A STUDY ON FINANCIAL PERFORMANCE ANALYSIS AT AADHI

MOTORS LIMITED

PROJECT REPORT

Submitted to Bharathiar University in partial fulfillment of the requirements for the

award of the Degree of

BACHELOR OF COMMERCE

SUBMITTED BY

AKSHAY. AR

(Reg No.152AA2917)

Under the guidance of

Mr. KARTHIKEYAN M.Com., M.Phil., B.Ed.,

Assistant Professor

DEPARTMENT OF COMMERCE

KG COLLEGE OF ARTS AND SCIENCE

SARAVANAMPATTI

COIMBATORE-641035

MARCH-2018
DECLARATION
 DECLARATION

I hereby declare that the project entitled “A STUDY ON FINANCIAL PERFORMANCE

ANALYSIS AT AADHI MOTORS LIMITED” by AKSHAY. AR (Reg.No.152AA2917),
in partial fulfillment of the requirements for the award of the Degree of Bachelor of
Commerce., submitted in the Department of Commerce at KG COLLEGE OF ARTS AND
SCIENCE under BHARATHIAR UNIVERSITY is an authentic record of my own work
carried out under the supervision of Mr. KARTHIKEYAN M.Com., M.Phil., B.Ed.,
Assistant Professor. The matter presented has not been submitted by me in any other
University/Institute for the award of B.com degree.

.....................................

AKSHAY. AR

(Reg.No.152AA2917)

This is to certify that the above statement made by the candidate is correct to the best of my
knowledge

.................................................

Guide’s name : Mr. B.KARTHIKEYAN M.Com., M.Phil., B.Ed.,

Guide’s designation : Assistant Professor

..............................................................................

Mr.B.KARTHIKEYAN M.Com., M.Phil., B.Ed.

Head of the Department

Department of Commerce
ACKNOWLEDGEMENT
 ACKNOWLEDGEMENT

I express my sincere thanks to Dr. ASHOK BHAKTHAVATHSALAM, Managing Trustee

and Ms. DIVYA ASHOK Trustee, of KG College of Arts and Science, and the management for
giving me an opportunity to undergo this course of study and to undertake this project work.

I extend my thanks and indebtedness to Secretary, Dr.R. RAVICHANDRAN,

M.Sc.,M.Phil., Ph.D., KG College of Arts and Science, for his constant encouragement and
valuable guidance throughout the course of the project.

I extend my thanks to Dr.R.ANUJA, M.B.A., M.Phil., PGDCA., Ph.D, Principal, KG

College of Arts and Science, for her kind support given to me to complete this project work.

I extend my thanks to Mr.B.KARTHIKEYAN, M.Com., M.Phil., B.Ed., Head

Department of Commerce, KG College of Arts and Science, for his kind support given to me to
complete this project work.

I would like to express my warmth filled thanks to my guide Mr. KARTHIKEYAN

M.Com., M.Phil., B.Ed., Assistant Professor , Department of Commerce for his valuable
guidance and support given to me to complete this project work.
CONTENTS
 CONTENTS
CHAPTER TITLE PAGE
NO: NO:

1 INTRODUCTION
1.1 INTRODUCTION TO THE STUDY 1
1.2 INDUSTRY PROFILE 6
1.3 COMPANY PROFILE 12
1.4 NEED & SCOPE OF THE STUDY 19
1.5 PERIOD OF STUDY 19
1.6 OBJECTIVE OF THE STUDY 19
1.7 LIMITATION OF THE STUDY 19
2 REVIEW OF LITERATURE 20

3 RESEARCH METHODOLOGY 23

4 DATA ANALYSIS AND INTERPRETATION 25

5 ANALYSIS AND INTERPRETATION 35

6 FINDINGS, SUGGESTIONS & CONCLUSION

6.1 FINDINGS 79
6.2 SUGGESTIONS 81
6.3 CONCLUSION 82
BIBILOGRAPHY 83

ANNEXURE
 LIST OF TABLES

LIST OF TABLES
SL. NO: TITLE PAGE
NO:

1 CURRENT RATIO 35

2 LIQUID RATIO 37

3 ABSOLUTE LIQUID RATIO 39

4 INVENTORY TURNOVER RATIO 41

5 INVENTORY HOLDING PERIOD 43

6 DEBTORS TURNOVER RATIO 45

7 AVERAGE COLLECTION PERIOD 47

8 CREDITORS TURNOVER RATIO 49

9 AVERAGE PAYMENT PERIOD 51

10 FIXED ASSET TURNOVER RATIO 53

11 GROSS PROFIT RATIO 55

12 NET PROFIT RATIO 57

13 EARNING PER SHARE 59

14 TOTAL ASSET TURNOVER RATIO 61

15 PROPRIETARY RATIO 63

16 OPERATING PROFIT RATIO 65

17 DEBT EQUITY RATIO 67

18 RETURN ON INVESTMENT 69
LIST OF CHART
 LIST OF CHART

SL. NO: TITLE PAGE

NO:

1 CURRENT RATIO 36

2 LIQUID RATIO 38

3 ABSOLUTE LIQUID RATIO 40

4 INVENTORY TURNOVER RATIO 42

5 INVENTORY HOLDING PERIOD 44

6 DEBTORS TURNOVER RATIO 46

7 AVERAGE COLLECTION PERIOD 48

8 CREDITORS TURNOVER RATIO 50

9 AVERAGE PAYMENT PERIOD 52

10 FIXED ASSET TURNOVER RATIO 54

11 GROSS PROFIT RATIO 56

12 NET PROFIT RATIO 58

13 EARNING PER SHARE 60

14 TOTAL ASSET TURNOVER RATIO 62

15 PROPRIETARY RATIO 64

16 OPERATING PROFIT RATIO 66

17 DEBT EQUITY RATIO 68

18 RETURN ON INVESTMENT 70
INTRODUCTION
REVIEW OF LITERATURE
RESEARCH METHODOLOGY
DATA ANALYSIS AND
INTERPRETATION
ANALYSIS AND INTERPRETATION
FINDINGS, SUGGESTIONS AND
CONCLUSION
BIBLIOGRAPHY