A Study on Analysis of Financial Statements of Polyhydron Pvt. Ltd

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eople’s Education Society and Trust’s

Belgaum Institute of Management Studies,

MBA, Belgaum.

(Approved by AICTE & Affiliated to Karnatak University Dharwad)

“A STUDY ON ANALYSIS OF FINANCIAL STATEMENTS OF POLYHYDRON

PVT. LTD AND SUGGEST LONG TERM PLANNING”.

A Report Submitted in Partial ulfillment of t!e

Re"uirement for t!e A#ard of

MASTER’S DEGREE IN BUSINESS ADMINISTRATION

2006-2007

Submitted by

Anuja R. MadhumathExam No: MBA05006004

Institute Guide: Company Guide:

Mr. Vinay Bangare Miss. e!as"#ini $. %undre

Finance Faculty Management TraineePEST’s BIMS, Polyhydron Pvt. Ltd.

MBA, BELGAUM Macch,

Bl!aum.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM &

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!e"#le’$ E%ucati"n S"ciety an% Tru$t’$

Belgaum In$titute "& Management Stu%ie$' MBA

A%acent t" UD !G *enter' B+utraman+atti' Belgaum.

(Recognized by AICTE, New Delhi & Afliated to Karnatak ni!er"ityDharwad#$

T+i$ i$ t" certi&y t+at Mi$$ Anua R Ma%+umat+ UD

E,aminati"n N" MBA-.--/--0 "& MBA 0t+ Seme$ter +a$ $ucce$$&ully

c"m#lete% +i$ Ma"r *"ncurrent !r"ect 1--/21--3 &"r t+e #eri"% "& /-

%ay$ &r"m 1n%

Decem4er 1--/ t" 56$t

Decem4er 1--/ an% 6/ 7ee8$ (1 %ay$

in a 7ee8 &r"m 9an -3 t" A#ril -3)

'ro!e(t Guide )ire(tor

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM

*erti&icate

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A*NO:LEDGEMENT

T+e c"m#leti"n an% %ra&ting i$ a $"litary ta$8 4ut "ne 7+ic+ +a$ 4een

ma%e $m""t+er 7it+ t+e +el# "& many ;ere I ta8e t+i$ "##"rtunity t" t+an8

t+"$e 7+" +a<e ma%e a <ital c"ntri4uti"n in $+a#ing t+i$ $tu%y

I 7"ul% li8e t" e,#re$$ my #r"&"un% gratuity t" Mr Sure$+ ;un%re

(*+airman) an% Mi$$ Tea$+7ini S ;un%re (Management Trainee) &"r gi<ing

me an "##"rtunity t" ta8e my Ma"r *"ncurrent !r"ect at !"ly+y%r"n !<t Lt%'

Macc+e' Belgaum

Any acc"m#li$+ment re=uire$ t+e e&&"rt$ "& many #e"#le I am in%e4te%

t" all t+e Em#l"yee$ "& !"ly+y%r"n !<t Lt% 7+" e,ten%e% t+eir +el# an%

c""#erati"n in c"llecting %ata &"r my #r"ect

Regar%le$$ "& t+e $"urce I 7i$+ t" e,#re$$ my gratitu%e t" t+"$e 7+" +a<e

c"ntri4ute% t" my #r"ect' e<en t+"ug+ an"nym"u$ly

I e,ten% my t+an8$ t" "ur Direct"r' Dr S R B+aramanai8ar' an% Mr

>inay B+angare &"r #r"<i%ing me an "##"rtunity t" 7"r8 &"r !"ly+y%r"n !<t

Lt%' Macc+e' Belgaum

I 7"ul% al$" li8e t" t+an8 my #arent an% &rien%$ &"r t+eir in&inite l"<e'

<alua4le gui%ance' $u##"rt an% +el# %uring my #r"ect T+i$ #r"ect 7"ul%n’t

+a<e $een t+e lig+t "& t+e %ay' i& it 7a$n’t &"r t+e c""#erati"n "& all t+e$e #e"#le

!lace? Belgaum Ma+en%ra8umar S "n8ane

Date?

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM +

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*"ntent$

Sl N" Title$ !age N"

I *+a#ter 6

Introdu(tion

,iterature -eie#

$tatement o/ t"e 'ro1em

'urpose o/ t"e $tudy

$(ope o/ t"e study

2!e(ties o/ t"e $tudy

6

3

*6

*

*

*

II *+a#ter 1

2rganiation 'ro/i1e

2rganiation C"art

-esear(" )esign

)ata Co11e(tion Met"od

Measuring too1s

+0

46

4

44

III *+a#ter 5

-esu1ts 7 dis(ussion #it" C"arts 7 grap"s

-e(ommendations and Con(1usion

50

3&

I> *+a#ter 0

• Appendix

•

Ba1an(e $"eets

• Bi1iograp"y

34

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BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM 4

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*;A!TER @ 6

Intr"%ucti"n

Literature Re<ie7

Statement "& t+e !r"4lem

!ur#"$e "& t+e Stu%y

Sc"#e "& t+e $tu%y

O4ecti<e$ "& t+e Stu%y


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6 2 INTRODU*TION?

"is is rie/ summary o/ t"e pro!e(t 8A study on ana1ysis o/ /inan(ia1

statements o/ po1y"ydron pt 1td and suggest 1ong term p1anning9. Be1gaum and to

/ind t"e /inan(ia1 position o/ t"e (ompany. 'o1y"ydron 't. ,td is t"e /1ag s"ip

(ompany o/ 'o1y"ydron Group o/ Industries. 'o1y"ydron is no#n /or its 8Et"i(a1

management9. 'eop1e /rom a11 oer India isit t"e (ompany to intera(t and understand

t"e systems. It "as e(ome a ind o/ 8'i1grimage (entre9 /or t"e (orporate #or1d o/

India.

"e study #as (ondu(ted #it" an o!e(tie o/ /inding out t"e /inan(ia1

standing and its manageria1 e//i(ien(y in generating ade;uate operating pro/its on t"e

/irm<s assets and to study "o# t"e /irm /inan(es its assets.

"e study o/ t"e /inan(ia1 position o/ a (ompany #as a((omp1is"ed y arious

too1s and te("ni;ues 1ie Cas" /1o# and /und /1o# ana1ysis= >inan(ia1 p1anning #it"

/inan(ia1 ratios to support t"e aoe #it" t"e appropriate grap"s and ta1es.

Title "& t+e Stu%y?

8A study on ana1ysis o/ /inan(ia1 statements o/ po1y"ydron pt 1td and suggest

1ong term p1anning9.

Statement "& #r"4lem?

>inan(ia1 ana1ysis eing an integra1 part o/ oera11 (orporate management and

it is one o/ t"e po#er/u1 too1s o/ /inan(ia1 per/orman(e ana1ysis. "e ana1ysis o/

/inan(ia1 statement o/ '', is done in order to no# t"e (ompany<s /inan(ia1 position

o/ t"e year.

Management !r"4lem:


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o gauge t"e ade;ua(y o/ returns?(as" /1o#s #it" respe(t to inestment=

1i;uidity and gro#t" and as(ertain t"e opportunity /or expansion

Re$earc+ !r"4lem



O4ecti<e$?

&. o ana1ysis t"e /irm<s /inan(ia1 statements

*. Is management generating ade;uate operating pro/it on t"e /irm<s assets.

+. o no# "o# is t"e /irm /inan(ing its assets

4. Are t"e o#ners getting ade;uate returns@

5. o determine t"e progress o/ t"e (ompany.

Rec"mmen%ati"n$ an% *"nclu$i"n

Sugge$ti"n$

"e /irm is per/orming #e11 and its sa1es are in(reasing oer t"e years. But

sti11 t"e /o11o#ing is t"e suggestion i/ (onsidered #i11 proe to e ene/i(ia1 to t"e

(ompany.

• "ere is "uge inestment in t"e (urrent assets o/ t"e (on(ern.

• "e (urrent ratio o/ t"e /irm is ery mu(" "ig"er t"an t"e norma1 standards.

• "e /irm s"ou1d not unne(essari1y 1o( ex(ess money in t"e (urrent assets

t"an norma1 re;uirement o/ t"e usiness.

• "e (ost o/ goods so1d "ad in(reased (ontinuous1y /rom *004 to *005. "e

/irm s"ou1d gie attention to maximie t"e sa1e and minimie t"e dire(t (osts.

• "e (ompany (an inest in mutua1 /unds= #"i(" is more promising /or "ig"er

yie1d.




• 'o1y"ydron "as net #oring (apita1 more t"an re;uirements an un"ea1t"y sign

o/ pro/itai1ity o/ t"e (ompany.

nder t"e 1ig"t o/ t"e in/eren(es dra#n /rom t"e ana1ysis= it is no exaggeration

to (on(1ude #it" in/ormation t"at t"e oer a11 t"e /inan(ia1 ana1ysis is /air and

reasona1y good and t"at promising /uture a#aits t"e (ompany.

*"nclu$i"n

Earning position o/ t"e (ompany is (ontinuous1y and positie1y in(reasing.

"e gross= operating and net pro/it margins are /aora1e. It maes uses some

apanese te("ni;ues= 1ie anan (ards= net #or system= !it et(. to manage its

inentories. Various dis(ount s("emes to (ontro1 and manage t"e a((ounts re(eia1e.

"e (ompany "as to eep an eye on its 1i;uidity position. As t"e 1i;uidity

position s"o#s /unds are 1ying id1e= sin(e t"ey are id1e= t"ey are not eing proper1y

uti1ied. "us pro/itai1ity o/ t"e in(ome may e a//e(ted. $o "ig" a 1i;uidity position

s"ou1d e aoided in order to maintain and improe t"e pro/itai1ity.




1 2 LITERATURE RE>IE:?

Financial analy$i$

>inan(ia1 ana1ysis is t"e se1e(tion= ea1uation and interpretation o/ /inan(ia1

data= a1ong #it" ot"er pertinent in/ormation= to assist in inestment and /inan(ia1

de(ision maing. >inan(ia1 ana1ysis may e used interna11y to ea1uate issues su(" as

emp1oyee per/orman(e= t"e e//i(ien(y o/ operations= and (redit po1i(ies= and

externa11y to ea1uate potentia1 inestments and t"e (redit#ort"iness o/ orro#ers=

among ot"er t"ings.

"e ana1yst dra#s t"e /inan(ia1 data needed in /inan(ia1 ana1ysis /rom many

sour(es. "e primary sour(e is t"e data proided y t"e /irm itse1/ in its annua1 report

and re;uired dis(1osures. "e annua1 report (omprises t"e in(ome statements= t"e

a1an(e s"eet= and t"e statement o/ (as" /1o#s. Certain usinesses are re;uired y

se(urities 1a# to dis(1ose additiona1 in/ormation.

"e /inan(ia1 ana1yst must se1e(t t"e pertinent in/ormation= ana1ye it= and

interpret t"e ana1ysis= ena1ing !udgments on t"e (urrent and /uture /inan(ia1 (ondition

and operating per/orman(e o/ t"e /irm. In t"is reading= #e introdu(e you to /inan(ia1

ratios t"e too1 o/ /inan(ia1 ana1ysis. In /inan(ia1 ratio ana1ysis #e se1e(t t"e

re1eant in/ormation primari1y t"e /inan(ia1 statement data and ea1uate it. De

s"o# "o# to in(orporate maret data and e(onomi( data in t"e ana1ysis and

interpretation o/ /inan(ia1 ratios and #e s"o# "o# to interpret /inan(ia1 ratio ana1ysis=

Financial $tatement$

"e /inan(ia1 statements are t"e end produ(t o/ t"e /inan(ia1 a((ounting

pro(ess. "e /inan(ia1 statements are not"ing ut t"e /inan(ia1 in/ormation presented

in (on(ise and (apsu1e /orm= and t"e /inan(ia1 in/ormation is t"e in/ormation re1ating


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to t"e /inan(ia1 position o/ any /irm. "ere/ore t"e /inan(ia1 statements are t"e

depi(tion o/ t"e /inan(ia1 position o/ /irm.

"e asi( sour(e #"i(" proides t"e /inan(ia1 in/ormation is t"e annua1 report

o/ t"e (ompany= #"i(" is presented y t"e (ompany to its s"are"o1ders at t"e annua1

genera1 meeting. "is annua1 report (ontains t"e ("airman<s report= t"e a1an(e s"eet=

t"e in(ome statement = t"e auditors report toget"er #it" numer o/ s("edu1es=

annexure et(. Eery /irm prepares t"e /o11o#ing /inan(ia1 statement.

&. "e a1an(e s"eet

*. "e in(ome statement

Balance $+eet

"e a1an(e s"eet is regarded as t"e most signi/i(ant and asi( /inan(ia1

statement o/ any /irm. "e a1an(e s"eet is prepared y a /irm to present a summary

o/ /inan(ia1 position at a gien point o/ time= usua11y at t"e end o/ a /inan(ia1 year. It

s"o#s t"e state o/ a//airs o/ t"e /irm and t"e (ontriution o/ t"e o#ners o/ t"e /irm.

"e tota1 a1ue o/ t"e assets must e e;ua1 to t"e tota1 (1aims against t"e /irm and t"is

(an e stated as

T"tal a$$et$ tota1 (1aims Fdet s"are"o1dersH

1iai1ities s"are"o1ders e;uity

"e a1an(e s"eet in(1udes: Assets and ,iai1ities

A$$et$?

Assets are t"e monetary a1ue o/ t"e resour(es t"at o#ned y t"e (on(ern at a

measura1e (ost. A resour(e is a1ua1e i/ it is in /orm o/ t"e (as" or (onerti1e into

(as" or expe(ted to ene/it in t"e /uture operation o/ t"e usiness= assets in(1udes aH

p"ysi(a1 resour(es 1ie 1and= ma("inery= p1ant= ui1ding= sto(s et(. BH non p"ysi(a1

resour(es 1ie (as"= se(urities= a((ounts re(eia1es et(.H Intangi1e resour(es 1ie

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM &0

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good#i11= trademar and dH /uture ene/it 1ie expenses paid in adan(e. $ome time

some /i(titious assets a1so s"o# 1ie as in(orporation (ost o/ t"e (ompany dis(ount on

issue o/ deentures et(.

• >ixed assets

• Current assets

Fi,e% a$$et$

>ixed assets are "e1d in usiness /or use not /or sa1e. "ese assets proide

1ongterm ene/its to t"e (on(ern. >ixed assets #i11 e "ig"er in manu/a(turing

(on(ern. "e /ixed assets ino1es tangi1e assets in(1udes 1and= ui1ding=

ma("inery= e;uipment= /urniture= /ixtures et(. "ese assets are s"o#n t"e a1an(e

s"eet dedu(ting t"e depre(iation t"ere on.

a) Intangi4le &i,e% a$$et$? "ese assets in(1ude t"e patents= (opyrig"t=

trademars= trade name good#i11 et(.

4) L"ng2term in<e$tment? "ese assets represent t"e /irm<s 1ong term

inestments 1ie inestments in s"are= inestments in deenture and onds o/

ot"er /irms or goernment odies.

c) Ot+er n"n current a$$et$? "ese assets are t"ose #"i(" represent t"e de/erred

("arges et(.

%) *urrent a$$et$: Current assets (onsist o/ (as" and ot"er sour(es o/ (as" #"i("

get (onerted into (as" during t"e period o/ operating (y(1e o/ t"e /irm. "ese

assets are o#ned /or a s"ort period o/ time. "e ot"er name o/ t"e (urrent

assets in(1udes (as"= detors= i11s re(eia1es= sto( o/ #or in progress= an

a1an(e= adan(e payment o/ expenses 1ie taxes and insuran(e= 1oan and

adan(es to (ustomers and emp1oyees.

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*H Lia4ilitie$

,iai1ities are t"e o1igations o/ t"e (on(ern t"at is to pay to t"e outsiders.

Im#"rtance "& t+e #"$iti"n $tatement

a. It "e1ps to (a1(u1ate t"e #oring (apita1 o/ t"e (on(ern.

. It indi(ates t"e 1ong term as #e11 as s"ortterm /inan(ia1 position o/ t"e

(on(ern.

(. Dit" t"e "e1p o/ t"is t"e arious ratios #i11 e (a1(u1ated.

d. It indi(ates t"e a1ue o/ t"e (on(ern and "e1p/u1 in (a1(u1ating t"e a1ue o/ t"e

s"are"o1ders e;uity and tota1 assets.

e. It "e1ps to mae t"e arrangement /or 1osses= #"i(" are expe(ted to o((ur in t"e

/uture.

"e a1an(e s"eet is re1eant at a parti(u1ar point o/ time. It is 1ie a /inan(ia1

snaps"ot at a point o/ time= e/ore and a/ter #"i(" t"e position may e di//erent. $o=

t"e a1an(e s"eet is a status report

*"ntent$ "& annual re#"rt?

"e 'o1y"ydron 't. ,td annua1 report /or t"e year *004*005 (ontains

aH -eport o/ t"e oard o/ dire(tors

H Auditors report

(H A((ounting po1i(ies

Re#"rt "& t+e 4"ar% "& %irect"r$? )ire(tor<s report proides a summary o/ pro/its

made and appropriated y t"e (ompany and ot"er re1eant in/ormation su(" as

industria1 re1ations= inestments= /inan(ing= organiation= appointment o/ auditors and

dire(tors et(. "e report o/ t"e '', oard o/ dire(tors gies a rie/ a((ount o/ t"e

(ompany pro/it and diidend during t"e *00+*004.

Au%it"r$ re#"rt? Auditors report to s"are"o1ders eri/ies #"et"er t"e a1an(e s"eet

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and pro/it and 1oss a((ount proides a true and /air ie# o/ t"e state o/ a (ompany<s

a//airs. Auditors s"ou1d otain a11 ne(essary in/ormation<s and exp1anations and ensure

t"at proper oos o/ a((ounts as re;uired y 1a# "ae een prepared y t"e (ompany.

Acc"unting #"licie$? Companies adopt di//erent a((ounting po1i(ies /or preparing

t"eir a1an(e s"eet and pro/it and 1oss a((ount. Annua1 reports in(orporate ma!or

a((ounting po1i(ies as #e11 as ("anges made in (urrent year.

Inc"me $tatement$

"is is a1so no#n as t"e pro/it and 1oss a((ount or t"e statement o/ earnings=

summaries t"e reenues and expenses o/ t"e /irm /or an a((ounting period. It gies a

detai1 o/ sour(es o/ in(ome and expenses and t"us it proides t"e summery o/ t"e

operating resu1ts o/ t"e /irm /or a spe(i/i( period. It mat("es t"e reenues #it" t"e

(osts t"at are in(urred in generating t"e reenues= and s"o#s t"e di//eren(e et#een

t"e t#o as t"e net pro/it made or net 1oss in(urred during t"e period. "is s"o#s t"e

resu1ts o/ t"e operations o/ t"e /irm during t"e period. "e is t"ere/ore= is a /1o#

report against t"e a1an(e s"eet #"i(" is a sto( report or a status report. "is depi(ts

t"e earning (apa(ity o/ t"e /irm during t"e period under (onsideration. 'ro/it and 1oss

a((ount presents t"e summary o/ reenues= expenses and net in(ome o/ a /irm. It

seres as a measure o/ t"e /irm<s pro/itai1ity.

"e main (ontent o/ t"e in(ome statement are: Net sa1es= Cost o/ goods so1d=

Gross pro/it= operating expenses= 2perating pro/it= Non operating surp1us?de/i(it=

'ro/it e/ore interest and tax= Interest= 'ro/it e/ore tax= ax and 'ro/it a/ter tax.

Analy$i$ "& &inancial $tatement

Ana1ysis o/ /inan(ia1 statement re/ers to t"e pro(ess o/ t"e (riti(a1 examination

o/ t"e /inan(ia1 in/ormation (ontained in t"e /inan(ia1 statement in order to understand

and mae de(isions regarding t"e operations o/ t"e /irm. "e Ana1ysis o/ /inan(ia1

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statement is asi(a11y a study o/ t"e re1ations"ip among arious /inan(ia1 /a(ts and

/igures as gien in a set o/ /inan(ia1 statements. "e asi( /inan(ia1 statements i.e. "e

a1an(e s"eet is= a1ready dis(ussed in t"e pre(eding se(tion (ontain a #"o1e 1ot o/

"istori(a1 data.

It is ery important to ana1ysis o/ /inan(ia1 statement to no# t"e di//erent

/a(tors t"at are e"ind t"e ("ange in t"e /igures o/ t"e /inan(ia1 statement. Ana1ysis o/

/inan(ia1 statements (ontains (omparison et#een di//erent /igures o/ di//erent

periods= (omparison.

Signi&icance "& t+e &inancial $tatement analy$i$?

"e ana1ysis o/ /inan(ia1 statement is ery important /or t"e di//erent parties

re1ated to t"e (on(ern i.e. interna1 users and externa1 users. "e signi/i(an(e o/ t"e

/inan(ia1 statement ana1ysis #i11 e (1ear /rom t"e /o11o#ing points:

• "is ana1ysis simp1i/ies and summaries t"e a((ounting /igures system t"at t"e

organiation (an proide in/ormation to t"e di//erent parties.

• >inan(ia1 statement ana1ysis is proides t"e management in asi( /un(tions 1ie

/ore(asting= p1anning= dire(ting= (oordinating and (ontro1.

• "is ana1ysis diagnose t"e /inan(ia1 "ea1t" o/ t"e (on(ern y ea1uating di//erent

/a(ts o/ t"e usiness i.e. ,i;uidity= so1en(y= pro/itai1ity= (apita1 gearing et(.

• "e ana1ysis o/ /inan(ia1 statements proides important and use/u1 in/ormation to

t"e management as #e11 as ot"er users. I/ t"is ana1ysis in not done t"an it is

di//i(u1t to tae de(ision (on(erned to /inan(ia1 matters.

Tec+ni=ue$t""l$ "& t+e Analy$i$ "& &inancial $tatement

"e met"odo1ogy adopted /or t"e Ana1ysis o/ /inan(ia1 statement may ary /rom

one situation to anot"er. %o#eer= t"e /o11o#ing are some o/ t"e (ommon te("ni;ues

o/ t"e Ana1ysis o/ /inan(ia1 statement:


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&. Comparatie /inan(ia1 statements

*. Commonsie /inan(ia1 statements

+. rend per(entage ana1ysis = and

4. -atio ana1ysis.

"e 1ast te("ni;ue i.e.= -atio ana1ysis is t"e most (ommon= (ompre"ensie and

po#er/u1 too1 o/ t"e Ana1ysis o/ /inan(ia1 statement.

Statement "& c+ange$ in &inancial #"$iti"n

#o asi( /inan(ia1 statements important to o#ners= management and inestors

are a1an(e s"eet and pro/it and 1oss a((ount. Ba1an(e s"eet gies a summary o/

/irm<s resour(es FassetsH and o1igations F1iai1ities and o#ners e;uityH at a point o/

time= t"e pro/it and 1oss a((ount re/1e(ts t"e resu1t o/ t"e usiness operations y

summariing reenues and expenses during a period o/ time. Bot" t"ese statement /ai1

to exp1ain t"e ("anges in assets and 1iai1ities and o#ners e;uity. "is statement is

intended to summarie:

• C"anges in assets and 1iai1ities resu1ting /rom /inan(ia1 and inestment

transa(tions during t"e period= as #e11 as t"ose ("anges #"i(" resu1ted due to

("ange in o#ner<s e;uity.

• "e usage o/ /irm<s /inan(ia1 resour(es during t"e period.

"e statement o/ ("anges in /inan(ia1 position dea1s #it" t"e /1o# o/ /unds during t"e

year i.e.= t"e /1o# o/ /unds in and out o/ t"e /irm. It summaries t"e sour(es /rom

#"ere t"e /unds mig"t "ae een arranged y t"e /irm and t"e uses /or #"i(" t"e

/unds mig"t "ae een used y t"e /irm during t"e year. "e /o11o#ing are t"e

important (on(epts o/ /unds:

• "e term /unds may e taen to re/er to (as" on1y. "is is a genera1 notation o/ t"e

term /unds and is used /or expressing t"e 1i;uidity o/ a /irm. "ere/ore= t"is


&5



(on(ept o/ /unds #i11 report and in(1ude on1y t"ose transa(tions #"i(" are

a//e(ting t"e (as" a1an(eJ t"is #i11 e !ust a summary o/ t"e (as" transa(tions.

%en(e= nonmonetary transa(tion su(" as pur("ase o/ /ixed assets y issue o/

deenture #i11 not e reported in a seep.

• "e term /unds may a1so e used to denote t"e net #oring (apita1 o/ t"e /irm.

"e net #oring is t"e di//eren(e et#een t"e tota1 (urrent assets and tota1 (urrent

1iai1ities. $in(e= (as" is on1y one o/ t"e seera1 (urrent assetsJ t"is ie# o/ t"e

term /unds is roader t"an t"e pre(eding (on(ept. A s"eet is prepared on t"e asis

o/ t"e net #oring (apita1 (on(ept o/ /unds #i11 in(1ude a11 t"ose transa(tions

#"i(" a//e(t t"e net #oring (apita1 o/ t"e /irm. $o= any transa(tion a//e(ting

(urrent assets or (urrent 1iai1ities #i11 /ind p1a(e in t"e s"eet. %o#eer= t"ere may

e di//erent transa(tion #"i(" do not a//e(t t"e net #oring (apita1 and t"ere/ore=

#i11 e outside t"e s(ope o/ s"eet.

•

Be(ause o/ t"e 1imitation o/ t"e aoe t#o (on(epts= t"e term /unds is a1so used to

denote a11 t"e /inan(ia1 resour(es o/ t"e /irm. In su(" a (ase= t"e term /unds are

used in t"e roadest possi1e sense and t"e in"erent s"ort(omings o/ t"e ot"er

t#o (on(epts are e1iminated. Based on t"e (on(ept o/ tota1 /inan(ia1 resour(es= t"e

s"eet #i11 report ai1 t"e important and re1eant transa(tions during a year@

Based on t"ese t"ree (on(epts o/ t"e term /unds= t"e s"eet (an e prepared as /o11o#s:

&. s"eet F (as" asis H a1so no#n as a (as" /1o# statement

*. s"eet net #oring (apita1 H a1so no#n as a /und /1o# statement

*a$+ &l"7 $tatement

Cas" /1o# statement proides in/ormation aout t"e (as" re(eipts and

payments o/ a /irm /or a gien period. It proides important in/ormation t"at

(omp1iments t"e pro/it and 1oss a((ount and a1an(e s"eet. "e in/ormation aout t"e


&6



(as" /1o#s o/ a /irm is use/u1 in proiding users or /inan(ia1 statements #it" a asis to

assess t"e ai1ity o/ t"e enterprise to generate (as" and (as" e;uia1ent and t"e needs

o/ t"e enterprise to uti1ie t"ese (as" /1o#s. "e e(onomi( de(isions t"at are taen y

users re;uire an ea1uation o/ t"e ai1ity o/ an enterprise to generate (as" and (as"

e;uia1ents and t"e timing and (ertainty o/ t"eir generation.

Sc"#e

• Cas" /1o# statement proides in/ormation aout t"e (as" re(eipts and payments o/

enterprises /or a gien period. It proides important in/ormation t"at supp1ements

t"e pro/it and 1oss a((ount and a1an(e s"eet.

• "e statement o/ (as" /1o# is re;uired to e issued y t"e institute o/ ("artered

a((ountants o/ India in Mar(" &33 #"i(" rep1a(es t"e K("anges in /inan(ia1

position as per as+<.

• "ere are (ertain ("anges in t"e preparation o/ (as" /1o# statement /rom t"e

preious met"ods as a resu1t o/ t"e introdu(tion o/ as+.

• Cas" (omprises (as" on "and and demand deposit #it" ans.

• Cas" e;uia1ents are s"ort term "ig"1y 1i;uid inestments t"at are readi1y

(onerti1e into no#n amounts o/ (as" and #"i(" are su!e(t to an insigni/i(ant

ris o/ ("anges in a1ue. Examp1es o/ (as" e;uia1ents are= treasury i11s=

(ommer(ia1 paper et(.

• Cas" /1o#s are in/1o#s and out/1o#s o/ (as" and (as" e;uia1ents. It means t"e

moement o/ (as" into t"e organiation and moement o/ (as" out o/ t"e

organiation.

*la$$i&icati"n "& ca$+ &l"7$

"e (as" /1o# statement re1ating to a parti(u1ar period is (1assi/ied into t"e

/o11o#ing t"ree main (ategories o/ (as" in/1o#s and (as" out/1o#s:


&



&. Cas" /1o#s /rom operating a(tiities

*. Cas" /1o#s /rom inestment a(tiities

+. Cas" /1o#s /rom /inan(ing a(tiities

*a$+ &l"7 &r"m "#erating acti<ity

2perating a(tiity are t"e prin(ip1e reenue produ(ing a(tiities o/ t"e enterprise

and ot"er a(tiities t"at are not inesting or /inan(ing a(tiities. 2perating a(tiities

in(1ude (as" e//e(ts o/ t"ose transa(tions and eents t"at enter into t"e determination

o/ net pro/it or 1oss. >o11o#ing are examp1es o/ (as" /1o#s /rom operating a(tiities.

Cas" re(eipt /rom t"e sa1e o/ goods and t"e rendering o/ seri(es.

Cas" re(eipt /rom roya1ties= /ees= (ommission= and ot"er reenue.

Cas" payments to supp1iers /or goods and seri(es.

Cas" payments to and on e"a1/ o/ emp1oyees.

Cas" re(eipts and payments o/ an insuran(e enterprise /or premiums and (1aims=

annuities and ot"er po1i(y ene/its.

Cas" payments or re/unds o/ in(ome tax un1ess t"ey (an e spe(i/i(a11y identi/ied

#it" /inan(ing ot"er po1i(y ene/its.

Cas" re(eipts and payments re1ating to /uture (ontra(ts= /or#ard (ontra(ts= option

(ontra(ts and s#ap (ontra(ts are "e1d /or dea1ing or trading purposes.

*a$+ &l"7$ &r"m in<e$tment$ acti<itie$

Inesting a(tiities are t"e a(;uisition and disposa1 o/ 1ong terms assets and

ot"er inestments not in(1uded in (as" e;ua1ity. Inesting a(tiities in(1ude

transa(tions and eents t"at ino1e t"e pur("ase and sa1e o/ 1ongterm produ(tie

assets not "e1d /or resa1e and ot"er inestments. "e /o11o#ing are examp1es o/ (as"

/1o#s arising /rom inesting a(tiities:


&



• Cas" payments to a(;uire /ixed assets Fin(1uding intangi1esH. "ese payments

in(1ude t"ose re1ating to (apita1ied resear(" and dee1opment (osts and se1/

(onstru(ted /ixed assets.

• Cas" payments to a(;uire s"ares= #arrants= or det instruments o/ ot"er

enterprises and interests in !oint entures.

• Cas" re(eipts /rom disposa1 o/ /ixed assets.

• Cas" re(eipts /rom disposa1 o/ s"ares= #arrants= or det instruments o/ ot"er

enterprises and interests in !oint entures.

• Cas" adan(es and 1oans made to t"ird parties.

• Cas" re(eipts /rom t"e repayments o/ adan(es and 1oans made to t"ird parties.

• Cas" re(eipts and payments re1ating to /utures (ontra(ts= /or#ard (ontra(ts= option

(ontra(ts= and s#ap (ontra(ts ex(ept #"en t"e (ontra(ts are "e1d /or dea1ing or

trading purposes= or t"e re(eipts and payments are (1assi/ied as /inan(ing

a(tiities.

*a$+ &l"7$ &r"m &inancing acti<itie$

>inan(ing a(tiities are a(tiities t"at resu1t in ("anges in t"e sie and (omposition

o/ t"e o#ner<s (apita1 and orro#ings o/ t"e enterprise. >o11o#ing are t"e examp1es o/

(as" /1o#s arising /rom /inan(ing a(tiities:

• Cas" pro(eeds /rom issuing s"ares or ot"er simi1ar instruments.

• Cas" pro(eeds /rom issuing deentures= 1oans= notes= onds and ot"er s"ort term

orro#ings.

• Cas" repayments o/ amounts orro#ed= i.e.= redemption o/ deentures= onds= et(.

• Cas" payments to redeem pre/eren(e s"ares.

• 'ayment o/ diidend


&3



&H Ai1ity to generate /uture (as" /1o#s.

*H Ai1ity to pay diidends and meet o1igations.

+H -easons /or t"e di//eren(e et#een net in(ome and net (as" proided

FusedH y operating a(tiities.

4H Cas" inested and /inan(ing transa(tions during t"e period.

In&"rmati"n t" #re#are t+i$ $tatement

sua11y (omes /rom + sour(es:

• Comparatie a1an(e s"eet.

• Current in(ome statement.

• Additiona1 in/ormation.

"e state o/ (as" /1o# dea1s #it" (as" re(eipts and 'ayments= so t"e a((rua1

(on(ept is not used in t"e preparation o/ t"e state o/ (as" /1o#.

Fun% &l"7 $tatement

"e pro/it and 1oss a((ount and a1an(e s"eet statements are t"e (ommon

important a((ounting statements o/ a usiness organiation. "e pro/it and 1oss

a((ount proides /inan(ia1 in/ormation re1ating to on1y a 1imited range o/ /inan(ia1

transa(tions entered into during an a((ounting period and #"i(" "ae impa(t on t"e

pro/its to e reported. "e a1an(e s"eet (ontains in/ormation re1ating to (apita1 or

det raised or assets pur("ased. But ot" t"e aoe t#o statements do not (ontain

su//i(ient1y #ide range o/ in/ormation to mae assessment o/ organiation y t"e end

user o/ t"e in/ormation.

"e /und /1o# statement is a1so (a11ed as t"e K statement o/ sour(es and

app1i(ation o/ /unds< and K statements o/ ("anges in /inan(ia1 position<.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM *0

*0



"e /und /1o# statement (ontains a11 t"e detai1s o/ t"e /inan(ia1 resour(es "ae een

used up. "is statement dis(1oses t"e amounts raise /rom arious sour(es o/ /inan(e

during a period and t"en exp1ains "o# t"at /inan(e "as een used in t"e usiness.

It is ery use/u1 too1 in ana1ysis o/ /inan(ia1 statements #"i(" ana1ysis t"e

("anges taing p1a(e et#een t#o a1an(e s"eet dates. "e statement ana1ysis t"e

("anges et#een t"e opening and (1osing a1an(e amounts o/ t"e a11 items o/ a1an(e

s"eet /or t"e period.

A a1an(e s"eet sets out t"e /inan(ia1 position at a point o/ time= setting

1iai1ities /rom #"i(" /unds "ae een raised against assets a(;uired y t"e use o/

t"ose /unds. A /und /1o# statement ana1ysis t"e ("anges #"i(" "ae taen p1a(e in t"e

assets and 1iai1ities during (ertain period as dis(1osed y a (omparison o/ t"e opening

and (1osing a1an(e s"eets.

*"nce#t "& &un%

"e term K/und< "as een de/ined and interpreted di//erent1y y t"e di//erent

experts. "e K/und< re/ers to a11 t"e /inan(ia1 resour(es o/ t"e (ompany. 2n t"e ot"er

extreme= K/und< "as een understood as K(as"< on1y.

"e most a((epta1e meaning o/ t"e /und is K#oring (apita1<.

*"nce#t "& &l"7

"e /1o# o/ /unds re/ers to trans/er o/ e(onomi( a1ues /rom one asset e;uity

to anot"er. D"en /unds mean #oring (apita1= /1o# o/ /unds re/ers to moement o/

/unds #"i(" (ause a ("ange in #oring (apita1 o/ t"e organiation.

I%enti&icati"n "& &l"7 "& &un%$?

A /1o# o/ /unds taes p1a(e on1y i/ a (urrent a((ount is ino1ed. o identi/y a

/1o#= !ourna1ie t"e transa(tion= identi/y t"e t#o a((ounts ino1ed as K(urrent< and

Knon(urrent< and app1y t"e genera1 ru1e.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM *&

*&



General rule

• ransa(tions #"i(" ino1e on1y (urrent a((ounts do not resu1t in a K/1o#<.

• ransa(tions #"i(" ino1e on1y non(urrent a((ounts do not resu1t in a /1o#.

• ransa(tions #"i(" ino1e one (urrent a((ount and one non(urrent a((ount

resu1ts in a K/1o#< o/ /unds.

"e sour(es and app1i(ation o/ t"e #oring (apita1 or t"e /unds may e examined as

/o11o#s:

S"urce$ "& &un%

A /irm numerous transa(tions during a year and most o/ t"ese transa(tions may

a//e(t one or t"e ot"er (urrent a((ount i.e.= most o/ t"ese transa(tions may resu1t in t"e

/1o# o/ t"e #oring (apita1. Neit"er it is ne(essary nor pra(ti(a1 to identi/y t"e e//e(t

o/ ea(" and eery transa(tion on t"e #oring (apita1. "ese transa(tions= instead= are

(onsidered and ana1yed

In a (o11e(tie /orms and t"en t"eir e//e(t on t"e #oring (apita1 is identi/ied.

$ome o/ t"e ma!or sour(es o/ #oring (apita1 (an e noted do#n as /o11o#s.

• "e /unds generated y t"e operation o/ /unds in term o/ t"e pro/its. Issue o/

additiona1 s"are (apita1 or deenture /or (as". It may e noted t"at t"e /unds

generated in t"is (ase= are e;ua1 to t"e issue pri(e o/ t"e se(urities. "e /a(e a1ue

o/ s"are?deenture is irre1eant.

• Borro#ings made y t"e /irm /or a 1ong term.

• $a1e o/ /ixed assets= inestment or intangi1e assets su(" as good#i11= patent et(.

• Nonoperating in(omes su(" as in(ome /rom inestment or pro/its /rom t"e sa1e o/

assets?inestments.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM **

**



• Any ot"er sour(e e.g. $usidy re(eied /rom t"e goernment= (1aims re(eied

/rom insuran(e (ompany /or t"e 1oss o/ a property et(.

A##licati"n$ "& &un%$

As a1ready noted in t"e aoe 1ist o/ sour(es o/ /unds= t"at i/ t"ere is usiness 1oss to

t"e /irm t"en t"is tantamount to de(rease or use o/ /unds.

• 'ur("ase o/ ne# assets?inestments?patent rig"ts?trade mars or any ot"er

property redu(es t"e #oring (apita1 o/ t"e /irm.

• "e redemption o/ pre/eren(e s"are (apita1 or deentures during a year a1so

uti1ies t"e /unds.

• -epayment o/ a 1ong term 1oan during t"e year.

• 'ayment o/ diidends to t"e s"are"o1ders.

S"urce$ "& &un%$

&. In(rease in 1iai1ities

*. In(rease in (apita1

+. )e(rease in assets and inestments

A##licati"n$ "& &un%$

&. )e(rease in 1iai1ities

*. )e(rease in (apita1

+. In(rease in non(urrent assets and inestments

Financial #lanning

>inan(ia1 manger must e a1e to ana1ye t"e (urrent position o/ t"eir o#n

/irms as #e11 as t"at o/ t"eir (ompetition. "ey must a1so p1an /or t"e (ompany<s

/inan(ia1 /uture. Gro#t" in sa1es is an important o!e(tie o/ most /irms. An in(rease

in a /irm<s maret s"are #i11 1ead to "ig"er gro#t". "e /irm #ou1d need assets to

sustain t"e "ig"er gro#t" in sa1es. It may "ae to inest in additiona1 p1ant and

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM *+

*+



ma("inery to in(rease its produ(tion (apa(ity. A1so= it #ou1d need additiona1 (urrent

assets to produ(e and se11 more goods or seri(es.

"e /irm #ou1d "ae to a(;uire ra# materia1s and (onert t"em into /inis"ed

goods a/ter in(urring manu/a(turing expenses. It may "ae to se11 goods on (redit

e(ause o/ t"e industry norms or to pus" up sa1es. "e supp1ier o/ ra# materia1s may

extend (redit to t"e /irm. "e /irm may use its interna11y generated /unds to /inan(e

(urrent and /ixed assets. D"en t"e /irm gro#s at "ig"er rate= interna1= /unds may not

e su//i(ient. "e pro(ess o/ estimating t"e /unds re;uirements o/ a /irm and

determining t"e sour(es o/ /unds is (a11ed /inan(ia1 p1anning.

Ste#$ in &inancial #lanning

>inan(ia1 /ore(asting is t"e asis /or /inan(ia1 p1anning. >ore(asts are mere1y

estimates ased on t"e past data. %istori(a1 per/orman(e may not o((ur to t"e /uture=

p1anning means #"at a (ompany #ou1d 1ie to "appen in t"e /uture and in(1udes

ne(essary a(tion p1ans /or rea1iing t"e predetermined intensions. "e /o11o#ing steps

are ino1ed in /inan(ia1 p1anning:

• !a$t #er&"rmance? Ana1ysis o/ t"e /irm<s past per/orman(e to as(ertain t"e

re1ations"ip et#een /inan(ia1 aria1es= and t"e /irm<s /inan(ia1 strengt"s and

#eanesses.

• O#erating c+aracteri$tic$ Ana1ysis o/ t"e /irm<s operating ("ara(teristi(s

produ(t= maret= (ompetition= produ(tion and mareting po1i(ies= (ontro1 systems=

operating ris et(. o de(ide aout its gro#t" o!e(tie.

• *"r#"rate $trategy an% in<e$tment nee%$? )etermining t"e /irm<s inestments

needs and ("oi(es= gien its gro#t" o!e(tie and oera11 strategy.

• *a$+ &l"7 &r"m "#erati"n$ >ore(asting t"e /irm<s reenues and expenses and

need /or /unds ased on its inestment and diidend po1i(ies.


*4



• Financial alternati<e$? Ana1ying /inan(ia1 a1ternaties #it"in its /inan(ia1 po1i(y

and de(iding t"e appropriate means o/ raising /unds.

*"n$e=uence$ "& &inancial #lan$

Ana1ye t"e (onse;uen(es o/ its /inan(ia1 p1ans /or t"e 1ongterm "ea1t" and

t"e suria1 to /irm.

*"n$i$tency

Ea1uate t"e (onsisten(y o/ /inan(ia1 po1i(ies #it" ea(" ot"er and #it" t"e

(orporate strategy.

>inan(ia1 p1anning ino1es t"e ;uestions o/ a /irm<s 1ongterm gro#t" and

pro/itai1ity and inestments and /inan(ia1 de(isions. It /o(uses on aggregatie (apita1

expenditure programs and dete;uity mix rat"er t"an t"e indiidua1 pro!e(ts and

sour(es o/ /inan(e.


*5



5 2 STATEMENT OF T;E !ROBLEM?




o/ t"e year.

Management !r"4lem:



Re$earc+ !r"4lem




*6



0 2 !UR!OSE OF T;E STUDC

"e purpose o/ doing t"is pro!e(t is main1y to mae a t"oroug" study o/ t"e

/inan(ia1 ana1ysis o/ t"e (ompany.

o assess t"e (ompany<s trends /or t"e 1ast /ie years #it" regard to 1i;uidity

per/orman(e.

"e purpose a1so in(1udes assessing t"e impa(t o/ /inan(ia1 ana1ysis on

1i;uidity strengt" o/ t"e (ompany.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM *

*



. 2 S*O!E OF T;E STUDC

"e s(ope o/ t"e study is (ondu(ted is on1y /or organiationa1 1ee1. It is done

t"roug" t"e Ba1an(e s"eet o/ t"e (ompany= /or t"e periods &333*000= *0000&= *00&

0*= *00*0+= *00+04= *00405 and *00506.

/ 2 OB9E*TI>ES OF T;E STUDC?

&. o ana1ysis t"e /irm<s /inan(ia1 statements

*. o no# #"et"er management generating ade;uate operating pro/it on t"e /irm<s

assets.

+. o no# "o# is t"e /irm /inan(ing its assets

4. o no# #"et"er o#ners getting ade;uate returns@

5. o determine t"e progress o/ t"e (ompany.


*



*;A!TER @ 1

Organiati"n !r"&ile

o !"ly+y%r"n !<t Lt%

Organiati"n *+art

Re$earc+ De$ign

Data *"llecti"n Met+"%

Mea$uring t""l$


*3



6 2 ORGANIATION !ROFILE (!OLC;CDRON !>T LTD)

'2,L%L)-2N is no#n /or its 8E%ICA, MANAGEMEN9. 'eop1e /rom

a11 oer India isit t"e (ompany to intera(t and understand t"e systems. It "as e(ome

a ind is 8'I,G-IMAGE CEN-E9 /or t"e (orporate #or1d o/ India. It is esta1is"ed

in &3&.it is 1o(ated in Be1gaum<s ne# industria1 area at Ma("e.

'o1y"ydron manu/a(tures "ydrau1i( e;uipments 1ie "ydrau1i( a1es= radia1

piston pumps et(. "e range o/ produ(ts spans oer +0 types and 00 mode1s. '',

"ae #on a nationa1 a#ard /or entrepreneurs"ip in &35 and NAC2$$IMA a#ard

/or ex(e11en(e in management instituted y t"e nationa1 (on/ederation o/ sma11

industry madras in &33*.

'o1y"ydron= Knatura1 usiness< is per/ormed to t"e (ustomer is o//ered a range

o/ produ(ts manu/a(tured y t"e (ompany. 'o1y"ydron (ustomer in(1udes 2EM<s and

$to(iest.

;ISTORC

"e "ree young ent"usiasti( engineers Mr. $.B.%undre= Mr. C"itins and Mr.

V. $amant toget"er started %ydrote("ni(= a "ydrau1i( tue /ittings and a((essories

manu/a(turing unit in t"e year &34.

Dit" t"e toe in t"e "ydrau1i( maret door egan to pen /or ne#er (on(ept and

t"e next 1ogi(a1 step #as to se11 a1es and pumps. $ooner t"e expansion #as

ne(essary to eep up #it" t"e demand.

>o11o#ing ta1e summaries "o# 'o1y"ydron Group o/ Companies "as dee1oped:

• &34M?s %ydrote("ni( #as esta1is"ed to manu/a(ture= "ydrau1i( tue (oup1ing

/or metri( tues= /1anged /ittings s"ut o//s= need1e a1es= t"rott1e ("e( a1es et(.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM +0

+0



• &3&M?s 'o1y"ydron #as set up /or manu/a(turing radia1 piston pumps = re1ie/

a1es = dire(tiona1 (ontro1 a1es = ("e( a1es et(.

• &36M?s 'o1y"ydron $ystem #as started to manu/a(ture oi1 "ydrau1i( systems=

"ydrau1i( a(tuators and piston type a((umu1ators.

• &33'o1y"ydron e(ome priate 1imited (ompany.

• &33&'o1y"ydron $ystems e(ome priate 1imited (ompany.

• &33+'o1y"ydron $ystem 't. ,td. #ent in (o11aoration #it" oi1 gear touter o/

$A to e(ome 2i1 gear touter 't. ,td F2',H

M?s 'o1y"ydron is (onsidered to e one among t"e ery /e# p1ants in India

#"i(" "as een pra(ti(ing I (on(ept oer 1ast seera1 years apart /rom emp1oyee

ino1ement and simi1ar ot"er ;ua1ity management (on(epts. '', is t"e on1y

(ompany= #"i(" is manu/a(turing pumps and a1es #it"out any (o11aoration.

MISSION

De #i11 nurture an et"i(a11y managed organiation=

De #i11 not exp1oit our (ustomers=

Emp1oyees= supp1iers= goernment= so(iety and nature.

>ISION

De #i11 (reate an is1and o/ ex(e11en(e

"roug"

>o(us on (ustomer=

Emp1oyee<s empo#erment

And (ontinuous improement

"e Vision and Mission at '', (ame into eing e/ore I$2 (ame to India. "e

Vision statement emerged in &335 and t"e Mission statement in &336. t"e mission

statement is used as a K (onstant guide< /or a(tion o/ managers and #orers.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM +&

+&



MANUAL !RO*EDURE

D"en t"e order /or t"e produ(t is re(eied /rom t"e (ustomer= t"e assem1y

Coordinator "as to (oney t"e ordered ;uantity o/ t"e produ(t to t"e monitor o/ t"e

#orstation #"ere t"at parti(u1ar produ(t is assem1ed.

"en monitor "as to start t"e assem1ing o/ t"e produ(t o/ mentioned ;uantity.

At t"e eening Ft"at is #"en #oring "ours o/ t"e (ompany are going to /inis" H t"e

monitor "as to in/orm t"e assem1y (oordinator aout t"e ;uantity o/ t"e produ(t

assem1ed t"roug"out t"e day and t"e name and ;uantity o/ t"e items #"i(" are used

to assem1e t"e produ(t as #e11 as t"e $to( o/ t"e items.

"en assem1y (oordinator "as to see= "o# many items are e1o# reorder

1ee1 on t"e #orstation. I/ t"ere are items e1o# reorder 1ee1 t"en "e "as to generate

t"e pur("ase orders to t"e supp1iers. $in(e t"ere is no any pur("ase department in t"e

(ompany t"e assem1y (oordinator "as to do a11 t"ese t"ings. "ere is on1y one

supp1ier /or one item ut one supp1ier may "ae many items to supp1y.

Again= t"e assem1y (oordinator "as to see "o# many items are re!e(ted /rom

t"e #orstation and "o# many produ(ts are re!e(ted /rom t"e (ustomerJ and "e "as to

update t"e sto( o/ items and produ(ts on t"e #orstation.

A:ARDS AND A*;I>EMENTS

• Nationa1 a#ard to sma11 s(a1e entrepreneur in t"e year &34.

• NAC2$I$IMA a#ard in t"e year &33* as (erti/i(ate o/ ex(e11en(e.

• "e president<s a#ard /or entrepreneurs"ip in t"e year &34.

• "e Be1gaum ("amer o/ (ommer(e and industries (on/erred on t"em an a#ard

/or outstanding per/orman(e in t"e /ie1d o/ industry in t"e year *00*.

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM +*

+*



• "e -otary (1u o/ Be1gaum gae t"em o(ationa1 a#ard /or 8%IG% E%ICA,

$AN)A-)$ IN V2CAI2N9 in t"e year &33+&334. "e (ommissioner o/

(ommer(ia1 axes= Be1gaum de(1ared '', as t"e K)e1igent tax payer<.

-otary (1u= Banga1ore= i!aynagar in u1y *000 (on/erred o(ationa1 ex(e11en(e

a#ard to s"ri. $ures" B. %undre /or (oni(tion in Et"i(a1 a1ues and pra(ti(ing t"ese

a1ues. "ey "ae said "e "as trans1ated "is industry into a temp1e o/ et"i(s= an

industria1 pi1grimage may t"is "onor peop1e "im to (reate /urt"er a#areness o/ et"i(a1

management pra(ti(es= and "erey indu(ing in more and more peop1e t"at et"i(s is t"e

on1y 1asting measure o/ one<s su((ess and satis/a(tion.

"e institute o/ Engineers FIndiaH 1o(a1 (entre= Be1gaum "as "onored s"ri. $ures". B.

%undre /or ex(e11en(e a("ieed and outstanding seri(es rendered in t"e /ie1d o/

Engineering on &5t" $ep &33.

!RODU*TION SCSTEM

UALITC !OLI*C? De at po1y"ydron= strie to a("iee Oua1ity y in(reasing t"e

rate o/ Improement etter t"an t"e rise in Customer expe(tations

'', emp"asies on t"e ;ua1ity o/ t"e produ(t. I/ any (ustomer is dissatis/ied

#it" t"e produ(t= t"en eery arrangement is made to rep1a(e t"at produ(t #it" t"e ne#

one. Next (omes into t"e pi(tures= t"e reason /or t"e produ(t /ai1ure #"i(" #ou1d e

eit"er t"e /au1t o/ - and )

Ty#e$ "& ;y%raulic $y$tem$ an% c"m#anie$

%ydrau1i( systems Companies

&. $E-V2 EC% Moog (ontro11ers= -exrot" (ontro11ers= Vi(ers

(ontro11ers

*. 'roportiona1 te("no1ogy Vi(ers= -exrot"= Luers= )en/oss

+. Basi( %ydrau1i( Vi(ers= -exrot"= Bos("= %erion= Lu1er= )en/oss

M*INSEC 3S MODEL

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM ++

++



"e $een$s is a /rame#or /or ana1ying organiations and t"eir

e//e(tieness. It 1oos at t"e seen ey e1ements t"at mae t"e organiations

su((ess/u1= or not: strategyJ stru(tureJ system<s= or not: strategyJ stru(tureJ systemsJ

sty1eJ si11J sta//J and s"ared a1ues.

Consu1tants at M(insey 7 Company dee1oped t"e $ mode1 in t"e 1ate

&30s to "e1p managers address t"e di//i(u1ties o/ organiationa1 ("ange t"e mode1

s"o#s t"at organiationa1 immune systems and t"e many inter(onne(ted aria1es

ino1ed mae ("ange (omp1ex= and t"at an e//e(tie ("ange e//ort must address

many o/ t"ese issues simu1taneous1y

*OM!ANC !ROFILE :IT; RES!E*T TO 3S MODEL

Strategy? "e dire(tion and t"e s(ope o/ t"e (ompany oer t"e 1ong term.

Based on maret resear("= (ompetitie ana1ysis and se1/ ana1ysis= t"e (ru(ia1

di//erentiating (ompeten(ies or strong sides o/ t"e (ompany are identi/ied and


+4



/ormu1ated. Business strategy o/ '',.8De s"a11 dee1op and (ontinuous1y improe

our produ(ts #"i(" s"a11 e o//ered to our (ustomers at reasona1e pri(e.

Structure? "e asi( organiation o/ t"e (ompany= its departments= reporting

1ines= areas o/ expertise= and responsii1ity Fand "o# t"ey interre1ateH.

Sy$tem$ "e Company sa/eguards its assets and ensuring t"at its usage is

aut"oried and is done in t"e rig"t manner. "e (ompany a1so maintains proper

a((ounting re(ords as statutori1y re;uired and as per pre pres(ried a((ounting

standards and genera11y a((epted a((ounting pra(ti(es so as to ensure re1iai1ity o/

/inan(ia1 in/ormation.

"e (ompany "as t"e /o11o#ing genera1 system in p1a(e.

A((ounting FA((ounts= Budgets et(.H Manua1s= Administratie manua1s and ot"er

/un(tiona1 manua1s "ae een (omp1ied and are updated periodi(a11y.

"e (ompany "as a #e11 organied management in/ormation system.

S8ill$: $i11s in(1ude t"ose ("ara(teristi(s (ompany e1iees its memers in a

ey position. It in(1udes su(" as:

• e("ni(a1 si11: F$op"isti(ated measuring and (a1irating instruments= CA)

/a(i1ity and spe(ia1 testing /a(i1ity= De11 e;uipped - and ) (enter. Oua1i/ied

personne1.H

• Management si11s: Fustintime produ(tion system imp1emented "as ourn

unimagina1e= Bene/its in spite o/ t"e non (ondu(tie enironment in t"e (ountry.

• %o1ds a ery good (o11e(tion o/ te("ni(a1 F"ydrau1i(H and management oos

emp1e o/ Et"i(s. Business As"ram.H

S+are% >alue$? 2rigina11y (a11ed super ordinate goa1sJ t"e guiding (on(epts and

prin(ip1es o/ t"e organiation a1ues and aspirations= o/ten un#ritten t"at go

eyond t"e (onentiona1 statements o/ (orporate o!e(tiesJ t"e /undamenta1 ideas


+5



around #"i(" a usiness is ui1tJ t"e t"ings t"at in/1uen(e a group to #or toget"er /or

a (ommon aim.

"e Va1ues s"ared y t"e emp1oyees o/ '', are:

-espe(t /or indiidua1s= Customer orientation= ,eeraging te("no1ogi(a1 dee1opment=

)esire /or ex(e11en(e= Et"i(a1 #ay o/ doing usiness= >inan(ia1 a(umen = 'assion /or

ex(e11en(e= ,ie ;ua1ity= Integrity= %onesty= rust= ransparen(y= )e1egation o/

aut"ority.

Sta&& : $ta// means t"at t"e (ompany "as "ired a1e peop1e= trained t"em #e11

and assigned t"em to t"e rig"t !os. $e1e(tion = training re#ard and re(ognition=

retention= motiation and assignment to appropriate #or are a11 ey issues.

ota1 emp1oyees: 60.

Style? 8#e #i11 gro# toget"er #e #i11 proide you opportunities to 1earn= to e

ino1ed= to pra(ti(e ne# si11s= to "ae responsii1ities to e respe(ted and a1ued=

and to e re#arded and re(ognied /or your (ontriution9. In return #e see your

(ommitment to our (ompany<s mission. Lour asso(iation #it" our (ompany #i11

(ertain1y ensure t"at you #i11 e a more ta1ented= responsi1e= se1/ (on/ident and #e11

mannered person. o en(ourage= eam spirit= Creatiity= Ingenuity= )ee1op ta1ent.

"us t"e management aims at redu(ing dire(t (ontro1 on indiidua1s to

promote motiation= ;ua1ity improement and produ(tiity

!RODU*T !ROFILE

'o1y"ydron manu/a(tures %ydrau1i( -adia1 'iston 'umps= Moi1e Va1es=

)ire(tiona1 Contro1 Va1es= $o1enoid Va1es= 'ressure Contro1s= Mani/o1ds= Coers=

,ogi( Cartridges= 'ressure $#it("es= and C"e( Va1es.'o1y"ydron produ(ts are


+6



pri(ed at uneata1y 1o# and '', "as ("anged t"e pri(es ery margina11y in 1ast &5

years. "e /o11o#ing produ(ts o/ 'o1y"ydron

%and 'umps %'&0

%eay duty (onstru(tion. -ene#a1e interna1 parts

y rep1a(ement. Integra1 -e1ie/ and -e1ease a1es.

Nomina1 /1o# and pressure ratings

Mode1

Max.

#oring

pr. FarH

>1o#

(apa(ity

(.(.?stroe

2i1 tan

(apa(ity F((H

%'&0 +50 &.*5 *50

>eed and 'o#er %and 'umps %'50&* 7 %'50&6


+

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Automati( ("angeoer /rom "ig" dis("arge at 1o#

pressure to 1o# dis("arge at "ig" pressure.

-ene#a1e interna1 parts y rep1a(ement.

Co11apsi1e %and 1eer /or (ompa(t sie and s"ort

"and moement.

Mode1

Maximum

#oring

pr. FarH

>1o#

(apa(ity

upto +0

ar

(.(.?stroe

>1o#

(apa(ity

aoe +0

ar

(.(.?stroe

2i1 tan

(apa(ity

F1trs.H

%'50&* 00 43 *.&+

%'50&6 +50 43 5

-adia1 'iston 'umps *-

-adia1 piston arrangement= #it" += 5 or 'umping

e1ements ea(" per pump se(tion. >ixed de1iery= 2i1immersed type= 2pen exe(ution= /a(e mounting=

Va1e (ontro11ed. Bidire(tiona1 rotation o/ s"a/t.

>1o#s (an e (omined interna11y= externa11y to

/eed one (ir(uit or used independent1y to /eed #o

(ir(uit

-adia1 'iston 'umps *-C ? *-CE

-adia1 piston arrangement= #it" += 5 or pumping

e1ements. Externa1 mounting type. >a(e mounting=Va1e (ontro11ed= >ixed de1iery. Bidire(tiona1

rotation o/ s"a/t. Aai1a1e #it" extension s"a/t /or

t"roug" drie. Dit" extension ra(et assem1y /or

(oup1ing a 1o# pressure pump "aing standard

/1ange.

'umping E1ement &- ? *-

'umping E1ement Assem1y /or &- ? *-.2i1 immersed type= open exe(ution= /a(e mounting=

a1e (ontro11ed= /ixed de1iery.

-adia1 'iston 'ump &*-


+

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-adia1 piston arrangement= #it" 5 or pumping

e1ements ea(" per pump se(tion. 2i1 immersed /a(e

mounting. Va1e (ontro11ed. >ixed de1iery. Bi

dire(tiona1 rotation o/ s"a/t. Dit" extension s"a/t

/or t"roug" drie. Aai1a1e #it" extension ra(et

assem1y /or (oup1ing a 1o# pressure pump "aingstandard /1ange.

Be11 %ousing Assem1y F>a(tory $tandardH B%'

"e e11 "ousing series B%' are designed /or

(oup1ing "ydrau1i( pumps "aing /1anges to e1e(tri(

motors "aing metri( /1anges. "ese e11 "ousings

are pre(ise1y ma("ined to redu(e misa1ignment o/

(oup1ed s"a/ts. "e (orre(t a1ignment o/ t"e s"a/ts

a1ong #it" t"e (us"ioned po#er transmissiont"roug" a resi1ient spider in(reases t"e 1i/e o/ t"e

earings o/ t"e pump?motor (oup1ed. "e

(onstru(tion a1so redu(es t"e noise generation

(onsidera1y.

)ire(t 2perated 'ressure -e1ie/ Va1e )'-

)ire(t a(ting #it" guided (us"ioned poppet.

Aai1a1e in Cartridge= "readed and $up1ate

types.

Nomina1 pressure and /1o# ratings

Mode1

Max.

#oring

pr. FarH

Max. /1o#

in 1 ? min

)'- 06 00 +0

)'- &0 400 0

)'- *0 400 &60

)ire(t 2perated 'ressure (ontro1 Va1e )'C

%ydrau1i(a11y (us"ioned a1es= used to (ontro1se;uen(ing= re1ieing= un1oading or (ounter

a1an(ing operations.


Max. /1o# "and1ing

(apa(ity&60 1?min

Max. setting pressure &60 ar

Max. #oring pressure +50 ar

'i1ot 2perated 'ressure -e1ie/ Va1es FCartridge ypeH ''- 06


+3

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#o stage $poo1 type -e1ie/ ? -edu(ing Va1e

Cartridge ,o# pressure oerride due to 1arger

/1o# area.

#o options /or pressure ad!ustment=

Dit" set s(re# and 1o( nut.

Dit" "and no and 1o( nut.Interna1 drain a1es (an e (onerted to externa1

drain

'i1ot 2perated 'ressure -e1ie/ (um n1oading Va1e ''-

#o stage pi1ot operated (onstru(tion. "ese

a1es are norma11y open type a1es. D"en t"e

pressure in t"e se(ondary port F port B H

in(reases to set pressure= t"e a1e (1oses against

t"e spring.

''M&0

+&5

ad!usta1e

upto

5 to +&5

0

''M*0 *00

''M+0 +00

'ressure Contro1 Modu1es 'CM 0606

)esigned to (ontro1 dou1e pumps o/ a %i,o#

system. n1oads 1o# pressure pump #"en

system pressure rises aoe t"e pressure set on

un1oader a1e. -e1iees "ig" pressure pump

#"en system pressure rea("es t"e a1ue.


Mode1

Max. pr.

/or

%ig" pr.

re1ie/

FarH

%ig"

pr.

>1o#

F1?mi

nH

Max. pr. >or

un1oading

FarH

,o#

pr.

>1o#

F1?mi

nH

'CM 0606 400 *5 50 *5

'ressure Contro1 Modu1es 'CM *0&6

)esigned to (ontro1 )ou1e pumps o/ a %i,o#

system. Consists o/ a %ig" pressure re1ie/ a1e=

a C"e( a1e and a 1o# pressure un1oading

a1e. n1oading o/ pumps y $o1enoid a1e ?

Va1es as an optiona1 /eature.


'CM*0&6 +&5 &00 &00 &60

Counter Ba1an(e Va1e CB )esign series +0


40




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Counter a1an(e a1es are seat type a1es.

"ey o//er /ree/1o# /rom t"eir port B to A and

gie 1ea /ree (1osure in opposite dire(tion upto

a predetermined pressure. "is predetermined

(ra(ing pressure (an e ad!usted #it"in its

maximum spe(i/ied range.

>1o# "and1ing (apa(ity *00 1pm

Max. $et 'ressure 50 ar

2perating pressure +&5 ar

$o1enoid 2perated )ire(tiona1 Contro1 Va1e FCE2' 0+H )E 06

)ire(t so1enoid operated=spoo1 type= mounting

on I$2 440&0+0*.

>ie ("amer ody and spoo1 design proides

1o#pressure drop= #it" maximum

per/orman(e. Ba1an(ed spoo1 design ensures

proper s"i/ting /or(e /or maximum re1iai1ity

and 1ong 1i/e. A11 spoo1s and odies are

inter("anga1e= simp1i/ying maintenan(e. Det

pin )C so1enoids ensure etter "eat

dissipation= ;uitter operation= t"ere y

in(reasing so1enoid 1i/e. Mou1ded so1enoid

(oi1s e1iminate moisture pro1ems and ingress

o/ dust. '1ugin(oi1s /or ease o/ maintenan(e.Indi(ator 1ig"ts are a standard option.

,eer 2perated )ire(tiona1 Contro1 Va1e F21d $eriesH ),&0 F $eries &0 H

Comp1ete1y en(apsu1ated (ontro1 me("anism

/or prote(tion against dirt. >ie ("amer

design. >1exii1ity in rotating t"e operating

me("anism y 30P x 4. Dide ariety o/ spoo1s

aai1a1e in sup1ate mode1 on1y.


Mode1 Max. #oring pr. FarH

Max.

/1o#1?min.

4),

&0

'ort '= A and B .....

+50

'ort ................ &00

&00

'i1ot 2perated )ire(tiona1 Contro1 Va1e FNe# $eriesH )' &0

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM 4&

4&

http://www.polyhydron.com/PPLProduct/3_directional_controls/p04909-index.htm





'i1ot operated dire(tiona1 (ontro1 a1es are

"ydrau1i(a11y operated spoo1 a1es. "ey

(ontro1 t"e start= stop 7 dire(tion o/ /1uid /1o#.

Aai1a1e in &3 spoo1 (on/igurations. Aai1a1e

as spring (entered and spring o//set. Mounts

on standard I$2 440&= I$&0&.


Mode

1Max. #oring pr. FarH

Max.

/1o#

1?min.

4)'

&0

'ort '= A and B ...... +50

'ort ................... *50

'ort Q and L .......... &50

&*0

$o1enoid 'i1ot 2perated )ire(tiona1 Contro1 Va1e )E' *0

Aai1a1e as spring (entered= spring o//setVa1e mounting inter/a(e (on/orms to

Internationa1 and Nationa1 standards.

Minimum pi1ot pressure is 5 ar.

,eer 2perated 'ressure %o1ding ).C.V. ),$ *0

$pe(ia11y designed to (ontro1 pstroing=

graity return= sing1e a(ting "ydrau1i(

(y1inders= #"ere pressure "o1ding= smoot" de

(ompression and ;ui( return o/ t"e ram is

desired. "ese a1es are tota11y en(apsu1ated

/or trou1e/ree operations. a1es #it" ;ui(

ex"aust /eature "as 1arge return passage to

a("iee extra /ast return o/ t"e ram.

Mono1o( )ire(tiona1 Contro1 Va1e M), &0

Mono1o( dire(tiona1 (ontro1 a1e

(onsisting o/ ody= t"e (ontro1 spoo1=

in(orporated #it" ui1tin nonreturn a1eF Anti(aitation H and )ire(t a(ting pressure

re1ie/ a1e. "e a1e is aai1a1e in spring

(entred or detented mode1.

In order to "ae /1exii1ity in mounting= t"e

operating "ead (an e rotated y 30Rx4

positions around t"e spoo1 axis. 'ort

(on/iguration and a1e mounting inter/a(e

(on/orms to /a(tory standards.

'ressure (ompensated /1o# (ontro1 a1e '>

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM 4*

4*




http://www.polyhydron.com/PPLProduct/3_directional_controls/D32200-index.htm



'ressure (ompensated. C"e( a1e

option /or reerse/ree /1o#. >our

rotations o/ "and no to /a(i1itate t"e

setting #it" ease. "um s(re# proision

to retain a1e setting. $troe 1imiter

aai1a1e as an option.

Max. #oring pr. +&5 ar

>1o# (ontro11ing

(apa(ity

Min. 0.*5 to 4= =

&6 or +* 1?min.

>1o# diider a1e >)

>1o# diider a1es proide dua1 /1o#

/rom a sing1e sour(e at a predetermined

ratio= regard1ess o/ 1oad. Maximum

diiding error is S5T= "readed port

ody.

Max. 'r.

FarH+&5

)iidin

g -atio

FTH

50 : 50

C"e( Va1e= $C-EDIN CA--I)GE $C ? $)

#o port s(re#in (artridge a1es t"at aredesigned to /it in a (aity (on/irming to I$2

3 : &33 FEH. "ese are seat type a1es=

aai1a1e in /our di//erent sies and #it" /ie

di//erent (ra(ing pressure in ea(" sie.

C"e( a1es a11o# /ree /1o# in one dire(tion

#"i1e proiding 1ea/ree (1osure in reerse

dire(tion.

C"e( Va1e C FI$2H

$eat type a1es. A11o# /ree /1o# /rom port A

to port Band o//er 1eaage /ree (1osure in

opposite dire(tion. Aai1a1e in /our sies o/

standard inter/a(es (on/orming to

I$2 5&

I$ &0&

)IN *4+40

Ea(" mode1 aai1a1e #it" options o/ /our

(ra(ing pressures: 0.5= &.5= + and 5 ar.

C"e( Va1e C,

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM 4+

4+

http://www.polyhydron.com/PPLProduct/5_check_valves/p06199-index.htm

http://www.polyhydron.com/PPLProduct/4_flow_controls/p06727-index.htm

http://www.polyhydron.com/PPLProduct/4_flow_controls/p05083-index.htm



$eat type a1es= C, #it" externa1 drain.

"readed or $up1ate mounting

(onstru(tion.


Mode1 Max. #oring pr. FarH

Max. /1o#1?min.

C,&0 +&5 0

C,*0 +&5 &60

C,+0 +&5 +50

C"e( Va1e *CI

"ese a1es are aai1a1e #it" t"e pi1ot

operated ("e( a1e /a(i1ity on eit"er A or B

or ot" A and B t"readed ports.

"e "ydrau1i( opening operation /or /ree /1o#

in reerse dire(tion is a("ieed y means o/

interna1 pi1ot pressure aai1a1e /rom t"e ot"er

#oring port.

C"e( Va1e FModu1arH CM &0

"ese are seat type a1e in sand#i(" p1ate

design /or use in erti(a1 sta(ing assem1ies.

Its "ardened meta11i( seat ensures 1eaage /ree

(1osure. 'orting pattern (on/orms to I$2

440&5= I$ &0&= )IN *4+40. Aai1a1e in (on/igurations #it" 4 (ra(ing options /or

ea(" (on/igurations.

$ie >1o#

&0 &00 1pm

'i1ot operated ("e( a1e FModu1arH CIM 06

"ese modu1ar a1es are aai1a1e #it" t"e

pi1ot operated ("e( a1e /a(i1ity on eit"er

UAU or UBU ports. "e "ydrau1i( opening

operation /or /ree /1o# in reerse dire(tion isa("ieed y means o/ interna1 pi1ot pressure

aai1a1e /rom t"e ot"er #oring port.

$"utt1e Va1es $,

$eat type (onstru(tion. Automati(a11y

(onne(ts itUs ' port to eit"er A or B depending

upon #"i("eer o/ t"e t#o ports is at "ig"er

pressure 1ee1. Iso1ates port A and B /rom

ea(" ot"er. 'ort ' gets (onne(ted to tan= on1y

i/= port A and port B are (onne(ted to tan.

Aai1a1e ot" in "readed and $up1atetype.


44



http://www.polyhydron.com/PPLProduct/5_check_valves/P06151-index.htm





're/i11 a1e F 'V 40 0 H

Intended /or pre/i11ing and ex"austing o/ 1arge

"ydrau1i( (y1inders. Can e used as

anti(aitation ("e( a1es. )e(ompression

/eature is optiona1 up to sie 0.

're/i11 a1e F 'V &00 *00 H

Intended /or pre/i11ing and ex"austing o/ 1arge

"ydrau1i( (y1inders. Can e used as

anti(aitation ("e( a1es.

Cartridge Va1es CV &6 to CV 40

"ese a1es are suita1e /or mounting in

mani/o1d (aities ma("ined as per I$2

+6. By se1e(ting suita1e (artridge and

(oer= it is possi1e to a("iee /un(tions

1ie


45

http://www.polyhydron.com/PPLProduct/6_logic_cartridges/p03426-index.htm







Title "& t+e Stu%y?



Statement "& #r"4lem?




o/ t"e year.

Management !r"4lem:



Re$earc+ !r"4lem



O4ecti<e$?

6. o ana1ysis t"e /irm<s /inan(ia1 statements

. Is management generating ade;uate operating pro/it on t"e /irm<s assets.

. o no# "o# is t"e /irm /inan(ing its assets

3. Are t"e o#ners getting ade;uate returns@

&0. o determine t"e progress o/ t"e (ompany.

0 2 DATA *OLLE*TION MET;OD


4



Sec"n%ary %ata? "e ma!or sour(e o/ data /or t"is pro!e(t #as (o11e(ted /rom

annua1 reports= pro/it and 1oss a((ount= manua1s 7 some more in/ormation (o11e(ted

t"roug" t"e internet.

. 2 MEASUREMENT TOOLS?

"is study is (ondu(ted #it" t"e "e1p o/ statisti(s /igures 7 te("ni;ues 1ie

Grap"s 7 ("arts /or etter (omparison and interpretation.

"is pro!e(t is an ana1yti(a1 resear(" #"ere in t"e resear("er "as to use t"e

aai1a1e /a(ts as in/ormation and ana1ye t"ese to mae a (riti(a1 ea1uation o/

materia1s. "is is a1so an app1ied resear(" #it" an aim to /ind a so1ution /or immediate

pro1ems /a(ing industry or t"e /irm.

"e met"odo1ogies /o11o#ed in t"e ana1ysis o/ t"e /inan(ia1 statement are

(omparatie statement= Common sie statement= rend ana1ysis and -atio ana1ysis.

"e /o11o#ing are t"e met"ods o/ /inan(ia1 ana1ysis used in genera1.

Comparatie /inan(ia1 statements

Commonsie /inan(ia1 statements

rend per(entage ana1ysis

-atio ana1ysis

Limitati"n$


4



"e study is done on1y on t"e Ba1an(e s"eet and 'ro/it and 1oss a((ount.

$tudy is ased on in/ormation proided y t"e (ompany.

"e 1imitation o/ ratio ana1ysis is itse1/ a 1imitation in a("ieing t"e set

o!e(tie


43



*;A!TER @ 5

Re$ult$ %i$cu$$i"n 7it+ *+art$

gra#+$

Rec"mmen%ati"n$


50



*"m#arati<e Financial Statement

In Comparatie >inan(ia1 $tatement FC>$H= t#o or more Ba1an(e $"eet and? or

t"e In(ome $tatement FI$H o/ a /irm are presented simu1taneous1y in (o1umnar /orm.

"e /inan(ia1 data /or t#o or more years are p1a(ed and presented in ad!a(ent (o1umns

and t"erey t"e /inan(ia1 data is proided a times perspe(tie in order to /a(i1itate

periodi( (omparison.

"e preparation o/ t"e C>$ is ased on t"e premise t"at a statement (oering a

period o/ a numer o/ years is more meaning/u1 and signi/i(ant t"an /or a sing1e year

on1y= and t"at t"e /inan(ia1 statement /or one period represent on1y & p"ase o/ t"e 1ong

and (ontinuous "istory o/ t"e /irm. "e C>$ (an e prepared /or ot" t"e B$ and t"e

I$.

*"m#arati<e Balance S+eet (*BS)

"e CB$ s"o#s t"e di//erent assets and 1iai1ities o/ t"e /irm on di//erent dates

to mae (omparisons o/ aso1ute a1an(es and a1so o/ ("anges i/ any= /rom one date o/

anot"er. "e CB$ may e "e1p/u1 in ana1ying and ea1uating t"e /inan(ia1 position o/

t"e /irm oer a period o/ numer o/ years.


5&



*"m#arati<e Balance S+eet

'arti(u1ars *004 *005

In(rease?

)e(rease

FamountH

In(rease?

)e(rease

Fper(entageH

,iai1ities and(apita1

Current 1iai1ities

)e/erred 1iai1ities

$"are (apita1

-eseres and

surp1us

ota1

Assets

Current assets

Net /ixed assetsInestments

ota1

43*&*.45

&45**+46.00

+4500.00

&03&0*65.*

&+46&5+*+.0

45+660.6*

663&+.&54500.00

&+46&5+*+.0

&04500&.30

&53*+3.00

+4500.00

&++&+4&46.4*

&6*6330+.+0

600*6.**

&0*3*5*.&04500.00

&6*6330+.+0

FH *35&05.45

FH &*53+.00

FH 0.00

FH*40*6&.&0

**5453.50

FH&4&33*&5.60

FH&4&*++.35FH 0.00

**5453.50

FH +3.+6T

FH .T

FH 0T

FH **.0*T

FH *0.3T

FH +0.35T

FH &5.3*T FH 0T

FH *0.3T

Comparatie Ba1an(e $"eet

'A-IC,A-$ *005 *006

In(rease?

)e(rease

FAmountH

In(rease?

)e(rease

F'er(entageH

,iai1ities and Capita1• Current ,iai1ities &04500&.30 &&3&++.50 &46+55.60 &4.0&

• )e/erred ,iai1ities &53*+3.00 &6+40336.00 54*5.00 +.44

• $"are Capita1 +4500.00 +4500.00 0.00 0.00

• -eseres and $urp1us &++&+4&46.4* &&03+3.* 4643*.6 +6.56

TOTAL 6/1H/-551 165..65-H3H .-/H60-.0/ 5661

Assets

• Current Assets 600*6.** 30&&060.* +00+34.50 50.00

• Net >ixed Assets &0*3*5*.&0 &*+4+6&+.06 *064+6&0.36 *0.0

• Inestment 4500.00 4500.00 0.00 0.00

TOTAL 6/1H/-551 165..65-H3H .-/H60-.0/ 5661

INTER!RETATION

*urrent a$$et$

"e inestments in t"e (urrent assets are ery "ig" and it "as in(reasing trend

oer t"e period under study. "e (urrent assets "ae in(reased y -s. +00+34.50

i.e.= 50.00T in *006 #"en (ompared to *005. $o it is signi/i(ant1y e//e(ts on t"e


5*



1i;uidity position o/ t"e (ompany and it a1so in(rease t"e #oring (apita1 o/ t"e

(ompany. "ese s"o#s t"ere are "uge inestments in t"e inentories and detors.

Net &i,e% a$$et$

"e net /ixed assets in(reased y &4&*++.35 i.e.= a1most &5.3*T in *005

#"en (ompared to *004. In t"e year *00506 in "as in(reased to *0.0T. "is is due

to (apa(ity expansion in '1ant II.

In<e$tment$

"ere is no ("ange in inestments /or (omparing t"e preious year and t"e

(urrent year. "e (ompany #i11 spend 1ot o/ money on t"e (urrent assets on1y. $o t"ere

is no ("ange in inestments in t"e (ompany. >or preious year it #i11 e -s. 4500 and

/or (urrent year a1so it #i11 e -s. 4500.

*urrent lia4ilitie$

Current 1iai1ities in(1ude (urrent 1iai1ities and proisions. Current 1iai1ities

and proisions in(reased y *35&05.45 i.e.= aout +3.+6T in *005 #"en (omposed

to *004. in t"e year *00506 (urrent 1iai1ities "ae in(reased y &4.0& $in(e t"e

in(rease in (urrent assets is more t"an in(rease in (urrent 1iai1ities= t"ere/ore t"e net

#oring (apita1 "as in(reased.

De&erre% lia4ilitie$

)e/erred 1iai1ities in(reased y &*53+.00 i.e.= aout .T in (urrent year

#"en (ompared to preious year i.e= in t"e year *00405. But in t"e year *00506 it

"as !ust in(reased y on1y +.44T.

Re$er<e an% $ur#lu$

"e -esere and $urp1us "as in(reased y -s. *40*6&.&0 i.e= aout **.0*T

in *005 as (ompared to *004. In t"e year *00506 reseres and surp1us "ae in(reased

y +6.56T.


5+



*OM!ARATI>E IN*OME STATEMENT (*IS)

A C$I s"o#s t"e /igure o/ di//erent items o/ t"e I$ o/ t"e /irm in aso1ute

terms= t"e aso1ute ("anges /rom one period to anot"er and i/ desired= t"e ("anges in

per(entage /orm. "e CI$ is "e1p/u1 in deriing meaning/u1 (on(1usions regarding

("anges in sa1es o1ume= (ost o/ goods so1d= di//erent expenses items et(. /rom t"e

CI$= a /inan(ia1 ana1yst (an ;ui(1y as(ertain #"et"er sa1es are in(reasing or

de(reasing and y "o# mu(" amount or y "o# mu(" per(entage

*"m#arati<e inc"me $tatement

!articular$ 1--0 1--. Increa$e

Decrea$e

Inam"unt

Increa$e

Decrea$e

(J)

Net sa1es &+6+64++6.+ &63*3*63.3 +&5643+4 *+.*4

1ess: Cost o/ goods so1d 3&+5*&&.& &*06+0+. *35&035 +*.+

Gr"$$ #r"&it 0.-61161 03-//6/1 1-.533 0./

,ess: se11ing and

administratie exp

&&5&*03.&6 33366&0.4 &5&54.4 &+.&6

2perating in(ome ++500&+0.04 +06355.46 ++&35* &00.65

Add: ot"er in(ome &403&. +40*+.66 &5*4+&.3 0.3*EBIT 5.5H0116H0 0-03H0-61 .-06H35 605

,ess: interest 0 0 0 0

!BT 5.5H0116H0 0-03H0-61 .-06H35 605

1ess: axes &&000000 &+000000 *000000 &.&

)e/erred tax ad!ustments &3*&35 &+4*3& 55* +0.+5

!AT 110./-1/H0 1/6500661 5/3H0/05 6/5H


54



*"m#arati<e inc"me $tatement

!ARTI*ULARS 1--. 1--/Increa$eDecrea$e

(Am"unt)

Increa$eDecrea$e

J

Net sa1es &63*3*63.3 *&353344.3 5&66064.36 +0.6

,ess: Cost o/ Goods $o1d &&044506. &*5+++4+.+ &5+*5.5 &+.3+

Gr"$$ #r"&it .30H01-16H 53.//-6.3 5/13155 /56-

,ess: $e11ing and Admin.

exps *04&46&6.4 *&0*4*56 6036+3.*6 *.33

O#erating inc"me 53-/.H.00 3135150..3 5.//13/-65 /1-

Add: 2t"er In(ome +40*+.66 4&43&4.3 40+*4.*+ *&.*

EBIT 0-03H0-6 3/HH6050/ 5/0-5-H05/ H5

,ess: Interest 0 0 0 0.00

!BT 0-03H0-6 3/HH6050/ 5/0-5-H05/ H5

,ess: axes &+000000 *5000000 &*000000 3*.+&

'ro. /or >B /or *006 0 &50000 &50000 0.00

)e/erred tax ad!ustments &+4+3& 54*5 0&&6& 53.6&

Add: Ex(ess?s"ort 'ro. /or

I.. 0 3+55+.3 3+55+.3 0.00!AT 1/650066 .16/11-5/ 1/-1331/ .

Inter#retati"n

2n t"e asis o/ (omparatie in(ome statement it (an e said t"at gross pro/it

/or t"e year *006 "as in(reased y 6+.&0T oer t"e pro/it /or t"e year *005. "e Net

sa1es during t"e same period "ae in(reased y +0.6T. "e (ost o/ goods so1d

in(reased y &+.3+T. "e se11ing and Administratie expenses in(reased y *.36T.

2t"er in(ome /or t"e year *006 is in(reased y *&.*. "e EBI is in(reased y

5.54T during t"e year *006. "e Net pro/it is in(reased 3.3+T.

*OMMON SIE STATEMENT

"e CC$ represents t"e re1ations"ip o/ di//erent items o/ a /inan(ia1 statement

#it" some (ommon item y expressing ea(" item as a per(entage o/ t"e (ommon


55



item. In (ommon sie Ba1an(e s"eet= ea(" item o/ t"e Ba1an(e s"eet is stated is stated

as a per(entage o/ t"e tota1 o/ t"e Ba1an(e s"eet. $imi1ar1y in (ommon sie in(ome

statement= ea(" item is stated as per(entage o/ t"e net sa1es. "e per(entage /or

di//erent items is (omputed y diiding t"e aso1ute amount o/ t"at item y t"e

(ommon ase and t"en mu1tip1ying y &00. "e per(entage so (a1(u1ated (an e easi1y

(ompared #it" t"e (orresponding per(entages in some ot"er period.


56



*"mm"n Sie Inc"me $tatement


!ARTI*ULARS 1--0 1--. 1--/

• Net sa1es &00.00 &00.00 &00.00

• Cost o/ Goods $o1d 66.33 65. 5.+0

Gr"$$ !r"&it 55-6 5015 013-

,ess: $e11ing and Admin. exps .44 &*.&6 3.5 O#erating Inc"me 10.3 11-3 5561

Add: 2t"er In(ome &.+ *.0+ &.3

EBIT 1.. 106- 5.-6

,ess: Interest 0.00 0.00 0.00

!BT 1.. 106- 5.-6

,ess: axes 3.4 .4 &&.0

!AT 6/03 6/5/ 1556

5

5



*OMMON @ SIE BALAN*E S;EET

Current 1iai1ities

(urrent 1iai1ities

proisions

ota1

,oan /und

se(ured 1oan

nse(ured 1oan

)e/erred tax 1iai1ity

ota1

ota1 1iai1ities

Net #ort"

s"are (apita1

reseres and surp1us

ota1

ota1 /unds

Current assets

Inentory

rade detorsCas" and Ban a1an(e

2t"ers

,oans and adan(es

ota1

>ixed assets

Gross 1o(

,ess: depre(iation

Net 1o(

Capita1 #orinprogress

ota1

ota1 Assets

4.0

&.4

5.54

0.00

0.00

&&.5

&&.5

&.+3

+.&5

3.36

+.&&

&00.00

5.+0

.&0

&5.60.0+

&.

+&.06

+.3

&.05

66.4

*.0

6.34

&00.00

4.0*

&.54

5.56

0.00

0.00

&0.

&0.

&6.+4

*.53

&.05

+.64

&00.00

6.45

.63

**.3+0.05

*.6+

40.5

3.*&

*0.44

6.

*.04

.&

&00.00

4.0

&.60

6.40

0.00

0.00

3.63

3.63

&6.03

*.&4

&.4

+.

&00.00

.0+

&0.34

&4.50.06

+.*6

+6.6

.66

&5.6

6&.30

&.*0

6+.&0

&00.00

*00+ *004 *005


5



*OMMON @ SIE BALAN*E S;EET

Lia4ilitie$ 1--0 1--. 1--/

C--EN ,IABI,IIE$ 4.0* 4.0 +.05

'roisions &.54 &.60 *.5+

T"tal ../ /0- ..H

,oan >und

$e(ured ,oan 0.00 0.00 0.00

nse(ured 1oan 0.00 0.00 0.00

)e/erred ax ,iai1ity &0. 3.63 .65

T"tal Lia4ilitie$ 6/50 6/- 6515

NE D2-%

*&.& 45.34 3+.*&

$"are Capita1 *.53 *.&4 &.6+

-eseres 7 $urp1us &.05 &.4 5.&4

T"tal H5/0 H5HH H/33

TOTAL FUNDS 6---- 6---- 6----

A$$et$ 1--0 1--. 1--/Inentory 6.45 .0+ .0

trade )etors .63 &0.34 &*.45

Cas" 7 Ban Ba1an(e **.3+ &4.5 &3.&0

2t"ers 0.05 0.06 0.&&

,oans 7 Adan(es *.6+ +.*6 *.46

T"tal 0-3. 5/H/ 011-

Fi,e% A$$et$

Gross B1o( .65 .66 6.4

,ess: A((umu1ated )ep. *0.44 &5.6 &+.0+

Net B1o( 5.*& 6&.30 54.&

Capita1 #or in progress *.04 &.*0 +.03

T"tal .1. /56- .3H-

TOTAL ASSETS 6---- 6---- 6----

INTER!RETATION


53



"e (ommon sie B$ and t"e (ommon sie I$ reea1 t"at proportion o/ /ixed

assets out o/ tota1 assets "as redu(ed /rom 6+.&0 to 5.0 #"ereas t"e proportion o/

(urrent assets "as in(reased /rom +6.6 to 4*.*0. 2ut o/ tota1 1iai1ities t"e proportion

o/ (urrent 1iai1ities "as de(reased /rom 6.40 to 5.5 and t"e proportion o/ de/erred

tax 1iai1ities "as de(reased /rom 3.63 to .65. "e Net #ort" "as in(reased /rom

+. to &+4.T.

>urt"er= t"e (ost o/ goods so1d "as de(reased /rom 65.T to 5.+0T. "e

Gross pro/it "as in(reased /rom +4.*+T to 4*.0T. EBI "as a1so in(reased /rom

*4.&0T to +5.0&T in t"e year *005 to *006. "e 'ro/it a/ter tax "as a1so in(reased

/rom &6.+6 to *+.+&T.

It (an e osered t"at t"e C$$ (an e used /or ana1ying and (omparing t"e

/inan(ia1 position o/ a /irm /or t#o di//erent periods or et#een t#o /irms /or t"e

same year. "is (omparai1ity #as not aai1a1e in t"e C>$ e(ause o/ di//eren(e in

/irm<s sies or in di//erent years. 2/ (ourse= in order to mae t"e C$$ more

meaning/u1= t"e ana1yst s"ou1d ensure t"at a((ounting po1i(ies o/ di//erent /irm<s

eing (ompared or /or di//erent year are un("anged or not signi/i(ant1y di//erent.

TREND !ER*ENTAGE ANALCSIS

"e 'A is a te("ni;ue o/ studying seera1 /inan(ia1 statements oer a series

o/ years. In 'A t"e trend per(entage are (a1(u1ated /or ea(" item y taing t"e /igure

o/ t"at item /or some ase year as -$. &00. $o= t"e trend per(entage is t"e per(entage

re1ations"ip #"i(" ea(" item o/ di//erent years ears to t"e same item in t"e ase year.

Any year may e taen as t"e ase year= ut genera11y t"e starting?initia1 year is taen

as t"e ase year. $o= ea(" item /or ase year is taen as &00 and t"en t"e same item

/or ot"er years is expressed as a per(entage o/ t"e ase year.


60



-EN) ANA,L$I$ IN FAM2NH

*00+ *004 *005 *006

Net sa1es

Gross pro/it

2perating in(ome

EBI

'B

'A

Current assets

Current 1iai1ities

>ixed assets

Net #ort"

)iidend

&064+4.30

++3&+5.*

*44536.45

*360&633.+5

*354*4.+5

&+663.+5

+4+6666.45

6&+4656.5

6*0**5.4

&044+3++.44

&**06*5.00

&+6+64++6.+4

450&**&3.*0

++500&+0.04

+5+4**&.4

+5+4**&.4

**4560*6.4

*+43400.

43*&*.45

663&+.&5

&*&&&&&.+*

&563+5.00

&63*3*63.3&

4066&36.*0

+06355.46

404403.&*

404403.&*

*6&+443&.&*

600*6.**

&04500&.30

&0*3*5*.&0

&5*4&35.4*

&4+5.00

*&353344.

3+5660&.5

*+*+45.5

6&43+.46

6&43+.46

5*&6**30.+6

45*&+.*

6504*5*.

&*+4+6&+.06

*0&3+53.30

+055+.50

rend ana1ysis Fin per(entagesH

*00+ *004 *005 *006

Net sa1es

Gross pro/it

2perating in(ome

EBI F Earning e/ore

interest and axesH'B F 'ro/it e/ore taxesH

'A F 'ro/it a/ter taxesH

Current assets

Current 1iai1ities

>ixed assets

Net .#ort"

)iidend

&00

&00

&00

&00

&00

&00

&00

&00

&00

&00

&00

&*.&*

&&.*4

&&.64

&&3.5+

&&3.60

&*+.+&

63.&0

&**.**

&&6.+5

&*&.&

&*.5

&5.

&**.53

&+0.&

&+6.4

&+6.*

&4+.5&

&4.3

&0.+4

&+4.3

&45.34

&5&.4*

&*0.6+

*44.*&

*55.4*

*53.&

*53.6

*+.3

*46.3&

&06.0*

&6&.3

&3+.*&

*50.5

ANALCSIS OF !ROFIT LOSS A**OUNT AND BALAN*E S;EET

"e Net sa1es o/ t"e (ompany "ae een in(reased y &+0.6 in t"e year *005

06 to -s.*&353344. eing t"e "ig"est sa1es in t"e 1ast year. "e in(rease in sa1es is

e(ause o/ "ig" prospe(ts o/ t"e (ompany.

"e Gross pro/it o/ t"e (ompany is in(reased /rom &**.53 in *005 to &6+.&0 in

t"e year *006.


6&



2perating in(ome "as in(reased y &3*.3* in t"e year *006 as (ompared to

&+0.& in t"e *005.

EBI Fearning e/ore interest and taxesH "as in(reased &&3.5+ in *004 and

&+6.4 in t"e *005.

ANALCSIS OF FINAN*IAL STATEMENT

SALES?

Inter#retati"n

"ere is an in(rease in t"e sa1es o/ a (ompany (ompared to ot"er sa1es

stations. "e (ompany registered a gro#t" o/ &+0.6 in *005*006 as (ompared

&5. to t"e year *00405

"e impa(t o/ turnoer is indi(ated y t"e in(reased pro/its o/ t"e (ompany.


6*



GROSS !ROFIT?

Inter#retati"n

"e gross pro/it /or t"e year *00+*004 #as 450&**&3.*0 it "as in(reased

3+5660&.5 in t"e year *005*006as (ompared to *004*005 #as 4066&36.*0.

Gross pro/it in(1udes sa1es (ost o/ goods so1d.

"e gross pro/it is in(reased e(ause o/ in(rease in sa1es and seri(e o/ t"e (ompany..


6+



O!ERATING IN*OME?

Inter#retati"n

"e operating in(ome o/ t"e (ompany #as -s. 3+5660&.5 in t"e year *005

*006 and -s.+06355.46 in t"e year *004*005. "e (ompany "as in(reased its

in(omes /or t"e 1ast /e# years. In t"e year *00+*004 it #as -s.++500&+0.04.

"e in(rease in operating in(ome o/ t"e (ompany is due to in(rease in sa1es.


64



!ROFIT BEFORE TAK?

Inter#retati"n

"e pro/it e/ore tax is s"o#ing ery good progress in t"eir pro/it taxes during

t"e /e# years.

"e (ompanies pro/it e/ore tax in(reased /rom -s.+5+4**&.4 in *00+*004

7 404403.&* in *004*005 and in *005*006 it #as 6&43+.46. "at is in(reased

y &&3.60= &+6.*= and *53.6 in t"e year *00+*004= *004*005 7 *005*006

respe(tie1y.


65



!ROFIT AFTER TAK?

Inter#retati"n

"e (ompany is s"o#ing ery good progress in t"eir net pro/it during t"e /e#

years. "e (ompany<s net pro/it in(reased /rom -s. **4560*6.4= *6&+443&.&*=

5*&6**30.+6 in *00+*004= *004*005 7 *005*006. "at is in(reased y &*+.+&=

&4+.5& 7 *+.3 in *00+*004= *004*005 7 *005*006 respe(tie1y.


66



*URRENT ASSETS?

Inter#retati"n

"e (urrent assets and 1oans and adan(es a11 put toget"er /or t"e year *004

*005 #ere -s. 600*6.**. In t"e year *00506 it amounts to 45*&+.*= (urrent

assets (onsists o/ inentories= (as" 7 Ban a1an(e and sundry detors.


6



*URRENT LIABILITIES?

Inter#retati"n

"e (urrent 1iai1ities and proisions o/ t"e (ompany stood at -s.

&04500&.30 in *004*005. it #as -s. 6&+4656.5 in *00+*004.

Compared to *004*005 t"e (urrent 1iai1ities "ae in(reased /rom &0.+4 to

&**.** in *00+*004.And in t"e year *00506 t"e 1iai1ity "ae de(reased to &06.0*


6



FIKED ASSETS?

Inter#retati"n

"e /ixed assets needs o/ t"e (ompany "ae in(reased /rom &&6.+5 to &+4.3

in *00+*004 7 *004*005. >or t"e year *00506 it is &6&.3.

"e tota1 /ixed assets are arried a/ter dedu(ting depre(iation /rom t"e gross

1o( 7 net 1o( is (a1(u1ated (apita1. >ixed assets in(1ude: 1and 7 ui1ding=

>urniture<s et(.


63



NET :ORT;?

Inter#retati"n

"e net #ort" "as in(reased /rom &*&.& to &45.34 in t"e year *00+*004 7

*004*005. /or t"e year *00506 it is &3+.*&

"e net #ort" in(1udes s"are (apita1= -eseres and 1oans.


0



DI>IDEND?

Inter#retati"n

"e diidend o/ t"e (ompany "as in(reased /rom &4+5 in t"e year *004

*005. "at is in *00+*004 it #as &*.5 7 &5&.4* in *004*005. In t"e 1ast year t"e

diidend de(1are #as +055+.50 and t"e per(entage in(rease is upto *50.5T.


&



RATIO ANALCSIS

Meaning

-atio ana1ysis is a #ide1yused too1 o/ /inan(ia1 ana1ysis. It is de/ined as t"e

systemati( use o/ ratio to interpret t"e /inan(ia1 statements to t"at t"e strengt" and

#eanesses o/ a /irm as #e11 as its "istori(a1 per/orman(e and (urrent /inan(ia1

(ondition (an e determined. A ratio is re1ations"ip expressed in mat"emati(a1 terms

et#een t#o indiidua1 and groups o/ /igures (onne(ted #it" ea(" ot"er in some

1ogi(a1 manner. "e re1ations"ip et#een t#o or more a((ounting /igures?groups is

(a11ed /inan(ia1 ratio. A /inan(ia1 ratio "e1ps to summarie a 1arge mass o/ /inan(ia1

data into a (on(ise /orm and to mae meaning/u1 interpretation and (on(1usion aout

t"e per/orman(e and positions o/ a /irm.

Ty#e$ O& Rati"

-atio (an e (1assi/ied into /our road groups: ,i;uidity ratios= ,eerage

ratios= A(tiity ratios and 'ro/itai1ity ratios.

Li=ui%ity rati"

,i;uidity ratio measures t"e ai1ity o/ t"e /irm to meet its (urrent o1igation.

In /a(t= ana1ysis o/ 1i;uidity needs t"e preparation o/ (as" udgets and (as" and /und

/1o# statementsJ ut 1i;uidity ratio= y esta1is"ing a re1ations"ip et#een (as" and

ot"er (urrent assets to (urrent o1igation= proide a ;ui( measure o/ 1i;uidity. "e

most (ommon ratios #"i(" indi(ate t"e extent o/ 1i;uidity are: Current ratio and

Oui( ratio

• *urrent Rati"? "e (urrent ratio is (a1(u1ated y diiding (urrent assets y

(urrent 1iai1ities:


*



Current ratio Current assets

Current 1iai1ities

Current assets in(1ude (as" and t"ose assets #"i(" (an e (onerted into (as"

#it"in a year= su(" as mareta1e se(urities= detors and inentories. "e (urrent ratio

gies t"e margin y #"i(" t"e a1ue o/ t"e (urrent assets may go do#n #it"out

(reating any payment pro1em /or t"e /irm. "is represents a margin o/ sa/ety /or t"e

1iai1ities.

"e "ig"er t"e (urrent ratio= t"e greater is t"e margin aai1a1e and t"e 1ess is

t"e ("an(e o/ /irm<s /ai1ure to meet its (ommitments in time. It must e noted t"at t"e

(urrent ratio (onsiders on1y t"e ;uantity o/ (urrent assets ignores t"e ;ua1ity o/ (urrent

assets.

*+art $+"7ing current a$$et$ t" current lia4ilitie$?


0

1

2

3

4

5

6

7

8

year 1999-

2000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

+

+





Inter#retati"n

As a ru1e o/ t"um or as a (onersion= ;ui( ratio o/ &:& is (onsidered

satis/a(tory. "e (ompany "aing an ex(e11ent 1i;uidity. "at is in t"e years

*000=*00&=*00*=*00+ and *004 t"e ;ui( (onersion ratio is &.3= *.+5= 5.54= 4.65

and 5.&5 times respe(tie1y o/ t"e (urrent 1iai1ities. %o#eer t"e satis/a(tion or

unsatis/a(tion o/ t"e 1i;uidity position #i11 entire1y depend on detors t"e (ompany

(annot e 1i;uid in spite o/ its 1i;uidity ratio i/ it "as s1o# paying ratio.

*alculati"n "& Li=ui%ity Rati"’$

Exp1anation &333

*000

*000

*00&

*00&

*00*

*00*

*00+

*00+

*004

FaH C--EN -AI2

Current assets

Current 1iai1ities

FH OIC -AI2

Current assetsinentories

Current 1iai1ities

*.50

&.3

+.03

*.+5

.45

5.54

5.60

4.65

6.&*

5.&5

Fi,e% A$$et$ t" Net :"rt+

>ixed assets Net /ixed assets

Net #ort"

*+art S+"7ing Net Fi,e% A$$et$ t" Net :"rt+


5



Inter#retati"n

"e /ixed assets to net #ort" ratio are (ontinuous1y de(reasing. In &333*000

it #as ery "ig". In *000*00& it #as (onstant. (oming to *00&*00*= *00**00+ and

*00+*004 it is (ome do#n.

*urrent A$$et$ T" Net :"rt+

Current assets Current assets

Net #ort"

*+art S+"7ing *urrent A$$et$ t" Net :"rt+

Inter#retati"n

"e ratio o/ '', is /1u(tuating /or a11 t"is years. It #as +0.00 /or t"e year

ending *000. In t"e year *00& in(reased to +&. and /or t"e year *00* it #as

de(reased to *3.0* and it #as in(reased to +*.30 /or t"e year *00+.again it is 1arge1y

in(reased to +6.&0 /or t"e year ending *004.maintaining t"e e//i(ient uti1iation

(urrent assets /or t"is year.


0

5

10

15

20

25

30

35

40

year 1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

Series1

6

6



*urrent Lia4ilitie$ T" Net :"rt+

Current 1iai1ities Current 1iai1ities

o net #ort"

Net #ort"

*+art S+"7ing *urrent Lia4ilitie$ T" Net :"rt+

Inter#retati"n

"is ratio is "ig"er in t"e year &333*000. It is (ontinuous1y de(reased it is a

good sign /or t"e (ompany. In t"e year *00&*00* t"is ratio is ery 1o# i.e. +.3.

Again it in(reased in t"e year *00**00+ and *00+*004 it #as 5. and 5.30.

*alculati"n O& Rati"’$

Exp1anation &333

*000

*000

*00&

*00&

*00*

*00*

*00+

*00+

*004

>IQE) A$$E$ 2 NE D2-%

Net /ixed assets W &00

Net #ort"

• C--EN A$$E$ 2

NE D2-%

Current assets W &00

Net #ort"

X C--EN ,IABI,IIE$

2 NE D2-%

Current 1iai1ities W &00 Net #ort"

.5+

+0.00

&&.35

.4

+&.5

&0.*

*.+&

*3.0*

+.3

0.6

+*.30

5.

6.3

+6.&0

5.30




Acti<ity Rati"

>unds o/ (reditors and o#ners are inested in arious assets to generate sa1es

and pro/its. Better t"e management o/ assets= t"e 1arger t"e amount o/ sa1es. A(tiity

ratios are emp1oyed to ea1uate t"e e//i(ien(y #it" #"i(" t"e /irm manages and

uti1ies its assets. "is ratio a1so (a11ed turnoer ratio e(ause t"ey indi(ate t"e speed

#it" #"i(" assets are eing (onerted or turned oer et#een sa1es and assets

genera11y re/1e(ts t"at assets are managed #e11.

Ty#e$ "& Acti<ity Rati"

Cas" turnoer ratio= )etors turnoer ratio= Co11e(tion period= Doring (apita1

ratio and ota1 asset ratio

• *a$+ Turn"<er Rati"

>ormu1a:

Cas" turnoer ratio Net annua1 sa1es

Cas"

*+art S+"7ing Net Annual Sale$ t" *a$+


0

2

4

6

8

10

12

14

1

year

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004



Inter#retati"n

"e ratio o/ '', #as 5.* /or t"e year ending *004. It is in(reased to &*.6* /or

t"e year ending *000. Again it de(reased to 3.5&= .+ 7 6.06 /or t"e year ending

*00&= *00* and *00+ respe(tie1y. "e (as" turnoer ratio is (ontinuous1y de(reasing.

• De4t"r$ Turn"<er Rati"

It indi(ates t"e e1o(ity o/ det (o11e(tion o/ t"e /irm. In simp1e #ords= it

indi(ates t"e numer o/ times aerage detors are turned oer during a year.

)etors turnoer ratio Net annua1 sa1es

Aerage )etors

*+art S+"7ing De4t"r$ T" Sale$

Inter#retati"n

"e '', )etors turnoer ratio "as een (ontinuous1y de(reasing /rom past

/our years i.e. *000= *00&= *00* and *00+. "is means t"at t"e (ompany is not

rea1iing its money /rom its detors or it (an a1so mean t"at t"e (ompany is not

generating more (as" sa1es.


0

2

4

6

8

10

12

14

16

18

year 1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

Series1

3

3



• :"r8ing *a#ital Turn"<er Rati"

Doring (apita1 o/ a (on(ern is dire(t1y re1ated to sa1es. "e (urrent assets 1ie

detors= i11s re(eia1es= (as"= sto( et(. ("ange #it" t"e in(rease or de(rease in

sa1es. "e #oring (apita1 is taen as Doring (apita1 (urrent assets (urrent

1iai1ities.

Doring (apita1 Net annua1 sa1es

urnoer ratio

Doring (apita1

*+art S+"7ing Net Annual Sale$ T" :"r8ing *a#ital

Inter#retati"n

"e #oring (apita1 turnoer ratio is 6.6& times in *000 7 t"e same is redu(ed

y 5.+ times in *00&. In *00* and *00+ it is /urt"er redu(ed y +.6& 7 +.. In *004

it is in(reased /rom .+3 times. "e #oring (apita1 turn oer ratio is 1o# in *000=

*00&= *00*= and *00+ #"en (ompared to *004.

• T"tal A$$et$ Turn"<er

"is ratio s"o#s t"e /irms ai1ity in generating sa1es /rom a11 /inan(ia1

resour(es (ommitted to tota1 assets.


0



ota1 assets turnoer $a1es

ota1 asset

*+art S+"7ing Sale$ T" T"tal A$$et

Inter#retati"n

"e ota1 assets turnoer ratio o/ '', "as een in(reasing /or t"e 1ast t#o

years i.e. *00+ and *004. "e "ig"er assets turnoer ratio eing in t"e year *004 i.e.

&.40 7 1o#est eing in t"e year *00* i.e. &.00. "e (ompany is uti1iing its /ixed

assets e//e(tie1y t"an ear1ier years.


&



*alculati"n O& Acti<ity Rati"’$

Exp1anation &333

*000

*000

*00&

*00&

*00*

*00*

*00+

*00+

*004

FH CA$% -N2VE- Net annua1 sa1es

Cas"

F( H D2-ING CA'IA,

-N2VE-

Net annua1 sa1es

Doring (apita1

FdH )EB2-$ -N2VE-

Net annua1 sa1es

)etors

FeH 2A, A$$E$

-N2VE- $a1es

ota1 assets

&*.6*

6.6&

&6.55

&.&6

3.5&

5.+

&5.65

&.&+

.+

+.6&

&4.++

&.00

6.06

+.

&&.

&.&&

5.*

.+3

&+.3+

&.40

!r"&ita4ility Rati"

'ro/it is t"e di//eren(e et#een -eenues and Expenses oer a period o/ time.

'ro/it is t"e u1timate output o/ a (ompany and it #i11 "ae no /uture i/ it /ai1s to mae

su//i(ient pro/its. "e pro/itai1ity ratios are (a1(u1ated to measure t"e operating

e//i(ien(y o/ t"e /irm. Besides t"e management= t"e (reditors and t"e o#ners are a1so

interested in t"e pro/itai1ity o/ t"e /irm. "is is possi1e on1y #"en t"e (ompany

earns enoug" pro/its.

Ty#e$ O& !r"&ita4ility Rati"$

Gross pro/it margin= Net pro/it margin= Earning per s"are= )iidend payout

ratio= )iidend earning ratio and 'ri(e earning ratio

Gr"$$ #r"&it margin


*



"e Gross pro/it ratio is a1so (a11ed t"e aerage mar up ratio. It is (a1(u1ated

y (omparing t"e Gross pro/it o/ t"e /irm #it" t"e Net sa1es as /o11o#s:

G' ratio Gross pro/it W &00

Net sa1es

*+art S+"7ing Gr"$$ !r"& T" Net Sale$

Inter#retati"n?

"e operating pro/it margin is "ig" in t"e year *00& and *00+. and t"en t"e

operating pro/its "as redu(ed in t"e year *000= *00*= *004 t"at is e(ause o/ in(rease

in t"e inentory "ig" (ost o/ produ(tion and ine//i(ient uti1iation o/ (urrent as #e11 as

/ixed assets. "e "ig"est eing in t"e year *00+ i.e. +&.&3 7 t"e 1o#est eing in t"e

year *00* is *.34.

Net !r"&it Margin

Net pro/it margin ratio esta1is"es et#een net pro/it and sa1es and indi(ates

Manu/a(turing= Administration and se11ing t"e produ(ts.

Net pro/it margin 'ro/it a/ter taxes

$a1es


0

5

10

15

20

25

30

35

year 1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

Series1

+

+



*+art S+"7ing !r"&it a&ter Ta, T" Sale$

Inter#retati"n

"e Net pro/it margin e"aes same as t"e operating pro/its?Gross pro/its

margin. "e "ig"er operating expensie eing in t"e year *00+ and t"e 1o#est in t"e

year *000.

Earning !er S+are

Earning per s"are s"o#s t"e pro/itai1ity o/ t"e /irm on a per s"are asis= it

does not re/1e(t "o# mu(" is paid as diidend and "o# mu(" is retained in t"e

usiness.

Earning per s"are 'ro/it a/ter taxes

Numer o/ (ommon s"are


4



*+art S+"7ing !r"&it A&ter Ta,e$ T" Num4er O& *"mm"n S+are$

Inter#retati"n

E'$ as a measure o/ pro/itai1ity o/ a /irm /rom t"e o#ners point o/ ie#=

s"ou1d used. "e E'$ is (ontinuous1y in(reasing. In t"e year &333*000 it #as +05. in

t"e year

Di<i%en% !ay"ut Rati"

Earnings not distriuted to t"e s"are"o1ders are retained in t"e usiness. "us

retention ratio is & payout ratio.

)iidend payout ratio )iidend per s"are

Earnings per s"are

*+art S+"7ing Di<i%en% !er S+are T" Earning !er S+are


0

100

200

300

400

500

600

700

year 1999-

2000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

Series1

5

5



Inter#retati"n

"e diidend payout ratio is an important and #ide1y used ratio. In t"e year

&333*000 it #as 0.0 it #as (ontinuous1y de(reased /or t"e year *000*00&= *00&

*00*= *00**00+= 7 *00+*004. it #as 0.0*= 0.060= 0.066= 7 0.063.

Di<i%en% Earning$Ciel% Rati"

"e diidend yie1d and t"e earnings yie1d ea1uate t"e s"are"o1ders return in

re1ation to t"e maret a1ue o/ t"e s"are. "e earnings yie1d is (a11ed t"e earnings

pri(e ratio.

)iidend earnings ratio )iidend per s"are

Maret a1ue per s"are


6



*+art S+"7ing Di<i%en% !er S+are T" Mar8et >alue !er S+are

Inter#retati"n

"e diidend earning ratio is /1u(tuating. In t"e year &333*000 it #as 0.06& it

#as in(reased in t"e year *000*00& #as 0.0&= in t"e year *00&*00*= *00**00+

and *00+*004 it #as 0.055= 0.030 7 0.&&6.

!rice Earning$ Rati"

"e re(ipro(a1 o/ t"e earnings yie1d is (a11ed t"e pri(e earning ratio.

'ri(e earning ratio Maret a1ue per s"are? Boo a1ue per s"are

Earning per s"are

'?E -atio re/1e(ts inestor<s expe(tations aout t"e gro#t" in t"e /irm<s earnings.


0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

year 1999-

2000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

Series1



*+art S+"7ing Mar8et >alue !er S+are T" Earning !er

Inter#retati"n

"is ratio is popu1ar1y used y se(urity ana1yst to assess a /irm<s per/orman(e

as expe(ted y t"e inestors. It is (ontinuous1y de(reasing /rom t"e year *000*00& to

*00+*004.


0

20

40

60

80

100

120

140

Year 1999-

2000

2000-

2001

2001-

2002

2002-

2003

2003-

2004

Series1



*alculati"n O& !r"&ita4ility Rati"’$

Exp1anation &333

*000

*000

*00&

*00&

*00*

*00*

*00+

*00+

*004

Gr"$$ !r"&it

Gross pro/it W &00 Net sa1es

Net !r"&it

Net pro/it W &00

Net sa1es

Earning !er S+are

'ro/it a/ter tax W &00

No o/ (ommon s"ares

Di<i%en% !ay"ut Rati"

)iidend per s"are

Earning per s"are

Di<i%en% Earning Rati" )iidend per s"are

Maret a1ue per s"are

!rice Earning Rati"

Maret a1ue per s"are?oo

Earning per s"are

*.*

&4.*4

+05

0.0

0.06&

&*6.&4

+0.63

&5.4

+4

0.0*

0.0&

&00.&3

*.34

&5.

+56

0.060

0.055

&0.0

+&.&3

&.*5

5*6

0.066

0.030

+.&4

*.55

&6.46

644

0.063

0.&&6

53.4

*alculati"n O& Net :"rt+

!articular$ 621--- 1---21--6 1--621--1 1--121--5

>ixed Assets 5&*+5&+5.43 56&45.3 644++&.30 6*0**5.4Inestments 3500.00 3500.00 4500.00 4500.00

Current Assets &6*34.5* *+43400. *43343.06 +4+6666.45

,ess:

'ayment o/

Adan(e tax

0.00 0.00 0.00 0.00

3---3.5--6 H1535/.3/ H01H6H-/ 66-.3501

,ess:

2utside

,iai1ities

$e(ured ,oans 0.00 0.00 0.00 0.00

nse(ured

,oans

0.00 0.00 0.00 0.0

0

Current

1iai1ities 7

proisions

4*+4.04 6*354.+6 ++5456*.+ 6&+4656.

5

,ess: 'roision

/or tax

0.00 &045.00 0.00 0.0

0

Net 7"rt+ /1.5-1.3 303H6H-0- H/-35/6H- 6-005553.


3



Fin%ing$

"e sa1es o/ t"e (ompany are in(reasing so is t"e pro/its. In *00+*004 t"e

(ompany earned t"e "ig"er turnoer. 'ro/it in t"e 1ast /ie years o/ (omparison= t"e

ma!or portion is (ontriuted y sa1es o/ t"e (ompany.

"e (ompany<s pro/it oer t"e 1ast /e# years is in(reasing1y "ig". "e in(ome

o/ t"e (ompany is in(reasing at a steady rate.

"e $"are (apita1 o/ t"e (ompany "as remained (onstant. "e (urrent assets o/

t"e (ompany "ae de(reased in *00**00+ and it in(reased in t"e year *00&*00* 7

*00+*004.

)etors are t"e ma!or (urrent assets t"at t"e (ompany "o1ds. "e detor<s

turnoer ratio is &+.3+ times in *00+*004.


!articular$ 1--521--0 1--021--. 1--.21--/

>ixed Assets 663&+.&5 &0*3*5*.&0 &*+4+6&+.06

Inestments 4500.00 4500.00 4500.00

Current Assets 45+660.6* 5460&6.0* 45*&+.*

,ess:

'ayment o/

Adan(e tax

0.00 0.00 0.00

650.031HH- 6.3..330561 1-H13H.63H

,ess:

2utside

,iai1ities

$e(ured ,oans 0.00 0.00 0.00

nse(ured

,oans

0.00 0.00 0.00

Current

1iai1ities 7

proisions

43*&*.45 *635.3& 6504*5*.

,ess: 'roision

/or tax

0.00 0.00 0.00

Net 7"rt+ 613-0-H/0 6031-0316 1-635.H-

30

30



"e (urrent ratio is in(reasing (ontinuous1y. In t"e year &333*000 it #as *.50.

It is in(reased to .45 in t"e year *00&*00*.

"e pro/itai1ity ratio "as improed oer t"e years due to in(rease sa1es and pro/its.


3&



1 2 RE*OMMANDATION AND *ON*LUSSION

Sugge$ti"n$

"e /irm is per/orming #e11 and its sa1es are in(reasing oer t"e years. But

sti11 t"e /o11o#ing is t"e suggestion i/ (onsidered #i11 proe to e ene/i(ia1 to t"e

(ompany.

• "ere is "uge inestment in t"e (urrent assets o/ t"e (on(ern.

• "e (urrent ratio o/ t"e /irm is ery mu(" "ig"er t"an t"e norma1 standards.

• "e /irm s"ou1d not unne(essari1y 1o( ex(ess money in t"e (urrent assets

t"an norma1 re;uirement o/ t"e usiness.

• "e (ost o/ goods so1d "ad in(reased (ontinuous1y /rom *004 to *005. "e

/irm s"ou1d gie attention to maximie t"e sa1e and minimie t"e dire(t (osts.

• "e 1i;uidity ratio o/ t"e (ompany is too "ig"= so t"e (ompany (an inest its

idea1 /unds in s"ortterm se(urities= #"i(" (an yie1d a /aora1e return to t"e

(ompany.

• "e (ompany (an inest in mutua1 /unds= #"i(" is more promising /or "ig"er

yie1d.

• 'o1y"ydron "as net #oring (apita1 more t"an re;uirements an un"ea1t"y sign

o/ pro/itai1ity o/ t"e (ompany.

nder t"e 1ig"t o/ t"e in/eren(es dra#n /rom t"e ana1ysis= it is no exaggeration

to (on(1ude #it" in/ormation t"at t"e oer a11 t"e /inan(ia1 ana1ysis is /air and

reasona1y good and t"at promising /uture a#aits t"e (ompany.


3*



*"nclu$i"n

Earning position o/ t"e (ompany is (ontinuous1y and positie1y in(reasing.

"e gross= operating and net pro/it margins are /aora1e. It maes uses some

apanese te("ni;ues= 1ie anan (ards= net #or system= !it et(. to manage its

inentories. Various dis(ount s("emes to (ontro1 and manage t"e a((ounts re(eia1e.

"e (ompany "as to eep an eye on its 1i;uidity position. As t"e 1i;uidity

position s"o#s /unds are 1ying id1e= sin(e t"ey are id1e= t"ey are not eing proper1y

uti1ied. "us pro/itai1ity o/ t"e in(ome may e a//e(ted. $o "ig" a 1i;uidity position

s"ou1d e aoided in order to maintain and improe t"e pro/itai1ity.


3+



*;A!TER 2 0

• A##en%i,

•Bi4li"gra#+y


34



A!!ENDIK!"ly+y%r"n !<t Lt%

!r"&it L"$$ Acc"unt &"r t+e year en%e% 56$t Marc+ 1---

$(" Amount F-sHIn(ome

$a1es

,ess: rade )is(ount

2t"er In(ome

Expenditure :

Materia1 Consumed

Emo1uments to and 'roisions

/or Emp1oyees Manu/a(turing Expenses

Administratie 7 $e11ing Expenses

Interest

)epre(iaton

'ro/it e/ore axation

'roision /or axation

Net 'ro/it

$"ort proision /or In(ome ax

Ba1an(e Broug"t >or#ard /rom

'reious Lear'ro/it aai1a1e /or appropriation

Appropriation :

rans/er to Genera1 -esere

)iidend

'roposedF>ina1H

Interim )iidend

'roision /or Corporate )iidend ax

Ba1an(ed Carried to Ba1an(e $"eet

I

,

M

N

2

&=455=063.0

6=*=66.44

4=66*=40&.+6

43*005.5

5=&54=40.&&

4+=36=*06.4

4=3+=4*4.&4*=**&=3+.4

5=55&=&5.60

5=50.00

*=46+=5&5.45

53=*0&=6.&4

&535*5+.3

5+*5000.00

&06*5+.3

&30*+.00435&+0.00

&&=&0+=645.3

3+&*500.00

0.00

*5000.00

3050.00

5+35.3

&&=&0+=645.3


35



!"ly+y%r"n !<t Lt%

!r"&it L"$$ Acc"unt &"r t+e year en%e% 56$t Marc+ 1--6

$(" Amount F-sH

In(ome

$a1es,ess: rade )is(ount

2t"er In(ome

Expenditure :

Materia1 Consumed


/or Emp1oyees

Manu/a(turing Expenses


Interest

)epre(iaton



Net 'ro/it

,ess: $"ort 'roision /or In(ome tax

Ba1an(e Broug"t >or#ard /rom

'reious Lear'ro/it aai1a1e /or appropriation

Appropriation :


'roposed )iidend

'roision /or Corporate )iidend ax


I

,

M

N

2

3+=&3=+53.*5=+&5=5**.44

6=50+=+6.&

43=63&.+

=00*=5*.54

43=54=&*5.+3

5=364=+*3.60

*=&54=&++.33

5=6*&=+5.00

&=+5.00

+=04&=6+.6+

66=+6=+54.6&

*0=6+5=&+.3+

=*40=000.00

&+=+35=&+.3+

&0=&3&.00

5=+35.3&4=&00=+.30

&*=000=000.00

366=0+.50

3=5+6.00

&=0+5=05.40

&4=&00=+.30


36



!"ly+y%r"n !<t Lt%


$(" Amount F-sH

In(ome


2t"er In(ome

Expenditure :

Materia1 Consumed


/or Emp1oyees



Interest

)epre(iaton



Ex(ess? $"ort 'roision /or In(ome ax

Net 'ro/it

Ba1an(e Broug"t >or#ard /rom'reious Lear

'ro/it aai1a1e /or appropriation

Appropriation :


)iidend

'roposedF>ina1H

Interim )iidend

'roision /or Corporate )iidend ax Ba1an(ed Carried to Ba1an(e $"eet

I

,

M

N

2

30=&6=&.50&&=3++=53.00

=*4*=53.50

0=35.*

3=&*+=434.**

44=3=400.++

6=*4=6&6.00

&=33=+.56

4=+6=&0.++

&=605.00

+=6&5=+63.&

6&+=365=540.0+

&=*6=354.&3

F5=500=000.00H

&3&=50&.00

&*=4&=455.&3

&=0+5=05.40

&+=454=*60.53

&*=000=000.00

*03=*50.00

43=&*.50

6=40.004&=&.03

&+=454=*60.53


3



!"ly+y%r"n !<t Lt%


'arti(u1ars $(" Amount F-sH

In(ome


2t"er In(ome

Expenditure :

Materia1 Consumed


/or Emp1oyees



Interest

)epre(iaton



)e/erred ax Ad!ustment

Ex(ess? $"ort 'roision /or In(ome ax

Net 'ro/it Ba1an(e Broug"t >or#ard /rom

'reious Lear


Appropriation :


)iidend:

'roposedF>ina1H

Interim )iidend

'roision /or Corporate )iidend ax Ba1an(ed Carried to Ba1an(e $"eet

I

,

M

N

2

&*+=05=&3.30&6=6*+=34*.00

&06=4+4=.30

&=&*=&0*.30

&0=56&=0.0

53=5&=046.0&

6=0*&=354.*0

*=50+=04*.4&

5=34=3*.63

&6=35.00

+=3+*=*46.&4

=3=&56.45

*3=54=*4.+5

F&0=000=000.00H

&=+5=05.00

&50&+.00

&=+6=63.+5

4&=&.03

&=6=+3.44

&6=000=000.00

&=**0=6*5.00

0.00

&56=+3+.00&=403=+3.44

&6=+3.44


3



!"ly+y%r"n !<t Lt%



In(ome


2t"er In(ome

Expenditure :

Materia1 Consumed


/or Emp1oyees



Interest

)epre(iaton




Ex(ess?s"ort proision /or In(ome tax

Net 'ro/it Ba1an(e Broug"t >or#ard /rom

'reious Lear


Appropriation :


'roposed )iidend

Corporate diidend ax


I

,

M

N

2

&56+05&.+4*&*66&&.00

&+6+64++6.+4

&403&.0

138248428.14

3356+0.0

0&35+.+0

++6&5+.00

03+.

0.00

44*4&&5.*3

102864206.26

+5+4**&.

&&000000.00

&3*&35.00

0.00

**4560*6.

&403+3.44

23865406.32

*0000000.00

&563+5.00

*0503.00

*0303++.+*

23865406.32


33



!"ly+y%r"n !<t Lt%

!r"&it L"$$ Acc"unt &"r t+e year en%e% 56$t Marc+ 1--.


In(ome


2t"er In(ome

Expenditure :

Materia1 Consumed


/or Emp1oyees



Interest

)epre(iaton




Ex(ess?s"ort proision /or In(ome tax

Net 'ro/it

Ba1an(e Broug"t >or#ard /rom'reious Lear


Appropriation :


'roposed )iidend

Corporate diidend ax


I

,

M

N

2

&34=+3&=*5.3&*6=46&=3.00

&6=3*3=*63.3&

+=40=*+.66

&&=++=03+.5

&0&6&+*0.5&

&04&006.00

+&+4.**

43046.&6

0.00

503&*4.5

&+05364.4

404403.&0

&+000000.00

&+4+3&.00

0.00

*6&+443&.&0

*0303++.+*

***54*4.4*

*+&5&06.00

&4+5.00

*53*+5.00

*36646.4*

***54*4.4*


&00



!"ly+y%r"n #<t Lt%

Balance S+eet a$ at 56$t Marc+ 1---

'arti(u1ars

$our(es o/ >unds

$"are"o1ders >unds

aH $"are Capita1 H -esere 7 $urp1us

,oan >und

$e(ured ,oans

nse(ured ,oans

ota1

App1i(ation o/ >unds

>ixed Assets

Gross B1o(

)epre(iation Net B1o(

Capita1 #or in progress

Inestments

Current Assets ,oans 7 Adan(es

Inentory

$undry )etors

Cas" 7 Ban a1an(e

2t"er (urrent Assets

,oans 7 Adan(es

Current ,iai1ities 7 'roisions

Current ,iai1ities

'roision

Net *urrent A$$et

T"tal

$(".

AB

C

)

E

>

Amount

+=4=500.0053=04*=35.3

6&=0**=&*.3&

&&=3&4=35.*

43=&0=++*.03*&*0+.40

+=3*=0*6.4

450303+.46

53&+35.0

*=+4&.

4=+*3=44.65

&=6*=34.5*

64+4.04

&0+450.00

=4=*+4.04

Amount

6*=5+0=*35.3

6*=5+0=*35.3

5&=*+5=&+5.43

3500.00

661H.//-0H

/1.5-1.0

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM &0&

&0&



!"ly+y%r"n #<t Lt%

Balance S+eet a$ at 56$t Marc+ 1--6

'arti(u1ars

$our(es o/ >unds

$"are"o1ders >unds


,oan >und

$e(ured ,oans

nse(ured ,oans

ota1


>ixed Assets

Gross B1o(

)epre(iation

Net B1o( Capita1 #or in progress

Inestments


Inentory

$undry )etors

Cas" 7 Ban a1an(e


,oans 7 Adan(es


Current ,iai1ities

'roision

Net *urrent A$$et

T"tal

$(".

AB

C

)

E

>

Amount

+=4=500.00&=*0+=*05.40

*=445=40&.06

&4=43*=454.35=35*=346.0

66&=&*.30

5=6+6=+&.45

5=5*4=&4.*

3=03*=050.55

5=444.

+4+453.4

*+=43=400.

6=+5=*45.6

&=+*4=0.50

=6*=354.+6

Amount

4=630=05.40

4=630=05.40

5=6&4=5.3

3500.00

6/'-//'00/01

30'/-'3-.0-

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM &0*

&0*



!"ly+y%r"n #<t Lt%


'arti(u1ars

$our(es o/ >unds

$"are"o1ders >unds


,oan >und

$e(ured ,oans

nse(ured ,oans

ota1


>ixed Assets

Gross B1o( )epre(iation

Net B1o(


Inestments


Inentory

$undry )etors

Cas" 7 Ban a1an(e


,oans 7 Adan(es


aHCurrent ,iai1ities

H'roision

Net *urrent A$$et

T"tal

$(".

AB

C

)

E

>

Amount

+=4=500.00*=56=&&.03

=5+5=00.3

&6=*=54&.36*=*46=46.00

*=&3=+64.30

6++&0.3&

54543*.54

&0=53=534.6&

30*4.00

*5+06*3.00

*4=33=43.06

*3=53=3+0.

+34=6+*.00

+=+54=56*.

Amount

6=0+=6&.03

6=0+=6&.03

64=44+=+&.30

4500.00

16'/1.'1H/6

H/'-35'/6H-

BELGAUM ISTITUTE OF MANAGEMENT STUDIES (MBA) BGM &0+

&0+



!"ly+y%r"n #<t Lt%


'arti(u1ars

$our(es o/ >unds

$"are"o1ders >unds


,oan >und

$e(ured ,oans

nse(ured ,oans

)e/erred ax Ba1an(e

)e/erred ax 1iai1ities

Y1essZ )e/erred ax assets


>ixed Assets


Net B1o(


Inestments


Inentory

$undry )etors

Cas" 7 Ban a1an(e


,oans 7 Adan(es


Current ,iai1ities

'roision

Net *urrent A$$et

T"tal

$(".

AB

C

)

E

>

Amount

+=4=500.00=4*5=&&.44

&+=&06=+5*.00

50=**6.00

3*=64=5*4.&6

&535.+*+30466.4

**305.30

5=6*=566.50

=36+=006.*3

&=5+3=003.

4+=0*4.00

&=353=06&.

+4=+66=66.45

450*4*.5

&6+*&4.00

6=&+4=656.5

Amount

3&=3&+=*&&.44

&*=5*6=&*6.00

&04=4+3=++.44

6=*0*=*5.4

4500.00

1H'151'-663-

6-0'05'55300


&04



!"ly+y%r"n #<t Lt%


'arti(u1ars

$our(es o/ >unds

$"are"o1ders >unds


,oan >und

$e(ured ,oans

nse(ured ,oans


ota1


>ixed Assets


Net B1o(


Inestments

)e/erred ax Asset


Inentory

$undry )etors

Cas" 7 Ban a1an(e


,oans 7 Adan(es


Current ,iai1ities

'roision

Net *urrent A$$et

T"tal

$(".

AB

C

)

E

>

Amount

+=4=500.00&03&0*65.+*

&03+6&0.5*

**334*0.*

6+6+*.*5*+0550.30

*5535.3&

35*&.+6

*504**3.*5

6+3+0.00

*36*6.&0

*+=43=400.

54*&&45.45

*006.00

43*&*.45

Amount

&&*53465.+*

&&*53465.+*

&45**+46.00

&*&&&&&.+*

663&+.&5

4500.00

60*5.00

5H53.00H63

61366366651


&05



!"ly+y%r"n #<t Lt%

Balance S+eet a$ at 56$t Marc+ 1--.

'arti(u1ars

$our(es o/ >unds

$"are"o1ders >unds


,oan >und

$e(ured ,oans

nse(ured ,oans


ota1


>ixed Assets


Net B1o(


Inestments


Inentory

$undry )etors

Cas" 7 Ban a1an(e


,oans 7 Adan(es


Current ,iai1ities

'roision

Net *urrent A$$et

T"tal

$(".

AB

C

)

E

>

Amount

+=4=500.00&++=&+4=&46.4*

&*6=434=000.3 *5=6&=4*5.53

&00=**=55.*0

&=363=35&.30

&+=03=&5*.00

&=*=+50.+

*+=+3=46.5

&04=46.0

5+&*=&53.4

60=0*=6.**

=*=635.3&

*6*&+*&.33

&04500&.30

Amount

&+6=6*&=646.4*

&5=3=*+3.00

&5*=4&3=5.4*

&0*=3*=5*.&0

4500.00

0/11H.H51

152,419885.32


&06



1 2 BIBLIOGRA!;C

&. 'rasanna C"andra= 8>inan(ia1 management9

ata MC Gre# %i11 'u1is"ing. 'p 55 50

*. I.M pandey= 8>inan(ia1 management9

Vias pu1is"ing= '' &0 &0.

+. -.' -ustagi= 8>inan(ia1 management9

Ga1gotia 'u1is"ing Company

4. M.L "an 8>inan(ia1 management9

&0

Documents

A Study on Analysis of Financial Statements of Polyhydron Pvt. Ltd