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    1.1. ABOUT THE STUDY

    Accounting is the process of identifying, measuring and communicating economicinformation to permit informed judgements and decisions by users of the information. It

    involves recording, classifying and summarising various business transactions. The endproducts of business transactions are the financial statements comprising primarily the position

    statement or the balance sheet and the income statement or the profit and loss account.

    MEANING OF FINANCIAL STATEMENTS

    A financial statement is a collection of data organised according to logical and

    consistent accounting procedures. Its purpose is to convey an understanding of some financial

    aspects of a business firm. It may show a position at a moment in time, as in the case of abalance sheet, or may reveal a series of activities over a given period of time, as in the case of

    an income statement.

    FINANCIAL STATEMENTS:

    The term financial statement or published accounts refer to the:

    1) Balance Sheet.

    2) rofit ! "oss Account.

    3) #irector$s %eport.

    4) Auditor$s %eport

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    NATURE OF FINANCIAL STATEMENT

    According to john &. 'yer, (The financial statements are composed of data which are

    the result of a combination of )*+ recorded facts concerning the business transactions, )+

    conventions adopted to facilitate the accounting techni-ue, )+ postulates, or assumptions made

    to and )/+ personal judgements used in the application of the conventions and postulates.0

    The nature and accuracy of the data shown in the financial statement are affected by the

    following facts:

    BASED ON RECORDED FACTS

    The transactions affecting the business are recorded in the boo1s and shown in thefinancial statements at the same values. 2or eg: fi3ed assets are recorded in the boo1s at cost

    price and shown in the business at cost price less depreciation. The financial statements do not

    disclose facts which cannot be recorded in boo1s. 4owever, recently such facts are mentioned

    as foot notes to ma1e the financial statement more meaningful and useful.

    ACCOUNTING CONVENTIONS

    The financial statements are prepared by following certain accounting conventions and

    principles. Accounting itself is a dynamic science of accountants has developed, from time to

    time, a member of conventions on the basis of e3perience.

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    5hen accounts are finali6ed, some conventions are followed: for eg. A part of particulare3penses is charged to profit ! loss account )revenue+ and the rest may be capitali6ed. A

    number of conventions have been developed for valuation of stoc1, debtors, etc. Therefore data

    shown in the financial statements are subject to the validity of conventions used in theirpreparation.

    POSTULATES

    Accountants always ta1e some facts as accepted or 7ostulates$. In other words,

    business transactions are recorded on certain assumptions such as going concern, stable value

    of rupee, profit accrual, etc. These postulates or assumptions are reflected in the financial

    statements.

    PERSONAL JUDGMENTS

    8ven though a number of conventions and assumption have been propounded inaccountancy, their use is affected by the personal judgment of accountants. That is why

    financial statements prepared by two different persons of the same concerns give dissimilar

    results and this is due to different personal judgments in using or applying particular

    conventions. ersonal judgments$ of accountants affects the amount 1ept as reserve for

    doubtful debts, amount of depreciation on fi3ed assets, valuation of stoc1 etc. The financial

    statements are affected by the personal judgments of accountants and as such they are

    subjective documents.

    OBJECTIVES OF FINANCIAL STATEMENTS

    2inancial statements are the sources of information on the basis of which conclusions are

    drawn about the profitability and financial position of a concern. the accounting principles

    board of America )AB+ states the following objectives of financial statement:

    1. To provide reliable financial information about economic resources and obligations of a

    business firm.

    2. To provide other needed information about changes in such economic resources and

    obligations.

    3. To provide reliable information about changes in net resources arising out of business

    activities.

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    4. To provide financial information that assists in estimating the earning potentials of

    business

    5. To disclose, to the e3tent possible, other information related to the financial statements

    that is relevant to the needs of the users of these statements.

    INTERPRETATION OF FINANCIAL STATEMENTS:

    2inancial statement is to determine the solvency of the business form its balance sheet,

    to measure the efficiency of operation or the profitability from its income statement and to

    appraise financial statement as compared with similarly situated concerns0.

    NATURE OF THE RATIO ANALYSIS

    %atio analysis is a techni-ue of analysis and interpretation of financial statements. It isthe process of establishing and interpreting various ratios for helping in ma1ing certain

    decisions. 4owever, ratio analysis is not an end in itself. It is only a means of better

    understanding of financial strengths and wea1ness of the firm. 9alculation of mere ratios does

    not serve any purpose, unless several appropriate ratios are analy6e and interpreted. There are a

    number of ratios, which can be calculated from the information given in the financial

    statement, but the analyst has to select the appropriate data and calculate only a few

    appropriate ratios from the same 1eeping in mind the objective of analysis. The ratios may be

    used as a symptom li1e blood pressure, the pulse rate or the body temperature and their

    interpretation depends upon the calibre and competence of the analyst. The following are the

    four steps involved in the ratio analysis:

    o Selection of relevant data from the financial statements depending upon the objective

    of the analysis.

    o 9alculation of appropriate ratios from the above data.

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    o 9omparison of the calculated ratios of the same firm in the past, or the ratios

    developed from projected financial statements or the ratios of some other firms or the

    comparison with the industry to which the firm belongs.

    o Interpretation of the ratios.

    INTERPRETATION OF RATIOS

    SINGLE ABSOLUTE RATIO

    enerally spea1ing one cannot draw any meaningful conclusion when a single ratio is

    considered in isolation. But single ratio may be studied in relation to certain rules of thumb

    which are based upon well proven conventions as for e3ample :* is considered to be a good

    ratio for current assets to current liabilities.

    GROUP OF RATIOS

    %atios may be interpreted by calculating a group of related ratios. A single ratio

    supported by other related additional ratios becomes more understandable and meaningful. 2ore3ample, the ratio of current assets to current liabilities may be supported by the ratio li-uid

    assets to li-uid liabilities to draw more dependable conclusions.

    HISTORICAL COMPARISON

    ;ne of the easiest and most popular ways of evaluating the performance of the firm isto compare its present ratios with the past ratios called comparison overtime. 5hen financial

    ratios are compared over a period of time, it gives an indication of the direction of change and

    reflects whether the firm$s performance and financial position has improved, deteriorated orremained constant over a period of time. But while interpreting ratios from comparison over

    time, one has to be careful about the changes, if any, in the firm$s policies and accounting

    procedures.

    PROJECTED RATIOS

    %atios can also be calculated for future standards based upon the projected or

    erforma financial statements. These future ratios may be ta1en as standard for comparison and

    the ratios calculated on actual financial statements can be compared with the standard ratios to

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    find out variance, If any. Such variances help in interpreting and ta1ing corrective action for

    improvement in future.

    INTER-FIRM COMPARISON

    %atios of one firm can also be compared with the ratios of some other selected firms

    in the same industry at the same period of time. This 1ind of comparison helps in evaluating

    relative financial position and performance of the firm. But while ma1ing use of such

    comparison one has to be very careful regarding the different accounting methods, policies and

    procedures adopted by different firms.

    A. MANAGERIAL USES OF RATIO ANALYSIS

    4elps in 2inancial 2orecasting and lanning

    4elps in communicating

    4elps in 9o/.ledged to add any one new technology per year to

    survive competition? we advanced from o3y acetylene gas stelliting to plasma spraying and

    from manual lathe to 9&9 lathe. 5e have now speciali6ed 5or1< centers for 'I using

    @empy 'I welding ower source. Although started with benign governmental orders, we

    find ourselves mostly busy now with alve Internals for the globlally renowned valve

    manufacturing '&9s. It was discovered that this was due to synthesi6ing our technological

    sense, with familial social opportunities, intertwined by ethics. 5e became, -uality minded,

    customer< friendly and environment friendly< everything, simultaneously. Today, we have

    e3panded to 'achinery building for #am shutters and 4oists li1e ear bo3es , %ope drums ,

    5al1 way bridges and iping. 5e also do 4igh ressure arts in 9S , "AS, SS and other 9%As

    to 9ustomer Specification.

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    % isone of the most sought after valve internal suborder people in south India and we

    decided to give our best to meet that challenge in coming years. ;ur artners are thin1ing and

    wor1ing closer than ever for this, seeing successC

    Our Missi!

    To be available as a hospitable and credible welding and machining super specialty

    shop, serving the original e-uipment manufacturers with reliable and certified components

    using metallurgically the correct materials, ma1ing *DDE effort to that effect to procure

    inspected and certified materials and process these with absolute traceability.

    GR R"s#!si$i%i&'

    % as a well

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    /. All 5elding rocedures are -ualified by Third arty agencies li1e Bureau eritas, "loyds

    %egister etc

    G. Inspection by AS&T "evel

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    = Titanium< ure ! Alloy TA5

    *D Aluminum AA*DDDDDD/DDDDDD

    Hpto G

    mmTA5'I

    ** Stellite casting Stellite

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    established on raw materials as re-uired. Fuality of the incoming goods and subcontractor

    supplied components are constantly chec1ed by Internal Inspectors. 2inal finished surfaces

    goods are subjected to *DDE visual and #imensional and Surface T chec1s by the Fuality

    Supervisors. All inspections are recorded and signed off by the Internal Inspectors concerned

    for the sa1e of accountability. 'onthly 83ecutive 'anagement 'eeting 1eeps an action

    trac1 of crucial decisions. 'achining Accuracies of D.D is average practice. 2ine 'achining

    is not subcontracted. Fuality #ocumentation #ossiers with material, welding and welder

    certifications are readily provided in compliance to contractual specifications. 5elding

    rocedures and welders are third

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    4. o a("ere to lai( (o9n Sstem )roce(ures an( or' Instructions in

    or(er to minimiCe 9asta*e to learn #rom lessons.

    5. o continuall monitor =ualit an( assess t"e *aps #or perennial

    competence.

    6. o en"ance 9or' culture an( usiness approac" ase( on aove #acts

    !ur %ana*in* partner, aruna'aran )ullat arran*e( t"us one (a to 9rite

    ol(l on our 9all, t"ese 9or(s 9"ic" came (eep #rom "is realiCations:

    "Goodwill and Quality are the only assets that Cometition cannot under sell

    or destroy"

    Busi!"ss Pr0"ss

    ec"nolo* an( In#ormation Ep *ra(ation

    Dra9in* evie9 an( ;stimation

    )lannin* an( )reparation o# Deliver Sc"e(ules

    )rocurement an( Incomin* Goo(s inspection

    Sucontract ?ssi*nments an( !r(er monitorin*

    on Destructive estin*

    Finis" %ac"inin* an( pac'in*

    Dispatc" an( +illin*

    S's&"4 , r Pr0"*ur"sSystem Procedures

    8ontract evie9

    )rocurement

    Sucontractin*

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    In"ouse Inspection

    8>8? )roce(ures

    Documentation 8ontrol an( ecor(s o# Bualit

    Internal ?u(itin*

    !or Procedures

    )S > el(er Buali#ication

    el(in* 8onsumales el( Bualit 8ontrol

    %aterial stora*e an( preservation

    %ac"iner %aintenance

    8aliration o# Inspection $ estin* ;=uipment

    D )roce(ures

    Heat reatment

    Hot pressin*

    H(ro est

    raceailit

    Sa#et

    Scrap (isposal

    D0u4"!& C!&r%

    G Documentation inclu(es:

    ; 2/1/4 3.1 8erti#ication ase( on "ir( )art &a est eports

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    Visual an( Dimensional Inspection eports

    D an( !t"er est eport.

    ecor(s o# el(in* )roce(ure Speci#ications an( )Bs. itnesse( "ir(

    )art. 8erti#icate o# 8on#ormit.

    3u)%i&' Assur)!0" )!* C!&r%

    G "as as minimum, its o9n recor(e( Sstem an( or' proce(ures, compliance

    to 9"ic" is constantl monitore( t"rou*" unsc"e(ule( au(its (irectl partners.

    Bualit o# incomin* Goo(s an( Sucontractor mac"ine( components are

    constantl c"ec'e( Internal Inspectors.

    Final #inis"e( sur#aces > *oo(s are suecte( to 1//0 visual an( Dimensional an(

    Sur#ace D c"ec's t"e Bualit Supervisors.

    ?ll inspections are recor(e( an( si*ne( o## t"e Internal Inspectors concerne(,

    #or t"e sa'e o# accountailit.

    Clients & Recognition

    's 8

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    's @oso 2luid 9ontrols vt. "td, ala1ad

    's 'I" 9ontrols "td, Aluva.

    's. Severn locon India vt. "td, 9hennai

    's %evathi 8-uipments.

    's Schuf Specialty alves 9oimbatore.

    's Te3mo recision 9astings, ollachi.

    A'; ;LA' alves, 9oimbatore.

    R"0!i&i!s

    's #resser India < rade

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    2.1. OBJECTIVES OF THE STUDY

    1. To study the financial performance of the company.

    2. To ascertain the profitability position of the company.

    3. To access the solvency position of the company.

    4. To suggest ways and means to improve the present performance of the company.

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    2.2. SCOPE OF THE STUDY

    The study mainly focused on the 2inancial performance of the %

    Industries,9oimbatore. The Study could be used to review the 2inancial erformance of the

    company. The study gives a clear

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    2inance data re-uired for the Study has been obtained from the Secondary data.

    This study focuses only % Industries "td, for the period of G years DD>

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    2.;. RESEARCH METHODOLOGY

    %esearch in common parlance refers to a search for 1nowledge. ;nce can also define

    research as a scientific and systematic search for pertinent information on a specific topic.

    %esearch is an art of scientific investigation.

    1. RESEARCH DESIGN

    To research design used on the study is analytical research. The research has to analy6e

    the balance sheet, which is a historical data and derive conclusions from it.

    2. NATURE OF DATA

    The nature of data used for the study is secondary data. Because the data is collected

    from the balance sheet for the analysis part.

    ;. DATA COLLECTION

    The data needed for the study is being collected from the annual reports of the company

    and which is a secondary data.

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    RATIO ANALYSIS

    CURRENT RATIO

    9urrent ratio may be defined as the relationship between current assets and current

    liabilities. This ratio also 1nown as 5or1ing 9apital %atio is a measure of eneral li-uidity

    and is mostly used to ma1e the analysis of short

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    assets of the firm. This ratio can be calculated as under.

    %;%I8TA%L %ATI; M S4A%84;"#8% 2H T;TA" ASS8TS

    T;TA" ASS8TS M 2IP8# ASS8TS O 9H%%8&T ASS8TS

    INVENTORY TURNOVER RATIO

    Inventory turnover ratio is normally calculated as salesaverage inventory turnover

    ratio. This ratio is calculated as under.

    I&8&T;%L TH%&;8% %ATI; M &8T SA"8S I&8&T;%L

    OR?ING CAPITAL TURNOVER RATIO

    5or1ing capital turnover ratio indicates the velocity of utili6ation of net wor1ing

    capital. These ratios indicate the number of times the wor1ing capital is turned over in the

    course of year. This ratio can be calculated as

    5;%@I& 9AITA"

    TH%&;8% %ATI; M &8T SA"8S &8T 5;%@I& 9AITA"

    &8T 5;%@I& 9AITA" M 9H%%8&T ASS8TS

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    #8BT;%S TH%&;8% %ATI;#ebtor$s turnover indicates the velocity of debt collection of the firm. It indicates the

    numbers of average debtors are turned over during a year.

    #8BT;%S TH%&;8% %ATI; M &8T 9%8#IT A&&HA" SA"8S A8%A8 T;TA"

    #8BT;%S

    AVERAGE COLLECTION PERIOD

    The average collection period ratio represents the average number of days for which a

    firm has to wait before its receivables are converted into cash. The ratio can be calculated as

    A8%A8 9;""89TI;& 8%I;# M &H'B8% ;2 #ALS A8%A8

    9;""89TI;& 8%I;#

    CREDITORS TURNOVER RATIO

    It indicates the average number of days ta1en by firm to pay its creditors accounts

    payable includes creditors and bills payable.

    9%8#IT;%S TH%&;8% %ATI; M &8T 9%8#IT A&&HA" H%94AS8 A8%A8

    T;TA" 9%8#IT;%S

    AVERAGE PAYMENT PERIOD

    The average payment period ratio represents the average number of days ta1en by the

    firm to pay its creditors. This ratio indicates the velocity with which the creditors are turnover

    in relation to purchases.

    A8%A8 9;""89TI;& 8%I;# M &H'B8% ;2 #ALS 9%8#IT;%S TH%&;8%

    %ATI;

    23

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    GROSS PROFIT RATIO

    ross profit ratio measures the relationship of gross profit to net sales and is usually

    represented as percentage. This ratio is calculated as

    %;SS %;2IT %ATI; M )%;SS %;2IT &8T SA"8S+ Q *DD

    NET PROFIT RATIO

    &et profit ratio measures the relationship of net profit to net sales )after ta3+ and sales

    and indicate the efficiency of the management in manufacturing, selling, administrative and

    other activities of the firm. This ratio is the overall measures of the first profitability and is

    calculated as

    &8T %;2IT %ATI; M )&8T %;2IT &8T SA"8S+ Q *DD

    B.COMPARATIVE BALANCE SHEET

    9omparative balance sheet analysis is the study of the trend of the same item, group of

    items and computed items in two or more balance sheet of the same business enterprise on

    different dates. The comparative balance sheet has two columns is used to show increase in

    figure, the fourth column may be added for giving percentage of increase or decrease.

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    2.

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    general fall in cost of production, decrease in the placement of order is due to continued show

    down in the capital goods sectors and lac1 of investment, turnover of the new products

    continued / percent at the turnover and spares turn over was %s.GK/ million. 5hile turn over

    increased by *D percent other e3penses were strictly controlled.

    aramasivam. #. a research student has done the project topic for financial

    performance analysis of TNPL i! ?)rurduring the period of DD. The main objectives of to

    measure the li-uidity position, leverage effect, profitability and activity of the company. The

    findings are the company is heavily good li-uidity position and we can say with out any default

    the company can pay its liability as on the due dates, the gross profit ration is concerned the

    T&" has a good gross profit margin, the net profit ratio of T&" is a satisfaction before the

    e3pansion programmed, as for as the financial leverage ration is concerned T&" us at far. But

    in the year DD*, the company has lost its magnitude of the financial leverage.

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    ANALYSIS + INTERPRETATION

    TABLE -;.1

    CURRENT RATIO

    YEAR CURRENT ASSET

    @ LA?HS

    CURRENT LIABILITIES

    @ LA?HS RATIO

    D N DK */G K=> .DK

    DKN D> *K=> *DK> *.K

    D>N D= *K>= *K= *.

    D= N *D /D/= G>K *.*

    *D N ** */ >=G= *.D

    INTERPRETATION

    The above table indicates the current ratio of the year DDG is .DK.who is shows the

    decrease as *.K in DD, *. in DDK, *.* in DD> and finally it reached *.D in DD=. The

    table indicates current ratio is not satisfactory.

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    CHART ;.1

    CURRENT RATIO

    2./7

    1.67

    1.26

    1.13

    1.6

    /

    /.5

    1

    1.5

    2

    2.5

    /6 H /7 /7 H/- /- H /@ /@ H 1/ 1/ H 11

    '")r

    P

    "r0"!&)-"

    2-

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    TABLE ;.2

    LI3UID RATIO

    YEAR LI3UID ASSETS

    @ LA?HS

    CURRENTLIABILITIES

    @ LA?HS

    RATIO

    D N DK G> K=> D.>

    DK N D> K== *DK> D.K/

    D> N D= *= *K= D.>*

    D= N *D >G G>K D.

    *D N ** /**G >=G= *.DG

    INTERPRETATION

    The above table indicates li-uidity ratio have got achieved year by year as D.> in DDK,

    D.K/ in DD>, D.>* in DD= and finally it reaches to *.DG in D**.It shows that li-uid ratio of the

    company is satisfactory.

    2@

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    CHART -;.2

    LI3UID RATIO

    /.-2

    /.74

    /.-1

    /.66

    1./5

    /

    /.2

    /.4

    /.6

    /.-

    1

    1.2

    /6 H /7 /7 H /- /-H /@ /@ H1/ 1/ H 11

    '")r

    P"r0"!&)-"

    Series*

    3/

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    TABLE ;.;

    DEBT E3UITY RATIO

    YEAR DEBT

    @ LA?HS

    E3UITY

    @LA?HS

    RATIO

    D N DK > */K/ .*

    DK N D> D/=* *K// *.KG

    D> N D= * / D.>>

    D= N *D /*= =/= *.*D

    *D N ** ==KD GG*G .>D

    INTERPRETATION

    The above table indicates the debt e-uity ratio that increased from .* in DDK to *.KG

    in DD>. Suddenly got decrease in DD= as D.>> ! *.*D in D*D ! finally reaches to .>D in

    D**. The debt e-uity ratio of the company is satisfactory.

    31

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    94A%T N .

    DEBT E3UITY RATIO

    /

    /.5

    1

    1.5

    2

    2.5

    3

    /6 H /7 /7 H /- /- H /@ /@ H 1/ 1/ H 11

    Y")r

    #"r0

    "!&)-"

    %ATI;

    32

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    TABLE-;. *K// GKG D.

    D> N D= / K/*=* D.G

    D= N *D =/= *G*G D./

    *D N ** GG*G *K/== D.D

    INTERPRETATION

    The above table indicates the proprietary ratio. in the year DD= the ratio level is highest

    D.G. It suddenly decreased to D./ in D*D and suddenly decreased for coming years and

    finally reaches to D.D in D**, It shows that the proprietary ratio is not satisfactory.

    33

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    CHART ;.> =>=K .=D

    DK N D> />GD/ *DD*K /.>/

    D> N D= K K>K =.>

    D= N *D =*= **K G.*

    *D N ** **K/G */* G.D

    INTERPRETATION

    The above table indicates the inventory turnover ratio of the year DDK in .=D, it is

    suddenly increases to /.>/ in DD>!DD= and suddenly it is decreased for coming years DD>

    to DD=.The 9ompany maintain its inventory level in bad position. It shows not satisfactory in

    inventory management.

    35

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    CHART ;.=

    INVENTORY TURNOVER RATIO

    /

    1

    2

    3

    4

    5

    6

    7

    -

    @

    1/

    /6 H /7 /7 H /- /- H /@ /@ H 1/ 1/ H 11

    Y")r

    P"r0"!&)-"

    %ATI;

    36

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    TABLE-;.

    OR?ING CAPITAL TURNOVER RATIO

    YEAR NET SALES

    @ LA?HS

    NET OR?INGCAPITAL

    @ LA?HS

    RATIO

    D N DK >> >GDK /.GG

    DK N D> />GD/ K*> .K

    D> N D= K //= *.*K

    D= N *D =*= / D.*D

    *D N ** **K/G GG /.>*

    INTERPRETATION

    The above table indicates the wor1ing capital turnover ratios of the year DD in /.GG

    and suddenly increased in the yea DDK as .K and it increased in DD> as *.*K ! D.*D in

    DD= and finally reached /.>* in D**. It denotes inefficient utilisation of wor1ing capital. .

    37

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    CHART ;.

    OR?ING CAPITAL TURNOVER RATIO

    /

    5

    1/

    15

    2/

    25

    /6 H /7 /7 H /- /- H /@ /@ H 1/ 1/ H 11

    Y")r

    P"r0

    "!&)-"

    %ATI;

    3-

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    TABLE ;.

    DEBTORS TURNOVER RATIO

    YEAR NET CREDIT

    ANNUAL SALES

    @ LA?HS

    AVERAGE TOTAL

    DEBTORS

    @ LA?HS

    RATIO

    D N DK >> *KD .>

    DK N D> />GD/ *>G.G .GK

    D> N D= K *K*.G /.D

    D= N D= =*= *G= G>.GD

    *D N ** **K/G K>.G /./

    INTERPRETATIO

    The above table indicates the debtor$s turnover ratios for year DDK is .> it slightly

    increased in DD> as .GK and in for coming years G>.GD is DD=. It is decreased and finally it

    reaches to /./ isD*D. it shows the insufficient ban1 balance ! cash in hand. It is not

    favourable for the company.

    3@

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    CHART 3.7

    DEBTORS TURNOVER RATIO

    /

    1/

    2/

    3/

    4/

    5/

    6/

    7/

    /6 H /7 /7 H /- /- H /@ /@ H 1/ 1/ H 11

    Y")r

    P"r0"!&)-"

    %ATI;

    4/

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    TABLE-;.7

    AVERAGE COLLECTION PERIOD

    YEAR NO.OF. DAYS DEBTORSTURNOVER RATIO

    AVERAGECOLLECTION

    PERIOD

    D N DK G .> *.D=

    DKN D> G .GK *.K/

    D> N D= G /.D >.G

    D= N *D G G>.GD ./

    *D N ** G /./ >.D

    INTERPRETATION

    The above table indicates the Average 9ollection eriod year DDK is decreased and in

    for coming year it is increased year by year. 5hich indicates that the company reaches its

    collection period which is for the process. The average collection period is satisfactory.

    41

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    CHART ;.7

    AVERAGE COLLECTION PERIOD

    /

    2

    4

    6

    -

    1/

    12

    14

    16

    1-

    /6 H /7 /7H /- /- H /@ /@ H 1/ 1/ H 11

    '")r

    P"

    r0"!&)-"

    A8%A:8

    9;""89TI;& 8%I;#

    TABLE ;.5

    42

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    CREDITORS TURNOVER RATIO

    YEAR NET CREDIT

    ANNUAL PURCHASE

    @ LA?HS

    AVERAGE TOTAL

    CREDITORS

    @ LA?HS

    RATIO

    D N DK >> G D.K>

    DK N D> >> /D D.=G

    D> N D= G=D //D.G *./

    D= N *D >>D KK=.G *.*/

    *D N ** *D=G *DKD.G *./

    INTERPRETATION

    The above table Indicates the 9reditors Turnover %atios for the year DDK is D.=G and it

    is increased in for coming years and reaches to *./ in the year D**. The ratio indicates

    unfavourable condition for the company.

    43

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    CHART ;.5

    CREDITORS TURNOVER RATIO

    /

    /.2

    /.4

    /.6

    /.-

    1

    1.2

    1.4

    1.6

    /6 H /7 /7 H /- /- H /@ /@ H 1/ 1/ H 11

    Y")r

    P

    "r0"!&)-"

    %ATI;

    44

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    TABLE ;.16

    AVERAGE PAYMENT PERIOD

    YEAR NO.OF. DAYS CREDITORS

    TURNOVER RATIO

    AVERAGE

    PAYMENT

    PERIOD

    D N DK G D.K> /K.=G

    DK N D> G D.=G >/.*

    D> N D= G *./ K.=

    D= N *D G *.*/ D.*K

    *D N ** G *./ =/.G

    INTERPRETATION

    The above table indicates the Average ayment eriod to creditors in the year DDK is

    DD> is >/.*, but in the year the ratio level is low that /K.=G in DD, K.= in DD=,D.*K

    in DD> ! finally =/.G in D**. The "ow ratio indicates that the average payment period to

    creditors is good for the company.

    45

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    CHART ;.16

    AVERAGE PAYMENT PERIOD

    46

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    TABLE ;.11

    GROSS PROFIT RATIO

    YEAR GROSS PROFIT

    @ LA?HS

    NET SALES

    @ LA?HS

    GROSS PROFIT

    RATIO

    D N DK >= >> >/./=

    DK N D> /*KK />GD/ >G.=

    D> N D= *G=G K >/.KK

    D= N *D K=GD* =*= >G.

    *D N ** *DD=K> **K/G >=.D

    INTERPRETATION

    The above table clearly depicts the gross profit ratios from DD N DDK indicates a ratio

    of >/./= and against it has increased to >G.= in the year DDK N DD> and it is decreased to

    >/.KK in the year DD> N DD= and again it is increased to >G. in the year DD= N D*D and

    D*D < D** indicates a ratio of >=.D. It shows that they had increased the profit in sales.

    47

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    CHART ;.11

    GROSS PROFIT RATIO

    /

    -4.4@ -5.@2 -4.77 -5.3-@

    /

    1/

    2/

    3/

    4/

    5/

    6/

    7/

    -/

    @/

    1//

    I;? /6 H

    /7

    /7 H

    /-

    /- H

    /@

    /@ H

    1/

    1/ H

    11

    Y")r

    P"r0

    "!&)-"

    :%;SS %;2IT

    4-

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    TABLE - ;.12

    NET PROFIT RATIO

    YEAR NET PROFIT

    @ LA?HS

    NET SALES

    @ LA?HS

    NET PROFIT

    RATIO

    D N DK K/>K >> *=.G

    DK N D> =K= />GD/ D.DG

    D> N D= *>>> K G.=K

    D= N *D *G =*= .G/

    *D N ** GD **K/G *.==

    INTERPRETATION

    The above table indicates that the year DD N DDK net profit ratios is *=.G and in the

    year D*D N D** net profit ratio is *.==. It shows that net profit is increased.

    4@

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    CHART ;.12

    NET PROFIT RATIO

    /

    5

    1/

    15

    2/

    25

    3/

    35

    4/

    I;? /6 H /7 /7 H /- /- H /@ /@ H 1/ 1/ H 11

    Y")r

    P"r0"!&)-"

    &8T %;2IT

    TABLE ;.1;

    5/

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    COMPARATIVE BALANCE SHEET OF GR INDUSTRIES LIMITED

    PARTICULARS 2665-2616

    @ RS.I!

    %)/s

    2616-2611

    @ RS.I!

    %)/s

    INCREASE,

    DECREASE

    PERCENTAGE

    CHANGE @

    Ass"&s

    Inventories

    Sundry #ebtors

    9ash!Ban1balance

    "oans! Advances

    others

    2i3ed Assets

    Investments

    5or1ing>D

    /G=

    &I"

    =/

    /*

    &I"

    G./

    &I"

    K.D/

    =;6< 65

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    "oans 2unds

    Secured "oans

    Hnsecured "oans

    #eferredTa3"iability

    */>

    */KK

    //KD

    G=D

    K

    GD/

    G

    **/

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    TABLE-;.1K/

    =D

    K/G

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    TABLE-;.1

    COMPARATIVE BALANCE SHEET OF CHETTINAD CEMENT CORPORATION

    LIMITED

    PARTICULARS 2665-2616

    @ RS.I!

    %)/s

    2616-2611

    @ RS.I!

    %)/s

    INCREASE,

    DECREASE

    PERCENTAGE

    CHANGE @

    Curr"!& Ass"&s

    Inventories

    Sundry #ebtors

    9ash!Ban1balance

    "oans !Advances

    ;thers

    2i3ed Assets

    Investments

    5or1ing

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    Curr"!& Li)$i%i&'

    Shareholder 2unds

    Share 9apital

    %eserves! Surplus

    "oans 2unds

    Secured "oans

    Hnsecured"oans

    #eferredTa3"iability

    =GD

    K/

    =GD

    ==

    < <

    *KG

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    TABLE-;.1

    COMPARATIVE BALANCE SHEET OF CHETTINAD CEMENT CORPORATION

    LIMITED

    PARTICULARS 2665-2616

    @ RS.I!

    %)/s

    2616-2611

    @ RS.I!

    %)/s

    INCREASE,

    DECREASE

    PERCENTAGE

    CHANGE @

    Curr"!& Ass"&s

    Inventories

    Sundry #ebtors

    9ash!Ban1balance

    "oans!Advances

    ;thers

    2i3ed Assets

    Investments

    5or1ing

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    Curr"!& Li)$i%i&'

    Shareholder 2unds

    Share 9apital

    %eserves! Surplus

    "oans 2unds

    Secured "oans

    Hnsecured"oans

    #eferredTa3"iability

    =GD

    ==

    =GD

    GG

    < < DD

    K*GD

    KG

    //=

    */G

    /=.>D

    K=.=

    >.D

    T&)% Li)$i%i&i"s 75257 1;=56

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    APPENDI8E

    BALANCE SHEET

    Schedule As at *.D.DDG As at *.D.DD As at *.D.DDK As at *.D.DD> As at *.D.DD=

    Sources of 2unds

    )a+ 9apital * =GD =GD =GD =GD =GD

    )b+ %eserves and Surplus **K= */K/ *//= *K// K/ / == =/= GG GG*G

    "oan 2unds )a+ Secured "oans G=D /D/ =D K* >DD

    )b+ Hnsecured "oans/ K > >D>K D/=* * =>G> /*= K*GD ==KD

    #eferred Ta3

    #eferred ta3 liability >D*/ >*K KGKG GD >

    "ess : #eferred ta3 asset/*D GD/ == K>K/ */D K/G K /D >/ KG

    T&)%=;617 ==76 =75= 75257 1;=56

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    Application of 2unds

    2i3ed Assets

    )a+ ross Bloc1 G >/ KGG> >// =*D *D=

    )b+ "ess : #epreciation

    )c+ &et Bloc1

    GDK >*D =K /DKK >GD=>

    /G= /K=/> />/=K /=/ >D=/*

    )d+ 9apital wor1 in progress =/ //G** >D />> >/K G// GG >/D> ** **GK

    Investment * G> G> G>

    9urrent Assets, "oans ! Advances

    )a+ Inventories K =>=K *DD*K K>K **K */*

    )b+ Sundry #ebtors *=DK *K// *== */>K >KD

    )c+ 9ash and Ban1 balance *KD= */= >G G>G /==

    )d+ ;ther 9urrent Assets *> / / D *

    )e+ "oan ! Advance =D/ /DK =// *=K>D =>

    1

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    )b+ rovisions *>K DD= =>= D*=K /=

    527 167 125 ;=7; ;75=5

    &et 9urrent Assets >GDK K*> //= / GG

    T&)% =;617 ==76 =75= 752571;=56

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    BIBLIOGRAPHY

    BOO?S

    1. I.'. andey N Fi!)!0i)% M)!)"4"!&, &ew #elhi, i1ash ublishing

    4ouse vt., "td.,

    2. rasanna 9handra < Fi!)!0i)% M)!)"4"!& T/"r' )!* Pr)0&i0", Tata

    'cgraw 4ill.

    3. #r.S.&.'aheswari< E%"4"!&s ( Fi!)!0i)% M)!)"4"!&, Sultan 9hand

    ! Sons, 8ducational ublishers, &ew #elhi.

    4. [email protected] N Fu!*)4"!&)% ( Busi!"ss r)!i)&i! and 'anagement.

    L

    5. @uchai.S.9 < Fi!)!0i)% M)!)"4"!&

    6. arma Agarwal N Fi!)!0i)% M)!)"4"!&

    REPORTSS

    C4#)!' A!!u)% R"0r*s + R"#r&ss

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    EBLIOGRAPHY

    1. www. chettinadcement.com

    2. www.google.com

    http://www.google.com/http://www.google.com/