PROJECT REPORT

Financial ratio analysis of MRF Limited (MRF)

SUBMITTED BY
Name of the Candidate: ASHMITA GHOSH

University Name: CALCUTTA UNIVERSITY

Registration No: IIIIIIIIIIIIIIIIIIIIIIII

047-1211-0789-17

IIIIIIIIIIIIIIIIIIIII
Roll No: 171047-11-0073

IIIIIII
College Roll No: 1041

College Name: SIVANATH SASTRI COLLEGE

Name of the Paper: PAPER WORK

Paper Code: CC 6.1 Ch

SUPERVISED BY
Name of the Supervisor: SAYANTANI BAGCHI

MONTH &YEAR OF SUBMISSION

September 2020

1
 Annexure 1A

Supervisor’s Certificate

This is to certify that Ashmita Ghosh student of B.Com. Honours in Accounting & Finance
of Sivnath Sastri College under the University of Calcutta has worked under my supervision
and guidance for his project work and prepared a Project Report with the title Ratio Analysis
of MRF Limited.

The project report, which he is submitting is his genuine and original work to the best of my
knowledge.

Signature:

Place: Kolkata

Name: Sayantani Bagchi

Date :

Designation: Faculty of Commerce

College: Sivnath Sastri College

2
 Annexure 1B

Student’s Declaration

I hereby declare that the project work with the title RATIO ANALYSIS OF MRF LIMITED.
submitted by me for the partial fulfilment of the degree B.Com. Honours in Accounting &
Finance under the University of Calcutta is my original work and has not been submitted
earlier to any other University/Institution for the fulfilment of the requirement for any course
of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or me. However, extracts of any literature
which has been used for this report has been duly acknowledge providing details of such
literature in references.

Signature: Ashmita Ghosh

Name: Ashmita Ghosh

Address: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
38, shibaji road west rajapur Kol-700032

Registration No.: IIIIIIIIIIIIIIIIIIIIIIII

047-1211-0789-17

Roll No. : IIIIIIIIIIIIIIIIIIIIII

171047-11-0073

3
 ACKNOWLEDEGEMENT

I would like to start by thanking the college for providing us with such a wonderful
opportunity to prepare the project, by including this as a part of our study curriculum. I wish
to express my sincere gratitude to our principal MS RUNA BISWAS and our head of the
department MR RATAN SEN for providing me an opportunity to do my project work on
“FINANCIAL RATIO ANALYSIS OF MRF LIMITED”. I am very grateful to my project
guide, for his valuable and timely guidance throughout the project. His feedbacks, guidance
and support, has been very useful and are invaluable. I would thank her for being my mentor
in this research. Without his help this project would not have been a presentable one. Lastly, I
do pay all my thanks to my parents, and god for supporting me in all walks of life.

4
 PREFACE

Financial Ratio Analysis is a tool brought into play by individuals to carry out an evaluative
analysis of information in the financial statements of a company. These ratios are calculated
from current year figures and then compared to past years, other companies, the industry, and
also the company to assess the performance of the company. Besides, ratio analysis is used
predominantly by proponents of financial analysis.
There are numerous ratios that can be estimated from the financial statements pertaining to a
business company’s activity, performance, liquidity, and financing. Some of the most
common ratios include the debt-equity ratio, price-earnings ratio, asset turnover, earnings per
share, and working capital.
The objectives of the study is to successfully compare two or more than two prominent
service sector companies on a common platform, analyse their working and performance, and
highlight what they are doing well, while providing suggestions and recommendations for
improvement through financial ratio analysis.

MRF Limited (MRF)is chosen because it is an Indian multinational and the largest
manufacturer of tyres in India. It is headquartered in Chennai, India. The company
manufactures rubber products including tyres, treads, tubes and conveyor
belts, paints and toys.MRF also runs the MRF Pace Foundation, Chennai and MRF
Challenge in motorsport.

5
 TABLE OF CONTENT

CHAPTER TITLE PAGE NO.

1. INTRODUCTION 7-10
1.1.Background of the Project
1.2 Need of the project
1.3.Literature Review
1.4.Objectives of the Study
1.5. Research Methodology
1.6. Limitations of the Project
1.7. Chapter Planning.
2. CONCEPTUAL FRAMEWORK 11-18
2.1. Concept of Ratio Analysis
2.2.Features of Ratio Analysis
2.3.Advantages of Ratios
2.4.Disadvantages of Ratio
2.5.Company Profile
3. PRESENTATION OF DATA ANALYSIS AND FINDINGS 19-39
3.1. Specific Objective of the Study
3.2. Analysis & Interpretations

4. CONCLUSION AND RECOMMENDATIONS 40-42

4.1. Conclusion
4.2. Recommrndations

BIBLIOGRAPHY 43

6
7
1.1 BACKGROUND OF THE PROJECT

Ratio analysis is a technique of analysing the financial statement of industrial concerns. Now
days this technique is sophisticated and used in business concerns. Ratio analysis is not the
end but it is only better means of understanding of financial strength and weakness of the
firm.

Ratio analysis is one of the most powerful tools of financial analysis of which helps in
analysing and interpreting the health of the firm. Ratios are proved as a basis instrument in
the control process and act as backbone in schemes of business forecast.

1.2 NEED OF THE STUDY

 The study has great significance and provides benefits to various parties whom
directly or indirectly interact with the company.
 It is beneficial to management of the company by providing crystal clear picture
regarding important aspects like liquidity, leverage, activity and profitability.
 The study is also beneficial to employees and offers motivation by showing how
actively they are contributing for company’s growth.
 The investors who are interested in investing in the company’s shares will also get
benefited by going through the study and can easily take a decision whether to invest
or not to invest in the company’s shares.

1.3 LITERATURE REVIEW

Review of Literature refersto the collection of the results of the various researches relating to
the present study. It takes into consideration the research of the previous researchers which ar
erelated to the present research in any way. Here are the reviews of the previous researches
relatedwith the present study:

Bollen (1999)conducted a studyon Ratio Variables on which he found three different uses
of ratio variables in aggregate data analysis: (1) as measures of theoretical concepts, (2) as a
meansto control an extraneous factor, and (3) as a correction for heteroscedasticity. In the use
of ratiosas indices of concepts, a problem can arise if it is regressed on other indices or
variables thatcontain a common component. For example, the relationship between two per
capita measuresmay be confounded with the common population component in each variable.
Regarding thesecond use of ratios, only under exceptional conditions will ratio variables be a
suitable means of controlling an extraneous factor. Finally, the use of ratios to correct for
heteroscedasticity is misused. Only under special conditions will the common form
forgerscases are discussed and evaluated.

8
Cooper (2000)conducted a study on Financial Intermediation on which he observed that
thequantitative behaviour of business-cycle models in which the intermediation process acts
either asa source of fluctuations or as a propagator of real shocks. In neither case do we find
convincingevidence that the intermediation process is an important element
of aggregate fluctuations. For an economy driven by intermediation shocks, consumption is n
ot smoother than output,investment is negatively correlated with output, variations in the
capital stock are quite large, andinterest rates are procyclical. The model economy thus fails
to match unconditional moments for the U.S. economy. We also structurally estimate
parameters of a model economy in whichintermediation and productivity shocks are present,
allowing for the intermediation process to propagate the real shock. The unconditional
correlations are closer to those observed only whenthe intermediation shock is relatively
unimportant.

1.4 OBJECTIVES OF THE STUDY

The major objectives of the resent study are to know about financial strengths and weakness
of MRF Limited (MRF) ThroughFINANCIAL RATIO ANALYSIS.

The main objectives of resent study aimed as:

 To study the financial ratios of MRF Limited (MRF)

 To know the financial performance of the company.
 Interpret the financial statement so that the strength and weakness of a firm’s
performance and financial condition can be determined.
 To analyse the liquidity, long term solvency and profitability position of the company.
 To offer appropriate suggestions for the better performance of the organization.

1.5 RESEARCH METHODOLOGY

This study is based on secondary data collected from literature available on this field in the
forms of books, journals, published articles authentic websites published financial reports of
MRF Limited (MRF). and other relevant sources.Ratio analysis of financial statements is
being used for the company to analysis the growth and to show a comparative study of the
company and the existence in the market. The ratios used for the study are:

Liquidity or Solvency ratios

Profitability ratios

9
Simple charts, tables, bar diagrams and structures have been used to present and explain the
available data more clearly.

1.6LIMITATIONS OF STUDY

 The study is limited to few ratios because of non- availability of detailed financial
data.
 The study is based on secondary data such as annual report of the company.
 The reliability and accuracy of the calculation depends on information found in profit
and loss account and balance sheet of the companies.
 Non- monetary aspects are not considered making the results unreliable.
 Different accounting procedures may make results misleading.
 Accounting concepts and conventions cause serious limitation to financial ratio
analysis.
 The study is confirmed only to a period of four years.

1.7 CHAPTER PLANNING

 Conceptual overview.

 Presentation of data.

 Analysis of collected data.

 Conclusions and Recommendations.

 References

10
11
2.1CONCEPT OF RATIO ANALYSIS

A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical
values taken from an enterprise's financial statements. Often used in accounting, there are
many standard ratios used to try to evaluate the overall financial condition of a corporation or
other organization.

Financial ratios may be used by managers within a firm, by current and potential
shareholders (owners) of a firm, and by a firm's creditors. Security analysts use financial
ratios to compare the strengths and weaknesses in various companies. If shares in a company
are traded in a financial market, the market price of the shares is used in certain financial
ratios.

Ratio analysis is a process of determining and interpreting relationship between the items of
financial statements to provide a meaningful understanding of the performance and financial
position of the enterprise. Ratios are calculated from current year numbers and are then
compared to previous years, other companies, the industry, or even the economy to judge the
performance of the company. Ratio analysis is predominately used by proponents of
fundamental analysis.

2.2 FEATURES

A popular technique of analysis the performance of a business is that of financial ratio

analysis. As a tool financial management, they are of crucial significant.

Ratio analysis is relevant in assessing the performance of a firm in respect of the following
aspects:

i) Liquidity Position :
with the help of ratio analysis one can draw conclusions regarding liquidity
position of a firm. The liquidity position of a firm would be satisfactory if it is
able to meet its obligations when they became due.
ii) Long Term Solvency :
Ratio analysis is equally useful for assessing the long-term financial viability of a
firm. This aspect of the financial position of a borrower is of concern to the long
term creditors, security analysis and the present and potential owners of the
business.

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 iii) Overall Profitability :
Unlike the outside parties which are interested in one aspect of the financial
position of a firm, the management is constantly concerned about the overall
profitability of the enterprise. That is, they are concerned about the ability of the
firm to meet its short term as well as long term obligations to its creditors, to
ensure a reasonable return to its owners and secure optimum utilisation of the
assets of the firm. This is possible if an integrated view is taken and all the ratios
are considered together.
iv) Financial ratio for Budgeting :
In this ratios are able to provide a great deal of assistance, budget is only an
estimate of future activity based on past experience, in the making of which the
relationship between different spheres of activities are invaluable.

2.3 ADVANTAGES OF RATIOS

The following are the principal advantages of ratio analysis:

i. Forecasting and Planning:

The trend in costs, sales, profits and other facts can be known by computing ratios of relevant
accounting figures of last few years. This trend analysis with the help of ratios may be useful
for forecasting and planning future business activitie

ii. Budgeting:

Budget is an estimate of future activities on the basis of past experience. Accounting ratios
help to estimate budgeted figures. For example, sales budget may be prepared with the help
of analysis of past sales.

iii. Measurement of Operating Efficiency:

Ratio analysis indicates the degree of efficiency in the management and utilisation of its
assets. Different activity ratios indicate the operational efficiency. In fact, solvency of a firm
depends upon the sales revenues generated by utilizing its assets.

iv. Communication:

Ratios are effective means of communication and play a vital role in informing the position
of and progress made by the business concern to the owners or other parties.

v. Control of Performance and Cost:

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Ratios may also be used for control of performances of the different divisions or departments
of an undertaking as well as control of costs.

vi. Inter-firm Comparison:

Comparison of performance of two or more firms reveals efficient and inefficient firms,
thereby enabling the inefficient firms to adopt suitable measures for improving their
efficiency. The best way of inter-firm comparison is to compare the relevant ratios of the
organisation with the average ratios of the industry.

vii. Indication of Liquidity Position:

Ratio analysis helps to assess the liquidity position i.e., short-term debt paying ability of a
firm. Liquidity ratios indicate the ability of the firm to pay and help in credit analysis by
banks, creditors and other suppliers of short-term loans.

viii. Indication of Long-term Solvency Position:

Ratio analysis is also used to assess the long-term debt-paying capacity of a firm. Long-term
solvency position of a borrower is a prime concern to the long-term creditors, security
analysts and the present and potential owners of a business. It is measured by the
leverage/capital structure and profitability ratios which indicate the earning power and
operating efficiency. Ratio analysis shows the strength and weakness of a firm in this respect

ix. Indication of Overall Profitability:

The management is always concerned with the overall profitability of the firm. They want to
know whether the firm has the ability to meet its short-term as well as long-term obligations
to its creditors, to ensure a reasonable return to its owners and secure optimum utilisation of
the assets of the firm. This is possible if all the ratios are considered together.

x. Signal of Corporate Sickness:

A company is sick when it fails to generate profit on a continuous basis and suffers a severe
liquidity crisis. Proper ratio analysis can give signal of corporate sickness in advance so that
timely measures can be taken to prevent the occurrence of such sickness.

xi. Aid to Decision-making:

Ratio analysis helps to take decisions like whether to supply goods on credit to a firm,
whether bank loans will be made available etc.

xii. Simplification of Financial Statements:

Ratio analysis makes it easy to grasp the relationship between various items and helps in
understanding the financial statements.

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2.4 DISADVANTAGES OF RATIOS

The technique of ratio analysis is a very useful device for making a study of the financial
health of a firm. But it has some limitations which must not be lost sight of before
undertaking such analysis.

Some of these limitations are:

i. Limitations of Financial Statements:

Ratios are calculated from the information recorded in the financial statements. But financial
statements suffer from a number of limitations and may, therefore, affect the quality of ratio
analysis.

ii. Historical Information:

Financial statements provide historical information. They do not reflect current conditions.
Hence, it is not useful in predicting the future.

iii. Different Accounting Policies:

Different accounting policies regarding valuation of inventories, charging depreciation etc.

make the accounting data and accounting ratios of two firms non-comparable.

iv. Lack of Standard of Comparison:

No fixed standards can be laid down for ideal ratios. For example, current ratio is said to be
ideal if current assets are twice the current liabilities. But this conclusion may not be
justifiable in case of those concerns which have adequate arrangements with their bankers for
providing funds when they require, it may be perfectly ideal if current assets are equal to or
slightly more than current liabilities..

v. Quantitative Analysis:

Ratios are tools of quantitative analysis only and qualitative factors are ignored while
computing the ratios. For example, a high current ratio may not necessarily mean sound
liquid position when current assets include a large inventory consisting of mostly obsolete
items.

vi. Window-Dressing:

The term ‘window-dressing’ means presenting the financial statements in such a way to show
a better position than what it actually is. If, for instance, low rate of depreciation is charged,
an item of revenue expense is treated as capital expenditure etc. the position of the concern
may be made to appear in the balance sheet much better than what it is. Ratios computed
from such balance sheet cannot be used for scanning the financial position of the business.

15
 vii. Changes in Price Level:

Fixed assets show the position statement at cost only. Hence, it does not reflect the changes in
price level. Thus, it makes comparison difficult.

viii. Causal Relationship Must:

Proper care should be taken to study only such figures as have a cause-and-effect
relationship; otherwise ratios will only be misleading.

ix. Ratios Account for one Variable:

Since ratios account for only one variable, they cannot always give correct picture since
several other variables such Government policy, economic conditions, availability of
resources etc. should be kept in mind while interpreting ratios.

x. Seasonal Factors Affect Financial Data:

Proper care must be taken when interpreting accounting ratios calculated for seasonal
business. For example, an umbrella company maintains high inventory during rainy season
and for the rest of year its inventory level becomes 25% of the seasonal inventory level.
Hence, liquidity ratios and inventory turnover ratio will give biased picture.

2.5 COMPANY’S PROFILE

For this study I am going to study MRF Company
MRF Limited (MRF)- Company History

Madras Rubber Factory was started by K. M. MammenMappillai as a toy balloon

manufacturing unit in 1946 at Tiruvottiyur, Madras (now Chennai). In 1952, the company
ventured into the manufacture of tread rubber. Madras Rubber Factory limited was
incorporated as a private company in November 1960 and ventured into manufacture of tyres
in partnership with Mansfield Tire & Rubber company based in Ohio, United States. The
company went public on 1 April 1961 and an office was established in Beirut, Lebanon to
develop the export market in 1964 and its current logo of the muscleman was born. In 1967,
it became the first Indian company to export tyres to USA.
In 1973, MRF started manufacturing Nylon tyres for the first time. The Company entered into
with a technical know-how collaboration
with B.FGoodrich in 1978. The Mansfield Tire &
Rubber Co sold out its share in 1979 and the name
of the company was changed to MRF Ltd in the
year. The company finalized a technical
collaboration agreement with Marangoni TRS
SPA, Italy for the manufacture of pre-cured tread
rubber for retreading industry. MRF tyres supplied
tyres to Maruti 800, India's first modern small
car. In 1989, the company collaborated
with Hasbro International United States, the
16
world's largest toy maker and launched Funskool India. Also, they entered into a pact with
Vapocure of Australia to manufacture polyurethane paint formulations and with Italian tyre
manufacturer Pirelli for conveyor and elevator belt manufacture. During the year 2004-05,
the product range of the company expanded with Go-kart & rally tyres and tyres for two/three
wheelers.

Products

 Tyres manufactures various tyres for passenger cars, two–wheelers, trucks, buses,
tractors, light commercial
vehicles, off–the–road tyres and
aero plane tyres,MRF
ZVTS[clarification needed] and
MRF Wanderers for cars and
SUVs, MRF Meteor all terrain
tyres, MRF Steel Muscle for
trucks and buses.
 MRF ZLX is the latest one which
is well known for its comfort in
passenger segment
 Conveyor Belting – manufactures its in-house brand of Muscleflex conveyor belts.
 Pretreads – MRF has the most advanced pre-cured retreading system in India. MRF
forayed into retreading in 1970 and manufactures pretreads for tyres.
 Paints - manufactures polyurethane paint formulations and coats used in automotive,
decorative and industrial applications.
 Cricket - MRF manufactures cricket bats, gloves, pads and other accessories.

Manufacturing facilities in India

1. Kottayam Plant in Kerala

2. Puducherry Plant
3. Goa Plant
4. Trichi Radial Plant
in Tiruchirappalli, Tamil
Nadu
5. Trichi Bias Plant
in Tiruchirappalli, Tamil
Nadu
6. Arakonam Plant in Tamil
Nadu
7. Tiruvottiyur Plant
in Chennai, Tamil Nadu
8. Medak Plant in Telangana
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 9. Ankenpally Plant in Telangana
10.Dahej Plant (Under Construction) in Gujarat
11.The company also manufactures toys at its facility in Goa. The paints and coats are
manufactured at two facilities in Chennai, Tamil Nadu.

Awards and recognition

MRF won the JD Power Award for the record 11th time in 2014. The company has won
several awards and accolades including the All India Rubber Industries Association's
(AIRIA) award for 'Highest Export Awards (Auto Tyre Sector)', 'Top Export Award' from
Chemicals & Allied Products Export Promotion Council (CAPEXIL) for 2009–10. In 2014,
MRF was ranked 48th among India's most trusted brands according to the Brand Trust
Report, a study conducted by Trust Research Advisory.

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19
3.1 OBJECTIVES

The specific objectives of the study are to analyse the working performance of MRF
Limited (MRF) and providing suggestions and recommendations for improvement.

MRF Limited (MRF)was chosen because of its performance and growth. It is India’s largest
private sector enterprise.

 Balance Sheet of MRF Limited (MRF) for four consecutive years.

BALANCE SHEET OF MAR 19 MAR 18 MAR 17 MAR 16

MRF (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 4.24 4.24 4.24 4.24

TOTAL SHARE 4.24 4.24 4.24 4.24

CAPITAL

Reserves and Surplus 10,833.11 9,733.95 8,636.52 7,220.10

TOTAL RESERVES AND 10,833.11 9,733.95 8,636.52 7,220.10

SURPLUS

TOTAL 10,837.35 9,738.19 8,640.76 7,224.34

SHAREHOLDERS
FUNDS

Minority Interest 0.12 0.12 0.12 0.12

NON-CURRENT
LIABILITIES

Long Term Borrowings 1,054.73 1,319.33 1,238.32 1,486.45

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Deferred Tax Liabilities 840.20 619.83 502.00 352.52
[Net]

Other Long Term Liabilities 76.32 58.08 27.74 36.24

Long Term Provisions 168.11 153.04 137.49 125.32

TOTAL NON-CURRENT 2,139.36 2,150.28 1,905.55 2,000.53

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 1,047.66 688.52 834.13 885.59

Trade Payables 1,709.38 1,568.51 1,408.37 1,126.15

Other Current Liabilities 2,557.91 2,190.13 2,137.92 1,927.43

Short Term Provisions 149.48 142.73 121.62 89.65

TOTAL CURRENT 5,464.43 4,589.89 4,502.04 4,028.82

LIABILITIES

TOTAL CAPITAL AND 18,441.26 16,478.48 15,048.47 13,253.81

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 6,769.77 6,074.70 5,489.01 4,599.21

Intangible Assets 16.23 17.47 13.23 9.08

Capital Work-In-Progress 1,403.47 1,078.91 847.93 1,059.28

FIXED ASSETS 8,189.47 7,171.08 6,350.17 5,667.57

Non-Current Investments 1,057.00 1,071.27 1,059.39 1,023.36

Deferred Tax Assets [Net] 0.06 0.26 0.31 0.00

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Long Term Loans And 0.36 14.15 3.87 3.58
Advances

Other Non-Current Assets 730.57 358.96 321.09 240.31

TOTAL NON-CURRENT 9,977.46 8,615.72 7,734.83 6,934.82

ASSETS

CURRENT ASSETS

Current Investments 2,797.68 3,073.73 2,322.71 2,114.54

Inventories 2,993.20 2,197.33 2,425.27 1,899.81

Trade Receivables 2,382.71 2,149.93 1,969.00 1,838.72

Cash And Cash Equivalents 104.50 233.68 342.61 124.23

Short Term Loans And 0.61 1.90 3.98 0.00

Advances

OtherCurrentAssets 185.10 206.19 250.07 341.69

TOTAL CURRENT 8,463.80 7,862.76 7,313.64 6,318.99

ASSETS

TOTAL ASSETS 18,441.26 16,478.48 15,048.47 13,253.81

OTHER ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 4,997.23 1,321.76 1,463.63 1,061.66

Source : Dion Global Solutions Limited (www.moneycontrol .com)

22
Profit and Loss Account of MRF Limited (MRF) for four consecutive years.

PROFIT & LOSS ACCOUNT MAR 19 MAR 18 MAR 17 MAR 16

OF MRF (in Rs. Cr.)

12 mths 12 mths 12 mths 18 mths

INCOME

REVENUE FROM 15,994.21 15,317.82 14,863.24 22,395.15

OPERATIONS [GROSS]

Less: Excise/Sevice Tax/Other 0.00 410.59 1,516.98 2,310.78

Levies

REVENUE FROM 15,994.21 14,907.23 13,346.26 20,084.37

OPERATIONS [NET]

TOTAL OPERATING 16,062.46 15,000.40 13,412.23 20,180.24

REVENUES

Other Income 421.73 284.63 330.97 323.59

TOTAL REVENUE 16,484.19 15,285.03 13,743.20 20,503.83

EXPENSES

Cost Of Materials Consumed 10,292.57 8,985.38 7,679.95 11,249.13

Operating And Direct Expenses 0.00 0.00 0.00 0.00

Employee Benefit Expenses 1,165.28 1,092.36 1,000.36 1,285.22

Finance Costs 267.31 253.12 251.47 352.56

Depreciation And Amortisation 807.60 706.72 610.58 737.12

Expenses

Other Expenses 2,882.48 2,471.23 2,276.33 3,198.62

TOTAL EXPENSES 14,832.01 13,632.38 11,633.83 16,847.93

PROFIT/LOSS BEFORE 1,652.18 1,652.65 2,109.37 3,655.90

23
EXCEPTIONAL,
EXTRAORDINARY ITEMS
AND TAX

Exceptional Items 0.00 0.00 0.00 0.00

PROFIT/LOSS BEFORE TAX 1,652.18 1,652.65 2,109.37 3,655.90

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 339.17 402.14 465.06 1,032.45

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00

Deferred Tax 182.40 118.90 158.09 114.02

Other Direct Taxes 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 521.57 521.04 623.15 1,146.47

PROFIT/LOSS AFTER TAX 1,130.61 1,131.61 1,486.22 2,509.43

AND BEFORE
EXTRAORDINARY ITEMS

PROFIT/LOSS FROM 1,130.61 1,131.61 1,486.22 2,509.43

CONTINUING OPERATIONS

PROFIT/LOSS FOR THE 1,130.61 1,131.61 1,486.22 2,509.43

PERIOD

Minority Interest 0.01 0.00 0.00 0.00

CONSOLIDATED 1,130.62 1,131.61 1,486.22 2,509.43

PROFIT/LOSS AFTER MI
AND ASSOCIATES

OTHER ADDITIONAL
INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 2,666.00 2,668.00 3,504.00 5,917.00

24
Diluted EPS (Rs.) 2,666.00 2,668.00 3,504.00 5,917.00

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend 25.45 25.45 42.41 21.20

Tax On Dividend 5.23 5.18 8.64 4.27

Source : Dion Global Solutions Limited (www.moneycontrol .com)

3.2 ANALYSIS OF FINDINGS

I. Liquidity Ratio

Liquidity Ratio measure the ability of a firm to meet its short-term obligations. Short-term is
conventionally viewed as a period up to one year. By liquidity, we mean the amount of cash
or cash equivalents the firm has on hand and the amount of cash it can arrange in a short
period of time. Cash is the most liquid asset. It includes currency, demand deposits with
bank. Cash equivalents are short-term highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk of changes in
value. Stock and debtors are somewhat less liquid.

a. Current Ratio
b. Liquid Ratio / Quick ratio / Acid-Test Ratio
a) CURRENT RATIO
Current Ratio indicates a company's ability to meet short-term debt obligations. The current
ratio measures whether or not a firm has enough resources to pay its debts over the next 12
months. The higher the ratio, the more liquid the company is. Commonly acceptable current
ratio is 2; it's a comfortable financial position for most enterprises.
FORMULA:-
Current Ratio = Current Assets /Current Liabilities
Where; Current Asset = Stock + Debtors + Bills Receivables + Cash + Bank + Marketable
Securities + Prepaid Expense + Accrued Interest + Advance (short term).
Current Liabilities = Creditors + Bills Payable + Bank Overdraft + Outstanding Expenses +
Income Received in Advance + Short term obligations.

25
TABLE NO: - 1 (showing a comparison of current ratio of MRF Limited (MRF)For the
consecutive four years)

YEARS 2018-19 2017-18 2016-17 2015-16

CURRENT 1.55 1.71 1.62 1.57

RATIO

Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO: - 1 (showing the current ratio of the company as extracted from table no. 1)

1.75

1.7 1.71

1.65
current ratio

1.62
1.6
1.55
1.57
1.55

1.5

1.45
2018-19 2017-18 2016-17 2015-16
years

X-axis measure the consecutive years and Y-axis measures the Current Ratio

INTERPRETATION:-

Current ratio is a useful test of the short-term-debt paying ability of any business. A ratio of
2:1 or higher is considered satisfactory.The current ratio helps investors and creditors
understand the liquidity of a company and how easily that company will be able to pay off its
current liabilities. This ratio expresses a firm's current debt in terms of current assets. So a
current ratio of 4 would mean that the company has 4 times more current assets than current
liabilities.

A higher current ratio is always more favourable than a lower current ratio because it shows
the company can more easily make current debt payments.

From the graph we can see that the current ratio of 2018-19, 2017-18, 2016-17, 2015-16 are
1.55, 1.71, 1.62 and 1.57 respectively.

26
 b) QUICK RATIO

Quick Ratio is a measure of a company's ability to meet its short-term obligations using its
most liquid assets (near cash or quick assets). Quick assets include those current assets that
presumably can be quickly converted to cash at close to their book values. The commonly
acceptable current ratio is 1 :1. A company with a quick ratio of less than 1 cannot currently
pay back its current liabilities; it's the bad sign for investors and partners.

FORMULA:-

Quick Ratio = Liquid Assets / Liquid Liabilities

Where; Liquid Assets = Current Assets – Stock – Prepaid Expenses.

Liquid Liabilities = Current Liabilities – Bank Overdraft.

TABLE NO: - 2 (showing a comparison of quick ratio of MRF Limited (MRF) For the
consecutive four years)

YEARS 2018-19 2017-18 2016-17 2015-16

Quick Ratio 1.00 1.23 1.09 1.10

Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO 2: - (showing the quick ratio of the company as extracted from table no. 2)

1.4
1.23
1.2 1.09
1 1.1
1
quick ratio

0.8

0.6

0.4

0.2

0
2018-19 2017-18 2016-17 2015-17
years

27
X-axis measure the consecutive years and Y-axis measures the Quick Ratio

INTERPRETATION:-

The acid test ratio measures the liquidity of a company by showing its ability to pay off its
current liabilities with quick assets.Higher quick ratios are more favourable for companies
because it shows there are more quick assets than current liabilities. A company with a quick
ratio of 1 indicates that quick assets equal current assets. This also shows that the company
could pay off its current liabilities without selling any long-term assets. An acid-test ratio of
2 shows that the company has twice as many quick assets than current liabilities.Obviously,
as the ratio increases so does the liquidity of the company. More assets will be easily
converted into cash if need be.

From the graph we can see that the Quick ratio of 2018-19, 2017-18, 2016-17, 2015-16 are
1.00, 1.23, 1.09 and 1.1 respectively.

II. Solvency Ratio

In a popular sense, solvency means that a business is able to pay its liabilities as they become
due. Insolvency means the business is unable to do so. Whereas liquidity refers to the ability
of a firm to meet its short-term liabilities, solvency usually refers to the firm’s ability to meet
long-term liabilities. Solvency depends on the profitability of the business. If a business is not
profitable in the long-run, it will not be able to meet its debts. Solvency ratios measure the
extent to which the firm has been financed by debt. Following are the important solvency
ratios:

a. Debt-Equity ratio
b. Total Assets to Debt Ratio
c. Proprietary Ratio
a) Debt-Equity ratio

Debt equity ratio measures the relationship between long-term debts and equity.

If this ratio is high that may indicate- i) Too much dependence on outside funds. ii) Reduce
margin of safety of creditors.

A low ratio may indicate- i) too much dependence on own fund. ii) Over capitalisation.

If debt are available at cheaper rates and the market condition of the business is favourable a
high ratio can be recommended.

This ratio helps to judge the soundness and practical use of the long-term financial cases.

28
 FORMULA:-

Debt-equity ratio = Long term debts / Shareholders fund, Where

Long term debts = Debentures + Long-term loans.

Shareholders fund = Equity Share Capital + Reserves and Surplus – Fictitious Assets +
Preference Share Capital.

TABLE NO: - 3 (showing a comparison of Debt Equity ratio of MRF Limited (MRF) For
the consecutive four years)

2015-16
YEARS 2018-19 2017-18 2016-17

DEBT 0.19 0.21 0.24 0.33

EQUITY
RATIO

Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO 3: - (showing the Debt equity ratio of the company as extracted from table no.
3)

0.35
0.33
0.3
0.24
0.25
debt-equity ratio

0.21
0.19
0.2

0.15

0.1

0.05

0
2018-19 2017-18 2016-17 2015-16
years

X-axis measure theconsecutive years and Y-axis measures the Debt Equity Ratio

INTERPRETATION:-

29
A ratio 1 means that long term liabilities and equity shareholders contribute equally to the
assets of the business.

A less than 1ratio indicates that the portion of assets provided by shareholders is greater than
the portion of assets provided by the debenture holders and other long term liability holders.
A greater than 1 ratio indicates that the portion of assets provided by shareholders is less than
the portion of assets provided by the debenture holders and other long term liability holders.

Creditors usually like a low debt equity ratio because a low ratio is the indication of greater
protection of their money. But shareholders would like a high debt equity ratio.

From the graph we can see that the debt equity ratio of 2018-19, 2017-18, 2016-17, 2015-16
are 0.19, 0.21, 0.24 and 0.33 respectively.

III. Profitability Ratio

The key interest of the owners of a business, e.g., the equity shareholders in the case of a
company is the profitability. Profitability means the returns achieved through the efforts of
the management on the funds invested by the owners of a business. The amount of profits
earned by a business has little significance unless it is related to source.

Profitability is the capacity of an enterprise to make profits as measured by accounting ratios

relating profits to sales or to investment. It is the net result of a large number of policies and
decisions. Profitability ratios measure management’s overall efficiency as shown by the
returns generated on sales and investments. The important profitability ratios are :

a. Net Profit Ratio

b. Return on capital employed / Investment
c. Operating ratio
d. Earnings per share
e. Price – Earnings Ratio
f. Dividend Per Shar

a) Net Profit Ratio

Net profit margin (or profit margin, net margin, return on revenue) is a ratio of
profitability calculated as after-tax net income (net profits) divided by sales (revenue). Net

30
 profit margin is displayed as a percentage. A higher net profit margin means that a company
is more efficient at converting sales into actual profit.

FORMULA:-
Net Profit
Net Profit Margin = × 100
Net Revenue from operation

TABLE NO: - 4 (showing a comparison of Net Profit ratio of MRF Limited (MRF) For
the consecutive four years)

YEARS 2018-19 2017-18 2016-17 2015-16

NET PROFIT 7.03 7.54 11.08 12.43
RATIO (%)
Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO 4: -(showing the Net profit ratio of the company as extracted from table no. 4)

14

12.43
12 11.08

10
Net Profit Ratio(%)

7.54
8 7.03

0
2018-19 2017-18 2016-17 2015-16
years

X-axis measure theconsecutive years and Y-axis measures the Net Profit Ratio

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.

31
There is no norm to interpret this ratio. To see whether the business is constantly improving
its profitability or not, the analyst should compare the ratio with the previous years’ ratio, the
industry’s average and the budgeted net profit ratio.

From the graph we can see that the Net Profit ratio of 2018-19, 2017-18, 2016-17, 2015-16
are 7.03,7.54,11.08 and 12.43respectively.

b) RETURN ON CAPITAL EMPLOYED

Return on capital employed Ratio is calculated and used to ascertain the relationship
between Net profit before interest and tax (NPBIT) and Capital Employed. Itis also
termed as Return on Investment. Investment implies the long term funds invested in the
business that is Capital Employed.
The objective of this ratio is to measure the efficiency of source deployed in a business to
yield return. It is a real measure of profitability.
As tax cannot reflect the earning capacity of a business, profits before tax are used to
compute this ratio.

FORMULA:-
Net profit before tax and interest
Return on capital employed = × 100
𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑

Where capital employed = Shareholder’s funds + long-term loans – Fictitious assets – non-
current investments – deferred tax assets
If capital employed is calculated under assets side. Approach,
Capital employed = Non-current assets + working capital – non-current investments.

TABLE NO: - 5(showing a comparison of return on capital employed of MRF

Limited (MRF) For the consecutive four years)
YEARS 2018-19 2017-18 2016-17 2015-16
RETURN ON 14.79 9.51 14.09 27.20
CAPITAL
EMPLOYED
(%)
Source : Dion Global Solutions Limited (www.moneycontrol .com)

32
GRAPH NO 5: - (showing the return on capital employed of the company as extracted
from table no. 5)

16
14.79
Return on Capital Employed(%)

14 14.09

12
9.51
10
8.92
8
6
4
2
0
2018-19 2017-18 2016-17 2015-16
years

X-axis measure theconsecutive years and Y-axis measures the Return on Capital employed

INTERPRETATION:-

The return on capital employed ratio shows how much profit each Rs. of employed capital
generates. Obviously, a higher ratio would be more favourable because it means that more
Rs. of profits are generated by each Rs. of capital employed. Investors are interested in the
ratio to see how efficiently a company uses its capital employed as well as its long-term
financing strategies. Companies' returns should always be high than the rate at which they are
borrowing to fund the assets.

From the graph we can see that the Return on Capital Employed of 2018-19, 2017-18, 2016-
17, 2015-16 are 14.79, 9.51, 14.09 and 8.92 respectively.

c) Earnings per share

Earnings per share (EPS) are the portion of the company’s distributable profit which is
allocated to each outstanding equity share (common share). Earnings per share is a very good
indicator of the profitability of any organization, and it is one of the most widely used
measures of profitability.EPS when calculated over a number of years indicates whether the
earning power of the company has improved or deteriorated.
FORMULA:-

33
 EAES
Earnings per Share =
Number of Equity Shares

Where, Earnings available to equity shareholders (EAES) = Net profit after tax – preference
dividend

TABLE NO: -6 (showing a comparison of EPS of MRF Limited (MRF) For the
consecutive four years)
YEARS 2018-19 2017-18 2016-17 2015-16
EPS 2,665.82 2,668.17 3,504.29 5,916.87

Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO 6: - (showing the EPS of the company as extracted from table no.6)

7000

6000 5916.87

5000
3504.29
4000
EPS (Rs.)

2665.82 2668.17
3000

2000

1000

0
2018-19 2017-18 2017-18 2015-16
years

X-axis measure theconsecutive years and Y-axis measures the Earning per share

INTERPRETATION:-

Earnings per share are the same as any profitability or market prospect ratio. Higher earnings
per share are always better than a lower ratio because this means the company is more
profitable and the company has more profits to distribute to its shareholders.

From the graph we can see that the EPS of 2018-19, 2017-18, 2016-17, 2015-16 are 2665.82,
2668.17, 3504.29 and 5916.87 respectively.

34
Activity (assets utilisation) Ratio :

Generally, activity means a particular direction in which a business applies its efforts,
e.g., a business may have a trading activity or a manufacturing activity. In according,
activity is a measure of the general level of business. Thus a firm with a small turnover
may be said to be operating at a low level of activity.
Activity ratios show the degree of assets utilisation of a business. Activity ratio are the
ratio of cash elasticity of current assets, i.e., how quickly various current assets are
converted into sales and cash. Current assets normally comprise cash, debtors and stock.
A firm’s ability to meet current liabilities largely depends upon the rate at which cash
flows into business from current operations. Since sales are the critical event in this
respect, the rate at which stock are sold or debtors settle their accounts are very crucial.
Thus, it is necessary to evaluate the activity of specified current assets like stock, debtors
and also total assets. The important activity ratios are:
a. Inventory Turnover ratio
b. Debtors Turnover ratio
c. Payable / Creditors Turnover ratio
d. Working Capital Turnover ratio
e. Fixed Assets Turnover ratio
f. Current Assets Turnover ratio
a) Inventory Turnover Ratio

It is the ratio of cost of revenue from operation to average stock-in-trade. The stock
turnover ratio measures how quickly inventory is sold, i.e., the number of times a
business’s stock turnover during a year. Stock turnover is computed by dividing the
cost of goods sold by average inventory.

This ratio is likely to differ substantially from one business to another. One
important reason is the valuation of stock. As compared to sales, cost of goods sold is
preferable as the numerator but it may not be available to external users.

FORMULA:-
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝐹𝑟𝑜𝑚 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛
Inventory Turnover Ratio =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑆𝑡𝑜𝑐𝑘

35
 Where, Cost of Revenue From operation = Revenue From Operation – Gross profit

Or

Cost of Revenue From operation = Opening Stock + Purchase +Carriage Inwards +

Direct Expenses – Closing Stock

𝑂𝑝𝑒𝑛𝑖𝑛𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦+𝐶𝑙𝑜𝑠𝑖𝑛𝑔 𝐼𝑁𝑣𝑒𝑛𝑡𝑜𝑟𝑦

Average Inventory =
2

TABLE NO: -7 (showing a comparison of Inventory Turnover Ratio of MRF

Limited (MRF) For the consecutive four years)
YEARS 2018-19 2017-18 2016-17 2015-16
Inventory 5.37 6.83 5.53 10.62
Turnover Ratio
Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO 7: - (showing the Inventory Turnover Ratio of the company as extracted from
table no. 7)

12

10.62
10
Inventory Turnover Ratio

8
6.83
5.53
6 5.37

0
2018-19 2017-18 2016-17 2015-16
years

X-axis measure theconsecutive years and Y-axis measures the Inventory Turnover Ratio

36
INTERPRETATION:-

Inventory turnover is a measure of how efficiently a company can control its merchandise, so
it is important to have a high turn. This shows the company does not overspend by buying too
much inventory and wastes resources by storing non-saleable inventory. It also shows that the
company can effectively sell the inventory it buys.

This measurement also shows investors how liquid a company's inventory is. Think about it.
Inventory is one of the biggest assets a retailer reports on its balance sheet. If this inventory
can't be sold, it is worthless to the company. This measurement shows how easily a company
can turn its inventory into cash.

Creditors are particularly interested in this because inventory is often put up as collateral for
loans. Banks want to know that this inventory will be easy to sell.

From the graph we can see that the Inventory Turnover Ratio of 2018-19, 2017-18, 2016-17,
2015-16 are5.37, 6.83, 5.53 and10.62respectively.

b) Assets Turnover ratio

It is the ratio of sales to total assets. It is intended to reflect the intensity with which
assets are employed. This ratio focuses on the use of assets made by a company and it
is considered to be a prime determinate of the level of future income inflows.
A low ratio indicates that the assets are not being efficiently employed. A high ratio
indicates that the assets are being utilised efficiency.
There can be several variants of this ratio depending on the type of assets used to
calculate the ratio, viz. fixed assets, current assets and total assets. We are discussing
on total assets.

FORMULA:-

𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝐹𝑟𝑜𝑚 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 𝑜𝑟 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝐹𝑟𝑜𝑚 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠

Assets Turnover Ratio =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

TABLE NO: - 8 (showing a comparison of Assets Turnover Ratio of MRF

Limited (MRF) For the consecutive four years)
YEARS 2018-19 2017-18 2016-17 2015-16
Assets 87.10 91.03 89.12 152.25
Turnover Ratio
(%)

37
Source : Dion Global Solutions Limited (www.moneycontrol .com)

GRAPH NO 8: - (showing the Assets Turnover Ratio of the company as extracted from table no. 8)

160
152.25
140
Assets Turnover Ratio (%)

120

91.03 89.12
100 87.1

80

60

40

20

0
2018-19 2017-18 2016-17 2015-16
years

X-axis measure theconsecutive years and Y-axis measures the assets Turnover Ratio

INTERPRETATION:-

Assets turnover ratio shows the comparison between the sales and the average assets of the
company. An assets turnover ratio of 3 means, for every 1 USD worth of assets, 3 USD worth
of sale is generated. So, a higher asset turnover ratio is preferred as it reflects more efficient
asset utilization.

From the graph we can see that the Assets Turnover Ratio of 2018-19, 2017-18, 2016-17,
2015-16 are 87.10, 91.03, 89.12 and 152.25 respectively.

FINDING:-

Balance Sheet of MRF Limited (MRF) for four consecutive years. Source : Dion Global
Solutions Limited (www.moneycontrol .com)

Profit and Loss Account of MRF Limited (MRF) for four consecutive years. Source :
Dion Global Solutions Limited (www.moneycontrol .com)

38
TABLE NO: - 1 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO: - 2 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO:- 3 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO: - 4 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO: - 5 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO: - 6 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO: - 7 Source : Dion Global Solutions Limited (www.moneycontrol .com)

TABLE NO: - 8 Source : Dion Global Solutions Limited (www.moneycontrol .com)

39
40
4.1 CONCLUSION
Ratio is the basic tool of financial analysis and financial analysis itself is an
important part of any business planning process as SWOT analysis, being basic tool
of the strategic analysis plays a vital role in a business planning process and no
SWOT analysis would be complete without an analysis of companies financial
position. In this way Ratio Analysis is very important part of the whole business
strategic planning. Accounting ratios are very helpful in analysing any company’s
performance but on the flip side, these ratios calculated using balance sheet on a
specific date. As such, may not reflect the financial position of the company during
other periods of the year. Hence, it is always better for the analyst to do the in-depth
analysis of the company’s performance rather to only rely on ratios.

4.1 RECOMMENDATIONS
i. Company’s current ratio is below standard. The company can improve current ratio
in the following ways:
a) Faster conversion cycle of debtors or account receivables.
b) Pay off current liabilities.
c) Sell off unproductive assets.
d) Improve current assets by rising shareholders funds.
e) Sweep bank accounts.
ii. Quick ratio of the company is not good,because of higher current liabilities and
lower current assets so the company have to increase current assets or decrease the
current liabilities.
iii. Earnings per share are the portion of profit allocated to shareholders. Every
shareholders wants return from their investment. The company’s EPS is decreased in
2018-19 compare to 2015-16. In 2018-19 it is 2665.82 and in 2015-16 it was
5916.87.Higher the EPS, the better is the growth and performance of the company.
iv. The company can improve assets turnover ratio as following ways :
a) Increase Revenue
The easiest way to improve assets turnover ratio is to focus on increasing
revenue. The might be properly utilized, but the sales could be slow resulting in a
low asset turnover ratio. The company needs to increase its sales by more
promotions and quick movements of the finished goods.
b) Liquidate Assets
Obsolete or unused assets should be liquidated quickly. Assets, that are not used
frequently, should be analysed to see whether there is a sense in retaining those.

41
 Basically, the company should sell those assets that do not add to the bottom line
regularly.
c) Leasing
Another efficient way is to lease assets, instead of buying them. Any leased
equipment is not counted as a fixed asset.
d) Better Inventory Management
The company needs to check its inventory management to figure out the time
spent in the movement of the goods throughout the process. If the company’s
delivery system is slow, there will be delays in getting the product to the
customer and collecting the payment on time. The company should invest in
technology and automate the order, billing and inventory systems. This will
improve the sales and increase the assets turnover ratio.
e) Accelerate Accounts Receivables
The slow collection of accounts receivables will lower the sales in the period,
hence reducing the asset turnover ratio. The company should focus on quick
collection practices. This can include outsourcing the delinquent accounts to a
collecting agency, hiring an employee just for collecting pending invoices and
reducing the amount of time given to customers to pay.

42
 BIBLIOGRAPHY
BOOKS

 Hanif, Former Sr. Professor of Accounting & Finance St. Xavier’s College
(Autonomous), Kolkata
 Mukherjee, Former Sr. Professor of Accounting & Finance St. Xavier’s College
(Autonomous), Kolkata

REFERENCES
I have taken help from the following sources:-

LITERATURE ARTICLES

 Pandey and Parera (1997) Working capital management in Shrilanka

by I. M. Pandey and K. L. W. Perera (Working Paper, No. 1997/1349)
 Morris Lamberson, (1995) "Changes in Working Capital of Small Firms in Relation
to Changes in Economic Activity", American Journal of Business, Vol. 10 Iss: 2,
pp.45 – 50 http://www.emeraldinsight.com/journals.htm?articleid=1917723
 https://efinancemanagement.com/financial-analysis/how-to-analyze-and-improve
 https://www.readyratios.com/reference/liquidity/current-ratio.html
 https://www.moneycontrol.com › Markets › Share/Stock Price › Refineries
 https://en.wikipedia.org/wiki/MRF_(company)

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