ACKNOWLEDGEMENT

It is pleasure to present this report. I thank of then who helped me to get necessary information to prepare this report. First I would like to express me sincere thanks to our co-ordinate Pro. Seema Hariramani for arranging such a useful project on financial analysis. And I also share my obligation to my friends for helping me and lending me information for preparing for report. I am also very thankful to Ahmedabad stock exchange to provide us a financial report. I would like to my special thanks to our Prof. Komal Bhatiya who has always been a sources of inviolable information and encouragement for us. I also share my obligation to the administration staff of Shri Chimanbhai Patel Institute of Business Administration for their support.

VAGHELA ANIRUDDHSINH A

PREFACE
True learning is born out of experience and observation as a part of completion to the S.Y.B.B.A. I have taken this opportunity to discover myself real and management system of a reasonable big plant name Raymond Limited. A company is publishing its annual report for shareholders as per the companys get. However without analyzing the companys annual report. We can not know the actual position of the company. The shareholders by studying the balance sheet, sometimes feel safe that have instead in the company whose profit are increasing only the ratio analysis can appropriately unable assessment of the companys actual profitability. Hence, this practical activity of preparing report on financial analysis is very important for a statement who studying in the business administration.

INDEX
SECTION-1
Introduction to Financial Management Definition of Financial Management Function of Financial Management Introduction to Statements of Financial Management

SECTION-2
Introduction of the Company Strategic Moves of the Company Analysis of the Directors Report Statements of Significant A/C Policies and Practices

SECTION-3
Introduction of Ratio Analysis Types of Ratio Analysis Calculation of Ratio

SECTION-4
Common Size Statements of Profit and Loss A/C Comparative Statements of Profit and Loss A/C

SECTION-5
Common Size Balance Sheet Comparative Balance Sheet

SECTION-6
Introduction Cash Flow Statements Conclusion Bibliography

INTRODUCTION OF THE FINANCE

Money occupies a key position the capitalistic economies of the modern age. The view about finance functions have undergone remarkable changes overtime. Till 1950, finance function was regarded as the function only of raising finance for business and consequently the discussion centered round different sources of finance, financial institutions and financial documents etc. since last 30-40 years. However, an effective and efficient utilization of finance has also been considered as an important function of financial management. As a result of it, the scope of financial management has widened now and this development has been given due place in the present day syllabi on this subject. One of the most important functions of the top management is to raise finance at a right time and in a right quantity and also to use it most effectively. In fact this function constitutes the core of financial management. This is eidend from the fact that while all other functions of management can be and frequently are delegated to the other person. Monet is the life-blood of modern business money is required to purchase expensive machinery, and also for day-to-day expenses on raw materials, labour and operational and administrative needs of business. Execution of expansion plans and modernization programmes are not possible without adequate finance. Thus, money can described as the lifeblood of machinery of the industrial sector. In the words of Husband and Dockery, making possible the needed comperation between many units of activity. It is true, however, that the conclusion of the discussion that follows are, to a large extent, applicable to other terms of business organization also.

DEFINITION OF FINANCIAL MANAGEMENT

Financial management is concerned with the efficiencial use of an important economic resource namely, capital funds. - SOLOMAN Financial management is the application of the planning and control function to the finance function. - HOWARD & UPON Financial management is an area of finance decision making harmonizing individual motives and enterprise. - WESTON & BRAGHANI Financial management means that the management of money.

FUNCTIONS OF FINANCIAL MANAGEMENT

The following are the important functions to which finance with namely related: 1) 2) 3) 4) 5) Design Function Supply Function Production Function Distribution Function Personal Function

1) DESIGN FUNCTION:
It is incorrect to say that the resection of a design depends upon commercial success has a definite place in this design function. It is important to understand that irrespective of commercial success of the design function itself would fail it materials supply is short circuited material must be used economically and doing so accomplished costing procedure may be involved research development and others exploratory work must be eintertake for project the setting up of design division of an organization will largely depend generally nature of the organization itself its financial results and position overlong periods.

2) SUPPLY FUNCTION:
Through supply is essential requirement of the material it is important to study the procurement due to the organization the supply function no doubt ensure smooth flows of goods through the manufacturer and marketing division but at the same time one cant lose sight of the fact that the cost of the buying must be minimized.

3) PRODUCTION FUNCTION:
The production reigns supreme in any business enterprises. The reason is that on production depends the guess revenue of the enterprise and marketing, selling and other activities in the production function is given a freehand and allowed to work in isolation the situation that may arise will be distress.

4) DISTRIBUTION FUNCTION:
The distribution function is an important function of marketing management division on the use of physical channel of distribution of the productions are significant for their decision determine the efficiency or otherwise an organization. They will have to take into account the various methods different or policies various modes of advertising etc. It should be borne in mind that each aspect of the distribution function ahs a direct dealing on finance that taking in the consideration has fundamental pull must be backed the distribution function the finance function must be avoided.

5) PERSONAL FUNCTION:
The personal function has recently engaged the attention of hot only behavioral scientist of the practical manages. Firm cant work without the support of personal. If it is difficult to say what part is play by finance in relation to any other business function understand in addition to important of his own function well to operate successfully.

INTRODUCTION TO STATEMENT OF FINANCIAL MANAGEMENT

The basis of financial planning is analysis and making financial information. Financial information is needed compare and evaluates the firms earning ability. It is also required to add in economic decision making. A firm communicates financial information to the user through financial statements and reports the financial statements contain summarized information of the firm financial situation to users preparation of the financial statements and used by investors and financial analysis to examine the firm performance in order to make investment decision.

1) BALANCE SHEET:
Balance sheet is the most significant financial statement. It indicates the financial condition as the state of affairs of a business at a particulars moment of time more specially. Balance sheet contains information about resources and obligation of a business entity and about its owners interest in the business at detailed information about the firm Assets and Liabilities.

2) PROFIT AND LOSS A/C:

Profit and Loss A/C is a very important part of financial statement. It is also called income profit and loss statement is subordinates to the balance sheet because the form simply presents the details of change in the retained earning in balance sheet. It is vitual source of financial information P&L A/C summarized the result of the business operation during a specific period are shows them in the firms of the net income or net loss this statement is supplementations by a comparative statement of the cost of goods manufactured and sold.

It summarized a firm of a firm of operation period balance sheet. It like a still photograph income statement is like in resent time trust account have concerted priority on income the different between revenue and expenses is net profit or net loss is called profit and loss account.

3) CASH FLOW STATEMENT:

The fund flow statement indicates changes in working capital which have taken place during the year but the management is more interest in the changes in cash in flow and out flow during the last year and would guide the management in forming policy regarding cash management. The cash budget shows the projected inflow and outflow of cash for the future budget period while the cash flow statement is prepared on the historical financial statement.

INTRODUCTION OF THE COMPANY

HISTORY OF THE COMPANY: The company was incorporated in 1925, around that time the Singhania family was building, consolidating and expanding its various businesses in Kaupur one Mr. Wadia was in a similar manner engaged in fulfilling his dreams he set up a small wooden mill in the area around Thane Creek 40 Kms. Away from Bombay. This mill was soon acquired by the sessions, a well-known industrialist family of Bombay, who renamed it as the Raymond woolen mills. When the Singhanias were working for new regions to establish their presence and new fields to venture into they concurred that textiles appeared to hold promise. A piece of information that a woolen mill was available on the outskirts of Bombay clinched the issue. When the grandson of Lala Suggilal, Lala Kailashput Singhania took over Raymond in 1944, the coarse woolen blankets and modest quantities of law priced woolen fabric. The vision and foresight of Mr. Kailashpat Singhania helped greatly in establishing the S.K groups presence in the western region, under his able stewardship, Raymond upon a graduation and modernization producing woolen fabrics at a far superior quality. Under Mr. Gopalkrishana Singhania, the Mill become award class factory and the Raymond brand become synonymous with fine quality woolen fabric at Raymond, quality did not rest on it Laurels. When Dr. Vijay path Singhania took over the reins of the company in 1980. he injected trash vigor into a Raymond, transforming in a modern industrial conglomerate. His son Mr. Gautam Hari Singhania, present chairman and managing Director has been instrumental in restricting the group with the investment of the synthetic, steel and cement division he initiated the group has emerged stronger with a better bottom line or focused approach become market oriented and achieved a consolidated position.

Today, the woolen mill by the creek has turned into Rs.1400 crores conglomerate and is Indias leading producer of worsted suiting fabrics with 60% market shave. It is also the largest exporter of worsted fabrics and readymade garments to 54 countries including Australia Canada, USA the European Union and Japan. The Raymond group is also the leader among readymade of Rs. 2000 Million with its three brands Park avenue, Parks and mansion. In its pursuit of excellence Raymond countries to achieve enhanced customer satisfaction through on going innovation. And happily the growth graph continuous to rise higher and higher.

PRODUCT OF THE COMPANY

Raymond Limited produces many types of product. Following are the main product of Raymond textiles Limited. RAYMOND PARK AVENUE PARX MANZONI BE KAMSUTRA PREMIUM COLOUR PLUS

TREND ANALYSIS
1) SALES YEARS SALES 2003-04 111853 2004-05 111534.44 2005-06 130497.09 2006-07 127907.09 (In Lacks) 2007-08 131240

135000 130000 125000 120000 115000 110000 105000 100000

20 03 -0 4 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8

Sales

ANALYSIS: In this chart we show that the sale of the company was increasing every year except 2006-07. In the year 2007-08 the sales was increase 2.61%. Increasing that position of the company has well in market.

2) NET PROFIT YEARS NET PROFIT 2003-04 13184 2004-05 7681.65 2005-06 12229.10 2006-07 20125.28 (In Lacks) 2007-08 6612.17

25000 20000 15000 10000 5000 0

20 03 -0 4 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8

Net Profit

ANALYSIS: In this chart we show that the net profit of the company was many up and downs. This is not a good last year profit was RS. 6612.17 And its decrease by 67% of previous year. So it is bad position of the company in the market. Profit is decrease due to same reason. 3) DIVIDEND PER SHARE YEARS D.P.S. 2003-04 5.5 2004-05 4 2005-06 5 2006-07 5 (In Lacks) 2007-08 2.5

6 5 4 3 2 1 0
20 03 -0 4 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8

Dividend

ANALYSIS: In this chart we show that dividend per share is mostly same for 200304 to 2006-07. It can change in small difference but in the year 2007-08 it was decrease RS. 5 to RS.2.5 due to the decrease in profit. The dividend was decrease in same year.

4) EARNING PER SHARE YEARS E.P.S. 2003-04 21.6 2004-05 12.51 2005-06 19.92 2006-07 32.79 (In Lacks) 2007-08 11.8

35 30 25 20 15 10 5 0
20 03 -0 4 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8

EPS

ANALYSIS: In this chart we show that the companys earnings per share were many ups and downs. Last year E.P.S. was 11.8 per share it was the lowest earning per share to 2003-04. It decreases RS. 21.1 as compare the previous year due to decrease in profit.

STRATEGY MOVES OF THE COMPANY

RAYMOND ZAMBATI PRIVATE LIMITED
The companies a 50350 joint venture with reputed italiar manufacture cotonoficio Honegger, aimed at manufacturing fine cotton shirting fabric for premium international customer and domestics brands. Has come up on stream during the year. The companys state of the art production facilities at Kagal, Kolhapur commenced commercial production on October 1, 2006. Its products hare been well accepted in the international as well as domestic markets.

RAYMOND FEDORA PRIVATE LIMITED

The company a 50:50 joint venture with idnificlo fedora S.P.A. of Italy to manufacture sell and distribute woolen fabrics including blankets and shawls.

GAS APPAREL PRIVATE LIMITED

The company a 50:50 joint venture with grotto S.P.A. of Italy, the owners of the internationally renowned GAS brand has been set up during the third quarter of the year.

RAYMOND EUROPE S.R.L.

The company has, with a view to providing world class design inputs to the apparel brand of its subsidiaries Raymond apparel limited and color plus fashion limited, set up a new design studio in Italy in join venture with cotonoficio Nonegger. Italy in September 2006 for the period ended a profit after tax RS. 4.35 lacks.

ANALYSIS OF THE DIRECTORS REPORT

TO, THE MEMBERS, Your directors have pleasure in placing before you their 83rd Annual Report and accounts for the year ended March 31, 2008.

FINANCIAL HIGHLIGHTS:
During the year, the gross turnover, net of returns and discount was higher by 3% at RS. 1322.51 crores as compared to RS. 1284.19 crores in the previous year. Profit before tax was RS. 86.15 crores as against RS. 156.99 crores in the previous year. Profit after tax was RS. 72.42 crores as against RS. 202.12 crores in 2006-07.

APPROPRIATIONS:
An account of RS. 6.61 crores are credited to the general reserves out of the amount available for appropriation. Directors reconimend a dividend of 25% on equity shares. The dividend tax on the proposed dividend will be RS. 2.61 crores (previous year: RS 5.22 crores)

PERFORMANCE OF DIVISION:
1) TEXTILE DIVISION: The net sales of the textile division grew from RS. 992.22 crores to RS 1133.85 crores. Taxtile exports for the year under review were RS 114 crores a growth of 4% over previous year, inspire of rupee appreciation. The company has a total production capacity of 31 million meters of wasted fabric distributed at thane, chhindwara, jalgaon and Vapi.

2) FILES & TOOLS DIVISION: The division recorded on all time high sales volume of files in international market during the year under review. The division reported net sales at RS 177 core and profit before tax RS 1.61 crores versus RS 3.28 crores during the previous year. 3) FINANCE AND ACCOUNTS: The observations made by the auditors in their report have been clarified in the relevant notes forming part of the accounts, which are self explanatory. 4) JOINT VENTURE: Raymond Limited joint venture with many companies. These new names are following. Raymond UCO denim private Ltd. Raymond Zambaiti private Ltd. Raymond Fedora private Ltd. GAS Apparel private Ltd. Raymond Europe S.R.L.

5) SUBSIDIARIES: Raymond Apparel Limited : The gross turnover net of discount of the company was higher by 47.60% at Rs. 349.95 crores. Profit after tax was lower at Rs. 7.84 crores.
Colour Plus Fashion Limited :

The gross turnover of the company was higher at Rs. 147.89 crores. Profit before tax was lower at Rs. 10.76 crores. Net profit after tax was lower at Rs. 6.71 crores.
Ever blue Apparel Limited :

The company earned a profit of Rs. 1.49 crores during the year under review.
Sliver Spark Apparel Limited :

The cross turnover of the company was Rs. 88.07 crores. The company had a profit after tax of Rs. 7.39 crores during the year.
Celebrations Apparel Limited :

The gross turnover of the company was 8.97 crores. The company incurred a loss up Rs. 0.10 crores during the year 2007-08.
Hindustan Files Limited :

The gross turnover of the company was higher at Rs. 37.98 crores. Profit before tax was at Rs. 1.95 crores and profit after tax was at Rs. 2.15 crores. Pashmina Holding Limited : The company incurred a loss of Rs. 8.72 lacks during the year under review.

AWARDS: The company received Global H.R Excellence Award 2007-08 for the outstanding contribution to the cause of education from accord services. DIRECTORS: Shri P.K Bhandari, who stepped down as group president with effect from Jan 30, 2008. Ceased to be a whole time director of the company term of office as whole time director. The Board place on reward its deep appreciation to Shri P. K Bhandari for the services rendered by him during his tenure. Shri Anand Singhania resigned from the BOD of the company with effect from March 29, 2008. The Board places on record its appreciation of the valuable advice and contribution by him during his tenure. Shri P.K Bhanbari ,Shri U.V Rao and Shri Nabankurr Gupta , Directors, Retire by rotation and being eligible after themselves for reappointment. APPRECIATION Directors express their warm appreciation to all the employees at various unit for their diligence and contribution your directors also wish to record their appreciation received for the support and appreciation received from the joint venture partners, dealers, agents suppliers and the banks.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTISES

ACCOUNTING POLICIES:
1) The financial statement of the subsidiaries used in the

consolidation are drawn up to the some reporting elute as that of the present company, i.e. year ended 31st March, 09. The foreign subsidiaries follow January to December as their foreign year. In the case of the company has relearned for their financial statements for the year ended 31st March. 2) The financial statements have been prepared under the historical cost convention with the exception of all the fixed assets belonging to regency textiles, Portuguese, limited and certain assets of subsidiary of the joint venture Raymond Denim Private Ltd. Which have been revalued in accordance with the application local laws and on the actual basis of accounting? The accounts of the company present company. Indian subsidiaries and joint venture companies have been prepared in accordance with the local laws and the applicable accounting standard, generally accepted accounting principles.

PRINCIPLES OF COSOLIDATION:
1) The financial statements of present company and its subsidiaries have been consolidated on a line by line basis by adding together the books value of like items of assets, liability, incomes and exp. After eliminating intergroup balance, intragroup transaction and the unrecilised profit. 2) The financial statements of the present Co. and its subsidiaries have been consolidated using uniform accounting policies excepting the revaluation of assets by Co. refers above and depreciation on all assets being provided on

written down value method by one subsidiary vise color plus fashion Lid for like transaction and other events in similar circumstances. Besides this Raymond Ltd has followed A5-15e revise for accounting level entitlements which is in variation to method adopted by other accounting for improvements to lease hold premises by Raymond Limited is in variation to the methods adopted by other entities in the group.

RATIO ANALYSIS
INTRODUCTION:
Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk and return relationship of firm. It is defined as the systematic used of ratio to interpret the financial statements so the strength and weakness of affirm as its historical performance can be determined. The term ratio refers to the numerical or quantitative relationship between two items. This relationship can be expressed as percentage fraction or proportion.

CLASSIFICATION OF RATIO A. B. C. D. E. Profitability ratio. Liquidity ratio. Leverage ratio. Turn over ratio. Coverage ratio.

(A) Profitability Ratio

This ratio indicates the profitability for a company. It includes following ratios:

1) 2) 3) 4) 5) 6) 7) 8) 9)

Gross profit ratio Net profit ratio Operating ratio Expense ratio Return on capital employee Return on share holders fund Return on equity share holders fund Earning per share Dividend per share

(B) Liquidity Ratio

This ratio indicates weather short term assets are enough to meet short term obligation. This category includes

1) 2) 3)

Current ratio Liquid ratio Acid-test ratio

(C) Leverage Ratio

This ratio indicates the total capital of the company and its division into own funds and borrowed funds. In this ratio below categories includes:

1) Proprietary ratio 2) Debt equity ratio 3) Capital gearing ratio and 4) Fixed capital to fixed assets ratio.

(D) Turnover Ratio

This ratio indicates to the company that in a year how many times turnover. It includes following ratios:

1. 2. 3. 4.

Total assets turnover ratio Debtors turnover ratio Creditors turnover ratio Stock turnover ratio

(E) Coverage Ratio

It means how many times the profit covers the payment of principle and interest on loan. It includes the following categories.

1. 2.

Debt- service coverage ratio Interest coverage ratio

PROFITABILITY RATIO
Gross-Profit Ratio:
It is a ratio expressing relationship between G.P and sales. It is a useful indication of the profitability business. If the ratio is law, it indicates that the cost of sales is high as compare to profit.

Gross Profit Ratio =

Gross profit Sales

2006-07 63897.61 128419.35

100

YEAR G.P SALES

2005-06 60952.23 132473.91

2007-08 58624.08 132251.15

1)

2005-06 = 60952.23 132473.91 = 46.01 % 100

2)

2006-07 = = 63897 128419.35 49.76 % 100

3)

2007-08 = =
50 49 48 47 46 45 44 43 42 41 2005-06 2006-07 2007-08

58624.08 132251.15 44.33 %

100

G.P

Interpretation:
The Gross Profit ratio of the 2007-08 is less than past two year 200506 and 2006-07. Lat year it was 44.33%. It is a danger signal decrease in recession time or due to increase in COGS

Net Profit Ratio:

This ratio is valuable for the purpose of ascertaining the overall profitability of business and show the efficiency. It is reserve of the operating of the business.

Net Profit Ratio =

Net Profit Sales

100

1) 2005-06 = 12229.10 132473.91 100

= 9.23% 2) 2006-07 = 20125.28 128419.35 100

= 15.67% 3) 2007-08 = 6612.17 132251.15 100

= 5%

16 14 12 10 8 6 4 2 0 2005-06 2006-07 2007-08

NP

Interpretation:
In the last year 2007-08 the net profit ratio was 5%. It was less than last two year. The reason for decrease in N.P is due to decrease in G.P or due to increase in operating expenses.

Return on Total Assets:

= Net Profit before Interest & Tax Total Assets
Total Assets = Fixed Assets + Investments + Current Assets

100

Year

2005-2006

2006-2007

2007-208

Fixed Assets Investments Current Assets Total

84511.81 73660.28 77011.19 = 235183.28

76174.15 98447.50 82490.59 = 257112.24

73310.87 104730.20 94342.30 = 272383.37

1) 2005-06 = 16699.31 235183.28 100

= 7.10% 2) 2006-07 = 27269.70 257112.24 100

= 10.61 %
3)

2007-08 = 11916.29 272383.37 100

= 4.37 %

12 10 8 6 4 2 0 2005-06 2006-07 2007-08

RTA

Interpretation:
The return on total assets is increasing in the year 2005-06 and 200607. But it is decrease in 2007-08 so these are not a good for the company. The ratio decrease 6.24% in 2007-08. This is not a good position for the company.

Return on Capital Employed:

It is an index of profitability of business and is obtained by comparing net profit with capital employee. This ratio is also expressed as percentages. It is the most important ratio from view point of management

Profit before interest & tax 100 Capital employee

Capital Employed = Share Capital + Reserves & Surplus +

Long Term Debts Fictitious Assets

2005.6

: 6138.08 + 112856.45 + 54667.56 = 173662.09

2006-07: 6138.08 + 129477.86 + 56686.05 = 192301.99 2007-08: 6138.08 + 2086.95 + 133690.42 + 50498.04 = 192413.49

1)

2005-06 = 16699.31 173662.09 100

= 9.62% 2) 2006-07 = 27269.70 192301.99 100

=14.18% 3) 2007-08

11916.29 190326.54

100

= 14.53%

16 14 12 10 8 6 4 2 0 2005-06 2006-07 2007-08

ROCE

Interpretation:
The above ratio shows that year 2005-06 and 2006-07, the ratio is increased 9.62% to 14.18%, but it is decrease in 2077-08 to 6.26 %. So decrease in return on capital employed is not good for the company..

Return on Share Holders Funds:

This ratio is ascertained in order to judge the efficiency with the proprietors funds if employed in the business this ratio shows that amount & dividend is likely to be received on share.

= Net Profit after Tax Share Holder Funds

100

1)

2005-06 = 12229.10 118994.53 100

= 10.28% 2) 2006-07 = 20125.25 135615.94 100

=14.84% 3) 2007-08 = 6612.17 41915.45 100

= 4.69%

16 14 12 10 8 6 4 2 0 2005-06 2006-07 2007-08

RSHF

Interpretation:
In this Return on share holder fund the ratio is increase in 2055-06 and 2006-07 but it is decrease in 2007-08. Higher the ratio the dividend is also high and vise versa. This ratio is decrease in 2007-08. Low ratio leads to the dividend of shave is less.

Earning Per Share:

No. of Equity Share

= Net Profit after Tax Preference Share Dividend

1) 2005-06

= 1222910000 61380853 = 19.92 Rs. 2) 2006-07 = 2012528000 61380853 = 32.79 Rs. 3) 2007-08 = 661217000 61380853
= 10.77 Rs

35 30 25 20 15 10 5 0 2005-06 2006-07 2007-08

EPS

Interpretation:
In the year 2005-06 the earning per share was 19.92 Rs. And it increase in 2006-07 is 32.79 Rs. But it was decrease in 2007-08, 10.77 Rs. Decrease in earning per share is bad for the company.

LIQUIDITY RATIO

Current Ratio:

This ratio shows the proportion of current assets to current liability. It is a measure of short term finance strength of the business = Current Assets Current Liability
2005-2006 31904.16 24846.74 2503.17 & 14442.06 3315.06 = 77011.19 2006-2007 28366.36 26877.07 2561.40 21715.86 2969.90 = 82490.59 2007-2008 32974.18 28988.56 2182.48 24421.59 5775.49 = 94342.30

Current Assets Stock Debtors Cash & Bank Loans Advances Other Total Liabilities Provisions Other current Liabilities Total

6670.84 26227.34 = 32998.18

29083.90 8063.66 = 37147.56

7553.73 28225.53 = 35799.26

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 94342.30 35799.26 2.64: 1 82490.59 37147.56 2.22: 1 77011.19 32998.18 2.33 : 1

2.7 2.6 2.5 2.4 2.3 2.2 2.1 2 2005-06 2006-07 2007-08

Current Ratio

Interpretation:
In the ratio the ideal current ratio is 2%, the current ratio was increase every year expect 2066-07. in the year 2007-08 it becomes 2.64:1 is good position of the company. It means current assets are greater than current liability for 2.64 than it is a very good position for the company.

Liquidity ratio:
It is designed to show the amount. If cash available to meet immediate payments. = Liquidity Assets Liquidity Liability

Liquid Assets = Current Assets Stock 2005.2006 = 77011.19 31904.16 = 45107.03 2006-2007 = 82490.59 2836.36 = 54124.23 2007-2008 = 94342.30 32974.18 = 61368.12 Liquid Liabilities = Current Liabilities Bank Over Draft 2005-2006 = 32998.18 1125.51 = 31872.51 2006-2007 = 37147.56 1815.07 = 35332.49 2007-2008 = 35799.25 1525.21 = 34274.04

1) 2005-06 = = 2) 2006-07 = = 54124.23 35332.49 1.53: 1 45107.03 31872.51 1.42: 1

3) 2007-08 = =
1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2005-06 2006-07 2007-08

61368.12 34274.04 1.79: 1

Liquid Ratio

Interpretation:
In the Liquid Ratio the ideal ratio is 1:1. in 2005-06 is 1.42:1, in 200607 the ratio is 1.53:1, in 2007-08 it is increase to 1.79:1. so it is good for the company. It is good position.

Acid- test ratio:

It is comparison between cash and bank balance as well as really marketable securities with liquid liabilities.

Quick Assets Liquid Liability

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 2182.48 26720.32 0.08: 1 2561.40 27268.83 0.09: 1 2503.17 19020.45 0.13: 1

0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2005-06 2006-07 2007-08

ATR

Interpretation:
Raymond limited acid test ratio is very less because this ratio ratio is 5:1 is very good for the company, but in year 2005-06 is very good compare to two year. It is good.

LEVERAGE RATIO
Proprietary Ratio:
The proprietors funds or share holders equity consists of share capital, reserve & surplus. The ratio shows the proportion of proprietors funds to the total employed in the business. Proprietors Fund = Share Capital + Reserves & Surplus

Year Share Capital Reserves Surplus Total &

2005-2006 6138.08 122856.45 = 118994.53

2006-2007 6138.08 129477.86 = 135615.94

2007-2008 8225.03 133690.42 = 141915.45

= 1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = =

Proprietary Fund Total Assets

100

141915.45 272383.37 50.60%

100

135615.94 257112.24 52.75%

100

141915.45 272383.37 52.10%

100

53 52.5 52 51.5 51 50.5 50 49.5 2005-06 2006-07 2007-08

Propri. Ratio

Interpretation:
In 2005-06 the ratio is 50.60% , it is increase in 2006-07 to 52.75%. it is show that company financial position is very good and position consideration satisfaction but in 2007-08 the ratio decrease as compare 2006-07. It was 52.10% in 2007-08. There was no more change in financial position.

Debt equity Ratio:

It shows the proportion & long term external equities & internal equities that mean proportion of funds provided by long term conditions that provided by share holders or proprietors. We are not calculating this ratio because in report not given long term loans.

= 1) 2005-06

Long Term Liability Share Holder Fund

100

44975.27 118994.53 37.86 %

100

= 2) 2006-07 =

31953 135615.94 23.63 %

100

= 3) 2007-08 =

36629.67 141915.45 25.81 %

100

40 35 30 25 20 15 10 5 0 2005-06 2006-07 2007-08

Debt Equity

Interpretation:
In the Raymond Limited the Debt equity ratio is decrease by year 2005-06 to 2006-07. it was 37.86% in 2005-06 and 23.63% in 206607.lower ratio indicates it is not from the view point of equity shareholder but in 2007-08 it was increase compare to previous year. It was 25.81% in 2007-08. It was show that it is profitability for the company.

Gearing Ratio:
Gearing Ratio = Pref. Share Capital + Debentures Equity Share Capital

Year Debenture Equity Share Capital

2005-2006 5100 6138.08

2006-2007 31914.80 6138.08

2007-2008 36629.67 6138.08

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 36629.67 6138.08 5.97: 1 31914.80 6138.08 5.20: 1 5100 6138.08 0.83: 1

6 5 4 3 2 1 0 2005-06 2006-07 2007-08

Gearing

Interpretation:
This ratio can be indicates by either percentage or time. In year 200506 ratio was 0.83:1 and it increase in year 2006-07. it becomes 5.20:1 and it was also increase in 2007-08 it becomes 5.97:1.

TURNOVER RATIO

Stock Turnover Ratio:

It is a difference between COGS & average stock. This ratio is usual to known how many times stock is term over in a year

Stock Turnover Ratio = Cost of Goods Sold Average Stock

Year Cost of Goods 2005-2006 40665.75 2006-2007 37737.82 2007-2008 46855.29

Sold Average Stock 1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = =

7785.60

7752.00

7189.77

40665.75 7785.60 5.22 Times

37737.82 7752 4.87 Times

146855.29 7189.77 6.52 Times

7 6 5 4 3 2 1 0 2005-06 2006-07 2007-08

Stock Turn Over

Interpretation:
It is a test of efficiency inventory management to judge whether ratio to company is satisfactory or not. It should compare over to time on the basis of trend analysis high the turnover ratio, more profitability in the business. In 2005-06 it was 5.22 times. In 2006-07 it was 4.87 times, in 2006-07 it was decrease but in 2007-08. It was increase to 6.52 times.

Fixed Assets Turn Over Ratio:

This ratio is calculated on order to in find out relation between total assets to sales. This ratio is important to know the over all efficiency of the business.

Fixed Assets Turn Over

Sales Fixed Asset

Year Sales Fixed Assets

2005-2006 132473.91 64907.00

2006-207 128419.35 67605.64

2007-208 132231.51 71952.51

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 132251.15 71952.51 1.84 Times 128419.35 67605.64 1.90 Times 132473.91 68907 1.92 Times

1.92 1.9 1.88 1.86 1.84 1.82 1.8 2005-06 2006-07 2007-08

Fixed Assets Turn Over

Interpretation:
The ratio express that the turnover of fixed assets was decrease in every year. In 2005-06 it was 1.92 times and 2006-07 it was 1.90 times. It was last year in 2007-08 1.84 times. It is not good for the company.

Debtors Ratio:
Debtors + B/R Credit Sales
2006-2007 26877.07 129962.75

Debtors Ratio =

Total working days

Year Debtors Sales

2005-2006 24846.74 132473.91

2007-2008 28988.56 133756.33

[Note: As the credit sales was not given we are considering total sales as credit sales and 360 days as working days]

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 28988.56 133756.33 78 Days 360 26877.07 129962.75 74 Days 360 24846.74 132473.91 68 Days 360

78 76 74 72 70 68 66 64 62 2005-06 2006-07 2007-08

Debtors

Interpretation:
The ratio expresses that increasing in debtors ratio every year. It suggests that the collection of time is also increase. In 2005-06 it was 68 days, in 2006-07 it was 74 days and in 2007-08 it was 78 days. So it is not good for the company. it is bad position for company.

Debtors Turnover Ratio:

This ratio shows the number of days taken to collect the dues of credit sales. It shows efficiency or otherwise of the collection policy of the enterprise.

Debtors Turn Over Ratio =

Total working day of year Debtors ratio

1) 2005-06 = 360 68 5.29 Times

= 2) 2006-07 =

360 74 4.86 Times

= 3) 2007-08 =

360 78 4.62 Times

5.4 5.2 5 4.8 4.6 4.4 4.2 2005-06 2006-07 2007-08

Debtors Turn Over

Interpretation:
The above ratio express that the Raymond Limited Debtors turnover decrease every year. It suggests that the turnover also decrease. In 2005-06 it was 5.29 time in working days. In 2006-07 it was 4.62 times. It shows that the debtors turnover ratio decrease in every year and it was not a good for the company it is bad position in the market.

Creditors Ratio:
Creditors + B/R Credit Purchase Total working days

Creditors Ratio =

Year

2005-2006

2006-2007

2007-2008

Creditors Credit Purchases

16427.41 42361.50

17722.89 40587.69

17043.24 47894.23

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 17043.24 47894.23 128 Days 360 17722.89 40587.69 157 Days 360 16427.41 42361.50 140 Days 360

160 140 120 100 80 60 40 20 0 2005-06 2006-07 2007-08

Creditors

Interpretation:
The creditors ratio of Raymond Limited shows that the creditors ratio in 2005-06 is 140 days and it increase in 2006-07. it becomes 157 days. This is good for the company, but in 2007-08 it decrease in 2007-08. It is not good for the company because the payable days to creditor are decrease. It means creditors gives short time credit as compare to previous year.

Creditors Turn Over Ratio:

This ratio indicts that the number of days within which amount due for credit sales is collected. Similarly the numbered of days within which the company makes payment to their creditors.

Creditors Turn Over Ratio =

Total working day of year Creditors ratio

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 360 128 3 Times 360 157 2.29 Times 360 140 2.57 Times

3 2.5 2 1.5 1 0.5 0 2005-06 2006-07 2007-08

Creditors Turn Over

Interpretation:
In the creditors turnover ratio of Raymond Limited we show that the creditors turnover ratio in 2005-06 is 2.57 times and it decrease in 2006-07 it becomes 2.29 times it is a very good position in the market for the company, but in 2007-08 it was increase. It becomes 3 times in a working days. It means credit turnover is increase, it I not a good position in the market for the company. It is a danger signal for the company.

Total Assets Turn Over Ratio:

This ratio is calculated on order to in find out relation between total assets to sales. This ratio is important to know the over all efficiency of the business.

Total Assets Turn Over

Sales Total Asset

Year Sales Fixed Assets

2005-2006 133756.33 272383.37

2006-207 129962.70 257112.24

2007-208 132473.91 235183.28

1) 2005-06 = = 2) 2006-07 = = 3) 2007-08 = = 133756.33 272383.37 0.49 Times 129962.70 257112.24 0.51 Times 132473.91 235183 0.56 Times

0.56 0.54 0.52 0.5 0.48 0.46 0.44 2005-06 2006-07 2007-08

Total Assets Turn Over

Interpretation:
The ratio of total assets turnover of Raymond Limited express that the turnover of total assets was decrease in every year. It is a danger signal for the company. In 2005-06 it was 0.56 times and 2006-07 it was 0.51 times. It was last year 0.49 times. It is a red signal; for the company and it is a bad position in the market of the company. So company will try to increase turnover ratio.

Comparative Statement of Profit & Loss Account

Particulars
Income
Sales

2005-2006
%
100 %

2006-2007
%
100 %

2007-2008
%
100 %

- Excise Duties + Other Income

1.48 % 6.07 % 104.59 30.24 % 21.82% 0.38% 15.17% 17.73% 2.63% 5.41% 92.62%

1.19 % 6.98 % 105.29 29.04% 20.05% 0.61% 17.36% 20.03% 3.63% 4.85% 93.72%

1.13 % 10.29 % 109.16 35.03 % 19.79% 2.84% 17.43% 22.76% 4.49% 6.06% 102.72%

Total
- Material Cost - Manufacturing & Operating Cost - Inc./Dec. in finished & process stock - Employment Cost - Admi., Selling, General Expn. - Finance Charges - Depri. & Amortization

Less
- Trial Run Expe.Capitalized - Finished & Process Stock Transformed Profit for the year 0.88% 91.68% 2.67% 93.72% ----102.72% 0.05% 0.04% ------

Before Exce. Items - Continuing Operation - Disinvest Denim Business Add/Less Exce. Items - Surplus on disinvest. of denim - Others Profit for the year Before Tax - Current Tax - less- Mat Credit - Deferred Tax s- Fright Benefit Tax - Provision for Wealth Tax Profit for the year After Tax Add/less prior period adjustment Tax in respect of Earlier years Balance Brought f/w Balance available for appropriation Debenture Redemption Fund General Reserves Proposed Dividend Tax on Prop. Dividend 7.88% 16.88% 0.94% 0.90% 2.28% 0.32% 12.86% 28.42% 1.12% 3.08% 2.36% 0.40% 20.85% 26.26% ----0.49% 1.15% 0.19% 0.08% 0.01% 0.07% 0.001% 0.0008% 0.47% 9.09% 15.49% 4.94% 2.05% ----0.74% 0.27% 0.02% 3.24% ----0.63% 0.21% 0.02% 0.88% 0.48% 0.76% 0.26% 0.05% 12.91% ----0.74% 12.17% 12.08% 6.78% 0.53% 18.33% 6.44% ----0.33% 6.11% 0.68% 0.40% ------12.23% 11.67% 6.44%

Earnings per Share

12.43%

21.46%

24.43%

INTERPRETATION:
In above comparative statement of P & L A/C we interpret that.. 1) In the year 2005-06 expenditure is 104.59% and it increase every year in 2006-07 it was 105.29% and 2007-08 it was 109.16%. It show that the are decrease every year and other income are increase every year. 2) In the statement the material cost is increase in 2007-08 compare to previous year decrease in finished and process stock. 3) Employment cost is increase in 2006-07 it was 15.17% and it increase in 2007-08 it was 17.43%. 4) Administrative selling and general expenses was also increases so the profit was decreases. Finance charges also increasing. 5) Profit for the year before tax was in 2005-06it was 12.17% and it was increasing in 2006-07 it becomes 18.53%. Increasing in profit is good for the company. But in the 2007-08profit before tax was decreasing it become 6.11%. It is decrease 12.42% in a year it was not a good position for the company. 6) Profit after tax is in 2005-069.09% it was increase in 2006-07 it becomes 15.49% and it is a good for the company. This is due to decrease in material cost, manufacturing and operating cost, and depreciation. 7) But in the year 2007-08 the profit after tax is decrease. It is become 4.94% in the previous year it was 15.49% so this was a bad position for the company. 8) Earning per share is increase by every year in 2005-06 it was 12.43% in 2006-07 it was 21.46% and in 2007-08 it was increase 24.43% it is a good for the company.

Common Size Statement of Profit & Loss Account

Particulars
Income
Sales

2005-2006
Total
134459.99 132473.91

2006-2007
Total
129962.75 128419.35

2007-2008
Total
133756.33 132251.15

%
100 %

%
100 %

%
100 %

- Excise Duties + Other Income

1986.08 8163.51 140637.42 40665.75 29344.92 510.81 20397.96 23833.84 3528.09 7271.16 124530.83

1.48 % 6.07 % 104.59 30.24 % 21.82% 0.38% 15.17% 17.73% 2.63% 5.41% 92.62%

1543.40 9077.82 137497.17 37737.82 27099.12 791.45 22558.39 26113.63 4711.91 6305.51 125317.83

1.19 % 6.98 % 105.29 29.04% 20.05% 0.61% 17.36% 20.03% 3.63% 4.85% 93.72%

1505.18 13764.55 146015.70 46855.29 26467.16 37925.31 23315.98 30437.68 6010.34 8106.71 137400.85

1.13 % 10.29 % 109.16 35.03 % 19.79% 2.84% 17.43% 22.76% 4.49% 6.06% 102.72%

Total
- Material Cost - Manufacturing & Operating Cost - Inc./Dec. in finished & process stock - Employment Cost - Admi., Selling, General Expn. - Finance Charges - Depri. & Amortization

Less
- Trial Run 70.75 0.05% 51.04 0.04% -----------

Expe.Capitalized - Finished & Process Stock Transformed Profit for the year Before Exce. Items - Continuing Operation - Disinvest Denim Business Add/Less Exce. Items - Surplus on disinvest. of denim - Others Profit for the year Before Tax - Current Tax - less- Mat Credit - Deferred Tax s- Fright Benefit Tax - Provision for Wealth Tax Profit for the year After Tax Add/less prior period adjustment Tax in respect of Earlier years Balance Brought f/w Balance available for 10601.41 22701.88 7.88% 16.88% 16717.36 39929.39 12.86% 28.42% 27888.77 35131.07 20.85% 26.26% 110.63 18.00 0.08% 0.01% 88.05 1.30 0.07% 0.001% 1.03 629.10 0.0008% 0.47% 12229.10 9.09% 20125.28 15.49% 6612.17 4.94% 2750.00 ---1000.38 358.00 33.00 2.05% ----0.74% 0.27% 0.02% 4210.00 ----815.00 275.00 28.00 3.24% ----0.63% 0.21% 0.02% 780.08 642.08 1015.49 342.00 62.00 0.88% 0.48% 0.76% 0.26% 0.05% 17365.15 -----994.67 16370.48 12.91% ----0.74% 12.17% 15698.64 8809.32 684.68 23823.28 12.08% 6.78% 0.53% 18.33% 8414.85 ----445.19 8169.66 6.44% ----0.33% 6.11% 915.23 0.68% 526.17 0.40% -----------16449.92 12.23% 15172.47 11.67% 8614.85 6.44% 1187.81 123272.27 0.88% 91.68% 3468.26 121798.53 2.67% 93.72% ----137400.85 ----102.72%

appropriation Debenture Redemption Fund General Reserves Proposed Dividend Tax on Prop. Dividend Earnings per Share 1275.00 1210.05 3069.04 430.43 16717.36 0.94% 0.90% 2.28% 0.32% 12.43% 1450.00 4000.00 3069.04 521.58 27888.77 1.12% 3.08% 2.36% 0.40% 21.46% ----661.22 1534.52 260.79 32674.54 ----0.49% 1.15% 0.19% 24.43%

INTERPRETATION:
1) In above common size of P & L A/C sales is increase compare to previous year. 2) Other income is also increase compare to two year 2006-07 and 200506. 3) In the 2005-06 expenditure is 140634.42 it was decrease in 2006-07 to 137497.17 but in 2006-07 105.29% compare to previous year.
4) Profit for the year before expenditure items is increase every year. In

the 2005-06 it was 91.08 in 2006-07 it was 93.72 it was increase in 200708 to 102.72 percentages. Profit for the year before tax in 2005-06 it was 12.17 it is increase in 2006-07 it becomes 18.33 it is a good for the company but in the 2007-08 it was decrease it becomes 6.11% in the 2005 the profit before tax in RS in lack it was 16370.48 in 2006-07 it was 23823.28 in 2007-08 it was 8169.66.
5)

6) Profit for the year after tax is in year 2005-06 it was 12229.10 crores. It was increase in year 2006-07 it become 20125.28 crores. It is a good for the company, but in year 2007-08 it becomes 6612.17 crores. Profit was decrease in 2007-08 10.55%. It was a very bad position for the company.

7) Earning per share was RS 16717.36 crores in 2005-06. in 2007-08 it was 32674.54 it is a good for the company.

Common Size Statement of Balance Sheet

Particulars 2005-2006
Amount %

2006-2007
Amount %

2007-2008
Amount %

Sources of Funds
Share Holders Fund
Share Capital Share Warrants Reserves & Surplus 6138.08 -112856.45 118994.53 3.06% -56.65% 59.74% 6138.08 -129477.86 135615.94 2.79% -58.86% 61.65% 6138.08 2086.95 133690.42 2.59% 0.88% 56.51%

141915.45 59.98%

Loan funds
Secured Loans Unsecured Loans 54667.56 22120.28 76787.84 Deferred Tax liability 6402.73 202185.10 27.04% 10.94% 37.98% 2.72% 100% 56686.05 22074.96 78761.01 5587.73 219964.68 25.77% 10.04% 35.80% 2.54% 100% 50498.04 38203.04 88701.08 5967.58 236584.11 21.34% 16.15 37.49% 2.52% 100%

Total

Application of Funds Fixed Assets

Gross Block - Depreciation & Amortization Net Block 136672.80 67765.80 68907.00 68.62% -34.02% 34.59 123003.48 55397.84 67605.64 55.92% -25.18% 30.73% 134540.27 62587.76 71952.51 56.87% -26.45% 30.41%

Capital Work- inprogress

15604.81 84511.81

7.83% 42.43% 36.98%

8568.51 76174.15 98447.50

3.90% 34.63% 44.76%

1358.36 73310.87 104730.20

0.57% 30.99% 44.27%

Investments

73660.28

Current Assets
Inventories Sundry Debtors Cash & Bank balance Other Current Assets Loan and Advance 31904.16 24846.74 2503.17 315.06 14442.06 74011.19 16.01% 12.47% 1.26% 0.16% 7.25 37.16 28366.36 26877.07 2561.40 2969.90 21715.86 82490.59 12.90% 12.22% 1.16% 1.35% 9.87% 37.50% 32974.18 28988.56 2182.48 5775.49 24421.59 13.94% 12.25% 0.92% 2.44% 10.32%

94342.30 39.88%

Less ( Current Liabilities)

Current liabilities Provision 26227.34 6770.84 32998.18 Net Current Assets Total 41013.01 199185.10 13.17% 3.40% -16.57% 20.59% 100% 29083.90 8063.66 37147.56 45343.03 219964.68 13.22% 3.67% -16.89% 20.61% 100% 28245.53 7553.73 11.94% 3.19%

35799.26 15.13% 58543.04 236584.11 24.75% 100%

INTERPRETATION:
From the common size balance sheet following conclusion are derived. There was not increase or decrease in the share holders fund because the company had not issued equity shares and also there was not significant increase in the reserves and surplus. It increases about 2 %

in the year 2006-2007. But after this year reserves and surplus decreases at same level. Loan funds increases percentage wise but it decreases amount wise because the company had borrowed unsecured loans during the year 2007-08. There was decrease in the fixed assets due to decrease in the gross block. Capital work- in progress decreases significantly from 200506 to 2007-2008. Investments were also remains same percentage wise but it increases amount wise. Current assets were unaffected but net current assts were increases slightly in 2007-2008 because of slight decrease in the current liabilities.

Comparative Statement of Balance Sheet

Particulars Sources of Funds
Share Holders Fund
Share Capital Share Warrants Reserves & Surplus 3.06% -56.65% 59.74% 2.79% -58.86% 61.65% 2.59% 0.88% 56.51% 59.98%

2005-2006

2006-2007

2007-2008

Loan funds
Secured Loans Unsecured Loans 27.04% 10.94% 37.98% Deferred Tax liability 2.72% 100% 25.77% 10.04% 35.80% 2.54% 100% 21.34% 16.15 37.49% 2.52% 100%

Total

Application of Funds Fixed Assets

Gross Block - Depreciation & Amortization Net Block 68.62% -34.02% 34.59 55.92% -25.18% 30.73% 56.87% -26.45% 30.41%

Capital Work- in- progress

7.83% 42.43%

3.90% 34.63% 44.76%

0.57% 30.99% 44.27%

Investments

36.98%

Current Assets
Inventories Sundry Debtors Cash & Bank balance Other Current Assets Loan and Advance 16.01% 12.47% 1.26% 0.16% 7.25 37.16 12.90% 12.22% 1.16% 1.35% 9.87% 37.50% 13.94% 12.25% 0.92% 2.44% 10.32% 39.88%

Less ( Current Liabilities)

Current liabilities Provision 13.17% 3.40% -16.57% Net Current Assets Total 20.59% 100% 13.22% 3.67% -16.89% 20.61% 100% 11.94% 3.19% 15.13% 24.75% 100%

INTERPRETATION
1) Companys shareholder funds are increasing due to significant changes in Reserves and Surplus and share warrants in 2007-08. But % age wise it is approximate same to the total liabilities. 2) Company is increasing loan funds and decreasing current liabilities by numerical and also in % age. 3) Fixed assets are decreasing because of depreciation and amortization and also due to change in capital work in progress.

4) Companys investments are increasing.

INTRODUCTION OF CASH FLOW STATEMENT

Cash is the most liquid assets of a business. All business transactions ultimately resus into cash flow and cash outflow. Hence, a statement that shows cash flow is considered to be an important one. It can be said, therefore, that cash is both beginning and the end of the business operation. A statement showing inflow of cash and outflow of cash during the last year and or a result the balance of cash at the end of the year is known as Cash flow statement. This statement helps managements to know the actual liquid and also to ascertain whether the business is able get enough cash to meet the liabilities as and when they arise. The institute of chartered A/C of India has issued accounting standards for preparing cash flow statement. According to a management to companys act, it has implement accounting standards issued by this institute hence now all companies issuing their annual accounts include a cash flow statement. According to this standard the cash inflows and outflow are to be shown under three headings. A) Cash Flow from operating activities. B) Cash Flow from investing activities. C) Cash Flow from financial activities. The cash balance in the beginning and at the end to be shown in this statement includes both cash and cash equivalent. Here, cash equivalent

means short term highly liquid investments. Which are reading convertible into cash and which are subject to little risk of changes in value? This statement is prepared by two methods one by direct method, in which cash flow is shown from sources of cash received from debtors and cash paid to creditors. The 2nd method is indirect method, in which cash flow is found out by making necessary adjustment in net profit.

PRINCIPLES OF COSOLIDATION:
1) The financial statement of present co. and its subsidiaries have been consolidated on a line-by-line basis by adding together the books value of like items of assets, liabilities, income and Exps. After eliminating intragroup balance, intragroup transaction and the unrecolised profit. 2) The financial statement of the present co and its subsidiaries have been consolidated using uniform accounting policies expecting the revaluation of assets by co. refers above and depreciation on all assets being provided on written down value method by one subsidiary viz color plus fashion ltd for like transactions and other event in similar circumstances. Beside this Raymond Ltd has a subsidiary of Raymond Ltd has followed A5-15c revise 1) for accounting level entitlement which is in variation to method adopted by other entities of the group. Further, accounting for improvements to lease hold premises by Raymond limited is in variation to the methods adopted by other entities in the group.

CONCLUSION
When I analyzing the financial result of Raymond Limited, company had a strong capacity to make a high profit. I also observed the companys net profit is decreasing in last year and also companys last same years. Current ratio is increasing and debt. Equity ratio was decline in 2007-08 due to some reason. After complete the all ratio and observed balance sheet. We show that companys capacity to expand their business in world is high and large. Its financial position was very strong.

BIBLIOGRAPHY
I have obtained information from the books and websites which are given below:
www.raymond.com

Company Accounting B.S. SHAH Ratio Analysis Page No- 363 to 395 Ratio are finding as per the format of S.Y.B.B.A. company account.