summer internship program report "Ratio analysis"

A Summer Training Report

On

“RATIO ANALYSIS”

To know about the profitability and liquidity of the firm

At

VNS GROUP OF INSTITUTION(VIDYA NIKETAN SAMITI)

Submitted by: -

GANESH MOURYABatch 2015-17

MBA IInd Semester

VNS BUSINESS SCHOOL

Year 2016

DECLARATION

I hereby declare that my Summer Training Report entitled Ratio Analysis is an authentic work done by me as part of my study at VIDYA NIKETAN SAMITI (VNS) Group of institution.

The Project was undertaken as a part of the course curriculum of MBA (full time course) Program of VNS BUSINESS SCHOOL, Bhopal. This has not been submitted to any other examination body earlier.

Date: _________

(Ganesh Mourya)

MBA (Full time course)

IInd Semester

VNS Business School

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and college. I would like to extend my sincere thanks to all of them.

I am highly indebted to Prof. Meeta Sharma Moghe & Mr. Nihkilesh Mourya for their guidance and constant supervision as well as for providing necessary information regarding the assignment & also for their support in completing the assignment. I express my sincere regard to Dr. Sulakshna Tiwari, college and his valuable support. And my sincere thanks to Prof. Shirish Varma, Anirudh Pare Sir,for valuable support.

I also show me in debt ness to my institute, VNS Business School Bhopal to give such an opportunity take up this project.

I would like to express my gratitude towards my parents for their kind co-operation and encouragement which help me in completion of this assignment.

I also thanks to employee’s VNS GROUP OF INSTIUTION BHOPAL who develop their valuable time by helping me to my project & cooperated with me at all level.

GANESH MOURYA

INDEX

TABLE CONTENT PAGE NUMBER

DeclarationCertificateAcknowledgementCHAPTERS: -1. Introduction of topic 1.1 Financial Ratio Analysis 1.2 Liquid ratio 1.3 Solvency ratio 1.4 Profitability ratio2. Organization/organization profile3. Research methodology4. Data analysis and interpretation5. Conclusion and recommendation6. BIBLIOGRAPHY

IIIIII

06-0607-0708-0809-0910-1112-1415-3637-3839

INTRODUCTION OF THE TOPIC

Financial Ratio AnalysisFinancial ratios are mathematical comparisons of financial statement accounts or categories. These relationships between the financial statement accounts help investors, creditors, and internal Organization management understand how well a business is performing and areas of needing improvement.

Financial ratios are the most common and widespread tools used to analyze a business' financial standing. Ratios are easy to understand and simple to compute. They can also be used to compare different companies in different industries. Since a ratio is simply a mathematically comparison based on proportions, big and small companies can be use ratios to compare their financial information. In a sense, financial ratios don't take into consideration the size of an Organization or the industry. Ratios are just a raw computation of financial position and performance.

Ratios allow us to compare companies across industries, big and small, to identify their strengths and weaknesses. Financial ratios are often divided up into seven main categories: liquidity, solvency, efficiency, profitability, market prospect, investment leverage, and coverage.

Financial ratio Liquidity ratio Profitability ratio Solvency ratio

Liquidity RatiosLiquidity ratios analyze the ability of an Organization to pay off both its current liabilities

as they become due as well as their long-term liabilities as they become current. In other

words, these ratios show the cash levels of an Organization and the ability to turn other

assets into cash to pay off liabilities and other current obligations.

Liquidity is not only a measure of how much cash a business has. It is also a measure of

how easy it will be for the Organization to raise enough cash or convert assets into cash.

Assets like accounts receivable, trading securities, and inventory are relatively easy for

many companies to convert into cash in the short term. Thus, these assets go into the

liquidity calculation of an Organization.

Here are the most common liquidity ratios.

Quick Ratio Acid Test Ratio Current Ratio Working Capital Working Capital Ratio Times Interest Earned Ratio

Profitability RatiosProfitability ratios compare income statement accounts and categories to show an Organization's ability to generate profits from its operations. Profitability ratios focus on an Organization's return on investment in inventory and other assets. These ratios basically show how good companies can achieve profits from their operations.

Investors and creditors can use profitability ratios to judge an Organization's return on investment based on its relative level of resources and assets. In other words, profitability ratios can be used to judge whether companies are making enough operational profit from their assets. In this sense, profitability ratios relate to efficiency ratios because they show how good companies are using their assets to generate profits. Profitability is also important to the concept of solvency and going concern.

Here are some of the key ratios that investors and creditors consider when judging how profitable an Organization should be:

Gross Margin Ratio Profit Margin Return on Assets Return on Capital Employed Return on Equity

Solvency RatiosSolvency ratios, also called leverage ratios, measure an Organization's ability to sustain operations indefinitely by comparing debt levels with equity, assets, and earnings. In other words, solvency ratios identify going concern issues and a firm's ability to pay its bills in the long term. Many people confuse solvency ratios with liquidity ratios. Although they both measure the ability of an Organization to pay off its obligations, solvency ratios focus more on the long-term sustainability of an Organization instead of the current liability payments.

Solvency ratios show an Organization's ability to make payments and pay off its long-term obligations to creditors, bondholders, and banks. Better solvency ratios indicate a more creditworthy and financially sound Organization in the long-term.

The most common solvency ratios include

Debt to Equity Ratio Equity Ratio Debt Ratio

ORGANIZATION PROFILE

Organization information

Group of Institutions, Bhopal

Promoted by Vidya Niketan Samiti, Estd. 1994Gateway to Global Knowledge

Vidya Niketan Samiti, Bhopal (VNS)

VNS was established and registered in 1994 under the M.P. Societies Registration Act (Reg. No. 26510 dated 25th December, 1994). Promoters of VNS group are acknowledged business people having ventures in the areas of mining of iron-ore, manganese and bauxite, construction, refractory manufacturing and daily newspaper publishing. VNS group is committed towards promoting quality education and research oriented activities through dynamic linkages with industry.

Vision:

To be known as an institute for its excellence in education by producing individuals who are technically sound, ethically strong and self-reliant.

Mission:

Impart quality education enriched with contemporary knowledge. Develop employ-ability skills through corporate synergy activities. Strengthen innovative thinking by facilitating research. Nurture and confirm discipline, ethical values through individual attention.

VNS Group of Institutions

Vidya Niketan Samiti manages education in the areas of Engineering, Pharmacy, Management, Physical Education & Teachers Education. All the courses are duly approved by appropriate regulatory bodies like AICTE, PCI, NCTE and are affiliated to RGPV, Bhopal and Barkatullah University, Bhopal. Details of colleges managed by VNS are given below.

FACULTY OF MANAGEMENT (Formerly VNS Institute of Management, established 1996)Approved by AICTE, Affiliated to Barkatullah University, Bhopal

Associate Director: Dr. Roopali Bajaj

-------------------------------------------------------------------------------------------

FACULTY OF PHARMACY (Formerly VNS Institute of Pharmacy, established 1996)Approved by AICTE & PCI, Affiliated to RGPV, Bhopal

Associate Director: Dr. Vipin Dhote

FACULTY OF ENGINEERING (Formerly VNS Institute of Technology, established 2006)Approved by AICTE, Affiliated to RGPV, Bhopal

Vice Principal: Prof. G.D. Singh

VNS BUSINESS SCHOOL (Established 2010)(Approved by AICTE, Ministry of HRD, Govt. of India)

Director: Dr. Sulakshna Tiwari

VNS COLLEGE OF PHYSICAL EDUCATION AND MANAGEMENT STUDIES (Established 1995)(Approved by NCTE, Affiliated to Barkatullah University, Bhopal)

Principal: Dr. Rajesh Tripathi

RESEARCH METHODOLOGY

Research Methodology

Research methodology is a methodology for collecting all sort of information and data pertaining to the subject in question. The objective is to examine all the issues involved and conduct situational analysis. The methodology includes the overall research design, sampling, procedure and fieldwork done. The methodology used in the study consistent of sample survey using both primary and secondary data. The primary data has been collected with the questionnaire as well as personal observation book, magazine; journals have been referred for secondary data. The questionnaire has been drafted and presented by the researcher himself.

Definition of Research Methodology

“The process used to collect information and data for making business decisions. The methodology may include publication research, interview, survey and other research techniques, and could include both present and historical information.”

In simple terms methodology, can be defined as, it is used to give a clear-cut idea on what the researcher is carrying out his or her research. To plan in a right point of time and to advance the research work methodology makes the right platform to the researcher to mapping out the research work in relevance to make solid plans.

More over methodology guides the researcher to involve and to be active in his or her field of enquiry. Most of the situations the aim of the research and the research topic won’t be same at all time it varies from its objectives and flow of the research but by adopting a suitable methodology this can be achieved.

On the other hand, from the methodology the internal environment constitutes by understanding and identifying the right type of research, strategy, philosophy, time horizon, approaches, followed by right procedures and techniques based on his or her research work. In other hand the research methodology acts as the nerve center because the entire research is bounded by it and to perform a good research work, the internal and external environment must follow the right methodology process.

Types of Research:

Descriptive Research

Exploratory Research

RESEARCH OBJECTIVESRESEARCH OBJECTIVES

First and foremost, objective is to understand what VNS group of Institution is. First and foremost, objective is to understand what VNS group of Institution is.

To find out the Product and Services provided by the VNS group of Institution.To find out the Product and Services provided by the VNS group of Institution.

To generate the leads through the survey.To generate the leads through the survey.

To sort out the prospective leads from the data I have collected through survey.To sort out the prospective leads from the data I have collected through survey.

To analyze the role of VNS group of Institution in Indian market.To analyze the role of VNS group of Institution in Indian market.

To know about the various concepts VNS group of Institution for facilitating theTo know about the various concepts VNS group of Institution for facilitating the

Indian peoples.Indian peoples.

To study the performance of the To study the performance of the VNS group of InstitutionVNS group of Institution..

To understand the day-to-day work carryTo understand the day-to-day work carry out by the organization.out by the organization.

To get the latest news related to the organization.To get the latest news related to the organization.

To know the actual position of the To know the actual position of the VNS group of InstitutionVNS group of Institution in serving their in serving their

products in Indian market.products in Indian market.

Scope of StudyWhile studying the aspects of the VNS group of InstitutionVNS group of Institution realize it is a great effort by the VNS VNS group of Institutiongroup of Institution to serve the peoples of India and Indian market with their products. Because in India it is very difficult to do such kind of business because of different policies, corruption, politics and the most important the taste of the consumer. Instead of such difficulties VNS group of Institution is on the 1st position and maintain it.

DATA COLLECTION

Collection of data is done by different sources, i.e. –

Research Types :- Descriptive Research

Secondary Data Secondary Data

Secondary data is collected from various sources like – websites, Magazines, Newspapers, Journals, Reports, and Books etc.

Secondary data is the data which is not collected from primary source, means Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and may be available when primary data cannot be obtained at all.

Limitation of Study

There is no activity that can be completed without any limitation. The main limitations faced during the preparation of this project report are: -

Time available for the completion of the project is very short; hence much information could not be undertaken.

The information collected through secondary data. Some of the information might be wrong, misunderstood and typically described (can’t be understand by students).

There are very huge areas covered by VNS group of InstitutionVNS group of Institution so it is not possible to analyze all the data.

Cooperation with the employees of the organization is very important while collecting data for the project work, so there is a little bit of problem faced by me for collecting the data.

DATA ANALYSIS AND

INTERPRETATION

VNS group of InstitutionStandalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 months 12 months 12

months12

months12

months

Sources of FundsTotal Share Capital 128.30 128.30 128.30 128.30 73.32Equity Share Capital 128.30 128.30 128.30 128.30 73.32Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 2,928.55 2,572.58 2,161.51 1,622.00 1,153.99Revaluation Reserves 0.00 0.00 14.27 14.42 14.58Net worth 3,056.85 2,700.88 2,304.08 1,764.72 1,241.89Secured Loans 12.93 0.20 8.23 13.82 34.52Unsecured Loans 0.75 2.06 5.17 12.96 19.15Total Debt 13.68 2.26 13.40 26.78 53.67Total Liabilities 3,070.53 2,703.14 2,317.48 1,791.50 1,295.56


12 months 12 months 12

months12

months12

months

Application of FundsGross Block 1,485.00 1,365.61 1,604.18 1,171.40 1,111.53Less: Accum. Depreciation 784.65 748.42 728.88 637.59 600.82Net Block 700.35 617.19 875.30 533.81 510.71Capital Work in Progress 74.91 58.29 47.69 33.03 12.95Investments 1,055.04 1,052.50 781.64 688.06 265.52Inventories 548.50 449.60 405.72 303.53 281.32Sundry Debtors 1,840.62 1,735.62 1,510.18 1,212.79 1,012.26Cash and Bank Balance 288.79 321.10 124.22 112.43 181.49Total Current Assets 2,677.91 2,506.32 2,040.12 1,628.75 1,475.07Loans and Advances 761.41 336.19 587.55 402.31 516.55Fixed Deposits 0.00 0.00 26.67 436.07 291.02Total CA, Loans & Advances 3,439.32 2,842.51 2,654.34 2,467.13 2,282.64

Differed Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 2,013.13 1,717.06 1,634.38 1,534.63 1,265.88

Provisions 185.96 150.29 407.11 395.90 510.38Total CL & Provisions 2,199.09 1,867.35 2,041.49 1,930.53 1,776.26Net Current Assets 1,240.23 975.16 612.85 536.60 506.38Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 3,070.53 2,703.14 2,317.48 1,791.50 1,295.56

Contingent Liabilities 1,422.59 326.08 278.74 362.56 788.21Book Value (Rs) 47.65 42.10 35.70 27.28 33.48VNS group of Institution Previous Years »

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------


12 months

12 months

12 months

12 months

12 months

IncomeSales Turnover 7,571.07 6,934.47 6,411.18 5,627.68 4,971.85Excise Duty 435.77 366.45 325.05 232.09 293.06Net Sales 7,135.30 6,568.02 6,086.13 5,395.59 4,678.79Other Income 98.68 74.39 95.68 124.18 -67.25Stock Adjustments 42.99 8.72 56.84 49.29 1.66Total Income 7,276.97 6,651.13 6,238.65 5,569.06 4,613.20ExpenditureRaw Materials 5,496.25 4,723.10 4,083.39 3,534.44 3,101.11Power & Fuel Cost 47.30 42.66 35.90 31.02 29.04Employee Cost 411.17 363.59 310.17 255.79 227.23Other Manufacturing Expenses 28.04 201.41 245.26 200.37 173.63Selling and Admin Expenses 0.00 37.65 500.68 508.56 351.80Miscellaneous Expenses 600.92 487.65 40.86 56.38 43.53Preoperative Exp. Capitalized 0.00 0.00 -6.20 -0.04 -1.17Total Expenses 6,583.68 5,856.06 5,210.06 4,586.52 3,925.17


12 months

12 months

12 months

12 months

12 months

Operating Profit 594.61 720.68 932.91 858.36 755.28PBDIT 693.29 795.07 1,028.59 982.54 688.03Interest 25.41 27.66 20.69 20.00 28.55PBDT 667.88 767.41 1,007.90 962.54 659.48

Depreciation 71.86 90.71 80.89 51.90 45.21Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 596.02 676.70 927.01 910.64 614.27Extra-ordinary items 0.00 -18.29 0.00 0.00 0.00PBT (Post Extra-Ord Items) 596.02 658.41 927.01 910.64 614.27Tax 150.18 171.84 232.68 293.30 217.18Reported Net Profit 445.84 504.86 694.33 617.34 397.09Total Value Addition 1,087.43 1,132.96 1,126.67 1,052.08 824.06Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 76.98 89.81 141.13 80.65 73.31Corporate Dividend Tax 12.69 14.57 23.29 13.70 12.46Per share data (annualized)Shares in issue (lakhs) 6,414.92 6,414.92 6,414.92 6,414.92 3,665.67Earning Per Share (Rs) 6.95 7.87 10.82 9.62 10.83Equity Dividend (%) 60.00 70.00 110.00 110.00 100.00Book Value (Rs) 47.65 42.10 35.70 27.28 33.48

Liquidity Ratios

1. Current Ratio =

Current Assets Current Liabilities

Current Assets =

Cash in hand, bank, Short Term Investments, Bills Receivable, Sundry Debtors, Stock, Work in Progress, Prepaid Expenses etc.

Current Liabilities =

Outstanding Expenses, Creditors, Bills Payable, Long term Loans, Income Tax Payable, Dividend payable, Bank OD (If Permanent)

Ideal Ratio is 2:1

For 2009

1753.54 = 1.38: 11265.88

For 2010

2349.84 = 1.53: 1 1534.63

For 2011

2880.05 =1.76: 1 1634.38

For 2012

3617.11 = 2.10: 1 1717.06

For 2013

3807.86 = 1.89: 1 2013.13

Interpretation

Current ratio is a measure of liquidity of a Organization at a certain date. It must be analyzed in the context of the industry the Organization primarily relates to. The underlying trend of the ratio must also be monitored over a period of time

In VNS group of Institution India I analyze that the current ratios of different 5 years are very close to the ideal current ratio i.e. 2:1 which was the good sign for the organization.

Graphical Representation

Current Ratio

2009 2010 2011 2012 20130

0.5

1

1.5

2

2.5

1.381.53

1.76

2.11.89

2. Quick Ratio =

Quick Assets or Liquid Assets Quick Liabilities or Liquid Liabilities

Quick Assets=

Current Assets – Prepaid Expenses – Stock

Ideal Ratio is 1: 1

For 2009

1472.22 = 1.16: 11265.88

For 2010

2046.31 = 1.33: 11534.63

For 2011

2474.33 = 1.51: 11634.38

For 2012

3167.51 = 1.84: 11717.06

For 2013

3259.36 = 1.61: 1 2013.13

Interpretation

Quick ratio is considered a more reliable test of short-term solvency than current ratio because it shows the ability of the business to pay short term debts immediately.

As we seen in the VNS group of Institution India the ratios are quite close enough to the ideal condition 1:1 and it indicates that the organization maintain its liquidity for paying short term debts.


Quick ratio

2009 2010 2011 2012 20130

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

1.16

1.33

1.51

1.84

1.61

3. Cash Position Ratio

Cash + Marketable Securities Current Liabilities

Ideal ratio is 1:2

For 2009

447.01 = 0.35: 1 1265.88

For 2010

800.49 = 0.52: 1 1534.63

For 2011

905.86 = 0.55: 1 1634.38

For 2012

1373.6 = 0.79: 1 1717.06

For 2013

1343.83 = 0.66: 1 2013.13

Interpretation

Cash position ratios are calculated to compare the proportion of cash and short term investments with the current liabilities.

As we seen in the financial analysis of VNS group of Institution India we realize that they were in the fine condition. Because all ratios of different years are close to the ideal condition i.e. 1:2.


Cash position Ratio

2009 2010 2011 2012 20130

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

0.35

0.520.55

0.79

0.660000000000001

Activity Ratios

1. Fixed Assets Turnover Ratio

Net Sales Average Total Assets

Average Total Assets = Opening total assets + Closing total assets 2

For 2009

4678.79 = 3.61: 1 1295.56

For 2010

5395.59 = 3.49 : 1 1543.53

For 2011

6086.13 = 2.96: 1 2054.45

For 2012

6568.02 = 2.61: 1 2510.31

For 2013

7135.30 = 2.47: 1 2886.83

Interpretation

The fixed asset turnover ratio is the ratio of net sales to net fixed assets. A high ratio indicates that a business is: Doing an effective job of generating sales with a relatively small amount of fixed assets A low ratio indicates that a business: Is overinvested in fixed assets.

But in VNS group of Institution it is not in well condition


Fixed Asset Turnover Ratio

2009 2010 2011 2012 20130

0.5

1

1.5

2

2.5

3

3.5

43.61

3.49

2.96

2.612.47

2. Inventory Turnover Ratio =

Cost of Goods SoldAverage Stock

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Average Stock= Opening Stock + Closing Stock 2

For 2010

3512.23 = 12.01 times292.42

For 2011

3981.2 = 11.22 times354.62

For 2012

4679.22 = 10.94 times427.66

For 2013

5397.33 = 10.81 times499.05

Interpretation

A low inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate of return of zero. It also implies either poor sales or excess inventory. A low turnover rate can indicate poor liquidity, possible overstocking, and obsolescence, but it may also reflect a planned inventory buildup in the case of material shortages or in anticipation of rapidly rising prices.

A high inventory turnover ratio implies either strong sales or ineffective buying (the Organization buys too often in small quantities, therefore the buying price is higher).A high inventory turnover ratio can indicate better liquidity, but it can also indicate a shortage or inadequate inventory levels, which may lead to a loss in business. But in VNS group of Institution India it not very high it is generally low.

Graphical representation

Inventory Turnover Ratio

2010 2011 2012 201310.2

10.4

10.6

10.8

11

11.2

11.4

11.6

11.8

12

12.212.01

11.22

10.9410.81

3. Working Capital Turnover Ratio =

Net Sales Average Working Capital

Average Working Capital = Opening Working Capital + Closing Working Capital 2

For 2009

4678.79 = 36.12: 1120.95

For 2010

5395.59 = 23: 1229.9

For 2011

6086.13 = 15.07: 1403.6

For 2012

6568.02 = 12.41: 1529

For 2013

7135.30 = 10.71: 1666

Interpretation

Generally, a high working capital turnover ratio is better. A low ratio indicates inefficient utilization of working capital. The ratio should be carefully interpreted because a very high ratio may be a sign of insufficient working capital. And in VNS group of Institution India it is well condition.


Working Capital Turnover Ratio

2009 2010 2011 2012 20130

5

10

15

20

25

30

35

4036.12

23

15.0712.41

10.71

Profitability Ratios

1. Gross Profit Ratio=

Gross Profit * 100 Net sales

For 2009

1111.53 * 100 = 23.75 %4678.79

For 2010

1171.40 * 100 = 21.70 %5395.79

For 2011

1604.18 * 100 = 26.35%6086.13

For 2012

1365.61 * 100 = 20.79 %6568.02

For 2013

1485.66 * 100 = 20.82 %7135.30

Interpretation

Gross profit is very important for any business. It should be sufficient to cover all expenses and provide for profit. There is no norm or standard to interpret gross profit ratio (GP ratio). Generally, a higher ratio is considered better. And in VNS group of Institution it is high that means the better condition for the organization.


Gross Profit

2009 2010 2011 2012 20130

5

10

15

20

25

30

23.7521.7

26.35

20.79 20.82

2. Net Profit Ratio =

Net Profit after Tax * 100 Net Sales

For 2009

397.09 * 100 = 8.48 %879.78

For 2010

617.34 * 100 = 11.44 %5395.59

For 2011

694.33 * 100 = 11.40 %6086.13

For 2012

504.86 * 100 = 7.68 %6568.02

For 2013

445.84 * 100 = 6.24 %7135.30

Interpretation

Net profit (NP) ratio is a useful tool to measure the overall profitability of the business. A high ratio indicates the efficient management of the affairs of business. There is no norm to interpret this ratio.


Net Profit

2009 2010 2011 2012 20130

2

4

6

8

10

12

14

8.48

11.44 11.4

7.68

6.24

3. Expenses Ratio =

Particular Expenses * 100 Net Sales

For 2009 (Manufacturing Expenses)

173.63 * 100 = 3.71 %4678.79


200.37 * 100 = 3.71 %5395.59


245.26 * 100 = 4.02 %6086.13


201.41 * 100 = 3.06 %6568.02


28.04 * 100 = 0.39 %7135.30

Interpretation

Expense ratio shows what percentage of sales is an individual expense or a group of expenses. A lower ratio means more profitability and a higher ratio means less profitability. And it is quite good condition of manufacturing expenses in VNS group of Institution. It means they were not incurred huge expenses.


Manufacturing Expenses

2009 2010 2011 2012 20130

0.5

1

1.5

2

2.5

3

3.5

4

4.5

3.71 3.714.02

3.06

0.390000000000001

CONCLUSION AND

RECOMMENDATION

Conclusion

Financial Analysis plays a very important role in providing facts and figures for the decision makers. In the same way ratios, will act analysis kit in the hands of financial analyst, these ratios will help is and in answering the basic question like why, how what of these statements.

Now a day’s financial analysis in very much in consideration for decision making, in deciding what to do and what not to do are required to analyze the data as per their requirements. Thus, in my project I try brief outline of ratio analysis i.e. how to analyze the facts and figures given in the financial statements.

Throughout my project, I have analyzed Organization’s financial position and pros and cons of the situations and I have also interpreted the data. Despite some limitation, I try to analyze and interpreted the facts and figures with accuracy.

Based on the analysis and interpretation I tried to give my findings and suggestions for the Organization as per my best knowledge.

Finally, project really helps me in knowing the practical things of the corporate world. Really, I enjoyed this project work in its real spirit.

Suggestions and Recommendations

The Organization should adopt new technology to reduce cost.

The Organization shoed connect weekly meeting for the valuation of performance.

The Organization is in a good condition but they can also make it better.

Along with their new product and its distribution the Organization also must their employee and make them more benefits

Organization should maintain its good relations with the customers and suppliers of different region

Organization should work based on ethics and do not hurt the any religion by their false advertisements and any other conditions

BIBLIOGRAPHY

Bibliography www.vns.ac.in

www.myaccountingcourse.com

www.allbankingsolution.com

www.finansesolution.com

Books Reddy G. sudarshan, financial management

(principles and practices), Himalaya publication Panday I M, financial management, (10th edition),

vikas publication Gupta Shashi K., Sharma RK, Financial

management (theory and practice) 7th edition, Kalyani publication.

Bhalla V.K. Financial management and policy (text and cases), (7th edition), Anmol publication Pvt. Ltd.

chandra Prasanna (4th edition) (fundamental of financial management), Tata Mcgrow Hill Education Pvt. Ltd.

http://www.finansesolution.com/

http://www.allbankingsolution.com/

http://www.myaccountingcourse.com/

http://www.vns.ac.in/