Professional Documents
Culture Documents
Chapter 1
Chapter 1
Chapter 1
By
S.CHARULATHA
Reg no: 1813101042139
Furthermore I would also like to acknowledge with much appreciation the crucial role
of the HEAD IN CHARGE - DR. K. KALPANA DEVI , M.COM.M.PHIL. MBA., . SET.,
PH.D. who gave the permission to use all required equipment and the necessary advices to
complete the task.
Last but not least, many thanks go to, MR. B. FRANKLIN EDBURG, M.COM,
M.PHIL, B.ED, SET whose have invested her full effort in guiding the team in achieving
the goal. I have to appreciate the guidance given by other supervisor as well as the panels
especially in our project presentation that has improved our presentation skills thanks to
their comment and advice.
DATE:
2 FINANCIAL ANALYSIS 08
3 RATIO ANALYSIS 69
6 ANNEXURE
CHAPTER 1
COMPANY PROFILE
INTRODUCTION:
It was established in 1946 by S. N. N. SankaralingaIyer and the first plant was set up
at Thalaiyuthu in Tamil Nadu in 1949. It has 7 integrated cement plants in Tamil Nadu,
Telangana and Andhra Pradesh, one in Rajasthan (through its subsidiary, Trinetra Cement Ltd)
and two grinding units, one each in Tamil Nadu and Maharashtra with a capacity of 15.5 million
tonnes per annum. Sankar Cement, Coramandel Cement and Raasi Gold are the brands
owned by India Cements.
India Cements owned the Indian Premier League franchise Chennai Super Kings from
2008 to 2014.[2] It was transferred to a separate entity named Chennai Super Kings Cricket Ltd.,
after the Supreme Court of India struck down the controversial amendment to
the BCCI constitution's clause 6.2.4 that allowed board officials to have a commercial interest in
the IPL and the Champions League T20 on January 22, 2015. India Cements is also alleged to
have made controversial investments in Jagati Publications and Bharati Cements owned by Y. S.
Jaganmohan Reddy.
HISTORY:
India Cements Ltd is the largest producer of cement in South India. The company has
four plants in Tamil Nadu and four in Andhra Pradesh India which cater to all major markets in
South India and Maharashtra. They are the market leader with a market share of 28% in the
South India. They have a distribution network with over 10000 stockists. Their brands include
Coromandel King-Sankar Sakthi- Raasi Gold Coromandel-Sankar-Raasi blended cements and
Sulphate Resisting Portland Cement. Their product includes ready mix concrete (RMC). The
company subsidiaries include Industrial Chemicals and Monomers Ltd ICL Financial Services
Ltd ICL Securities Ltd ICL International Ltd and Trinetra Cement Ltd.India Cements Ltd was
incorporated in the year February 21st 1946. In the year 1949 the company commissioned their
first Cement plant at Sankarnagar with the installed capacity 1 lakh tonnes per annum. In the
year 1963 they commissioned their second cement plant at Sankaridrug with the installed
capacity 2-lakh tonnes per annum. In the year 1969 they expanded the installed capacity at
Sankarnagar to 9 lakh tonnes per annum. Also they received Merit Certification for Outstanding
Export Performance (1968-1969). In the year 1971 the company expanded the installed capacity
at Sankari Drug to 6 lakh tonnes per annum.In the year 1990 the company acquired Coromandel
Cement plant at Cuddapah. They converted the Sankarnagar Plant to Dry Process with the
increased capacity of 1 million tonnes per annum. In the year 1991 they ventured into shipping
and set up a shipping division. In the year 1994 they received ISO 9002 certification for
Sankarnagar plant. In the year 1996 the company commenced commercial production at their
green field cement plant at Dalavoi. In the year 1997 they acquired Aruna Sugars Finance Ltd
and renamed it as India Cements Capital & Finance Ltd. also they acquired Cement Plant of
Visaka Cement Industry Ltd at Tandur Ranga Reddy district of Andhra Pradesh. In the year 1998
the company acquired Cement Corporation of India's Yerraguntla Cement Plant at Andhra
Pradesh. Also they acquired Raasi Cement Ltd. at Nalgonda District of Andhra Pradesh. In the
year 1999 the company acquired Cement Plant of Shri Vishnu Cement Ltd. at Nalgonda District
of Andhra Pradesh. In the year 2001 they divested their stake in Sri Vishnu Cement Ltd. In
November 2004 the company commissioned the Unique Waste Heat Recovery System for
generation of power from waste gas at Vishnupuram Cement Plant with the capacity of 7.7 MW.
Also the company through their special purpose vehicle Coromandel Electric Co Ltd
commissioned a (gas based) captive power plant at Ramanathapuram with the capacity of 17.4
MW. In the year 2007 Visaka Cement Industry Ltd was amalgamated with the company. The
company converted the Sankari plant from wet process to dry process and commissioned the
plant. In the year 2008 they revived their shipping business with the purchase of two ships (dry
bulk carriers) with a total capacity of 79843 DWT. They completed and commenced
commercial production of one million tonne grinding plant at Chennai. Also the company
successfully bid for the Chennai franchise of the DLF-IPL 20/20 Cricket Tournament - 'Chennai
Super Kings'.
VISION:
“To create value on a sustained basis for all stakeholders of India Cements through lofty
standards of transparency, accountability and responsibility, innovation and leadership in cement
manufacture.”
MISSION:
“India Cements will strive to remain a leader in the manufacture of cement and establish
itself as a preferred supplier of products and services to its clients and enhance the brand value
for all stakeholders.
As the organization grows, as a responsible corporate citizen, India Cements shall be sensitive to
the welfare and development needs of the society around it.”
OBJECTIVES:
The marketing department of Indian cement has he following objectives: The major
objectives of Indian cements ltd is customer satisfaction. To encourage the existing buyers for
more orders to satisfy the customer needs by delivering the product in the stipulated time to
develop market.
PRODUCTS:
The products offered by India Cement cater to the various market and industrial
segments in the country. They are designed in such a way so as to keep pace with the changing
market trends and consumer tastes and preferences. Some of the well known brands that are
produced by the India Cements Ltd are: Coromandel super power, Raasigold, Coromendel king,
Raasi concrete, Coromendel super king, Coromandel sapc,Coromendel sleeper cement,
Coromandel oil well, Coromendel white, Coromendel super wall putty,Sankar super power.
India Cements Corporate Office Address: Coromandel Towers, No- 93, Santhome High
Road, Karpagam Avenue, R.A.Puram, Chennai 600028, Tamil Nadu, India
India Cements Corporate Office Phone Number: +91-44-28521526, +91-44-28572100
India Cements Corporate Office Fax Number: NA
India Cements Corporate Office Ema
India Cements Limited Registered Office Contact Details
India Cements Registered Office Address: Dhun Building, No- 827, 4th Floor, Mount
Road, Anna Salai, Chennai 600002, Tamil Nadu, India
India Cements Registered Office Phone Number: NA
India Cements Registered Office Fax Number: NA
India Cements Registered Office Email ID: NA
For more information about India Cements Limited, you can visit at the official website,
where you can check more information.
Cement Corporation of India Ltd. (CCI), a Central Public Sector Undertaking under the
administrative jurisdiction of the Department of Heavy Industry, Ministry of Heavy Industries &
Public Enterprises, Government of India was set up on 18th January, 1965 with an objective to
be self-sufficient in cement production and to fill the gap of regional imbalance in cement
production and is committed towards holistic welfare of the society by undertaking CSR
activities within the ambit of the Schedule VII of the Companies (CSR Policy) Rules 2014.
However thrust areas for CSR activities will be:
“India Cements is a story of wealth creation fuelled by the foresight, missionary zeal and
vision of its founders and the dedicated efforts of its employees over the last seven decades. The
India Cements Limited right from its inception has been alive to the larger social responsibility
of organized industry. We have over the years developed an enviable reputation as a caring
organization not only taking care of its stakeholders but looking beyond cement to put a smile on
the face of the common people through various community development initiatives.or rules
made there under shall be construed to be a part of this policy
At India Cements, we focus on building relationships, relationships that help enrich lives,
relationships that promise a better tomorrow. In our website, you will see reiterated concrete
examples, the sum total of a life energy that pushes us to see beyond the vagaries of the market
place, the building of mammoth factories or a growing enterprise. For, far deeper than our desire
to be successful is our desire to be good. Good to our own selves, our families, every man,
woman and child who come in touch with us.
CHAPTER 2
FINANCIAL ANALYSIS
Financial analysis is the process of evaluating businesses, projects, budgets, and other
finance-related transactions to determine their performance and suitability. Typically, financial
analysis is used to analyse whether an entity is stable, solvent, liquid, or profitable enough to
warrant a monetary investment.
Financial analysis is used to evaluate economic trends, set financial policy, build long-
term plans for business activity, and identify projects or companies for investment. This is done
through the synthesis of financial numbers and data. A financial analyst will thoroughly examine
a company's financial statements—the income statement, balance sheet, and cash flow statement.
Financial analysis can be conducted in both corporate finance and investment finance settings.
One of the most common ways to analyse financial data is to calculate ratios from the
data in the financial statements to compare against those of other companies or against the
company's own historical performance.
Make other decisions that allow management to make an informed selection on various
alternatives in the conduct of its business Financial analysis is the process of evaluating
businesses, projects, budgets, and other finance-related transactions to determine their
performance and suitability. Typically, financial analysis is used to analyze whether an entity is
stable, solvent, liquid, or profitable enough to warrant a monetary investment
To predict the future prospects of the company, past performance is analysed. Past
performance is analysed by reviewing the trend of past sales, profitability, cash flows, return on
investment, debt-equity structure and operating expenses, etc.
Examining the current profitability & operational efficiency of the enterprise so that the
financial health of the company can be determined. For long-term decision making, assets
liabilities of the company are reviewed. Analysis helps in finding out the earning capacity &
operating performance of the company.
The top management is concerned with future prospects of the company. Financial
analysis helps them in reviewing the investment alternatives for judging the earning potential of
the enterprise. With the help of financial statement analysis, assessment and prediction of the
bankruptcy and probability of business failure can be done.
Financial analysis helps the financial institutions, loan agencies & banks to decide
whether a loan can be given to the company or not. It helps them in determining the credit risk,
deciding the terms and conditions of a loan if sanctioned, interest rate, maturity date etc.
TABLE SHOWING COMPARATIVE STATEMENT OF BALANCESHEET FOR THE
YEAR 2015-2016
PERCENTAGE
PARTICULARS 31.03.2015 31.03.2016
CHANGE REMARKS
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Increase in
Reserves and Surplus 2,982.35 3,083.46 3.39 reserves and
supply
There is
Total reserves and increase in total
3,285.92 3,341.13 1.68
surplus reserves and
supply
Total shareholders’ Increase in
3,593.09 3,648.31 1.53
funds share holders
fund
Non-current liabilities
There is a
Long term borrowings 2,196.79 1,935.46 -11.89 decrease in long
term borrowings
Increase in
Deferred tax liabilities 329.69 358.93 8.86 deferred tax
[net]
liabilities
There is a
increase in other
Other long term liabilities 13.17 15.02 14.0
long term
liabilities
Increase in long
Long term provisions 58.64 62.63 6.80
term provision
Total non-
Total non-current current
2,598.29 2,372.03 -8.70
liabilities liabilities in
decreased
Current liabilities
There is a
Short term borrowings 481.55 469.78 -2.44 decrease in short
term borrowings
Increase in trade
Trade payables 825.27 891.62 8.03
payables
There is a
Other Current Liabilities 813.00 815.44 0.30 increase in other
current liabilities
Increase in short
Short Term Provisions 0.17 37.14 21747
term provision
There is a
increase in
Total current liabilities 2,119.98 2,213.98 4.43
current
liabilities
ASSETS
1.Non-current assets
Decrease in
Tangible Assets 3,548.79 3,384.38 -4.6 purchase of
assets
Decrease in
Intangible Assets 37.02 29.76 -19.6 purchase of
assets
There is a
-0.96 decrease in
Capital Work-In-Progress 89.03 88.17
capital work in
progress
There is a slight
Fixed assets 3,674.84 3,502.32 -4.69 decrease in
fixed assets
There is a slight
Non-Current Investments 1,585.22 1,584.69 -0.03 decrease in non
current
investments
There is a
Total non-current assets 6,791.19 6,722.06 -1.01 decrease in
noncurrent
assets
Decrease in
Inventories 606.88 595.25 -1.91
purchase of
inventories
There is a
Total current assets 1,520.18 1,512.26 -0.52 decrease in
current assets
YEAR 2016-2017
PERCENTAGE
PARTICULARS 31.03.2016 31.03.2017
CHANGE REMARKS
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
There is a
increase in
Reserves and surplus 3,083.46 4,801.75 55.726
reserves and
supply
There is a
Total reserves and
3,341.13 4,801.75 43.7163 increase in
surplus
total reserves
and supply
Increase in
Total shareholders shareholders
3,648.31 5,108.93 40.0355
funds fund
Non-current liabilities -
Increase in long
Long term borrowings 1,935.46 2,379.66 22.9506
term borrowings
Increase in
Other long term
15.02 28.06 86.8176 other long term
liabilities
liabilities
There is a
Long term provisions 62.63 160.66 156.522 increase in long
term provisions
Increase in non
Total non-current
2,372.03 3,224.02 35.9182 current
liabilities
liabilities
Current liabilities
Decrease in
Short term borrowings 469.78 301.77 -35.76355 short term
borrowings
Increase in
Trade payables 891.62 1,318.02 47.8231 quantum of
purchase
There is a
decrease in
Other current liabilities 815.44 691.38 -15.21387
other current
liabilities
There is a huge
decrease in
Short term provisions 37.14 0.18 -99.51535
short term
provision
Increase in
Total current liabilities 2,213.98 2,311.35 4.39796 future
commitments
ASSETS
Non-current assets
Increase in
Tangible assets 3,384.38 6,948.84 105.321 purchase of
assets
Decrease in
Intangible assets 29.76 24.04 -19.22043 purchase of
assets
There is a
Capital work-in- increase in
88.17 127.81 44.9586
progress capital work in
progress
There is a
increase is
Fixed assets 3,502.32 7,100.69 102.742
purchase of
fixed assets
There is a huge
Non-current investments 1,584.69 616.46 -61.09902 decrease in non
current
investments
Decrease in
Long term loans and
1,635.05 896.3 -45.1821 purchasing of
advances
long term loans
Other non-current assets 0.00 333.23 NIL Constant
CURRENTASSETS
Increase in
Inventories 595.25 745 25.1575 purchase of
inventories
Decrease in
Trade receivables 513.38 508.88 -0.876544
trading
There is a
Cash and cash
3.69 6.78 83.7398 increase in cash
equivalents
equivalents
There is a huge
Short term loans and
399.94 51.31 -87.17058 decrease in
advances
short term loans
Other current assets 0.00 384.09 NIL Constant
There is a
Total current assets 1,512.26 1,698.59 12.3213 increase in
current assets
Increase in
Total assets 8,234.31 10,645.28 29.2796
assets
TABLE SHOWING COMPARATIVE STATEMENT OF BALANCESHEET TABLE
YEAR 2017-2018
PERCENTAGE
PARTICULARS 31.03.2017 31.03.2018
CHANGE REMARKS
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Increase in
Equity share capital 307.18 308.15 0.31 equity share
capital
Increase in
Total share capital 307.18 308.15 0.31
share capital
Increase in
Reserves and surplus 4,801.75 4,892.18 1.88 reserves and
surplus
Increase in
Total reserves and
4,801.75 4,892.18 1.88 reserves and
surplus
surplus
Increase in
Total shareholders total
5,108.93 5,200.33 1.78
funds shareholders
fund
Non-current liabilities
Increase in long
Long term borrowings 2,379.66 2,818.00 18.4
term borrowings
There is a
Deferred tax liabilities decrease in
655.64 653.23 -0.36
[net] deferred tax
liabilities
There is a huge
Long term provisions 160.66 142.65 -11.2 decrease in long
term provision
Increase in non
Total non-current
3,224.02 3,642.29 12.9 current
liabilities
liabilities
Current liabilities
Increase in short
Short term borrowings 301.77 154.83 48.6
term borrowings
There is a slight
decrease in
Trade payables 1,318.02 1,175.92 -10.7
short term
borrowings
There is a
decrease in
Other current liabilities 691.38 552.23 -20.1
other current
liabilities
Slight decrease
Total current liabilities 2,311.35 1,883.16 -18.5 in current
liabilities
ASSETS
1.Non-current assets
Decrease in
Tangible assets 6,948.84 6,769.68 -2.57
tangible assets
There is a
Intangible assets 24.04 26.64 10.8 increase in
intangible assets
The capital
work in
Capital work-in-progress 127.81 171.22 33.9
progress is
increased
There is
Other assets 0 0.00 NIL purchase of
other assets
Decrease in
Fixed assets 7,100.69 6,967.55 -1.87
fixed assets
There is a
decrease in non
Non-Current Investments 616.46 586.21 -4.90
current
investment
There is no
Deferred Tax Assets [Net] 0 0.00 NIL deferred tax
assets
Other current
Other Non-Current
333.23 369.69 10.9 assets are
Assets
increased
Non-current
Total non-current
8,946.68 8,966.18 0.21 assets
assets
increased
2.Current assets
There is a slight
decrease in
Current Investments 2.55 2.13 -16.4
current
investment
Decrease in
Inventories 745 672.25 -9.76 purchase in
inventories
Trading
Trade Receivables 508.88 629.47 23.6 receivables are
increased
Purchase of
Short Term Loans And
51.31 42.81 -16.5 short term loans
Advances
are decreased
Other current
OtherCurrentAssets 384.09 404.59 5.33 assets are
increased
Increased in
Total current assets 1,698.59 1,759.61 3.59 purchase of
current assets
Increase in
Total assets 10,645.28 10,725.79 0.75
assets
TABLE SHOWING COMPARATIVE STATEMENT OF BALANCESHEET TABLE
YEAR 2018-2019
PERCENTAGE
PARTICULARS 31.03.2018 31.03.2019
CHANGE REMARKS
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Increase in
Equity share capital 308.15 309.90 0.56 equity share
capital
Increase in
Total share capital 308.15 309.90 0.56
share capital
Increase in
Reserves and surplus 4,892.18 4,929.80 0.76 reserves and
surplus
Increase in
Total reserves and reserves and
4,892.18 4,929.80 0.76
surplus surplus
Increase in
Total shareholders total
5,200.33 5,239.70 0.75
funds shareholders
fund
Non-current liabilities
Decrease in
Long term borrowings 2,818.00 2,643.30 -6.19 long term
borrowings
There is a
Deferred tax liabilities decrease in
653.23 630.82 -3.43
[net] deferred tax
liabilities
There is a huge
Long term provisions 142.65 140.36 -1.60 decrease in long
term provision
Increase in non
Total non-current
3,642.29 3,443.51 -5.45 current
liabilities
liabilities
Current liabilities
Increase in
Short term borrowings 154.83 337.19 117.7
short term
borrowings
There is a
Trade payables 1,175.92 1,316.33 11.9 increase in short
term borrowings
There is a
increase in other
Other current liabilities 552.23 768.12 39.09
current
liabilities
There is no
Short term provisions 0.18 0.18 0 short term
provision
Increase in
Total current liabilities 1,883.16 2,421.82 28.6 current
liabilities
ASSETS
1.Non-current assets
Decrease in
Tangible assets 6,769.68 6,680.03 -1.32
tangible assets
There is a
Intangible assets 26.64 33.02 23.9 increase in
intangible assets
The capital
work in
Capital work-in-progress 171.22 177.02 3.38
progress is
increased
There is
Other assets 0.00 0.00 0 purchase of
other assets
Decrease in
Fixed assets 6,967.55 6,890.06 -1.11
fixed assets
There is a
increase in non
Non-Current Investments 586.21 692.40 18.1
current
investment
There is no
Deferred Tax Assets [Net] 0.00 0.00 0 deferred tax
assets
Non-current
Total non-current
8,966.18 8,980.87 0.16 assets
assets
increased
2.Current assets
There is a
increase in
Current Investments 2.13 2.22 4.22
current
investment
Increase in
Inventories 672.25 823.21 22.4 purchase in
inventories
Trading
Trade Receivables 629.47 728.97 15.8 receivables are
increased
Increased in
Total current assets 1,759.61 2,124.15 20.7 purchase of
current assets
Increase in
Total assets 10,725.79 11,105.02 3.53
assets
TABLE SHOWING COMPARATIVE STATEMENT OF BALANCESHEET TABLE
YEAR 2019-2020
PERCENTAGE
PARTICULARS 31.03.2019 31.03.2020
CHANGE REMARKS
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Increase in
Reserves and surplus 4,929.80 5,105.01 3.55 reserves and
surplus
Increase in
Total reserves and reserves and
4,929.80 5,105.01 3.55
surplus surplus
Increase in
Total shareholders total
5,239.70 5,414.91 3.34
funds shareholders
fund
Non-current liabilities
Decrease in
Long term borrowings 2,643.30 2,374.99 -10.15 long term
borrowings
There is a
Deferred tax liabilities decrease in
630.82 591.04 -6.30
[net] deferred tax
liabilities
There is a huge
Long term provisions 140.36 122.36 -12.8 decrease in long
term provision
Decrease in
Total non-current
3,443.51 3,199.59 -7.08 non- current
liabilities
liabilities
Current liabilities
Increase in
Short term borrowings 337.19 741.91 120.02 short term
borrowings
There is a
Trade payables 1,316.33 1,331.21 1.13 increase in short
term borrowings
There is a
decrease in
Other current liabilities 768.12 764.63 -0.45
other current
liabilities
Increase in
Total current liabilities 2,421.82 2,837.93 17.1 current
liabilities
ASSETS
1.Non-current assets
Increase in
Tangible assets 6,680.03 6,770.25 1.35
tangible assets
There is a
Intangible assets 33.02 55.55 68.2 increase in
intangible assets
The capital
work in
Capital work-in-progress 177.02 195.80 10.6
progress is
increased
There is no
Other assets 0.00 0.00 purchase of
other assets
Increase in fixed
Fixed assets 6,890.06 7,021.60 1.90
assets
There is a
increase in non
Non-Current Investments 692.40 735.75 6.26
current
investment
There is no
Deferred Tax Assets [Net] 0.00 0.00 0 deferred tax
assets
Non-current
Total non-current
8,980.87 9,275.94 3.28 assets
assets
increased
2.Current assets
There is a huge
decrease in
Current Investments 2.22 1.19 -46.3
current
investment
Increase in
Inventories 823.21 826.26 0.37 purchase in
inventories
Trading
Trade Receivables 728.97 716.26 -1.74 receivables are
decreased
Increased in
Total current assets 2,124.15 2,176.49 2.46 purchase of
current assets
Increase in
Total assets 11,105.02 11,452.43 3.12
assets
TABLE SHOWING COMPARATIVE STATEMENT OF PROFIT AND LOSS FOR THE
YEAR 2015-2016
PERCENTAGE
PARTICULARS 31.03.2015 31.03.2016
CHANGE REMARKS
INCOME
Decrease in
Revenue from
4,713.63 4703.22 -0.22 revenue from
operations [gross]
operation
There is a
increase after
Less: excise/service
574.18 584.58 1.81 reducing
tax/other levies
revenue from
operation
Decrease in
Revenue from
4,139.45 4,118.64 -0.502 revenue from
operations [net]
operation [net]
Decrease in
Total operating
4,423.60 4,226.85 -4.44 operating
revenues
revenue
Decrease in
Other income 30.79 22.16 -28.02
other income
Total revenue
Total revenue 4,454.40 4,249.01 -4.61
is decreased
EXPENSES
There is a
Cost of materials increase in cost
624.20 686.32 9.95
consumed of materials
consumed
Decrease in
Operating and direct
1,273.37 1,085.63 -14.7 operating and
expenses
direct expenses
Increase in
Employee benefit
318.15 343.10 7.842 employee
expenses
benefit expenses
Finance costs
Finance costs 425.99 370.35 -13.06
decreased
Decreased in
Depreciation and depreciation and
257.91 218.02 -15.46
amortisation expenses amortization
expenses
There is a
Other expenses 1,490.86 1,352.03 -9.312 decrease in
other expenses
There is a
Total expenses 4,424.95 4,045.51 -8.57 decrease in
expenses
Profit/loss before
exceptional, Increase in
29.45 203.50 591.0
extraordinary items and profit
tax
There is no
Exceptional items 0.00 -3.20 0 exceptional
items
Increase in
Profit/loss before tax 29.45 200.31 580.1
profit
TAX EXPENSES-
CONTINUED
OPERATIONS
A huge Increase
Current tax 6.40 60.37 843.2
in current tax
Increase in
Less: mat credit current tax after
6.40 27.11 323.5
entitlement less of mat
credit
There is no
Deferred tax 0.00 29.24 0
deferred tax
There is no tax
Tax for earlier years 0.00 0.00 0
for earlier years
YEAR 2016-2017
PERCENTAGE
PARTICULARS 31.03.2016 31.03.2017
CHANGE REMARKS
INCOME
Increase in
Revenue from
4703.22 5,594.41 18.9 revenue from
operations [gross]
operation
There is a
decrease after
Less: excise/sevice
584.58 0.00 -100 reducing
tax/other levies
revenue from
operation
Increase in
Revenue from
4,118.64 5,594.41 35.8 revenue from
operations [net]
operation [net]
Increase in
Total operating
4,226.85 5,777.52 36.6 operating
revenues
revenue
Decrease in
Other income 22.16 16.51 -25.4
other income
Total revenue
Total revenue 4,249.01 5,794.04 36.3
is increased
EXPENSES
There is a
Cost of materials increase in cost
686.32 895.65 30.5
consumed of materials
consumed
Increase in
Operating and direct
1,085.63 1,933.88 78.13 operating and
expenses
direct expenses
Increase in
Employee benefit
343.10 377.85 10.1 employee
expenses
benefit expenses
Finance costs
Finance costs 370.35 360.46 -2.67
decreased
Increased in
Depreciation and depreciation and
218.02 257.06 17.9
amortisation expenses amortization
expenses
There is a
Other expenses 1,352.03 1,718.87 27.1 increase in other
expenses
There is a
Total expenses 4,045.51 5,534.01 36.7 increase in
expenses
Profit/loss before
exceptional, Increase in
203.50 260.02 27.7
extraordinary items and profit
tax
There is
decrease
Exceptional items -3.20 0.00 -100
exceptional
items
Increase in
Profit/loss before tax 200.31 260.02 29.8
profit
TAX EXPENSES-
CONTINUED
OPERATIONS
A slight
Current tax 60.37 53.71 -11.03 decrease current
tax
Increase in
Less: mat credit current tax after
27.11 53.71 98.1
entitlement less of mat
credit
There is huge
Deferred tax 29.24 86.67 196.4 increase in
deferred tax
There is no tax
Tax for earlier years 0.00 0.00 0
for earlier years
Increase in tax
Total tax expenses 62.49 86.67 38.6
expenses
YEAR 2017-2018
PERCENTAGE
PARTICULARS 31.03.2017 31.03.2018
CHANGE REMARKS
INCOME
Decrease in
Revenue from
5,594.41 5,187.64 -7.27 revenue from
operations [gross]
operation
There is a no
Less: excise/sevice
0.00 0.00 0 items for
tax/other levies
reducing
Decrease in
Revenue from
5,594.41 5,187.64 -7.27 revenue from
operations [net]
operation [net]
Decrease in
Total operating
5,777.52 5,340.72 -7.56 operating
revenues
revenue
Increase in other
Other income 16.51 19.41 17.5
income
Total revenue
Total revenue 5,794.04 5,360.13 -7.48
is Decrease
EXPENSES
There is a
Cost of materials increase in cost
895.65 901.38 0.63
consumed of materials
consumed
Decrease in
Operating and direct
1,933.88 1,564.40 -19.10 operating and
expenses
direct expenses
Increase in
Employee benefit
377.85 397.10 5.09 employee
expenses
benefit expenses
Finance costs
Finance costs 360.46 340.17 -5.62
decreased
Decrease in
Depreciation and depreciation and
257.06 255.94 -0.43
amortisation expenses amortization
expenses
There is a
Other expenses 1,718.87 1,744.79 1.507 increase in other
expenses
There is a
Total expenses 5,534.01 5,244.02 -5.24 Decrease in
expenses
Profit/loss before
exceptional, Decrease in
260.02 116.11 -55.34
extraordinary items and profit
tax
There is no
Exceptional items 0.00 0.00 0 exceptional
items
Decrease in
Profit/loss before tax 260.02 116.11 -55.3
profit
TAX EXPENSES-
CONTINUED
OPERATIONS
A slight
Current tax 53.71 17.90 -66.67 decrease current
tax
Decrease in
Less: mat credit current tax after
53.71 0.02 -99.9
entitlement less of mat
credit
There is huge
Deferred tax 86.67 -2.39 -102.7 Decrease in
deferred tax
There is no tax
Tax for earlier years 0.00 0.00 0
for earlier years
Decrease in tax
Total tax expenses 86.67 15.49 -82.12
expenses
YEAR 2018-2019
PERCENTAGE
PARTICULARS 31.03.2018 31.03.2019
CHANGE REMARKS
INCOME
Increase in
Revenue from
5,187.64 5,460.83 5.26 revenue from
operations [gross]
operation
There is a no
Less: excise/sevice
0.00 0.00 0 items for
tax/other levies
reducing
Increase in
Revenue from
5,187.64 5,460.83 5.26 revenue from
operations [net]
operation [net]
Increase in
Total operating
5,340.72 5,627.98 5.37 operating
revenues
revenue
Increase in other
Other income 19.41 30.97 59.5
income
Total revenue
Total revenue 5,360.13 5,658.96 5.57
is Increase
EXPENSES
There is a
Cost of materials increase in cost
901.38 1,044.40 15.8
consumed of materials
consumed
Increase in
Operating and direct
1,564.40 1,774.96 13.45 operating and
expenses
direct expenses
Decrease in
Employee benefit
397.10 357.14 -10.06 employee
expenses
benefit expenses
Finance costs
Finance costs 340.17 324.17 -4.703
decreased
Increase in
Depreciation and depreciation and
255.94 251.31 -1.809
amortisation expenses amortization
expenses
There is a
Other expenses 1,744.79 1,834.75 5.15 Increase in
other expenses
There is a
Total expenses 5,244.02 5,565.54 6.13 Increase in
expenses
Profit/loss before
exceptional, Decrease in
116.11 93.42 -19.54
extraordinary items and profit
tax
There is no
Exceptional items 0.00 0.00 0 exceptional
items
Decrease in
Profit/loss before tax 116.11 93.42 -19.5
profit
TAX EXPENSES-
CONTINUED
OPERATIONS
A slight
Current tax 17.90 32.45 81.28 Increase current
tax
Decrease in
Less: mat credit current tax after
0.02 -12.67 -63450
entitlement less of mat
credit
There is huge
Deferred tax -2.39 -21.13 784.1 Increase in
deferred tax
There is no tax
Tax for earlier years 0.00 0.00 0
for earlier years
Increase in tax
Total tax expenses 15.49 23.98 54.80
expenses
YEAR 2019-2020
PERCENTAGE
PARTICULARS 31.03.2019 31.03.2020
CHANGE REMARKS
INCOME
Decrease in
Revenue from
5,460.83 4,909.02 -10.10 revenue from
operations [gross]
operation
There is a no
Less: excise/sevice
0.00 0.00 0 items for
tax/other levies
reducing
Decrease in
Revenue from
5,460.83 4,909.02 -10.10 revenue from
operations [net]
operation [net]
Decrease in
Total operating
5,627.98 5,057.54 -10.13 operating
revenues
revenue
Decrease in other
Other income 30.97 27.73 -10.46
income
Total revenue
Total revenue 5,658.96 5,085.28 -10.13
is Decrease
EXPENSES
There is a
Cost of materials Decrease in cost
1,044.40 925.88 -11.3
consumed of materials
consumed
Decrease in
Operating and direct
1,774.96 1,499.52 -15.5 operating and
expenses
direct expenses
Decrease in
Employee benefit
357.14 349.89 -2.03 employee
expenses
benefit expenses
Finance costs
Finance costs 324.17 334.47 3.17
increased
Decrease in
Depreciation and depreciation and
251.31 246.85 -1.77
amortisation expenses amortization
expenses
There is a
Other expenses 1,834.75 1,721.30 -6.18 Decrease in
other expenses
There is a
Total expenses 5,565.54 5,053.64 -9.19 Decrease in
expenses
Profit/loss before
exceptional, Decrease in
93.42 31.63 -66.14
extraordinary items and profit
tax
There is no
Exceptional items 0.00 -100.04 0 exceptional
items
Decrease in
Profit/loss before tax 93.42 -68.41 -173.2
profit
TAX EXPENSES-
CONTINUED
OPERATIONS
A slight
Current tax 32.45 6.88 -78.7 Decrease
current tax
Decrease in
Less: mat credit current tax after
-12.67 0.00 -100
entitlement less of mat
credit
There is huge
Deferred tax -21.13 -39.78 88.26 Increase in
deferred tax
There is no tax
Tax for earlier years 0.00 0.00 0
for earlier years
Decrease in
Total tax expenses 23.98 -32.90 -237.19
tax expenses
YEAR 2015-2016
PERCENTAGE
PARTICULARS 31.03.2015 31.03.2016
CHANGE REMARKS
Inclined
Net profit/loss before
gradually in
extraordinary items 29.45 200.31 580.1
the net profit
and tax
before tax
Company
operations
Net Cash Flow From have
579.41 840.15 45.00
Operating Activities yielded
Positive
results.
Cash flow
from
Net Cash Used In investing
-98.60 -114.61 16.23
Investing Activities activities has
been
Increased.
Increase in
Net Cash Used From
-478.72 -725.77 51.60 cash from
Financing Activities
finance.
There is no
Foreign Exchange Gains foreign
0.00 0.00 0
/ Losses exchange
gain/losses
Adjustments On There is no
Amalgamation Merger 0.00 0.00 0 adjustment on
Demerger Others amalgamation
YEAR 2016-2017
PERCENTAGE
PARTICULARS 31.03.2016 31.03.2017
CHANGE REMARKS
Declined
Net profit/loss before
gradually in
extraordinary items 200.31 260.02 29.80
the net profit
and tax
before tax
Company
operations
Net Cash Flow From
840.15 812.06 -3.34 have
Operating Activities
negative
results.
Cash flow
from
Net Cash Used In investing
-114.61 -187.64 63.72
Investing Activities activities has
been
Increased.
Decreased in
Net Cash Used From
-725.77 -624.32 -13.97 cash from
Financing Activities
finance.
There is
no foreign
Foreign Exchange Gains
0.00 0.00 0 exchange
/ Losses
gain/
losses
Adjustments On There is no
Amalgamation Merger 0.00 0.00 0 adjustment on
Demerger Others amalgamation
YEAR 2017-2018
PERCENTAGE
PARTICULARS 31.03.2017 31.03.2018
CHANGE REMARKS
Inclined
Net profit/loss before
gradually in
extraordinary items 260.02 116.11 -55.34
the net profit
and tax
before tax
Company
operations
Net Cash Flow From
812.06 468.47 -42.3 have
Operating Activities
negative
results.
cash flow
from
Net Cash Used In investing
-187.64 -294.19 56.78
Investing Activities activities has
been
Increased.
Decreased in
Net Cash Used From
-624.32 -172.68 -72.3 cash from
Financing Activities
finance.
There is
no foreign
Foreign Exchange Gains
0.00 0.00 0 exchange
/ Losses
gain/
losses
Adjustments On There is no
Amalgamation Merger 0.00 0.00 0 adjustment on
Demerger Others amalgamation
YEAR 2018-2019
PERCENTAGE
PARTICULARS 31.03.2018 31.03.2019
CHANGE REMARKS
Inclined
Net profit/loss before
gradually in
extraordinary items 116.11 93.42 -19.54
the net profit
and tax
before tax
Company
operations
Net Cash Flow From
468.47 316.38 -32.46 have
Operating Activities
negative
results.
cash flow
from
Net Cash Used In investing
-294.19 -240.38 -18.29
Investing Activities activities has
been
decreased
Decreased in
Net Cash Used From
-172.68 -77.64 -55.03 cash from
Financing Activities
finance.
There is
no foreign
Foreign Exchange Gains
0.00 0.00 0 exchange
/ Losses
gain/
losses
Adjustments On There is no
Amalgamation Merger 0.00 0.00 0 adjustment on
Demerger Others amalgamation
YEAR 2019-2020
PERCENTAGE
PARTICULARS 31.03.2019 31.03.2020
CHANGE REMARKS
Inclined
Net profit/loss before
gradually in
extraordinary items 93.42 31.63 -66.14
the net profit
and tax
before tax
Company
operations
Net Cash Flow From
316.38 413.92 30.83 have
Operating Activities
positive
results.
cash flow
from
Net Cash Used In investing
-240.38 -340.26 41.55
Investing Activities activities has
been
increased
Decreased in
Net Cash Used From
-77.64 -73.77 -4.984 cash from
Financing Activities
finance.
There is
no foreign
Foreign Exchange Gains
0.00 0.00 0 exchange
/ Losses
gain/
losses
Adjustments On There is no
Amalgamation Merger 0.00 0.00 0 adjustment on
Demerger Others amalgamation
RATIO ANALYSIS
This relationship can be expressed as a percent or as a quotient. Ratios are simple to calculate
and easy to understand. The persons interested in the analysis of financial statements can be
grouped under three heads,
i) Owners or investors
Although all these three groups are interested in the financial conditions and operating results, of
an enterprise, the primary information that each seeks to obtain from these statements differs
materially, reflecting the purpose that the statement is to serve.
Investors desire primarily a basis for estimating earning capacity. Creditors are concerned
primarily with liquidity and ability to pay interest and redeem loan within a specified period.
Management is interested in evolving analytical tools that will measure costs, efficiency,
liquidity and profitability with a view to make intelligent decisions.
PROFITABILITY RATIO
Profitability refers to the financial performance of the business. Accounting Ratios that
measure profitability are known as Profitability Ratios. We express these ratios in ‘Percentage’.
Profitability ratios compare income statement accounts and categories to show a company’s
ability to generate profits from its operations. Profitability ratios focus on a company’s return on
investment in inventory and other assets. These ratios basically show how well companies can
achieve profits from their operations.
4. Return On Investment
This ratio simply compares the gross profit of a company to its net sales. Both figures are
obtained from the Income Statement. The ratio is also known as Margin ratio or the Rate of
Gross Profit. The ratio is represented as a percentage of sales.
This ratio basically signifies the basic profitability of the firm. Therefore, it is one of the most
important profitability ratios. It shows the margin in the selling price before the company will
incur losses from operations. The formula is
FORMULA:
NET SALES
GROSS
203.50 260.02 116.11 93.42 31.63
PROFIT
GROSS
PROFIT 4.94 4.64 22.38 1.71 0.644
RATIO
GROSS PROFIT RATIO
25
20
15
10
0
2016 2017 2018 2019 2020
INTERPRETATION:
The chart clearly shows that the Gross profit Ratio of the company gradually decreasing
and has not stable for past 5 years and the year 2018 is increased a lot and 2020 to be the worst
when compared to remaining years which means company decreases the sales of the year and
2018 gets Increased due to rise in production.
Net profit ratio (NP ratio) is a popular profitability ratio that shows
relationship between net profit after tax and net sales. It is computed by dividing the
net profit (aftertax) by net sales.
FORMULA: -
NET SALES
NET
PROFIT 3.35 3.09 1.94 1.27 -0.72
RATIO
NET PROFIT RATIO
4
3.5
2.5
1.5
0.5
0
2016 2017 2018 2019 2020
-0.5
-1
INTERPRETATION:
The chart clearly shows that the Net profit Ratio of the company gradually
Increasing and has not stable for past 5 years and the year 2016 is considered to be
the best when compared to remaining years which means company decrease the sales
of the year and 2018 and 2019 gets decrease due to rise in production. And 2020 is in
decreased due to of covid 19 pandamic outbreak
NET SALES
OPERATING
PROFIT 1.99 1.96 9.01 1.21 0.95
RATIOS
OPERATING PROFIT RATIO
10
9
8
7
6
5
4
3
2
1
0
2016 2017 2018 2019 2020
INTERPREATION:
The chart clearly shows that the operating profit Ratio of the company
gradually decreases and has not stable for past 5 years and the year 2018 is
considered to be the best when compared to remaining years which means company
decrease the sales of the year and 2019 and 20120 gets decrease due to rise in
production. And 2020 is in decreased due to of covid 19 pandamic outbreak
CAPITAL EMPLOYED
OPERATING
769.72 861.03 692.81 637.92 585.22
PROFIT
CAPITAL
6020.33 8,333.93 8,842.63 8,683.20 8,614.50
EMPLOYED
ROCE
12.7 10.33 7.83 7.3 6.79
RATIO
RETURN ON CAPITAL EMPLOYED RATIO
14
12
10
Series 1
6
0
2016 2017 2018 2019 2020
INTERPREATION:
The chart clearly shows that the return on capital employed ratio profit Ratio
of the company gradually increases and has not stable for past 5 years and the year
2018 is decreased when compared to past two years which means company decrease
the sales of the year and 2019 and 20120 gets decrease due to rise in production. And
2020 is in decreased due to of covid 19 pandamic outbreaks
E).EXPENSE RATIO:
The expense ratio (ER), also sometimes known as the management expense
ratio (MER), measures how much of a fund's assets are used for administrative and
other operating expenses. An expense ratio is determined by dividing a fund's
operating expenses by the average dollar value of its assets under management
(AUM). Operating expenses reduce the fund's assets, thereby reducing the return to
investors
FORMULA:
SPECIFIC
3685.1 5183.31 4863.23 5262.56 4743.44
EXPENSE
NET
38504.21 43897.44 56916.92 66295.83 61047.77
SALES
SPECIFIC
EXPENSE 9.57 11.80 8.544 7.93 7.77
RATIOS
EXPENSE RATIO
14
12
10
Series 1
6
0
2016 2017 2018 2019 2020
INTERPRETATION:
The above table shows the expenses ratio is varies every year. The company didn’t
maintained stable and fluctuating. The highest trend earned in 2017 which means company made
expense on administration .etc and 2020 is lowest as compared with other financial years. It’s a
good sign the ratio earned in last 2 years was low which means company reduced their expense
SHAREHOLDER
3,648.31 5,108.93 5,200.33 5,239.70 5,414.91
FUND
RETURN ON
SHAREHOLDERS 3.77 3.39 1.93 1.92 0.65
FUND
RETURN ON SHARE HOLDERS FUND
4
3.5
2.5
2
Series 1
1.5
0.5
0
2016 2017 2018 2019 2020
INTERPRETATION:
The above table clearly states that there is been Increase in percentage from
2016 and decreasing percentage in 2019. So there is fluctuating ratio over the period.
However shown a Increasing percentage which means the trend must be improved.
The company clearly tries to increase their fund as we compared with 2016 2017
and 2018.
NO.OF.EQUITY
NET PROFIT
BEFORE TAX 137.81 173.35 100.62 69.44 -35.51
&DIVIDEND
NO.OF
307.18 307.18 308.15 309.90 309.90
.EQUITY
50
40
30
20 Series 1
10
0
2016 2017 2018 2019 2020
-10
-20
INTERPRETATION:
The chart shows that trend is fluctuating in the past 5 years and Earning per share of 2016
is less in percentage when compared with 2017. Generally higher the ratio is considered better.
2017 is highest trend range which means company’s share price has been increased in the market
during the year.
Proprietary Ratio:
It expresses the relationship between the proprietor’s funds, i.e. the funds of
all the shareholders and the capital employed or the net assets. Like the debt ratio
shows us the comparison between debt and capital, this ratio shows the comparison
between owner’s funds and total capital or net assets
FORMULA:
TANGIBLE ASSETS
SHAREHOLDERS
3648.31 5108.93 5200.33 5239.70 5414.91
FUND
TOTAL
TANGIBLE 3,384.38 6,948.84 6,769.68 6,680.03 6,770.25
ASSETS
PROPRIETARY
107.7 73.52 76.8 78.43 79.98
RATIOS
PROPRIETARY RATIO
120
100
80
60
40
20
0
2016 2019 2018 2019 2020
INTERPRETATION:
The above table clearly shows the there is an enormous rise in the percentage
of proprietary fund in 2016 and reduced in the following years respectively. From
2016-2020 there is constant decreasing level. The trend has been fluctuating which it
clearly shows company has to improve proprietary ratio.
TOTAL
2405.24 2681.43 2972.83 2980.49 3116.9
DEBT
TOTAL
TANGIBLE 3,384.38 6,948.84 6,769.68 6,680.03 6,770.25
ASSETS
TOTAL
DEBT 71.06 38.62 43.91 44.61 46.0
RATIOS
TOTAL DEBIT RATIO
80
70
60
50
40
TOTAL DEBIT RATIO
30
20
10
0
2016 2017 2018 2019 2020
INTERPRETATION:
From the above table we can see that the ratio of 2016 is increased and then
got decreased only on 2017 and the coming year there is slight increase in 2018 and
2019. The company has shown highest total debt in 2016 as compared with
remaining years which means the long term solvency position of the company has
been fluctuating.
The debt to equity ratio measures the relationship between long-term debt of a
firmand its total equity. Since both these figures are obtained from the balance sheet
itself, this is a balance sheet ratio.
FORMULA: -
LONG TERM
1,935.46 2,379.66 2,818.00 2,643.30 2,374.99
DEBT
SHAREHOLDERS
3,648.31 5,108.93 5,200.33 5,239.70 5414.91
FUND
DEBT EQUITY
53.05 46.57 54.18 50.44 43.86
RATIO
DEBT EQUITY RATIO
60
50
40
30
DEBIT EQUITY RATIO
20
10
0
2016 2017 2018 2019 2020
INTERPRETATION:
As the above table shows that there is gradual increase in every year. And
2018 shows highest trend value and 2020 remains lowest as compared with other
financial years and there is slight decrease in trend value between 2016 and 2017.
Hence the debt equity ratio is constantly increasing without any fluctuation.
TURNOVER RATIO
AVERAGE
WORKING 4508.08 6635.33 7083.02 -2124.15 -2176.49
CAPITAL
CAPITAL
TURNOVER 0.91 0.843 0.73 -2.57 -2.25
RATIO
CAPITAL TURNOVER RATIO
1.5
0.5
0
2016 2017 2018 2019 2020
-0.5
CAPITAL TURNOVER RATIO
-1
-1.5
-2
-2.5
-3
INTERPRETATION
From the above figure we see the capital turnover ratio is decreasing from
2019 to 2020. Working capital turnover is a ratio that measures how efficiently a
company is using its working capital to support sales and growth from the above
analysis company is not using the working capital properly to support sales and
growth and it gets worst.The capital turnover ratio keeps decreasing at the end.
AVERAGE ASSETS
AVERAGE
4911.81 9439.79 10685.53 10915.40 11278.72
ASSETS
INVENTORY
TURNOVER 0.83 0.59 0.48 0.50 0.43
RATIO
INVENTORY TURNOVER RATIO
0.9
0.8
0.7
0.6
0.5
0.3
0.2
0.1
0
2016 2017 2018 2019 2020
INTERPRETATION:
From the above figure there is a huge rise in inventory turnover ratio on 2016
and decrease in 2020. The ratio is fluctuating throught out the year. The highest is
2016 and lowest is 2020.The company had fast turnover during the period 2016 to
2019 which indicate how many times the company can replace the sold goods in
inventory and 2020 is slow turnover compare to previous 2 years .
AVERAGE
CAPITAL 6020.33 8,333.93 8,842.63 8,683.20 8,614.50
EMPLOYED
CAPITAL
EMPLOYED
0.68 0.07 0.05 0.62 0.56
TURNOVER
RATIO
CAPITAL EMPLOYED TURNOVER RATIO
0.8
0.7
0.6
0.5
0.2
0.1
0
2016 2017 2018 2019 2020
INTERPRETATION:
From the above figure we can tell there is rise in capital employed in
company from 2016 and huge decrease in capital employed in 2017 2018. The
highest is 2016. Eventhough there is a increase in capital investment 2016 the capital
investment started decreasing in 2017 the company need to start invest more . The
capital employed ratio is fluctuating through out the years
AVERAGE
FIXED 70,853.17 73,560.86 77,006.98 77,372.71 77,770.60
ASSETS
FIXED
ASSETS
0.05 0.07 0.06 0.07 0.06
TURNOVER
RATIO
FIXED ASSTES TURN OVER RATIO
0.08
0.07
0.06
0.05
0.02
0.01
0
2016 2017 2018 2019 2020
INTERPRETATION
From the above figure we can see the changing values of fixed assets turnover
ratio. From 2016 to 2019 the fixed asset turnover keep increasing and at 2020 it
decreases. The highest is 2017 and the lowest is 2016. The fixed assets turnover
helps you to find the sales obtained from the fixed assets like plants, machinery etc
from the above analysis from 2016 to 2019 the sales has been increased which
causes more profit and in 2020 sales is decreased which results in low profit . Fromthis
company should increase there fixed asset or production to obtain more profits.
AVERAGE RECEIVABLES
AVERAGE
4,118.64 5,594.41 5,187.64 5,460.83 4,909.02
RECEIVABLES
DEBTOR’S
TURNOVER 9.34 7.84 10.97 12.14 12.43
RATIO
Note = Here we are taking the sales (revenue from operation) has credit sales fully
DEBTOR'S TURNOVER RATIO
14
12
10
0
2016 2017 2018 2019 2020
INTERPRETATION
From the above figure we can see the changes in debtor turnover ratio. The
debtor’ turnover ratio keep decreasing from 2016 to 2019 and increased on 2020.
Highest is 2018 and lowest is 2020. Debtor’s turnover ratio is analysis of a
company's effectiveness in collecting its accounts receivables or the money owed to
it by its customers or clients. During the period of 2016 to 2019 the DTR is
decreased because the company is good at collection of accounts receivable and has
a low proportion of quality customers that pay their debts quickly. During the period
2019 and 2020 the DTR is increasing which indicates poor collection of receivables.
CHAPTER 4
STATISTICAL ANALYSIS
Statistical analysis can be broken down into five discrete steps, as follows:
● Create a model to summarize understanding of how the data relates to the underlying
population.
● Employ predictive analytics to run scenarios that will help guide future actions.
The goal of statistical analysis is to identify trends. A retail business, for example, might
use statistical analysis to find patterns in unstructured and semi-structured customer data that can
be used to create a more positive customer experience and increase sales.
Statistical analyzes are frequently used in business for company valuations and in many business
decisions, such as stock holding and assessment. Stock volatility is one area where businesses
frequently use this analysis to derive results. Businesses also analyze this data during risk
management in order to assess the probability of a certain risk being incurred by a company and
how substantial the risk may be. Companies also use regression formulas in order to test some of
their more general hypotheses about the effect of a certain factor on their assets or market price
of stock.
Example
Johnny owns a social media company, FriendKeeper. Since its inception in 2005, the social
media company has grown to unprecedented heights and is now a global force. However,
recently Johnny has noticed that general membership on the website has declined in addition to
new sign-ups. Johnny believes that one of the primary causes of this decline in numbers is due to
the prevalence of news coverage by popular news sources on the ills of social media coverage.
He decides to test this hypothesis. Johnny will thus take the following steps.
TREND ANALYSIS
Trend analysis is a technique used in technical analysis that attempts to predict the future
stock price movements based on recently observed trend data. Trend analysis is based on the idea
that what has happened in the past gives traders an idea of what will happen in the future. There
are three main types of trends: short-, intermediate- and long-term.
Sales trend analysis is the review of historical revenue results to detect patterns. It is
a useful budgeting and financial analysis method that can indicate the onset of changes in
the near-term revenue growth rates of a business. It is rarely adequate to simply plot the
total sales of a business on a trend line and expect to obtain any significant information
from it.
TABLE: SHOWING SALES TREND ANALYSIS
SALES
YEAR TREND VALUE
(in crores)
140
120
100
80
SALES TREND VALUE
60
40
20
0
2016 2017 2018 2019 2020
2) NET PROFIT TREND ANALYSIS:
The net profit margin, or simply net margin, is equal to how much net income or profit is
generated as a percentage of revenue. Net profit margin is the ratio of net profits to revenues for
a company or business segment. Net profit margin measures how much net income is generated
as a percentage of revenues received.Net profit margin helps investors assess if a company's
management is generating enough profit from its sales and whether operating costs and overhead
costs are being contained. Net profit margin is one of the most important indicators of a
company's overall financial health.
NET PROFIT
YEAR TREND VALUE
(in crore)
120
100
80
60
NET PROFIT TREND VALUE
40
20
0
2016 2017 2018 2019 2020
-20
-40
Working capital
YEAR TREND VALUE
(in crores)
200
WORKING CAPITAL TREND VALUE
150
100
50
WORKI
0 NG…
2016 2017 2018 2019 2020
-50
-100
4) NET WORTH TREND ANALYSIS:
Net worth is a quantitative concept that measures the value of an entity and can apply to
individuals, corporations, sectors, and even countries.Net worth provides a snapshot of an
entity's current financial position. In business, net worth is also known as book value or
shareholders' equity. People with substantial net worth are called high-net-worth individuals.
NET WORTH
YEAR TREND VALUE
(in crores)
100
80
60
NET WORTH TREND VALUE
40
20
0
2016 2017 2018 2019 2020
DIVIDEND TREND
YEAR TREND VALUE
(in crores)
120
100
80
40
20
0
2016 2017 2018 2019 2020
CORRELATION ANALYSIS
If correlation is found between two variables it means that when there is a systematic change in
one variable, there is also a systematic change in the other; the variables alter together over a
certain period of time. If there is correlation found, depending upon the numerical values
measured, this can be either positive or negative.
● Positive correlation exists if one variable increases simultaneously with the other, i.e. the
high numerical values of one variable relate to the high numerical values of the other.
● Negative correlation exists if one variable decreases when the other increases, i.e. the
high numerical values of one variable relate to the low numerical values of the other.
Pearson’s product-moment coefficient is the measurement of correlation and ranges
(depending on the correlation) between +1 and -1. +1 indicates the strongest positive
correlation possible, and -1 indicates the strongest negative correlation possible.
Therefore the closer the coefficient to either of these numbers the stronger the correlation
of the data it represents. On this scale 0 indicates no correlation, hence values closer to
zero highlight weaker/poorer correlation than those closer to +1/-1.
● If there is correlation between two numerical sets of data, positive or negative, the
coefficient worked out can allow you to predict future trends between the two variables.
However, you must remember that you cannot be 100% sure that your prediction will be
correct because correlation does not determine cause or effect.
YEAR X Y XY XX YY
∑𝑿𝒀
r= = 0.061
√∑𝑿𝟐 ∑𝒀𝟐
INTERPRETATION
The net sales and net profit correlation analysis states that, from the year 2016 to 2020
the company is in good condition. As the company increasing its net sales and net profit year by
year there is loss incurred by the company. As a result the company is managing its operation
effectively.
YEAR X Y XY XX YY
∑𝑿𝒀
r= = 0.716
√∑𝑿𝟐 ∑𝒀𝟐
INTERPRETATION
The net sales and dividend correlation analysis states that from the year 2016 to 2020 the
company is in good condition.As increase in net sales every year net profit of the company is
also increasing so that the company is able to declare dividend every year and also able to
increase its dividend amount year by year.
NET PROFIT AND DIVIDEND CORRELATION ANALYSIS
YEAR X Y XY XX YY
∑𝑿𝒀
r= = 0.132414
√∑𝑿𝟐 ∑𝒀𝟐
INTERPRETATION
The net profit and dividend correlation analysis states that, from the year 2016 to 2020
the company is in good condition. As increase in net sales every year net profit of the company
is also increasing so that the company is able to declare dividend every year and also able to
increase its dividend amount year by year.
WORKING CAPITAL AND NET PROFIT CORRELATION ANALYSIS
YEAR X Y XY XX YY
∑𝑿𝒀
r= = 0.796275
√∑𝑿𝟐 ∑𝒀𝟐
INTERPRETATION
The working capital and net profit analysis states that, from the year 2016 to 2020 the
company as ability in the short run to increase its cash flow within its organization. As a result
the company can able to increase its sales every year.
RETURN ON INVESTMENTCORRELATION ANALYSIS
YEAR X Y XY XX YY
∑𝑿𝒀
r= = -0.90463
√∑𝑿𝟐 ∑𝒀𝟐
INTERPRETATION
The return on investment states that, from the year 2016 to 2020 the company as ability
in the short run to increase its cash flow within its organization. As a result the company can able
to increase its sales every year.
CHAPTER 5
The asset value of the year 2016 is increased from the 2015 of 11.06%. This proves that
the company is in good condition and it can dissolve the debt on its own. The loan amount taken
is decreased when compared to the previous year. This comparative balance sheet shows that the
company is progressive well in current year than in previous year.
The asset value of the year 2017 is increased from the 2016. This proves that the company is in
good condition and it can dissolve the debt on its own. The liability of the company is increased
by 1.96% in 2017. This comparative balance sheet in 2017 shows that the company is in good
condition.
The asset value of the year 2018 is increased from the 2017 by 65.17%. This proves that
the company is in good condition and it can dissolve the debt on its own. The liability of the
company is also equally increased by 65%. So it shows that there is no change in performance of
the company in 2018. This comparative balance sheet shows that the company is progressive
well
The asset value of the year 2019 is increased from the year 2018 by 4.28%. This proves
that the company is in good condition and it can dissolve the debt on its own. The liability of the
company is also increased by 7.2% in 2019. So as a result there is no change in performance of
the company. It is in a god condition. This comparative balance sheet shows that the company is
progressive well
The asset value of the year 2020 is increased from the year 2019 by 22.14%. This proves
that the company is in good condition and it can dissolve the debt on its own. The liability of the
company is also increased by 22% in 2019. So as a result there is no change in performance of
the company. It is in a good condition. This comparative balance sheet shows that the company
is progressive well.
The net profit of the year 2016 is increased from the year 2015 by 4.11%. The operating
profit has hiked up to 3.89%. The increase in the net profit states that the organization is doing
well in the management.
The net profit of the year 2017 is increased from the year 2016. The net profit is
increased by 10.21%. The increase in the net profit states that the organization is doing well in
the management.
The net profit of the year 2018 is decreased from the year 2017. The net profit is
decreased by 13.38%. And the organization has to control its expenses. Decrease in net profit
states that the organization is not doing well in the management.
The net profit of the year 2019 is decreased from the year 2018. The net profit is
decreased from 30.7%. Again the company has to control its expenses in order to increase
operating profit. Thus in this comparative profit & loss a/c states that they are not managing well
in term of net profit but has to improve operating profit by reducing expenses.
The net profit of the year 2020 is decreased from the year 2019. The net profit is
decreased from 44.7% in 2020. Thus this comparative profit & loss a/c states that the company
managing its operation effectively. By increasing its net profit and reducing its expenses.
From the year 2016 to 2020 we can able to see that there is a slight increase in current
ratio. But in 2020 as company current liabilities are increased the current ratio for that year alone
reduced.
From the year 2016 to 2020 we can able to see that there is a slight increase in quick ratio
for every year. But in 2020 as company current liabilities are increased the quick ratio for 2020
alone reduced.
From the year 2016 to 2020 we can able to see that there is a increase in quick ratio by
every year. But in 2020 as the company current liabilities are increased the absolute liquid ratio
for that year alone reduced.
From the year 2016 to 2020 we can able to see that there is a sharp incline in net profit
ratio
From the year 2016 to 2020 we can able to see that, gross profit ratio values are positive.
But the profit for every fluctuates it indicates that cost of goods Sold for those year must be
controlled.
From the year 2016 to 2020 we can able to see that, fixed asset turnover ratio values are
positive. This ratio indicates that company utilized its fixed asset effectively utilized to generate
revenue.
From the year 2016 to 2020 we can able to see that, debtor turnover ratio values are
positive. But the company has to quickly convert its credit sale into cash because the ratio for
2017 to 2020 are very low compared to 2016.
From the year 2016 to 2020 we can able to see that, average collection period ratio values
are increasing every year. So that the company has to reduce its collection period in order to
increase cash flow within its organization.
From the year 2016 to 2020 we can able to see that, inventory turnover ratio values are
positive. It is clearly indicating that the company is effectively converting its inventory to sales.
From the year 2016 to 2020 we can able to see that, creditor turnover ratio values are
positive. This indicates that the company paying its debts to suppliers regularly.
From the year 2016 to 2020 we can able to see that, average collection period ratio values
are positive. And it is clearly indicating that the company managing its accounts receivable
effectively.
From the year 2016 to 2019 we can able to see that, average proprietary ratio values are
positive. But in 2020 the ratios are drastically reduced it indicates that the company is using less
amount of equity to finance it asset.
From the year 2017 to 2020 we can able to see that, fixed asset to proprietary ratio values
are reduced. This analysis clearly indicates that lesser amount of proprietary fund has been used
to finance fixed assets.
From the year 2016 to 2020 we can able to see that, current asset to proprietary ratio
values positive. This analysis clearly indicates that considerable portion of amount of proprietary
fund has been used to finance current assets
SUGGESTIONS
Moreover the primary focus for company is to increase sales due to that the company
receivables are pending.
As the company is facing more profit in past year the company can finance its
operation through debt. As debt is the cheapest source for raising capital.
As company managing its operation effectively, the company has ability to expand
operation domestically.
The company has to focus on more cash flow in to the organization in order to
increase the profit.
The operating expenses must be reduced so that the company can increase operating
income.
Financing asset through debt may be a risk for a company so the company has to
finance in debt.
Dividend amount for equity share holders must be reduced and those amount can be
used for investing in securities.
As a profitable company in India it has the ability to provide services to foreign countries
like ship repairing and ship building.
The company may prepare budgets for each activity which will provide it a better
controls and coordination mechanism. This will aid in reduction of production costs.
The company may introduce more measures such as fencing of machineries, which will
protect the workers from accidents.
The company has to follow more security measures because there is a risk of the fire in
the factory layouThe profitability ratios show that the operational performance of the
company is better than the previous financial years.The current ratio indicates that the
company has strong solvency position in the market and it is proved.The proprietary ratio
is at peak, which indicates that the company has a sufficient amount of equity to support
the functions of the company.
The Turnover ratio are higher than the previous financial year, which indicates that
the operational efficiency of the company is better.
It is found that the trend percentage of Sales, Net Profit and Net Worth shows higher
trend than the previous financial year.
It is found that the trend percentage of Working Capital shows increasing trend for all
years.
CONCLUSION
Indian cement is on of the first yards and largest in India to use the Integrated Hull
Outfitting and painting (IHOP) system in construction. Under this technology the ship is
constructed in modules, fully outfitted and painted before assembly. This method of
construction. Besides, the yard was also one of the first shipyard to adopt the Tribon software for
ship design and introducing CAD/CAM. Not only that, presently, the Cochin Shipyard is the
only one in India that has the capability to build large and modern ships. Another credit is that it
is one and only profit making ship industry in India. Another credit is that it is one and only
profit making ship industry in India. It is important to acknowledge and appreciate the historical
role played by CSL in the realm of growth of ship building in our country and has overcome
some of its constraints.
CHAPTER 6
ANNEXURE
INCOME
EXPENSES
Cost Of Materials Consumed 925.88 1,044.40 901.38 895.65 686.32
PROFIT/LOSS BEFORE
EXCEPTIONAL, EXTRAORDINARY 31.63 93.42 116.11 260.02 203.50
ITEMS AND TAX
TAX EXPENSES-CONTINUED
OPERATIONS
SHAREHOLDER'S FUNDS
TOTAL SHAREHOLDERS
5,414.91 5,239.70 5,200.33 5,108.93 3,648.31
FUNDS
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
TOTAL CURRENT
2,837.93 2,421.82 1,883.16 2,311.35 2,213.98
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Long Term Loans And Advances 1,125.09 1,027.33 1,042.73 896.30 1,635.05
TOTAL NON-CURRENT
9,275.94 8,980.87 8,966.18 8,946.68 6,722.06
ASSETS
CURRENT ASSETS
Short Term Loans And Advances 43.81 42.81 42.81 51.31 399.94
12 12 12 12 12
mths mths mths mths mths
Net CashFlow From Operating Activities 413.92 316.38 468.47 812.06 840.15
- - - - -
Net Cash Used In Investing Activities
340.26 240.38 294.19 187.64 114.61
- - -
Net Cash Used From Financing Activities -73.77 -77.64
172.68 624.32 725.77
Cash And Cash Equivalents Begin of Year 6.73 8.37 6.78 6.67 3.93
Cash And Cash Equivalents End Of Year 6.63 6.73 8.37 6.78 3.69