Sai Krishna

A STUDY ON FINANCIAL STATEMENT ANALYSIS
A STUDY ONs
FINANCIAL STAMENTANALYSIS
Of
“INTEGRATED THERMOPLASTICS Ltd, NANDYALA”
A Project Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTAPUR
In partial fulfilment of the requirements
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted By
P. SAI KRISHNA
Regd.No:182P1E0043
Under The Supervision Of
Mr. K. SUJATHA REDDY, MBA
ASST PROFESSOR
DEPARTMENT OF M.B.A
CHAITANYA BHARATHI INSTITUTE OF TECHNOLOGY

(Approved By AICTE & Affiliated to JNTUA, ANANTHAPURAMU)
VIDYANAGAR, PRODDATUR (M), Y.S.R (DT), A.P.
PHONE.NO:08564-278000, FAX NO: 08564-27844
(2018-2020)
Chaitanya Bharathi Institute of Technology Page 1

DECLARATION
I here declare that the project report entitled “A STUDY ON FINACACIAL STATMENT
ANAYALYSIS OF INTEGRATED THERMOPLASTICS LIMITED, NANDYALA” submitted by me
in partial fulfilment for the requirement for the award of degree of MASTER OF BUSINESS
ADMINISTRATION (2018-2020) of JNTU-A, Ananthapuramu and has not been submitted previously
in part / full to any university or institute
Date:
Place: proddatur
P. SAI KRSIHNA
(Regd. No: 182P1E0043)

CHAITANYA BHARATHI INSTITUTE OF TECHNOLOGY
Vidyanagar, Proddatur -516360,

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION
CERTIFICATE
This is to certify that the project work entitled “A STUDY ON FINANCIAL STAMAENT
ANALYSIS OF INTEGRARED THERMO PLASTICS LIMITED.,NANDYALA.” is a bonafide
work done by P. SAI KRISHANA (Regd.No:182P1E0043) Submitted to CHAITANYA BHARATHI
INSTITUTE OF TECHNOLOGY, PRODDATUR in partial fulfilment of the requirement for the
award of degree of MASTER OF BUSINESS ADMINISTRATION. The work reported here is does not
form part of any other theses on which a degree has been awarded earlier.
This is to further certify that they have worked for a period of one semester for preparing their
work under our supervision and guidance.
INTERNAL GUIDE HEAD OF THE DEPARTMENT

Mrs. K. SUJATHA REDDY
(M.COM)
M.B.A Mrs. R.UMADEVI, M.B.A(Ph.D)
Assistant professor Associate Professor
EXTERNAL EXAMINER

Date: 28-06-2020
TO WHOOM SOEVER IT MAY CONCERN
This is to certify that Mr./Miss. P. SAI KRISHNA, Reg., No:182P1E0043, a student of
M.B.A from “Chaitanya Bharathi Institute of Technology- Proddatur”, has done project
work on “A Study on Financial statement analysis” in our Organization from 15.02.2020
to 31.03.2020.
Corp. Office: Plot No. 188 Phase-II Regd. Office: Survey No 375
Kamalapuri Colony, Hyderabad – 500073 T.S INDIA. Manoharabad, Toopran Mandal
e-mail: hr@nandigroup.in Dist. Medak – 502334. T.S INDIA
Web: www.integratedthermo.com.

CIN: L25209TG1994PLC016939
ACKNOWLEDGEMENT
It has been a great pleasure and matter of pride to be associated with gentlemen who are industrious
commuted and involved in every activity.
I owe my special thanks to Mr. P.SREENIVASAN, ACCOUNTS MANAGER who has permitted
to do the project. They gave required support and time to complete my project successfully for which I
remain grateful.
I Thank to Sri. V. JAYACHANDRA REDDY, Chairman of CHAITHANYA BHARATHI

INSTITUTE OF TECHNOLOGY, PRODDATUR, for making it convenient to have undertaken a
project.
I Thank to Sri Dr. G.SRINIVASULU REDDY, M.TECH, (Ph.D) principal CHAITHANYA

BHARATHI INSTITUTE OF TECHNOLOGY, PRODDATUR, for making it convenient to have
undertaken a project.
I am very much thankful to Mrs. R. UMADEVI, HOD, (Ph.D) Dept .of management studies, CBIT,
for their kind co-operation and guidance throughout the project.
Encouraging advice and words of wisdom when things seemed to go away Mrs. K.
SUJATHA REDDY, M.B.A DEPT, Asst. Professor helped me, my project objective and matches
the time and resource framework; I thank him for his valuable support and guidance throughout the
project.
I will remain always indebted to my parents and my friends for their moral support and have been the
most caring and the best critics during the course of my project.
I express my deep sense of gratitude to all my friends and well wishers for their co-operation in
completion of my project

ABSTRACT
This work deals with the financial analysis of a company .The purpose of this thesis
was to asses the financial situation of the company by using various tools of
financial statements analysis in order to recommend necessary precautions for
company’s economic improvements. The whole work consisted of two parts:
theoretical and analytical. The first part described the information and methods of
financial statements analysis as well as its users. The second section contained
basic information about the company and numerous financial analysis, there are
some proposed recommendations to improve the company’s financial situations.
Financial statements are set of formal records that is used as a main source in
analysing financial statements. There are three primary financial statement:
Balance sheet, Income statement, Statement of cash flows

Literature Review
Literature Review was done by referring previous studies, articles and books to
know the areas of study and analyze the gap or study not done so far. There are various
studies were conducted relating to operational performance of the company from which
most relevant literatures were reviewed.
Peeler J. Patsula (2006), he define that a sound business analysis tells
others a lot about good sense and understanding of the difficulties that a company will face.
We have to make sure that people know exactly how we arrived to the final financial
positions. We have to show the calculation but we have to avoid anything that is too
mathematical. A business performance analysis indicates the further growth and the
expansion. It gives a physiological advantage to the employees and also a planning
advantage.
I.M.Pandey (2007), had stated that the financial statements contain information
about the financial consequences and sources and uses of financial resources, one should be
able to say whether the financial condition of a firm is good or bad; whether it is improving or
deteriorating. One can relate the financial variables given in financial statements in a
meaningful way which will suggest the actions which one may have to initiate to improve the
firm‟s financial condition.

INDEX
S.NO CHAPTERS TITLE NAME PAGE

NO.s
1 CHAPTER 1
INTRODUCTION 01-04
2 CHAPTER 2 INDUSTRY AND COMPANY PROFILE

2.1 INDUSTRY PROFILE 05-10
2.2 COMPANY PROFILE 11-20
2.3 PRODUCT PROFILE 21-23
3 CHAPTER 3 RESEARCH METHODOLOGY 24
3.1 NEED OF THE STUDY 25
3.2 OBJECTIVES 25
3.3 SCOPE OF THE STUDY 25
3.4 LIMITATIONS OF THE STUD 26
3.5 SOURCES OF DATA COLLECTON 26
-4 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 27-37
5 CHAPTER 5 FINDINGS & SUGGESTIONS 38
6 CHAPTER 6 CONCLUSION 40
7 ANNEXURE 41-43
BIBLIOGRAPHY 44

CHAPTER-1
INTRODUCTION
MANAGEMENT:
“ The directors and managers who have the power and responsibility to make decisions to manage an
enterprise. The size of the management can range from one person in a small organisation to hundreds or
thousands of managers in multinational companies. In large organisation the board of directors formulates
the policy which is then implemented by the chief executive officer. Some business analysts and
financiers accord the highest importance to the quality and experience of the managers in evaluating an
organisation’s current and future.
 Planning
 Organizing
 Staffing
 Directing And
 Controlling
“Management” is a wide term, it carried different meanings depending on the context in which it is used.
It is described as an “activity”, a “progress” and a “group of people” vested with the authority to make
decisions.
FUNCTIONS:
1.Planning:
It is the basic function of management. It deals with chalking out a future course of action and deciding in
advance the most appropriate course for achievement of predetermined goals. According to KOONTZ , “
planning is deciding in advance-what to do, when to do &how to do. It bridges the gap from where we are
&where we want to be”. A plan is a future course of action. It is an exercise in problem solving & decision
making.
2.Organizing:
It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals. According to HenryFayol, “To
organize a business is to the organizational structure.
3.Staffing:

It is the function of managing the organization structure and keeping it manned. Staffing had assumed
greater importance in the years due to advancement of technology, increase in size of business, complexity
of human behaviour etc. The main purpose of staffing is to put right man on right hon i.e., square pegs in
square holes and round pegs in round holes. According to KOONTZ & O’Donnell, “Managerial function
of staffing involves managing the
organization structure through proper and effective selection, appraisal & development of personnel to fill
the roles designed on the structure.
4.Directing:
It is the part of managerial function which actuated the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets of in
motion the action of people because planning, organising and staffing are the mere preparation for doing
the work. Direction is the inert-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has
following elements:
 Supervision
 Motivation
 Leadership
 Communication
5.Controlling :
It implies measurement of accomplishment against the standards and correction of deviation if any to
ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs
in conformities with the standards. An efficient system of control helps to predict deviations before they
actually occurs. According to Theo Haimann ,“Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if necessary, to correct any
deviation”.
INTRODUCTION TO FINANCIAL MANAGEMENT:

In present economy finance is provision of money at the time when it is required. Every enterprise
requires finance to carry operation and to achieve target without adequate finance no enterprise can
possibly accomplish this objective.
Financial management is the managerial activity which is concern with the planning and controlling of
the firm financial resources.
MEANING OF FINANCE:

Finance may be defined as the art and science of managing money. It includes financial service
and financial instruments. Finance also is referred as the provision of money at the time when it is needed.
Finance function is the procurement of funds and their effective utilization in business concern.
DEFINATION OF FINANCE:
According to Khan and Jain. “Finance is the art and science of managing money”.
DEFINATION OF FINANCIAL MANAGEMENT:
“Financial management is concern with the acquisition financing and management of assets with some
overall goal in mind”. -Van Home and Wachowiz
The term financial management has been defined by Solomon, “It is concerned with the efficient use of an
important economic resource namely, capital funds”. -SOLOMON
The most popular and acceptable definition of financial management as given by S.C.Kuchal is that
“Financial Management deals with procurement of funds and their effective utilization in the business”.
-S.C.KUCHAL
Howard and Upton. Financial management “as an application of general managerial principles to the area
of financial decision-making.
OBJECTIVES OF FINANCIAL MANAGEMENT:

The financial manager main aim is to use business funds in such a way that the firms value for
earnings are maximized. The main objective of a business is to maximize the owners economic welfare.
This objective can be achieved
Profit maximization
Wealth maximization
1.PROFIT MAXIMIZATION: A business being an economic institution must earn profit to cover its
costs and provide funds for growth. Profit is a measure of efficiency of business enterprise arguments in
favour of profit maximization.
2.WEALTH MAXIMIZATION:
It is a single substitute for a stock holders utility. When the firm maximizes the stock holders wealth the
individual stock holder can use this wealth to maximize the single individual utility.
3.FINANCIAL FUNCTIONS:
The finance functions can be divided into three board categories.
 Investment or long-term asset mix decision.
 Financing or capital mix decision.

 Dividend or profit allocation decision.
 Liquidity or short-term asset mix decision.
1.INVESTMENT DECISION:
Investment or capital budgeting involves the decision of allocation of cash or commitment of
funds to long-term assets, which would yield benefits in future. It involves measurement of future
profitability, which involves risk,because of uncertain future. Investment proposal should therefore
be evaluated in the terms of both expected return and risk.
2.FINANCING DECISION:
Financing decision is the second important function to be performed by the firm. Broadly, It must
decide when,where, and how to acquire funds to meet the firm’s investment needs. It has to
determine the proportion of debt and equity. This mix of debt and equity is known as the firms
“Capital Structure”.

CHAPTER-2
INDUSTRY PROFILE AND COMPANY PROFILE
Industry Profile
Established in year 1993, we, “ITL Industries Limited”, are an ISO 9001:2008 certified involved in
manufacturing, supplying and exporting Band Saw & Band Saw Blades, Hydraulic Power Hacksaw,
Special Purpose Metal Sawing Machines and Tube Mill. The products offered by us are
manufactured under the guidance of experienced professionals, who strictly follow the established
norms and standards of the industry. Also, our experts rigorously examine these products on different
parameters of quality and then forward for the final dispatch to the clients. Also, we are engaged in
rendering After Sales Services to the clients across the region.
We are backed by a team of experienced professionals, who are appointed after a rigorous process of
selection. Masters of their respective field of work, these professionals utilize the available resources to
the fullest extent, which results in developing a quality range of products. Also, our professionals
maintain a cordial relationship among themselves, so as to attain the organizational goals with
perfection and ease. These professionals ensure that the products offered by us reach to the customers
within the promised time period. Factors like superior quality products, market leading prices, ethical
trade practices and client centric approach, we have gained the faith of customers like Mishra Dhatu
Nigam Limited (MIDHANI), Nuclear Fuel Complex (NFC), Bharat Heavy Electrical Limited
(BHEL), Steel Authority of India Limited (SAIL) and many more across the world.

Under the tutelage of our mentor, we have marked a distinct position for ourselves in this highly
competitive market. His detailed knowledge, constant inspiration, vast experience of the industry and
leadership quality have enabled us to gain the confidence of customers based of Indian Subcontinent,
North Africa, South/West Africa, East/Middle Africa, South East Asia, Middle East & East Asia.
Plastics have become synonymous with living it is undoubtedly a product, which has penetrated
extensively into the common man’s life. No wonder the industry has achieved in terms of supply of raw
materials, expansion and diversification capacities and manufacturing of procession machinery and
ancillary equipment.
PIPES IN INDIA:
Chief occupation in India is agriculture. For the developing country like India, modernization of the
agriculture practices has a pivotal place in improving the economy states and the process of
modernization includes usage of high productive tools and agriculture practices. By using pipes, water
can be transported efficiently with lesser no wastages, from the place where there is plenty of water
available to the place where there is no less scarcity necessity of water. Pipes have been manufactured
in India from the 1960’s on imported lines and thereafter indigenous plans were also established. There
are few pipe manufactures up to 1978 to 1979 and production capacity was increased rustically during
1979 – 1983 Cement pipes were the conventional pipes used for irrigation in the lift irrigation schemes.
Now a day’s PVC pipes replaced the conventional pipes and they constitute almost 90% in the respect
(because of breakdowns, difficulty in immovability etc.). The use of polymer Vinyl Chloride pipes in
agricultural fields has lessened the water seepage which was predominant in earlier days.
PVC pipes, Poly Vinyl Chloride pipes:
have become synonymous with modern living. It is undoubtedly a product which has deeply
penetrated into common man's life. No wonder the industry has achieved remarkable progress in terms
of supply of raw materials, and diversification of processing capabilities and manufacturing of processing
machinery and ancillary equipments sophistication.
This versatile material with superior qualities such as light weight, easy processing, corrosio
resistance, energy conservative, non-taxis etc. may substitute to a large estimate of many conventional
and costly industrial materials like wood, glass, metal and leather etc. In the future the manifold
applications of plastics in the field of automobiles, electronics, electrical, packaging and agriculture give
its immense utility in PVC plastics.
At present as percent of total requirement of raw material and almost all types of plastic machines
required for the industry are not adequately available. The present investment in all the three segments
of industry namely, production or raw materials, expansion and diversification of raw materials,
expansion and diversification of processing capacities, manufacturing of processing machinery.
Equipment is 1250 corers and it provided employment at more than 8 lakh people. Plastics have been
subjected to levies not only at the central level but also at the state and local governments. These levels
have affected the price of the plastic products adversely. The per-capita consumption of plastics is very
low at 0.5kg, as against the world average of 11kgs. The per-capita consumption is 68kgs in FRANCE,
33kgs in U.K. and even in Asian countries like SOUTH KOREA, it is 8.5kgs.

On account of their inherent advantage in properties and versatile in adoption and use, plastics have
come to play a vital role in a variety of applications the world over. In our country plastics are used in
marking essential consumer goods which are of daily use for common man. Such as baskets carry bags,
bottles, pipes, pens, chairs etc.. They also have applications in Agriculture. Building constructions, water
management resources engineering and electronics.
The government of India recognized the importance of plastics in agriculture appointed on March 7th
1981 a national committee on the use of plastics in agriculture under chairmanship of Dr. G.V.K.Rao. The
committee has forecast a treatment as fright of drip irrigation through a net work of plastic tubes and
pipes. In its origin large scale adoption of irrigation would lead to support in demand for P.V.C.Pipes LDPE
tubes and play proper by lane emitters. The committee made a number of recommendations for
promoting the use of plastics. The implementation of the recommendations would so a long way is
increasing the consumption of plastics, which at present is very low.
The committee has highlighted the importance of use of PVC resin is the manufacture of rigid pipes,
flexible pipes and sheets which are being used for FUNDSFLOW STATEMENT C.B.I.T PRODDATUR Page 11
agricultural operations to carry water from place to place and living of panels and reservoirs to reduce
sweepers and most important in drip irrigation sequence. A breakthrough had already taken place in the
field of channel lining with poly urethane in the state of Gujarat, Madhya Pradesh, Punjab and Haryana.
The irrigation departments in these states have taken concrete steps to incorporate canal living with
LDPE (low density) pipes on priority basis.
Another variety of plastics that requires artificial manufacturing relates to true engineering plastics
which is used as an alternative to (or) replacement of metals in load needing applications.
Modified P.P.O. Nylon, Polycetal, and Poly carbonates, polyester (PBT/PET) phendic are some of the
plastic materials following under the category of engineering plastics.
Engineering plastics are being increasingly used for various applications in automatic, electronic,
telecommunications and other industries. The plastics are classified into two classes.
• Thermo Plastic
• Thermostats
Thermo Plastic:
The thermo plastics become sufficiently soft as the applications of heat. The thermostats are the initial
application of heat and pressure subjected to fire, but upon further application of heat and pressure they
are cured to heat and pressure. They are cured to hard moulded piece which cannot be resofted by
reheating.
LDPE: Low Density Poly Ethylene
Production of LDPE was started in the year in 1995. at present there are 3 units manufacturing LDPE
with a total capacity of 1.15 lakh tones. Products targeted of LDPE by the end of 1999 is placed at 1.86
lakh tones.

HDPE: High Density Poly Ethylene
Production of HDPE in India commended in 1968, at present there is a unit (Play Defines Industries
Ltd.,) in India, producing HDPE by the end of 1989-90 was producing 1.25 lakh tones.
PVC: Poly Vinyl Chloride
Production of PVC started in 1961, against first production of PVC in the world, 1927. at present there
are 6 units manufactures PVC resins. The total installed capacity comes to 1.7 lakh tones. The production
target of PVC by the end of 1989- 90 is placed of 2.33 lakh tones.
Polystyrene:
Polystyrene was first manufactured in India in May 1987. The production target of polystyrene by the
end of 1989-90 was set out to 29,000 tones.
Poly propylene:
The first production of poly propylene in India commenced in 1978. A production target of 36,000 tones
is achieved by the end of 1993-94.
Problems:
Raw material is always been a problem to be recorded with the plastic industry. The situa
tion was slightly improved recently and is expected to charge considerably by commissioning the major
petrol chemical project in the line by the year 1990.
The Maharastra Gas Crackers complex, Haldia Petrol Chemicals and Reliance Petro chemicals together
with the expansion of existing giants will go a long way to mitigate these long study problems. By the
terminal year of the plan, the installed capacity targeted in almost 8 lakh tones
The steep rise in the raw materials as a result of imposition of duties and taxes poses another problem
to the plastic industry. On account of this domestic price of finished goods are higher than the rest of
world. Apart from this, the administered pieces for the basic raw materials have not been implemented
with a balanced view to accommodation the interests of both consumers and manufactures. The feed
stocks for petro chemicals industries are napritna, alcohol and calcium chloride, 85% for the polymers
are made from naphtha feedstock. Hence the pricing naphtha by the government has a cascading effect.
Export of the Plastic Goods:
Plastics have been excellent potentialities. Our country equipped with all kinds of processing machines
and skilled labour and undoubtedly, an extra effort to boost export finished plastic goods will yield rich
dividend.

Today India exports plastic product to as many as 80 countries all over the world. The exports, which
were stagnant at around Rs 60-70 crore per annum doubled to 129 crore in early 1990's in 1991-92
plastic industry has taken up a challenge of achieves export target of 250 crores. Major export markets
for plastic products and usage are Australia, Bangladesh, Canada, Egypt, France, Holland, Italy, Hong, Sri
Lanka, Sweden, Taiwan, U.K., U.S.A. and Russia. With a view to boosting the exports, the plastics and
linoleums, export promotion council has requested the government to reduce import duty on plastic raw
materials supply of raw materials at international process, fix duty free backs in weighed average basis
and charge freight rate on plastic products on weight base interested of volume basis.
Prospects:
The production of various plastics raw materials the country is expected to double by the end of the
seventh five year plan. When the PCS's capacity expansion programmed is completed as well as the new
plants by other manufacturers like PIL.
Century ,Reliance are set up during the period, the consumption of commodity plastic including LDPE,
HDPE, PP, PS and PVC is expected to touch the one million tones mark by 1989-90. There is immense
scope for the use plastics in agriculture, electronics, automobile, telecommunication, irrigation and thus,
the plastic industry is on the threshold of an explosive growth.
Role of Plastics in the National Economy:
Plastics are get perceived as just simple colorful house hold products in the minds of common man. A
dominant part of plastics of present and future improved their utilization in the following areas.
➢ Agriculture, Forestry and Water management
➢ Automobiles and Transportation
➢ Electronics and Telecommunications, Building
➢ Construction and Furniture especially wood substitutes
➢ Food processing and packing
➢ Power and Gas Distribution
IMPORTANCE OF PIPES INDUSTRY

We shall look at the basic data about plastics and particularly those properties, which are so, fuse in
practical working with plastics. Plastics are manmade materials. The oldest raw materials. The oldest
material for producing plastics is carbonaceous material obtained from coal tar (benzene, phenol).
Today the majority of raw materials are obtained from petrol chemical source and they can be
economically produced in large quantities.

Plastics have changed our world and day-by-day they are becoming important. They own their success
to whole series of advantage, which they have over conventional materials such as:
➢ Lightweight
➢ Excellent mould ability
➢ Attractive colours
➢ Low energy requirements for convention
 Low labour and cost of manufacture
➢ Low maintenance & High strength weight ratio
Economic role:
Agriculture is the chief occupation in India. For the developing countries like India modernization
of the agriculture practices assumes pivotal places in improving the economic status and the
process of modernization. Includes usage of higher productive plastics supplement to greater
extent manufacturing of tools required for new agricultural practices.
The usage of poly vinyl chloride pipes in agricultural fields, lesser water seepage, which was
predominant in earlier practices, with services of P.V.C pipes, water can be transported
efficiently with lesser from the place of higher potential to the place of lower water potential.
Presently the revolutionary tried in water management speaks much about drip irrigation, which
is developed in Israel and is practiced by all agricultural based nations in the world. Drip irrigation
greatly P.V.C pipes as core tools of implementation with the services of this sort, P.V.C pipes one
way or the other strengthening the hands of country’s economy. A part with the referred P.V.C
pipes supplemented with fitting is used in houses for electrical connection and other domestic
purposes. Apart from these two applications it has got wide applications even in industrial
sectors. P.V.C pipes with much unique heart, chemical and physical characteristics serve many
industrial purposes. Even characteristics of weight and low price attract many more applications.
Rigid PVC pipes have been manufactured in India from the 60’s on imported extrusion lines and
there after indigenous plan were few pipes manufactures up to 1979-83. When many extrusion
lines were imported from batten field, Cincinnati, kraaus-maffi etc. the Govt. allowed the imports
of sophisticated and high output plants, which were not available indigenously.
PVC PIPES IN INDIA:
Pipes products have found wide acceptance in India and abroad. PVC is one of the more
versatile plastics. It can be extruded, molded, calendared and thermoformed into a multitude of
furnished products. The PVC resin can be formulated to give a wide range of properties ranging
from hand, tough materials for load bearing application lime pipes, windows and doors to
flexible materials for products a due as wire and cable insulation and shooting and flooring. PVC
products cater to both interiors and exteriors. In interiors it can be used for flooring, profile and

cable tray, wall covering modular office systems, houses and furniture. For exteriors it is used for
doors and windows, fencing partitions and paneling, roofing and rain systems.
2.2 COMPANY PROFILE
Nandi pipes (ITL pvt.) ltd. Nandyal was incorporated in the year 1998. It is located in the
industrial estate, Nandyal. The Company has "Rani Plastic Pipe Industry "as its sister concern in
the manufacture of PVC pipes. This company is promoted by the managing director Mr. S.P.Y.
Reddy, BE, (Mech) who has decades of experience in the manufacturing industry.
The company has 3 main PVC pipes brands. They are "Nandi", "Sujala" and "Rani". But the
flagship brand is "Nandi Pipes". The name "Nandi" derives from the historical aspects of this
town, Nandyal. The Brand name "Nandi Pipes" as taken from the pilgrimage place called
"Mahanandi" which is 15 KM from Nandyal. The company has diversified in to various fields in
the in the recent past. Apart from manufacture of PVC pipes, which is the main flagship, they are
also in the manufacture of mineral water under the brand name "Nandi Mineral Water". Dairy
products "Nandi Diary" which supplies regularly milk to the people of Nandyal and Villages in and
around Nandyal.
The company rightly thinks that there is an inseparable relation between education and
business. Managing Director, Mr.S.P.Y Reddy encouraging women to educate by establishing
women's college in Nandyal. Pipes(ITL) also gone for expansion programmed. They have taken
over "monarch pipes" good source of employment to the people who are at both workmen level
as well as administrative level.
Nandhi pipes (ITL) which was once upon a time a sole manufacture of plastic goods now
branched into many companies. Their turnover touched a remarkable figure nearly Rs.30 corers
in the year 1999-2000.
As the main objective in stating this industry was to cater to the needs of facilitate water flow in
this area which lacks rainfall and to use the water resources productively. This helps the farmers
in lifting the ground water to the surface as well free flow of the water as an and when
necessary.
Initially the industry was producing polythene pipes (Black Pipes), and PVC (Poly Vinyl Chloride)
pipes were introduced under the same brand name later in 1984-85. The growth of PVC industry
in Rayalaseema area of A.P. has seen rapid growth in the early 90's The company also produces
PVC fittings. In short it can be concluded that the company enjoys 95% of South Indian market
have in the PVC pipes industries. One of the credible things that the company does is free offer
of transportation to the door steps of the customers when he purchases 100 or more pipes.
The company also provides free breakfast, free lunch and free dinner to their employees at
factory's canteen. The management of the company known as "Nandi group" was bestowed with
another company in to their cap known as "Indian thermo plastics Ltd", Hyderabad. The
company also has manufacturing unit at Beeder, Karnataka. The company also has
manufacturing unit at Beedar, Karnataka. The company which has its head quarters at Nandyal
also started "Nandi Super Market", which offers concessions to their employees. The company
also provides free medical facilities to the employees. Nandhi pipes (ITL) Pipes also involved in
social activities by providing free water supply to the needy people. Company organizes free
medical camps to the poor people. It also gives loans to unemployed youth in fulfilling their
career objectives.
PRODUCTION CAPACITY:-
Production Capacity of 22,200 metric tons per annul.
Nandi rigid PVC at a glance:
Colour : Light Gray
Length : 6 Meters
Pressure Rating : 2.5 Kg., 4Kg, 6Kg, 10Kg, & 15 Kg/cm*cm.
Range Available : 20mm to 400mm O.
Manufactured with ISI mark is 4985: 2000
STEEMED CUSTOMERS:
Nandi Pipes are proud to present list of customer, which includes big water pipe line projects,
dot projects panchayati Raj and industrial development corporation. Etc.,
❖ SatyaSai water schemes

❖ Lorhen Project
 NABARD Water Schemes
❖ Karnataka Land Army Department
❖ And also we undertake turkey projects for pipelines.
GROWTH AND DEVELOPMENT OF THE ORGANIZATION:
The nandhipipe ITLPrivate Limited to record an excellent growth from 19onwards.
1977– 1975 Nandyal Region (Polythene Pipes)

1984 – 1985 P.V.C. Pipes Rayalaseema Region.
1985 – 1987 Rayalaseema, Telangana Region.

– 1988 Andre and Karnataka Region.
1989 – 1990 Andre, Tamilnadu and Karnataka States.
1990 – 1992 Andre, Kerala and Karnataka States.
Sizes:
Various sizes ranging from ½ to 10 are offered to Customers. But for the purpose of cubic space
utilization in truck while transport organization is adopting the technique like pipe in pipe.
Payment Period:
The Company adopts zero credit policy and goods are not delivered unless cash remittance is
made. The same policy is also applicable to authorized dealers of Nandhi Pipes Private Limited.
TECHNICAL DETAILS ABOUT PVC PIPES:
PVC Resin
D.B.L.S.
T.B.L.S.
L.S. C.S.
Static Acid
Hydro Carbon
Calcium Carbonate
Titanic Dioxide.
FUNCTIONAL DEPARTMENT OF THE COMPANY:-
Financial Department:
Though initially the company approached the external sources for financial aid, now the
financial status of the company is very sound and is being run only with selffinance except the
loans taken on hypothecation of machinery and stock from S.B.I. Nandyal and Karur Vysya Bank,
Nandyal.
The Financial Departments is headed by the Financial Manager with the help of four
Accountants and other Clerks of the Department. The company follows cash & carries policy. The
product is not delivered until the cash is paid and these transaction are look after financial
department with the help of marketing department.
Marketing Department:

Executive Director heads Marketing Department. Marketing Manager is in charge of all the
operations who reports to Executive Director. Marketing Manager and 35 Sales Representatives
are under immediate control of Executive Director. There are also 20 Salesmen who have to
report to the sales representatives above FUNDSFLOW STATEMENT C.B.I.T PRODDATUR Page 20
them.
Personnel Department:
The Personal Department consists the details of the Executives and Workers of the
Organization. The organization in formed with Sri.S.P.Y.Reddy. The General Manager of Executive
Director who reports to Managing Director. Two Marketing Managers. Financial Manager, Public
Relations Officer and Quality Control Officer who all Reports to Executive Director. Other than
Executives there are 1,500 Workers in the organization. Panel consisting of Managing Director,
Executive Director, General Manager and Managers of concerned department makes the
Recruitment and selection. Apart from the attractive salaries company provides meals and health
care facilities.
Purchasing Department:
The Perplexing situation that is confronted by the Manufacturer of the PVC Pipes is Scarcity of
resin. Though the Government of India has taken various steps to improve Supply Conditions of
PVC resin, the Indian Manufacturers could meet only 50% of demand and remaining 50% is met
from imports.
The Major Petrochemical Companies are:
Sri rams Vijay Limited.
Chem. – Plastic Limited.
Reliance Petro Chemicals Ltd.,
National Organic Chemical Industries Ltd.,
Finale
India Petro Chemical Industries Ltd.,
The lead – time for the acquisition of raw material is 4 days.
HUMAN RESOURCES POLICIES AND PRACTICES:

The following lines are highlights the human resources policies and practices.
Effective Utilization of Manpower To provide good working condition.
To promote industrial development.

3.1.7 Nandi Group of Organizations:
1. Sujala Pipes Private Limited, Nandyal.
2. Sri Kant Water Containers, Nandyal.
3. Mahanandi SWR Fitters, Nandyal.
4. Nandi Solvent Cement, Nandyal.
5. Mahanandi Mineral Water, Nandyal.
6. Nandi Milk Dairy Products, Nandyal.
7. S.P.Y.Reddy Educational Institutions, Nandyal.
3.1.8 DETAILS OF NANDI PVC PIPES:
PIPES DIAMETER CLASS FLOW

RENGE
CLASS PRESSUR
LITTERS
E
MM INCHES /SEC
20 0.5 5 10 0.07-0.13
25 0.75 5 10 0.13-0.25
32 1 5 10 0.25-0.50
40 10.25 3 6 0.50-1.00
50 1.5 3 4 1.00-1.80
63 2 2 4 1.80-3.00
75 2.5 2 4 3.00-5.00
90 3 2 4 5.00-15.00
110 4 2 4 8.00-15.00
140 5 2 4 15.00-20.00
160 6 2 4 20.00-30.00
180 7 2 4 30.00-40.00
200 8 2 4 40.00-50.00
225 9 2 4 50.00-60.00

250 10 2 4 60.00-70.00
HDPE PIPES:
SALIENT FEATURES OF NANDI HDPE PIPES:
 Manufactured as per ISI 4948: 1995 onwards

Pipes are manufactured either in long coils or 6 meter length
Best Quality pipes at most reasonable prices.
Pipes that meet your needs.
Special customer requirements are accepted
 STANDARD PIPE COIL LENGTHS OF VARIOUS SIZES:
Pipe Size Available Coil Length

20 -25mm 1000mtrs.
30-40mm 600mtrs
50mm 400mtrs
63-75mm 300mtrs
90-100mm 50mtrs
125mm&above 12&mtrs(single lrngth)
WHAT NANDI OFFERS YOU...?
 Our job goes beyond just selling pipes, as we are committed to the complete customer service.
 We take up pipeline projects on ‘TURNKEY’ basis.
 We offer HDPE pipes solutions in place of conventional pipes (PVC, GI, Concrete etc.,) at
competitive prices guaranteed service.
 We provide water lines for agricultural needs with free but jointing and testing.
 We extend service free of cost any future leakages / defects in the pipe line caused by faculty
manufacturing or faulty jointing for a period of 20 years.

 We offer proclaim facility (for earth work) to farmers who buy minimum 100 lengths (6mtrs
length) at concessional rates.
Physical and Chemical Properties of Nandi HDPE Pipes:
 More Flexible
 Light in Weight
 Corrosion Resistant
 Economical
 Smooth inner and outer finishing resulting in low flow resistance and low power consumption.
 Availability of pipes in long coils reduces much of the cost of laying. Jointing and additional
couplers.
APPLICATIONS OF NANDI HDPE PIPES:
 Agriculture and Drinking water lines.
 As delivery pipes for single phase & 3 phase submersible pumps.
 As suction and delivery pipes for jet pumps
 As suction and delivery for centrifugal &monoblock pumps
 Asdelivery pipe for open well submersible pumps.
 Telecom& Electrical ducting.
 Slurrydisposal.
 Industrial Flowapplications.
 Sewage Pipe Systems.
ORIGIN:
Rayalaseema, economically backward part of the Andhra Pradesh (state) was has been identified fro-

rapid industrialization to boost up the economic level of the region. Nandyal Town in Rayalaseema
was industrially developed by the dynamic entrepreneur Sri.S.P.Y.Reddy, who is basically a
Mechanical Engineer, by setting up an Unit at Nandyal and manufactured black pipes in 1977. His
determination and hard work has helped to him in overcoming the problems faced in the initial years.
With the financial assistance by the local commercial banks.
Later he started a manufacturing of black pipes. This resulted in the formation of a private limited
company called “Sujala Pipes Private Limited, by S.P.Y.Reddy as the Managing Director and group
promoter. He got financial assistance and Institutional assistance, which motivated him to setup a unit at
Nandyal. With a great hope and expectations he has started production PVC Pipes for improving the
water transport system.
Nandi Pipes, which are famous all over the country, stand for testimony to Zeal, Perseverance, and hard
work and for sighted vision of the one individual. He is Mr.S.P.Y. Reddy, the Founder and Managing
Director and eminent techno entrepreneur and excellent mechanical engine. He left his plum job at bar
to bring to dynamism and energy and aspirations started manufacturing of LDPE Pipes and later
switched to PVC achieving incomparable success.Nandhi Pipes Private Limited is the Manufacturing of
the largest and most comprehensive range of UPVC Pipes in India.
ORGANISATION STRUCTURE OF NANDI BRAND PIPES PVT LTD.

BASIC DEFINITION:
1. Cost of debt=Interest/Market value DebtX100
(1) PVC (Poly Vinyl Chloride) (2) Tri Basic Lead Sulphate (TBCS)
(3) Doe Basoc Lead Sulphate (DBLS) (4) Calcium Steric
(5) Lead Steric (6) Calcium carbonate (CaC03)
(7) Titanic Dioxide (8) Steric Acid
(9) Wax
The above materials are mixed in fixed proportion in a big container and they get processed in to a
solidified product. Immediately pipes of various diameters are manufactured by using various moulds.
Once the pipes are manufactured, they will be shifted to warehouses. As and when the requirement comes,
they will be dispatched to the destinations.

2.3 PRODUCT PROFILE

PVC PIPES:
Apollo PVC Pipes are manufacturers according to IS : 4985-2000. uPVC Pipes as per IS : 4985 being
used in all conceivable applications ranging from ranging from Agriculture to sanitation, bore well to
electrical ducts because of low cost, low pressure features they became favorites of all farmers, builders
and government department.
RING FIT PIPES:
Features and Specifications;
 Convenient push-fit joints.

 Saves manpower.
 Jointing can be done during any time of the day under any weather conditions.
 Faster installation, immediate pressure testing and commissioning possible.
 Joints accommodate expansion and contraction.
 Joints are resistant to soil movement due to earthquake effects.
 The Elastomeric rings have properties matching to Pipe with long shelf life.
 Available as per IS-4985, ISO-4422-2 and DIN-8062.

 Available in sizes & pressure classes shown in the table in Green colour.
SELF FIT / SOCKET FIT PIPES:
Features and Specifications:
 Manufactured from high quality PVC compound.

 Excellent corrosion and chemical resistance to most acidic and alkaline solutions.
 Light weight.
 Easy to handle and transport.
 Excellent flow characteristics.
 Smooth inner wall minimizes frictional losses and scaling due to precipitation.
 Available as per DIN-8062, IS-4985 and ISO-4422-2.
 Also manufactured to BS-3505/3506 and ASTM D1785-84 on request.
 Available in sizes from 20 mm (½") to 560 mm (20") as per above standards.
 Commonly supplied in 6 m lengths with plain ends or socketed at one end for solvent cement weld
(Any other pipe length can be supplied on request).
CASING PIPES:
Specifications:
 Maximum ambient temperature : 70° C

 Maximum installation depth - 80m to 250m
Installation:
 Vertical, Horizontal or Inclined
COLUMN PIPES:
The Importance of Latest Boring pipe for Water:
Apollo Pipes has made column pipes from latest technique for boring which is useful for the submersible
pump depth of upto 400 meter.

SWR PIPES & FITTINGS:
Specifications:
The Soil, Waste & Rain Water (S.W.R.) Drainage Systems are the ideal solution for drainage &
sewerage applications, owing to its superior properties compared to conventional drainage systems.
PLUMBING PIPES:
Building Construction
These Pipes are useful for water connections to bathrooms, kitchen sinks, washbasins and laboratories.
 Portable Water Supply:
It can be used in commercial complexes, individual homes, flats, offices, hotels, hospitals and transport
terminals.
 Industrial Applications:
Distribution of milk, chemicals and gases in dairies, plants and industrial estates, in agriculture,
telecommunication, irrigation project.
PLASTIC PIPES:Plastic pipe comes as either ABS (acrylonitrile-butadiene-styrene) or PVC

(polyvinyl-chloride). Most homes since mid-1970 have plastic pipes and fittings because it's
inexpensive and easy to use. Simply glue the joints using a primer and liquid cement.
 ABS: This black pipe was the first plastic pipe to be used in residential plumbing. Today, many areas
don't allow ABS in new construction because joints can come loose. Check with your local plumbing
inspector if you want to use ABS.
 PVC: This white or cream-colored pipe is the most commonly used pipe for drain lines. It's strong,
untouchable by chemicals, and seems to last forever! The rating and diameter is stamped right on the
pipe.

STANDARD NANDHIPIPES ITL PVT (P.V.T)LTD COIL LENGTHS OF VARIOUS

SIZES:
Pipe Size Available Coil Length
20 -25mm 1000mtrs.
30-40mm 600mtrs
50mm 400mtrs
63-75mm 300mtrs
90-100mm 50mtrs
125mm&above 12&mtrs(single length)
CHAPTER – 3
RESEARCH METHODOLY
RESEARCH DESIGN
The research methodology deals with the models and procedures of addressing the problem under
investigation either by quantitative or qualitative techniques in order to arrive at a reliable and accurate
solution.
Research methodology covers issues relating to the sources and types of data needed for the entire
study the variable description, the hypothesis to be tested, the model specification and estimation
techniques, the limitation of the study lastly the A’ prior expectation.

A research design is the specification of methods and procedure for accruing the
information needs. It is overall operational pattern of frame work of project that
stipulates what information is to be collected for source by the procedures.
Descriptive Research design is appropriate for this study.
Descriptive study is used to study the situation. This study helps to describe the situation.
A detail description about present and past situation can be found oust by the descriptive
study.
1.Objectives of the study

 To know financial position of Integrated thermoplastic ltd.
 To study the growth profile of the company during the study period
 To know the changes in the financial statement for the past 5 years.
 To analyse the liquidity position and financial of a company.
 To study the profitability of a company.
 To offer suitable suggestions for improvement in the company.
 To judge the financial health of the firm.
 To show the true and fair view of financial position of the business.
2. Need of the study

 Financial statement analysis is used to identify the trends and relationship

between financial statement item. Both internal management and external
management (such as analysis ,creditors , investors of the financial statement
need evaluate a company profitability ,liquidity ,and solvency. The most common
on method used for financial statement analysis are trend analysis , common size
statement ratio analysis ,comparative statements, cash flow statement and fund
flow statement these methods including calculations.
3.Scope of the study

The study mainly attempts to analysis the financial performance of the company
selected for the study financial statement analysis is a in depth analysis of the
financial aspects of the company carrying out through financial statements analysis
realize huge time and efforts there for only few analysis tools such as comparative
statements common size statements and ratio analysis are used in the study also
the study is contained to the selected company only.
4.LIMITATIONS OF THE STUDY:

 The study is based on the provided by the corporation financial statement records in annual
records so the limitations of the statement equal applicable to the study.
 User must look at the entire picture when using financial stamen analysis.
 Comparability between firms difficult
 External factors will often impact the financial results of a company.
5. SOURCES OF DATA COLLECTION:

SECONDARY DATA

This research is based on secondary data. This means the data are already available, i.e.
the data been already collected and analyzed by someone else.
Secondary data are used for the study of ratio analysis of this company and also its
competitors. To collect the data, company annual report, internet websites has been
used.
Analyzing and interpreting the information available in the financial statements and
drawing meaning full conclusion from them.
TOOLS OF ANALYSIS:
 DEBT EQUITY RATIO
 QUICK RATIO
 LONG TERM DEBT TO TOTAL ASSETS RATIO
 SHORT TERM DEBT TO TOTAL ASSETS RATIO
CHAPTER-4
DATA ANALYSIS AND INTERPRETATON
DATA ANALYSIS AND INTEPRETTATION:

Comparative balance sheet is a balance sheet which provides financial figures of Assets, Liability and
equity for the “two or more period of the same company” or “two or more than two company of same
industry” or “two or more subsidiaries of same company” at the same page format so that this can be
easily understandable and easy to analysis.
The comparative balance sheet has two-column of amount against each balance sheet items; one column
shows the current year financial position whereas another column will show the previous year’s financial

position so that investors or other stakeholders can easily understand and analyze the company’s financial
performance against last year.
COMPARATIVE BALANCESHEET AS ON 31ST MARCH 2014-15
crores amount in rupees

years
Particulars 2014 2015 absolute change percentage(%)
LIBILITIES:

Share capital 23.75 23.75 0 0

reserves and surplus 786.41 841.63 55.22 0.07021
net worth 810.16 865.38 55.22 0.06815
Secured loans 622.42 829.98 207.56 0.33347
unsecured loans 283.56 173.31 -110.25 -0.3888
TOTAL LIABILITIES 1719.11 1868.67 149.56 0.08699
ASSETS: 0
Net block 995.94 955.73 -40.21 -0.04037
Capital work in progress 40.43 27.05 -13.38 -0.33094
Investments 477.71 739.26 261.55 0.5475
Current assets 0
Inventories 320.55 289.73 -30.82 -0.09614
sundry debtors 181.56 220.31 38.75 0.21342
cash and bank 42.05 101.01 58.96 1.40214
loans and advances 427.11 410.98 -16.13 -0.03776
Total Current Assets: 971.27 1022.03 50.76 0.05226
current liabilities: 0
current liabilities: 776.08 838.62 62.54 0.08058
Provisions 65.49 66.87 1.38 0.02107
TOTAL CURRENT
LIABILITIES 841.57 905.49 63.92 0.07595
Net current assets 129.7 116.54 -13.16 -10146
miscellaneous expense 75.33 30.09 -45.24 -0.60055
Total assets 1719.11 1868.67 149.56 0.08699
A
INTERPRETATION:
Compared to both 2014 and 2015years balance sheet there is an increase in the of net worth by 55.22
and it is expressed in percentage of 0.06815. miscellaneous expenses are decreased by 45.24, in the
percent of 0.60055, and compared to previous year that is 2011.totally, an increased made in the value
total assets by 149.56 in 0.8699 percent.

years Absolute change percentage(%)
Particulars 2015 2016
LIABILITIES:
Share capital 23.75 47.51 23.76 1.000042
net worth 865.38 999.41 134.03 0.15487
Secured loans 829.98 565.93 -264.05 -0.31814
unsecured loans 173.31 219.49 46.81 0.266645
1868.6 1784.8
TOTAL LIABILITIES 7 3 -83.84 -0.04486
ASSETS:
Net block 955.73 937.59 -18.14 -0.01898
Capital work in progress 27.05 57.39 30.34 -0.01898
Investments 739.26 661.16 -78.13 -0.10568
Current assets
Inventories 289.73 527.92 238.19 0.82211
sundry debtors 220.31 270.62 50.31 0.22836
cash and bank 101.01 6.01 -95 -0.9405
loans and advances 410.98 464.09 53.11 0.12922
1022.0 1268.6
Total Current Assets: 3 4 246.61 0.24129
current liabilities:
1047.9
current liabilities: 838.62 8 208.36 0.24964
Provisions 66.87 91.98 25.11 0.3755
TOTAL CURRENT 1139.9
LIABILITIES 905.49 2 234.43 0.258898
Net current assets 116.54 128.72 12.18 0.104513
miscellaneous expense 30.09 0 -30.09 -1
1868.6 1784.8
Total assets 7 3 -83.84 -0.04486
INTERPRETATION:
Compared to both 2015 and 2016 years balance sheet there is an increase in the of net worth by
23.76and it is expressed in percentage of 1.00042. the capital work in progress by 30.34 in the percent of
1.1212626. An increased in the total current.net current assets are also increase by percentage of
0.101513. in the year 2014, miscellaneous expenses are decreased when compared to total 2013 yar by
the percent of 1.00, in the value of 30.0.

Particulars years Absolute change percentage(%)
2016 2017
LIABILITIES:
net worth 999.41 1169.3 169.89 0.16999
Secured loans 565.93 356.7 -209.23 -0.36971
unsecured loans 219.49 358.76 139.27 0.63451
TOTAL LIABILITIES 1784.83 1884.76 99.93 0.05598
ASSETS: 0
net block 937.59 1025.57 87.98 0.09383
Investments 661.16 930.92 269.76 0.4807
Current assets 0
Inventories 527.92 584.56 56.64 0.10728
sundry debtors 270.62 234.56 -36.06 -0.13324
cash and bank 6.01 13.03 7.02 1.16805
loans and advances 464.09 299.84 -164.25 -0.35566
Total Current Assets: 1268.64 1131.5 -137.14 -0.1081
Provisions 91.98 106.27 14.29 0.15535
TOTAL CURRENT
LIABILITIES 1139.92 1255.74 115.82 0.1016
Net current assets 128.72 -124.24 -252.96 0.0348
miscellaneous expense 0 0 0 0
Total assets 1784.83 1884.76 99.93 0.5598
INTERPRETATION:
In the year of 2016 and 2017 ,net worth is increased, because of share capital is equal in both years
but reserves and surplus are increased by 169.89 as percentage of 0.178474. total liabilities are
increased by 99.93 as percentage of 05598 in the year 2015, cash and bank balance are increased by
7.02 as in the percentage of 1.168053.

years Absolute change Percentage (%)
LIABILITIES:
net worth 1169.3 1224.67 55.37 0.04735
Secured loans 356.7 275.42 -81.28 -0.22786
unsecured loans 358.76 270.44 -88.32 -0.24618
TOTAL LIABILITIES 1884.76 1770.53 -114.23 -0.0606
ASSETS:
Net block 1025.57 1011.48 -14.09 -0.01373
Investments 930.92 868.84 -62.08 -0.06668
Current assets 0 0
Inventories 584.56 509.66 -74.9 -0.12813
sundry debtors 234.56 300.52 65.96 0.22111
cash and bank 13.03 17.45 4.42 0.33921
Total Current Assets: 1131.5 1202.86 71.36 0.06306
Provisions 106.27 106.59 0.32 3.01119
TOTAL CURRENT
LIABILITIES 1255.74 1348.74 93 0.07405
Net current assets -124.24 -145.88 -21.64 -0.17417
miscellaneous expense 0 0 0 0
Total assets 1884.76 1770.53 -114.23 -0.0606
INTERPRETATION:
In the year of 2016 and 2017 there is no change in the share capital values based on the comparative
balance sheet methods in the value of total current assets ,there is an increased by 75.39 and it is in the
percent of 0.25143. company total assets are decreased, compared to 2015 year by 114.23 as 0.06060
percentages. Companies ’total assets are lower than the current liabilities by 21.64 in the percent
of0.17417; it indicates operating expenses are high.

years Absolute change Percentage (%)

LIABILITIES:
1177.1 1367.7
reserves and surplus 6 7 190.61 0.16192
1224.6 1415.2
net worth 7 8 190.61 0.15564
Secured loans 275.42 212.26 -63.16 -0.22932
unsecured loans 270.44 263.62 -6.82 -0.02521
1770.5 1891.1
TOTAL LIABILITIES 3 6 120.63 0.0681
ASSETS: 0
1011.4 1125.7
Net block 8 1 114.23 0.11293
Capital work in progress 36.09 48.08 11.99 0.33222
Investments 868.84 895.92 27.08 -3.3608
Current assets 0
Inventories 509.66 548.15 38.49 0.07552
sundry debtors 300.52 334.12 33.6 0.1118
cash and bank 17.45 82.57 65.12 3.7318
1202.8 1494.9
Total Current Assets: 6 9 292.13 0.24286
1242.1 1552.4
current liabilities: 5 1 310.26 0.24977
Provisions 106.59 121.41 14.82 0.13641
TOTAL CURRENT 1348.7 1673.5
LIABILITIES 4 4 324.8 0.24081
Net current assets -145.88 -178.55 -32.67 -0.22395
miscellaneous expense 30.09 0 -30.09 0
1770.5 1891.1
Total assets 3 6 120.63 0.06813
INTERPRETATION:
In the year 2018 and 2019, the total net worth is increased by 19061(Rs in crores ) and it is in
1551641%. In the years of 2018-19, the total current assets increased by 292.13 and it is in the
percentage of 0.24977, but the capital assets of investment are decreased by 2.92 as in percentage of
3.63080. total current liabilities are increased by 324.82 as it in 0.24081 percent total company assets
values are increased by 120.63 as in percent of 0.06813 of comparative to 2017-18 years.

RATIO ANAYLYSIS
CURREANT RATIO:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or
those due within one year. It tells investors and analysts how a company can maximize
the current assets on its balance sheet to satisfy its current debt and other payables.
year Current assets current liabilities RATIO

2014-2015 971027 841.57 1.15
2015-2016 1022.03 905.49 1.13
2016-2017 1268.64 1139.92 1.11
2017-2018 1331.5 1225.74 1.09
2018-2019 1202.86 1348.74 0.89
CURRENT RATIO= CURRENT ASSETS / CURRENT LIABILITIES
CURRENT RATIO
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019

DEBT EQITY RATIO:

Debt equity ratio indicates the relationship describing the lenders contribution for each rupee of the
owners contribution is called debt_ equity ratio. A debt equity ratio of 1:1 is considered ideal.
DEBT EQUITY RATIO = TOTAL DEBT/EQUITY
DEBT EQUITY RATIO
EQUIT
YEARS TOTAL DEBT Y DEBT /EQUITY RATIO
2014-2015 1003.29 865.38 1.159363517
2015-2016 785.42 999.41 0.785883671
2016-2017 715.46 1169.3 0.61187035
2017-2018 545.86 1224.67 0.445720072
2018-2019 475.88 1415.28 0.336244418
SOURCE: ANNUAL REPORTS OF ITL LTD.
GRAPH: DEBT EQUITY RATIO
1600 Chart Title

1400
1200
1000
800
600
400
200
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
TOTAL DEBT EQUITY DEBT /EQUITY RATIO
INTERPRETATION:
From the above graph it is observed that the debt equity ratio of the integrated
thermoplastic Pvt. ltd company were follows continuous Decreasing trend because of
having sufficient equity over debt. The highest debt equity was in the financial year 2014-
2015 i.e., 1.15 and the least debt equity ratio in the financial year 2018-19 i.e.,0.33 It
indicates company having sufficient equity capital.
QUICK RATIO:
The quick ratio is an indicator of a company's short-term liquidity position and measures a company's
ability to meet its short-term obligations with its most liquid assets. ... An acid test is a quick test
designed to produce instant results—hence, the name.
QUICK RATIO = LIQUID ASSETS/ CURRENT LIABILITIES
current
year Quick assets libilities Ratio
2014-2015 223.61 84.52 2.645646001
2015-2016 321.32 905.47 0.354865429
2016-2017 276.63 1139.92 0.242674925
2017-2018 247.59 1255.74 0.197166611
2018-2019 317.97 1348.74 0.23575337
QUICK RATIO = QUICK ASETS / CURRENT LIABILITIES
QUICK RATIO
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
INTERRPRETATION:
1. The quick ratio of INTEGRATED THERMOPLASTIC PVT.LTD 2014-15 IS INCRESED TO 2.64 and next
following years continually decreased.
2.The slowly increasing the value of ratio 0.23 in 2018-19

LONG TERM DEBT TO TOTAL ASSETS:

The long-term debt-to-total-assets ratio is a measurement representing the percentage of a
corporation's assets financed with long-term debt, which encompasses loans or
other debt obligations lasting more than one year.
LONG TERM DEBT TO TOTAL ASSETS = LONG TERM DEBT/TOTAL ASSETS

Table no: LONG TERM DEBT TO TOTAL ASSETS(Rs in crores)
LONG TERM TOTAL

YEARS DEBT ASSETS RATIO
2014-2015 1003.29 1868.67 0.536901
2015-2016 715.46 1784.83 0.400856
2016-2017 715.46 1884.76 0.379603
2017-2018 545.86 1770.53 0.308303
2018-2019 475.88 1891.16 0.251634
SOURCE: Annual report of ITL LTD.
GRAPH : LONG TERM DEBT TO TOTAL ASSETS:
Chart Title
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
LONG TERM DEBT TOTAL ASSETS RATIO

INTERPRETATION:
From the above graph it is observed that the long term debt to total assets of the integrated thermo
Plastic Pvt.Ltd company were follows continuous decreasing trend except in the financial year 2016-17.
The highest long term debt to total assets was in the financial year 2018-19 i.e., 0.251634 and the least
long term debt total assets were in the financial year 2017-18 i.e., 0.308303
SHORT TERM DEBT TO TOTAL ASSETS:

SHORT TERM DEBT TO TOTAL ASSETS = SHORT TERM DEBT /TOTAL ASSETS
Table No: SHORT TERM DEBT TO TOTAL ASSETS (Rs in crores)
YEARS SHORTTERM DEBT TOTAL ASSETS RATIO

0.48456388
2014-2015 905.49 1868.67 8
2015-2016 1139.92 1784.83 0.63867147
0.66625989
2016-2017 1255.74 1884.76 5
0.76177189
2017-2018 1348.74 1770.53 9
0.88492776
2018-2019 1673.54 1891.16 9
SOURCE: Annual report of ITL LTD.
GRAPH: SHORT TERM DEBT TO TOTAL ASSETS
2000
1500
1000
500
0
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
SHORTTERM DEBT TOTAL ASSETS RATIO
INTERPRETATION:
From the above graph it is observed that the short term debt to total assets of the
integrated thermoplastic Pvt.Ltd company were follows continuously increasing trend
except in the financial year 2014-15. The highest short term debt to total assets was

found in the financial year 2018-19 that is 0.88 and the lowest short term debt to total
assets was found in the financial year 2018-19 that is 0.48.
CHAPTER-5
FINDINGS OF THE STUDY:

1. The company’s cash and bank balance are very high in the year of 2015. After that continuously
declined it shows that daily operating expenses are very high.
2. in the year2018-2019cash in hand, bank balance are increased but not much in the year2014-2015
3. company’s share capital is increased compared to the first year, this indicates that, reputation is
increased in publications also indication that a sale of this product is high in the market
4. the company’s net assets are not satisfactory. Company current assets are lesser than the current
liabilities, which shows that operating expenses are high.
5. the comparison between fixed assets and current assets shows that company is utilizing the
current assets very effectively.
6. the sales in the company’s are increasing with the increase in the selling of goods that is there
products which reduce the gross profits.

SUGGESTIONS:
1.cash planning techniques should be improved which protect the financial conditions of the firm by
developing the forecast of expected cash inflows and cash outflows.
2. profit planning of integrated thermo plastic PVT LTD should be improved which is short term plan for
the operations and resources of the firm.
3.the profitability of the company will be increased by proper profit planning of working capital. The
financial performance and operating efficiency of the company should be improved and these can be
done by the financial planning and profit planning.

CHAPTER-6
Conclusions:
Finally I concluded has study helpful to the INTEGRATED THERMO PLASTIC PVT.LTD
Company the company performance have been effectively and efficient performance, to
the financial strength has helped to gain a more knowledge about financial statement
analysis need for the company performance of financial management, its necessary to
develop the company, presently the company rapidly increasing the growth of the
company. It is capability of the financial management.

ANEXTURE

BALANCESHEET OF ITL PVT.LTD AS ON 31-03-2015

Rs. in crores
Particulars 2015
LIBILITIES:
Share capital 23.75
reserves and surplus 841.63
net worth 865.38
Secured loans 829.98
unsecured loans 173.31
TOTAL LIABILITIES 1868.67
ASSETS:
Net block 955.73
Capital work in progress 27.05
investments 739.26
Current assets
inventories 289.73
sundry debtors 220.31
cash and bank 101.01
loans and advances 410.98
Total Current Assets: 1022.03
current liabilities: BALANCESHEET OF ITL
current liabilities: 838.62 PVT.LTD AS ON 31-03-2016
provisions 66.87
TOTAL CURRENT LIABILITIES Rs. 905.49
in crores
Net current assets Particulers 116.54 2016
miscellaneous
LIBILITIES: expense 30.09
Total
Share assets
capital 1868.67 47.51
net worth 999.41
ASSETS:
Net block 937.59
investments 661.16
Current assets
inventories 527.92


cash and bank 6.01
current liabilities: 1047.98
provisions 91.98
TOTAL CURRENT LIABILITIES 1139.92
Net current assets 128.72
miscellaneous expense 0
Total assets 1784.83

Rs. in crores
Particulers 2017
LIBILITIES:
Share capital 47.51
net worth 1169.3
Secured loans 356.7
ASSETS:
Net block 1025.57
investments 930.92
Current assets
Inventories 584.56
cash and bank 13.03

Provisions 106.27
Net current assets -124.24


Rs. in crores
Particulers 2018
LIBILITIES:
Share capital 47.51
net worth 1224.67
ASSETS:
Net block 1011.48
Investments 868.84
Current assets
Inventories 509.66
cash and bank 17.45


Provisions 106.59

Rs. in crores
Particulers 2019
LIBILITIES:
Share capital 47.51
net worth 1415.28
ASSETS:
Net block 1125.71
investments 895.92
Current assets
inventories 548.15
cash and bank 82.57
provisions 121.41

STATEMENT OF PROFIT AND LOSS A/C FOR THE YEARS OF2015-19

PARTICULARS 2015 2016 2017 2018 2019
68891395
1.Revenue from operations 8 358430924 341676511 616927988 461405634
2. other income 2092724 1708511 1046920 951075 931448
69100668
3. Total revenue (1+2) 2 360139435 342723431 617879063 462337082
4.EXPENCES
55947067
a) cost of materials consumed 0 279746664 30211238 467954013 378047041
b) decrease/(increase) in Inventories of finished goods
and work in progress 6234300 3339690 2937240 31523057 7777088
c) employee benefits expanses 28464977 24463906 253047 38628129 33491560
d)Financial cost 32834030 30358528 355715 4032294 406578
e) Depreciation and amortization expenses 4716423 4577503 426324 3994338 3882049
f) other expenses 51506428 3194433 18680020 39676512 31803029
68322682
TOTAL EXPENSES 8 345680724 52863584 585808343 455407345
5.EBIT (3-4) 7779854 14458711 289859847 32070720 6929737
6. Tax expenses
(1) current tax 3749686 44258 542672 331610 123822
(2) deferred tax asset 423702 1388254
7.NET PROFIT/LOSS(5-6) 3606466 13026199 289317175 31739110 6805915
BIBIOGRAPHY
Books referred:
 I .M .Pandey Financial Management, 8th edition, Vikas publishing (pvt), New Delhi.
 M.Y .Khan & P.K.Jain Financial management, 4 th edition TATA MC Grawhill publishing co ltd, New Delhi
 Kaveri, V. S., (1985), Financing of Working Capital in Indian Industry, Economic and Political Weekly, Vol. 20.
No.35, pp. M123-M128.
Websites
 www.google.com
 www.sundaramfinance.in
 http://scholar.google.com
 www.managementparad

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A STUDY ON FINANCIAL STATEMENT ANALYSIS

“INTEGRATED THERMOPLASTICS Ltd, NANDYALA”

A Project Report Submitted to

MASTER OF BUSINESS ADMINISTRATION

CHAITANYA BHARATHI INSTITUTE OF TECHNOLOGY

Chaitanya Bharathi Institute of Technology Page 1

Chaitanya Bharathi Institute of Technology Page 2

CHAITANYA BHARATHI INSTITUTE OF TECHNOLOGY

Vidyanagar, Proddatur -516360,

INTERNAL GUIDE HEAD OF THE DEPARTMENT

Assistant professor Associate Professor

Chaitanya Bharathi Institute of Technology Page 3

TO WHOOM SOEVER IT MAY CONCERN

This is to certify that Mr./Miss. P. SAI KRISHNA, Reg., No:182P1E0043, a student of

work on “A Study on Financial statement analysis” in our Organization from 15.02.2020

Chaitanya Bharathi Institute of Technology Page 4

I Thank to Sri. V. JAYACHANDRA REDDY, Chairman of CHAITHANYA BHARATHI

I Thank to Sri Dr. G.SRINIVASULU REDDY, M.TECH, (Ph.D) principal CHAITHANYA

Chaitanya Bharathi Institute of Technology Page 5

Chaitanya Bharathi Institute of Technology Page 6

Chaitanya Bharathi Institute of Technology Page 7

S.NO CHAPTERS TITLE NAME PAGE

2 CHAPTER 2 INDUSTRY AND COMPANY PROFILE

-4 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 27-37

5 CHAPTER 5 FINDINGS & SUGGESTIONS 38

Chaitanya Bharathi Institute of Technology Page 8

Chaitanya Bharathi Institute of Technology Page 9

INTRODUCTION TO FINANCIAL MANAGEMENT:

Chaitanya Bharathi Institute of Technology Page 10

OBJECTIVES OF FINANCIAL MANAGEMENT:

 Financing or capital mix decision.

Chaitanya Bharathi Institute of Technology Page 12

Chaitanya Bharathi Institute of Technology Page 13

Chaitanya Bharathi Institute of Technology Page 14

LDPE: Low Density Poly Ethylene

Chaitanya Bharathi Institute of Technology Page 15

HDPE: High Density Poly Ethylene

PVC: Poly Vinyl Chloride

Export of the Plastic Goods:

Chaitanya Bharathi Institute of Technology Page 16

Role of Plastics in the National Economy:

IMPORTANCE OF PIPES INDUSTRY

Chaitanya Bharathi Institute of Technology Page 17

PVC PIPES IN INDIA:

Chaitanya Bharathi Institute of Technology Page 18

2.2 COMPANY PROFILE

Production Capacity of 22,200 metric tons per annul.

Nandi rigid PVC at a glance:

Colour : Light Gray

Pressure Rating : 2.5 Kg., 4Kg, 6Kg, 10Kg, & 15 Kg/cm*cm.

Range Available : 20mm to 400mm O.

Manufactured with ISI mark is 4985: 2000

❖ SatyaSai water schemes

GROWTH AND DEVELOPMENT OF THE ORGANIZATION:

The nandhipipe ITLPrivate Limited to record an excellent growth from 19onwards.

1977– 1975 Nandyal Region (Polythene Pipes)

1985 – 1987 Rayalaseema, Telangana Region.

TECHNICAL DETAILS ABOUT PVC PIPES:

FUNCTIONAL DEPARTMENT OF THE COMPANY:-

Chaitanya Bharathi Institute of Technology Page 21

The Major Petrochemical Companies are:

Sri rams Vijay Limited.

Chem. – Plastic Limited.