VAISH COLLEGE OF ENGINEERING, ROHTAK

SESSION: 2021 – 2024

SUMMER TRAINNING REPORT

ON
FINANCIAL MANAGEMENT ANALYSIS
AT
SURAJ AUTO PARTS, ROHTAK HARYANA

SUBMITTED BY: HIMANSHU SAINI

ROLL NO: 21/BBA/25
UNIVERSITY ROLL NO :
REGISTRATION NO: 211927192
DEPARTMENT: BBA
DEPARTMENT OF MANAGEMENT STUDIES
 ACKNOWLEDGEMENT

I feel privileged to work for such a project which has helped not only in gaining knowledge
about the subject but also in getting introduced to the corporate world. I would like to thank
various people who have helped me at various stages of Summer Internship Program.

First and Foremost, my intellectual debt is to Mr. Pradeep, Assistant Training &
Development Manager who gave me the opportunity to work on such a project. They
provided guidance in this project and contributed significantly towards completion of the
project.
I would like to thank my college faculties from where I could avail various facilities and
guidance.
I would also like to take this opportunity to acknowledge the encouragement and support
extended to me by the staff and my colleges of Financial Performance Analysis Department.

Himanshu
 Declaration

The Summer Internship Program was based on acquisition of clients, providing financial
consultancy & making portfolios and rebalancing of existing portfolios of the clients. The
work and deliverables involved in the project were understanding different financial
instruments, to study about different taxes exempted for life insurance policies, to analyse
that which is the financial instrument which people invest mostly in & trust, to analyse why
mutual funds & bank deposits are important & preferred over other investments, to compare
the risks & returns involved in both mutual funds & bank deposits and to study the various
factors involved for the comparison of mutual funds & bank deposits. After completing all
these tasks early, the organization given some tasks related to Human Resource that was
taking telephonic interviews.
 ABSTRACT

The Summer Internship Program is a blend of finance and analytics based on different
customers. As ERIC is an equity firm which basically carries out various activities like
managing wealth, portfolio rebalancing and providing financial consultancy to an individual
or a group or a company. The main focus of the project is about the comparative study of
risks and returns involved in mutual funds and bank deposits of different companies and
analysing them that which yield the maximum returns with how much risk involved. The
project also includes that how we should do financial planning for an individual or a group or
a company that is basically how we should advise an individual or a group or a company to
manage their wealth and maximize the returns and how we can rebalance their portfolios with
the change in their goals. It has also given a brief knowledge of different types of financial
instruments like Insurance Public Provident Fund(PPF), Gold, Real Estate, Fixed Deposits
on the parameters of the risks involved the returns and there interest rates .We also gained
knowledge on different taxes. We were given exposure of how to acquire clients for life
insurance and given all the information about the benefits of getting life insurance and how
the customer can save their taxes by investing. We also learned how to write IPS (Investment
Policy Statement) of the clients acquired.

We also did a study in which we basically saw that which is the financial instrument in which
most of the people who invests their money. The project also includes my practical situation
during the internship program that why the risks involved is more in mutual funds rather
than bank deposits and why the returns are more in mutual funds more than bank deposits if
kept for long-term. The project also includes that there are three types of consumer behavior
of people that can be moderate, conservative and high. We also made portfolios of the clients
we acquired or rebalanced their current portfolios that were already made.

“An Organization’s success lies in its ability to assume and aggregate risk within tolerable
and manageable limits”
 CONTENTS

CHAPTERS TITLES

1 1.1 INTRODUCTION TO THE STUDY

1.1.1 SIGNIFICANCE OF FINANCIAL PERFORMANCE

ANLYSIS
1.1.2 TECHNIQUES FOR FINANCIAL PERFORMANCE
ANALYSIS
1.1.3 LIMITATION OF FINANCIAL PRFORMANCE ANALYSIS

2 2.1 COMPANY PROFILE

2.1.1 VISION

2.1.2 MISSION

2.1.3 CORE VALUES

2.1.4 CORPORATE HISTORY

2.1.5 DIVISION OF ORGANISATION

2.1.6 PRODUCTS

2.1.7 KEY PERSON

2.1.8 MILESTONE

2.1.9 EXPORTS

2.1.10 INSPECTION AGENCIES

2.1.11 VALUED CUSTOMERS

2.1.23 SWOT ANALYSIS

2.1.22 CORPORATE SOCIAL RESPONSIBILITY 2.1.21

SHAREHOLDING PATTERN
2.1.20 PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
 3 3.1 OBJECTIVE AND SCOPE

3.1.1 OBJECTIVES OF STUDY

3.1.2 SCOPE OF THE STUDY

3.1.3 LIMITATIONS OF STUDY

4 4.1 RESEARCH METHODOLOGY

4.1.1 DATA COLLECTION

4.1.2 SAMPLING DESIGN

4.1.3 TOOLS USED

5 5.1DATA ANALYSIS AND INTERPRETATION

5.1.1COMMON SIZE STATEMENTS ANALYSIS
5.1.2RATIO ANALYSIS
5.1.3 COMPARATIVE STATEMENT ANALYSIS 5.1.4
INTER FIRM ANALYSIS
5.1.5 CASH FLOW STATEMENT ANALYSIS

6 6.1 OUTCOMES

7 7.1 BIBILIOGRAPHY
 CHAPTER-1

INTRODUCTION TO

STUDY

.1 INTRODUCTIONS TO THE STUDY

Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of balance
sheet and profit and loss account. It also helps in short-term and long term forecasting and
growth can be identified with the help of financial performance analysis. The analysis of
financial statement is a process of evaluating the relationship between the component parts of
financial statement to obtain a better understanding of the firm’s position and performance.
This analysis can be undertaken by management of the firm or by parties outside the namely,
owners, creditors, investors.
The analysis of financial statement represents three major steps:

▪ the first step involves the re-organization of the entire financial data contained the financial
statements. Therefore the financial statements are broke down into individual components and
re-grouped into few principle elements according to their resemblances and affinities. Thus
the balance sheet and profit and loss accounts are completely re-casted and presented in the
condensed form entirely different from their original shape.
▪ the second step is the establishment of significant relationships between the individual
components of balance sheet and profit and loss account. This is done through the application
tools of financial analysis like Ratio analysis, Trend analysis, Common size balance sheet and
comparative Balance sheet.
▪ finally, the result obtained by means of application of financial tools is evaluated.

1.1.1 SIGNIFICANCE OF FINANCIAL PERFORMANCE ANLYSIS The analysis of

financial performance is used by most of the business communities. They include the
following.
1. Trade Creditors

The creditors provide goods / services on credit to the firm. They always face concern about
recovery of their money. The creditors are always keen to know about the liquidity position of
the firm. Thus, the financial performance parameters for them evolve around short term
liquidity condition of the firm.
2. Suppliers of long term debt
The suppliers of long term debt provide finance for the on-going /expansion projects of the
firm. The long term debt providers will always focus upon the solvency condition and
survival of the business. Their confidence in the firm is of utmost importance as they are
providing finance for a longer period of time. Thus, for them the financial performance
parameters evolve around the following:
I) Firm’s profitability over a period of time.

ii) Firm’s ability to generate cash - to be able to pay interest and

iii) Firm’s ability to generate cash – to be able to repay the principal and

iv) The relationship between various sources of funds.

The long term creditors do consider the historical financial statements for the financial
performance. However, the financial institutions \ bank also depends a lot on the projected
financial statements indicating performance of the firm. Normally, the projections are
prepared on the basis of expected capacity expansion, projected level of production / service
and market trends for the price movements of the raw material as well as finished goods.

3. Investors

Investors are the persons who have invested their money in the equity share capital of the
firm. They are the most concerned community as they have also taken risk of investments –
expecting a better financial performance of the firm. The investors‟ community always put
more confidence in firm’s steady growth in earnings. They judge the performance of the
company by analyzing firm’s present and future profitability, revenue stream and risk
position.

4. Management

Management for a firm is always keen on financial analysis. It is ultimately the responsibility
of the management to look at the most effective utilization of the resources. Management
always tries to match effective balance between the asset liability management, effective risk
management and short-term and long-term solvency condition.
1.1.2 TECHNIQUES FOR FINANCIAL PERFORMANCE ANALYSIS

a) COMMON SIZE STATEMENT

Common size statements are those in which individual figures are converted into percentage
to some common base. Percentage of each individual item has shown its relation to its
respective total. This type of analysis is called vertical analysis since each accounting
variable is analyzed vertically. It may be prepared for

Utility of Common Size Statement

These statements are very useful or comparing the profitability and financial position of two
or more businesses. This is because the financial statements of different firms can be
converted into uniform common-size format irrespective of the size of individual items.
However, the comparison will be valid only when the accounting policies used by various
firms are similar.
Limitations of Common Size Statement

These statements show the % of each item to the total sum but do not disclose change in
individual item from period to period.
There are no standardized norms for the proportion of each item to total.

B) FINANCIAL RATIO ANALYSIS

The Financial Ratio Analysis is considered to be the most powerful tool of financial analysis.
In simple language ratio means relationship between two or more things. It is also said that a
ratio is the indicated quotient of two mathematical expressions. The ratio analysis also helps
to summarize the large quantities of financial data and to make qualitative judgment about
the firm’s financial performance. There are various liquidity ratios which are quantitative in
nature but are helpful to make qualitative judgment about the firm. The financial ratios
involve useful information about the analysis of the firm. However, standalone ratio of one
firm alone may not be useful to evaluate the firm’s performance. Therefore, ratio should
ideally be compared with some standard which may consist of the following
I) Past Ratios

Past ratios are the ratios which are calculated from the financial statements of previous years.
ii) Competitors’ Ratios The ratios of some same size and industry representative firm,
which can be considered as the progressive and successful competitor can be useful for
comparison. However, they should be compared within a similar timeframe.
iii) Industry Ratio

There are some ratios which are common at industry level. However, they may be compared
at the firm level – in reference to which the industry belongs.
Ratios are calculated based on the financial and related statement like. Profit & Loss account,
Balance Sheet etc. The ratios are classified as under:
a) Liquidity Ratios

b) Leverage Ratios

c) Activity Ratios and

d) Profitability Ratios

C) COMPARATIVE STATEMENT ANALYSIS

Comparative Statement Analysis is one of the methods to trace periodic change in the
financial performance of a firm. The changes over the period are described by way of
Increase or Decrease in income statement and balance sheet. The changes are normally of
two types: I) Aggregate Changes
ii) Proportional Changes

An assessment of comparative financial statement helps to highlight the significant facts and
points out the items requiring further analysis. All annual report of the selected companies
provides data related to last two financial years.
Various types of financial statements are prepared in comparative form for the purpose of
analysis. Out of these the most important financial statements are:
1. COMPARATIVE BALANCE SHEET

2. COMPARATIVE PROFIT & LOSS ACCOUNT

IMPORTANCE OF COMPARATIVE STATEMENT

To make the data simpler and more understandable.

To indicate the strong points and weak points of the firm.

To indicate the trend.

To compare the firm’s performance with the average performance of the industry.

To help the management in forecasting the profitability and financial soundness of the
business.
LIMITATIONS OF COMPARATIVE STATEMENT

These statements do not present the change in various items in relation to various assets,
total liabilities or net sales.
These statements are not useful in comparing the financial statements of two or more
business because there is no common base for comparison

D) TIME SERIES ANALYSIS OR TREND ANALYSIS

The Time Series Analysis or Trend Analysis indicates of ratio indicates the direction of
changes. The trend analysis is advocated to be studied in light of the following two factors. I)
The rate of fixed expansion or secular trend in the growth of the business and
ii) The general price level.

Any increase sales statement may be because of two reasons, one may be the increase in
volume of business and another is the variation in prices of the goods / services. For trend
analysis, the use of index number is generally advocated. The procedure followed is to assign
the number 100 to the items of each base year and to calculate percentage changes in each
item of the other years in relation to the base year. This is known as „Trend-Percentage
Method‟.

E) INTER FIRM ANALYSIS

A firm would like to know its financial standing vis-à-vis its major competitors and the
industry group. Analysis of financial performance of all firms in an industry and their
comparison at a given point of time is referred to the Cross Section Analysis or Inter-firm
analysis.

F) CASH FLOW STATEMENT

It is a statement showing inflows and outflows of cash during a particular period. It is a

summary of sources and application of cash during a particular span of time. It analyses the
reason for changes in balance of cash between the two balance sheet dates. A cash flow
statement includes only those items which effect cash. It is also known as “statement of
changes in financial position-cash basis.
 USES OF CASH FLOW STATEMENT
Comparison with cash budget

Study of trend of cash receipt and payments.

It explains the deviation of cash from earnings.

Helpful in ascertaining cash flow from various activities separately.

LIMITATIONS OF CASH FLOW STATEMENTS

Not suitable for judging the liquidity.

Possibility of window dressing.

It ignores the non-cash transactions.

It ignores the accrual concept of accounting.

No substitutes for income tax.

Historical in nature.

CLASSIFICATION OF CASH FLOW STATEMENT

Cash flow activities have been classified into three parts:

(A) CASH FLOW FROM OPERATING ACTIVITIES

Operating activities are main revenue generating activities of an enterprise. It includes cash
flow from those transactions and events which enter into ascertainment of net profit or loss of
the enterprise.
(B) CASH FLOW FROM INVESTING ACTIVITIES

It includes the purchase and sales of long term assets such as land, building, plant, and
machinery etc. not held for resale. These activities also include the purchase and sale of such
investment which is not included in cash equivalents. Cash flow from investing activities
discloses the expenditure incurred for resources intended to generate future income and cash
flows.
(C) CASH FLOW FROM FINANCING ACTIVITIES

Financing activities are the activities that results in change in capital and borrowing of the
enterprise. It includes cash receipt from issuing shares or other similar instruments etc.

1.1.3 LIMITATION OF FINANCIAL PRFORMANCE ANALYSIS

Each project gives rise to its own unique risks and hence possesses its own unique challenges.

1. Only Interim Report

Only interim statements don’t give a final picture of the concern. The data given in these
statements are only approximate. The actual position can only be determined when the
business is sold or liquidated.
2. Don’t Give Extra Position:

The Financial Statements are expressed in monetary values, so they appear to give final and
accurate position. The values of fixed assets in the Balance Sheet neither Represent the Value
for Which Fixed Assets Can Be Sold or the Amount Which Will Be Required to Replace
These Assets.
3. Historical Costs:

The Financial Statements Are Prepared On The Basis Of Historical Costs Or Original Costs.
The Value of Assets Decreases with the Passage of Time Current Price Changes Are Not
Taken Into Account. The Statements Are Not Prepared Keeping In View The Present
Economic Conditions. The Balance Sheet Loses The Significance Of Being An Index Of
Current Economic Realities.
4. Act of non-monitory factors Ignored:

There are certain factors which have a bearing on the financial position and operating results
of the business but they don’t become a part of these statements because they can’t be
measured in monetary terms. Such factors may include in the reputation of the management.
5. No Precision:
The precision of financial statement data is not possible because the statements deal with
matters which can’t be precisely stated. The data are recorded by conventional procedures
followed over the years. Various conventions, postulates, personal judgments et25

OBJECTIVES OF STUDY
• To study and analyze the finiancial position of company
• To summarize previous years financial report of the company
 CHAPTER-2

COMPANY PROFILE

2.1 COMPANY PROFILE

Suraj Auto Products is proudly serving its customers with ERW pipe products and lighting
products and fan products by combining quality, experience, technical know-how,
dependability and application of highest standards and technology.
It was incorporated in 1973 with a steel pipe plant located at Bahadurgarh in Haryana & has
emerged today as a vast conglomerate. Presently, this plant has emerged as one of the largest
plant in Asia, with a production capacity of 180000 MT of steel pipes annually. Today
company’s product portfolio comprise of fluorescent tube lights, GLS lamps, CFL lamps,
HPSV Lamps, HPMV Lamps Metal Halide Lamps and ERW pipe.
With a turnover of over Rs.3 cores in the financial year 2020 - 19, the company’s quest for
growth is never ending. There are regular expansions of capacity and installation of balancing
facilities for augmenting the production to meet growing demand in both lighting and steel
segments.
Suraj Auto Products is amongst the world leading ERW steel pipe manufacturer of the oil and
gas industry and a major supplier for the construction sector. The company has wide
marketing network with its branches, dealers and retailers outlets spread across the length and
breadth of the company.
Presently, it has marketing network of 30 branches, over 2000 authorized dealers and over 1,
00,000 retailers in India itself. In India, Suraj Auto Products is the second largest seller of
GLS and FTL. Currently company has presence in over 48 countries namely Australia,
Indonesia, Oman, Bahrain, Iran, Paraguay, Bangladesh, Jordan, Saudi Arabia, Botswana,
Korea, Singapore, Columbia, Kenya, Sri Lanka, Egypt and many more.

2.1.1 VISION

To become an “integrated global energy corporation” and offer competitive, best in class,
premium quality product to satisfy day to day needs of consumers in India and across the
world.
 CHAPTER 3

OBJECTIVE AND SCOPE

3.1 OBJECTIVE AND SCOPE

3.1.1 OBJECTIVES OF STUDY

The main objective of present work is to make a study on the overall financial performance
of organization. More specifically it focuses:
• To assess the short term and long term solvency.

• To assess the liquidity and profitability position and trends.

• To know the efficiency of financial operations.

• To analyze the financial changes over of period of 4 years.

3.1.2 SCOPE OF THE STUDY

The study report being made here brings out the financial structure & the position of the
SURAJ AUTO PRODUCTS ROSHNI LTD. during the different years. The financial study
helps us to analysis the financial background & the utilization of the income earned.

3.1.3 LIMITATIONS OF STUDY

Due to constraints of time and resources, the study is likely to suffer from following
limitations. Some of these are mentioned here under so that findings of study may be
understood in a proper perspective:
• The study is based on secondary data and limitations of using the secondary data may affect
the result.
• The secondary data was taken from annual report of Surya. It may be possible that the data
shown in annual report may be window dressed which may not present the actual position of
company. • Also study is restricted for a period of 4 years which may not reflect the true and
current scenario of firm.
 CHAPTER 4

RESEARCH

METHODOLOGY

4.1 RESEARCH METHODOLOGY

Research methodology is a scientific and systematic way to solve the research problem. It is
conceptual structure within which research is conducted. In preparing of this project, the
information collected from the following sources:

4.1.1 DATA COLLECTION

PRIMARY DATA

The primary data has been collected by personal interaction with Finance Manager Mr. Atoll
Gupta and other staff members.
SECONDARY DATA

The major sources for secondary data are as follows:

Annual financial Statements of the Surya.

News, announcements and bulletins already available on company online portal

Newspaper publications in Economics Times.

4.2 SAMPLING DESIGN

Sampling Unit: Financial statements from annual report

Sampling Size: last five years financial statements

4.3 TOOLS USED

• Ratio analysis

• Comparative statement analysis

• Common size statement

• Cash flow statement5

 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

5.1DATA ANALYSIS AND INTERPRETATION

5.1.1 COMMON SIZE STATEMENTS ANALYSIS

TABLE NO.4 COMMON SIZE INCOME STATEMENT FOR YEAR MAR 19 TO

MAR 22

Particulars Mar19 % Mar20 % Mar 21 % Mar %

22
Rs. (Cr. Rs.
Rs.(Cr.) Rs.
(Cr.
)
(Cr.
)
)

Gross sales 3234.5 109.36 3319.3 109.51 3276.0 110.71

7 6 2

Less: 53.73 1.88 69.20 2.28 92.21 3.23

interdivision al

transfer

Less: sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
return

Less: excise 232.74 7.58 222.74 7.48 219.19 7.23 220.78 7.29

Net sales 3068.8 100 2857.1 100 3030.9 100 2959.0 100
7 0 7 3

Expenditure

Inc./Dec in stock (21.56) 4.49 0.20 -62.45 -2.06 31.01 1.04

Raw material 2194.8 2019.3 70.57 2287.0 75.45 2185.8 73.87

consumed 4 6 7 6

Power & fuel 65.38 68.86 2.41 66.35 2.19 58.23 1.96

Employee cost 187.78 206.37 5.47 201.06 4.98 224.69 4.55

Other 61.65 102.84 3.599 98.80 3.26 83.59 2.82

manufacturing
expense

General & 28.06 25.07 0.877 20.30 0.67 18.48 0.62

administration
exp.

Selling & 295.00 243.43 8.52 218.39 7.21 193.58 6.54

distribution
Exp.

Miscellaneous 17.45 19.59 0.58 17.82 0.59 19.96 0.57

exp

Total 2828.6 2634.0 92.19 2797.3 92.29 2722.3 92.00

expenditure 0 1 2 9

PBIDT 240.27 223.09 7.8 233.65 7.81 236.63 7.99

Other income 1.84 3.73 0.22 3.58 0.23 1.63 0.05

Operating 242.11 226.82 7.94 237.24 7.83 238.26 8.05

profit

Interest 96.43 109.00 3.81 121.47 3.78 109.67 3.70

PBDT 220.68 117.82 4.23 232.77 4.05 238.59 4.34

Depreciation 60.67 56.04 1.96 55.64 1.84 56.51 0.22

PBT & 85.01 61.78 2.19 67.22 2.22 72.08 2.43

exceptional
item

Exceptional item 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PBT 85.01 61.78 2.19 67.22 2.22 72.08 2.43

Tax provision 22.96 7.69 0.27 22.77 0.45 2.83 0.09

PAT 62.05 54.09 1.89 53.36 1.76 69.25 2.34

Extraordinary 0.00 0.00 0.00 0.00 0.00 0.00 0.00

items

Profits balance 377.40 334.56 11.7 292.35 9.64 251.52 8.50

Appropriations 439.45 388.67 345.71 320.76

Equity dividends 10.00 10.00 10.00 40.00

(%)

EPS 21.19 23.34 23.17 20.80

Book value 214.11 225.63 234.63

INTERPRETATION

• Increase in total expenditure from 91.82% to 92.19% resulting into

fall in profits from 8.18(Mar 11) to 7.8(Mar 20)
• As a base to net sales, other income rises by 0.11% in the year
march20 as compare to March11, along with rising interest expenses
to approx. by 1.00%
• Rise in interest income, result into tall in RBT by 1.00%

• Tax provision has been rising as contrast to fall in profit, due to increase in
non-operating income.
• There is great disparity between equity dividend as compare declares a
dividend of 20% (march11), whereas company declares dividend of 0% (Mar
11), and 40% (Mar 22) which becomes stable at 10% in Mar 21 and Mar 20.

• TABLE NO.5 COMMON SIZE BALANCE SHEETFOR YEAR MAR19

TO MAR22

Particulars 31-03- 31-03- 31-03-2021 31-03-2022

2019 2020 Rs.(Cr.) Rs.(Cr.)
Rs.(Cr.) Rs.(Cr.)

EQUITY &
LIABILITY

Shareholder's

Funds

Share capital 43.83 2.04 43.83 2.11 43.83 2.11 43.83 2.42

Reserves and 823.96 38.47 767.18 37.09 730.07 35.26 688.43 37.92
Surplus

Non-Current
Liabilities
 332.77 20.54 364.27 17.6 400.97 19.36 368.31 20.29

Long Term
Borrowings

Deferred 52.35 2.4 51.30 2.4 48.34 2.33 42.44 2.34

Tax
Liabilities
(Net)

Other 7.81 0.36 7.02 0.34 5.80 0.28 5.27 0.29

Long
Term
Liabilities

Long Term 23.39 1.09 19.20 0.92 17.10 0.84 17.51 0.97
Provisions

Current 522.18 23.97 520.52 24.9 550.21 26.57 401.11 22.1

Liabilities

Short Term
Borrowings

Trade 222.22 9.95 172.23 8.32 120.83 5.6 74.52 4.11

Payables

Other 231.39 5.67 230.68 5.8 227.73 6.65 223.04 7.33

Current
Liabilitie
s

Short-term 9.52 .44 7.19 0.35 20.87 1.0 40.84 2.25

Provisions

Total 2211.42 100 2068.32 2070.72 100.00 1820.30 100.00

100.00
ASSETS

Non-Current
Assets

Fixed Assets

Tangible 935.41 43.68 936.47 45.26 911.86 44.0 853.23 47.0

assets

Tangible 935.41 43.68 936.47 45.26 911.86 44.0 853.23 47.0

assets
Capital 18.37 0.85 26.37 1.26 53.70 2.36 26.00 1.43
work-in
progress

Non-Current 50.00 2.3 50.00 2.41 50.00 2.41 50.06 2.76

Investments

Other Non 7.87 0.36 7.28 0.35 - - - -

Current
Assets

Current
Assets

Inventories 469.87 21.94 389.52 18.78 433.23 20.92 380.31 20.95

Trade 518.07 24.19 524.22 25.34 496.57 24.99 410.34 22.61

receivables

Cash and 27.26 1.27 26.35 1.27 24.68 1.19 18.65 1.03
cash
Equivalents

Short-term 121.01 5.32 117.68 5.68 94.02 4.55 70.28 3.87

loans and
advances

Other 0.56 .026 8.24 .39 6.73 0.33 6.43 0.35

current
assets

Total 2211.42 100 2068.32 2070.72 100.0 18,20.30 100.00

100.00
INTERPRETATION

• Reserve and Surplus has maximum contribution in total liabilities (Approx.

37%) followed by Short Term Borrowings which varies from 20% to 24%
• Also contribution of long term borrowings in total liabilities has been
decreasing from 21.48% to 17.6% along with fall rise in trade payable
contribution from 2.92% to 8.28%. • Tangible assets(Approx. 45%) has
maximum proportion in total assets followed by trade receivable which
varies from 17% to 25%.

• Total proportion of inventories in total assets has been decreasing from

22.76% to 18.74% as compare to the year Mar 11
• Also cash proportion is decreasing in total assets from 1.6% to 1.26%

• Short term loans and other current assets both has declining from
5.66(Mar2010) to 3.62 (Mar 2020) and 0.39 (Mar 2010) to 0.35 (Mar
2020) respectively.

5.1.2 RATIO ANALYSIS

1. LIQUIDITY RATIO

These ratios are measured to assess the short term financial position of the concern. They
indicate the firm ability to meet its current obligations out of current resources.

CURRENT RATIO = CURRENT ASSETS - CURRENT LIABILITIES

TABLE NO.6 VALUES FOR CURRENT RATIO

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 1.36 1.28 1.29 1.31

CHART NO.3 CURRENT RATIO OF SURAJ AUTO PRODUCTS INTERPRETATION:

Ideal current ratio is determines as 2:1.In the present analysis the current ratio of the Suraj Auto Products
is satisfactory but fall in ratio from 1.36(2023-22) to 1.31(2020-19) indicates lack of liquidity and shortage
of working capital.
LIQUID RATIO = LIQUID ASSETS - CURRENT LIABILITIES

TABLE NO.7 VALUES FOR LIQUID RATIO

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 0.70 0.75 0.82 0.77

INTERPRETATION:

Usually a high Quick ratio is an indication that the company is liquid and has the ability to
meet its current or liquid liabilities in time on the other hand a low Quick Ratio represents that
the company’s liquidity position is not good. The above table showing the quick ratios of
Suraj Auto Products can be considered satisfactory.

2. LEVERAGE RATIO

These ratios are calculated to assess the ability to firm to meet its long term liabilities as and
when they become due. It also discloses the firm’s ability to meet the interest cost regularly
and long term indebtedness at maturity.

DEBT TO EQUITY RATIO = LONG TERM LOANS - SHARE HOLDER’S FUNDS

TABLE NO.8 VALUES FOR DEBT TO EQUITY

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 0.52 0.51 0.45 0.48

INTERPRETATION:

The Debt-Equity Ratio accepted standard is 0.5. This ratio reflects the relative contribution of
creditors and owners of business in its financing. From the above it is clear that the equity is
more than that of external debts representing long term financial position of company is
sound.

DEBT TO TOTAL FUND RATIO = LONG TERM LOANS - SHAREHOLDER FUND

+ LONG TERM LOANS
TABLE NO.9 VALUES OF DEBT TO TOTAL FUN RATIO

YEARS 2023- 2022- 2021- 2020-

22 21 20 2019

RATIO 0.34 0.34 0.31 0.28

TOTAL FUND RATIO

0.35

0.25

0.20

0.05

INTERPRETATION:

Long term loan of company is less than 0.67 indicates that long term solvency position as
firm has not to depend upon outside loans for its existence. “The lower the ratio, the better it
is for the company”.

PROPRIETARY RATIO = SHAREHOLDERS FUNDS FIXED ASSETS+CURRENT

ASSETS

TABLE NO.10 VALUES OF DEBT TO PROPRIETARY RATIO

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 0.67 0.69 0.66 0.42

INTERPRETATION:

Higher proprietary ratio is indicator of sound financial position and as this ratio is rising
from 0.64(2010-11) to 0.66(2021-20) in a consistent manner provides safety to the long term
lenders of firm.

3. PROFITABILITY RATIO

This ratio indicates that the financial position of the company is sound. The main objective of
every business is to earn profits. A business must be able to earn adequate profits in relation
you the risk and capital invested in it. The efficiency and the success of the business can be
measured by the profitability ratios.

GROSS PROFIT RATIO = GROSS PROFIT X 100

NET SALES

TABLE NO.11 VALUES OF GROSS PROFIT RATIO

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 20.56 25.32 27.87 32.07

INTERPRETATION:

It represent margin of profit on sales. And this margin is constantly rising from 20% to 31%
indicates that there is rise in sale of more profitable varieties of goods or price of raw
material is declining as compare to past years.

NET PROFIT RATIO = NET PROFIT X 100

NET SALES
TABLE NO.23 NET PROFIT

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 1.97 1.76 1.89 1.97

 NET PROFIT RATIO

NET PROFIT
INTERPRETATION:
It establishes a relationship between net profits after tax and net sales, and indicates the
efficiency of the management in manufacturing, selling, administrative and other activities of
the company.
Table No.23 depicts the net profit Ratio of Suraj Auto Products has decreased from
1.97(2023-22) to 1.89(2021-20) and rises to 1.97(2020-19) overall improvements in
efficiency and profitability

RET. ON CAPITAL EMPOLYED = PROFIT BEFORE INT, TAX DIVIDEND x 100

CAPITAL EMPLOYED
TABLE NO.22 VALUES FOR ROCE

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 22.30 23.70 23.87

INTERPRETATION:
This ratio represents overall performance of company. Rise in ROCE from 10.63(2010-11) to 23.87 (2021-20)
represents regular and higher earnings for the shareholders.

EARNING PER SHARE = NET PROFIT FOR EQUITY SHARE HOLDERS NO. OF EQUITY SHARES
OUTSTANDING
TABLE NO.21 VALUES OF EPS

YEARS 2023-22 2022-21 2021-20 2020-2019

RATIO 20.80 23.17 23.34 21.40

 EPS

INTERPRETATION: It represents market price of the shares. There is substantial decrease in price in the year 2022-21
as compared to other year but company managed the situation and market of share prices shows an upward trend in the
year 2021-20 and 2020-19.
4. ACTIVITY RATIOS

These ratios measure the efficiency and rapidity of the resources of the company, like stock, debtors, fixed assets etc.
These ratios are generally calculated on the basis of sales or cost of sales.

DEBTORS TURNOVER RATIO (DTR) = CREDIT SALES

AVERAGE DEBTORS
AVERAGE COLLECTION PERIOD (ACP) = DAYS (365)

TABLE NO.20 VALUES OF DTR AND ACP

YEARS 2023-22 2022-21 2021-20 2020-2019

DTR 9.52 8.93 9.42

ACP(In days) 38 41 39
INTERPRETATION: Decline in DTR indicates efficient collection of amounts from creditors and
average collection period varies from 35 to 40 days that means credit sales locked up maximum for 40
days.
FIXED ASSETS TURNOVER RATIO =NET FIXED ASSETS
TABLE NO 19 VALUES OF FATR

YEARS 2023-22 2021-22 2020-21 2019-20

RATIO 3.31 3.33 3.05 3.28

CHART NO.22 FIXED ASSETS TURNOVER RATIO

FIXED ASSETS TURNOVER RATIO (TIMES)

3.5
3 3.31 3.33

2.5 2 2.75 2.95 3.05

FIXED ASSETS TURNOVER
1.5 1
2010-11 2010-23 2010-22 RATIO (ITIMES)
0.5 0
2010-21 2010-20

INTERPRETATION: This ratio indicates that due to decrease in the amount of net sales &
increase in the amount of net fixed assets as compared to 2022 – 2021 ratio declines in year
Hence it states that fixed assets have not been fully utilized in the current year.

WORKING CAPITAL TURNOVER RATIO = NET SALES

WORKING CAPITAL

TABLE NO 17 VALUES OF WC TURNOVER RATIO

YEARS 2023-22 2021-22 2020-21 2019-20

RATIO 22.48 22.19 11.92 11.51

CHART NO.21 WC TURNOVER RATIO

WORKING CAPITAL TURNOVER

RATIO

21

22.5

22

23.5

WORKING CAPITAL TURNOVER

23

11.5

11

10.5

INTERPRETATION: Fall in working capital turnover in years from represents non

efficient use of working capital and late turnover of current assets.
5.1.3 COMPARATIVE STATEMENT ANALYSIS

TABLE NO.18 COMPARATIVE BALANCE SHEET OF MAR19 AND MAR20

Particulars 31-03-2023 31-03-2022 Absolute Percentage change

Rs.(Cr.) Rs.(Cr.) change

Rs.(Cr.)

EQUITY
&

LIABILITY

Share capital 43.83 43.83 - -

Reserves 823.96 767.18 56.78 7.40

and

Surplus

Non-Current

Liabilities

Term 332.77 364.27 -40.5 -11.11

Long

Borrowings

Deferred Tax 52.35 51.30 1.05 2.04

Liabilities (Net)

Other Long 7.81 7.02 0.79 11.25

Term
Liabilities

Long 23.39 19.20 4.19 21.82

Term

Provisions
Current

Liabilities

Short 522.18 520.52 -2.34 -0.45

Term

Borrowings

Trade Payables 222.22 172.23 41.1 23.87

Other Current 231.39 230.68 .71 .58

Liabilities

Short-term 9.52 7.19 2.33 32.40

Provisions

Total 2211.42 2068.32 73.1 3.53

ASSETS

Non-Current

Assets

Fixed Assets

Tangible assets 935.41 936.47 -1.06 -0.11

Capital work- 18.37 26.37 -8 -30.33

in progress

Non-Current 50.00 50.00 - -

Investments

Other Non 7.87 7.28 .59 8.10

Current Assets
 Current Assets

Inventories 469.87 389.52 80.35 20.62

Trade receivables 518.07 524.22 -6.20 -1.17

Cash and cash 27.26 26.35 0.99 3.45

Equivalents

Short-term 121.01 107.19 6.85 6.39

loans and
advances

Other current 0.56 .95 -0.39 -41.05

assets

Total 2211.42 2068.32 73.1 3.53

INTERPRETATION
• Reserves & surplus increased by 6.05% 30.76 % i.e., in Rupee 41.64 cores

• Long term borrowings and short term borrowings increased by 8.87 % and 37.20%
respectively
COMPARATIVE BALANCE SHEET OF MAR20 AND MAR21

Particulars 31-03-23 31-03-22 Absolute Percentage

change
Rs.(Cr.) Rs.(Cr.) change
EQUITY & Rs.(Cr.)
LIABILITY

Shareholder's 43.83 43.83 0.00 0.00

Funds

Share capital

Reserves and 767.18 730.07 +37.11 +5.08

Surplus

Non-Current 364.27 400.97 -36.7 -9.20

Liabilities

Long Term
Borrowings

Deferred Tax 51.30 48.34 +2.96 +6.23

Liabilities (Net)

Other Long Term 7.02 5.80 +1.22 +21.03

Liabilities

Long Term 19.20 17.10 +2.10 +23.28

Provisions

Current 520.52 550.21 -34.62 -6.29

Liabilities Short
Term
Borrowings

Trade Payables 172.23 120.83 +56.29 +48.59

Other Current 230.68 227.73 -17.05 -23.38

Liabilities
Short-term 0.71 20.87 -3.19 -20.21

Provisions

Total 2068.32 2070.72 +8.19 +0.39

Non-Current 936.47 911.86 +24.61 +2.7

Assets Fixed
Assets
Tangible assets

Capital work-in 26.37 53.70 -27.33 -50.89

progress

Non-Current 50.00 50.00 - -

Investments

Other Non 7.28 - - --

Current Asset

Current Assets

Inventories 389.52 433.23 -43.6 -10.07

Trade receivables 524.22 496.57 +27.65 +5.57

Cash and cash 26.35 24.68 +1.67 +6.78

Equivalents

Short-term loans 107.19 94.02 +23.66 +25.19

and advances

Other current 0.95 6.73 +1.51 +22.44

assets
 Total 2068.32 2070.72 +8.19 +0.39

INTERPRETATION:

• Reserves & surplus increased by 5.08% 30.76 % i.e., in Rupee 31.11 cores

• Long term borrowings decreased by 9.20 % i.e., in Rupees 36.7 cores.

• Short term borrowings decreased by 6.29% i.e., in Rupees 34.62 cores.

TABLE NO.20 COMPARATIVE BALANCE SHEET OF MAR21 AND MAR22

Particulars 31-03-2023 31-03-2022 Absolute Percentage

change
Rs.(Cr.) Rs.(Cr.) change
Rs.(Cr.)

EQUITY &
LIABILITY

Share capital 43.83 43.83 - -

Reserves and 730.07 688.43 +41.64 +6.05

Surplus

Non-
Current
Liabilities

Long Term 400.97 368.31 +32.66 +8.87

Borrowings

Deferred Tax 48.34 42.44 +5.90 +22.908

Liabilities
(Net)

Other Long 5.80 5.27 +0.53 +10.05

Term
Liabilities
Long Term 17.10 17.51 -0.41 -2.34
Provisions

Current

Liabilities

Short Term 550.21 401.11 +219.03 +37.20

Borrowings

Trade Payables 120.83 74.52 +41.31 +55.43

Other Current 227.73 223.04 +4.69 +3.53

Liabilities

Short-term 20.87 40.84 -19.97 -48.89

Provisions

Total 2070.72 1820.30 +255.42 +21.07

ASSETS

Non-
Current
Assets

Fixed Assets

Tangible assets 911.86 853.23 +58.63 +6.87

Capital work- 53.70 26.00 +27.7 +106.53

in progress

Non- 50.00 50.06 -0.06 -0.11

Current
Investment
s

Current Assets
 Inventories 433.23 380.31 +52.81 +22.89

Trade 496.57 410.34 +86.23 +21.01

receivables

Cash and cash 24.68 18.65 +6.03 +32.33

Equivalents

Short-term 94.02 70.28 +23.74 +33.78

loans and
advances

Other current 6.73 6.43 +0.3 +4.66

assets

Total 2070.72 18,20.30 +255.42 +21.07

INTERPRETATION
• Reserves & surplus increased by 6.05% 30.76 % i.e., in Rupee 41.64 cores

• Long term borrowings and short term borrowings increased by 8.87 % and 37.20%
respectively.
• Long term Provisions and short term provisions decreased by 2.34% and 48.89%
respectively.
• Tangible assets increased by 6.87 % i.e., in Rupee 58.36 cores.

• Inventory and Trade receivable increased by 22.89 % and 21.01% as compare to the
preceding year.

5.1.4 INTER FIRM ANALYSIS

TABLE NO.21 COMPANY’S MARKET CAPITALIZATION AND SALES

Company MARKET CAP Rs.(Cr.) SALES

APL Apollo 1193.03 622.34

Jindal Saw 1977.93 1908.20

Welspun corp. 2655.97 731.23

Suraj Auto Products 585.20 2395.28

Prakash Steelag 175.88 208.50

TABLE NO. 22 EPS, ROE & ROCE OF SURAJ AUTO PRODUCTSAND PEERS

COMPANY EPS ROE ROCE

APL Apollo 1.61 22.50 22.83

Jindal Saw 3.26 0.70 5.82

Suraj Auto Products 2.69 9.96 10.65

Welspun Corp -0.22 0.46 6.83

Prakash 0.74 7.44 22.22

INTERPRETATION:

Overall performance of Suraj Auto Products is at par to the peer average in terms of EPS,
ROE AND ROCE. As Suraj Auto Products has second best position in the context of EPS
ROE & ROCE followed by Jindal Saw, Welspun Corp, and Prakash. APL Apollo is
immediate competitive rival of company.

5.1.5 CASH FLOW STATEMENT ANALYSIS

TABLE NO 23 CASH FLOW STATEMENTS FOR MAR19 AND MAR20

PARTICULARS As at 31.03.23 As at 31.03.22

Rs.(Cr.) Rs.(Cr.) Rs.(Cr.) Rs(Cr.)

A. Cash flow from operating

activity

Net profit before tax 85.01 61.77

Adjustment for:

Depreciation 60.66 56.04

Interest income -1.17 -0.94

Finance cost 96.43 109.00

Profit/loss on sale of fixed assets -0.48 -2.35

CSR Expenses 1.34 1.30

Other non-operating income -.0257 206.523 -0.0077 193.05

Operating profit before working 241.53 224.82

capital changes

Adjustment for:

Trade and other receivable -5.17 -36.50

 Inventories -80.35 43.60

Trade payable 67.22 46.59 53.69

Cash generated from operations 223.38 278.51

Income tax paid -17.63 -10.52

CSR Expenses -1.34 -1.30 -11.82

Net cash from operating activity 204.39 266.69

B. Cash flow from investing activity

Sale/purchase of investment - -

Interest received 1.17 0.94

Purchase of fixed assets -53.37 -66.74

Capital work in progress - -

Sale/adjustment of fixed assets 2.26 4.07

Other non-operating income .025 0.008

Net cash used in investing activity -49.91 -61.73

C. Cash flow from financing activity

Increase/decrease long term -49.52 -54.40

borrowing

Increase/decrease short term -2.34 -34.62

borrowing

Issue/redemption of capital - -

Finance cost -96.43 -109.0

Dividend paid -5.27 -5.27

 Net cash inflow/outflow from -203.57 -
financing activity 203.29

Net increase/decrease in cash 0.91 1.67

and cash equivalent

Opening cash and cash equivalent 26.35 24.68

Closing cash and cash equivalent 27.26 26.35

INTRPRETATION:

➢ Operating profit before working capital changes has been increased from 224.82 cores to
241.53 cores in year 2020-2019 as compare to the 2021-2020.

➢ There is reduction in cash used in investing activity from 49.91 core to 61.73 core due to
rise in interest income and decrease in non - operating in sales of fixed assets.

➢ there is fall in cash outflow from financing activity from 203.29 cores to 203.57 cores.

TABLE NO 24 CASH FLOW STATEMENTFOR MAR21 AND MAR22

PARTICULARS As at 31.03.2023 As at 31.03.22

Rs.(Cr.) Rs.(Cr.) Rs.(Cr.) Rs.(Cr.)

A. Cash flow from

operating activity

Net profit before tax 67.23 72.08

Adjustment for:

Depreciation 55.64 56.51

Interest income -1.23 -0.70

Finance cost 121.47 109.67

Profit/loss on sale of fixed assets -1.38 0.50

CSR Expenses

Other non-operating income -0.18 197.43 -0.95 195.88

Operating profit before working capital changes 234.55 237.96

Adjustment for:

Trade and other receivable - -95.11

104.08

Inventories -52.81 -2.82

Trade payable 25.64 - 50.23 47.70

221.25

Cash generated from operations 103.3 190.26

Income tax paid -21.07 -20.36

CSR Expenses -20.36

Net cash from operating activity 89.23 174.90

B. Cash flow from investing activity

Sale/purchase of investment 0.6 0.23

Interest received 1.23 0.70

Purchase of fixed assets - -91.34
239.83

Capital work in progress -27.72 -11.88

Sale/adjustment of fixed assets 10.35 1.86

Other non-operating income 0.17 0.95

Net cash used in investing activity - -76.68

220.84

C. Cash flow from

financing activity

Increase/decrease long 33.2 22.55

term borrowing

Increase/decrease short 219.03 11.05

term borrowing

Issue/redemption of - -
capital

Finance cost -121.47 -109.6

Dividend paid -5.23 -20.28

Net cash 62.64 -100.36

inflow/outflow from
financing activity
 Net increase/decrease 6.03 -2.22
in cash and cash
equivalent

Opening cash and 18.65 20.79

cash equivalent

Closing cash and cash 24.68 18.66

equivalent

INTERPRETATION:

➢ Operating profit before working capital changes has been decreased from 237.96 to
234.55 in year 2022-2021 as compare to the 2023-2022.

➢ there is rise in cash used in investing activity from 76.68 to 220.84 due to rise in interest
income and decrease in non - operating in sales of fixed assets.

➢ There is fall in cash outflow from financing activity from 100.36 to 62.64.
 CHAPTER 6
OUTCOMES

6.1 OUTCOMES

Findings of the project are summed up as follows:

• There is no change in the share capital of the firm. It remains the same for the year
indicating that company does not want to decentralize the authority among the new
shareholders.

• Profit after tax of company is undergoing through constant changes. As it decreased

approximately by the 20 core in Mar2023 as compare to Mar11 which rises again in the
year Rs.18 core and becomes stable at approximately at Rs. 55 core in the yearMar21 and
Mar 20.
• Company has comparatively strong and stable liquidity position indicating that the
company can meet for its short term obligations at time, helps in establishment of good
market image. Also company practice of Trade on equity is not benefiting the company as
company EPS and equity dividend of the company is falling simultaneously.
• Overall cash balance maintained by the company on and average basis lies between Rs.18
Core to Rs. 23 core.

• Rise in net worth of the company from years indicating satisfactory profitability of the
company.

• And company s facing direct competition from APL Apollo, and Welspun Corporation
as well. It is suggested that company must adopt a for a stable dividend policy as fall in
dividend rate is directly impacting earning per share and market value of shares.
 CONCLUSION
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 BIBLIOGRAPHY
www.google.com
www.Indiamart.com
www.Indiatimes.com
www.surajautoproducts.com