tax

urrent tax (123.22) (5.53) (1530.56) (4.82) (958.00) (4.41)

inge benefit tax (1.25) (0.060) (15.00) (0.05) (0.50) (0.0023)

ealth tax (0.08) (0.004) (1.00) (0.003) (20.00) (0.092)

ffered tax assets (1.17) (0.05) (21.48) (0.068) (46.95) (0.22)

ofit after tax 240.23 10.77 2961.88 9.32 1815.20 8.35

lance brought forod from previous year

4902.64 219.90 1940.77 6.11 948.57 4.36

erest minority - - (823.00) (3.79)

lance carried forward

restated

5142.88 230.67 4902.64 15.43 1940.77 8.93

Interpretation:-

As we known that the common size statement gives useful properties of each component to the

total.



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It is the common size of p&l statement. The sales are considered as 100%.

All the individual items of expenses and incomes are shown as percentage of sales.

The above profit & loss a/c shows as percentage of each expenses and income to the total

sells.

We can see that the sales of all the three year. Considered as 100% and comparing to

sales. The total income is 100.86% for 2009, 101.13 for 2008, and 110.37% for 2007.

The total expenditure are 84.44 for 2009, 86.87 for 2008, and 97.30 for 2007 are given.

Thus, the percentage of income is more than the sales and expenditure is less than the

sales. It gives the idea of the companys profit.

Thus, the common size of profit & loss A/C gives the percentage of income &

expenditure to the sales.



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Cash flow statement



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All companies issuing their accounts include a cash inflow statement in their

reports. According to this standard, the cash inflow and outflow are to be shown under three

headings :

1) Cash flow from operating activities.

2) Cash flow from investing activities.

3) Cash flow from financing activities

Calculation of cash profit from P & L A/C and other

information



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Particular 2009 2008 2007

(A) CASH FLOW FROM OPERATING

ACTIVITIES

Net profit before tax & extra ordinary

items

365.95 4529.92 2840.65

Adjustment for

Add: depreciation 8.78 102.99 79.42

Loss on sale of assets - (1.66) 60.34

Preliminary expenses written off - - 0.17

Pre operative expenses written off - - 0.02

Deferred revenue expenses written off - 5.93 38.99

Interest (net) 32.95 540.64 267.91

Operating profit before working capital

changes

407.68 5177.82 3287.50

Adjustment for working capital

changes

Income-tax(paid,)/refund (100.00) (526.62) (370.25)

(increase) / decrease in trade & other

receivable

(448.96) (3163.86) (3068.58)

(Increase )/ decrease in advance to

suppliers / creditors

- - -

(Increase )/ decrease in other current

assets

- (1.52) 155.21

Increase/ (decrease) in trade payable (342.54) (487.94) 286.15

Increase/ (decrease) in loans & advances 269.11 1687.22 (766.56)

Increase/ (decrease) in inventories (5.85) (559.43) (273.63)

Net cash used / generated for / from

operation

(220.56) (1248.76) (750.18)



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(B) CASH FLOW FROM INVENSTING

ACTIVITIES

Purchase of fixed assets (5.20) (1170.04) (975.69)

Investment made - - 15.00

Sales/discarding of fixed assets - 9.87 55.19

Net cash used in investing activities (5.20) (1160.17) (905.50)

(C) CASH FLOW FROM FINANCING

ACTIVITIES

Proceeds from long term borrowings 74.09 (64.61) 493.58

Proceeds from short term borrowings 191.21 178.77 828.86

Interest paid (32.95) (540.64) (267.91)

Proceeds from issue of equity shares - 801.99 145.02

Share premium received on issue of

equity shares

- 1924.76 555.03

Share application money received pending

allotment

- - (11.00)

Net cash generated from other sources 232.35 2300.27 1743.58

Net increase / (decrease) in cash & cash

equivalent

6.59 (108.66) 87.90

cash & cash equivalent-opening balance 135.12 243.78 155.87

cash & cash equivalent- closing balance 141.71 135.12 243.78

* Summary 2009 2008 2007

(A) CASH FLOW FROM OPERATING

ACTIVITIES

(220.56) (1248.76) (750.18)

(B) CASH FLOW FROM INVENSTING

ACTIVITIES

(5.20) (1160.17) (905.50)

(C) CASH FLOW FROM FINANCING

ACTIVITIES

232.35 2300.27 1743.58



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Net increase /(decrease) in cash & cash

equivalent

6.59 (108.66) 87.90

Interpretation:-

To know the cash profit we have prepare the cash flow statement. We have to add the three

adjustments for operating activities, investing activities and financing activities. In the end we

will get the cash and bank balance of current years.

In the first part of statement operating activities which indicates the extent to

which the operations of the raj oil mills have generated sufficient cash flows.

In operating activities the depreciations include in the profit after tax because it

is non-cash expense. Hear provision for the corporate tax and other taxes also



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been included from that the appropriate liabilities of tax are easily can be

estimated.

Operating profit before working capital changes is 407.68 and raj oils gets

refund of direct taxes which will be less than the previous year.

Trade and other payables was increase from the previous year about 15%

increases. And trade and other payables were also increases very sharply about

40% high from the previous year.

In the area of the investment company made tremendous achievement. all the

investments in tangible or intangible were increase rapidly.

After all the adjustments in the end of the year the cash balance in the business is

Rs. 141.71 . which is very high then the previous year.

So we can say that cash and bank balance of current year of the company is three

times than the previous year.

Result of Operation

(1) Profit of three years

Particular 2007 2008 2009

Gross profit 282.58 6866.54 3018.88



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Net profit 240.23 2961.88 1815.20

EBIT 365.95 4529.92 2840.65

EAT 240.23 2961.88 1815.20

(2) Importance of cash profit

Cash profit is important for the company because of the life of the

company. If the cash profit increase the capacity of the company become very strong in themarket. And the company is moving easily in the field of the production. The main thing is cash

profit is a legal main requirement for any company.

Conclusion

The Raj Oil Mill Ltd is one of the leading companies. The analysis of the

annual report of the last three year of the company reveals that the company is

improving,working efficiency and taking steps of increasing its turnover.



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The analysis reveals that the total income of the company is increasing and its

expenses are decreasing. Hence it can be concluded that the company is performing very

efficiently. It has highly qualified managerial personnel. The analysis also reveals that the

company utilizes its raised sources very efficiently to earn profit and achieve its objectives.

As most of the ratios are show satisfactory situation. So it is indicates that the

company has ability to indicate its profit. Its performance is very good and the short term

financial position of the company is very sound.

Overall it can be concluded that the company is performing in a good way and

therefore it has future prospectus in Indian and international market.

Bibliography

ACCOUNTANCY INFORMATION

B.S. SHAH PRAKASHAN



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R.L.GUPTA &VK.GUPTA

FINANCIAL MANAGEMENT KHAN & JAIN

B.S. SHAH PRAKASHAN

www.rajoilmillsltd.com

www.google.com.in

http://www.rajoilmillsltd.com/http://www.google.com.in/http://www.rajoilmillsltd.com/http://www.google.com.in/


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Balance-sheet

P & L A/C

Cash flow statement

BALANCE-SHEET



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CASH FLOW STATEMENT



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raj oil final

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