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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;
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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.
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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.
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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.
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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. .
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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.
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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
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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.
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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.
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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/