A STUDY ON FINANCIAL POSITION OF RATIO ANALYSIS AT

MARUTI INDANE CHENNAI

Project report submitted to

UNIVERSITY OF MADRAS

In partial fulfilment of requirement for the award of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

NITHISHA.A (412002272)

SOWMIYA.R (412002273)

Under the guidance of

V SENTHIL MURUGAN B.COM., M.B.A

FACULTY GUIDE

DEPARTMENT OF BUSINESS ADMINISTRATION

MAR GREGORIOS ARTS AND SCIENCE COLLEGE

(Affiliated to University of Madras)

MARCH 2023
 DECLARATION

I declare that this this is titled “STUDY ON FINANCIAL POSITION OF RATIO ANALYSIS
AT MARUTI INDANE COMPANY. submitted by me in partial fulfillment of the requirement
for the degree of BACHELOR OF BUSINESS ADMINISTRATION BY A.NITHISHA
(412002272), R. SOWMIYA(412002273) is the record project work carried out by me during
the period MARCH 2023 under the supervision and guidance of This is my original Project
work and has not previously formed the basis of the award for any degree, diploma,
Associateship, Fellowship or other Titles in this university or any other University or other
similar institution of Higher Learning.

PLACE: CHENNAI NITHISHA. A (412002272)

DATE:

SOWMIYA. R (412002273)
 COLLEGE CERTIFICATE

I certify that the Project work entitled “STUDY ON FINANCIAL POSITION ON

RATIO ANALYSIS AT MARUTI INDANE CHENNAI,” submitted for the degree of
BACHELOR OF BUSINESS
ADMINISTRATION by A. NITHISHA (412002272), R. SOWMIYA (412002273) is the
record of Project work carried out by them during the period March – 2023 under my
guidance and supervision, and that this work has not formed the basis for the award of
any Degree, Diploma, Associateship, Fellowship or other Titles in this university or any
other University or other similar institution of Higher Learning.

FACULTY GUIDE

HEAD OF THE DEPARTMENT

INTERNAL EXAMINER EXTERNAL

EXAMINER
 ACKNOWLEDGEMENT

First and foremost, we would like to thank the almighty for showering his blessing on us to
carry out our assignment and all our endeavours.
We wish to offer our grateful thanks to our Honourable Secretary REV. FR. MATHEW
PALLIKUNNEL
For his inspiring encouragement and blessings for completion of the Research work Our deep
sense of gratitude goes to our principal DR. M. SIVARAJAN for monitoring us towards
Excellence in pursuit of our goal.
We express our profound gratitude to our Head of the department. Dr. 1. M. CHRISTINA
FEBIULA for permitting us to undergo our research work. We express our deep sense of
gratitude to our Project Guide Prof Mr. V. SENTHIL MURUGAN for providing scholarly
guidance and encouragement at every stage of the study. We are grateful to our faculty
members of the Department of Business Administration shift II,
Prof Mr. M. RAMU, Ms. S. RAJA LAKSHMI, for being approachable and helpful.
Finally, we wish to express our sincere thanks to the marketing team of MARUTI INDANE
COMPANY, for providing us the necessary training &
Information for the successful completion of our research. Last but not least, we would like to
thank our parents who supported us financially & all the Other good souls who were back to
support us in our study period.

PLACE: CHENNAI NITHISHA. A (412002272)

DATE:

SOWMIYA. R (412002273)
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-8

CHAPTER 2 REVIEW OF LTRATURE 9-12

CHAPTER 3 INDUSTRY AND 13-15

COMPANY PROFILE
CHAPTER 4 RESEARCH 16-23
METHODOLOGY
CHAPTER 5 DATA ANALYSIS 24-53
AND
INTERPRETATION
CHAPTER 6 FINDINGS, SUGGESTIONS 54-56
& CONCLUSION
ANNEXURE
 LIST OF CHARTS

FIGURE TITLE PAGE

NO: NO:
1 Chart showing current ratio 24

2 Chart showing quick ratio 26

3 Chart showing cash ratio 28

4 Chart showing net working capital ratio 30

5 Chart showing debt ratio 32

6 Chart showing debt equity ratio 34

7 Chart showing interest coverage ratio 36

8 Chart showing total liability ratio 38

9 Chart showing inventory turnover ratio 40

10 Chart showing debtors turnover ratio 42

11 Chart showing fixed asset turnover ratio 44

12 Chart showing current asset turnover ratio 46

13 Chart showing total asset turnover ratio 48

14 Chart showing net asset turnover ratio 50

15 Chart showing working capital turnover ratio 52

 CHAPTER – I
INTRODUCTION

1
 INTRODUCTION

Financial statements are formal records of financial activities and position of a business,
person or other entity. These statements include standard report like balance sheet, profit and
loss statement, and cash flow statement. They stand as one of the most essential components
of business information about the entity to outside parties. In a technical sense, financial
statements are a summation of the financial position of the entity at a given point of time.
Generally, financial statements are designed to meet the needs of many diverse users,
particularly present and potential owners and creditors.
The ultimate determinant to success of any firm is its ability to run its affairs effectively in
order to remain in perpetuity and as such the importance of continual generation of profit
cannot be overemphasized. Going concern is an accounting concept this is because a
continuous lift is anticipated for the firm within foreseeable future.
Financial Analysis is a process of assessing the viability, stability and as well as
profitability of an organization. Financial analysis is the process of identifying the financial
strength and weakness of the firm by properly establishing relationship between the items of
the balance sheet and the profit and loss account (Pandey, 1991). Analysis of financial
statement is of interest to lenders, security analysts, mangers and others.
Financial management is the specific area of finance dealing with the financial decision
corporations make, and the tools and analysis is used to make the decisions. The discipline as
a whole may be divided between long-term and short-term decisions and techniques. Both
share the same goal of enhancing firm value by ensuring that return on capital exceeds cost
of capital, without taking excessive financial risks.
Capital investment decisions comprise the long-term choices about which projects receive
investment, whether to finance that investment with equity or debt, and when or whether to
pay dividends to shareholders.
Short-term corporate finance decisions are called working capital management and deal
with balance of current assets and current liabilities by managing cash, inventories, and short-
term borrowings and lending (e.g., the credit terms extended to customers).
Corporate finance is closely related to managerial finance, which is slightly broader in
scope, describing the financial techniques available to all forms of business enterprise,
corporate or not.
The ratio analysis is the most powerful tool of financial analysis. Several ratios calculated
from the accounting data can be grouped into various classes according to financial activity
or function to be evaluated.
 DEFINITION
“The indicate quotient of two mathematical expressions “and as “The relationship between
two or more things. “It evaluates the financial position and performance of the firm. As
started in the beginning many diverse groups of people are interested in analysing financial
1
information to indicate the operating and financial efficiency and growth of firm. These
people use ratios to determine those financial characteristics of firm in which they interested
with the help of ratios one can determine.
 The ability of the firm to meet its current obligations.
 The extent to which the firm has used its long-term solvency by borrowing funds.
 The efficiency with which the firm is utilizing its assets in generating the sales
revenue.
 The overall operating efficiency and performance of firm.
The information contained in these statements is used by management, creditors, investors
and others to form judgment about the operating performance and financial position of firm.
Uses of financial statement can get further insight about financial strength and weakness of
the firm if they properly analyse information reported in these statements.
Management should be particularly interested in knowing financial strength of the firm to
make their best use and to be able to spot out financial weaknesses of the firm to take suitable
corrective actions. The further plans firm should be laid down in new of the firm’s financial
strength and weaknesses.
Thus financial analysis is the starting point for making plans before using any
sophisticated forecasting and planning procedures. Understanding the past is a prerequisite
for anticipating the future.
Financial Management is the specific area of finance dealing with the financial decision
corporations make, and the tools and analysis used to make the decisions. The discipline as a
whole may be divided between long-term and short-term decisions and techniques. Both
share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of
capital, without taking excessive financial risks. Capital - investment decisions comprise the
long-term choices about which projects receive investment, whether to finance that
investment with equity or debt, and when or whether to pay dividends to shareholders.
Short-term corporate finance decisions are called working capital management and deal
with balance of current assets and current liabilities by managing cash, inventories, and short-
term borrowings and lending (e.g., the credit terms extended to customers).
Corporate finance is closely related to managerial finance, which is slightly broader in
scope, describing the financial techniques available to all forms of business enterprise,
corporate or not
The main aim of this project is in learning practical knowledge and understanding the
concept, that make students give an opportunity for change to recognize and study the
organisation plays different activities which helps the student to learn about different
department activities carried in the organisation. This study will help to improve the
knowledge and future aspects to guide their progress. They can also manage different
challenges to perform better and helps to make decision from their experience learn in this
project. Naranja sahakari sakkare karkhane Ltd. Provided opportunity for the period of 6
weeks, where they trained some of the basic concepts which helped to gain knowledge. The
2
financial analysis one of the important things to take used tool. This ratio analysis is used to
know financial position of company. The project report is a systematic study of real
associated analysis of problem intended to resolve the problems with application of analysis
conceptual experience.
Financial statements aim at providing financial information about a business enterprise to
meet the information needs of the decision-makers. Financial statements prepared by a
business enterprise in the corporate sector are published and are available to the decision-
makers.
These statements provide financial data which require analysis, comparison and
interpretation for taking decision by the external as well as internal users of accounting
information. This act is termed as financial statement analysis. It is regarded as an integral
and important part of accounting. As indicated in the previous chapter, the most commonly
used techniques of financial statements analysis are comparative statements, common size
statements, trend analysis, accounting ratios and cash flow analysis.
The first three have been discussed in detail in the previous chapter. This chapter covers
the technique of accounting ratios for analysing the information contained in financial
statements for assessing the solvency, efficiency and profitability of the enterprises.
The Financial Statements for the month of November 2012 has been extracted from the
Accounting software MYOB. Three types of ratios, namely, profitability, liquidity and
investment ratios have been used to critically assess the performance of Sports Station, a
partnership business.
The ratios have been computed and analysed based on the figures generated by main
financial statements and reports such as the Trial balance, Profit & loss statement, Balance
sheet, accounts receivables, accounts payables report among others. for the month of
November 2012 and a list of recommendations has been provided.
Ratio analysis is a quantitative procedure of obtaining a look into a firm’s functional
efficiency, liquidity, revenues, and profitability by analysing its financial records and
statements. Ratio analysis is a very important factor that will help in doing an analysis of
the fundamentals of equity.
Analysts and investors make use of the methods for ratio analysis to study and evaluate the
fiscal wellbeing of businesses by closely examining the historical performance and monetary
statements.
Comparative data and analysis can give an insight into the performance of the business over a
given period of time by comparing it with the industry standards. At the same time, it also
measures how well a business racks up against other businesses functioning in the same
sector.
the financial statements of an enterprise give us an insight into how well the organization is
being run financially, or at what position it stands. This evaluation is called financial ratio
analysis and is necessary from time to time to make comparisons between different
3
companies or industries.

The figures on an accounting record - the income statement, the balance sheet, and also the
cash flow statement - all of these are used to undertake quantitative study and evaluate a
company's liquidity, margins, leverage, growth, rates of return, profitability, and worth,
among other things.

This blog will focus on some of these major aspects of financial ratio analysis and their
importance.

4
OBJECTIVES OF STUDY
 To study and analyze the financial position of the company through ratio analysis.
 To suggest measures for improving the financial performance of organization.
 To analyze the profitability position of the company.
 To assess the return on investment.
 To analyze the asset turnover ratio.
 To determine the solvency position of company.
 To suggest measures for effective and efficient usage of inventory.

5
NEED OF THE STUDY
the study enables us to have access to various facts of the organization. It helps in
understanding the needs for the importance and advantage of materials in the organization,
the study also helps to exposure our minds to the integrated materials management the
various procedures, methods and technique adopted by the organization. The study provides
knowledge about how the theoretical aspects are put in the organization in terms of described
below.
 To pay wages and salaries
 For the [purchase of raw materials, spares and components parts.
 To incur day-to-day expenses.
 To meet selling costs such as packing, advertising.
 To provide credit facilities to customers.
 To maintain inventories and raw materials, work-in-progress and finished stock.

6
SCOPE OF STUDY
The scope of study is limited to collecting financial data published in the annual reports of
the company every year. The analysis is done to suggest the possible solutions. The study is
carried out for 4 years (2018-22)
Using the ratio analysis, firms past, present and future performance can be analyzed and
this study has been divided as short term analysis and long term analysis. The firm should
generate enough profits not only to meet the expectations of owner, but also to expansion
activities.

7
LIMITATIONS OF STUDY
 The study was limited to only four years’ financial data.
 The study is purely based on secondary data which were taken primarily from
published annual reports of maruthi indane gas ltd.,
 There is no set industry standard for comparison and hence the interface is made
on general standards.
 The ratio is calculated from past financial statements and these are not indicators
of future.
 The study is based on only on the past records.
 Non availability of required data to analysis the performance.
 The short span of the time provided also one of limitations.

8
 CHAPTER - II
REVIEW OF LITRATURE

2
REVIEW OF LITRATURE

1. Generally, decision makers always encounter problems with many criteria. For
example, if a person wants to make a holiday plan then which alternative has is the
best option on the basis of different criteria, like entertainment, accommodation,
traveling cost etc. Now days, decision makers want to take immediate decisions so
in this regard multi criteria decision making method is helpful to take decision. One
of the most important methods to take decision under multi-criteria decision making
is TOPSIS.

2. Many authors have done research on financial performance of the different

companies because it is easy to take at certain point. Barnes (1987) defined
financial ratio can be used for all kind of purposes and can help in business firm
performance

3. Bulguru (2013) studied the financial performance of ten automotive firms which is
based on Istanbul Stock Exchange Market (ISEM) between 2009-2013. The ten
financial ratios used the entropy method to determine the objective weight of each
criteria and applied TOPSIS method for evaluation of financial performance of the
automotive firms. The results showed that F-M Izmit Piston firm financial
performance ranking was consistent for all four years.

4. Arab, Mosoumi and Barati (2015) in their study, examined the financial
performance of steel industry in India which is based on the stock exchange market
in India. They chose five steel companies and used the ANOVA method on sixteen
financial ratios. The results show that all null hypotheses were rejected and showed
significant difference in the financial performance of units in the steel industry.

5. Gundoddu (2015) studied financial performance of foreign banks in turkey between

2003 to 2013. Ten banks and sixteen criteria were used for evaluation by the
TOPSIS method. Results showed that Deutsche bank had the highest performance
rank while Burgan bank and Turk land bank had the lowest financial performance
rank from 2003 to 2013

6. Wang (2008) studied and evaluated financial performance ranking of domestic

airlines in Taiwan with fuzzy TOPSIS method

7. Ertugrul and Karakasoglu (2009) found that Technique for Order preference by
similarity to ideal solution (TOPSIS) and Fuzzy Analytical hierarchy
process(FAHP) methods can be used to evaluate the performance of cement firms

9
 and also proposed methods that can be applied for evaluating the firms in other
sectors

8. Ozden (2009) used multiple criteria decision-making method, such as ELECTRE,

PROMETHEE, VIKOR and TOPSIS, in the financial performance ranking of banks
in financial analysis, and found that this method was very useful for classification
of banks according to their financial statements

9. Sun and Lin (2009) investigated the competitive advantages of shopping websites
by using TOPSIS method. Ergul (2010) based on the Istanbul energy firm’s data
concluded that TOPSIS is one of the best technique to analyse the financial health
of the company. Also Feng and Wang were of the same opinion and found out the
similar results for TOPSIS technique for Taiwanese airline industry

10. Deng et al. (2012) have investigated performance score for seven textile
companies. They evaluated each company’s financial ratio by four financial ratios
of efficiency, profitableness, debt and market position. They used entropy method
to get value of objective weight and TOPSIS method to provide ranking of
alternatives

11. Financial ratios also provide a direction for predicting future performance of
companies. TOPSIS method is widely used in literature and has covered many

12. Agarwal this study develops a single index of financial performance through
technique of multiple discriminate analysis. This study makes use of 11 ratios as a
tool for the findings of the study. The main objective of this study was to develop a
single index. The study suggests that the result of multiple discriminate analysis can
be used as a prediction of future profitability for sickness of business.

13. Vijay Kumar is determined of profitability – a firm level study of the sugar industry
of Tamil Nadu delved into the various determinants of profitability namely, growth
rate of scales, vertical integration and leverage. Apart from three variables, he had
selected current ratio, operating expenses to sales ratio and inventory turnover ratio.
Economic models where used to test the various hypothesis relating to profitability
performance, whereas on the other hand, the current liabilities were on the increase
because of poor liquidity performance of the mill.

14. Sudharshana reddy studied the financial performance of paper industry in Andhra
Pradesh. The main objective set for the study is to evaluate the financing methods
and practices to analyze investment pattern and utilization of fixed assets. The data
collected have been examined through ratios, common size balance sheet and
comparative financial statement analysis.
10
 This suggested that paper industry need the introduction of additional fund for
better operating purpose.

15. Santimoy Patra this study analyses the impact of liquidity on profitability
considering the case of Tata iron and steel company. The main objective of this
study was to find out the relationship between liquidity and profitability. Major
tools used for the study are ratio analysis correlation and regression analysis. This
study found out that there is an increasing profitability which depends upon many
factors including liquidity.

11
 CHAPTER – III
INDUSTRY
AND
COMPANY PROFILE

3
 INDUSTRY PROFILE

Oil and natural gas are major industries in the energy market and play an influential role in
the global economy as the world's primary fuel sources. The processes and systems involved
in producing and distributing oil and gas are highly complex, capital-intensive, and require
state-of-the-art technology. Historically, natural gas has been linked to oil, mainly because of
the production process or upstream side of the business. For much of the history of the
industry, natural gas was viewed as a nuisance and even today is flared in large quantities in
some parts of the world, including the United States. Natural gas has taken on a more
prominent role in the world's energy supply as a consequence of shale gas development in the
United States, as mentioned above, and its lower greenhouse gas emissions when combusted
when compared to oil and coal.
This guide looks at the business of oil and gas and is intended to serve as a research aid to
sources worldwide, with a specific emphasis on the United States. It covers a brief history of
the oil and gas industry, an overview of companies and organizations, statistic and pricing
resources, and regulations. The industry is often divided into three segments:
 upstream, the business of oil and gas exploration and production.
 midstream, transportation and storage; and
 downstream, which includes refining and marketing.

These three areas are reflected in the organization of the guide. Renewable and alternative
energy companies are discussed in our renewable and Green Business: Sources of
Information Guide. For an overview U.S. energy sources, there have been a number
of Congressional Research Service reports on renewable energy topics, including:

The oil and gas sector is among the eight core industries in India and plays a major role
in influencing the decision-making for all the other important sections of the economy.

India’s economic growth is closely related to its energy demand, therefore, the need for oil
and gas is projected to increase, thereby making the sector quite conducive for investment.
India retained its spot as the third-largest consumer of oil in the world as of 2021.

The Government has adopted several policies to fulfil the increasing demand. It has allowed
100% foreign direct investment (FDI) in many segments of the sector, including natural gas,
petroleum products and refineries, among others. The FDI limit for public sector refining
projects has been raised to 49% without any disinvestment or dilution of domestic equity in
existing PSUs. Today, it attracts both domestic and foreign investment, as attested by the
presence of companies such as Reliance Industries Ltd (RIL) and Cairn India. The industry is
expected to attract US$ 25 billion investments in exploration and production by 2022. India is
already a refining hub with 21 refineries, and expansion is planned for tapping foreign
investment in export-oriented infrastructure, including product pipelines and export
terminals.

12
 COMPANY PROFILE

INTRODUCTION

Maruthi Indane distributorship was established in 1985 by Mr. V. Vijayaraghavan in

Chennai with an objective to distribution of LPG has indane from Indian oil corporation
limited for Anna Nagar / Mogappair Areas.

HISTORY

Maruthi most important goal all these years has been to given the best possible standards
of quality customer care and it has been ongoing endeavour to pull out all stops and make
improvements where ever and whenever possible.

Maruthi caters to both Domestic and Commercial customers. The customer’s strength is
around domestic – Forty thousand customers and Non-Domestic Ten thousand customers.

Mrs. Komalam vijayaraghavan was added as a partner in 1995.

Mr. kiren KP S/O Mr. vijayaraghavan was added as partner in 2019 to take on the
business development in and around Chennai, Kanchipuram and Thiruvallur Districts.

Maruthi has been awarded indane star distributor status and also been selected as
chairman’s panel Distributor.

Quality/Quantity/Reliability and safety of the products and services delivered is always

the priority of Maruthi Indane.

13
VISION
“To be a world-class energy company known for caring and delighting the customers with
high-quality products, innovative services across domestic & international markets with
aggressive growth and delivering superior financial performance.
The company will be a model of excellence in meeting social commitment, environment,
health and safety norms and in employee welfare & relations”.

MISSION
“Maruthi indane along with its joint ventures will be a fully integrated company in the
hydrocarbons sector of exploration and production, refining and marketing; focusing on
enhancement of productivity, quality & profitability, caring for customers and employees,
caring for environment protection and cultural heritage. It will also attain scale dimensions by
diversifying into other energy-related fields and by taking up transnational operations”.

14
 CHAPTER – IV
RESEARCH
METHODOLOGY

4
INTRODUCTION
Research is the process of systematic and in-depth study or research for many particular
topic, subject or area of investigation, backed by collection, presentation and interpretation of
relevant details or data. Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done scientifically.

Research may develop hypothesis and test it. In it we study the various steps that
generally adopted by the researcher in studying his research problem along with the logic
behind them.

Research must be based on fact observable data forms a sound basis for research inductive
investigation lead better support to research finding for analysing facts a scientific
methodology of analysis must be developed and result interpreted logically.

It is necessary for the researcher to know not only the researcher method or techniques but
also the methodology. Thus, when we talk of research methodology we not only talk of the
research methods but also consider the logic behind the methods we use in the context of our
research study and explain why we are using a particular method or technique and why we
are not using others so that research results are capable of being evaluated either by the
researcher himself or others.

Research problems would result in certain conclusions by means of logical analysis which
the decision-maker may use for his action or solution.

RESEARCH DESIGN:
A research design is purely and simply the frame work plan for a study that guides the
collection and analysis of a data. In this study the researcher has adopted descriptive research
design.

ANALYTICAL RESEARCH DESIGN:

Analytical research is a specific type of research that involves critical thinking skills and.
The evaluation of facts and information relative to the research being conducted. A variety of
people including students, doctors and psychologist use analytical.

15
DATA COLLECTION:
Data collection is one of the most important aspects of research for the success of any project
accurate data is very important and necessary. The information collection through research
methodology must be accurate and relevant.

Secondary data:
Secondary data means data that are already available i.e., they refer to data which has
already been collected and analyzed by someone else. This type of data information can also
be used by the researcher for his use as second hand information sources through which
secondary data can be collected. Secondary data may either be published data or published
data.

Simple percentage can also be used to compare the relationship distribution of two or
more items. For calculations the simple percentage the following formula used.

Percentage of the respondents = Number of respondents/Total respondents*100

Period of study:
The time period of the study is 30 days.

TYPES OF RATIOS
Management is interested in evaluating every aspect of firm’s performance. In view of the
various users of ratios, we may classify them into following four important categories:

1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio

A. LIQUIDITY RATIO
A. Current ratio
B. Quick ratio
C. Cash ratio

16
 A. CURRENT RATIO

Current assets
Current ratio = -------------------------------------------------
Current liabilities

B. QUICK RATIO

Current assets - inventories

Quick ratio = --------------------------------------------
Current liabilities

C. CASH RATIO

Cash and bank balance

Cash ratio = ---------------------------------------
Current liabilities

LIVERAGE RATIOS

Financial leverage refers to the use of debt finance while debt capital is a chapter source
of finance; it is also a risker source of finance. It helps in assessing the risk arising from the
use of debt capital. Two types of ratios are commonly used to analyze financial leverage.

i. Structural ratios
&
ii. Coverage ratios

Leverage ratio can be divided into five types

i. Debt equity ratio
ii. Debt ratio
iii. Interest coverage ratio
iv. Proprietary ratio
v. Capital gearing ratio
17
1. DEBT EQUITY RATIO

Long term debts

Debt equity ratio = ----------------------------------------
Shareholders’ funds (equity)

2. DEBT RATIO

debt
Debt ratio = -----------------------------
equity

3. INTEREST COVERAGE RATIO

EBIT
Interest coverage ratio = -------------------------
interest

4. PROPRIETARY RATIO

Net worth
Proprietary ratio = ------------------------------ x 100
Total tangible assets

5. CAPITAL GEARING RATIO

Equity capital
Capital gearing ratio = ------------------------------------------------
P.S capital + debentures + loans

18
ACTIVITY RATIOS
ACTIVITY RATIOS ARE DIVIDED INTO FOUR TYPES
i. Total capital turnover ratio
ii. Working capital turnover ratio
iii. Fixed assets turnover ratio
iv. Stock turnover ratio

1. TOTAL CAPITAL TURNOVER RATIO

sales
Total asset turnover ratio = ----------------------------------
Capital employed

2. WORKING CAPITAL TURNOVER RATIO

sales
Working capital turnover ratio = --------------------------------
Working capital

3. FIXED ASSET TURNOVER RATIO

Net sales
Fixed asset turnover ratio = ----------------------------------
Net fixed asset

19
4. STOCK TURNOVER RATIO

Cost of goods sold

Stock turnover ratio = ------------------------------------
Average stock

Opening stock + closing stock

Average stock = --------------------------------------------------
2

20
 CHAPTER - V
DATA ANALYSIS
AND
INTERPRETATION

5
LIQUIDITY RATIO’S
1. CURRENT RATIO:

Current assets
Current ratio = -------------------------------------------
Current liabilities

The ratio between all current assets and all current liabilities; another way of expressing
liquidity. It is a measure of the firm’s short-term solvency. It indicates the availability of
current assets in rupees for every one rupee of current liability. A ratio of greater than one
means that the firm has more current assets than more current claims against them.

TABLE – CURRENT RATIO

YEAR CURRENT CURRENT CURRENT RATIO

ASSETS LIABILITIES

2018-2019 1,612,642,497 638,958,266 2.52

2019-2020 2,280,704,176 1,181,003,846 1.93

2020-2021 3,500,193,294 1,312,272,610 2.67

2021-2022 5,975,961,025 2,020,744,952 2.96

21
Graph - current ratio

3.5

2.5

1.5

0.5

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
The standard norm for current ratio is 2:1 during the year 2018 the ratio is 2.52 and it has
decreased to 1.93 during the year 2019 and increased to 2.67 in 2008 and it is increased to
2.67 in the year 2020 and it has increased to 2.96 in the year 2021. The ratio above was
standard except in the year 2022. So the ratio was satisfactory.

22
 2. QUICK RATIO:
Quick ratio establishes a relationship between quick, or liquid, assets and current
liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon
without a loss of value.

Current assets - inventories

Quick ratio = -------------------------------------------
Current liabilities

TABLE - QUICK RATIO

YEAR QUICK ASSETS CURRENT LIABILITIES QUICK RATIO

2018-19 1,171,683,584 638,958,266 1.83

2019-20 1,708,741,955 1,181,003,846 1.45

2020-21 2,578,479,879 1,312,272,610 1.96

2021-22 4,032,625,321 2,020,744,952 1.99

23
GRAPH - QUICK RATIO

2.5

1.5

0.5

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
The standard norm for the quick ratio is 1:1 quick ratio is decreased in the year 2019 to
1.83 from 2.45. then, it decreased to 1.45 in the year 2020. And it has increased to 1.96 in the
year 2021 and then it increased to 1.99 in the year 2022. However, the ratio was above the
standard norm so the ratio was satisfactory.

24
 3. CASH RATIO
The ratio between cash plus marketable securities and current liabilities.

Cash and bank balance

Cash ratio = ---------------------------------------
Current liabilities

Table 4.1.3 cash ratio

YEAR CASH & BANK CURRENT LIABILITIES CASH RATIO

BALANCE

2018-19 169,121,827 638,958,266 0.26

2019-20 205,212,363 1,181,003,846 0.17

2020-21 256,000,280 1,312,272,610 0.20

2021-22 511,453,739 2,020,744,952 0.25

25
GRAPH - cash ratio

0.3

0.25

0.2

0.15

0.1

0.05

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
In all the above year the absolute quick ratio is very low. The standard norm for absolute
quick ratio is 1:2 company is failed in keeping sufficient cash and bank balance and
marketable securities.

26
 4. NET WORKING CAPITAL RATIO:
The difference between current asset and current liabilities excluding short-term bank
borrowing is called net working capital or net current asset.

Net working capital

Net working capital ratio = -------------------------------
Net assets

Table - net working capital ratio

YEAR NET WORKING NET ASSETS NET WORKING

CAPITAL CAPITAL RATIO

2018-19 973,684,231 1,935,207,714 0.50

2019-20 1,099,700,330 2,191,397,006 0.50

2020-21 2,187,920,684 3,817,892.862 0.57

2021-22 3,955,216,073 6,501,134,460 0.61

27
GRAPH - NET WORKING CAPITAL RATIO

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Net working capital ratio is 0.45 in 2018 but increased to 0.50 in the next year i.e.,2019.
From that year the ratio increased to 0.50 in 2020 and followed in 2021 also and increased to
0.61 in 2022 but condition of business working capital is not shortage.

28
LEVERAGE RATIO’S
5. DEBT RATIO
If the firm may be interested in knowing the proportion of the interest bearing debt in the
capital structure.

Total debt
Debt ratio = ------------------------------------------
Total debt + net worth

Table - debt ratio

YEAR TOTAL DEBT TOTAL DEBT + NET DEBT RATIO

WORTH

2018-19 233,058,880 2,039.907,551 0.11

2019-20 378,672,427 2,391,525,347 0.16

2020-21 1,407,083,880 3,843,741,557 0.37

2021-22 3,162,620,560 3,493,635,030 1.10

29
Graph - debt ratio

1.2

0.8

0.6

0.4

0.2

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
This ratio gives results relating to the capital structure of a firm. Debt ratio is 0.08 in the year
2018 it increased to 0.11 & 0.16 in the corresponding years 2019 & 2020. Again it is
increased to 0.37 & 1.10 in the year 2021 & 2022. From the above in fluctuating trend we
can conclude that the company’s dependence on debt is increasing. It is not better position in
collection of debt.

30
 6. DEBT EQUITY RATIO
Debt equity ratio indicated the relationship describing the leader’s contribution for each
rupee of the owner’s contribution is called debt-equity ratio. Debt equity ratio is computed by
dividing long term liabilities divided by equity. Lower debt – equity ratio higher the degree of
protection. A debt – equity ratio of 2:1 is considered ideal.

Long term liabilities

Debt equity ratio = ------------------------------------------
equity

Table - debt equity ratio

YEAR TOTAL DEBT NET WORTH D.E.RATIO

2018-19 233,058,880 1,806,848,671 0.13

2019-20 378,672,427 2,012,852,920 0.19

2020-21 1,407,083,880 2,436,657,677 0.58

2021-22 3,162,620,560 3,331,014,470 0.95

31
Graph - debt equity ratio

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION:
The ratio gives results relating to the capital structure of a firm. Debt equity ratio is 0.09
in the year 2018 and it increased to 0.13 & 0.19 in the year 2019 & 2020. In the year 2021
and 2022 the ratio has increased to 0.58 & 0.95. we can conclude that the company depends
on the debt fund is increasing.

32
 7. INTEREST COVERAGE RATIO:
The ratio shows the number of times the interest charges are covered by funds that are
ordinarily available for their payments.

EBIT
Interest coverage ratio = ------------------------------------
interest

Table - interest coverage ratio

YEAR EBIT INTEREST I.C.RATIO

2018-19 137,259,583 1,448,427 94.76

2019-20 386,899,738 13,435,515 28.80

2020-21 742,908,741 30,924,293 24.02

2021-22 1,588,690,299 129,308,874 12.29

33
Graph - interest coverage ratio

100

90

80

70

60

50

40

30

20

10

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Interest coverage ratio is 07.56 in the year 2018. It is increased automatically to 94.76 in
the year 2019. But, it is decreased to 28.80 in the year 2020 and decreased to 24.02 in the
year 2021and it again decreased to 12.29 in the year 2022. In this position outside investors is
interested to invest the money in this company.

34
 8. TOTAL LIABILITIES RATIO:
Total liabilities
Formula: ----------------------------
Total assets
Total liabilities: current liabilities + secured & unsecured loans
Total assets: fixed assets + investments + current assets

Table - total liabilities ratio

YEAR TOTAL LIABILITIES TOTAL ASSETS T.L.RATIO

2018-19 872,017,146 2,809,793,132 0.3

2019-20 1,559,676,273 3,692,541,508 0.4

2020-21 2,719,356,490 5,292,107,128 0.5

2021-22 5,183,365,512 8,683,886,037 0.6

35
Graph - total liabilities ratio

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
In this year, 2018 & 2019 the total liabilities are 0.2 & 0.3 but in the year 2020 the total
liabilities increased to 0.4 and the ratio increased to 0.5 & 0.6 in the corresponding year of
2021 & 2022.

36
ACTIVITY RATIO’S
9. INVENTORY TURNOVER RATIO
It indicates the firm efficiency of the firm in producing and selling its product. It is
calculated by dividing the cost of goods sold by the average inventory.

Cost of goods sold

Inventory turnover ratio = ----------------------------------
Average inventory

Cost of goods sold = raw materials consumed = payments & benefits to employees =mfr,
selling & admin expenses = duties & taxes.

Table - inventory turnover ratio

YEAR COST OF GOODS AVG INVENTORY I.T.RATIO

SOLD

2018-19 2,228,549,828 374,102,223 5.96

2019-20 3,499,805,230 506,460,567 6.91

2020-21 5,324,665,192 746,837,818 7.13

2021-22 9,782,463,974 1,432,524,559 6.83

37
Graph - inventory turnover ratio

7.4

7.2

6.8

6.6

6.4

6.2

5.8

5.6

5.4

5.2
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Inventory turnover ratio is 5.57 times in the year 2018. But, it is increased to 5.96in the
year 2019. Then, it is increased to 6.91 in the year 2020and again increased to 7.13 in the
year 2021. But, it is decreased to 6.38 in the year 2022. Inventory turnover ratio increased for
the year by year that is company production is also increased. Subsequently sales are also
increased.

38
 10. DEBTORS TURNOVER RATIO
It is found out by dividing the credit sales by average debtors. Debtors turnover indicates
the number of times debtor’s turnover each year.

sales
Debtors turnover ratio = ---------------------------------------
Average debtors

Sale = gross sales

Table – debtor’s turnover ratio

YEAR SALES AVERAGE D.T.RATIO

DEBTORS

2018-19 2,685,436,096 560,689,881 4.79

2019-20 4,458,295,779 753,113,338 5.92

2020-21 7,451,032,998 1,158,032,767 6.43

2021-22 13,499,867,499 1,862,113,498 7.25

39
Graph – debtor’s turnover ratio

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Debtors turnover ratio is 4.31 times in the year 2018 and it is increased to 4.79 times in
the4 year 2019 and increased to 5.92 times in the year 2020 and it increased to 6.43 times &
7.25 times the year 2021 & 2022

40
 11.Fixed asset turnover ratio
The ratio is supposed to measure the efficiency with which fixed assets are employed a
high ratio indicates a high degree of efficiency in asset utilization and a low ratio reflects
inefficient use of assets. However, in interpreting this ratio, one caution should be borne in
mind. When the fixed assets of the firm are old and substantially depreciated, the fixed assets
turnover ratio tends to be high because the denominator of the ratio is very low

Net sale
Fixed asset turnover ratio = ---------------------------------------
Net fixed asset

Sale = gross sales

Net fixed asset = net block

Table – fixed asset turnover ratio

YEAR SALES NET FIXED ASSETS F.A.T.RATIO

2018-19 2,685,436,096 948,631,374 2.83

2019-20 4,458,295,779 1,043,547,559 4.27

2021-22 7,451,032,998 1,568,304,581 4.75

2021-22 13,499,867,499 1,888,508,475 7.15

41
Graph - fixed asset turnover ratio

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Fixed asset turnover ratio is 0.21 in the year 2018 and it is increased 2.83 in the year
2019. in the year 2020 the ratio is and it is continued up to 4.75 and to 7.15 in the year 2021
& 2022

42
 12. CURRENT ASSET TURNOVER RATIO

sales
Current asset turnover ratio = -------------------------
Current assets

Table - current asset turnover ratio

YEAR SALES CURRENT ASSETS C.A.T.RATIO

2018-19 2,685,436,096 1,612,642,497 1.67

2019-20 4,458,295,779 2,280,704,176 1.95

2020-21 7,451,032,998 3,500,193,294 2.12

2021-22 13,499,857,499 5,975,961,025 2.26

43
Graph - current assets turnover ratio

2.5

1.5

0.5

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Current asset turnover ratio is 1.68 in the year 2018 and it is decreased to 1.67 in the year
2019. But, in the year 2020 the ratio increased to 1.95 and it continuously increased up to
2.26 in the year 2022. From the above we can conclude that current assets turnover ratio is
increasing.

44
 13.TOTAL ASSET TURNOVER RATIO
This ratio ensures whether the capital employed has been effectively used or not. This is
also test of managerial efficiency and business performance. Higher total capital turnover
ratio is always required in the interest of the company.

sales
Total asset turnover ratio = --------------------------------------
Capital employed

Total assets: fixed assets + current assets + investments

TABLE – TOTAL ASSET TURNOVER RATIO

YEAR SALES TOTAL ASSETS T.A.T.RATIO

2018-19 2,685,436,096 2,809,793,132 0.96

2019-20 4,458,295,779 3,692,541,508 1.21

2020-21 7,451,032,998 5,292,107,128 1.41

2021-22 13,499,867,499 8,683,886,037 1.55

45
GRAPH –TOTAL ASSET TURNOVER RATIO

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Total asset ratio is 0.83 in the year 2018 and it gradually increased year by year and
reached to 1.55 in the year 2022. It means total assets is increased in every year.

46
 14. NET ASSET TURNOVER RATIO

sales
Net asset turnover ratio = ---------------------
Net asset

asset: net fixed assets + net current assets

TABLE – NET ASSET TURNOVER RATIO

YEAR SALES NET ASSETS N.A.T.RATIO

2018-19 2,685,436,096 1,935,207,714 1.39

2019-20 4,458,295,779 2,191,397,006 2.03

2020-21 7,451,032,998 3,817,892,862 1.95

2021-22 13,499,867,499 6,501,134,406 2.08

47
GRAPH – NET ASSET TURNOVER RATIO

2.5

1.5

0.5

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Net assets turnover ratio is 1.11 in the year 2018 and it is increased to 1.39 in the year
2019 and it is increased to 2.03 in the year 2020. It decreased to 1.95 in the year 2021 and it
slightly increased to 2.08 in the year 2022.

48
 15.WORKING CAPITAL TURNOVER RATIO:
A firm may also like to relate net current asset or net working capital to sales. Working
capital turnover indicates for one rupee of sales the company needs how many net current
assets. This ratio indicates whether or not working capital has been effectively utilized market
sales.

sales
Working capital turnover ratio = ----------------------------------------------
Working capital

Table - working capital turnover ratio

YEAR SALES NET CURRENT W.C.T.RATIO

ASSET
2018-19 2,685,436,096 973,684,231 2.76

2019-20 4,458,295,779 1,099,700,330 4.05

2020-21 7,451032,998 2,187,920,684 3.41

2021-22 13,499,867,499 3,955,216,073 3.41

49
Graph - working capital turnover ratio

4.5

3.5

2.5

1.5

0.5

0
2018-19 2019-20 2020-21 2021-22

INTERPRETATION
Working capital turnover ratio is 2.41 in the year 2018 and it is increased to 2.76 in the
year 2019. In the year 2020 increased to 4.05. Again it decreased to 4.05. Again it decreased
to 3.41 in the year 2021 & 2022. The higher the working capital turnover the more favourable
for the company.

50
 Chapter – IV
FINDING SUGGESTIONS
AND
CONCLUSION

4
FINDINGS
 Expect in this 2020, the company has maintained current ratio as 2 and more,
standard which indicates the ability of the firm to meet its current obligations is
more. It shows that that the company is strong in working funds management.
 The company is maintaining the quick assets more than quick ratio. As the
company having high value of quick ratio. Quick assets would meet all its quick
liabilities without the difficulty.
 The company has failed in keeping sufficient cash, bank balances and marketable
securities.
 above all current assets and liabilities ratio are better and it is
double the normal position. Observe the absolute & super
quick ratio the company cash performance in down position.
 In the year 2018 debt equity ratio is 0.08 (8%) where as it is increased to 0.11
(11%) & 0.16 (16%) in 2019 & 2020 increased every year. It shows that the
company is losing its condition.
 Total liabilities also increased day by day.
 The company has decided to do its coverage ratio to serve long term debts.
 Inventory turnover ratio also been increased in every year so that the company
production has also increased. Subsequently sales are also increased.

51
SUGGESTIONS:
The company has to increase the profit maximization and has to decrease the
operating expenses.
By considering the profit maximization in the company the earning per share,
investment and working capital also increases. Hence, outsiders are also
interested to invest.
The company should maintain sufficient cash and bank balance; they should
invest the idle cash in marketable securities or short term investments in
share’s debenture’s, bonds and other securities.
The company must reduce its debtor’s collection period from 83 & 84 days to
40 days be adopting credit policy by providing discounts to the debtors.
The company should increase its interest coverage ratio to serve long term
debts.
The dividend per share has observed as raising trend over the study period,
hence it may be suggested maruthi indane gas should take key to maxi
minimize the shareholder’s wealth by increasing dividend pay-out.

52
CONCLUSION

It can be concluded from the above discussion that the financial position and operational
performance of LP Gas Ltd. in most cases were not satisfactory. The inefficiency of financial
management may be major cause to such a poor position of the state of affairs. The main
reasons reportedly attributed to such a situation are the scarcity of raw materials, high
competition, management in attention, lack of realistic goals, political instability, increased
price of raw materials and others.

Accountability system be installed with provisions for reward for better performance and
penalization for non- achievement of the same. Cost audit should be done continuously so as
to pinpoint inefficiency and ineffectiveness and provide opportunities to reduce wastage
which in turn ensures better use of resources and helps improve performances.

53
ANNEXURE
 CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2019

PARTICULARS Schedule As at 31.03.2019 As at 31.03.2018

no.
Rupees Rupees Rupees Rupees

SOURCE OF FUNDS
Shareholders’ funds
Share capital 1 113,875,000 113,875,000
Reserves & surplus 2 1,692,973,671 1,632,042,302
1,806,848,671 1,745,917,302
LOAN FUNDS
Secured loans 3 73,665,914 44,945,252
Unsecured loans 4 159,392,966 103,853,138
233,058,880 148,798,390
Deferred tax liability 5 130,927,315 145,000,360
Total 2,170,834,866 2,039,716,052

APPLICATION OF
FUNDS
Fixed assets 6
Gross block 1,672,298,054 1,583,508,897
Less: depreciation 723,666,680 591,622,548
Net block 948,631,374 991,886,349
Capital work in 12,892,109 9,514,644
progress 961,523,483 71,001,400,993
235,672,152 208,778,082
Investments
Current, assets, 7
loans and advances
Inventories 8 440,958,913 307,245,534
Sundry debtors 9 649,706,121 471,673,642
Cash & bank
balances 10 169,121,827 152,292,556
Loan, advances &
deposits 11 342,929,588 251,402,682
other current assets 12 9,926,048 7,622,683
1,612,642,497 1,190,237,097
LESS: current
liabilities &
provisions 13
Liability
Provisions 345,042,817 162,283,498
293,915,449 198,416,622
Net current assets 638,958,266 973,684,231 360,700,120 829,536,97

Misc. expenditure 14 -- --
total 2,170,834,866 2,039,716,052
 CONSOLIDATED SGTATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31st MARCH 2019
Schedule Year ended on 31.03.19 Year ended on 31.03.18
Particulars No. rupees Rupees
INCOME
Sales 2,368,057,275 1,759,017,304
Other income 15 63,043,449 41,581,593
Increase/(Decrease)in stock 16 71,015,819 11,120,770
Total 2,502,116,543 1,811,719,667
Expenditure
Raw materials consumed 17 1,382,962,610 831,843,012
Payments & benefits to 18 170,091,901 157,730,759
employees
Mfg., selling admn., & others
Expenses 19 494,265,237 561,985,559
Taxes and licenses 20 181,230,080 123,834,416
Interest 21 1,448,427 1,754,335
Depreciation 136,307,132 123,834,416
Total 2,366,305,387 1,800,200,330
Profit before taxation 135,811,156 11,519,337
Add: excess provision of income
tax -- 4,954,943
Less: tax provision for earlier
years 14,073,045 30,473,038
Provision for income tax 59,500,000 33,000,000
Provision for wealth tax 3,440,615 --
Add: excess provision for
dividend
Tax written back 43,023 49,721
Profit after taxation 86,900,563 13,897,597
Profit brought forward 512,460,202 518,882,390
Year from previous
Profit available for appropriation 599,360,765 532,779,987
Less: transfer to general reserve 6,517,542 1,050,000
proposed dividend 22,775,000 17,081,250
Dividend tax 3,194,194 2,188,535
Balance carried to balance sheet 566,874,029 512,460,202
Basic earnings per equity share 7.63 1.22
 CONSOLIDATED BALANCESHEET AS AT 31ST MARCH 2021
PARTICULARS SCHEDULE AS AT 31.03.2021 AS AT 31.03.2020
N0. RUPEES RUPEES RUPEES RUPEES
SOURCES OF FUNDS
Shareholders fund
113,875,000 113,875,000
Share capital 1
2,322,782,677 1,898,977,921
Reserves and surplus 2
2,436,657,677 2,012,852,921
Loan funds
189,001,189
Secured loans 3 1,074,874,049 216,407,580
Unsecured loans 4 332,209,831
1,407,083,880 405,408,769
136,092,961 120,012,315
Differed tax liability 5
3,979,834,518 2,538,274,005
Total

APPLICATIONS OF
FUNDS
Fixed assets 6
1,907,116,068
Gross block 2,577,786,073 863,568,510
Less: depreciation 1,009,481,492 1,043,547,558
Net block 1,568,304,581 48,149,118
Capital work in progress 61,667,597
1,629,972,178 1,091,696,676
161,941,656 320,140,656
Investments 7
Current assets, loans
&advances
Inventories 8 921,713,415 571,962,221
Sundry debtors 9 1,459,544,977 856,520,556
Cash & bank balances 10 256,000,280 205,212,363
Loans, advances 11 859,824,054 634,750,549
&deposits
Other current assets 12 3,110,568 12,035,439
3,500,193,294 2,280,481,128
Less: current liabilities &
provisions 13
Liabilities 735,304,583 673,895,907
Provisions 576,968,027 480,148,548
1,312,272,610 1,154,044,455
Net current assets
2,187,920,684 1,126,436,673
-- --
Misc. expenditure 14
3,979,834,518 2,538,274,005
Total
 CONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH 2021

SCHEDULE YEAR ENDED ON 31.03.21 YEAR ENDED ON 31.03.20

PARTICULARS NO RUPEES RUPEES
INCOME
Sales 5,958,016,404 3,636,709,293
Other income 15 97,738,804 72,509,746
Increases/ (decreases) in stocks 16 181,845,189 41,637,449
Total 6,237,600,397 3,750,856,488
Expenditure
Purchase of finished goods 1,190,212 4,353,496
Raw material consumed 17 3,937,812,454 2,229,601,146
Payments & benefits to
employees 18 265,997,094 207,269,383
Mfg., selling admn., & other
Expenses 19 1,093,657,443 760,841,717
Taxes & licenses 20 26,007,989 14,881,894
Interest 21 30,924,293 13,435,515
Depreciation 170,026,464 147,009,114
Total 5,525,615,949 3,377,392,265
Profit before taxation 711,984,448 373,464,223
Add: excess provision of income
tax -- 10,915,000
Less: tax provision for current tax
including deferred tax, earlier tax,
wealth tax, fringe 241,549,873 145,913,493
Benefits tax

Profit after taxation 470,434,575 238,465,730

Profit brought forward 749,031,694 566,874,029
Year from previous
Profit available for appropriation 1,219,466,269 805,339,759
Less: transfer to general reserve 47,043,458 23,846,573
Proposed divided 39,856,250 28,468,750
Dividend tax 6,773,570 3,992,742
Balance carried to balance sheet 1,125,792,991 749,031,694
Basic earnings per equity share 41.31 20.94
 CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2022

PARTICULARS SCHEDULE AS AT 31.03.21 AS AT 31.3.22

NO Rupees Rupees Rupees Rupees
SOURCES OF FUNDS
Shareholders’ funds
Share capital 1 113,875,000 113,875,000
Reserves & surplus 2 2,322,782,677 3,217,139,470
2,436,657,677 3,331,014,470

Loan funds

Secured loans 3 1,074,874,049 2,266,545,502

Unsecured loans 4 332,209,831 896,075,058
1,407083,880 3,162,620,560
136,092,961 169,506,055
Deferred tax liability 5 3,979,834,518 6,663,141,085
Total

APPLICATION OF FUNDS
Fixed assets 6
Gross block 2,577,786,073 3,105,843,108

Less: depreciation 1,009,481,492 1,217,334,633

Net block 1,568,304,581 1,888,508,475

Capital work in progress 61,667,597 657,409,912

1,629,972,178 2,545,918,387
Investments 7 161,941,656 162,006,625
Current assets, loans &
advances

Inventories 8 921,713,415 1,943,335,704

Sundry debtors 9 1,459,544,977 2,264,682,019

Cash & bank balances 10 256,000,280 511,453,739
Loans, advances &
deposits 11 859,824,054
1,248,478,477
Other current assets 12 3,110,568 8,011,086
3,500,193,294 5,975,961,025
Less: current liabilities &
provisions 13
Liabilities 735,304,583 1,027,373,819
Provisions 576,968,027 99,371,133
1,312,272,610 2,020,744,952
Net current assets 2,187,920,684 3,955,216,073

Misc. expenditure 14 -- --
total 3,979,834,518 6,663,141,085
 CONSOLIDATED STATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH 2022

SCHEDULE YEAR ENDED ON 31.03.21 YEAR ENDED ON 31.03.22

PARTICULARS NO. Rupees Rupees
INCOME
Sales 5,958,016,404 10,833,256,904
Other income 15 97,738,804 256,100,643
Increase/ (decrease) in stocks 16 181,845,189 582,065,982
Total 6,237,600,397 11,671,423,529
Expenditure
Purchase of finished goods 1,190,212 6,378,425
Raw material consumed 17 3,937,812,454 7,794,794,675
Payments & benefits to employees 18 265,997,094 408,078,078
Mfg., selling admn., & other
Expenses 19 1,093,657,443 1,579,591,221
Taxes & licenses 20 26,007,989 49,538,561
Interest 21 30,924,293 129,308,874
Depreciation 170,026,464 244,452,070
Total 5,525,615,949 10,212,042,104
Profit before taxation 711,984,448 1,459,381,425
Add: excess provision of income --
tax
Less: tax provision for current tax
including deferred tax, earlier tax,
wealth tax, fringe 241,549,873 523,262,294
Benefits tax

Profit after taxation 470,434,575 943,631,511

Profit brought forward
Year from previous 749,031,694 1,125,792,991
Profit available for appropriation 1,219,466,269 2,069,424,502
Less: transfer to general reserve 47,043,458 94,363,151
Proposed dividend 39,856,250 39,856,250
Dividend tax 6,773,570 6,773,570
Balance carried to balance sheet 1,125,792,991 1,928,431,531
Basic earnings per equity share 41.31 82.87