Muni Project Full.muni

7/30/2019 Muni Project Full.muni

1/121

A COMPARATIVE STUDY ON FINANCIAL

PERFORMANCE OF JAYALAKSHMI PRESSING

PRIVATE LIMITED AND JAYALAKSHMI

ENGINEERING ENTERPRISES., HOSUR FROM 2004-05 to2010-11

A project report submitted to Anna University of Technology, Coimbatore in

partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

MUNIRATHINAM.U

Reg.No: 108001203025

Under the Guidance of

Mrs. A. CHITRA,MBA.,M.Phil.,

Asst.Professor

Department of Management Studies

JAYALAKSHMI INSTITUTE OF TECHNOLOGY

(Affiliated to Anna University of Technology, Coimbatore)

NH-7, THOPPUR, DHARMAPURI -636352

JUNE-2012


2/121

BONAFIDE CERTIFICATE

JAYALAKSHMI INSTITUTE OF TECHNOLOGY

(AFFILIATED TO ANNA UNIVERSITY-COIMBATORE)

NH-7, THOPPUR, DHARMAPURI -636352

Department of Management

PROJECT WORK

JUNE 2012

This is to certify that the project entitled

A COMPARATIVESTUDY ON FINANCIAL PERFORMANCE AT

JAYALAKSHMI PRESSING PRIVATE LIMITEDAND JAYALAKSHMI

ENGINEERING ENTERPRISES, HOSUR FROM 2004-05 to 2010-11.

Is the bonafide record of project work done by

U.MUNIRATHINAM

Register No: 108001203025

Of MBA during the year 2011-2012.

______________ _______________

Project Guide Head of the Department

Submitted for the project Viva-voce Examination held on_____________

_____________ ______________

Internal Guide External Examine


3/121


4/121

ACKNOWLEDGEMENT

First of all I thank the almighty god and my parents for their blessings and moral support

given to me to complete this project successfully.

With pleasure we express our profound gratitude to our beloved chairman

Lion. C. Subramanian for giving motivation and providing all necessary facility for the

successful completion of this project.

Its our privilege to thank our beloved Principal Dr. S. Ragunathan, M.E., Ph.D., for

their moral support and deeds in bringing out this project successfully.

We also thank our guide Mrs.A.CHITRA. M.B.A., M.Phil. For his helpful hands in

each step of our project and for her guidance and constant support in the successful completion

and improvement of the project.

A Special Note Thanks To

Mr.R.Stalin prabhu (Human Resource Manager)

Mr.S.Kathiravan (Finance Officer)

Mrs.S.Kavitha (Senior Finance Executive)

Mr.C.Mullaisakthi (Finance Executive)

Ms.M.Malathi (Finance Executive)

Mr.Anbalagan (Finance Executive)

Mrs.Mailliga (Senior Finance Executive)


5/121

ABSTRACT

The financial performance of any organization has to be monitored and evaluated

keeping track its progress. The project titled A comparative Study on Financial Performance

of Jayalakshmi Pressing Pvt Ltd And Jayalakshmi Engineering Enterprises, Hosur From

2004-05 to 2010-11 is under taken period of 90 days , with the objective of analyzing the

profitability position of the organization.

The main objective of the study is about the financial performance of the company, and

finding the liquidity and profitability position of the company development.

In this study the ratio analysis techniques is adopted and the data collected through

comparative balance sheet. The percentage method is used to analyze the data.

Based on the finding the suitable suggestions are given. The organization has to

concentrate on increasing its working capital investments. The organization must take the

necessary steps to increase the volume it operating expenses.


6/121

CONTENTS

S.NO PARTICULARS PAGE NO

Chapter -1

Chapter -2

Introduction

Manufacturing Industry- Overview

Need of the study

Objectives of the Study

Scope of the Study

Limitations of the Study

Concept and Review

Review of Literature

Industry Profile

Company Profile

introduction

About Us

Our Strength

Our Mission

Quality policy

Major customer

Product Profile

Organization Chart


7/121

Chapter 3

Chapter 4

Chapter 5

Methodology

Research Methodology

Nature of Research Design

Sources of Data

Period taken for the study

Tools used for the study

Data Analysis And Interpretation

Ratio Analysis

Introduction

Ratio Analysis Involve steps

Comparative Balance Sheet

Comparative Income statement

Meaning

Uses of Comparative Income statement

Trend Analysis

Importance Of Trend Analysis

Results and Discussions

Findings

suggestions

Conclusion

Bibliography


8/121

LIST OF TABLE

Table

No Particulars Page No

1 Current Ratio of JPPL&JEE From 2005-2011

2 Quick / Liquidity Ratio of JPPL&JEE From 2005-2011

3 Debt Equity Ratio of JPPL&JEE From 2005-2011

4 Debt to Total Capital Ratio of JPPL&JEE From 2005-2011

5Return on Share holders Investment or Net worth Ratio of JPPL&JEE From2005-2011

6 Earnings Per Share Ratio of JPPL&JEE From 2005-2011

7 Proprietary Ratio / Equity Ratio of JPPL&JEE From 2005-2011

8 Reserves to Equity Capital Ratio of JPPL&JEE From 2005-2011

9 Fixed Assets to Net worth Ratio of JPPL&JEE From 2005-2011

10 Current Assets to Net worth Ratio of JPPL&JEE From 2005-2011

11 Comparative Balance Sheet of JPPL&JEE From 2004-2005



14 Comparative Balance Sheet of JPPL &JEE From 2007-2008

15 Comparative Balance Sheet of JPPL &JEE From 2008-2009

16 Comparative Balance Sheet of JPPL &JEE From 2009-201017 Comparative Balance Sheet of JPPL&JEE From 2010-2011

18 Comparative Income Statement of JPPL&JEE From 2004-2005



21 Comparative Income Statement of JPPL &JEE From 2007-2008

22 Comparative Income Statement of JPPL &JEE From 2008-2009



25 Sales Trend of JPPL&JEE from 2004-2011

26 Stock Trend of JPPL&JEE from 2004-2011

27 Net Profit Trend of JPPL&JEE from 2004-2011


9/121

LIST OF CHART

Chart

No Particulars Page No

1 Organization Chart

2 Current Ratio of JPPL&JEE from 2005-2011

3 Quick / Liquidity Ratio of JPPL&JEE from 2005-2011

4 Debt Equity Ratio of JPPL&JEE from 2005-2011

5 Debt to Total Capital Ratio of JPPL&JEE from 2005-2011

6Return on Share holders Investment or Net worth Ratio of JPPL &JEE from2005-2011

7 Earnings Per Share Ratio of JPPL&JEE from 2005-2011

8 Proprietary Ratio / Equity Ratio of JPPL&JEE from 2005-2011

9 Ratio of Reserves to Equity Capital Ratio of JPPL&JEE from 2005-2011

10 Fixed Assets to Net worth Ratio of JPPL&JEE from 2005-2011

11 Current Assets to Net worth Ratio of JPPL&JEE from 2005-2011

12 Sales Trend of JPPL&JEE from 2005-2011

13 Stock Trend of JPPL&JEE from 2005-2011

14 Net Profit Trend of JPPL&JEE from 2005-2011


10/121

ABOUT INDIAN AUTOMOBILE INDUSTRY

Starting its journey from the day when the first car rolled on the streets of Mumbai in

1898, the Indian automobile industry has demonstrated a phenomenal growth to this day. Today,

the Indian automobile industry presents a galaxy of varieties and models meeting all possible

expectations and globally established industry standards. Some of the leading names echoing in

the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and Mahindra,

Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of others.

During the early stages of its development, Indian automobile industry heavily depended

on foreign technologies. However, over the years, the manufacturers in India have started using

their own technology evolved in the native soil. The thriving market place in the country has

attracted a number of automobile manufacturers including some of the reputed global leaders toset their foot in the soil looking forward to enhance their profile and prospects to new heights.

Following a temporary setback on account of the global economic recession, the Indian

automobile market has once again picked up a remarkable momentum witnessing a buoyant sale

for the first time in its history in the month of September 2009.

The economic liberalization that dawned in India in the year 1991 has succeeded in

bringing about a sustained growth in the automotive production sector triggered by enhanced

competitiveness and relaxed restrictions prevailing in the Indian soil. A number of Indian

automobile manufacturers including Tata Motors, Maruti Suzuki and Mahindra and Mahindra,

have dramatically expanded both their domestic and international operations. The countrys

active economic growth has paved a solid road to the further expansion of its domestic

automobile market. This segment has in fact invited a huge amount of India-specific investment

by a number of multinational automobile manufacturers. As a significant milestone in its

progress, the monthly sales of passenger cars in India exceeded 100,000 units in February 2009.

The beginnings of automotive industry in India can be traced during 1940s. After the

nation became independent in the year 1947, the Indian Government and the private sector

launched their efforts to establish an automotive component manufacturing industry to meet the

needs of the automobile industry.


11/121

The growth of this segment was however not so encouraging in the initial stage and

through the 1950s and 1960s on account of nationalization combined with the license raj that

was hampering the private sector in the country. However, the period that followed 1970s,

witnessed a sizeable growth contributed by tractors, scooters and commercial vehicles. Even till

those days, cars were something of a sort of a major luxury. Eventually, the country saw the

entry of Japanese manufacturers establishing Maruti Udyog. During the period that followed,

several foreign based companies started joint ventures with Indian companies.

During 1980s, several Japanese manufacturers started joint-ventures for manufacturing

motorcycles and light commercial-vehicles. During this time, that the Indian government

selected Suzuki for a joint-venture to produce small cars. Following the economic liberalization

in 1991 and the weakening of the license raj, several Indian and multi-national car companies

launched their operations on the soil. After this, automotive component and automobile

manufacturing growth remarkably speed-up to meet the demands of domestic and export needs.

The Automotive Mission Plan launched by the Indian government has envisaged that the

country will emerge as the seventh largest car maker on the globe thereby contributing more than

10 percent to the nations $1.2-trillion economy.

Further, industry experts believe that the nation will soon establish its stand as an

automobile hub exporting about 2.75 million units and selling about a million units to be

operated on the domestic roads.


12/121

PRESENT CONDITION OF THE INDUSTRY

The automobile sector of India is the seventh largest in the world. In a year, the country

manufactures about 2.6 million cars making up an identifiable chunk in the worlds annual

production of about 73 million cars in a year. The country is the largest manufacturer of

motorcycles and the fifth largest producer of commercial vehicles. Industry experts have

visualized an unbelievably huge increase in these figures over the immediate future. The figures

published by the Asia Economic Institute indicate that the Indian automobile sector is set to

emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest exporter

of automobiles following Japan, South Korea and Thailand. Experts state that in the year 2050,

India will top the car volumes of all the nations of the world with about 611 million cars running

on its roads.

At present, about 75 percent of Indias automobile industry is made up by small cars,

with the figure ranking the nation on top of any other country on the globe. Over the next two or

three years, the country is expecting the arrival of more than a dozen new brands making

compact car models.

Recently, the automotive giants of India including General Motors (GM), Volkswagen,

Honda, and Hyundai, have declared significant expansion plans. On account of its huge market

potential, a very low base of car ownership in the country estimated at about 25 per 1,000 people,

and a rapidly surging economy, the nation is firmly set on its way to become an outsourcing

platform for a number of global auto companies. Some of the upcoming cars in the India soil

comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo (Volkswagen),

Bajaj small car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition to several others

GROWTH SICKNESS

The automotive industry remains one of the highest revenue-earning industries in India and

contributed over 5% to Indias GDP in 2009, providing direct and indirect employment to more

than 13 million people. The market outlook for the industry remains promising, especially in the

small car segment. The Indian automobile market is currently dominated by the two-wheeler

segment but with an expanding middle class population, growing earning power and industrial


13/121

development, the demand for passenger cars and commercial vehicles will increase

exponentially.

Also, the low vehicle presence (with passenger car stock of only around 11 per 1,000

populations in 2008) indicates a very low base with significant growth potential. As per Just-

Auto analyst reports, sales of passenger cars in 2008-2016 are expected to grow at a CAGR of

around 10%.

On 22 February 2010, Hyundai motors exported its 10,00,000th car, the feat which was

achieved by the firm in just over 10 years. Hyundai Motors is the largest passenger car exporter

and the second largest car manufacturer in the country. In the similar lines, General Motors has

announced its plans to export not less than 50,000 cars made in India by the year 2011. In yet

another proposal, Ford Motors is to setup a manufacturing facility costing about US$500 million

in India with an annual capacity of 250,000 cars. The firm has stated that the facility will play a

major part in its strategic plan to make India a hub for its global production business. In yet

another significant move, Fiat motors has stated that it will source a big volume of auto

components from India worth about US$1 billion. In the year 2009, India overtook China by

emerging as the fourth largest exporter of cars in Asia.

Predictions made by Ernst and Young have estimated that the Indian passenger car

market will have a growth rate of about 12 percent per annum over the next five years to reach

the production of 3.75 million units by the year 2014. The analysts have further stated that the

industrys turnover will touch $155 billion by 2016. This achievement will succeed in

consolidating Indias position as the seventh largest automobiles manufacturer on the globe,

eventually surging forth to become the third largest by the year 2030 behind China and the US.


14/121


15/121

NEED OF THE STUDY

The financial statements are mirror which reflects the financial position and strengths or

weakness of the concern. The analyses of financial statements are useful to

Management Investors Creditors Bankers Financial institution etc...

OBJECTIVES OF THE STUDY

To overall financial performance of the company. To analyze the financial statements to find out the firm's financial position. To find out the operating strengths and weakness of the firm's. To analysis the financial risk.


16/121

SCOPE OF THE STUDY

The management of the company can easily identify the existing financial problems &further identify the causes for those problems.

The study is based on the accounting information of the JPPL &JEE, Hosur. The studycovers the period of 2005-2011 for analyzing the financial statement such as income

statements and balance sheet.

Considering the availability of time, information and sources of study is confined theperformance of the JPPL&JEE, Hosur. This study aims at analyzing the overall financial

performance of the company by using various financial tools.

The result of the study may help the management of JPPL&JEE in taking decisions forbetter performance in future.

LIMITATIONS OF STUDY

No primary data is used for the study. Figures for the analysis are taken from the annual reports. The financial statements analysis, are based on Balance Sheet, Profit/ Loss account

prepared one accounting year.

The study covers the period of 7 years 2005-2011.


17/121

CONCEPT AND REVIEW

REVIEW OF LITERATURE

Introduction

The review of literature guides the researcher for getting better understanding of

methodology used, limitation of various available estimation procedure and database and

lucid interpretation and reconciliation of the conflicting results. Besides this, the review of

empirical studies explores the avenues for future and present research efforts related with

the subject matter. In case of conflicting and unexpected results, the researcher can take the

advantage of other researcher simply through the medium of their published works.

A number of research studies have been carried out on different aspects of the

financial performance of various business enterprises in India and abroad. Different

authors have analysis is important in order to develop and approach that can be employed

in the context of the study of A STUDY ON FINANCIAL PERFORMANCE OF

JAYALAKSHMI PRESSING PVT LTD. HOSUR FROM 2005 to 2011. Therefore

the present chapter reviews the various approaches to the study of financial performance.

1. A STUDY ON FUNDAMENTAL ANALYSIS OF SUGAR INDUSTRY WITHSPECIAL REFERENCE TO SHAKTHI SUGARS LIMITEDCBE was done by

Ms. C. THANGAMANI in the year 2006, with objective of ascertaining the financial

performance and profitability of a concern over a period of 5 years. The objective of the

study is to analyze the performance of the firm, and find out profitability; how too

effectively and efficiently the companys resources are being utilized. The suggestion of

the study stated that the liquidity position is very weak. Company should undertake

various promotional campaigns, with the view of selling their products directly to the

customers. The company shall increase their investment in future to reduce the amount ofrisk as a result of investing in a particular business


18/121

2. V.Priya (March 1998) done a study on Financial Performance of sakthi financelimited. In her study she found that sakthi finance limited possesses a large amount of

debt, that is, it is extensively depended upon outsiders funds. The suggestions are the

debt portion of sakthi finance limited has to be reduced to provide a large margin of

safety for creditors.

3. A study on financial statement done by Mr. A. RAMASWAMY with analyze to ITILIMITED in the year 2003 with main objectives of finding financial statement and the

structure of changing finance it is to be searching 2003-2007 and to find the overall

performance and compare the present year with previous year. The findings include that

the liquidity position was not satisfactory and the cash management operation is

satisfactory and working capital ratio is well performed.

4. A Study on financial performance of BPL LIMLTED From 2003 to 2008 has beendone by Mr.K.RAM with main objective to analyse five years balance sheet and profit

and loss account and then to prepare financial statement and analyze the complete

performance of BPL LIMITED. The data was analysed through trend analysis,

comparative income statement and balance sheet, fund flow statement and important

performance ratios. The cost of sales was found to be satisfactory. The current liability

was higher than the current assets. In this company inventory has to maintained but do

not increase the sales volume.


19/121

INDUSTRY PROFILE

While the Indian automotive industry and the associated component started very much in

sync with global auto industry. A few decades of protectionism created a situation where in the

industry was deprived of the power of innovation. Status quo reigned while investments in

research & development (R&D) stagnated or become a tax shelter. However, with the recent

liberalization, the power of innovation had returned to boost the growth of the Indian auto

component industry.

The growth has also been furthered by the re-entry of the global automotives OEMs.

Mergers and acquisitions on a global scale have been under way, in some ways on an

unprecedented scale. Indian auto component companies of various sizes have been venturing on

to the global stage and seeking acquisitions. While there is genuine concern as to whether such

M&A activities are driven by showmanship other factors, what is more important is whether they

are successful. This depends on whether they are driven by the correct economic parameters and

sound business and sound business plans.

The Indian auto industry is poised for unprecedented growth. The second half 2006 has

been the announcement of capacity additions, which just about double the current production

numbers. Maruti Suzuki is doubling to just about a million vehicles. Mahindra & Mahindra,

Renault and Nissan are seeking to add up to 5 lakh vehicles. General Motors and Toyota are each

going up to over 2 lakh vehicles. Tata is also planning to go up to one million units.

What does all this mean for the auto component industry? While on one hand, the growth

in volumes makes product pricing a little easier, on the other, it demands a speed up of the

component manufactures in terms of their R&D capabilities in order to be long-term players in

the global industry.


20/121

COMPANY PROFILE

Name : Jayalakshmi Pressings Pvt. Ltd

Type : private limited

Industry : Automobile

Founded : 2002

Founder : Mr.C.Subramanian

Headquarters : Hosur

Key people : MD-Mr.C.subramanian

GM- Mr.P.S.N.Prakash

AGM-Mr.P.Chandraseker

Product : Cross Member

Annual Turnover: 26 corers

Employee : Staff 50, Worker 150

Capital : 95 lakes

Leading Manufacturer of Sheet metal Auto Components, Stamping and Welding, Deep

drawn sheet metal components, Stamped sheet metal auto parts, automotive sheet metal

assembly, and High tonnage sheet metal component.


21/121

About Us

Jayalakshmi Pressings Pvt. Ltd. is an ISO 9001: 2000 Certified Company established in

2002 by Mr.C.Subramanian. The parent company Jayalakshmi Engineering Enterprises was

established in the year 1987. Both the companies are located in Hosur, Tamil Nadu near

Bangalore, the capital city of Karnataka, India.

Jayalakshmi Pressings Pvt. Ltd., caters to Automotive giants such as M/s. Ashok Leyland

Ltd., M/s Harita Seating systems Ltd., M/s. Hyva India Ltd., M/s.Irizar-TVS Ltd.,Tatra Trucks

India Ltd.,& M/s.Applicomp India Ltd (Videocon)., We are specialist to produce auto

components out of sheet metal and tubes. We have a state of art tool design and tool room

facilities to exclusively support us and our associate companies.

Our Strength

The team in Jayalakshmi Pressings Private Ltd. has their proven technical strength and

competence and continually improved upon the productivity and operating efficiency and the

Company is occupying very prominent position in the Automobile Industry as a Tier 1 Supplier.

I am confident that you will be interested in the different facets of our company portrayed

in this profile. We look forward for your encouragement for a mutually beneficial association.

Aim / Vision / Mission

Having started in a small way, during Sept 2002, we have grown in the past four years by 10 folds. The last financial years growth is 34%. Leading to a total sale of 5.0 million US$ during the financial

year 2005 - 06.

It has been targeted to double our sales turnover for the current financial year (2006 -07) to 10.0million US$* to enter global market for auto parts of our specialization.

Diversifying to product line with joint venture. Mature the quality system to TS16949.To enter global market for auto parts of our specialization.


22/121

Quality Policy

We at Jayalakshmi Pressings Pvt Ltd are committed to manufacture and supply

automotive & other industrial components that will ensure customer satisfaction through

continual improvement and total employee involvement.

Major Customers

M/s. Ashok Leyland Ltd., Hosur I,II,

Ennore, Alwar, Bhandra & Utrakhand, India.

M/s. Harita Seating Systems Ltd.,(TVS Group), Hosur, Tamil Nadu, India.

M/s. Hyva India Pvt. Ltd., Bangalore, India.

M/s. Irizar - Tvs Ltd., Trichy, Tamil Nadu, India.

M/s, Bharath Heavy Electrical Ltd., Ranipet, T.N. India.

M/s, BEML Ltd., Bangalore, India

M/s, Wheels India Ltd, Chennai.

M/s, Terex Corporation, Hosur.

M/s, Magtor Pvt Ltd, Hosur.

M/s, Integral Coach Factory, Chennai.


23/121


24/121

PRODUCTS PROFILE

MDV CHASSIS - RIVETED X MEMBER

Welded & riveted cross assemblies.

Material: High Yield BSK 46

Application: Load bearing central cross member on

chassis

Process: Hydraulic formed and fully steel riveted assy.

Size: One meter long & wt. approx 75 kg

FRONT X MEMBERSMDV / TIPPER


Material: High yield strength BSK 46 and

STW 22 DIN 1614 DD Quality.

Application: For Commercial vehicle

Process: Deep drawn parts riveted and

Welded cross member assay for Engine mtg.


25/121

FRONT X MEMBERSMDV / TIPPER


Material: High yield strength BSK 46 and

STW 22 DIN 1614 DD Quality.

Application: For Commercial vehicle

Process: Deep drawn parts riveted and

Welded cross member assay for Engine mtg.

MDV CHASSIS - RIVETED X MEMBER:


Material: High Yield BSK 46

Application: Load bearing Rear spring. Cross member on

chassis

Process: Hydraulic formed and fully steel riveted assy.

Size: One meter long & wt. approx 40 k


26/121

STALLIONWELDED X MEMBER:

Welded cross assemblies.

Material:. DIN 17100 St 44.

Application: Supporting cross members for chassis of

military vehicle

Process: Formed welded assy.

CARGOGEAR BOX MOUNTING X MEMBER:


Material: Din 1614 STW 24 EDD Quality.

Application: Load bearing Gear Box mtg. cross mbr. On

chassis for Trucks.

Process: Hydraulic Deep Drawn, Welded and steel riveted

assy


27/121

OPERATING CYCLE

DEBTORS SALES

WORK IN

PROGRESS

RAW MATERIALS

FINISHED

CASH

OPERATING

CREDITORS

PURCHASES


28/121

OPERATING CYCLE

1. Conversion of cash into raw materialsPurchase of raw materials.

2. Conversion of raw materials into work-in-progress:Process of production.

3. Conversion of work-in-progress into finished goods:

Process of production.

4. Conversion of finished goods into accounts receivable:

Sale of goods-debtors and bills receivable.

5. Conversion of accounts receivable into cash:Receiving cash from debtors and bills receivable


29/121

METHODOLOGY

RESEARCH METHODOLOGY

Research is a common parlance refers to a search for knowledge. Research methodology

is a way to systematically solve the research problem. It may be understood as a science of

studying how research is done scientifically. In it we study the various steps that are generally

adopted by a researcher in studying his research problem along with the logic behind them.

The Methodology Adopted For the Study Contains the Following Steps

Nature of research Design. Sampling Design. Data Collection. Sources of data. Period taken for financial study. Tools used for the study.

Nature of Research Design

Descriptive research is used in the study because it will ensure the minimization of bias

and maximization of reliability of dada collected. The researcher had to use fact and information

already available through financial statements of earlier years and analyze these to make critical

evaluation of the available material. Hence by making the type of the research conducted to be

both Descriptive and analytical in nature.

From the study, the types of data to be collected and the procedure to be use for this

purpose were decided.


30/121

SAMPLING DESIGN

Sample unit

The sample unit - A Financial Year.

Sample Size

The sample size of the study is 7 years from 2004-05 to 2010-11

Sampling method

Convenience sampling is method under non-probability sampling selected at the

convenience of the researcher who is to select a sample. This type of sampling is also called

accidental sampling, as the respondents in the sample are included in it merely on account of

their being available, where the survey is in progress. Convenience sampling method was

adopted to select 7 years from the live time of the company since its inception.

DATA COLLECTION

The required data for the study are basically secondary in nature and the data arecollected from the annual reports of the company.

Sources Of Data

The sources of data are from the Annual Reports of the company from the year 2004-05

to 2010-11.


31/121

Period Taken For the Study

The study has undergone for a period of 7 year starting from 2005 to 2011.

METHODS OF DATA-ANALYSIS

The data collected were edited, classified and tabulated for analysis. The analytical tools

used in this study are

Analytical tools Applied

The study employs the following analytical tools

1. Ratio Analysis

2. Comparative Balance Sheet

3. Comparative Income Statement

4. Trend Analysis


32/121

DATA ANALYSIS & INTEPRETATION

A financial statement is a collection of data organized 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 a balance sheet, or

may reveal a series of activities over a given period of time, as in the case of an income

statement. Thus, the term financial statements generally refers to the two statements

The income statement or the profit & loss account The position statement or the balance sheet

In the words ofJohn N.Myer, the financial statement provide a summary of the accounts of a

business enterprise, the balance sheet reflecting the liabilities and capital as on a certain date &

the income statement showing the results of operations during a certain period.

Meaning and concept of financial analysis

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

statements refers to the process of determining financial strengths & weaknesses of the firm by

establishing strategic relationship between the items of the balance sheet, profit & loss account

and other operative data.

Analyzing financial statements, according to Metcalf & Titard, is a process of

evaluating the relationship between component parts of a financial statement to obtain a better

understanding of a firms position and performance.

Types of Financial Analysis

Financial analysis is classified into different categories depending upon the material used,

and the method of operation followed in the analysis or the modus operandi of analysis.


33/121

On The Basis of Material Used

External Analysis

The analysis is done by outsiders who do not have access to the detail internal accounting

records of the business firm. Those outsiders included investors, potential investors, and

creditors, potential creditors, government agencies, credit agencies, and the general public. For

financial analysis these external parties to the firm depend almost entirely on the published

financial statements.

Internal Analysis

The analysis conducted by persons who have, access to the internal accounting records of

a business firm is known as internal analysis. Such an analysis can, therefore be performed by

executives & employees of the organization as well as government agencies which have

statutory powers vested in them. Financial analysis for management purposes is the internal type

of analysis that can be effected depending upon the purpose to be achieved.

On The Basis if modus operandi

Horizontal Analysis

Horizontal analysis refers to the comparison of financial data of a company for several

years. The figures for this type of analysis are presented horizontally over a number of columns.

The figures of the various years are compared with standard or base year. A base year is a year

chosen as beginning point. This type of analysis is also called Dynamic analysis as it is based

on the data from year to year rather than on data of any one year. The horizontal analysis makes

it possible to focus attention on items that have changed significantly during the period under

review. Comparison of an item over several periods with a base year may show a trend

developing. Comparative statements are the tools employed in horizontal analysis.


34/121

Vertical Analysis

Vertical analysis refers to the study of relationship of the various items in the financial

statements of one accounting period. In this type of analysis the figures from financial statement

of a year are compared with a base selected from the same years statements. It is also known as

Static Analysis. Common-size financial statements and financial ratios are the two tools

employed in vertical analysis. Since vertical analysis considers data for one time period only, it

is not very conductive to a proper analysis of financial statements. However, it may be used

along with horizontal analysis to make it more effective and meaningful.


35/121

RATIO ANALYSIS

The researcher used the ratio analysis for the interpretation of financial statement for the

purpose of assessing profitability, liquidity and solvency position.

A companys performance is basically judged by its financial results. These results will

reflect the financial position of the firm. So, that the financial position has to be analyzed and

evaluated critically to find out the liquidity, solvency position and profitability of the firm. It

helps to flow goes for a decision making.

Introduction

Ratio analysis is the most powerful and important tools of financial analysis. A ratio is

statistical yardstick that provides a measure of relationship between two according figures. A

ratio is simple one number expressed in terms of another. The other can express the relationship

between numbers by means of dividing one figure. Ratio can be expressed in two difficult forms.

Ratio is defined as the quoted of two mathematical expressions ratio constituted to be

the best guides for the efficient execution of basis managerial functions like planning, forecasting

central, etc. Absolute figures are valuable, but they stand along conveying no meaning unless

compares with another.

Ratio Analysis involves Steps

Calculate of appropriate ratios from the financial statements. Comparison of ratio with standard or with ratio of the past period.

Comparison can also be made with the ratio of other firms.

Interpretation of ratio.


36/121

1. Current Ratio

The current ratio compares the total current assets with the total current liabilities. A high

current ratio indicates a large preparation of current assets to current liabilities.

The current ratio is calculated as:

Current Assets

Current Ratio = -----------------------

Current Liabilities

TABLE -1

CURRENT RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Current Assets

(b)

Current Liabilities

(c)

Ratios

(b)%(c)

200520062007

2008200920102011

313.59313.59621.06

645.85428.71670.05794.44

57.70162.

234.13

123.74245.77194.70332.51

5.432.942.65

5.221.743.442.39

(Sources: computed from the secondary data)


37/121

TABLE -2

CURRENT RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Current Assets

(b)

Current Liabilities

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

193.81247.72263.77406.99385.69350.61

441.84

127.49218.08229.57391.56392.06386.13

420.49

1.521.161.151.040.980.91

1.05


CHART -1

CURRENT RATIO

5.43

2.942.65

5.22

1.74

3.44

2.39

1.521.16 1.15 1.04 0.98 0.91

1.05

2005 2006 2007 2008 2009 2010 2011

JPPL JEE

RATIO

YEAR

CURRENT RATIO CHART-1


38/121

Interpretation

Current ratio norms 2:1 Jayalakshmi pressing private limited current ratio 5.43,2.94, 2.65, 5.22, 1.74, 3.44, 2.39 higher current ratio 5.43 (2005) and lower

current ratio 1.74 (2009).

Jayalakshmi engineering enterprises current ratio 1.52, 1.16, 1.15, 1.04, 0.98,0.91, 1.05 higher current ratio 1.52 (2005) and lower current ratio 0.91(2010).

Jayalakshmi pressing private limited current ratio is satisfied and Jayalakshmiengineering enterprises current ratio unsatisfied.


39/121

2. Quick / Liquid Ratio

Quick ratio provides an even more critical look at the ability of the company to meet day-

today obligations. It signifies a very short-term liquidity of a business concern and is, therefore

also called as liquid ratio.

Quick ratio is calculated as:

Quick Asset

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

Current Liabilities

TABLE -3

QUICK / LIQUID RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Quick Asset

(b)

Current

Liabilities

(c)

Ratios

(b)%(c)

2005200620072008200920102011

241.21381.12490.75477.21276.75515.28608.99

57.70162.52234.13123.74245.77244.70332.51

4.182.342.101.942.242.111.83



40/121

TABLE -4

QUICK / LIQUID RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Quick Asset

(b)

Current

Liabilities

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

192.06285.9381.78145.74287.88221.30

309.00

223.83359.39127.49218.08351.48364.08

403.96

0.860.800.640.660.820.61

0.76


CHART -2

QUICK RATIO

4.18

2.342.1

1.942.24 2.11

1.83

0.86 0.80.64 0.66

0.820.61

0.76

2005 2006 2007 2008 2009 2010 2011

RATIO

YEAR

QUCIK RATIO CHART-2

JPPL JEE


41/121

Interpretation

Quick ratio norms 1:1 Jayalakshmi pressing private limited quick ratio 4.18, 2.34,2.10, 1.94, 2.24, 2.11, 1.83 higher quick ratio 4.18 (2005) and lower quick ratio

1.83 (2011).

Jayalakshmi engineering enterprises quick ratio 0.86, 0.80, 0.64, 0.66, 0.82, 0.61,0.76 higher quick ratio 0.86 (2005) and lower quick ratio 0.61 (2010).

Jayalakshmi pressing private limited quick ratio is satisfied and growth stage,Jayalakshmi engineering enterprises quick ratio unsatisfied and unfortunate stage.


42/121

3. Debt Equity Ratio

The relationship between borrowed funds & owners capital is the debt equity ratio. This

reflects the extent to which borrowed capital is used in place of equity capital.

Debt Equity ratio calculated as:

Long term debt

Debt Equity Ratio= -----------------------

Share holders fund

TABLE -5

DEBT EQUITY RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Long term debt

(b)

Share holders

fund (c)

Ratios

(b)%(c)

20052006

20072008200920102011

260.77363.56

410.62386.02277.81380.15429.13

63.5474.42

140.45182.97191.78206.77242.84

4.104.88

2.922.111.451.841.77



43/121

TABLE -6

DEBT EQUITY RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Long term debt

(b)

Share holders

fund (c)

Ratios

(b)%(c)

20052006200720082009

20102011

27.5927.5957.1951.6228.64

16.8365.82

71.3572.8059.3084.2978.00

53.23109.75

0.380.370.960.610.37

0.320.60


CHART -3

DEBT EQUITY RATIO

2005 2006 2007 2008 2009 2010 2011

4.1

4.88

2.92

2.11

1.451.84 1.77

0.38 0.37

0.960.61

0.37 0.320.6

RATIO

YEAR

DEBT EQUITY RATIO CHART-3

JPPL JEE


44/121

Interpretation

Jayalakshmi pressing private limiteddebt equity ratio 4.10, 4.88, 2.92, 2.11, 1.45,1.84, 1.77 higher debt equity ratio 4.88 (2006) and lower debt equity ratio 1.45

(2009).

Jayalakshmi engineering enterprises debt equity ratio 0.38, 0.37, 0.96, 0.61, 0.37,0.32, 0.60 higher debt equity ratio 0.96 (2007) and lower

debt equity ratio 0.32 (2010).

Jayalakshmi pressing private limited debt equity ratio is unsatisfied andunfortunate stage, Jayalakshmi engineering enterprises debt equity ratio is

satisfied and growth stage.


45/121

4. Debt To Total Capital Ratio

The relationship between creditors funds & owners capital is the debt to total ratio. Here,

the outside liabilities are related to the total capitalization of the firm & not merely to the

shareholders equity one approach is to relate the long-term debt to the permanent capital of the

firm.

Debt to total capital ratio is calculated as

Long term debt

Debt to total capital ratio = ---------------------------

Permanent capital

TABLE-7

DEBT TO TOTAL CAPITAL RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Long Term Debt

(b)

Permanent

Capital

(c)

Ratios

(b)%(c)

2005200620072008200920102011

260.77363.56410.62386.02277.81380.15

429.13

50.0050.0095.0095.0095.0095.0095.00

5.217.274.324.062.924.004.52



46/121

5.21

7.27

4.324.06

2.92

44.52

0.38 0.55

1.14 1.030.57 0.34

0.66

2005 2006 2007 2008 2009 2010 2011

RATIO

YEAR

DEBT TO TOTAL CAPITAL RATIO CHART-4

JPPL JEE

TABLE-8

DEBT TO TOTAL CAPITAL RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Long Term Debt

(b)

Permanent

Capital

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

27.5927.5957.1951.6228.6416.83

65.82

37.5050.0050.0050.0050.0050.00

100.00

0.380.551.141.030.570.34

0.66


CHART -4

DEBT TO TOTAL CAPITAL RATIO


47/121

Interpretation

Jayalakshmi pressing private limiteddebt to total capital ratio5.21,7.27, 4.32,4.06, 2.92, 4.00, 4.52 higher debt to total capital ratio7.27 (2006) and lower debt

to total capital ratio2.92 (2009).

Jayalakshmi engineering enterprises debt to total capital ratio 0.38, 0.55, 1.14,1.03, 0.57, 0.34, 0.66 higher debt to total capital ratio1.14 (2007) and lower debt

equity ratio 0.34 (2010).

Jayalakshmi pressing private limited debt to total capital ratiois unsatisfied andunfortunate stage because high debt the company, Jayalakshmi engineering

enterprises debt to total capital ratiois satisfied and very good stage because low

debt the company.


48/121

5. Return on Shareholders Investment or Net worth Ratio

Return on share holders popularly known as ROI or return on shareholders/proprietors

funds is the relationship between net profits (after interest & tax and theproprietors funds.

Return on Shareholders Investment ratio is calculated as

Net profit (after interest & tax)

Return on Shareholders Investment ratio = ------------------------------------

Shareholders funds

TABLE-9

RETURN ON SHAREHOLDERS INVESTMENT RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Net Profit

(b)

Share holders fund

(c)

Ratios

(b)%(c)

2005200620072008200920102011

12.8114.6129.8342.558.8014.9936.06

63.5474.42140.45182.97191.78206.77242.84

0.200.190.210.230.050.070.15



49/121

TABLE -10

RETURN ON SHAREHOLDERS INVESTMENT RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Net Profit

(b)

Share holders fund

(c)

Ratios

(b)%(c)

20052006200720082009

20102011

7.4413.9015.099.091.82

6.6310.41

71.3572.8059.3084.2978.00

53.23109.75

0.100.190.250.110.02

0.120.09


CHART -5

RETURN ON SHAREHOLDERS RATIO INVESTMENT RATIO

0.20.19

0.210.23

0.050.07

0.15

0.1

0.19

0.25

0.11

0.02

0.12

0.09

2005 2006 2007 2008 2009 2010 2011

RATIO

YEAR

RETURN ON SHAREHOLDERS INVESTMENT RATIO

CHART-5

JPPL JEE


50/121

Interpretation

Jayalakshmi pressing private limitedreturn on shareholders investment ratio0.20, 0.16, 0.21, 0.23, 0.05, 0.07, 0.15 higher return on shareholders investment

ratio 0.23(2008) and lower return on shareholders investment ratio0.05(2009).

Jayalakshmi engineering enterprises return on shareholders investment ratio 0.10,0.19, 0.25, 0.11, 0.02, 0.12, 0.09 higher return on shareholders investment ratio

0.25(2007) and lower return on shareholders investment ratio 0.02(2009).

Jayalakshmi pressing private limited return on shareholders investment ratio issatisfied, Jayalakshmi engineering enterprises return on shareholders investment

ratio is unsatisfied.


51/121

6. Earning per share

The EPS measures the profit available to the equity holders on a per share basis. It is

calculated by dividing the profits available to the shareholders are represented by not profit after

taxes aaaaaa7 preference dividend.

Earnings per share ratio calculated as

Net profit after tax & preference dividend

Earnings per share ratio = -------------------------------------

No of equity shares

TABLE -11

EARNING PER SHARE OF JPPL

(Rs.in lakes)

YEAR

(a)

Net Profit After

Tax& Preference

Dividend (b)

Equity share

(c)

Ratios

(b)%(c)

2005

200620072008200920102011

12.81

14.6129.8342.558.8014.9936.06

0.50

0.500.950.950.950.950.95

25.62

29.2231.4044.799.26

15.7837.95



52/121

TABLE -12

EARNING PER SHARE OF JEE

(Rs.in lakes)

YEAR

(a)

Net Profit After

Tax& Preference

Dividend (b)

Equity share

(c) (Lks)

Ratios

(b)%(c)

200520062007200820092010

2011

7.4413.9015.099.091.826.63

10.41

0.370.500.500.500.500.50

1.00

19.8627.8130.1918.1903.6613.27

10.42


CHART-6

EARNING PER SHARE RATIO

2005 2006 2007 2008 2009 2010 2011

25.6 29.231.4

44.79

9.2615.78

37.95

19.86

27.8130.19

18.19

3.66

13.27

10.42

RATIO

YEAR

EARNING PER SHARE RATIO CHART-6

JPPL JEE


53/121

Interpretation

Jayalakshmi pressing private limitedearning per share ratio 25.60, 29.90, 31.40,44.79, 9.26, 15.78, 37.95 higherearnings per share ratio 44.79(2008) and lower

earnings per share ratio 9.26(2009).

Jayalakshmi engineering enterprises earnings per share ratio 19.86, 27.81, 30.19,18.19, 3.66, 13.27, 10.42 higher earnings per share ratio 30.19(2007) and lower

earnings per share ratio 3.66(2009).

Jayalakshmi pressing private limited earnings per share ratio is satisfied,Jayalakshmi engineering enterprises earnings per share ratio is normal stage.


54/121

7. Proprietary ratio/ Equity ratio

This ratio establishes the relationship between shareholders funds to total assets of the

firm.

Proprietary ratio is calculated as

Shareholders funds

Proprietary ratio = ---------------------------------

Total assets

TABLE-13

PROPRIETARY RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Shareholders funds

(b)

Total Assets

(c)

Ratios

(b)%(c)

20052006

20072008200920102011

63.5474.42

140.45182.97191.78206.77242.84

381.21602.65

791.26822.28597.88839.181018.42

0.160.12

0.170.220.320.250.24



55/121

TABLE-14

PROPRIETARY RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Shareholders funds

(b)

Total Assets

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

71.3572.8059.3084.2978.0053.23

109.75

253.95376.55361.27536.58500.54462.84

606.49

0.280.190.160.160.160.12

0.18


CHART-7

PROPRIETARY RATIO

2005 2006 2007 2008 2009 2010 2011

0.16

0.12

0.17

0.22

0.32

0.25 0.24

0.28

0.19

0.16 0.16 0.16

0.12

0.18

RATIO

YEAR

PROPRIETARY RATIO CHART-7

JPPL JEE


56/121

Interpretation

Jayalakshmi pressing private limitedproprietary ratio0.16, 0.12, 0.17, 0.22, 0.32,0.25, 0.24 higher proprietary ratio0.32(2009) and lower proprietary ratio

0.12(2006).

Jayalakshmi engineering enterprises proprietary ratio 0.28, 0.19, 0.16, 0.16, 0.16,0.12, 0.18 higher proprietary ratio0.28(2007) and lower proprietary ratio

0.12(2009).

Jayalakshmi pressing private limited proprietary ratiois satisfied, Jayalakshmiengineering enterprises proprietary ratiois satisfied.


57/121

8. Ratio of reserves to equity capital

This ratio established the relationship between & equity share capital. Higher the ratio,

generally better is the position of the firm.

Ratio of reserves to equity capital calculated as

Reserves

Ratio of reserves to equity capital = -----------------------*100

Equity share capital

TABLE-15

RESERVES TO EQUITY CAPITAL OF JPPL

(Rs.in lakes)

YEAR

(a)

Reserves funds

(b)

Equity Capital

(c)

Ratios

(b)%(c)

2005200620072008200920102011

13.5424.4245.4587.9796.78111.77147.84

50.0050.0095.0095.0095.0095.0095.00

27.0048.8547.8892.60101.87117.66155.62



58/121

TABLE-16

RESERVES TO EQUITY CAPITAL OF JEE

(Rs.in lakes)

YEAR

(a)

Reserves funds

(b)

Equity Capital

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

33.857.449.3034.2928.003.23

9.75

37.5050.0050.0050.0050.0050.00

100.00

90.2014.9018.6068.6056.0006.47

09.75


CHART-8

RESERVES TO EQUITY CAPITAL RATIO

2005 2006 2007 2008 2009 2010 2011

27

48.85 47.88

92.6101.87

117.66

155.62

90.2

14.9 18.6

68.6

56

6.479.75

RESERVES TO EQUITY CAPITAL RATIO CHART-8

JPPL JEE


59/121

Interpretation

Jayalakshmi pressing private limited reserves to equity capital ratio 27.00, 48.85,47.88, 92.60, 101.87, 117.66, 155.62 highest reserves to equity capital ratio

155.62(2011) and lowest reserves to equity capital ratio 27.00(2005).

Jayalakshmi engineering enterprises reserves to equity capital ratio 90.20, 14.90,18.60, 68.60, 56.00, 6.47, 9.75 highest reserves to equity capital ratio 90.20(2005)

and lowest reserves to equity capital ratio 6.47(2010).

Jayalakshmi pressing private limited reserves to equity capital ratio is satisfied,Jayalakshmi engineering enterprises reserves to equity capital ratio is unsatisfied.


60/121

9. Fixed Asset to Net worth Ratio

The ratio established the relationship between fixed assets & shareholders funds. (i.e.)

share capital plus reserves, surpluses & retained earnings. The ratio can be calculated as follows.

Fixed Asset to net worth ratio is calculated as

Fixed assets (after depreciation)

Fixed Asset to net worth ratio = ---------------------------------

Shareholders fund

TABLE-17

FIXED ASSET TO NET WORTH RATIO OF JPPL

(Rs.in lakes)

YEAR

(a)

Fixed Assets

(b)

Shareholders funds

(c)

Ratios

(b)%(c)

2005200620072008200920102011

67.62123.59170.19176.42169.16169.12223.97

63.5474.42140.45182.97191.78206.77242.84

1.061.661.210.960.880.820.92



61/121

TABLE-18

FIXED ASSET TO NET WORTH RATIO OF JEE

(Rs.in lakes)

YEAR

(a)

Fixed Assets

(b)

Shareholders funds

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

60.14128.8397.10120.54114.53111.94

164.40

71.3572.8059.3084.2978.0053.23

109.75

0.841.761.631.431.472.10

1.50


CHART-9

FIXED ASSET TO NET WORTH RATIO

2005 2006 2007 2008 2009 2010 2011

1.06

1.66

1.21

0.960.88 0.82

0.920.84

1.761.63

1.43 1.47

2.1

1.5

RATIO

YEAR

FIXED ASSETS TO PROPRIETARY RATIO CHART-9

JPPL JEE


62/121

Interpretation

Jayalakshmi pressing private limited fixed asset to net worth ratio 1.06,1.66, 1.21,0.96, 0.88, 0.82, 0.92 higher fixed asset to net worth ratio 1.66 (2006) and lower

fixed asset to net worth ratio 0.82(2010).

Jayalakshmi engineering enterprises fixed asset to net worth ratio 0.84, 1.76, 1.63,1.43, 1.47, 2.10, 1.50 higher fixed asset to net worth ratio 2.10(2010) and lower

fixed asset to net worth ratio 1.43(2008).

Jayalakshmi pressing private limited fixed asset to net worth ratio is satisfied,Jayalakshmi engineering enterprises fixed asset to net worth ratio is satisfied.


63/121

10. CURRENT ASSETS TO NET WORTH RATIO

The ratio is calculated by dividing the total of current assets by the amount of

shareholders funds.

Ratio of current assets to proprietors funds is calculated as

Current Assets

Ratio of current assets to proprietors funds= --------------------------

Shareholders funds

TABLE-19

CURRENT ASSETS TO PROPRIETORS FUNDS OF JPPL

(Rs.in lakes)

YEAR

(a)

Current Assets

(b)

Shareholders funds

(c)

Ratios

(b)%(c)

20052006

20072008200920102011

313.59479.05

621.06645.85428.71670.05794.44

63.5474.42

140.45182.97191.78206.77242.84

4.936.43

4.423.532.233.243.27



64/121

TABLE-20

CURRENT ASSETS TO PROPRIETORS FUNDS OF JEE

(Rs.in lakes)

YEAR

(a)

Current Assets

(b)

Shareholders funds

(c)

Ratios

(b)%(c)

200520062007200820092010

2011

193.81247.72263.77406.99385.69350.61

441.84

71.3572.8059.3084.2978.0053.23

109.75

2.713.404.454.834.976.59

4.03


CHART-10

CURRENT ASSETS TO NET WORTH RATIO

4.93

6.43

4.42

3.53

2.23

3.24 3.27

2.71

3.4

4.454.83 4.97

6.59

4.03

2005 2006 2007 2008 2009 2010 2011

RATIO

YEAR

CURRENT ASSETS TO PROPRIETARY RATIO CHART-10

JPPL JEE


65/121

Interpretation

Jayalakshmi pressing private limited current asset to net worth ratio 4.93, 6.43,4.42, 3.53, 2.23, 3.24, 3.27 higher current asset to net worth ratio 6.43(2006) and

lower current asset to net worth ratio 2.23(2009).

Jayalakshmi engineering enterprises current asset to net worth ratio 2.71, 3.40,4.45, 4.83, 4.97, 6.59, 4.03 higher current asset to net worth ratio 6.59(2010) and

lower current asset to net worth ratio 2.71(2005).

Jayalakshmi pressing private limited current asset to net worth ratio is satisfied,Jayalakshmi engineering enterprises current asset to net worth ratio is satisfied.


66/121

COMPARATIVE BALANCE SHEET

This comparative balance sheet serves as a financial comparison from year to year.

Prepare this analysis at least once a year to see what kinds of trends are developing. Your future

financial security could very well depend on how well you grow and maximize your net worth.

A balance sheet is a financial snapshot of your business at a given date in time. It

includes your assets and liabilities and tells you your business net worth. Youve probably seen a

formal balance sheet for other businesses, or have paid an accountant to do one for yours.

It has been found out that in any organization balance sheet a very critical tool to

determine the success of the organization. But a very important question which arises is that

what is a balance sheet? The balance sheet is a statement of your companys relative wealth or

financial.


67/121

TABLE-21

COMPARATIVE BALANCE SHEET OF JPPL FORM 2004-2005

(Rs.in lakes)

Particulars

2004 2005 Increase Decrease Increase

%

Decreas

%

I. Sources of funds

1.Share Holders Fundsa) Share Capitalb) Reserve & Surplus

2. Loan Funds

a) Secure Loans

II Application of Funds1.Fixed Assets:Gross BlockLess Depreciation

2.Current

Assets,Loans&advancesa) Current Assetsb) Closing Stockc) Sundry Debtorsd) Cash in Hand &cash atbank

3.Current Liabilities &

Provisiona) Current Liabilitiesb) Provisions

Net C.A4. Miscellaneous Expenses

50.001.73

179.82

50.0013.54

260.77

-11.80

80.95

--

-

-67.90

45.00

--

-

231.55 324.32 92.76 - 40.00 -

67.598.12

80.5112.89

12.924.76

--

19.0058.00

--

59.47 67.62 8.15 - 13.00 -

60.53

186.404.6515.42

72.37

201.831.1938.18

11.84

15.42-

22.76

-

-3.46

-

19.00

8.27-

147.00

-

-74.36

-

267.01 313.59 46.57 - 0.17 -

96.98-

170.022.05

57.701.00

254.871.82

--

84.840.22

39.28-

--

--

49.0011.00

40.00-

--

Funds Applied 231.55 324.32 92.76 - 40.00 -



68/121

TABLE-22

COMPARATIVE BALANCE SHEET OF JEE FORM 2004-2005

(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds

1.Share Holders FundsShare Capital

2. Loan Funds

a)Secure Loansb)Profit&LossA/C

II Application of Funds

1.Fixed Assets:Gross Block

2.Current

Assets,Loans&advances

a) Closing Stock

b) Sundry Debtorsc) cash at bankd) Cash in Hand



Net C.A

4. Miscellaneous Expenses

22.50

31.7313.94

37.50

27.5933.85

1.50

-19.90

-

4.13-

66.67

-142.64

-

13.04-

68.18 98.94 30.76 - 45.12 -

47.62 60.14 12.52 - 26.29 -

47.62 60.14 12.52 - 26.29 -

39.74

50.790.2213.54

61.51

81.170.6750.45

21.76

30.370.4536.90

-

---

54.77

59.80201.23272.43

-

---

104.30 193.81 89.50 - 85.80 -

78.945.35

20.010.54

122.2933.19

28.320.48

43.3427.84

18.30-

--

-60.91

54.90520.41

91.44-

--

-11.10

Funds Applied 68.18 98.94 30.76 - 45.12 -



69/121

Interpretation

Jayalakshmi pressing private limited balance sheet long term liabilities increase theamount compare to (2004-2005) and current liabilities decrease. Fixed assets increase and

current assets decrease.

Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to(2004-2005) and current liabilities increase. Fixed assets increase and current assets

increase.

Jayalakshmi pressing private limited is long term liabilities so decrease stage andJayalakshmi engineering enterprises is long term liabilities decrease so growth stage.


70/121

TABLE-23


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds

1.Share Holders Fundsa) Share Capitalb) Reserve & Surplus2. Loan Fundsa) Secure Loans


2.Current





50.0013.54

260.77

50.0074.42

363.56

-60.88

10278

--

-

-44.9

39.0

--

-

324.32 437.99 113.66 - 35.0 -

80.5112.89

142.8919.29

62.376.39

- 77.049.0

-

60.14 12.35 - 5526 - 81.0

72.37

201.831.1938.18

97.93

343.050.3737.69

25.55

141.22--

-

-0.810.49

35.0

69.0--

-

-68.001.0

313.59 47905 165.46 - 52.0 -

57.701.00

254.871.82

162.523.73

312.791.82

104.812.73

57.92-

--

--

18.127.3

22.0-

--

--

Funds Applied 324.32 437.99 113.66 - 35.0 -



71/121

TABLE-24


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Funds


II Application of Funds1.Fixed Assets:Gross Block

2.Current

Assets,Loans&advancesa) Closing Stockb) Sundry Debtorsc) cash at bankd) Cash in Hand




37.50

27.5933.85

65.35

27.597.44

27.85

--

-

-26.40

74.27

--

-

-78.00

98.94 100.39 1.44 - 1.46 -

60.14 12.88 68.68 - 114.21 -

60.14 12.88 68.68 - 114.21 -

61.51

81.170.6750.45

64.27

137.857.7237.86

2.76

56.687.05

-

-

--

12.59

4.48

69.84104.67

-

-

--

24.95

193.81 247.72 53.91 - 27.87 -

122.2933.19

28.32

0.48

214.8161.77

-28.85

0.42

92.5128.57

-

-

--

9.22

0.60

75.6486.07

-

-

--

24.10

10.00

Funds Applied 9894 10039 144 - 1.46 -



72/121

Interpretation

Jayalakshmi pressing private limited balance sheet long term liabilities increase theamount compare to (2005-2006) and current liabilities increase. Fixed assets increase and

current assets decrease.

Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to(2005-2006) and current liabilities increase. Fixed assets increase and current assets

increase.

Jayalakshmi pressing private limited is long term liabilities& current liabilities increaseso decrease stage and Jayalakshmi engineering enterprises is long term liabilities

decrease so growth stage.


73/121

TABLE-25


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Funds

a) Secure Loans


2.Current





50.0074.42

363.56

95.0045.45

396.17

45.00-

32.60

-29.02

-

90.0-

08.0

-38.99

-

437.99 551.07 113.08 - 25.0 -

142.8919.29

200.3430.14

57.4510.85

--

40.056.0

--

124.00 170.19 46.60 37.0 -

97.93

343.050.3737.69

130.31

423.092.0965.56

32.38

80.001.7227.87

-

---

33.1

23.346.073.9

-

---

479.05 621.06 142.01 - 29.6 -

162.523.73

312.791.82

234.137.42

379.501.37

71.613.69

66.71-

--

-0.45

44.198.7

21.3-

--

-24.72

Funds Applied 43799 55107 113.08 - 25.0 -



74/121

TABLE-26


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Funds


II Application of Funds1.Fixed Assets:Gross Block2.PLA

2.Current



Provision

a) Current Liabilitiesb) Provisions

Net C.A


65.35

27.597.44

59.30

57.2915.09

-

29.697.64

6.05

--

-

107.62102.70

9.26

--

100.39 131.69 31.29 - 31.17 -

128.83

-

97.10

1.09

-

-

31.72

-

-

-

24.62

-

12.88 98.20 - 30.63 - 24.62

64.27

137.857.7237.86

71.71

158.755.8326.38

7.43

20.89--

-

-1.8911.47

11.57

15.15--

-

-24.5430.30

247.72 262.68 14.95 - 6.04 -

214.8161.77

-28.85

0.42

225.254.31

33.10

0.38

10.44-

61.96

-

-57.45

-

0.40

4.86-

214.72

-

-93.00

-

10.00

Funds Applied 100.39 131.69 31.29 - 31.17 -



75/121

Interpretation


current assets increase.

Jayalakshmi engineering enterprises long term liabilities increase the amount compare to(2006-2007) and current liabilities decrease. Fixed assets decrease and current assets

normal.

Jayalakshmi pressing private limited is liabilities increase and also assets increase sonormal stage and Jayalakshmi engineering enterprises is liabilities increase and also

assets decrease so unfortunate stage.


76/121

TABLE-27


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Fundsa) Secure Loansb)Loan from Directors


1.Fixed Assets:Gross BlockLess Depreciation

2.Current


a) Current Assetsb) Closing Stockc) Sundry Debtors

d) Cash in Hand &cash atbank



Net C.A


95.0045.45

396.1714.45

95.0087.97

373.6912.32

-42.52

--

--

22.472.12

-93.0

--

--

56.715.0

551.07 568.99 17.92 - 03.25 -

200.3430.14

189.6413.21

--

10.7016.93

--

05.056.0

170.19 176.42 6.23 - 04.00 -

130.31423.09

2.0965.56

168.64368.91

7.19101.09

38.32-

5.1035.52

-54.17

--

29.0-

24.354.0

-13.0

--

621.06 645.85 24.78 - 04.00 -

234.137.42

379.501.37

245.778.65

391.421.14

11.641.22

11.91-

--

-0.22

05.016.0

03.0-

--

-17.0

Funds Applied 551.07 568.99 17.92 - 03.25 -



77/121

TABLE-28


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Funds


II Application of Funds1.Fixed Assets:Gross Block2.PLA

2.Current



Provision


Net C.A


59.30

57.2915.09

84.29

51.629.09

24.99

--

-

5.666.00

42.15

--

-

9.8939.77

131.69 145.02 13.32 - 10.12 -

97.10

1.09

12.24

-

--

84.86-

--

87.39-

98.20 129.24 31.04 - 31.45 -

71.71

158.755.8326.38

121.05

251.140.5634.22

49.34

92.39-

7.83

-

-5.26

-

68.80

50.20-

29.70

-

-90.38

-

262.68 406.99 134.30 - 51.12 -

225.254.31

33.10

0.38

388.473.08

15.43

0.34

163.21-

-

-

-1.23

27.67

0.30

72.15-

-

-

-28.53

83.59

10.00

Funds Applied 131.69 145.02 13.32 - 10.12 -



78/121

Interpretation

Jayalakshmi pressing private limited balance sheet long term liabilities decrease theamount compare to (2007-2008) and current liabilities increase. Fixed assets decrease and

current assets increase.

Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to(2007-2008) and current liabilities increase. Fixed assets decrease and current assets

increase.

Jayalakshmi pressing private limited and Jayalakshmi engineering enterprises growthstage.


79/121

TABLE-29


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds




2.Current


a) Current Assetsb) Closing Stockc) Sundry Debtorsd) Cash in Hand &cash atbank




95.0087.97

373.6912.32

95.0096.78

272.405.41

-8.80

--

--

101.296.91

01.093.0

--

--

27.056.0

568.99 469.59 - 99.40 - 17.47

189.6413.21

182.0112.85

--

7.6226.06

--

04.019.7

176.42 169.16 - 7.26 - 04.0

168.64368.917.19

101.09

151.96209.415.8561.49

----

16.68159.501.3439.59

----

09.043.019.039.0

645.85 428.71 - 217.13 - 34.0

245.778.65

391.421.14

123.740.55

299.460.97

--

--

122.038.09

91.960.17

--

--

49.694.0

23.515.0

Funds Applied 568.99 469.59-

99.40-

17.47



80/121

TABLE-30


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Funds


II Application of Funds1.Fixed Assets:Gross Block

2.Current



Provision


Net C.A


84.29

51.629.09

78.00

28.641.82

-

--

6.29

22.977.26

-

--

7.47

44.5179.90

145.02 108.47 - 36.54 - 25.20

12.24 114.53 - 6.00 - 4.98

129.24 114.53 - 6.00 - 4.98

121.05

251.140.5634.22

97.81

231.250.6855.93

-

-0.1221.71

23.24

19.88--

-

-22.6363.42

19.20

7.92--

406.99 385.69 - 21.29 - 5.23

388.473.08

15.43

0.34

388.323.73

-6.36

0.31

-650.61

-

-

0.14-

21.80

0.30

-21.08

-

-

0.03-

141.27

10.00

Funds Applied 145.02 108.47 - 36.54 - 25.20



81/121

Interpretation

Jayalakshmi pressing private limited balance sheet long term liabilities decrease theamount compare to (2008-2009) and current liabilities decrease. Fixed assets decrease

and current assets decrease.

Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to(2008-2009) and current liabilities decrease. Fixed assets decrease and current assets

decrease.

Jayalakshmi pressing private limited and Jayalakshmi engineering enterprises liabilities isgood stage and assets is unfortunate stage.


82/121

TABLE-31


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds




2.Current


a) Current Assetsb) Closing Stockc) Sundry Debtorsd) Cash in Hand &cash atbank




95.0096.78

272.405.41

95.00111.77

370.739.41

-14.99

98.334.00

--

--

-15.49

36.0973.96

--

--

469.59 586.93 117.33 - 24.98 -

182.0112.85

181.8112.69

--

0.190.15

---

0.111.24

169.16 169.12 - 0.30 - 0.02

151.96209.415.8561.49

194.7036.958.15

110.18

42.74-

2.3048.68

-172.45

--

28.12-

39.4379.16

-82.35

--

428.71 670.05 241.33 - 56.29 -

123.740.55

299.460.97

194.708.42

416.920.87

70.967.87

117.46-

--

-0.90

57.351427.41

39.22-

--

-10.00

Funds Applied 469.59 586.93 117.33 - 24.98 -



83/121

TABLE-32


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Fundsa)Secure Loans

b)Profit&LossA/C


1.Fixed Assets:Gross Block

2.Current




Net C.A


78.00

28.641.82

53.23

16.836.63

-

-4.80

24.76

11.81-

-

-263.11

31.75

41.22-

108.47 76.71 - 31.76 - 29.28

114.53 111.94 - 2.58 - 2.26

114.53 111.94 - 2.58 - 2.26

97.81231.25

0.6855.93

129.31197.53

0.3023.73

31.50-

--

-33.72

0.6532.20

32.21-

--

-14.58

95.0457.57

385.69 350.61 - 35.08 - 9.10

388.323.73

-6.360.31

381.774.35

-35.510.27

-0.61

--

6.54-

29.140.30

-16.43

--

2.01-

457.6510.00

Funds Applied108.47 76.71 - 31.76 - 29.28



84/121

Interpretation

Jayalakshmi pressing private limited balance sheet long term liabilities increase theamount compare to (2009-2010) and current liabilities increase. Fixed assets decrease and

current assets increase and closing stock decrease.

Jayalakshmi engineering enterprises long term liabilities decrease the amount compare to(2009-2010) and current liabilities decrease. Fixed assets decrease and current assets

decrease closing stock increase.

Jayalakshmi pressing private limited liabilities is good stage and assets unfortunate stage.Jayalakshmi engineering enterprises is growth stage.


85/121

TABLE-33


(Rs.in lakes)

Particulars


%

Decreas

%

I. Sources of funds


2. Loan Funds

a) Secure Loansb)Loan from Directors


1.Fixed Assets:Gross BlockLess Depreciation

2.Current




Net C.A


95.00111.77

370.739.41

95.00147.84

373.55-

-36.06

2.82-

--

--

-32.26

0.76-

--

--

586.93 616.39 29.46 - 14.49 -

181.8112.69

234.5510.57

52.73-

-2.11

29.01-

-16.53

169.12 223.97 24.85 - 14.69 -

194.7036.95

8.15110.18

185.44505.93

1.20101.85

-468.97

--

9.25-

9.648.32

-1269.17

--

4.75-

118.267.55

670.05 794.44 124.38 -18.57 -

194.708.42

416.920.87

332.5114.71

447.210.78

137.816.28

30.28-

--

-0.80

70.7874.61

7.26-

--

-10.00

Funds Applied 586.93 671.97 85.04 - 14.49 -



86/121


87/121

Interpretation


current assets decrease and closing stock increase.

Jayalakshmi engineering enterprises long term liabilities increase the amount compare to(2010-2011) and current liabilities increase. Fixed assets increase and current assets

increase.

Jayalakshmi pressing private limited liabilities is unfortunate stage and fixed assetsfortunate stage. Jayalakshmi engineering enterprises liabilities is unfortunate stage and

current asset is good stage.


88/121

COMPARATIVE INCOME STATEMENT

Meaning

A two-year comparative income statement shows revenue and expenses over the current

and previous years, how much revenue and expenses have increased or decreased, and the

percentage they have increased or decreased. Use this template to create a two-year comparative

income statement.

Much of this information is contained in periodic financial reports. At the top

management and divisional levels, the most important of these is the comparative income

statement, one of which is illustrated in Table 5. This shows the profit that was planned for this

period, the actual results received for this period, and the differences, or variances, between the

two.

Uses of comparative income statement

Identify of components of a classified income statement Understand why tax expense on the income statement is not always the same as taxes

paid during the year.

Distinguish gains and losses categorized as extraordinary and how they are reflected onthe income statement.

Cost of Goods Soldlearn what this means to an analysis of expenses.


89/121

TABLE-35

COMPARATIVE INCOME STATEMENT OF JPPL FORM 2004-2005

(Rs.in lakes)

Particulars

31 December Increasing(+)

Decreasing(-) Percentage

(%)

2004 2005

Net Sales

Less: Cost of goods Sold

Gross Profit(A)

Operating Expenses:

Administrative expenses

Tot

Documents

Muni Project Full.muni