A PROJECT REPORT ON

“A Financial Analysis of Blue Dart Express Ltd.”

SEMISTER VI
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELOR IN COMMERCE (ACCOUNTING AND FINANCE)
UNDER THE FACULTY OF COMMERCE

Submitted By:
Mr. VEDANT PANDURANG MORJE
{ROLL NO – 23837029}
Under the Guidance of
PROF. MOSHIN PATHAN

Vidya Vikas Education Society’s

Vikas College of Arts, Science and Commerce
(Affiliated to University of Mumbai) NACC
Reaccredited “A” Grade
Kannamwar Nagar – II, Vikhroli [EAST]
Mumbai – 40083
2023-2024

1
 A PROJECT REPORT ON
“A Financial Analysis of Blue Dart Express Ltd.”
SEMISTER VI
A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELOR IN COMMERCE (ACCOUNTING AND FINANCE)
UNDER THE FACULTY OF COMMERCE

Submitted By:
Mr. VEDANT PANDURANG MORJE
{ROLL NO – 23837029}
Under the Guidance of
PROF.MOSHIN PATHAN

Vidya Vikas Education Society’s

Vikas College of Arts, Science and Commerce
(Affiliated to University of Mumbai) NACC
Reaccredited “A” Grade
Kannamwar Nagar – II, Vikhroli [EAST]
Mumbai – 40083
2023-2024

2
 Vikas College of Arts, Science and Commerce
(Affiliated to University of Mumbai) NACC
Reaccredited “A” Grade
Kannamwar Nagar – II, Vikhroli [EAST]
Mumbai – 40083
2023-2024
CERTIFICATE

This is to certify Mr. VEDANT PANDURANG MORJE has worked and duly
completed his Project Work for the degree of Bachelor in commerce (Accounting &
Finance) under the Faculty of Commerce in the subject of Project Report and his
project is entitled, “A Financial Analysis of Blue Dart Express Ltd.” under my
supervision. I further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University. It is his own work and facts reported by his personal
findings and investigations.

Co-ordinator Principal

(Prof. Jyotsna N. Shimpi) (Dr. R. K. Patra)

Project Guide (External Examiner)

(Prof.MOSHIN PATHAN)

3
 DECLARATION

I undersigned Mr.VEDANT PANDURANG MORJE here by, declare that the work
embodied in this project work titled “A Financial Analysis of Blue Dart Express
Ltd.”, forms my own contribution to the research work carried out under the guidance
of Prof. MOHSIN PATHAN is a result of my own research work and has not been
previously submitted to any other University for any Degree/ Diploma to this or any
other University.
Wherever reference has been made to previously works of others, it has been clearly
indicated as such and included in bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

VEDANT PANDURANG MORJE

Certified by,

(Prof.MOSHIN PATHAN)

4
 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and the
depth is enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal Dr. R. K. Patra for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator Prof. Jyotsna N. Shimpi, for her
moral support and guidance.
I would also like to express my sincere gratitude towards my project guide Prof.
MOHSIN PATHAN whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
I would like to thank my Friend for helping me in the completion and active
suggestions for my projects.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

5
 INDEX

Chapter Title Page

No. No.
1. Introduction 07
1.1 Financial Analysis 07
1.2 Parties Interested 09
1.3 Techniques & Tools of Financial Statement 10
1.4 Analysis Limitation of Financial Statement Analysis 13
1.5 Important of Ratio Analysis 19
1.6 Types of Ratios 20
1.7 Courier Service Introduction 23
1.8 Function of Courier Company 24
1.9 Introduction of Company 32
2. Research Methodology 46
2.1 Objective of The Study 46
2.2 Scope of The Study 46
2.3 Research Design 46
2.4 Data Collection 46
2.5 Source of Data 47
2.6 Methods of Data Analysis 47
2.7 Limitation of Study 47
3. Literature Review 48
4. Data Analysis, Interpretation & Presentation 56
4.1 Liquidity Ratio 57
4.2 Profitability Ration 71
5. Finding, Conclusion & Suggestion 79
5.1 Findings 79
5.2 Conclusion 81
5.3 Bibliography 82

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Chapter: -1 INTRODUCTION
1 FINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION
You have already learnt about the preparation of financial statements i.e. Balance
Sheet and Trading and Profit and Loss Account in the module titled ‘Financial
Statements of Profit and Not for Profit Organisations’. After preparation of the
financial statements, one may be interested in analysing the financial statements with
the help of different tools such as comparative statement, common size statement,
ratio analysis, trend analysis, fund flow analysis, cash flow analysis, etc. Blue dart
express ltd financial performance, including revenue, profit and growth trends. in this
process a meaningful relationship is established between two or more accounting
figures for comparison. In this lesson you will learn about analysing the financial
statements by using comparative statement, common size statement and trend
analysis.

1.1 FINANCIAL STATEMENTS ANALYSIS (MEANING, PURPOSE AND

PARTIES INTERESTED)

We know business is mainly concerned with the financial activities. In order to

ascertain the financial status of the business every enterprise prepares certain
statements, known as financial statements. Financial statements are mainly prepared
for decision making purposes. But the information as is provided in the financial
statements is not adequately helpful in drawing a meaningful conclusion. Thus, an
effective analysis and interpretation of financial statements is required.

Analysis means establishing a meaningful relationship between various items of the

two financial statements with each other in such a way that a conclusion is drawn. By
financial statements we mean two statements:

(i) Profit and loss Account or Income Statement

(ii) (ii) Balance Sheet or Position Statement

These are prepared at the end of a given period. They are the indicators of profitability
and financial soundness of the business concern. The term financial analysis is also
known as analysis and interpretation of financial statements. It refers to the
establishing meaningful relationship between various items of the two financial
statements i.e. Income statement and position statement. It determines financial
strength and weaknesses of the firm. Analysis of financial statements is an attempt to
7
assess the efficiency and performance of an enterprise. Thus, the analysis and
interpretation of

8
financial statements is very essential to measure the efficiency, profitability, financial
soundness and future prospects of the business units. Financial analysis serves the
following purposes :

Measuring the profitability The main objective of a business is to earn a satisfactory

return on the funds invested in it. Financial analysis helps in ascertaining whether
adequate profits are being earned on the capital invested in the business or not. It also
helps in knowing the capacity to pay the interest and dividend.

Indicating the trend of Achievements Financial statements of the previous years can
be compared and the trend regarding various expenses, purchases, sales, gross profits
and net profit etc. can be ascertained. Value of assets and liabilities can be compared
and the future prospects of the business can be envisaged.

Assessing the growth potential of the business the trend and other analysis of the
business provides sufficient information indicating the growth potential of the
business.

Comparative position in relation to other firms The purpose of financial statements

analysis is to help the management to make a comparative study of the profitability of
various firms engaged in similar businesses. Such comparison also helps the
management to study the position of their firm in respect of sales, expenses,
profitability and utilising capital, etc.

Assess overall financial strength The purpose of financial analysis is to assess the
financial strength of the business. Analysis also helps in taking decisions, whether
funds required for the purchase of new machines and equipment’s are provided from
internal sources of the business or not if yes, how much? And also, to assess how
much funds have been received from external sources.

Assess solvency of the firm The different tools of an analysis tell us whether the firm
has sufficient funds to meet its short term and long-term liabilities or not.

9
1.2 PARTIES INTERESTED

Analysis of financial statements has become very significant due to widespread

interest of various parties in the financial results of a business unit. The various
parties interested in the analysis of financial statements are :

(i) Investors: Shareholders or proprietors of the business are interested in the

well being of the business. They like to know the earning capacity of the
business and its prospects of future growth.
(ii) Management: The management is interested in the financial position and
performance of the enterprise as a whole and of its various divisions. It helps
them in preparing budgets and assessing the performance of various
departmental heads.
(iii) Trade unions : They are interested in financial statements for negotiating the
wages or salaries or bonus agreement with the management.
(iv) Lenders : Lenders to the business like debenture holders, suppliers of loans
and lease are interested to know short term as well as long term solvency
position of the entity.
(v) Suppliers and trade creditors : The suppliers and other creditors are
interested to know about the solvency of the business i.e. the ability of the
company to meet the debts as and when they fall due.
(vi) Tax authorities : Tax authorities are interested in financial statements for
determining the tax liability.
(vii) Researchers : They are interested in financial statements in undertaking
research work in business affairs and practices.
(viii) Employees : They are interested to know the growth of profit. As a result of
which they can demand better remuneration and congenial working
environment.
(ix) Government and their agencies : Government and their agencies need
financial information to regulate the activities of the enterprises/ industries
and determine taxation policy. They suggest measures to formulate policies
and and regulations.
(x) Stock exchange : The stock exchange members take interest in financial
statements for the purpose of analysis because they provide useful financial

10
 information about companies. Thus, we find that different parties have
interest in financial statements for different reasons.

1.3 TECHNIQUES AND TOOLS OF FINANCIAL STATEMENT ANALYSIS

Financial statements give complete information about assets, liabilities, equity,

reserves, expenses and profit and loss of an enterprise. They are not readily
understandable to interested parties like creditors, shareholders, investors etc. Thus,
various techniques are employed for analysing and interpreting the financial
statements. Techniques of analysis of financial statements are mainly classified into
three categories :

I Cross-sectional analysis It is also known as inter firm comparison. This analysis

helps in analysing financial characteristics of an enterprise with financial
characteristics of another similar enterprise in that accounting period. For example, if
company A has earned 15% profit on capital invested. This does not say whether it is
adequate or not. If we analyse further and find that a similar company has earned 16%
during the same period, then only we can make a conclusion that company B is better.
Thus, it turns into a meaningful analysis.

(ii) Time series analysis It is also called as intra-firm comparison. According to this
method, the relationship between different items of financial statement is established,
comparisons are made and results obtained. The basis of comparison may be : –
Comparison of the financial statements of different years of the same business unit. –
Comparison of financial statement of a particular year of different business units.

(iii) Cross-sectional cum time series analysis This analysis is intended to compare the
financial characteristics of two or more enterprises for a defined accounting period. It
is possible to extend such a comparison over the year. This approach is most effective
in analysing of financial statements. The analysis and interpretation of financial
statements is used to determine the financial positon. A number of tools or methods or
devices are used to study the relationship between financial statements. However, the
following are the important tools which are commonly used for analysing and
interpreting financial statements:

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  Comparative financial statements
 Common size statements
 Trend analysis
 Ratio analysis
 Funds flow analysis
 Cash flow analysis

Comparative financial statements

In brief, comparative study of financial statements is the comparison of the financial

statements of the business with the previous year’s financial statements. It enables
identification of weak points and applying corrective measures. Practically, two
financial statements (balance sheet and income statement) are prepared in
comparative form for analysis purposes.

1. Comparative Balance Sheet The comparative balance sheet shows the different
assets and liabilities of the firm on different dates to make comparison of balances
from one date to another. The comparative balance sheet has two columns for the data
of original balance sheets. A third column is used to show change (increase/decrease)
in figures. The fourth column may be added for giving percentages of increase or
decrease. While interpreting comparative Balance sheet the interpreter is expected to
study the following aspects :

(i) Current financial position and Liquidity position

(ii) Long-term financial position

(iii) Profitability of the concern

(i) For studying current financial position or liquidity position of a concern

one should examine the working capital in both the years. Working capital
is the excess of current assets over current liabilities.
(ii) For studying the long-term financial position of the concern, one should
examine the changes in fixed assets, long-term liabilities and capital.
(iii) The next aspect to be studied in a comparative balance sheet is the
profitability of the concern. The study of increase or decrease in profit will
help the interpreter to observe whether the profitability has improved or
not.

12
 After studying various assets and liabilities, an opinion should be formed
about the financial position of the concern.

Interpretation

(i) The comparative balance sheet of the company reveals that during 2007
there has been an increase in fixed assets of 110,000 i.e. 13.49%. Long
MODULE - 6A Analysis of Financial Statements Notes 9 Financial
Statements Analysis –

An Introduction ACCOUNTANCY term liabilities to outsiders have relatively

increased by Rs 150,000 and equity share capital has increased by Rs 200000.
This fact indicates that the policy of the company is to purchase fixed assets from
the longterm sources of finance.

(ii)The current assets have increased by Rs 152000 i.e. 26.67% and cash has
increased by Rs 20,000. The current liabilities have increased only by Rs 20000
i.e. 12.9%. This further confirms that the company has used long-term finances even
for the current assets resulting into an improvement in the liquidity position of the
company.

(ii) Reserves and surplus have decreased from Rs 330,000 to Rs 222,000 i.e.
32.73% which shows that the company has utilized reserves and surplus
for the payment of dividends to shareholders either in cash or by way of
bonus.
(iii) The overall financial position of the company is satisfactory.

Comparative Income statement

The income statement provides the results of the operations of a business. This
statement traditionally is known as trading and profit and loss A/c. Important
components of income statement are net sales, cost of goods sold, selling expenses,
office expenses etc. The figures of the above components are matched with their
corresponding figures of previous years individually and changes are noted. The
comparative income statement gives an idea of the progress of a business over a
period of time. The changes in money value and percentage can be determined to
analyse the profitability of the business. Like comparative balance sheet, income
statement also has four columns. The first two columns are shown figures of various

13
items for two years. Third and fourth columns are used to show increase or decrease
in figures in absolute

14
amount and percentages respectively. The analysis and interpretation of income
statement will involve the following :

– The increase or decrease in sales should be compared with the increase or

decrease in cost of goods sold.

– To study the operating profits

– The increase or decrease in net profit is calculated that will give an idea about
the overall profitability of the concern.

COMMON SIZE STATEMENTS AND TREND ANALYSIS

The common size statements (Balance Sheet and Income Statement) are shown in
analytical percentages. The figures of these statements are shown as percentages of
total assets, total liabilities and total sales respectively. Take the example of Balance
Sheet. The total assets are taken as 100 and different assets are expressed as a
percentage of the total. Similarly, various liabilities are taken as a part of total
liabilities. Common size balance sheet A statement where balance sheet items are
expressed in the ratio of each asset to total assets and the ratio of each liability is
expressed in the ratio of total liabilities is called common size balance sheet.

1.4 LIMITATION OF FINANCIAL STATEMENT ANALYSIS

 Financial Statements Are Derived from Historical Costs - Transactions are

initially recorded at their cost. This is a concern when reviewing the balance
sheet, where the values of assets and liabilities may change over time. Some
items, such as marketable securities, are altered to match changes in their market
values, but other items, such as fixed assets, do not change. Thus, the balance
sheet could be misleading if a large part of the amount presented is based on
historical costs.

 Financial Statements Only Cover a Specific Period of Time - A user of

financial statements can gain an incorrect view of the financial results or cash
flows of a business by only looking at one reporting period. Any one period may
vary from the normal operating results of a business, perhaps due to a sudden
spike in sales or seasonality effects. It is better to view a large number of
consecutive financial statements to gain a better view of ongoing results.

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  Financial Statements Could be Wrong Due to Fraud- The management team of
a company may deliberately skew the results presented. This situation can arise
when there is undue pressure to report excellent results, such as when a bonus
plan calls for payouts only if the reported sales level increases. One might suspect
the presence of this issue when the reported results spike to a level exceeding the
industry norm, or well above a company’s historical trend line of reported results.

 Financial Statements Do Not Cover Non-Financial Issues-The financial

statements do not address non-financial issues, such as the environmental
attentiveness of a company's operations, or how well it works with the local
community. A business reporting excellent financial results might be a failure in
these other areas.

 Financial Statements May Not Have Been Verified- If the financial statements
have not been audited, this means that no one has examined the accounting
policies, practices, and controls of the issuer to ensure that it has created accurate
financial statements. An audit opinion that accompanies the financial statements
is evidence of such a review.

 Financial Statements Have No Predictive Value- The information in a set of

financial statements provides information about either historical results or the
financial status of a business as of a specific date. The statements do not
necessarily provide any value in predicting what will happen in the future. For
example, a business could report excellent results in one month, and no sales at
all in the next month, because a contract on which it was relying has ended.

Financial analysis report

Your financial analysis report highlights the financial strengths and weaknesses of
your business. Essentially, the report communicates the financial health of your
company to investors.

You can use a financial analysis report to attract the interest of investors and
help grow your business further.

16
Even though business owners can build their own financial analysis report,
sometimes other individuals may create reports about companies. Then, the
individuals creating the reports can use the research to recommend the business’s
stock to investors.

How to conduct a financial analysis report

Follow these four steps to conduct a financial analysis report for your small business.

1. Gather financial statement information

To begin conducting your financial analysis report, you must collect data.
Gather financial statements and other documentation.

Examples of financial reports include your income statement, cash flow

statements, and balance sheets. Consider also gathering any financial notes,
quarterly or annual records, and government reports (if applicable).

2 Calculate ratios

Calculate ratios that give a snapshot of your business’s financial health. For example,
you might calculate and include your business’s return on investment ratio. That way,
you can show investors the profitability of your investments.

Find what ratios matter most to your business. Add your ratios and calculations to
your financial analysis report.

3. Conduct a risk assessment

How risky is your business? Investors want to see if your business is worth the risk.

To show investors your business is worth investing in, conduct a risk assessment. You
can analyse your business’s risk by doing the following:

 Identify risks

 Document risks

 Identify individuals to monitor risks

17
 Determine controls to reduce risks

18
  Review risks regularly

4. Determine the value of your business

Lastly, estimate how much your business is worth. Determine the price of your
business’s stock and the value it can bring to investors.

Financial analysis report sections

To begin attracting investors, you must learn how to make a financial analysis report.
Review the common sections of a financial analysis report below.

Types of Financial Analysis

Vertical Analysis

This type of financial analysis involves looking at various components of the income
statement and dividing them by revenue to express them as a percentage. For this
exercise to be most effective, the results should be benchmarked against other
companies in the same industry to see how well the company is performing.

This process is also sometimes called a common-sized income statement, as it allows

an analyst to compare companies of different sizes by evaluating their margins
instead of their dollars.

Horizontal Analysis

Horizontal analysis involves taking several years of financial data and comparing
them to each other to determine a growth rate. This will help an analyst determine if a
company is growing or declining, and identify important trends.

When building financial models, there will typically be at least three years of
historical financial information and five years of forecasted information. This
provides 8+ years of data to perform a meaningful trend analysis, which can be
benchmarked against other companies in the same industry.

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Leverage Analysis

Leverage ratios are one of the most common methods analysts use to evaluate
company performance. A single financial metric, like total debt, may not be that
insightful on its own, so it’s helpful to compare it to a company’s total equity to get a
full picture of the capital structure. The result is the debt/equity ratio.

Common examples of ratios include:

 Debt/equity
 Debt/EBITDA
 EBIT/interest (interest coverage)
 Dupont analysis – a combination of ratios, often referred to as the pyramid of
ratios, including leverage and liquidity analysis
Growth Rates

Analysing historical growth rates and projecting future ones are a big part of any
financial analyst’s job. Common examples of analysing growth include:

 Year-over-year (YoY)
 Regression analysis
 Bottom-up analysis (starting with individual drivers of revenue in the business)
 Top-down analysis (starting with market size and market share)
 Other forecasting
methods Profitability Analysis

Profitability is a type of income statement analysis where an analyst assesses how

attractive the economics of a business are. Common examples of profitability
measures include:

 Gross margin
 EBITDA margin
 EBIT margin
 Net profit margin

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Liquidity Analysis

This is a type of financial analysis that focuses on the balance sheet, particularly, a
company’s ability to meet short-term obligations (those due in less than a year).
Common examples of liquidity analysis include:

 Current ratio
 Acid test
 Cash ratio
 Net working
capital Efficiency Analysis

Efficiency ratios are an essential part of any robust financial analysis. These ratios
look at how well a company manages its assets and uses them to generate revenue
and cash flow.

Common efficiency ratios include:

 Asset turnover ratio

 Fixed asset turnover ratio
 Cash conversion ratio
 Inventory turnover
ratio Cash Flow

As they say in finance, cash is king, and, thus, a big emphasis is placed on a
company’s ability to generate cash flow. Analysts across a wide range of finance
careers spend a great deal of time looking at companies’ cash flow profiles.

The Statement of Cash Flows is a great place to get started, including looking at each
of the three main sections: operating activities, investing activities, and financing
activities.

Common examples of cash flow analysis include:

 Operating Cash Flow (OCF)

 Free Cash Flow (FCF)

21
  Free Cash Flow to the Firm (FCFF)
 Free Cash Flow to Equity (FCFE)
1.5 Importance of ratio analysis

1. Financial Statement Analysis-

Understanding financial statements are important for stakeholders of the

company. Ratio analysis helps in understanding the comparison of these numbers;
furthermore, it helps in estimating numbers from income statements and balance
sheets for the future. For e.g. Equity shareholder looks into the P/E ratio, the
Dividend payout ratio, etc. while creditors observe Debt to Equity ratio, Gross
margin ratio, Debt to asset ratio, etc.

2. Efficiency of Company-

Ratio analysis is important in understanding the company’s ability to generate

profit. Return on Asset, Returns on Equity tell us how much profit the company is
able to generate over assets of the firm and equity investments in the firm, while
gross margin and operating margin ratios tell us the company’s ability to generate
profit from sales and operating efficiency.

3. Planning and Forecasting-

From a Management and investor point of view, ratio analysis helps to

understand and estimate the company’s future financials and operations. Ratios
formed from past financial statement analysis helps in estimating future
financials, budgeting, and planning for the future operations of the company.

4. Identifying Risk and Taking Corrective Actions-

The company operates under various business, market, operations related risks.
Ratio analysis helps in understanding these risks and helps management to
prepare and take necessary actions. Leverage ratios help in performing sensitivity
analysis of various factors affecting the company’s profitability like sales, cost,
debt. Financial leverage ratios like Interest Coverage ratio and Debt Coverage
ratio tell how much the company is dependent on external capital sources and the
company’s ability to repay debt.

5. Peers Comparison-

22
 Investor, as well as the company’s management, makes a comparison with
Competitors Company to understand efficiency, profitability and market share.
Ratio analysis is helpful for companies to perform SWOT (Strengths, Weakness,
Opportunities, and Threats) analysis in the market. It also tells whether the
company is able to perform growth or not over a period from past financials and
whether the company’s financial position is improving or not.

6. Financial Solvency-

The company’s ability to pay short-term debt is determined by liquidity. Current

Ratio, Acid-test ratio tells us whether a company is able to pay its short-term
obligation within a year. The company continuously runs analysis on past
financial statements to understand and prepare for payment of short-term
obligations.

7. Decision Making-

Ratios provide important information on the operational efficiency of the

company, and the utilization of resources by the company. It helps management
to forecast and planning for future, new goals, concentrate on the different
markets, etc.

1.6 Types of Ratios

Liquidity ratios – liquidity refers to the ability of a concern to meet its current
obligations as and when they become due. Liquidity ratios measures the short term
solvency of a business and for this purpose following ratio can be computed:

a) Current ratio = current ratio is a most widely used ratio to judge short term
financial position or solvency of a firm. it can be defined as relationship
between current assets and current liabilities. current ratio of 2 : 1 is
considered as satisfactory.

Current Ratio= current assets / current liabilities

b) Liquid Ratio = it is also called as Quick ratio or Acid test ratio, measures the
ability of business to pay its short term liabilities by having assets that are
readily converted into cash. These assets are namely cash, marketable

23
securities and account receivables.

24
Liquid Ratio= current asset–inventory–prepaid expenses /current liabilities

c) Absolute liquid Ratio= This ratio is also known as super quick ratio and
establishes relationship between absolute liquid assets and liquid liabilities.
The ideal level of absolute liquid ratio is 0.5 : 1 .

Absolute liquid ratio= cash and bank balance/current liabilities

d) Cash ratio = the cash ratio is a measures of the liquidity of a firm, namely the
ratio of the total assets and cash equivalents.

Cash ratio= cash and bank balance/ current assets

Solvency Ratio

Solvency ratio - this ratio examines whether the total realizable amount from all
assets of a firm is enough to pay all of its external liability or not. In this context
this ratio shows the relationship between total assets and external liabilities of the
firm. Solvency means ability of a firm to pay its liability on due date. Solvency is
tested on the basis of the ability of the concern to pay its long-term liability at
due time. The ratios to be used for this purpose are called as ‘ratio of financial
position’ or stability ratio. The main ratio of this category are as follows;

a) Debt equity Ratio- this ratio reflects the long-term financial position of a firm
and is calculated in the form of relationship between external equities or
outsider’s funds and internal equities or shareholders fund. Debt equity ratio may
also be called as ‘ratio long term debt to shareholders funs’.

Debt Equity Ratio= long term debts/ shareholder funds Or debt/equity

b) Proprietary ratio- This ratio indicates the relationship between proprietors

fund and total assets. Greater is the proprietor funds better is the position of the
creditor. Proprietary ratio=proprietary funds or shareholders funds/Total assets

 Profitability ratio –

Profitability ratio is used to evaluate the company’s ability to generate income as

compared to its expenses and other cost associated with the generation of income

25
during a particular period. This ratio represents the final result of the company.
The main category of this ratio are

: a) Gross profit ratio-

This ratio measures the marginal profit of the company. This ratio is also used to
measure the segment revenue. A high ratio represents the greater profit margin
and it’s good for the company. Gross profit ratio = Gross Profit /Sales × 100
Gross Profit= Sales + Closing Stock – opening stock – Purchases – Direct
Expenses

b) Net profit ratio –

This ratio measures the overall profitability of company considering all direct as
well as indirect cost. A high ratio represents a positive return in the company and
better the company is. Net profit ratio = Net Profit / Sales × 100 Net Profit =
Gross Profit + Indirect Income – Indirect Expenses

c) Return on equity –

This ratio measures Profitability of equity fund invested the company. It also
measures how profitably owner’s funds have been utilized to generate
company’s revenues. A high ratio represents better the company is.

Return on equity =Profit after Tax/ Net worth x 100 Where, Net worth = Equity
share capital, and Reserve and Surplus

d)Return on capital employed-

Return on capital employed (ROCE) is a financial ratio that can be used in

assessing a company's profitability and capital efficiency. In other words, this
ratio can help to understand how well a company is generating profits from its
capital as it is put to use.

Return on capital employed (ROCE) = net profit before interest and tax / capital
employed X 100

e) Operating profit ratio - Operating profit ratio establishes a relationship

between operating Profit earned and net revenue generated from operations (net
sales). operating profit ratio is a type of profitability ratio which is expressed as a
percentage.
26
 Operating profit ratio = operating profit / net sales X 100

1.7 COURIER SERVICES INTRODUCTION

Courier services are a more specialized delivery service that businesses and
individuals turn to when they need a package or a document to reach its destination
quickly. While regular mail services can also deliver packages rapidly, they cannot
guarantee same day delivery or overnight delivery as the case may be. The term
“courier service” can refer to every form of delivery or transport service ranging from
a small, local operation to an international network servicing millions daily using a
fleet of trucks, planes, trains and ships.

Courier services have been around for a very long time. Ancient cultures had runners
or horsemen to carry messages from one place to another without the hassle of going
through the more commonly used slow channels. Another reason that couriers became
such an important fixture in the delivery sector is that they were able to provide
greater security to a parcel or letter. Technically, courier services are not supposed to
be able to lose a letter given their intricate tracking systems. Plus, you can rest assured
that the intended recipient will get the letter as they will have to sign for it at the other
end.

There are different courier services to which you can turn if so needed. In cities
couriers can take the forms of cars, bikes, motorcycles and even taxis – although the
cab system tends to be most common only in the UK. Bike couriers are the most
practical in cities as they are able to weave in and around traffic and are not
constrained to the same kind of traffic issues with which car couriers must deal.
Naturally, for longer distances, car or motorcycle couriers are a more practical and
convenient choice.

Sending a package or a letter a long distance but with the maximum amount of
security will also necessitate the hiring of a courier service – except that you will have
to turn to the big services that include overnight flights, shipping and other delivery
systems.

Courier services are currently a multi-billion-dollar industry that help the wheels of
business to turn smoothly. Without couriers in our cities we would have to rely on
regular post for the shipment of our documents and packages – something that would
be both inconvenient and a waste of time. Most courier services charge reasonable
27
rates for deliveries. Generally, rates are based on the distance something needs to
be

28
delivered – and, in the case of inter-city, international or overseas deliveries the cost is
usually based on weight and distance.

Finding a good, reliable courier service is something every company will have to do
at a certain point in their growth. Once they begin dealing with larger numbers of
clients and have to deliver products or packages on a regular basis, having a solid
courier service in their corner is essential.

Please continue reading further. In this guide we will explain how to choose a good
courier service, we provide you with a checklist of things to look for when shopping
around for a delivery service and provide you with a glossary of commonly used
terms. We have also included a couple of articles that you may find interesting.

1.8 FUNCTION OF COURIER COMPPAMY

Speed and Efficiency

To preface this point, we’re not saying postal services are slow and inefficient by any
means. When you consider the volumes of packages and letters they handle and the
speed at which they process all of the mail, it’s always a good option.

However, a big function of courier services is the speed and efficiency of which they
generally deliver shipments. So, if your business revolves around shipping
internationally and time is of the essence, then a courier service can be the more
effective option.

For example, a difference between both services is that courier services tend to
provide specialist next-day delivery. Not only that but courier services can also offer
more specific next-day delivery times and are usually a lot more specific compared to
postal alternatives which don’t offer a premium international delivery service.

You’ll usually find that postal services tend to estimate delivery by a certain date, as
opposed to a specific time. Although that’s acceptable and there’s nothing wrong with
it, it doesn’t mean it’ll necessarily work for your business. Courier services, however,
are able to provide an estimated time slot which is, in most cases, much more
convenient.

In some cases, couriers like Cross flight can even provide a time-critical UK same-day
delivery service.

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Fewer Size Restrictions

What also sets apart courier services from regular postal services is that they have
fewer weight and size restrictions when it comes to shipping goods.

When using a postal service, it’s common to see size, weight and commodity
restrictions which can stop you from potentially shipping goods to their destination.
This is something which tips the scale significantly in the favour of courier services as
opposed to postal options as you can ship goods with fewer restrictions - and do so
easily.

Real-Time Tracking

Another function of courier services and how they differ from postal services is their
ability to provide real-time tracking. That’s not to say that postal services don’t offer
tracking features, although they tend to be more generic, such as where the shipment
is located and the day it should arrive.

Courier services, however, provide you with real-time tracking so you know exactly
where your shipments are. What also makes courier services more unique is that you
have the ability to phone the courier company you work with to ask for updates as
well. At Cross flight, our dedicated customer services team proactively manages all of
your deliveries. So you can worry less about shipments and focus on core business
tasks instead.

With dedicated customer service teams on the other end of the phone, you’re a lot
likelier to receive accurate updates of your shipments’ whereabouts.

When shipping goods internationally, it’s important you still have great visibility on
where the goods you’re sending are at. The easiest way to do this is through
international tracking but again, this differs between courier and postal services.

If you select a postal service, then it’s important to know that they only offer the most
basic tracking (such as departure and arrival) when posting internationally. The only
way you can get this added feature is if you specifically choose a mail service that
offers tracking.

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On the other hand, courier services always offer international tracking. Of course,
some are better than others depending on the service you choose, but you can be sure
that there will be a form of international tracking you can utilise.

Professional Packaging

While packaging might seem like a minor issue, there’s still a clear difference
between packaging when it comes to courier services and what makes them different
from postal services. Regardless of which type of service you choose, it’s incumbent
on you to ensure your goods are packed correctly and meet the necessary
specifications.

It’s in both your and the courier’s interest to make sure your goods are packed
correctly. It means your shipments arrive at the destination safely.

Conversely, with a courier service, they can offer incomparable advice through their
customer support teams that are on hand to provide expert guidance. This can include
them assisting you with helpful tips to make sure that your shipments are sent safely
and securely.

Couriers like Cross flight can, on request, arrange for your goods to be professionally
packed prior to departure, making sure that any fragile goods arrive at their
destination in perfect condition.

A regular postal service will also refuse to send any of your goods that appear to be
unsuitably unpacked. That’s where a good courier service can make the crucial
difference, as they can provide a beneficial add-on service that others can’t.

Duties and Tax

When sending shipments abroad, there can be issues surrounding duties and tax, and
whether or not they apply to your shipment. When shipping goods through postal
services, it’s likely that they will charge the recipient for any duties or tax and
payment having to be made before a shipment is handed over to the recipient which
can prove to be disruptive.

Depending on the courier service you choose, they tend to offer something called
‘deliver duty paid (DDP)’. This makes for a much smoother delivery experience as
this sees the shipper tell a courier service like Cross flight that they will pay the duties

31
so

32
the recipient doesn’t need to which can reduce any delays whilst waiting for payment
from the recipient at destination.

In comparison, postal services will always charge your recipients any duty and tax
which may be due, regardless.

Bespoke Services

Again, this can vary between courier services, so it depends on the one you select.
When it comes to postal services, they tend to offer a one-size-fits-all approach, which
works perfectly for certain shipments but not necessarily for businesses that are reliant
on regular international shipments.

A courier service that offers bespoke services and applications is one you’re likely to
build a relationship with. With Cross flight, for example, our team of in-house
developers can work with you to create bespoke applications to streamline the
distribution of your shipments.

Plus, we can also seamlessly interface with your existing e-commerce site or order
processing system.

Our bespoke options offer you the perfect delivery solution and support you by using
the leading technologies around. With generic postal services, it’s more challenging to
build personal relationships as there’s no real partnership that can be created to gain
an in-depth understanding of your business.

With no or minimal understanding of your business and its needs, postal services
perhaps can’t provide the best possible bespoke solutions like courier services can.

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What is a Specialty Courier?

Most people understand that a courier service transports items such as documents,
packages, and other shipments. However, it’s a little more involved than that.
Specialty couriers usually offer all of the following:

 24/7/365 Service – A specialty courier can pick up or deliver shipments any day
or time, even on weekends and holidays.

 Packaging — In some cases, courier services will package items safely and
according to customers’ needs. Specialty couriers can provide and advise on
specialized packaging such as validated cold-chain containers.

 Tracking — When using a specialty courier, you can fully customize tracking
notifications and the progress of your shipment. Technology enablers such as
GPS-enabled real-time monitoring can add an extra layer of visibility and
security to any shipment.

 Inside Delivery — Parcel services like FedEx and UPS typically pickup or drop-
off packages at designated points (such as a loading dock or front desk).
Specialty couriers can arrange to make precise pickups or deliveries to a specific
individual, room, or department.

 Local Shipping — Businesses may need speedy delivery of important

documents within a city. For example, law firms often use couriers to deliver
legal papers.

 Global Shipping — When shipping across borders, couriers may need to use
multiple networks as well as deal with matters such as taxes and duties. People
and businesses may hire a courier to simplify such shipments to avoid having to
handle lots of paperwork themselves.

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Are Companies Such as UPS and FedEx Couriers?

Like couriers, UPS, FedEx, and other parcel carriers are private businesses, which
function as alternatives to government-run mail services. What differentiates these
companies from couriers is that their services are typically more restricted, and less
customizable. For example:

 They may impose size restrictions or may not offer customized packaging
options.

 They have strict cut-off times when they are able to receive packages for next-
day delivery.

 They have wide delivery windows that often lack specific and committed
delivery times.

 They will only deliver or pick up from designated points such as a front desk
or loading dock.

 They have restrictions on carrying certain commodities such as live animals,

or human biological products like organs or tissue for transplant.

What is Unique About Specialty Couriers?

To understand what differentiates specialty couriers from other parcel carriers and
delivery services, let’s examine the distinctive characteristics of this type of business:

 Customized services. While parcel carriers and delivery services are used to
send shipments on a per-item basis, couriers typically work with businesses in
a more personalized way. This helps companies save money in the long run.

 Speed. Specialty couriers are able to deliver items faster than other services.
While delivery services may offer overnight service, a specialty courier can
often deliver something within hours. When you need something the fastest
possible way, a courier is the best choice.

 Security. Specialty couriers provide the highest level of security and tracking
for packages. They use industry-specific standards for medical, legal,
transportation, and other industries.

35
  Special handling. Specialty couriers are trained to handle specific commodities
that require special handling such as dangerous goods or hazardous materials.
They not only know how to properly handle such products to protect the safety
and integrity of the shipment but also any regulatory requirements or customs
paperwork to safely transport such shipments.

What Kind of Businesses Typically Use Couriers?

Anyone might have occasion to use a courier, though certain industries are more
likely to require their services regularly. These include:

 Medical — The medical industry deals with urgent needs and often requires the
safe and rapid transport of items such as vaccines, drugs, clinical trials, nuclear
medicine, laboratory tests, and medical equipment. Hospitals, clinics, and
pharmaceutical companies often use couriers. Couriers may transport extremely
urgent materials such as blood or organs for transplants.

 Financial/Legal/Government — These industries and agencies often need to

quickly and securely deliver legal forms such as subpoenas, contracts, and other
documents. Whether documents are delivered locally or across the country,
couriers ensure fast and safe transport.

 Aviation/Aerospace – AOGs results in costly groundings for aircraft operators.

Specialty couriers can help transport time-critical aviation parts quickly and
securely to help get grounded planes back in the air.

 Critical Infrastructure Service Providers – Companies providing critical

infrastructure service such as maintenance and repair for cell phone towers
and/or business cloud computing servers often have 2- or 4-hour SLAs they need
to meet. Specialty couriers can bring service parts directly to the job site to meet
with the service technician to meet any SLA mandated repair windows.

 Other Industries — There are many other industries that may require courier
services. Examples include companies shipping high-value items and one-of-a-
kind prototypes.

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What are Some Specialized Services Couriers Offer?

Each courier is different, but the following are some standard services they may offer:

 Expedited ground shipping — This refers to faster-than-normal ground

shipping. When international shipping is involved, this typically means
seamless border crossings.

 Air charter services — If you need something shipped by air, a charter

service provides a courier and chartered air delivery. This is often the fastest
way to securely send an item as it’s in the hands of a reliable courier during
each phase of transport.

 Dedicated hand carry — This is an on-board courier service in which a

dedicated courier carries a shipment onto a commercial airline and personally
delivers it.

 Next Flight Out (NFO) Shipping — When a courier arranges shipment on

the next available flight, which might be a commercial or private air carrier.
Using logistics, the courier is able to calculate the fastest and most direct
itinerary.

When Should You Use a Courier?

Here are some instances when a courier might be a better choice than the mail or
delivery service:

 You have something time-sensitive. Couriers specialize in urgent

requests. They are available 24/7 and can handle last-minute and urgent
needs.

 You have something that’s difficult to package. Couriers have fewer

size restrictions and are able to package items for personalized needs.

 You want real-time tracking. The USPS, UPS, and other delivery services
provide limited tracking. With a courier, you can get real-time tracking so
you know where your shipment is at every stage of the journey.

 You’re shipping overseas and want to simplify paperwork, taxes, and duties.

37
 You have ongoing, specialized needs. With a courier, you can develop a
personalized relationship and find solutions that meet your long-term
needs.

38
How Do You Choose a Courier?

When shopping for a courier, you want to find someone that is experienced and
reliable as well as fast. The fastest courier at any given time depends on your needs,
budget, and industry. Here are a few criteria to look at:

 How long has the company been in business?

 Do they offer door-to-door transportation?

 Do they work with your industry? Deliver to the destinations you require?

 Are they flexible about packaging and size requirements?

 Do they offer insurance and proof of delivery?

 Are they able to work with your specific requirements for the delivery time?

Seeking the fastest and most reliable specialty courier? With MNX, you’ll have
peace of mind knowing that a team of logistics professionals are behind you every
step of the process, protecting your shipments while ensuring they’re picked up on
time, delivered quickly, and within specifications. Contact MNX today to get in
touch with one of our service professionals.

1.9 INTRODUCTION OF COMPANY

39
 BLUE DART EXPRESS LTD.

Blue Dart Express Ltd., South Asia's premier express air, integrated transportation &
distribution company, offers secure and reliable delivery of consignments to over
55,400+ locations in India. Blue Dart is a provider of choice for its stakeholders due
to its customer centric approach and aims to further strengthen this partnership. As
part of Deutsche Post DHL Group’s DHL eCommerce Solutions division, Blue Dart
accesses the largest and most comprehensive express and logistics network
worldwide, covering over 220 countries and territories, and offers an entire spectrum
of distribution services including air express, freight forwarding, supply chain
solutions, customs clearance etc.

The Blue Dart team drives market leadership through its motivated people, dedicated
air and ground capacity, cutting-edge technology, wide range of innovative, vertical
specific products and value-added services to deliver unmatched standards of service
quality to its customers. Blue Dart's market leadership is further validated by its
position as the nation’s most innovative and awarded express logistics company for
exhibiting reliability, superior brand experience and sustainability which include
recognition as one of ‘India's Best Companies to Work For’ by The Great Place to
Work® Institute, India, ranked amongst ‘Best Multinational Workplaces in Asia’ by
The Great Place to Work® Institute, Asia, voted a ‘Superbrand’ and ‘Reader’s Digest
Most Trusted Brand’, listed as one of Fortune 500’s ‘India's Largest Corporations’
and Forbes ‘India's Super 50 Companies’ to name a few. Blue Dart’s Diversity and
Inclusion initiatives have also led to it being recognized as one of India’s ‘Best
Workplaces for Women’ in 2021 and ‘Best Organizations for Women’ in 2022 by the
Economic Times.

40
Blue Dart fulfils its social responsibility of climate protection (GoGreen), disaster
management (GoHelp) and education (GoTeach) through its GoPrograms.

Our vision is to establish continuing excellence in delivery capabilities focused on the

individual customer. In pursuit of sustainable leadership in quality services, we have
evolved an infrastructure unique in the country today:

 State-of-the-art Technology, indigenously developed, for Track and Trace,

MIS, ERP, Customer Service, Space Control and Reservations.
 Blue Dart Aviation, dedicated capacity to support our time-definite morning
deliveries through night freighter flight operations.
 A countrywide Surface network to complement our air services.
 Warehouses at 85 locations across the country as well as bonded warehouses
at the 7 major metros of Ahmedabad, Bangalore, Chennai, Delhi, Mumbai,
Kolkata and Hyderabad.
 ISO 9001:2015 countrywide certification by Lloyd's Register Quality
Assurance for our entire operations, products and services.
 E-commerce B2B and B2C initiatives including partnering with some of the
prime portals in the country.
 Blue Dart’s commitment towards the betterment of the environment and
communities has been unwavering since its inception in 1983. Over the years,
the company has been consistently reporting on its corporate responsibility
performance, and each year, expanding its scope to include a higher number of
beneficiaries that can be impacted. As part of its Corporate Social
Responsibility, Blue Dart runs various programs for the upliftment of
disadvantaged, vulnerable, underprivileged and marginalized sections of
society. All programs are classified under the 3 pillars of Living
Responsibility – GoTeach, GoGreen and GoHelp. These include students and
young adults from poor financial backgrounds, hearing impaired, women,
senior citizens, etc. in areas of education, preventive healthcare, women
empowerment, sanitation, waste management etc.
 Blue Dart has partnered with several non-profit organizations of high repute in
various capacities to run programs that are aligned under the 3 pillars. Blue
Dart works closely with each of its NGO partners to identify the stakeholders
and
41
 beneficiaries of each intervention. Blue Dart also extends assistance to various
NGOs by providing free of cost logistics support to them. The company
reaches out to help in the best possible way to support NGOs that work for the
elderly, less privileged children, disabled people, those providing relief
material in disaster hit areas and many more noteworthy causes.
 As part of DPDHL Group, Blue Dart also celebrates Global Volunteer Day
(GVD), an opportunity to employees, partners, customers and various other
stakeholders to become responsible citizens and conducting initiatives that
benefit the environment, communities and society. In 2017, Global Volunteer
Day (GVD) was celebrated from 18th September to 1st October, Great
volunteering efforts were witnessed from over 4,209 XBU employees who
spent over 10,501 employee hours and came together to participate in various
activities under the GoGreen, GoHelp and GoTeach pillars. GVD is an
opportunity for employees, partners, customers and various other stakeholders
to become responsible citizens by helping those in need. Volunteers
participated in various initiatives which included blood donation drives,
planting saplings, teaching children from marginalized sections of society,
cleaning their schools and volunteering time with senior citizens and
underprivileged children in many old age homes and orphanages.

42
Sharad Upasani
Chairman (Independent Director)

Sharad Upasani has been appointed as the Chairman of the Board of Directors of the
Company with effect from December 21, 2007.

Sharad has done Masters in Commerce and LLB from Mumbai University and also
holds MBA degree from USA. He has varied experience in Administration and had
the opportunity to work both in the State and Central Government and Public Sector
Corporations. He has worked as Secretary of Industry Department, Maharashtra State
and as Managing Director of Maharashtra State Finance Corporation, Chairman of
Maharashtra State Textile Corporation and Vice - Chairman of Maharashtra State
Road Transport Corporation. He retired as Chief Secretary, Government of
Maharashtra.

At the Central level, he has worked in the Finance Ministry, Industry Ministry and
Information & Broadcasting Ministry. He was also Chairman of the Company Law
Board and Chairman of the Bureau of Costs and Prices, New Delhi. He was also
Chairman of Film Certification Board, Mumbai and Vice-Chancellor of Agricultural
University, Akola, Maharashtra.

Sharad was also on deputation to International Monetary Fund, Washington from

1974 to 1978. He is a member of Bar Council of Maharashtra and Goa. After
retirement from Government Service as Chief Secretary, Government of
Maharashtra, He is now giving Consultancy on Corporate Law matters and acts as
Arbitrator in corporate disputes.

43
Sharad is Vice Chairman and Member of Council of Management of M.
Visvesvaraya Industrial Research & Development Centre, World Trade Centre,
Mumbai

Balfour Manuel
Managing Director

Balfour Manuel has assumed the role of Managing Director w.e.f. May 16, 2019.

Balfour Manuel, a Blue Dart veteran of over 35 years, has been instrumental in the
success of Blue Dart from the very beginning of the company’s inception. A longtime
employee of the company, Mr. Balfour Manuel prior to his appointment as Managing
Director was Chief Executive Officer of the Company w.e.f January 23, 2019. He was
also Senior Vice President in charge of Blue Dart’s business-to-business customers, a
cornerstone of Blue Dart’s customer base and had also held a key general
management position where he was responsible for the growth and development of
Blue Dart’s business in the Western region in India.

Balfour holds a Master’s in Business Management in Marketing from University of

Mumbai

44
Tulsi Nowlakha Mirchandaney

Director

Tulsi has been actively associated with the airline and express industry in India for
over 45 years and with Blue Dart for 22 years, having been involved with the launch
of Blue Dart Aviation prior to its inception in 1996. Tulsi was responsible for setting
up the air cargo products, interline arrangements and major contracts including
Postmail and initiating charter operations. Tulsi spearheaded First Choice, the Group's
continuous improvement programme and was the first Senior Advisor for First Choice
in Blue Dart. In Blue Dart Aviation, she has been instrumental in bringing about
policy changes in civil aviation to acknowledge the contribution of air express and
support the distinctive requirements of the cargo airline industry in the country.

Tulsi has an MBA degree in International Aviation from Concordia University,

Montreal and has been felicitated by the Ministry of Civil Aviation for her
contribution to Civil Aviation in the country.

45
Air Marshal M. McMahon (Retd)
Independent Director

Air Marshal M. McMahon (Retd.) has wide experience in the Aviation Industry. He
was commissioned as a fighter pilot and served in the IAF for 42 years. On
graduating, he stood first in Flying. He underwent the T - 33 / F- 86 Advanced
Gunnery Course in the USA and was awarded certificates for standing first in Low
Level Strafe and Low Angle Bombing. He was an A2 Qualified Flying Instructor and
was winner of the Chief's of Air Staff trophy for standing first in flying during the
QFI course. His important staff appointments were Director, Air Staff Requirements,
Asst. Chief of Air Staff (Operations), Inspector General of the IAF and Vice Chief of
Air Staff. He is a recipient of the Param Vishist Seva Medal, Ati Vishist Seva Medal
and Vishist Seva Medal.

R. S. Subramanian
Director

46
R S Subramanian is currently the SVP & Managing Director, DHL Express India, a
member of the DHL Express Asia Pacific Management Board and a Director on the
Board of Blue Dart Express India Ltd.

With over 30 years of experience in Product-led as well as Service Industry,

Subramanian has extensive knowledge across areas of business strategy, Marketing,
Team development and Customer Management.

He joined DHL Express India as the Head of Sales, subsequently moving up to the
position of Vice President for South Asia Cluster (RoSA) wherein he was managing
DHL Express operations in Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives and
Bhutan. He was instrumental in restructuring and developing DHL operations in these
markets. Subramanian assumed the role of Managing Director, DHL Express India in
2010.

India business grew manifold to a leadership position in the last decade with
investments in best in class infrastructure, state of the art technology and strong
people processes.

Under his leadership, DHL has won many accolades and is today recognized and
respected as a best practices organization. DHL Express has consistently featured in
the India’s Great Places to Work list by GPTW since 2013. DHL Express ranked No 2
globally, and has been in the Top 5 Great Places to Work for the past three years. The
company was named as a Top Employer by the Top Employer Institute - six times in
a row.

Prior to DHL, Subramanian spent 14 years with Hindustan Unilever Ltd in a variety
of Sales, Brand Management and Export Management roles.

Subramanian is a Graduate in Industrial Engineering and a Masters in Management

from IIM – Bangalore. He is Gold Certified in First Choice which is Deutsche Post
DHL’s internal quality program based on the Six-Sigma DMAIC methodology.

Subramanian is Member of the Management Committee of Express Industry Council

of India (EICI) and Indo-German Chamber of Commerce (IGCC). He is also a
member

47
on the Governing body of Logistics Sector Skill Council (LSC) under Ministry of
Skill Development and promoted by CII.

Kavita Nair

Independent Director

An award winning and dynamic leader, Kavita Nair has proven success in managing a
wide range of leadership roles. She has spent majority of her working years with
Vodafone Idea . Her career spanned 22 years here where she held leadership roles in
diverse functions across both consumer and enterprise domains. In her last
assignment, Kavita was the Chief Digital Transformation and Brand Officer of
Vodafone Idea Limited, India’s leading telecom service provider. As a member of the
National Leadership Team, Kavita led Digital Transformation across all functions for
the organization and drove the strategy, course and communication of Vi – the newest
brand in Indian telecom industry. She was the driving force behind Vi – a brand that
emerged with the integration of two of the iconic brands – Vodafone and Idea. She
has a strong track record of building some of the most admired telecom brands of the
country and Vodafone’s iconic Zoozoos were born during her tenure as the Brand
Head at Vodafone India. Her areas of expertise include marketing, digital, retail,
pricing, product management, channel and customer operations.

Her talent and success has been acknowledged at several prestigious forums -
Economic Times included her in its 25 Rising Women Leaders of India Inc. in 2015;
Business Today voted her as one of the Hottest Young Executives to watch out for in
2011 and Brand Equity named her amongst the 8 Marketing Premier League Icons in
2009.

48
Kavita is an alumnus of the Faculty of Management Studies (FMS), M S University,
Baroda where she did her MBA in Marketing and has also completed Senior
Leadership Programs from London Business School and IIM Ahmedabad.

Florian Ulrich Bumberger

Director

Florian Ulrich Bumberger, is currently the divisional CHRO, Chief of Staff &
Programs of DHL eCommerce Solutions and member of the DPDHL Group HR
Board. Furthermore, he is responsible for divisional strategic initiatives & programs,
M&A and Compliance. Florian holds a Diploma in Business Administration and is a
Certified Institutional Investment Analyst (CIIA).

Florian started his career as an Investor Relations professional with numerous awards
like Institutional Investor & Thomson Extel IR Survey. Thereafter, he transitioned
into Strategic, business development and Financial positions. He led numerous
strategic programs from the greenfield market entries, cost optimization programs,
working capital management initiatives in a €16bn turnover and 200k employees
division to several M&A transactions.

Florian has also had a leading role in the carve-out and creation of a new business
division, within DPDHL Group, including necessary ‘change management’ and
‘communication initiatives’.

49
Sebastian Paeßens

Director

Sebastian Paeßens, is the CFO of DHL eCommerce Solutions, a business division of

Germany based Deutsche Post DHL Group. He started his professional career as the
Management Consultant for Finance and Controlling related projects.

Sebastian joined Deutsche Post DHL Group in 2008 and held various management
positions in the DHL Express division, the German Post and Parcel division and in the
Corporate Controlling department. In October 2017, he assumed the role of CFO
DHL eCommerce. In October 2018, Sebastian was appointed CFO DHL eCommerce
and DHL Parcel Europe, before moving on to his current role in January 2019. He is a
member of Deutsche Post DHL Group’s Finance Board.

Sebastian holds a Master of Science degree in Business Administration and

Mechanical Engineering

50
Prakash Apte

Independent Director

Mr. Prakash Apte, has a B.E. (Mechanical) degree from the University of Pune and
holds Diploma in the Business Management from The University of Mumbai. He has
attended various executive & leadership development programs at Harvard Business
School, INSEAD and IMD.

Mr. Apte’s professional career spans over 40 years, most of which has been with
global multinationals viz; Ciba Geigy, Novartis and Syngenta in various positions
related to Specialty Chemicals, Pharma & Agri business industries respectively. He
was the Country Head & Managing Director of Syngenta India for over a decade from
2000 to 2011 & thereafter its Non-Executive Chairman till September 2021.

Mr. Apte takes keen interest in developmental initiatives. He was instrumental in

setting up Syngenta Foundation India focusing on providing resources to poor farmers
& rural entrepreneurship in 2005. In 2016, he catalyzed setting up of the Indo Swiss
Centre of Excellence which aims to provide world-class training in advanced
vocational skills. Mr. Apte has served on the Boards of both these not-for-profit
entities till mid 2021.

Presently, Mr. Apte is Chairman of the Kotak Mahindra Bank Limited. He also serves
on the Boards of Kotak Mahindra Life Insurance Company Limited, Fine Organic
Industries Limited and GMM Pfaudler Ltd.

51
Padmini Khare Kaicker
Independent Director

Ms. Padmini Khare Kaicker, has been in the accountancy profession since 1990 after
completing her BSc in Mathematics. Apart from being a qualified Chartered
Accountant from ICAI, she is also a Certified Public Accountant (USA) and a
Diploma in Business Finance from Institute of Chartered Financial Analysts of India.
Ms. Padmini is well recognised in the profession and has over 24 years of wide and
varied experience in serving large and mid-sized clients in a variety of businesses-
Manufacturing, Oil and Gas, Banking and Financial services, Insurance, IT,
Hospitality, Real estate and Retail sectors. Ms. Padmini is the Managing Partner of B.
K. Khare & Co. (the Firm)- one of the leading and reputed Indian Accounting Firms
in the profession for more than six decades. Ms. Padmini’s experience as an
accountant for a cross section of reputed companies enables her to have a wholistic
view of an organisation and render appropriate advice not only on Risk and
Governance but also on business/organisational matters.

Ms. Padmini has been on Boards, as an Independent Director, in reputed companies

such as IndusInd Bank, Gabriel India, etc. Currently, she is an Independent Director
on the Boards of Tata Chemicals Ltd., Tata Cleantech Capital Ltd., Rallis India Ltd.,
Kotak Mahindra Investment Ltd., J.B. Chemicals and Pharmaceuticals Ltd. and Bosch
Ltd.

52
CHAPTER -2 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. So, the
research methodology not only talks about the research methods but also consider the
logic behind the method used in context of the research study

2.1 OBJECTIVES OF THE STUDY

 To know the financial position of BLUE DART express ltd.

 To bring out the results of financial strength and weakness of company

through Ratio analysis.

 To know the correct picture of financial operation of the company in terms of

liquidity and solvency.

2.2 SCOPE OF THE STUDY

 The scope of the study is limited to collecting financial data published in the
annual reports of the company every year.

 The ratio analysis is done to suggest the possible solutions. The study is
carried out for 5 years data of blue dart (2022 to 2023).

 This study is confined to blue dart only.

2.3 Research design

Descriptive research used in this study because it will ensure the minimization of bias
and maximization of reliability of data collected. The researcher had to use fact and
information already available through financial statements of earlier years and analyse
these to make critical evaluation of available material. Hence by making the type of
research conducted to be both Descriptive and Analytical in nature.

2.4 Data collection

Secondary data Secondary data implies second hand information which is already
collected and recorded by any person other than a user for a purpose, not relating to
the current research problem. It is the readily available form of data collected from
various

53
sources like censuses, government publication, internal records of the organizations,
reports books, journal articles, websites and so on.

2.5 Sources of data

The required data for the study are basically secondary in nature and the data are
collected from the audited reports of the company. The sources of data are from the
annual reports of the company from the year 2018 to 2022.

2.6 Methods of data analysis

The data collected were classified and tabulated for analysis. The analytical tool used
in this study. The study employs the following analytical tools:

 Graph

 Ratio analysis

2.7 LIMITATION OF THE STUDY

The study is based on secondary data, obtained from the publish report and as its
finding depends entirely on the accuracy of such data.

54
Chapter-3 Literature Review
REVIEW OF LITRATURE
1. Verma (1989) – study examined the working capital management in Tata iron and
steel company ltd, Indian iron and steel company and steel authority of India ltd.
during the period of 1978-1979 to 1985-1986 there are using various financial and
statistical techniques finally concluded the three firm use of bank borrowings to
finance the working capital requirement.
2. Raok.v and N.chintarao (1991)-the study focuses few public enterprises belongs
to manufacturing sector in Karnataka.in that evaluating the working capital
efficiency of business enterprises. The study revalued that investment upon
working capital is highest to compare the total investment as well as working
capital planning and control was found to be disorderly and effectively hence.The
urgent need to full focus on working capital management.

3. Majumdar (1992) - in this research analyzed the pattern of financing the

corporate working capital in India. There are 20 companies analyzed for that 10
company’s private sector and another 10 companies are public sector. For the
period of 1981 to 1990.this study used various financial and statistical techniques.
Finally concluded that share of working capital finance is from borrowings and
effect of cost on the selection of sources of working capital is not at all significant
finally the result of shows that statistically there is a significant inverse
relationship between liquidity and profitability of companies

4. Refuse,Emaynard (1996)-the study proposed enhancing working capital by

getting creditors was an effective strategy. The survey depend upon private
business and small business trade association stated that on an average the debtors
account were paid more than 50 days beyond the agreed due date .the survey also
revealed that the responsibility of such control rests with the finance managers.
5. Vijaykumar and A. Venkatachalam (1996) – the study focuses Tamilnadu
Sugar Corporation for the period of 1985-86 to 1993-94. That indicate the
corporation has maintain moderate level of working capital.in that long term funds
has been used for meeting short term liability and excess liability. This period of
study to as affected the profitability.

55
6. Beaumont and bageman (1997)-this study said in this researcher in a company
give a good financial decisions the working capital is important component. The
optimal working capital management through reached a trade of between
profitability and liquidity .the study aims to provide empirical evidence about the
effect of working capital management on the profitability of mall scale industries.
7. Kazmi Azar and mohd.amirkhan(1999)-the study define working capital
analysissome used various tools like cash, management of account receivables and
management of inventory. The study only for short term period there may
comparison based on the international financial sector.so the study get some
importance of working capital enjoy full of profit in competitive industry.

8. Shin and soenen (1998) – the researcher define for creating value for the
shareholders there may be important for effective working capital management
.the study directly impact on liquidity and profitability. Mainly corporate
profitability and risk adjusted stock return was examined using correlation and
regression analysis.by industrial and capital intensity this study finds the
relationship between the length of net trading cycle.

9. Bansal (2001)-researcher study the working capital management in Himachal

Pradesh agro industries for the period of 1985-86 to 1994-95 with the help of
various financial tools that are define working capital ,cash inventory, receivable
and production capacity have not been managed properly by the company under
study.

10. Singh P.K (2004)-the study attempted to significance of management of working

capital through the various ratios and operating cycle having analyzed 1992-2002
for 7 years. He used various tools and techniques and concluded. Liquidity
position of company was good and states the relationship between percentage of
current asset followed by loan and advances, inventories and cash and bank
balances. The study brought out the need of efficient management of debtors. The
percentage of which was highest.

11. Padachi Kesseven (2006)- This study to maintain a balance between liquidity and
profitability. A firm required to achieving some desired tradeoff between liquidity
and profitability in order to maximize the value of the firm.

56
12. Lazaridis and tryfonidis (2006) - researcher investigated the relationship
between working capital management and corporate profitability of listed
companies in Athens stock exchange. There are various statistical parameters used
by the researcher i.e. There are used each different components (account
receivables, account payable, inventory to an optimum level.
13. Raheman Abdul and Mohamed nasr (2007)-in that study he observed that
working capital management and its effect on liquidity as well as profitability of
firm .he selected 94 Pakistani firm on Karachi stock exchange for 6 years period
i.e. 1999-2004.he used various tool and techniques of persons correlation and
regression analysis. Finally find the negative and positive relationship in working
capital management in a firm

14. Beydokhtiabbastaleb (2007)-author said that small scale industries plays the vital
role for economic growth and contributes substantially to India’s total industrial
production export and employment generation .as a result 36 million SSI units in
the country produce over 800 items and provide employment to about million
people. The SSI units mostly organized on proprietary or partnership basis and are
usually very small in size so that this unit have weak capital base. They are poorly
placed in the matter of capital formation. The main fact is the success or failure of
the industry or enterprises to a large extent depend upon the effectiveness with
financial resources of the firms applied and managed there is positive relationship
between firms growth and working capital.

15. Paul (2007) – this is comprehensive study of working capital management in

motor industries company limited. During the period of 2001 to 2005 for 5year
data collected. To analysis purpose uses various kinds of ratio analysis. Finally
shows that working capital of company under study has not been managed
efficiently and effectively.
16. Shriniwas K.T (2009) –the researcher undertook to study working capital
management with the help of ratio analysis at karnatka power corporation
limited.in this traditional and alternative working capital measures and return on
investment, specifically in industrial firms listed on the johansberg stock exchange
(JSE) was evaluated. It is concluded that financial position of company if financial
sound company an effort to increase its production and net profit .it also
concluded

57
 company’s earnings were increasing every year but company’s fund were not
properly utilized.

17. Dong (2010)-the researcher said that firms profitability and liquidity are affected
by working capital management in that analysis the data selected for the year
2006- 2008 for Vietnam country these company listed in stock market his research
found that relationship among various variables (profitability, conversion cycle
and its related elements) are strongly negative .this noted that decrease in the
profitability occur due to increase in the cash conversion cycle means the number
of days account receivables and inventories are diminished then the profitability
will increase number of days of account receivables and inventories.

18. Chawla,p. ,harkawat, s. nandkhairnar, I. (2010) – researcher finds the

relationship between working capital management and liquidity of companies with
profitability of companies. There are three companies of petrochemical industry in
India. For a period of 2004-2009 were data investigated the study use (CCC) cash
conversion cycle, inventory turnover, receivable collection period, creditor’s
settlement period and current ratio

19. Eljelly (2010) –to effective liquidity management involves proper planning and
controlling current asset and current liability. The relationship between
profitability was examine as measuring the current ratio and cash conversion cycle
of joint stock companies in Saudi Arabia.in this study found cash conversion cycle
importance as a measure of liquidity than the current ratio that affect the
profitability to analyze using correlation and regression analysis.so it was clear
that there was a negative relationship between profitability and liquidity indicator
such as current ratio and cash gap in the Saudi sample examined

20. Bigger, Gill and mathur (2010), –there are analyzed the relationship between the
working capital management and profitability of 88 American firms listed on new
york stock exchange. The data was analyzed Pearson bivariate, correlation
analysis and weighted least square regression techniques. They found a
statistically information of cash conversion cycle and profitability. There are uses
of ratio analysis method to measured gross operating profit.
21. Step Melita (2010) - the researcher define empirically investigate the effect of
working capital management .which may be essential to managers and major

58
 stakeholders, investors, creditors, and financial analyst especially after the recent
global financial crisis.

22. Mathuva (2010) – in this study examines that influence of working capital
management on corporate profitability. He examines the more profitable firms
take the shortest time to collect cash form customers. There are 30 firms listed on
Nairobi stock exchange for the period of 1993-2008 was used with the help of
regression model .finally the study established that there exists a highly significant
positive significant positive relationship between the average payment period and
profitability.

23. Nor ediazharbintimohammad (2010)-this paper attempt to bridge the gap about
the working capital management and its effect for the performance of Malaysian
listed companies form market valuation and profitability. There are 172 listed
company should be randomly selected to analysis purpose used various tools and
techniques. Finally the strategic and operational thinking in order to operate
effectively and efficiently.

24. Chatterjee Saswata (2010)-this study focused on the importance for fixed and
current assets in the running of any business or organization .there are two kinds
of activity measured for the business i.e. profitability and liquidity .there have
been a phenomenon observed in the business. That most of companies increase the
margin for the profits and losses because this act shrinks the size of working
capital relatives to sales.

25. Adina elenadanuletiu (2010)-this study is mainly focus in alba country to

analyze the efficiency of working capital management company or industry and
firms as well as study the relationship between efficiency of working capital
management and profitability.

26. Sharma Ashok and kumar (2011) in this study including effect of working
capital on profitability of Indian firms. The researcher finding depart from the
various international markets. The result shows that working capital management
and profitability in positively corelated in Indian companies .the research shows
the inventory of no. of day and no. of days account. Payment is negatively
whereas no. of days accounts receivable and cash conversion period a positive
relationship with corporate profitability

59
27. Agrawal Anusha (2011) - the working capital management totally worked with
the current asset and current liability so that the approach of liquidity management
has prominent technique to proper planning and controlling asset and liability.in
the working capital statement includes all the items shown on a company’s
balance sheet as a short term current asset while net working capital excludes
current liability. This paper measures profitability, liquidity, and risk trade off of
automobile industry .working capital refers to the industrial investment in the
short term assets.

28. Mohammad morshedurrehman (2011) – the researcher examine the textile

industry is important in Bangladesh. But the profitability of industry is not
satisfactory, so that to analysis the profitability and working capital position of
textile industry. The various parameters also used for measurement i.e. co-relation,
regression, matrix.so finally find that working capital management has a positive
impact on profitability

29. Talmina Sayeda (2011)- relationship between This study investigate working
capital management & profitability of manufacturing corporations researcher
increasing liquidity & various working capital components this paper shows the
significance level of relation differ firm industry to industry.
30. Todkari G.V (2012) - the researcher focused on the co-operative sugar industries
for development in rural areas .which may be useful for employment in growing
industry and business. The researcher suggested the various developmental
schemes for sugar industry.

31. Barot Haresh (2012) -This study analyze CNX pharmaceutical companies listed
on national stock Exchange of India provides empirical evidence about the effect
of working capital management and profitability performance. They used the
finance reports; data for a period of 2005-06 to 2009-10 was collected. The SPSS
software package was used to investigate & collected data there also used
regression analysis shows that account receivables & account payable explaining
profitability. He concluded that working capital should be managed in more
efficient ways to increase firm’s profitability

32. Joshi,lalitkumar and ghosh,sudipta (2012) – paper analyzing the working

capital performance of cipla limited. For the year 2004-05 to 2008-09.collected
some primary data and secondary data for study using annual report of the

60
company for

61
 the 5 years period. Financial ratio analysis statistical and econometric techniques
were used to study .the selected ratio also showed satisfactory performance during
the study period. There was also significant negative relationship between
liquidity and profitability which indicate excess liquidity and profitability of
companies.
33. Abbasalipouraghajan,milademamgholipourarch (2012) –the researcher
examines the impact of working capital management on profitability and market
evaluation of Tehran stock exchange companies those are listed to study purpose
.data was collected 400 years companies for the year 2006-2010.this study use
variables of return on asset ratio and return on invested capital ratio to measure the
profitability of company. Finally the result shows that management can increase
the profitability of company through reducing as on cycle and total debt to total
asset ratio.
34. Almazari (2013) – study examines the relationship between working capital
management and firm’s profitability in Saudi cement manufacturing companies.
There are 8 manufacturing cement companies included those who are listed in
Saudi stock exchange for the 5 years. Data has been collected to 2008-2012. In
that analyzing regression analysis and Pearson bivariate correlation were used.in
that study how to increase the firms profitability. When debt financing increased,
profitability declined linear regression tests confirmed a high degree of association
between the working capital management and profitability.

35. Khan Gul (2013) - in this study investigates what are the effects of working
capital management in Pakistan’s small medium enterprises (SME). The duration
for the study 20062012.there are using various secondary data tools for analyzing
such as tax offices. Sources used for calculating the profitability means return on
assets (ROA) no. of accounting receivables, cash conversion cycle, debt ratio.
Regression analysis was used to determine the relationship between working
capital management and performance of SME in Pakistan.
36. Omesa,maniagi,musiega and makori (2013) – study analyzed the relationship
between corporate performance of manufacturing firms and working capital listed
on the Nairobi securities exchange. There is study for 20 companies and the data
used for 2007-2011 was selected .for analysis principle components analysis
(PCA) is used due to its simplicity and it’s capability of extracting relevant

62
information

63
 from confusing data sets. There are various measurements used i.e. (CCC) cash
conversion cycle, (ROE) return on equity, net working capital turnover ratio.

37. Mehrotra Shweta (April 2013)-in that study researcher define every organization
whether public, private or profit oriented or not profit oriented size of business
needs to adequate amount of working capital. A company needs to sufficient
finance to carry out purchase of raw material, payment day to day operational
expenses. Funds to meet these expenses are collectively known to the working
capital .this paper examines 5 FMCG sectors for working capital with the help of
ratio analysis of financial statement analysis for examine the degree of efficiency
of working capital has been adopted.

38. Makori Danial (2013) –researcher defined working capital management plays
important role in profitability of firms. The optimum level of working capital
making tradeoff between firms profit and liquidity. Data were collected in national
securities exchange for 5 manufacturing and construction firms 2003-2012 in
Kenya. Various using financial tool and techniques used for statistical
presentation. Finally concluded the management of firms creates value for
shareholder by reducing no.of days account receivables.

39. K madhavi (2014)-the researcherdefine the role of working capital management

in profitability as well as liquidity power of firm .the researcher get comparative
analysis of two paper mill which is located in Andhra Pradesh to examine and
evaluate its current financial position ,solvency, liquidity, efficiency and
profitability by adopting ratio analysis for the year 2002 to2011 financial year.
Finally concluded study the attention of the management to induce effective
utilization of cash balances and quick ratio may be liquidity position.
40. Gayathri J (2015)- this study getting overall review about working capital
management. This case study depending textile industry to analyses better
understanding of methodology used, limitations of various available estimation
procedures and database. This review empirical study explores the avenue for
future and present research effort related to the subject matter. There is various
research studies different aspect use for financial performance of textile industry.

64
CHAPTER-4

DATA ANALYSIS, INTERPRETATION AND PRESENTATION

Data analysis is a process of inspecting, cleansing, transforming, and modelling data

with the goal of discovering useful information, informing conclusions, and
supporting decision-making. Data analysis has multiple facets and approaches,
encompassing diverse techniques under a variety of names, and is used in different
business, science, and social science domains. In today’s business world, data analysis
plays a role in making decisions more scientific and helping businesses operate more
effectively. Although many groups, organizations, and experts have different ways to
approach data analysis, most of them can be distilled into a one-size-fits-all definition.
Data analysis is the process of cleaning, changing, and processing raw data, and
extracting actionable, relevant information that helps businesses make informed
decisions. The procedure helps reduce the risks inherent in decision making by
providing useful insights and statistics, often presented in charts, images, tables, and
graphs.

Blue dart expresses limited had been selected for the study. Secondary data is
gathered from the website of blue dart company. Required data had been compiled
from the annual report of the company from last 5 years .. Simple random sampling
had been used for selecting the sample.

In this present study analysis had been done using ratio analysis. Liquidity ratio, ,
profitability ratio had been examined for the study. Liquidity ratio includes current
ratio, quick ratio, and super quick ratio. Solvency ratio includes debt equity
ratio,Profitability ratio includes net profit ratio, return on investment and return on
shareholders’ fund.

65
4.1 Liquidity ratio

Liquidity is a very critical part of a business. Liquidity is required for a business to

meet its short term obligations. Liquidity ratios are a measure of the ability of a
company to pay off its short-term liabilities.

Liquidity ratios determine how quickly a company can convert the assets and use
them for meeting the dues that arise. The higher the ratio, the easier is the ability to
clear the debts and avoid defaulting on payments.

This is a very important criterion that creditors check before offering short term loans
to the business. An organisation which is unable to clear dues results in creating
impact on the creditworthiness and also affects credit rating of the company.

4.1.1 Current ratio of blue dart express ltd.

The Current Ratio is used to assess the short-term financial position of a company's
concern. That means it indicates the company's ability to meet its short-term
obligations that are due within one year. It is calculated as Current Assets divided by
Current Liabilities. The Current Ratio is also known as Working Capital Ratio.

The formula for Current Ratio

Current Assets –

These are companies' assets that expect to convert into cash within one year. Some
current assets are Cash, Bank deposits, Inventory, etc. These assets are found in the
company's assets section of the balancesheet.

66
Current Liabilities –

These are a company's debt obligations that are due to be paid within one year. Some
current liabilities are accounts payables, short-term debts, outstanding expenses, etc.
Current liabilities are found in the liabilities section of the company's Balance Sheet.

period 2022 2021 2020 2019 2018

Current 0.846 0.837 0.764 1.10 1.15
ratio
Change 1.02% 9.5% -30.33% -4.87% -3.55%
Price 6862.25 5574.35 2199.05 3593.85 3768.57
Price 23.10% 153.49% -38.81% -4.64% -27.57%
change

Explanation: -

In this chart is shows that the current ratio of year 2022 very low comparing of ratio
year 2018,hences the current ratio of company not satisfactory.

current ratio
1.4

1.2

0.8

0.6

0.4

0.2

0
period 2022 2021 2020 2019 2018

67
4.1.2 Cash Ratio
The Cash Ratio measures the liquidity position of the company. This metric indicates
how much the company can cover its current liabilities with its cash and cash
equivalents. In other words, it shows the company's ability to pay its short-term debts
by cash or items that are similar to cash, such as commercial papers, marketable
securities, treasury bills, etc., that can easily convert into cash. It is calculated by
dividing cash and cash equivalent by current liabilities. The Cash Ratio is also known
as the Cash Asset Ratio.

The formula to derive Cash Ratio

Cash and Cash Equivalents - These are liquid assets that are found in a company's
Balance Sheet. Cash equivalents are short-term commitments such as commercial
papers, marketable securities, treasury bills, etc., which are easy to convert into cash.

Current Liabilities - These are a company's debt obligations that are due to be paid
within one year. Some current liabilities are accounts payables, short-term debts,
outstanding expenses, etc. Current liabilities are found in the liabilities section of the
company's Balance Sheet.

68
 Period 2018 2019 2020 2021 2022
Cash ratio 0.357 0.345 0.107 0.376 0.332
Change -14.58% -3.44% -68.85% 250.03% -11.77%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

Explanation: -
In this chart, in year 2021 the highest cash ratio comparing the other years and the last
year’s cash ratio is below to ratio of year 2021.

cash ratio
0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
Period 2018 2019 2020 2021 2022

69
4.1.3 Quick Ratio

The quick ratio is calculated by dividing quick assets by current liabilities. Quick
assets are those assets that can be converted quickly into cash. It indicates whether
the company can pay its current short-term obligations or not using its quick assets.
This metric is an improved version of the current ratio. And it is used as a
complementary ratio to the current ratio. While calculating the quick ratio it includes
quick assets like cash, marketable investments, debtors, and bills receivable which
can easily convert into cash. Quick Ratio is also known as 'liquid ratio' and 'acid test
ratio'.

The formula to derive Quick Ratio

Quick Assets - These are the assets owned by the company that can easily convert
into cash. Some quick assets are cash deposits, accounts receivable, short-term loans
and advances, marketable securities, etc. It is calculated by subtracting inventories
from current assets

Current Liabilities - These are a company's debt obligations that are due to be paid
within one year. Some current liabilities are accounts payables, short-term debts,
outstanding expenses, etc. Current liabilities are found in the liabilities section of the
company's Balance Sheet.

70
 Period 2018 2019 2020 2021 2022
Quick 1.12 1.06 0.736 0.813 0.818
ratio
Change -3.09% -5.00% -30.85% 10.41% 0.695%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

Explanation: -
In this chart ,last financial year quick ratio is below to ideal ratio of the year 2018.

Quick ratio
1.2

0.8

0.6

0.4

0.2

0
Period 2018 2019 2020 2021 2022

71
4.1.4 Debt to Equity Ratio
Debt to Equity Ratio shows the relationship between the company's total debt and
total shareholder’s fund. And it indicates whether the company is financially healthy
or not and the ability of a company's shareholders' equity to pay its debt obligations
in a tough time. It signifies the long-term solvency position of the company. And debt
to equity ratio is also known as the External-Internal Equity Ratio.

The formula to derive Debt to Equity Ratio

Total Debt - It is a sum of the company's long-term debts and short-term debts. And
it is found in the company's liabilities section of the Balance Sheet.

Total Shareholders Fund - It refers to the equity amount which belongs to the
company's shareholders or owners' claim on the assets after settlement of debts. It is
also known as Shareholders equity, and it is found in the Balance Sheet.

72
 Period 2018 2019 2020 2021 2022
Debt to 0.764 0.859 0.835 1.31 0.460
equity
Change -32.10% 12.47% -2.74% 56.46% -64.82%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

Explanation: -

In this chart, in year 2021 the ratio’s growth was satisfactory, but In the last year ratio
fall down.

Debt to equity
1.4

1.2

0.8

0.6

0.4

0.2

0
Period 2018 2019 2020 2021 2022

73
4.1.5 Short-Term Debt to Equity Ratio

Short-Term Debt to Equity Ratio measures the company's ability to meet its short-
term debt obligations by shareholders' equity. Short-Term Debts are current
liabilities of the company. Some short-term debts are wages, current taxes, accounts
payable, short-term loans, etc. It is computed by dividing short-term debts by total
shareholders' equity.

The formula to derive Short-Term Debt to Equity Ratio

Short-term debts - These are a company's debt obligations that are due to be paid
within one year. Some short-term debts are current taxes, short-term loans, etc. Short-
term debts are found in the liabilities section of the company's Balance Sheet.

Total Shareholders Fund - It refers to the equity amount which belongs to the
company's shareholders or owners' claim on the assets after settlement of debts. It is
also known as Shareholders equity, and it is found in the Balance Sheet.

74
 Period 2018 2019 2020 2021 2022
Short term 0.202 0.253 0.244 0.591 0.229
debt to eq
Change -51.65% 25.26% -3.38% 141.84% -61.21%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

Explanation; -

In this chart, ideal ratio is the year of 2021.the last year ratio is low comparing the
ideal ratio.

Short term debt to equity

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
Period 2018 2019 2020 2021 2022

75
4.1.6 Interest Coverage Ratio
Interest Coverage Ratio measures how well a company can pay its interest expenses,
which are concerned with outstanding debts. It is computed by dividing EBIT
(Earnings Before Interest and Tax) by Interest Expenses. This ratio is expressed as 'x'
number of times a company can meet its interest expenses. This metric is commonly
used by Lenders, Investors, and Creditors to analyze the risk before lending capital to
a company. Interest Coverage Ratio is also popularly known as the 'Times Interest
Earned Ratio'.

The formula to derive Interest Coverage Ratio

EBIT - Earnings Before Interest and Tax (EBIT) indicates the company's profitability
before paying interest and tax. EBIT is also known as operating Profits or Net Income
before interest and tax. And it is found in the Income statement of the company.

Interest Expenses - it is interest that the company has to pay on its borrowing like
debts, bonds, credits, etc., These are non-operating expenses that are recorded in the
company's Income Statement.

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 Period 2018 2019 2020 2021 2022
Interest 6.69 4.49 0.870 2.26 7.09
coverage
change 9.04% -32.91% -80.62% 159.71% 213.70%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

Explanation; -
In this chart, the last year’s ratio was highest interest coverage ratio to other years.

interest coverage
8

0
Period 2018 2019 2020 2021 2022

77
4.1.7 Dividend Coverage Ratio
The Dividend Coverage Ratio (DCR) measures the number of times a company can
pay dividends to its shareholders. It is calculated by dividing the net income by
dividend paid. Prospective Lenders used this Solvency metric to analyze the strength
of the company in making the payments of interest regularly out of net income.
Dividend Coverage Ratio is also known as Dividend Cover.

The formula to derive Dividend Coverage Ratio

Net Income - Net Profit or Net Income is measured by sales minus the Cost of goods
sold, general and administrative expenses, operating expenses, other expenses,
depreciation, interest, and taxes, etc. Net Profit is found in the Income statement of
the company.

Dividend Paid - It is a distributed amount of the company's profits to its shareholders.

It is found in the company's Cash Flow Statement.

78
Period 2018 2019 2020 2021 2022
Dividend 4.07 3.03 -1.41 1.07 4.03
coverage
Change 106.97% -25.57% -146.64% 176.07% 275.41%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

5
DIVIDEND COVERAGE

0
Period 2018 2019 2020 2021 2022
-1

-2

79
4.2 Profitability Ratio
Profitability ratios show how effectively a company makes money and adds value for
shareholders. It helps to measure and evaluate the company's ability to generate
profits. These ratios take into account various components of the Income statement,
balance sheet and cash flow statement to analyze how the business has performed.

For the majority of profitability ratios, a higher value in comparison to a competitor's

ratio or to the same ratio from a previous period indicates the company's success. Any
company therefore aims for a higher ratio, which shows that the company is doing
well in terms of revenue, profits, or cash flow. The majority of creditors and investors
also analyse a company's return on investment in relation to its relative level of
resources and assets using profitability ratios.

4.2.1 Net Margin

Net Margin is the company's Net Profit divided by the Total Revenue. This
profitability metric indicates how much of a net profit is generated for each rupee of
revenue earned and expressed as a percentage. It measures the company's profitability
and management's capability to manage its expenses to generate profit. Net Margin is
also known as the Sales Ratio or Net Profit Margin. A high net margin indicates
positive returns in the business, and the company is efficiently managing its expenses
and converting its sales into a profit.
The formula to derive Net Margin

80
Net Profit - also known as Net Income or Bottom Line. It is a portion of the money
that the company left after they subtracted their total business expenses from their
total revenue. Net profit is found at the bottom of the Income Statement.

Total Revenue - It indicates how much a company's revenue is before deducting any
expenses. Total revenue is found in the company's Income Statement.

Period 2018 2019 2020 2021 2022

Profit 5,17 2.83 -1.32 3.10 8.67

margin
Change -0.574% -45.30% -146.62% 334.86% 179.88%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

net profit margin

10

0
Period 2018 2019 2020 2021 2022
-2

81
4.2.2 Return on Equity (ROE) Ratio
The Return on Equity (ROE) is a profitability metric that measures a company's
ability to generate profits using its shareholder's fund. ROE is calculated by dividing
Net Income by Shareholders' Fund.

A higher ratio indicates how well the company is utilizing its equity to generate
profit. ROE is commonly expressed as a percentage. And it is utilized in all screeners
and charts throughout the site.

The formula to derive ROE

Net Income - Net Profit or Net Income is measured by sales minus the Cost of goods
sold, general and administrative expenses, operating expenses, other expenses,
depreciation, interest, and taxes, etc. Net Profit is found in the Income statement of the
company.

Shareholder's Equity - Shareholders Equity or Shareholders Fund is the amount of

equity that belongs to the shareholder of the company. It is found in the
Company's Balance Sheet.

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Period 2018 2019 2020 2021 2022
ROE 27.21 15.54 -8.53 17.20 43.83
Change -16.43 -42.90% -154.89% 301.66% 154.85%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

retrun on equity
50

40

30

20

10

0
Period 2018 2019 2020 2021 2022
-10

-20

83
4.2.3 EBITDA Margin
EBITDA Margin is the profitability ratio that measures a company's earnings before
interest, taxes, depreciation, and amortization as a percentage of revenue. EBITDA is
the abbreviation for Earnings before Interest, Taxes, Depreciation, and Amortization.

A high EBITDA margin indicates that the operating expenses are less compared to
company total revenue, while a low EBITDA margin indicates that the company is
struggling with profitability. An EBITDA margin of 15% or higher is considered
favourable for most industries.

The formula to derive EBITDA Margin

EBITDA - EBITDA stands for Earnings before interest, taxes, depreciation, and
amortization and is found in the company's Income Statement.

Total Revenue - It indicates how much a company's revenue is before deducting any
expenses. Total revenue is found in the company's Income Statement.

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Period 2018 2019 2020 2021 2022
EBITDA 13.29 9.60 13.88 20.70 22.55
CHANGE -2.86% -27.76% 44.57% 49.20% 8.93%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

EBITDA
25

20

15

10

0
Period 2018 2019 2020 2021 2022

85
4.2.4 Return on Assets (ROA)
The return on assets (ROA) is a commonly used profitability ratio that shows how
effectively a company uses its assets to generate profit.

The higher ROA, the better a company's resource utilization is, or in other words, the
more profitable it is. ROA is commonly expressed as a percentage numbers and is
utilized in all screeners and charts throughout the site in percentage.

The formula to derive ROA

Net Profit - Net Profit or Net Income is measured by sales minus Cost of goods sold,
general and administrative expenses, operating expenses, other expenses,
depreciation, interest, and taxes, etc. Net Profit is found in the Income statement of
the companies.
Average Assets - Average Assets are the sum of total assets of the current year and
previous year divided by two. And it is found in the company's Balance sheet.

86
Period 2018 2019 2020 2021 2022
ROA 9.60 4.96 -1.59 3.51 13.51
Change -3.67% -48.54% -131.99% 32.67% 284.53%
Price 3768.75 3593.85 2199.05 5574.35 6862.25
Price -27.57% -4.64% -38.81% 153.49% 23.10%
change

return on asset
16
14
12
10
8
6
4
2
0
2018 2019 2020 2021 2022
-2
-4

87
Chapter: -5 Conclusion and suggestion

5.1 FINDINGS

At this stage, the financial analysis has been done in order to draw some broad
conclusions about Blue Dart Express Limited results. One of the most important
things to understand about financial analysis is that the financial statements provide
all the details needed to make a definitive decision about what is going on in the
business. From the analysis ratio of five years, financial statements of blue dart
express Limited. have been used to analyse the financial analysis for the years under
study (2022-2023).

PROFITABILITY ANALYSIS

 Net profit margin which measures how profitable a company’s sales are after
deducting all expenses interest, taxes & preferred stock dividends, In this ratio is
increases year by year, which implies higher level of profitability of company.

 Return on total assets is a pure measure of the efficiency of a company in generating

returns from its assets. last year Return on assets ratio of the company is highest ratio
during the 5 years , which shows positivity of the profitability of the company.

 Return on equity which measures the returns earned on the common stock holder’s
investment in the company which is highest ratio of last year of company in given
periods. This indication reflects the good performance of the management on the
invested financial resources.

 The overall performance of BLUE DARTE express limited. regarding profitability

was GOOD.

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LIQUIDITY ANALYSIS

 In the year 2018 the company had the current ratio which is highest but since then it
has fallen. Last year ratio is 0.846, which shows the negativity of liquidity of the
company.

 Since 2018-2022, the corporation's quick ratio has 1.12 to 0.818. It indicates that the
firm's ability to fulfil short-term obligations is declining.

 The company’s cash ratio which measures its ability to cover its short-term
obligations using only cash and cash equivalents has also declined from 0.357 to
0.332

 Overall, the liquidity position of the company is not good.

LEVERAGE ANALYSIS

 Fixed interest coverage ratio shows that the company’s ability to make contractual
interest payments is massively positive and increasing. From 6.69 in 2018 to positive
7.06 in 2022 which shows that the company is a good position to make payments

89
5.2 CONCLUSION

BLUE DART EXPRESS IS GLOBALLY GROWING COMPANY WITH A

GREAT DISTRIBUTION NETWORK ALL OVER THE WORLD.THE COMPANY
HAS AN ADVANCED TECHNOLOGY SYSTEM TO PROPERLY FUNCTION
ITS SERVICES.IT NEEDS TO WORKS ON IT VISIBILITY AND EXPANSION IN
RURAL AREAS TO BECOME A LEADER IN THE LOGISTICS INDUSTRY.

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5.3 BIBLIOGRAPHY

Reference books:

 Brigham, E. and Houston, J., n.d. Fundamentals of financial management.

 Higgins, R., Koski, J. and Mitton, T., 2019. Analysis for financial management.
New York, NY: McGraw-Hill Education.

Websites:

 https://www.bluedart.com

 https://www.moneycontrol.com/financials/bluedartexpress/balance-

sheetVI/BDE

 https://www.wsj.com/market-data/quotes/IN/XNSE/BLUEDART/financials

 https://economictimes.indiatimes.com/blue-dart-express-ltd/balance...

 https://www.wsj.com/.../XNSE/BLUEDART/financials/annual/income-

statement

 https://stocks.zerodha.com/stocks/blue-dart-express-BLDT/financials?...

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