A SUMMER TRAINING PROJECT REPORT

ON
“A STUDY ON AN ANALYSIS OF FINANCIAL
STATEMENT AT UFLEX LTD, NOIDA”

Submitted In Partial Fulfillment of the Requirements for the Degree

Of
(Affiliated to Dr. A.P.J. Abdul Kalam Technical University Uttar
Pradesh, Lucknow, Approved by AICTE, Govt. of India)

Submitted To: Submitted By:

Ms. Harmandeep kaur Suraj
Roll No.:
2101520700179
MBA-III Sem.

Academic Session
2022-23
 Certificate

I bearing Enrolment No.2100520700179 from MBA-III Sem of the Mangalmay Institute

of Management & Technology, Greater Noida, U.P. hereby declare that the Summer
Training Project Report (KMBN 308) entitled at is an original work and the same has not
been submitted to any other Institute for the award of any other degree.

Date: Signature of
the Student

Certified that the Summer Training Project Report submitted in partial fulfillment of the
requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION to DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY
LUCKNOW by Suraj Enrolment No. 2101520700179 has been completed under my
guidance and is Satisfactory.

Signature of the Faculty Guide

Name of the Guide:
Designation:
Date:
Signature of the HOD
Name of the HOD:
Date:
 ACKNOWLEDGEMENT

The satisfaction euphoria that accompanies the successful completion of any work
would be incomplete unless we mention the name of the person, who made it
possible, whose constant guidance and encouragement served as a beckon of light and
crowned our efforts with success. I consider it a privilege to express through the pages
of this report, a few words of gratitude and respect to those who guided and inspired
in the completion of this project.
I am deeply indebted to Ms. Rajni Sharma (Finance Manager) and Prof. Santosh
Kumar (Faculty) for giving me the opportunity to undergo my project in their
esteemed organization and their timely suggestions & Valuable guidance. I also want
to all the staff members of Finance and accounts dept. They constantly encouraged me
and showed the right path from day first till the completion of my project.
I am deeply indebted to the contribution offered by Mangalmay Institute of
Management & Technology Greater Noida, and all the faculty members who
supported and helped me throughout the project.

Suraj
Roll no. 2101520700179
Sem.3rd

3
 EXECUTIVE SUMMARY

Financial statements are summaries of the operating, financing, and investment

activities of a business. Financial statements should provide information useful to
both investors and creditors in making credit, investment, and other business
decisions. And this usefulness means that investors and creditors can use these
statements to predict, compare, and evaluate the amount, timing, and uncertainty of
potential cash flows. In other words, financial statements provide the information
needed to assess a company’s future earnings and therefore the cash flows expected to
result from those earnings.
The training at UFLEX Ltd. involved the day to day working at corporate accounts
departments with the senior & junior managers and research department in the
company. This project helped me to get the deeper understanding of the process of
Financial Statement Analysis and how decisions are taken to strengthen the financial
position.
During the summer training period at UFLEX Ltd. I had close connection with
preparation of financial statements and also their analysis which was made by
professionals in the accounting team of the company. This experience was an
emphasis on the importance of these Ratios which could be the roots of decisions
made by management that can make or break the company. So, I was influenced to
allocate the aim of this project to study the details about these ratios and their possible
effects on the decisions made by people not only inside the company but also the
outsiders such as investors.

4
 TABLE OF CONTENTS

S No Topic Page No
1. Certificates 2
2. Acknowledgement 3
3. Executive Summary 4
4. Chapter I: Introduction 6
5. Chapter II: Review of Literature 39
6. Chapter III: Research Methodology 46
7. Chapter IV: Data Reduction, Presentation & Analysis 50
8. Chapter V: Data Interpretation 62
9. Chapter VI: Summary & Conclusions 66
10. References/ Bibliography 72
Appendices 74
- List of Tables 86
- List of Figures 87

5
 CHAPTER -1
INTRODUCTION

6
 INTRODUCTION

Financial statements are summaries of the operating, financing, and investment

activities of a business. Financial statements should provide information useful to
both investors and creditors in making credit, investment, and other business
decisions. And this usefulness means that investors and creditors can use these
statements to predict, compare, and evaluate the amount, timing, and uncertainty of
potential cash flows. In other words, financial statements provide the information
needed to assess a company’s future earnings and therefore the cash flows expected to
result from those earnings. In this chapter, we discuss the four basic financial
statements: the balance sheet, the income statement, the statement of cash flows, and
the statement of shareholders ‘equity. The analysis of financial statements is provided
in Part Six of this book.
The financial statements and the auditors ‘findings are published in the firm‘s annual
and quarterly reports sent to shareholders and the 10K and 10Q filings with the
Securities and Exchange Commission (SEC).Also included in the reports, among
other items, is a discussion by management, providing an overview of company
events. The annual reports are much more detailed and disclose more financial
information than the quarterly reports.

There are three basic financial statements:

• Balance sheet
• Income statement
• Cash Flow statement

THE BALANCE SHEET

The balance sheet is a summary of the assets, liabilities, and equity of a business at a
particular point in time—usually the end of the firm‘s fiscal year. The balance sheet is
also known as the statement of financial condition or the statement of financial
position. The values shown for the different accounts on the balance sheet are not
purported to reflect current market values; rather, they reflect historical costs.

Assets are the resources of the business enterprise, such as plant and equipment that
are used to generate future benefits. If a company owns plant and equipment that will
7
be used to produce goods for sale in the future, the company can expect these assets
(the plant and equipment) to generate cash inflows in the future.
Liabilities are obligations of the business. They represent commitments to creditors in
the form of future cash outflows. When a firm borrows, say, by issuing a long-term
bond, it becomes obligated to pay interest and principal on this bond as promised.
Equity, also called shareholders ‘equity or stockholders ‘equity, reflects ownership.
The equity of a firm represents the part of its value that is not owed to creditors and
therefore is left over for the owners. In the most basic accounting terms, equity is the
difference between what the firm owns—its assets—and what it owes its creditors—
its liabilities.

THE INCOME STATEMENT

An income statement is a summary of the revenues and expenses of a business over a
period of time, usually one month, three months, or one year. This statement is also
referred to as the profit and loss statement. It shows the results of the firm‘s operating
and financing decisions during that time. The operating decisions of the company—
those that apply to production and marketing—generate sales or revenues and incur
the cost of goods sold (also referred to as the cost of sales or the cost of products
sold).

The difference between sales and cost of goods sold is gross profit. Operating
decisions also result in administrative and general expenses, such as advertising fees
and office salaries. Deducting these expenses from gross profit leaves operating
profit, which is also referred to as earnings before interest and taxes (EBIT), operating
income, or operating earnings. Operating decisions take the firm from sales to EBIT
on the income statement. The results of financing decisions are reflected in the
remainder of the income statement.

CASH FLOW STATEMENT:

It is a statement, which measures inflows and outflows of cash on account of any type
of business activity. The cash flow statement also explains reasons for such inflows
and outflows of cash so it is a report on a company's cash flow activities, particularly
its operating, investing and financing activities.

8
FINANCIAL ANALYSIS

Financial analysis is a tool of financial management. It consists of the evaluation of

the financial condition and operating performance of a business firm, an industry, or
even the economy, and the forecasting of its future condition and performance. It is,
in other words, a means for examining risk and expected return. Data for financial
analysis may come from other areas within the firm, such as marketing and
production departments, from the firm‘s own accounting data, or from financial
information vendors such as Bloomberg Financial Markets, Moody‘s Investors
Service, Standard & Poor‘s Corporation, Fitch Ratings, and Value Line, as well as
from government publications, such as the Federal Reserve Bulletin. Financial
publications such as Business Week, Forbes, Fortune, and the Wall Street Journal also
publish financial data (concerning individual firms) and economic data (concerning
industries, markets, and economies), much of which is now also available on the
Internet.

Within the firm, financial analysis may be used not only to evaluate the performance
of the firm, but also its divisions or departments and its product lines. Analyses may
be performed both periodically and as needed, not only to ensure informed investing
and financing decisions, but also as an aid in implementing personnel policies and
rewards systems.
Outside the firm, financial analysis may be used to determine the creditworthiness of
a new customer, to evaluate the ability of a supplier to hold to the conditions of a
long-term contract, and to evaluate the market performance of competitors.
Firms and investors that do not have the expertise, the time, or the resources to
perform financial analysis on their own may purchase analyses from companies that
specialize in providing this service. Such companies can provide reports ranging from
detailed written analyses to simple creditworthiness ratings for businesses.

WHO USES THESE ANALYSIS?

Financial statements are used and analyzed by a different group of parties, these
groups consist of people both inside and outside a business. Generally, these users
are:

9
A. Internal Users: are owners, managers, employees and other parties who are
directly connected with a company:
1. Owners and managers require financial statements to make important business
decisions that affect its continued operations. Financial analysis is then performed on
these statements to provide management with more detailed information. These
statements are also used as part of management's report to its stockholders, and it
form part of the Annual Report of the company.
2. Employees also need these reports in making collective bargaining agreements with
the management, in the case of labour unions or for individuals in discussing their
compensation, promotion and rankings.
B. External Users: are potential investors, banks, government agencies and other
parties who are outside the business but need financial information about the business
for numbers of reasons.

1. Prospective investors make use of financial statements to assess the viability of

investing in a business. Financial analyses are often used by investors and is prepared
by professionals (financial analysts), thus providing them with the basis in making
investment decisions.
2. Financial institutions (banks and other lending companies) use them to decide
whether to give a company with fresh loans or extend debt securities (such as a long-
term bank loan).
3. Government entities (tax authorities) need financial statements to ascertain the
propriety and accuracy of taxes and duties paid by a company.
4. Media and the general public are also interested in financial statements of some
companies for a variety of reasons.

FINANCIAL RATIO ANALYSIS

Ratio analysis is such a significant technique for financial analysis. It indicates
relation of two mathematical expressions and the relationship between two or more
things. Financial ratio is a ratio of selected values on an enterprise's financial
statement.
There are many standard ratios used to evaluate the overall financial condition of a
corporation or other organization. Financial ratios are used by managers within a firm,

10
by current and potential stockholders of a firm, and by a firm‘s creditor. Financial
analysts use financial ratios to compare the strengths and weaknesses in various
companies.

Values used in calculating financial ratios are taken from balance sheet, income
statement and the cash flow of company.

Financial ratio analysis groups the ratios into categories which tell us about different
facets of a company's finances and operations. An overview of some of the categories
of ratios is given below.

• Liquidity Ratios: These ratios show the ability of the enterprise to meet its
short-term financial obligations.
• Activity Ratios or Turnover Ratios: These ratios show how efficiently a
company is using its assets to generate sales.
• Profitability Ratios: The profitability of a firm can be measured by its
profitability ratios.
• Solvency Ratios: These ratios are calculated to judge the long-term financial
position of the business. Solvency means firm’s ability to meet its long-term
liabilities.

Essence of ratio analysis:

Financial ratio analysis helps us to understand how profitable a business is, if it has
enough money to pay debts and we can even tell whether its shareholders could be
happy or not.
Financial ratios allow for comparisons:
1. between companies
2. between industries
3. between different time periods for one company
4. between a single company and its industry average

To evaluate the performance of one firm, its current ratios will be compared with its
past ratios. When financial ratios over a period of time are compared, it is called time
series or trend analysis. It gives an indication of changes and reflects whether the
firm‘s financial performance has improved or deteriorated or remained the same over
11
that period of time. It is not the simply changes that has to be determined, but more
importantly it must be recognized that why those ratios have changed. Because those
changes might be result of changes in the accounting polices without material change
in the firm‘s performances.

Another method is to compare ratios of one firm with another firm in the same
industry at the same point in time. This comparison is known as the cross sectional
analysis. It might be more useful to select some competitors which have similar
operations and compare their ratios with the firm‘s. This comparison shows the
relative financial position and performance of the firm. Since it is so easy to find the
financial statements of similar firms through publications or Medias this type of
analysis can be performed so easily.

What does ratio analysis tell us?

After such a discussion and mentioning that these ratios are one of the most important
tools that is used in finance and that almost every business does and calculate these
ratios, it is logical to express that how come these calculations are of so importance.
What are the points that those ratios put light on them? And how can these numbers
help us in performing the task of management?
The answer to these questions is: We can use ratio analysis to tell us whether the
business

1. is profitable
2. has enough money to pay its bills and debts
3. could be paying its employees higher wages, remuneration or so on
4. is able to pay its taxes
5. is using its assets efficiently or not
But as it is obvious there are many different aspects that these ratios can demonstrate.
So for using them first we have to decide what we want to know, then we can decide
which ratios we need and then we must begin to calculate them.

12
Which Ratio for whom:
As before mentioned, there are varieties of people interested to know and read these
information and analyses, however different people for different needs. And it is
because each of these groups has different type of questions that could be answered
by a specific number and ratio.
Therefore, we can say there are different ratios for different groups, these groups with
the ratio that suits them is listed below:
1. Investors: These are people who already have shares in the business or they are
willing to be part of it. So they need to determine whether they should buy shares in
the business, hold on to the shares they already have or sell the shares they already
own. They also want to assess the ability of the business to pay dividends. As a result,
the Return on Capital Employed Ratio is the one for this group.
2. Lenders: This group consists of people who have given loans to the company so
they want to be sure that their loans and also the interests will be paid and on the due
time. Gearing Ratios will suit this group.
3. Managers: Managers might need segmental and total information to see how they
fit into the overall picture of the company which they are ruling. And Profitability
Ratios can show them what they need to know.
4. Employees: The employees are always concerned about the ability of the business
to provide remuneration, retirement benefits and employment opportunities for them,
therefore this information must be found out from the stability and profitability of
their employers who are responsible to provide the employees their need. Return on
Capital Employed Ratio is the measurement that can help them.
5. Suppliers and other trade creditors: Businesses supplying goods and materials to
other businesses will definitely read their accounts to see that they don't have
problems, after all, any supplier wants to know if his customers are going to pay them
back and they will study the Liquidity Ratio of the companies.
6. Customers: are interested to know the Profitability Ratio of the business with which
they are going to have a long-term involvement and are dependent on the continuance
of presence of that.
7. Governments and their agencies: are concerned with the allocation of resources
and, the activities of businesses. To regulate the activities of them, determine taxation
policies and as the basis for national income and similar statistics, they calculate the
Profitability Ratio of businesses.
13
8. Local community: Financial statements may assist the public by providing
information about the trends and recent developments in the prosperity of the business
and the range of its activities as they affect their area so they are interested in lots of
ratios.
9. Financial analysts: they need to know various matters, for example, the accounting
concepts employed for inventories, depreciation, bad debts and so on. Therefore, they
are interested in possibly all the ratios.
10. Researchers: researchers' demands cover a very wide range of lines of enquiry
ranging from detailed statistical analysis of the income statement and balance sheet
data extending over many years to the qualitative analysis of the wording of the
statements depending on their nature of research.

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 1.2 OBJECTIVE OF THE STUDY

The basic objective of this project is to provide an analytical overview of

“ANALYSIS OF FINANCIAL STATEMENT OF UFLEX LTD.” by bringing
into use various theoretical tools and skills which have been studied. This includes
studying and analyzing financial data published in annual reports over a period of 5
years from 2017 to 2022. With the aim of gaining useful insights into the skills
needed for controlling the movement of working capital. It also includes suggestion
and comments to improve specific areas of weaknesses. The main objective of the
research are as follows:
• To do the comparison of five years growth of the company
• To study the financial position of the company and operation of UFLEX Ltd.

15
 1.3 Scope of the study

• Provides key company information for business intelligence needs

The report contains critical company information – business structure and
operations, the company history, major products and services, key
competitors, key employees and executive biographies, different locations and
important subsidiaries.
• The report provides detailed financial ratios for the past five years as well as
interim ratios for the last four quarters.

Financial ratios include profitability, margins and returns, liquidity and leverage,
financial position and efficiency ratios

16
COMPANY PROFILE

17
 COMPANY PROFILE

After Pioneering the growth of the flexible packaging industry in India, Uflex has
gained an unchallenged identity. Since its inception in the year 1983 it has turned into
a multibillion company that values quality and customer satisfaction amongst other
priorities. With consumers spread across the world, Uflex enjoys a global reach.
Headquartered in Noida (National Capital Region, New Delhi) it has state of the art
manufacturing facilities in India & Dubai. It has also established offices in UAE,
Europe, North America and enjoys a formidable market presence in more than 85
countries.
Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA
approvals for their products. It is also a part of the D&B Global Database and winner
of various prestigious national and international awards like the top exporter of
BOPET and BOPP films, and the World star award for packaging excellence. FPA,
AIMCAL and the DUPONT Awards in 2004-2005 are the latest in this series.
Being a multi-faceted organization it has integrated its operations from manufacture
of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metalized
form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks
and adhesives to all types of packaging & printing machines, offering total flexible
packaging solution.
Uflex has always been committed to the industry by providing technical know-how
and being the trend-setter in the flexible packaging industry Being on the edge of
innovation, Uflex endeavors to be the first to come up with advanced products that
cater to the changing demands of the packaging industry.
As part of the Uflex Group, it has over twenty years of experience in polymer
technology. Setting milestones of success and innovation, Unflex is widely known for
manufacturing and supplying products, delivering apt services around the world.

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 COMPANY PROFILE

Name UFLEX LTD

Year of Incorporation May1983
Headquarter- A-107-109
SECTOR-4, NOIDA
Uttar Pradesh-201301
India.
Key People- Mr. Ashok Chaturvedi.
Mr. S.K. Kaushik.
Mr. Dinesh Jain.
Mr. Pradeep Tyagi.
Mr. Amitav Ray.
Mr. P.K. Aggarwal.
Mr. Ajay Tandon.

Products- Zip ouch.

Engineering Tools.
Cylinder Designing.

Total assets- $(USD) 600 MILLION.

Total Revenue- Rs2000 crores

19
 CHAIRMAN PROFILE

Fig.1
The founder Chairman and Managing Director of The Flex Group, Mr. Ashok
Chaturvedi, pioneered the growth of Flexible Packing industry in India. He is hailed
as the leader of this fast growing segment of packaging business in India.
Mr. Chaturvedi's progressive thinking made him conscious of the need to offer
solutions for Flexible Packaging and this led to the inception of a company for
manufacturing packaging materials.

Exhibiting inspiring innovativeness and entrepreneurial skills, Mr. Chaturvedi applied

the latest international technologies for tailoring and designing packing material
which adapted to the needs of the customers, winning markets globally. Appreciating
the customer's needs for quality, prompt delivery and service, he decided to integrate
backwards in the manufacture of Polyester Film, BOPP and Co-extruded Films,
Gravure Printing Cylinders, Inks, Adhesives, Pet Chips, etc. This ensured the
excellent quality of raw materials and timely delivery to the customer.

Mr. Ashok Chaturvedi is one of a distinguished creed of first generation

entrepreneurs, who has, through vision and dedication carved a niche for himself in
the domestic industrial environment and also sculpted a global reputation for himself
and The UFLEX Group. This far-sightedness has placed Flex as a major company in
the global markets. Its export destinations have expanded to more than 40 countries

20
establishing a reputation synonymous with reliability and excellent quality. Mr.
Chaturvedi's achievements are by no means restricted to the industrial arena. The Flex
Medical Centre, stands testimony to his concern for society. His commitment to
enhancing the quality of facilities in the country is seen in the promotion of an
advanced Modern Cricket Club, and the contributions towards the growth of
institutions for management studies. It is Mr. Chaturvedi's dream and ambition to
make The Flex Group a truly professional multinational corporation multinational
corporation

COMPANY HISTORY

YEAR EVENTS 1988 - The Comp. was Incorporated on 21st June, & obtained the
Certificate for Commencement of Business on 8th August. It was promoted by Ashok
Kumar Chaturvedi& Harish Chaturvedi. By a scheme of amalgamation, the assets &
liabilities of Flex Laminates limited & Flex Papers limited were taken by company
effective from 1st August. The Company objects are to manufacture & deal in flexible
packaging materials of printed laminated of plastics & paper-based materials.

70 No. of equity shares subscribed for by Signatories to Memorandum of

Association. 22, 15,640 No. of equity shares allotted to erstwhile Flex Laminates
limited [in proportion 82 shares: 100 held in Flex Laminates] & 6, 25,016 shares
allotted to erstwhile Flex Papers limited [in proportion 56 shares; 100 held in Flex
Papers Ltd. both consequent to the Scheme of Amalgamation without payment in
cash.

2016- The Comp. proposed to undertake the Modernization-Cum-Backward

integration scheme, at its existing unit at NOIDA. It was to be undertaken under two
projects. The first project was to involve an outlay of Rs.234 lakhs while the second
one Rs.775 lakhs. Financial institution sanctioned a term loan of Rs.169 lakhs for first
project & the remaining Rs.65 lakhs was to be met by internal accruals. The second
project was to be financed by a term loan of Rs.580 lakhs & the balance of Rs.195
lakhs was to be met by internal accruals.

21
- 21, 59, 274 No. of equity shares then issued at reserved & allotted to promoters,
resident directors etc. Of the balance 20,00,000 shares, 1,07,964 shares were reserved
for allotment on a preferential basis to employees [including Indian working
directors] workers of Comp. as well as promoter companies [only 94,700 shares taken
ups]. The remaining 18,92,036 shares along with 13,264 shares not taken up by
employees were offered for public subscription during September 1989 [all were
taken ups]

2017- With a view to further improving the quality of end products and to keep pace
with the changing market requirements, the Company embarked upon a Scheme of
Up gradation of technology, process and products to enable the Comp. to introduce
high quality & new range of products. The Comp. hence proposed to acquire &
commission eight color rotogravure printing machine, color scanner & other high
speed, energy saving, high process control equipment’s & machines.

- The Comp. issued 2, 13,000 secured Redeemable non-convertible debentures of

Rs.100 each for cash at par by way of private placement to Can bank Mutual Fund.

- 25, 00,000 Right equity shares issued in prop. 1:2. Another 1, 25,000 shares offered
to employees [all were taken ups].

2018 - During June the Comp. issued 26, 25,000 No. of equity shares of Rs.10 each
for cash at par at a premium of Rs.10 each aggregating to Rs.525 lakhs. Out of these
25, 00,000 No. of equity shares were offered to shareholders, on rights basis in the
ratio of 1:2 [all were taken ups].

2019- The Comp. made inroads into the exports market & registered Rs 26.98 cores
compared to Rs 1.57 cores in previous year.

- The Comp. undertook to set up a plant with the state-of-the-art technology for
manufacture of pet film.

- With a view to sustaining growth & cater to the expanded domestic & international
market with greater strength, the Comp. undertook to the expansion-cum-backward
integration projects. A plant to manufacture BOPP film with a capacity of 15,000

22
TPA was to be set & the existing capacity at pet film plant was to be expanded from
10,000 TPA to 23,000 TPA.

- During May-June, the Comp. issued 38, 12,500 - 17.5% secured partly convertible
debentures of Rs.100 each in Rights basis in prop. 1 debenture: 2 equity shares held.

- Another 1, 20,000 - 17.5% debentures were issued to employees on an equitable

basis.

2020-Board Approves, the proposal to acquire 100% shareholding in Cincom Systems

India Pvt. Ltd., 100% subsidiary of Mincom System Manutius [CSMs] & which is a
100% subsidiary of Mincom System Inc.

2021-Financial institutions led by ICICI sanction a debt restructuring package

-Issues & allots 1, 00,00,000 warrants at a price of Rs 24 per warrant to promoters &
their associates.

-The restructuring package, worth Rs 700 crore cancelled by Financial Institutions

[FIs]

-Delhi High Court rejected the bail applications of suspended central excise chief
commissioner Someshwar Mishra & Flex Industries chief Ashok Chaturvedi in a
bribery case.

2022-Uflex Ltd has informed that ICICI Bank Ltd has nominated Mr. Sandeep
Malhotra as their Nominee Director on the Board of Comp. in place of Mr. Akarati.

UFLEX Ltd provides complete integrated packaging solutions, right from design to
delivery. Catering to the specific need for Laminates and Pouches of each customer
by constantly redefining cost-effective packaging options, is the only tradition of
service known to UFLEX. With almost 2 decades of experience in Flexible Packaging
and significant investments, we have perfected our processes and technology to
produce high quality Flexible Packaging Materials on time and within budgets. To
ensure superior quality and timely delivery we have achieved full backward
integration. Our in-company divisions and group companies located nearby produce

23
all critical inputs, like the BOPET and BOPP films, Inks, Adhesives and substrates,
Holographic Films, Metallization facility, Blown Film and other such raw materials.

Through our innovations in packaging, we have even helped our customers resolve a
variety of problems. A few such cases are quoted below:

An auto major had serious problem in combating spurious spares. We designed very
special Laminates with holographic designs incorporating the company's logo. This
eliminated the problem almost immediately raising the sales to three times within a
year.
A bed mattress manufacturer had no brand recognition inspire of giving the best
quality, because of duplication. When all methods failed to contain this piracy,
UFLEX Engineering Division created a Gravure printed pouch measuring 36"x96".
The problem was nipped and the brand established its leadership in the market.

A leading snack food manufacturer sold a popular snack in 400gms packing. The
quantity was too much for a person to finish in one go. But the snack needed to be
sold in the 400gm packs. Uflex Zip ouch division designed a reckonable pouch with
zipper. The buyer could eat as much as desired and then seal the pack for reuse later.

VISION AND MISSION

Vision- At Flex we believe that, to eventually emerge as a World leader in providing
total Flexible packaging solutions, we need a customer-focused approach.
The way to being a world-class player is paved with state-of-the-art facilities blended
with world-class practices. Moreover, it shall be endeavor to be placed amongst the
top ten international players soon. Even the Flex Group is planning to enter in the
REAL ESTATE in coming years.

Mission- We believe in using our creativity and aesthetic potential in providing

flexible packaging solutions that makes packaging easier, faster, more efficient and
user friendly.
In this way, we too have a share in contribution to the conservation of resources by
enhancing the shelf life of the perishable products.

24
 COMPETITORS

Uflex Limited is an India-based company engaged in the manufacturing of polyester,

poly-ethylene terephthalate, plastic and metalized films and trading in these, as well
as printing equipment and instruments. The main products of the Company include
polyester films, oriented poly propylene (OPP) films, metalized and specialized films,
and polyester chips of different grades. The Company's OPP films comprise bi-axially
oriented poly propylene (BOPP) and cast polypropylene (CPP) films. Its flexible
packaging products include laminates made with various combinations of polyester,
BOPP, poly, metalized and hologram films and others supplied in roll form. The
Company has manufacturing facilities of packaging and processing machines. Its
subsidiaries include U Tech Developers Ltd and Flex America Inc.
When a company is in the market, must have some competitors there of same field. In
same way, uflex have its competitors in the market. Main competitors of UFLEX Ltd.
are:
1. Polyplex Corporation Ltd.
2.Time Technoplast Ltd.
3.EsselPropack Ltd.
4.Garware Polyester Ltd.
5.Paper Products Ltd.
6.Unitech International Ltd.
7.Xpro India Ltd.

25
 BOARD OF DIRECTORS
Shri Ashok Chaturvedi - Chairman & Managing
Director

Shri Ravi Nathalia

Shri M.G. Gupta

Shri A. Karti - ICICI Nominee

Shri N K Duggal - IFCI Nominee

Shri S.K. Kaushik - Whole-time Director

GROUP COMPANIES

Flex Industries Limited (FIL)

Fig. 2

The $150million flagship company of the Flex group is India's largest manufacturer
of flexible packaging materials. It is a one-stop shop offering a wide range of
packaging solutions. It's vertical integration thrust laid the foundation of two strategic
Hi-tech divisions manufacturing BOPET and BOPP films. Both these units are today
among the largest in India.

Flex Chemicals Limited - Originating from the backward integration thrust of FIL,
the Company is now an independent entity, developing and manufacturing Polyester
Chips, wide range of Adhesives and Printing inks.

26
Flex Engineering Limited - Established with a view to expand the end use of flexible
packaging. It is now one of the foremost engineering companies in India. It offers a
wide range of proven sophisticated PLC controlled FFS packaging machines and
converting equipment. The projects division of Flex Engineering Ltd. offers
specialized services in planning, design, monitoring and execution of all Civil and
Electromechanical works.

Now all the three companies FIL, FCL, FEL are merged and presently known as
UFLEX INDUSTRIES LTD.

Fig . 3

Flex Foods Limited –

A 100% Export oriented State-of-the-art freeze-dried mushroom manufacturing plant

is set in the sylvan resort town of Dehradun in the foothills of the Himalayas.

CERTIFICATES / AWARDS

Dun & Bradstreet India

27
 AIMCAL- Member

Fig . 4

ANOTHER IMPORTANT AWARD

DNV- ISO 14001 : 2004
(Environmental Management System), ERA Member, AIMCAL 2004-

SWOT ANALYSIS OF ULFEX

S-T-R-E-N-G-T-H-S

• Low-cost producer of quality equipment due to cheaper labor and fully

depreciated plant.
• Flexible manufacturing set-up
• Big entry barriers due to high replacement cost of its manufacturing
facilities.
• Comprehensive turn key experience form product design to commission.

W-E-A-K-N-E-S-S-E-S

• High working capital requirement due to its exposure cash starred SEBS.
• Inability to provide project Financing.

28
O-P-P-O-R-T-U-N-I-T-I-E-S

• High expected growth rate in power section.

• High growth forecast in India1s Index of Industrial production would
Increase demand for industrial equipment’s such as solar power Uflex.

T-H-R-E-A-T-S

• Technology suppliers are becoming competitors in the opening up of the

Indian economy.
• Fall in global power equipment price can affect profitability.

FINANCIAL OVERVIEW

Uflex Limited (Uflex) is one of the leading integrated packaging companies in the
world. The company is engaged in the manufacturing and marketing of flexible
plastic materials and rotogravure cylinders. It is one of the world’s leading
manufacturers and suppliers of a range of biaxial oriented polyethylene teraphthalate
films, biaxial oriented polypropylene films and metalized films. The company offers
complete flexible packaging solutions, such as polyester chips, BOPET films, BOPP
films, CPP films, coated film, metalized film, pouches, packaging machines,
converting equipment, inks, adhesives and flexible laminates.

Global Markets Directs Uflex Limited - Financial Analysis Review is an in-depth

business, financial analysis of Uflex Limited. The report provides a comprehensive
insight into the company, including business structure and operations, executive
biographies and key competitors. The hallmark of the report is the detailed financial
ratios of the company

29
Scope

• Provides key company information for business intelligence needs

The report contains critical company information – business structure and
operations, the company history, major products and services, key
competitors, key employees and executive biographies, different locations and
important subsidiaries.
• The report provides detailed financial ratios for the past five years as well as
interim ratios for the last four quarters.
• Financial ratios include profitability, margins and returns, liquidity and
leverage, financial position and efficiencyratios.

Reasons to buy

• A quick “one-stop-shop” to understand the company.

• Enhance business/sales activities by understanding customers’ businesses
better.
• Identify prospective partners and suppliers – with key data on their businesses
and locations.
• Compare your company’s financial trends with those of your peers /
competitors.
• Scout for potential acquisition targets, with detailed insight into the
companies’ financial and operational performance

Keywords

UflexLimited, Financial Ratios, Annual Ratios, Interim Ratios, Ratio Charts, Key
Ratios, Share Data, Performance, Financial Performance, Overview, Business
Description, Major Product, Brands, History, Key Employees, Strategy, Competitors,
Company Statement,

30
 SUBSIDIARY

FLEX MIDDLE EAST FZE, located in Dubai, UAE is a subsidiary of UFLEX group

With an aim to serve their customers spread all over the world, UFLEX FILMS has
invested over 50 million dollars in a world class flexible films facility in jebel Ali free
Zone, UAE, thereby being the first company to do major investment in UAE by
establishing state of the art 7.2 meter wide polyester film line in plain and metalized
forms. A second polyester film and line 8.7 meters wide has been commissioned and
commenced its production w.e.f 1st Oct 2007 there by taking the total polyester film
capacity to over 45000 tons.

Flex Middle East fez P.O BOX 17930

JEBEL ALI FREE ZONE DUBAI, UAE
PHONE NO. =97148834633

FLEX AMERICA INC

UFLEX has been catering to the north and south American markets since the
inception of the operations of plastic films in 1995. We are supplying to the industrial
and packaging sector there. In view of our expanding business and also toprovide
betterservice to the customers, UFLEX has incorporated a marketing and distribution
subsidiary, UFLEX America Inculcated in North Carolina, USA. Our customers there
have appreciated our commitment to the market and their business.

FLEX AMERICA INC 19300 STATESVILLE

ROAD STE#102 CORNELIUS, NC 28031

31
 COMPANY’S DIVISION DESCRIPTION

ART DIVISION

This is the department where the designing of the packaging material is done
according to the need of the customers. While preparing the designs about 20% of the
designing is being done by UFLEX and the rest 80% of the data or the design is
aleady provided by the client. According to the data or the design isalread provided
by the client in compact disks. According to the data or the design provided by the
customer, four to five final samples are sent for their approval.
The division mainly works on computerized designing using software like illustrate
and collar for the text matter and adobe Photoshop for pictures.

For designing the product UFLEX particularly uses two types of Colors
➔ Cyan Magenta, yellow, Black colors are mainly used for the pictures.

UFLEX mainly appoints BFA MFA qualified professionals in this department who
work as trainee for one year.

After the final design has been selected and approved it is then sent to the Pre Press
department for further modifications in the design for a better layout and impression.

PRE-PRESS DEPARTMENT

Well equipped design studio manned by creative artist specialized in packaging

designs facilitates aesthetic layouts, color schemes and the final artwork. We accept
inputs in the form of digital files. Art work, positive, negative, transparency and film.
Scanning at4000 DPI ensures a True to life image. High end BARCO Monitor,
calibrated to ambient light conditions, reproduces WYSIWYG images.

Approved and finished designs, in digital forms, are planned through state of the art
packaging planning software to meet the gravure printing requirement.

32
Result can be previewed in the form of chromatin proof. The review facility provides
printing the final layout complete with print marks on nova jet printer up to one meter
Web width. Digital designs are electronically transferred to OHIO engraving systems.
The department caters following printings:
Reverse printing – from dark to light color printing mainly done on transparent Polly.
Surface printing – from light to dark color mainly done in White Polly
Trapping – It is the process where overlapping of the colors takes place.
Half Tone – It is made by using the basic colors.
Color Separator – This is used to separate the various colors.

The work in this department is mainly carried out on computers and the software used
is Artpro and Photo shop.

The employee of this department must have a Diploma in printing, initially they are
recruited as trainee and further promoted to planner and then Officer, and fresher are
also recruited in this department

CYLINDER DIVISION
The cylinder manufacturing facility at UFLEX is a key strategic initiative towards
completing the process of integration. It enables UFLEX to produce its own
rotogravure cylinder in – house for its own needs as well as the requirements of its
customers.
The facility gives UFLEX complete over entire from graphic design at its digital
design studio pre-press, etching and engraving. Backed by top of the line equipment
from international leader, UFLEX cylinders are all set to roll on towards new
opportunities and challenges across the world

Cylinder:

These are the pipes of mild steel fabricated through many stages to make a
cylinder type structure on which the engraving is done to make the print of the design
which has to be printed. Engraving is only done once the sample id finalize by the
customer. UFLEX is capable of making cylinder for its use as well as for the export.

33
The marketing division contacts the costumer for their requirements of cylinder, the
customer either provides the full format or the format is also developed by UFLEX.
After the format is finally prepared, it is then sent to the customer for their approval.

The approved format is then sent for final preparation and a print is being approved
and then the cylinder is sent for galvanizing and engraving. Once the galvanizing of
nickel and copper is done, the cylinder is sent to the polishing department so that it
can be cut down to an appropriate size as per the requirement of the job provided by
the customer. Finally Chrome plating is done on to the cylinder and it is sent to the
engraving department. Cylinders are mainly of two types: Copper Based and MS
Based Base Shells made from best mild steel cylinder are dynamically balanced at
5500RPM to simulate printing speed. Fresh base shells are nickel plated to enhance
bonding of copper with mild steel.

Galvanizing:

Galvanizing system from MDC Dawdler, Switzerland provides for high quality
Nickel, copper and chrome plating of cylinder with automatic control; on hardness
and thickness of deposits

Polish master:

Fully computerized, Swiss- made polish master ensure engineering accuracy and a
smooth cylinder surface finish.

ENGRAVING DEPARTMENT

High end Electron Engraving from MCD, Dawdler and OHIO create cylinder using
digital inputs with accuracy and reliability. Facility is also available for chemical
etching of cylinder through the conventional process. In this department the final
approved design given by the press department is finally engraved on the cylinder,
which is further used for the final printing.

34
The machines used for engraving are imported from Switzerland and Germany: the
machines are completely computerized and automatic. The engraving on the cylinder
is done with the help of a diamond cutter. The diamond holder hits the cylinder about
4000 times in a second.

The employee recruited in this department must have a B-tech

(Electronics), they are trained for a year and finally employed.

PROFFING DEPARTMENT

Proofing station:
The proofing station from Helford, U.K. is the last stop before cylinder is rolled out
for production. This facility generates life like sample prints on desired surface using
real inks and substrates.

All chemicals are tested in well-equipped laboratories to give the best results under
specified conditions. Each cylinder is checked for surface finish with sophisticated
test and measuring equipment’s before and after engraving and documented. All
design data is digitally stored for accuracy and consistency for reproduction at any
time in future.

PACKAGING DIVISON
UFLEX is the world leader in producing world class Flexible solution that
1. Enhance the market performance of the product
2. Improve utility for the end user
3. Help products reach out to new market
4. Replace out – mode option with versatile and cost-effective solutions.

PRINTING DEPARTMENT
We print on everything!
BOPET, BOPP, POSTER PAPER, CHROMO ART PAER, GLASSINE PAPER
State of the fully automatic printing machinery from Rotomac (Italy)and sung-an(S.
Korea) are employed high quality gravure printing in 8 colors with a maximum web
width of 1200mm and print speed of 250-350 meters per min. All machines have
35
presses high precision registration controllers and digital drives. A set of 12 such
machines equips Flex with the largest gravure printing facility in India and of the
leading in Asia pacific.
After the sample is being approved by the proofing department, the customer order is
under process and the main work start in the department.
Types of printing technique:-
Intaglio printing:-

In this process graving is done for printing and this graved material is used to print the
required article on the printing surface.
Letter press printing
In this process, alphabet made of lead are used, each alphabet is picked and arranged
for the desired letter for the printing purpose. After arranging them ink is applied on
them, when the letters and the paper or the material on the material. This method is
generally used in small scale printing.

Offset printing
In this printing aluminum plates are used for printing. The process is also known as
Indirect Printing; the principle used in this process is that “oil and water repel each
other”.
The ink is transferred from the plates to the blanket.
Gravure Printing
This printing process is also known as “Intaglio Printing”, in this process graving is
done for printing on the material. Ink is inserted into the image area by the
phenomenon of “Surface tension”.

HOLOGRAPHY DIVISION

Holography Division is a professionally managed division of UFLEX Ltd., focusing

on the production of top-of-the-line holographic products. At UFLEX holographic
division, our goal is to deliver quality that will ensure the confidence of our
discerning buyers globally and become a benchmark for others. We will be

36
uncompromising in our adherence to excellence at every stage of production, from the
selection of raw materials to final product delivery.

Equipped with state-of-the-art manufacturing facilities and technology tie-ups with

world leaders, provide an access to leading innovations in the industry, hence ensure
latest technology and processes in place.

Entire supply-chain is attuned to ensure minimum lead-time for execution of large

orders, offer customization of products based on buyer specifications and an
assurance of innovation and flexibility in product design.

R & D: With a strong foothold in innovating products and design, research &
development of holography division is committed to refine and upgrade the processes
and products being manufactured. Our fully equipped research laboratory is a result of
core technical strength & commitments to manufacturing holography and related
products. Inaddition
Maximum emphasis is placed on security of making of hologram housekeeping and
hygiene in relation to materials, processes, storage and handling. Moreover, all
environmental laws, guidelines and commitments are unfailingly adhered to.

All emissions kept below permissible levels

Minimal process waste generation - Almost all products made from eco-friendly
materials

Continuous employee education and motivation

Secured execution & delivery of any job is an important pillar in holographic

industry. Flex has ensured the same by installing, card access system bio-matrix
technology (Thumb Recognition System), fully trained in-house armed guards to
restrict any unauthorized entry to the facilities and maintain high-level security zone.

It's this sense of commitment that lies at the core of UFLEX holography division
offering Holograms (Sheet Form / Roll Form)

Holographic strips

37
Holographic scratch

Holographic wads

Holographic Transparent film

Holographic foil

Holographic Metalized Film (Any Micron)

Holographic Metalized Film BOPP (Any Micron)

Taking the initiative to give path-breaking ideas unique and distinctive forms. That's
what gives our products an identity with a difference and this is a never-ending
process because the quest is always on to cover new grounds in design, dependability
and ease of use.

38
 CHAPTER -2
REVIEW OF LITERATURE

39
 Chapter-II: Review of Literature

• Gupta (1972) in his book has studied the working of stock exchanges in India
and has given a Number of suggestions to improve its working. The study
highlights the‟ need to regulate the Volume of speculation so as to serve the
needs of liquidity and price continuity. It suggests the Enlistment of corporate
securities in more than one stock exchange at the same time to improve
Liquidity. The study also wishes the cost of issues to be low, in order to
protect small investors
• Panda (1980) has studied the role of stock exchanges in India before and after
independence. The Study reveals that listed stocks covered four-fifths of the
joint stock sector companies. Investment in securities was no longer the
monopoly of any particular class or of a small group of people. It attracted the
attention of a large number of small and middle-class individuals. It was
observed that a large proportion of savings went in the first instance into
purchase of Securities already issued.
• Gupta (1981) in an extensive study titled `Return on New Equity Issues‟
states that the performance of new issues of equity shares, especially those of
new companies, Deserves separate analysis. The factor significantly
influencing the rate of return on new issues to the original buyers is the `fixed
price‟ at which they are issued. The return on equities includes Dividends and
capital appreciation. This study presents sound estimates of rates of return on
Equities, and examines the variability of such returns over time.
• Jawaharlal (1992) presents a profile of Indian investors and evaluates their
investment Decisions. He made an effort to study their familiarity with, and
comprehension of financial Information, and the extent to which this is put to
use. The information that the companies Provide generally fails to meet the
needs of a variety of individual investors and there is a General impression
that the Company’s Annual Report and other statements are not well receive
by them.

40
• L.C.Gupta (1992) revealed the findings of his study that there is existence of
wild speculation in The Indian stock market. The over speculative character of
the Indian stock market is reflected in Extremely high concentration of the
market Activity in a handful of shares to the neglect of the Remaining shares
and absolutely high trading velocities of the speculative counters. He opined
that, short- term speculation, if excessive, could lead to “artificial price”. An
artificial price is one which is not justified by prospective earnings, dividends,
financial strength and assets or which is brought about by speculators through
rumours, manipulations, etc. He concluded that such artificial prices are bound
to crash sometime or other as history has repeated and proved.
• Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding
and also for selling Shares. He advised the investors to buy shares of a
growing company of a growing industry. Buy Shares by diversifying in a
number of growth companies operating in a different but equally fast Growing
sector of the economy. He suggested selling the shares the moment company
has or almost reached the peak of its growth. Also, sell the shares the moment
you realise you have Made a mistake in the initial selection of the shares. The
only option to decide when to buy and Sell high priced shares is to identify the
individual merit or demerit of each of the shares in the Portfolio and arrive at a
decision.
• Pyare Lal Singh (1993) in the study titled, Indian Capital Market – A
Functional Analysis, Depicts the primary market as a perennial source of
supply of funds. It mobilizes the saving from the different sectors of the
economy like households, public and private corporate sectors. The number of
investors increased from 20 lakhs in 1980 to 150 lakhs in 1990 (7. 5 times). In
financing of the project costs of the companies with different sources of
financing, the Contribution of the securities has risen from 35.01% in 1981 to
52.94% in 1989. In the total Volume of the securities issued, the contribution
of debentures /bonds in recent years has increased significantly from 16. 21%
to 30.14%.
• Sunil Damodar (1993) evaluated the „Derivatives‟ especially the „futures‟ as
a tool for short-term Risk control. He opined that derivatives have become an
indispensable tool for finance managers whose prime objective is to manage

41
 or reduce the risk inherent in their portfolios. He disclosed that the over-riding
feature of „financial futures‟ in risk management is that these instruments tend
to be most valuable when risk control is needed for a short- term, i.e., for a
year or less. They tend to be cheapest and easily available for protecting
against or benefiting from short term price. Their low execution costs also
make them very suitable for frequent and short term trading to manage risk,
more effectively.
• R.Venkataramani (l994) disclosed the uses and dangers of derivatives. The
derivative products can lead us to a dangerous position if its full implications
are not clearly understood. Being off Balance sheet in nature, more and more
derivative products are traded than the cash market Products and they suffer
heavily due to their sensitive nature. He brought to the notice of the Investors
the „Over the counter product‟ (OTC) which are traded across the counters of
a bank. OTC products (e.g. Options and futures) are tailor made for the
particular need of a customer and Serve as a perfect hedge. H e emphasized
the use of futures as an instrument of hedge, for it is of low cost.
• Awais M (2016) conducted a research to know the factors which influence the
investors decision making process and found that high knowledge about
financial information and its analysis improves the investors risk taking
capacity.
• Sangeeta Jauhari (2015) identified that investor’s pattern of investment
mainly depends on the age, educational level and source of income and
investment alternatives available in the stock market.
• Muhammad Sadiq (2019) Research has been conducted to know the impact
of corporate governance and investor confidence on the corporate investment
decisions and identified that there is a significant impact of investor
confidence on corporate investment decisions in both countries and also the
investment level is higher in the firms with good corporate governance
practices.
• N.S.V.N Raju (2016) conducted a study to identify the factors influencing
investors attitude towards investment and found that top five highly influential
factors according to the investors’ were what the company does ,valuation of

42
 the company's Stock , company's annual reports , Price to earnings ratio, Is the
company profitable.
• U.Raghavendra Prasad (2016) indentified that investors are bullish in nature.
Rate of return, capital appreciation and safety of investment are the major
motives for investment.
• D. Harikanth and B. Pragathi (2013), found that Risks taking capacity and
educational qualification of investors are the factors which affects the
selection of investments.
• Mittal M and Vyas (2008) found that factors like income, marital status and
education has an effect on individual’s investment decisions.
• N.Piyatrapoomi (2004) Political, social, environmental and economic factors
are included in decision-making frameworks but incomplete information of
these factors become risk and uncertainty in decision making.
• M.Jaya (2017) found that return on investment, tax benefits and liquidity are
the major reasons for the investment in stock markets. To avoid risk investors
are adopted a strategy by not investing in the risk area and followed portfolio
investment.
• Gnani Dharmaja (2012) found that financial literacy, investor’s financial
tolerance and accounting information are influencing the investor’s behavior.
• Bhardwaj (2003) has stated the literature on globalization; He found the
pervasiveness of the west’s perception of the world affect on Indian investors
that affects the trends in investor’s choice. They are hugely affected by the
west’s views and so changes in Indian trends occur. 10 • Singh (2006),
analyzed that investment decisions making done by the majority of investor
based on the recommendation done by the professionals and financial
advisors.
• Muttapan (2006), concluded that the factors influencing to invest in mutual
fund are tax exemption.
• Sujit and Amrit (1996), stated that the main factor influenced the salaried
and business class group to invest in mutual fund were tax benefit.
• Sarita (2011), found that the irrespective of educational qualification, job,
age, income level investor would like to protect their future by taking an
insurance policy

43
• Ashok Kumar (2014), suggested that majority of investors preferred to invest
in Fixed deposit with banks followed by gold, units of UTI, fixed deposit of
non-government companies, mutual funds, equity shares and debenture for
safety and liquidity.
• (Ashly Lynn Joseph & Dr. M. Prakash, 2014)‘A Study on Preferred
Investment Avenues among the People and the Factors Considered for
Investment’, that to have an insight into different investment avenues available
and to understand the preferred investment avenue among the people of
Bangalore City. In the present day world, new financial products are available.
It has become difficult and confusing to choose the best options due to lack of
proper financial knowledge to the common man to decide the factors which
are considered for making sound investment decisions. It is further analyzed
that investors are not much aware about investment in stock exchange and
equity and are more inclined towards traditional investments like bank
deposits, insurance, post office savings etc. Awareness programs should be
introduced by the government and stock broking firms to make people aware
about investment options with their merits n demerits so right decisions are
taken for their personal finance.
• (Sathiyamoorthy, M. C. & Krishnamurthy, K., 2015)“Investment Pattern
and Awareness of Salaried Class Investors in Triuvannamalai District of Tamil
Nadu”, that to understand the investment pattern and awareness towards
salaried class investors. To further analyze the factors influencing the
investor’s perception and awareness regarding investment pattern. The results
highlight that most of the salaried class look after safety of their investment
rather than high returns. It further reveals that factors like education level, age
of investors, number of family members etc. makes a significant impact while
deciding on the avenues for investment. The study is based on primary data
and the statistical tools used for analysis are T- test and Chi Square Test. The
research shows that majority of the respondents are saving money as Bank
Deposits and the main purpose of investment is for the children education,
marriage and security after retirement.

44
• (C.R. Kothari, 1991)Investment pattern depend on the education level,
income and saving level of an individual. Only 100 respondents were
considered for the survey from the entireHubli. Primary data is collected from
Interaction with Branch Manager, Survey with Questionnaire. The study found
that many investors who don’t like to invest in stock market believe risk
(55%) to be the major cause for their non- investment in stock market. Few
others believe lack of safety (24%) and lack of knowledge (18%) to be the
other reasons for not considering stock market for their investments. Most of
the stock market investors of this Hubli region know more about equity market
than any other options in stock market Many investors who don’t like to invest
in stock market believe risk to be the major cause for their non-investment in
stock market. Investment pattern depend on the education level, income and
savings level. Through, the above literature survey it is found that there are
several factors which affect the investment decision of an individual and the
scope of this Research is wide.
• (Sook Deepak & Dr. Kaur Navdeep, 2015)The objective of the study was to
determine the relationship between the savings and investment pattern among
the salaried class people if Chandigarh (India). The data was collected through
structured questionnaire distributed to 200 peoples working in different sectors
at Chandigarh, Researcher use one way ANOVA test. It found that most of the
teacher prefer bank FD and government securities as the investment option,
there is lack of awareness about other avenues like equity and mutual fund etc.
they suggested that to regularly read newspapers, journals and articles related
stock market, to enhance the saving habits the saving mode must attract people
by providing many offers and new attractive schemes.

45
 CHAPTER -3
RESEARCH METHODOLOGY

46
 3. RESEARCH METHADOLOGY

A system of principles or methods of procedure in any discipline, such as education,

research, diagnosis, or treatment is called methodology.
The section of a research proposal in which the methods to be used are described. The
research design, the population to be studied, and the research instruments, or tools, to
be used are discussed in the methodology

A dissertation's methodology consists of four parts: participants, instruments,

procedures, and data analysis. Even though these components tend to be similar in
structure and format, many students experience frustration during this important
process.

The methodology section is essential in helping the audience understand the various
steps of the research project. The methodologies choose is in large part based on the
research question and goals. The knowledgeable dissertation consultants can help one
to choose a methodology that is "doable" and appropriate for your study.

Methodology can properly refer to the theoretical analysis of the methods appropriate
to a field of study or to the body of methods and principles particular to a branch of
knowledge. In this sense, one may speak of objections to the methodology of a
geographic survey(that is, objections dealing with the appropriateness of the methods
used) or of the methodology of modern cognitive psychology (that is, the principles
and practices that underlie research in the field).

47
RESEARCH DESIGN
Basically, there are 3 types of approaches used during any research:
Exploratory- It is a type of research conducted for a problem that has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It should draw definitive conclusions only
with extreme caution. Given its fundamental nature, exploratory research often
concludes that a perceived problem does not actually exist.
Exploratory research often relies on secondary research such as reviewing available
literature and/or data, or qualitative approaches such as informal discussions with
consumers, employees, management or competitors, and more formal approaches
through in-depth interviews, focus groups, projective methods, case studies or pilot
studies. The Internet allows for research methods that are more interactive in nature.
For example, RSS feeds efficiently supply researchers with up-to-date information;
major search engine search results may be sent by email to researchers by services
such as Google Alerts; comprehensive search results are tracked over lengthy periods
of time by services such as Google Trends; and websites may be created to attract
worldwide feedback on any subject.
Descriptive- Descriptive research is the exploration of the existing certain
phenomena. The main goal of this type of research is to describe the data and
characteristics about what is being studied. The idea behind this type of research is to
study frequencies, averages, and other statistical calculations. Although this research
is highly accurate, it does not gather the causes behind a situation. Descriptive
research is mainly done when a researcher wants to gain a better understanding of a
specific topic.
Experimental- Experimental design is the design of any information-gathering
exercises where variation is present, whether under the full control of the
experimenter or not. However, in statistics, these terms are usually used for controlled
experiments. Formal planned experimentation is often used in evaluating physical
objects, chemical formulations, structures, components, and materials. During the
research Descriptive and Exploratory approach is taken into consideration because of
the availability of relevant information to describe the relationships between the
marketing problems and the available information. In this project Researcher has used

48
 exploratory research design as researcher has found out different cost-effective
recruitment methods that can be used by the company.

DATA COLLECTION
Primary Data
Primary data is data collected for the first time. In this information is gathered by discussing
the head and members of finance department.
Secondary Data

Secondary data is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, surveys, organizational records
and data collected through qualitative methodologies or qualitative research. Primary
data, by contrast, are collected by the investigator conducting the research.

Secondary data analysis saves time that would otherwise be spent collecting data
and, particularly in the case of quantitative data, provides larger and higher-quality
databases than would be unfeasible for any individual researcher to collect on their
own. In addition to that, analysts of social and economic change consider secondary
data essential, since it is impossible to conduct a new survey that can adequately
capture past change and/or developments.

The data has been taken from the annual reports of UFLEX Limited.

The ratios have been calculated under four parameters. Under each parameter, few
ratios have been selected to be studied.

❖ Liquidity Ratios
❖ Solvency Ratios
❖ Activity Ratios
❖ Profitability Ratios

49
 CHAPTER -4
Data Reduction, Presentation &
Analysis

50
 DATA ANALYSIS AND INTERPRETATION

RATIO ANALYSIS

Important Ratios measure liquidity and solvency (a business's ability to pay its bills as
they come due). They include the following ratios:

1. LIQUIDITY RATIOS (short term solvency)

This ratio shows short-term financial soundness of the business. Higher ratio means
better capacity to meet its current obligation. Commonly used liquidity ratios are:

i. CURRENT RATIO

The Current Ratio is a relationship of current assets to current liabilities and is

computed to assess the short-term financial position of the enterprise. It is figured as
show below:
Current Ratio = Current Assets/Current Liabilities

YEAR CURRENT CURRENT CURRENT

ASSETS LIABILITIES RATIO
2017-2018 124129.28 50429.03 2.46
2018-2019 138863.69 53840.95 2.57
2019-2020 200605.22 71607.05 2.80
2020-2021 203568.43 171872.19 1.18
2021-2022 235382.85 197998.59 1.18

Table no. 1 Analysis of current ratio

51
 CURRENT RATIO
3

2.5

RATIO
1.5

1 CURRENT RATIO

0.5

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig. 5 Bar chart of current ratio

1 (ii) QUICK RATIO/LIQUIDITY RATIO/ACID TEST RATIO

Liquidity ratio is a relationship of liquid assets with current liabilities and is

computed to assess the short-term liquidity of the enterprise. It is figured as shown
below

Quick Ratio= Quick Assets/Current Liabilities

YEAR QUICK ASSETS CURRENT QUICK RATIO

LIABILITIES
2017-2018 101753.43 50429.03 2.01
2018-2019 120791.53 53840.95 2.24
2019-2020 164098.99 71607.05 2.29
2020-2021 104011.51 171872.19 0.60
2021-2022 188362.58 197998.59 .95

Table no. 2 Analysis of quick ratio

52
 QUICK RATIO
2.5

1.5
RATIO

QUICK RATIO
1

0.5

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig no.6 Bar chart of Quick ratio

2.SOLVENCY RATIOS

These are those ratios which show the ability of the enterprise to meet its long term
liabilities. Some of them are:

i. DEBT-EQUITY RATIO:

This ratio expresses the relationship between external equities and internal
equities of the enterprise. . It is figured as shown below:

Debt-Equity Ratio= Debt/Equity

YEAR DEBT EQUITY DEBT-EQUITY

RATIO
2017-2018 102656.8 96723.22 1.06
2018-2019 123632.82 113021.2 1.09
2019-2020 138784.81 204916.12 0.67
2020-2021 114955.45 242066.07 0.47
2021-2022 131363.36 267059.48 0.49

Table no.3 Analysis of Debt Equity Ratio

53
 DEBT-EQUITY RATIO
1.2
1
0.8

RATIO
0.6
0.4
0.2
0
DEBT-EQUITY…

YEAR

Fig. 7 Bar chart of Debt Equity Ratio

ii. TOTAL ASSET TO DEBT RATIO

It establishes the relationship between total assets and total long term-debts. .
It is figured as shown below:
Total asset to debt ratio= Total Assets/Long term Debts

YEAR TOTAL LONG TERM TOTAL ASSET

ASSETS DEBTS TO DEBT
RATIO
2017-2018 284970.66 102656.8 2.77
2018-2019 314130.72 123632.82 2.54
2019-2020 417720.63 138784.81 3.00
2020-2021 528893.71 114955.45 4.60
2021-2022 596421.43 131363.36 4.54

Table no. 4 Analysis of Total asset of debt ratio

54
 TOTAL ASSET TO DEBT RATIO

5
4.5
4
3.5
3
RATIO

2.5
TOTAL ASSET TO DEBT RATIO
2
1.5
1
0.5
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig no.8 Bar chart of Total assest debt ratio

3. ACTIVITY RATIOS/TURNOVER RATIOS

This ratio measures how well the resources have been used by the enterprise.
Higher turnover ratio means, better use of resources. Some of these ratios are:

i. STOCK TURNOVER RATIO

This ratio measures how fast the stock is moving through the firm and
generating sales. . It is figured as shown below:
Stock Turnover Ratio= Cost of Goods Sold/Average Stock

YEAR COST OF AVERAGE STOCK

GOODS SOLD STOCK TURNOVER
RATIO
2017-2018 142933.41 18777.31 7.61
2018-2019 156630.78 17785.66 8.80
2019-2020 192941.41 25029.32 7.70
2020-2021 334396.77 17405.13 19.21
2021-2022 406083.38 41979.41 9.60
Table no. 5 Analysis of stock turnover

55
 STOCK TURNOVER RATIO
25

20

15
RATIO

STOCK TURNOVER RATIO

10

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig no.9 Bar chart of sock turnover ratio

ii. DEBTORS’ TURNOVER RATIO

This ratio indicates economy and efficiency in the collection of amount due
from debtors. It is figured as shown below:
Debtors’ turnover ratio= Net Credit Sales/Average Trade Receivables

YEAR NET CREDIT AVERAGE DEBTORS’

SALES TRADE TURNOVER
RECEIVABLES RATIO
2017-2018 204209.97 39504.45 5.16
2018-2019 229089.51 59110.12 3.87
2019-2020 346541.24 76850.05 4.50
2020-2021 454295.29 99556.92 4.56
2021-2022 495643.31 127602.49 3.88

Table no. 6 Analysis of debtord turnover ratio

56
 DEBTORS' TURNOVER RATIO
6

4
RATIO

DEBTORS' TURNOVER RATIO

2

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig no. 10 Bar chart of Debtor’s turnover ratio

iii. WORKING CAPITAL TURNOVER RATIO

This ratio shows the number of times the working capital has been employed
in the process of carrying on business. It is figured as shown below:
Working Capital Turnover Ratio= Cost of Goods Sold or sales/Net Working
Capital

YEAR COST OF NET WORKING WORKING

GOODS SOLD CAPITAL CAPITAL
OR SALES TURNOVER
RATIO
2017-2018 204444.02 73700.25 2.77
2018-2019 229089.51 85022.74 2.69
2019-2020 346541.24 128998.17 2.68
2020-2021 454295.29 99556.92 4.56
2021-2022 516107.82 37384.26 13.8

Table no. 7 Analysis of working capital turnover

57
 WORKING CAPITAL TURNOVER RATIO
16
14
12
10
RATIO

8
6 WORKING CAPITAL TURNOVER
RATIO
4
2
0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig no. 11 Bar chart of working capital turnover

4. PROFITABILITY RATIOS
Accounting ratios as a tool of financial analysis are computed to measure the
profitability. Such ratios measuring the profitability are known as profitability ratios.
Some of them are:
i. GROSS PROFIT RATIO
This ratio indicates the relationship between gross profit and net sales. . It is
figured as shown below:

Gross Profit Ratio= Gross Profit/Net Sales (Net Revenue from Operations)*100

YEAR GROSS NET SALES GROSS

PROFIT PROFIT
RATIO
2017-2018 61276.56 204209.97 30%
2018-2019 72458.73 229089.51 31%
2019-2020 153599.83 346541.24 44%
2020-2021 104314.16 438710.93 23.77%
2021-2022 89559.93 495643.31 18.06%
Table no. 8 Analysis of Gross profit ratio

58
 GROSS PROFIT RATIO
50%
45%
40%
35%
30%
RATIO

25%
GROSS PROFIT RATIO
20%
15%
10%
5%
0%
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig no. 12 Bar chart of gross profit ratio

5 NET PROFIT RATIO

It indicates overall efficiency of the business. It establishes the relationship
between Net Profit and Net Sales.
Net Profit Ratio= Net Profit/Sales (Revenue from Operations) *100

YEAR NET PROFIT SALES NET PROFIT

RATIO
2017-2018 18705.37 204209.97 9%
2018-2019 21819.55 229089.51 9.5%
2019-2020 84512.15 346541.24 24.38%
2020-2021 30484.75 451584.23 6%
2021-2022 20899.82 516107.82 4.04%
Table no. 9 Analysis of Net profit ratio

59
 NET PROFIT RATIO
30%

25%

20%
RATIO

15%
NET PROFIT RATIO
10%

5%

0%
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
YEAR

Fig. 13 Bar chart of net profit ratio

6 RETURN ON CAPITAL EMPLOYED OR RETURN ON INVESTMENT

It assesses the overall performance of the enterprise. It measures, how
efficiently the resources entrusted to the business are used.
Return on Capital Employed= Profit before Interest, Tax and Dividend/Capital
Employed*100

YEAR PROFIT CAPITAL RETURN ON

BEFORE EMPLOYED CAPITAL
INTEREST, TAX EMPLOYED
AND DIVIDEND
2017-2018 28686.47 234546.50 12.2%
2018-2019 31857.60 260289.77 12.2%
2019-2020 63003 346113.58 18.20%
2020-2021 68239 357021.52 19.11%
2021-2022 67468 398422.84 16.93%

Table no. 10 Analysis of Return capital

60
 Series 1
25.00%

20.00%

15.00%

Series 1
10.00%

5.00%

0.00%
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

Fig. 14 Bar chart of return capital

61
 CHAPTER -5
DATA INTERPRETATION

62
 Data Interpretation
1. Above table shows the current ratio of five years (2017-2022). The Current Ratio of
UFLEX Ltd. varied from 2.46 to 1.18. The liquidity position of UFLEX Ltd. in terms
of current ratio was above the standard norm volume of 2:1 till 2017 but it came down
to 1.18 in the last two years. This shows utilization of idle funds in the company.

1(i)The Ideal Ratio is 1:1. The high Quick Ratio indicates that the firm has the ability
to meet its current liabilities. The above table shows the Quick Ratio of five years
(2017-2022). The Quick Ratio of UFLEX Ltd. varied from 2.01 to 0.95. The liquidity
position of UFLEX Ltd. in terms of quick ratio was more than the standard till 2014.
The liquidity position of UFLEX Ltd. in terms of quick ratio was above the standard
norm volume of 2:1 till 2014 but it came down to 0.95 in the last year.

1(ii)This Ratio indicates that the company has taken more debt in the first two years
and they reduced their debt taken for further years. Table shows the Debt Ratio of five
years (2017-2022). The Debt Ratio of UFLEX Ltd. is started with 1.06 in the year
2018 and it slightly increased to 1.09 in the next year and decreased during the year
2019 to 0.67 and reached 0.49 in 2022. This shows that the firm enjoyed higher
degree of protection during the last three years.
2 The table shows Total Assets to Debt Ratio of five years (2017-2022). This ratio
indicates that the Total Assets to Debt Ratio was low i.e. 2.77 in 2017 but it gradually
increased after 2018. In the last two years the safety margin available to the suppliers
of long-term debts is satisfactory which shows that the debt is being covered by the
assets.

2(i) In the above Table shows the Inventory Turnover Ratio of five years (2021-
2022). The ratio increased because the year sales are increased. The ratio is decreased
because the year sales are decreased. The inventory ratio of UFLEX Ltd. was 7.61
times in the year 2018 and it was slightly increased to 8.80 times in the next year. It
was decreased to 7.70 times in the year 2017, and increased in 2019 and 2019 but
majorly in 2019 i.e. 19.21 times. This higher ratio indicates that the firm has an
efficient management of inventories.
2(ii) Debtors Turnover Ratio should be very high then only the company will be
receiving its debts within a short period. It indicates the company has taken less time
to convert the credit sales into cash. In the above Table shows the Debtors turnover
ratio of five years (2017-2022).

63
3.The debtors’ turnover ratio of UFLEX Ltd. was started with 5.16 in the year 2018
and it decreased to 3.87 in the year 2018, but again increased in the year 2019 and
2019 to 4.50 and 4.56 respectively. But in 2017 it shows a decrease with 3.88 times.
This shows that the debts were collected more quickly in the year 2017 but in 2022 it
came down.
3(i). The above chart shows the velocity of the utilization of Net Working Capital. It
has been observed that the working capital turnover ratio of UFLEX Ltd. in the year
2017 was 2.77 but it continuously goes on increasing year after year and in the year
2022 there was a huge difference in the working capital of the firm from the previous
years. It signifies that there is better efficiency in the utilization of working capital.

3(ii). The above chart shows the gross profit from the year 2017-2022. Cost of Goods
sold lowers when the Gross Profit Ratio is higher. In the year 2018 the gross profit
was 30% and increased till 2019 with 44% but after 2019 there was a decline and the
gross profit came down to 23.77% and 18.06% in the year 2020 and 2021
respectively. As a result, Cost of Goods sold remains lower only till 2022.

4. Net profit ratio was 9%, 9.5%, 24.38%, 6% , and 4.04% in respective year of 2017,
2018, 2019, 2020 and 2021 and the company achieved maximum net profit ratio in
2016 which indicates good position of the business whereas in last two years i.e. 2021
and 2021 company earned lesser profit compared to the previous years.

5.The above chart shows the return on investment during the year 2017-2022. It can
be clearly analyzed from the data that the return on investment remained same in 2018
and 2019 and then increased to 18.20% and 19.11% in the year 2020 and 2021
respectively but there was a slight decrease in the year 2022 in return on investment.
But the overall performance of the enterprise is still satisfactory.

64
 CHAPTER -6
SUMMARY &
CONCLUSIONS

65
 Summary & Conclusions
The purpose of the project report was to provide an analytical overview of the
analysis of financial statements of UFLEX Ltd.
• The overall performance of the enterprise is very good as the return on
investment is quite high which will ultimately attract more investors.

• UFLEX Limited enjoys a good rapport with its suppliers as well as with its
customers, enabling it to make payments for liabilities for whenever they are
due.

• On the basis of various aspects, it was found that the division is quite
successful in maintaining the organization and the division is maintaining a
very good liquidity. Little bit of problem is there with inventory turnover in
2016.
.
• If there will be better management in dealing with debtors, management
would definitely be able to collect debts more quickly.

• UFLEX Limited. has achieved low profit in 2016 as compared to previous

year but still the profitability position of the company is satisfactory

66
 Results of the Study
Findings of the project are summed up as follows:
➢ There is no change in the share capital of the firm. It remains the same for the
year indicating that company does not want to decentralize the authority
among the new shareholder
➢ Profit after tax of company is undergoing through constant changes. As it
decreased approximately by the 15 crores in Mar2012 as compare to Mar11
which rises again in the year Rs.18 crore and becomes stable at approximately
at Rs. 55 crores in the yearMar14 and Mar 15.
➢ Company has comparatively strong and stable liquidity position indicating that
the company can meet for its short-term obligations at time, helps in
establishment of good market image.
➢ Also, company practice of Trade on equity is not benefiting the company as
company EPS and equity dividend of the company is falling simultaneously. o
Overall cash balance maintained by the company on and average basis lies
between Rs.18 Crore to Rs. 23 crores.
➢ Rise in net worth of the company from years indicating satisfactory
profitability of the company.
➢ We found that the current ratio of five years (2017-2022) of UFLEX Ltd.
varied from 2.46 to 1.18. The liquidity position of UFLEX Ltd. in terms of
current ratio was above the standard norm volume of 2:1 till 2017 but it came
down to 1.18 in the last two years. This shows the utilization of idle funds in
the company.
➢ We found that the Quick Ratio of five years (2017-2022) of UFLEX Ltd.
varied from 2.01 to 0.95. The liquidity position of UFLEX Ltd. in terms of
quick ratio was more than the standard i.e., 1:1 till 2018. The liquidity position
of UFLEX Ltd. in terms of quick ratio was above the standard norm volume of
2:1 till 2018 but it came down to 0.95 in the last year.
➢ We found with the help of Debt Equity Ratio that the company has taken
more debt in the first two years and they reduced their debt taken for further
years. Debt Ratio of five years (2017-2022) of UFLEX Ltd. is started with
1.06 in the year 2017 and it slightly increased to 1.09 in the next year and

67
 decreased during the year 2018 to 0.67 and reached 0.49 in 2022. This shows
that the firm enjoyed higher degree of protection during the last three years.
➢ We found that Total Assets to Debt Ratio indicates that the Total Assets to
Debt Ratio was low i.e., 2.77 in 2017 but it gradually increased after 2018. In
the last two years the safety margin available to the suppliers of long-term
debts is satisfactory which shows that the debt is being covered by the assets.
➢ We found that the Inventory Turnover Ratio increased because the year
sales are increased. The ratio is decreased because the year sales are
decreased. The inventory ratio of UFLEX Ltd. was 7.61 times in the year 2017
and it was slightly increased to 8.80 times in the next year. It was decreased to
7.70 times in the year 2017, and increased in 2017 and 2018 but majorly in
2017 i.e. 19.21 times. This higher ratio indicates that the firm has an efficient
management of inventories.
➢ We found that the Debtors turnover ratio of UFLEX Ltd. was started with
5.16 in the year 2017 and it decreased to 3.87 in the year 2017, but again
increased in the year 2018 and 2013 to 4.50 and 4.56 respectively. But in 2018
it shows a decrease with 3.88 times. This shows that the debts were collected
more quickly in the year 2017 but in 2022 it came down.

➢ We found that the working capital turnover ratio of UFLEX Ltd. in the year
2017 was 2.77 but it continuously goes on increasing year after year and in the
year 2022 there was a huge difference in the working capital of the firm from
the previous years. It signifies that there is better efficiency in the utilization of
working capital.
➢ We found out that Cost of Goods sold lowers when the Gross Profit Ratio is
higher. In the year 2017 the gross profit was 30% and increased till 2018 with
44% but after 2018 there was a decline and the gross profit came down to
23.77% and 18.06% in the year 2020 and 2022 respectively. As a result, Cost
of Goods sold remains lower only till 2018.
➢ We found out that net profit ratio was 9%, 9.5%, 24.38%, 6%, and 4.04% in
respective year of 2017, 2018, 2019, 2020 and 2022 and the company
achieved maximum net profit ratio in 2018 which indicates good position of
the business whereas in last two years i.e., 2021 and 2022 company earned
lesser profit compared to the previous years.
68
➢ We found out that the return on investment remained same in 2017 and 2022
and then increased to 18.20% and 19.11% in the year 2014 and 2019
respectively but there was a slight decrease in the year 2022 in return on
investment. But the overall performance of the enterprise is still satisfactory.

69
 LIMITATIONS

Following are the limitations of the study:

1) The topic financial analysis is itself a very vast topic yet very important also.
Due to time restraints, it was not possible to study in depth what practices are
followed at UFLEX LTD.
2) Many facts and data are such that they are not to be disclosed because of the
confidential nature of the same.
3) Since the financial matters are sensitive in nature the same could not be
acquired easily.
4) The study is restricted to only the Five Year data of UFLEX LTD.
5) The accuracy of financial into information largely depends on how accurately
financial statements are prepared

70
 Suggestions, Scope for further Study & Conclusion

On the basis of the intense study for the past five years it was found that the overall
performance of the company is quite Satisfactory. The division is performing
according to the required situation but if certain aspects are taken into consideration
than definitely the performance of the company will increase beyond the expectation.

❖ The company should try to keep the debtors turnover ratio high then only the
company will be receiving its debts within a short period.
❖ It should also try to maintain higher inventory turnover ratio so that the firm
can have efficient management of inventories.
❖ The management must consider the various financing policies. The
dependence on one source is not at all relevant in this highly competitive
environment. The management must focus on overall moderate working
capital policy.
❖ The company should pay more attention in increasing the profit and try to
achieve more than the previous year for this company should try to increase
their sales.
❖ The company should take some steps in order to maintain its liquidity.

Conclusion

The company’s overall position is at a good position. Particularly the current year’s
position is well due to raise in the profit level from the last year position. It is better
for the organization to diversify the funds to different sectors in the present market
scenario

71
 BIBLIOGRAPHY
Websites:
• https://www.ijtsrd.com/papers/ijtsrd18384.pdf

• https://groww.in/blog/70-investment-quotes/

• https://www.forbes.com/advisor/in/investing/beginners-guide-to-

stockmarket-investing/

• https://www.elearnmarkets.com/blog/sebi-purpose-objective-

functionssebi/

• https://investorzone.in/what-are-the-different-investment-

avenuesavailable-in-the-indian-market/

• https://iiflinsurance.com/knowledge-centre/term-insurance/best-

shortterm-investment-options-in-india

• https://www.maxlifeinsurance.com/blog/investments/best-

investmentoptions-in-india

• https://www.wishfin.com/savings-account-interest-rates/

• https://www.bankbazaar.com/recurring-deposit-rates.html

• https://www.bankbazaar.com/fixed-deposit-rate.html

• https://groww.in/p/investment-basics/#mf-chap2

72
 JOURNALS

• Muhammad Sadiq et,al,(2019), “Does corporate governance play any

role in investor confidence,corporate investment decisions relationship?
Evidence from Pakistan and India” Journal ofEconomics and Business
105,105839.
• M. Jaya & C.S. K. ,(2017),Malarvizhi Sensitivity Of The Investor’s
Towards Stock Market Investment. International Journal of Marketing &
Financial Management, ISSN: 2348 –3954 (online) ISSN:2349 –2546
(print), Volume 5, pp 37–pp 43.
• Awais M, Laber F,et.al. (2016),Impact of Financial Literacy and
Investment Experience on RiskTolerance and Investment Decisions:
Empirical Evidence from Pakistan, International Journal of Economics
and Financial, vol.6. pp. 73- 79
• N.S.V.N Raju & Anita Patra.,(2016), “A Study on Investor’s Attitude
towards investment in Equity stocks with reference to East Godavari,
West Godavari & Vijayawada Districts of Andhra Pradesh”International
Journal of Control Theory and Applications (IJCTA) Volume 9,Issue 41,
ISSN0974- 5572.
• U.Raghavendra Prasad,(2016), “ A Study On Investors’ Perception And
Attitude Towards Investment InIndian Stock Market With Special
Reference To Chittoor District”, Asia Pacific Journal ofResearch, Vol: I.
Issue XLII, August .
• Sangeeta Jauhari, Deepti Maheshwari,H.S. Yadav,KavitaIndapurkar
(2015) ,“Perception of Investors inStock Market: A Case Study of
Bhopal Region”, Research on Humanities and Social SciencesISSN
(Paper)2224-5766 ISSN (Online)2225-0484 (Online) Vol.5, No.13.
Ashok Kumar (2014), suggested that majority of investors preferred to
invest in Fixed deposit with banks followed by gold, units of UTI, fixed
deposit of non-government companies, mutual funds, equity shares and
debenture for safety and liquidity.

73
APPENDICES

74
 ATTACH AUDIT BALANCE SHEET -2021-2022
CONSOLIDATED BALANCE SHEET AS AT 31.3.22

PARTICULARS AS AT 31.3.22 AS AT 31.3.21

1)EQUITY AND LIABILITIES
a) Share Capital 7221.15 7218.0
b) Reserves & Surplus.. 211650.6 17133.07
c) Money received against share warrants 7500.007500.0
- 226371.8 188851.1
2) MINORITY INTEREST
3) NON CURRENT LIABILITIES
a) Long term borrowings 114616.68 95265.80
b) Deferred tax liability 15694.27 16064.97
c) Other current liabilities 338.7521.75
130649.7 111852.2
4) CURRENT LIABILITIES
a) Short term borrowing 43678.60 22317.4
b) Trade payables 60375.56 36091.8
c) Other current liabilities 59277.99 46580.7
d) Short term provision 8540.0410587.0
171872.19115577.0
TOTAL 528893.7416354.1
(1) ASSETS
a) Fixed assets
i. Tangible assets 265987.56 174638.84
ii. Intangible assets 1701.36 614.55
iii. Capital work in progress 29117.51 30800.40
iv. Intangible assets under development 10.30 195.57
b) Non-current investment 9645.33 9566.05
c) Long term loans and advances 14885.89 20756.38
d) Other non-current assets 3977.13 1042.78
325325.28

75
237614.57
(2) Current assets
a) Current investments - 1300
b) Inventories 43363.30 36506.23
c) Trade receivables 99556.92 76369.10
d) Cash and Bank Balances 16808.11 27828.13
e) Short term loans and advances 42522.59 36483.28
f) Other current assets 1317.51 252.80
203568.43178739.54
TOTAL 528893.71 416354.11

76
 CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED
31.3.2022

PARTICULARS For the Year Ended For the Year Ended

31.3.22 31.3.21
Revenue from Operations
Gross Sales & Job Work 22 (A) 500815.56 390940.93
Less: Inter unit Sales & Job Work 35673.69 34354.06
Less: Excise Duty 26430.9416368.25
Net Sales & Job Work 438710.93 340218.62
Other Operating Income 22 (B) 12873.309426.49
Revenue from Operations 451584.23 349645.11
Other Income 2514.17 1434.29
Share of Profit t in Associate for the Year 196.89162.08
Total Revenue 454295.29351241.48
Expenses:
Cost of materials consumed 264903.16
166053.02
Purchase of Stock-in-Trade 28081.79 4275.39
Changes in inventories of finished goods,
And Stock-in-Trade
Employee benefit expense 22513.35
17123.38
Finance costs 19925.31 16431.98
Depreciation and amortization expense 17828.83
13631.00
Other expenses 76331.76
61853.20
Expenses Allocated to Self Constructed Assets (3193.57) (2612.16)
Total Expenses 423810.54266706.65
Profit t before tax 30484.75
84534.83
Less: Tax expense:

77
- Current tax 5305.88
12224.71
- Deferred tax (332.95)
2607.08
- Short Provision of Income Tax for earlier years 61.99
20.87
Profit for the year before Minority Interest 25449.83
69682.17
Minority Interest (Share in Losses) 52.11116.13
Profit t for the year 25501.9469798.30
Earning Per Shari
A)Basic 35.32 102.9
b) Diluted 30.20 94.27

78
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31.3.2022

PARTICULARS For the Year Ended For the Year Ended

31.3.22 31.3.21
A) CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax, exceptional items 30484.75 84512.15
Adjustment for:
Depreciation / Amortisation 17828.83 13641.31
Exchange rate fluctuations 3942.57 (2016.00)
(Profit) / Loss on assets sold (Net) 631.54 (46.28)
Fixed Assets written Off 2.61 61.37
Interest & Financial Charges 19925.31 16431.98
Interest received from Bank (1958.28) (778.70)
Dividend received on non trade investment ( 50.82) (52.73)
Profit on sale of investment(NET) (222.20) (442.81)
Provision for doubtful debt 1026.07 2101.72
Bad &and doubtful debt 638.06 994.09
Sundry balance written off 899.81377108.98210.17228969.75
Operating Profit before Working Capital 67593.73
113504.58
Adjustment for:
Trade and other receivables ( 21097.88) (33148.31)
Inventories (6857.07) (18434.07)
Trade and other payables 39366.7411411.79(152.79)
(36324.7)
Cash generated from operating activities 79005.52
77179.79 Income Tax
( 5367.87) 12245.58
Exchange rate fluctuations 1702.763665.112016.0010251.20
Net Cash from operating activities (A) 75340.41
66949.2

79
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (100971.41) ( 54496.82)
Sale proceeds of Fixed Assets 2996.04 863.24
Inflow / (Outflow) on Investments (Net) 1442.72 (823.30)
Loans to bodies corporate (Net) (4970.00) (1584.26)
Capital Reserve arising on acquisition - ( 250.85) (330.87)
Interest received from Banks / others 1958.28 778.70
Dividend received on Investments 50.8252.63
Net Cash used in Investing Activities (B) ( 99744.40)
(55540.58)
C. CASH FLOW FROM FINANCING ACTIVITIES
Receipt of Securities Premium Account 41.37 15111.50
Receipt from issue of warrants - 7500.00
Premium on redemption of FCCB (1131.66)
810.38
Share Capital Received 3.07
724.69
Addition in Minority interest (21.25)
(697.27)
Dividend Paid (5415.86)
(32646.70)
Dividend Distribution Tax (878.59)
(539.42 )
Interest & Financial Charges (19925.31)
(16431.98)
Additions of Borrowings (Net 40712.205257.71
Net Cash used in Financing Activities (C) 13383.97
2751.02
Net (Decrease) in Cash and Cash equivalents (A+B+C) (11020.02)
8657.61
Opening Cash and Cash equivalents 27828.13
19170.52
Closing Cash and Cash equivalents 16808.11

80
27828.13

81
 CONSOLIDATED BALANCE SHEET AS AT 31.3.22

PARTICULARS AS AT 31.3.22 AS AT 31.3.21

1)EQUITY AND LIABILITIES
Shareholders' Fund
a) Share Capital 7221.15 7221.15
b) Reserves & Surplus.. 242639.27 211650.6
c) Money received against share warrants - 7500.00
2) MINIORITY INTEREST 24986.42 226371.8
3) NON CURRENT LIABILITIES
a) Long term borrowings 130116.50 114616.68
b) Deferred tax liability 17199.06 15694.27
c) Other current liabilities 372.73 338.7
d) Long term provisions 874.13 658.88
148562.42 131254.99
4) CURRENT LIABILITIES
a) Short term borrowing 51173.27 43678.60
b) Trade payables 72246.17 60375.56
c) Other current liabilities 68097.23 59277.99
d) Short term provision 6481.927903.04
197998.59171235.3
TOTAL 596421.43 528862.1
II ASSETS
(1) Non-current assets
a) Fixed assets
i) Tangible assets 332904.35 265995.88
ii) Intangible assets 1011.95 1693.04
iii) Capital work-in-progress 3833.91 29117.51
iv) Intangible assets under development - 10.30
b) Non-current investments 15(1) 9988.49 9645.53
c) Long-term loans and advances 11991.28 14854.36

82
d) Other non-current assets 1308.603977.13
361038.58 325293.75
(2) Current assets
a) Current investments 200.00 -
b) Inventories 47020.27 43363.30
c) Trade receivables 127602.49 99556.92
d) Cash and Bank Balances 16222.08 16808.11
e) Short-term loans and advances 42221.25 42522.59
f) Other current assets 2116.761317.51
235382.85203568.43
Total: 596421.43528862.18

83
CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED
31.3.2022
(Rs in Lacs)

Particulars. For the Year Ended For the Year

Ended
31.3.22 31.3.21
Revenue from Operations
Gross Sales & Job Work (A) 560014.88
500815.56
Less: Inter unit Sales & Job Work 34650.55
35673.69
Less: Excise Duty 29721.0226430.94
Net Sales & Job Work 495643.31
438710.93
Other Operating Income (B) 20464.51 12873.30
Revenue from Operations 516107.82
451584.23
Other Income 1907.92
2514.17
Share in Profit t of Associate for the Year 263.19196.8
Total Revenue 518278.93454295.29
Expenses:
Cost of materials consumed 2298829.35
264903.16
Purchase of Stock-in-Trade 30767.71
28081.79
Changes in inventories of f nished goods, (5195.35)
(2580.09)
and Stock-in-Trade
Employee benefit to expense 27765.04
22513.35

84
Finance costs 22969.30
19925.31
Depreciation and amortization expense 23598.68
17828.83
Other expenses 101843.49
76331.76
Expenses Allocated to Self Constructed Assets (3198.11) (3193.57)
Total Expenses 497379.11423810.54
Profit t before tax 20899.82
30484.75
Less: Tax expense:
- Current tax 3029.78
5305.88
- Deferred tax 1558.40
(332.95)
- (Excess) / Short Provision of Income Tax for earlier years (2725.23)
61.99
Profit t for the year before Minority Interest 19036.87
25449.83
Minority Interest (Share in Losses) - 52.11
Profit t for the year 19036.8725501.94
Earning Per Share
a) Basic (Rs.) 26.36 35.32
b) Diluted (Rs.) 25.82 30.20

85
 List of Table

Table no. Title Page No

1. Table no. 1 Analysis of current ratio 51

2. Table no. 2 Analysis of quick ratio 52

3. Table no.3 Analysis of Debt Equity Ratio 53

4. Table no. 4 Analysis of Total asset of debt ratio 54

5. Table no. 5 Analysis of stock turnover 55

6. Table no. 6 Analysis of debtord turnover ratio 56

7. Table no. 7 Analysis of working capital turnover 57

8. Table no. 8 Analysis of Gross profit ratio 58

9. Table no. 9 Analysis of Net profit ratio 59

10. Table no. 10 Analysis of Return capital 60

86
 List of figures

Figure Title Page No

no.
1. Fig.1 Chairman profile 20

2. Fig.2 Company group 26

3. Fig.3 Uflex industries Ltd. 27

4. Fig.4 Certificate 28

5. Fig. 5 Bar chart of current ratio 52

6. Fig no.6 Bar chart of Quick ratio 53

7. Fig. 7 Bar chart of Debt Equity Ratio 54

8. Fig no.8 Bar chart of Total assest debt ratio 55

9. Fig no.9 Bar chart of sock turnover ratio 56

10. Fig no. 10 Bar chart of Debtor’s turnover ratio 57

11. Fig no. 11 Bar chart of working capital turnover 58

12. Fig no. 12 Bar chart of gross profit ratio 59

13. Fig. 13 Bar chart of net profit ratio 60

14. Fig. 14 Bar chart of return capital 61

87