SESSION: 2018-20

A SUMMER INTERNSHIP
PROJECT REPORT

A STUDY ON FINANCIAL PERFORMANCE

ANALYSIS OF THE SUNDARAM FINANCE LTD
FOR THE FULFILMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted To
MR. MANASH RANJAN PATI

Submitted By

RASHMITA MALINI ROUT

Roll No.- 1906381037

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 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Mr.

MANASH RANJAN PATI who gave me the golden opportunity to do this
wonderful project on the topic A Study on Financial Performance of the
Sundara Finance Ltd., which also helped me in doing a lot of research and I
came to know about so many new things. I am really thankful to Him. Secondly
I would also like to thank my parents and friends and others who helped me a
lot in finishing this project within the limited time.
I am making this project not only for marks but to also increase my knowledge

1
 BONAFIDE CERTIFICATE
This is to certify that the project report titled “Name of the project report”
submitted by RASHMITA MALINI ROUT Roll. No- 1906381037 in partial
fulfillment of the requirements of the degree of Master in Business
Administration for the academic session 2019-2021 is the original work of the
above candidate.

Mr. Manash Ranjan Pati

Guide

2
 DECLARATION
I , RASHMITA MALINI ROUT, ROLL NO- 1906381037 final year
students of MBA of Gandhi Business School, Bhubaneswar would like to
declare that the project entitled “A STUDY ON FINANCIAL
PERFORMANCE ANALYSIS OF THE SUNDARAM FINANCE LTD ” ,
is a bonafide work done by the student in partial fulfillment of Degree of
Master in Business Administration affiliated to Utkal Univeristy. The research
submitted is my original work and true to the best of my Knowledge and belief.

Place – Bhubaneswar Rashmita Malini Rout

Date –

3
 CONTENT
SL NO TITLES PAGE NO

1 INTRODUCTION 5
2 OBJECTIVES 6
 PRIMARY OBJECTIVE
 SECONDARY OBJECTIVES
3 CHAPTER -1 7-14
 1.1 INDUSTRIAL PROFILE
 1.2 COMPANY PROFILE
4 CHAPTER-2 15-17
NEED & SCOPE OF STUDY
 2.1 NEED FOR STUDY
 2.2 SCOPE OF STUDY
5 CHAPTER-3 18-23
RESEARCH METHODLOGY
 3.1 RESEARCH DESIGN
 3.2TYPE OF RESEARCH
 3.3 SOURCE OF DATA
 3.4 TOOLS FOR FINDING OUT
 3.5 RATIO ANALYSIS
6 CHAPTER-4 24-47
DATA ANALYSIS & INTERPRETATION
 4.1 RATIO ANALYSIS
 4.2 COMPARATIVE INCOME
STATEMENT OF SUNDARAM
FINANCE LIMITED FOR THE YEAR
ENDED 31.03.2017
 4.3 COMMON SIZE INCOME
STATEMENT OF SUNDARAM
FINANCE LIMITEDFOR THE YEAR
ENDED 31-03-2016
 4.4 CASH FLOW STATEMENT OF
SUNDARAM FINANCE LIMITED FOR
THE YEAR ENDED 31.3.2017
 4.5 REGRESSION ANALYSIS FOR
 SALES
7 CHAPTER-5 48-56

CONCULUSION & SUGGESTION

 5 SUMMERY & CONCLUSION
 5.1 FINDING
 5.2 SUGGESTION
 5.3 CONCULSION
 5.4 REFERENCES

4
 INTRODUCTION

The financial statement provides the basic data for financial performance analysis. The
financial statements provide a summarized view of the financial position and operations of a
firm. Financial analysis (also referred to as financial statement analysis or accounting
analysis) refers to an assessment of the viability, stability and profitability of a business. The
analyst first identifies the information relevant to the decision under consideration from the
total information contained in the financial statements. Therefore, much can be learnt about a
firm from a careful examination of its financial statements as invaluable documents and
performance reports.

The analysis of financial statements isan important aid to financial analysis. They provide
information on how the firm has performed in the past and what is its current financial
position. Financial analysis is the process of identifying the financial strengths and weakness
of the firm from the available accounting data and financial statements. The analysis is done
by establishing relationship between the different items of financial statements.

The focus of financial analysis is on key figures in the financial statements and the
significant relationship that exists between them. The analysis of financial statements
is a process of evaluating relationship between component parts of financial
statements to obtain a better understanding of the firm‟s position and performance.

The first task of financial analyst is to select the information relevant to the decision under
consideration from the total information contained in the financial statement. The second step
involved in financial analysis is to arrange the information in a way to highlight significant
relationships. The final step is interpretation and drawing of inferences and conclusions. In
brief, financial analysis is the process of selection, relation, and evaluation.

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 OBJECTIVES
PRIMARY OBJECTIVE:

o To study the financial performance analysis of Sundaram Finance Limited,

Chennai.

SECONDARY OBJECTIVES:

o To compare and analyze the financial statements for the past three financial
years (2017,2018 and 2019)

o To know the profitability, liquidity and solvency position of Sundaram finance

limited.

o To compare and interpret financial statements of the Sundaram Finance

Limited with comparative and common-size statement analysis.

o To forecast the annual growth rate of income of the company with the help of
regression analysis.

o To provide suggestions for improving the overall finance performance of the

company.

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 CHAPTER -1

INDUSTRIAL PROFILE

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1.1 INDUSTRIAL PROFILE

1.1.1NON-BANKING FINANCIAL COMPANIES (NBFCS)

Non-bank financial companies (NBFCs) are financial institutions that provide

banking services without meeting the legal definition of a bank, i.e. one that does not hold a
banking license. Operations are, regardless of this, still exercised under bank regulation.

According to Reserve Bank Amendment of Act 1997, A Non-Banding Financial Company

(NBFCs) means,

 A financial institution which is a company

 A non-banking institution which is a company which has its principal business
receiving of deposits under any scheme of arrangement or in any other manner or
lending in any manner

The non-banking financial sector in India has tremendous growth in recent years. NBFCs‟
attracted a large number of small investors since the rate of return on deposits with them was
relatively high. NBFCs are quite flexible sectors like equipment leasing, hire-purchase,
housing finance, consumer finance and so on, where gaps between the demand and supply of
funds have been high. The growth in number of NBFCs was facilitated by the case of entry,
limited fixed assets and absence of any need to hold inventories.

1.1.2 CURRENT SCENARIO OF NBFCS

The base of today‟s feebleness of Non-Banking Finance Companies can perhaps be

traced back to early nineties. The buoyant capital market, in the first flush liberalization
welcomed every issue with huge premiums and massive over subscription. This was the
signal for several unscrupulous promoters to set up high profile finance companies and raise
money from both the capital markets and through public deposits.

The Reserve Bank of India for its past, progressively relaxed its regulatory hold over
the industry and made it possible for the companies with little financial strength and even
fewer scrupulous to raise large amounts of money from an unsuspecting public. Hardly
anyone knew or questioned how these moneys were deployed. Soon afterward, the stock
market scam broke claiming its first victim from the non-banking finance companies sector.

8
With the capital market in disarray, it was no longer possible for continue of fund flow, from
investors who had burnt their fingers in the stock markets. It was thus convenient fresh
deposits. In July1996, the RBI, perhaps the most sweeping changes in the non-banking
finance companies regulation, virtually pulled out all the stock, enabling companies to raise
deposits with minimum number and more significantly, removed the ceiling on interest rate.

At the point, when the government was faced with grim situation and responding to
the plea of the industry, the government set up a special task force headed by Mr. C.M.
Vasudev to recommend the steps for the orderly growth of finance companies while keeping
investor protection as its key priority. The committee in its final report recognized the
important role played by these companies and warned against the tendencies to tar all the
companies with the same brush. The silent recommendations of the Vasudev committee were

 Review of minimum capital requirement of Rs. 25lakhs for registration purposes

 Higher capital adequacy ratio for non-banking finance companies seeking public
deposits without credit rating
 Preview of prudential norms with ceiling for exposure to real estate and capital
markets
 Differential ceiling on public deposit acceptance for companies with and without
credit ratings
 A separate instrument to regulate and supervise non-banking finance companies.

1.1.3 ADVANTAGE OF NBFCs

1. Lower transaction costs

2. Higher rate of interest on deposits compared to banks
3. Quick financial decision caking
4. Customer orientation
5. Prompt provision of service

1.1.4 RBI GUIDELINES FOR NBFCs

The nineties witnessed a dramatic increase in the number of NBFCs and it was thought
necessary to have a regulatory framework for NBFCs. RBI came out with set of guidelines
for NBFCs specifically aimed at protecting the depositors.

9
 To encourage the NBFCs that is running on sound business principals, on July 24th
1996, NBFCs were divided into two classes,

i. Equipment leasing and hire purchase (finance company)

ii. Loan and investment companies

1.1.5 CATEGORIES OF NBFCs

i. Loan Companies
ii. Investment Companies
iii. Hire Purchase Companies
iv. Equipment Leasing Companies
v. Mutual Benefits Finance Companies
vi. Housing Finance Companies

Equipment leasing company – Any company, which is a financial institution, carrying on its
principal business.The activities of leasing of equipment of the financing of such activity.

1. Hire purchase finance company – A company, which is a financial institution,

carrying on its principal business, hire purchase transaction.

2. Investment Company – A company, which deals with acquisition of securities.

3. Loan Company – A company, which is a financial institution and carries on its

principal business of providing finance by any activities other than its own.

4. Mutual benefit finance company – A company, which is a financial institution. This is

notified by the central government under section 620 (a) of The Companies Act 1956.

1.2 COMPANY PROFILE

Sundaram Finance Limited was incorporated in 1954 and has grown into one of the
most trusted financial services group in India and a part of TV SundaramIyengar and Sons
group of companies, one of India‟s largest industrial conglomerates and diversified industrial
conglomerate with principal base in Chennai and Madurai. Almost all the companies in the
group are privately held. The company was started with a paid-up capital of Rs.2Lakhs
and later went public in 1972.

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1.2.1FOUNDER OF THE COMPANY

The Company was founded by Sri. T. S. Santhanam. He has a rich experience in the
automobile and road transport sector for nearly six decades. He was the founder, Director
and First managing director of Sundaram Finance Limited and has served on various
committees constituted by the Central Government and Reserve Bank of India on various
aspects relating to growth and development of the Road Transport and Non-Banking
Financial Companies.

The company has been rated as „MAA‟ by the ICRA signifying the highest number of
deposits. The Company mobilizes its funds from driver sources at competitive rates thus
achieving a reduction in overall cost of funds. The company gets its funds from the main
sources namely,

 Deposits
 Bank/Industrial Finance
 Debentures
 Commercial Papers

1.2.2THE MAIN ACTIVITIES OF SUNDARAM FINANCE LIMITED

 Deposits
 Hire Purchasing
 Leasing

1.2.3FIVE PILLARS OF SUNDARAM FINANCE LIMITED

1. Faith
2. Depositor‟s confidence
3. Institutional trust
4. Investor safety
5. Employee loyalty

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1.2.4CORPORATE PHILOSOPHY OF THE COMPANY

 Truth and fairness guide the management of finance

 Customer satisfaction through excellent service and reliability
 Prudence and conservation in finance operations
 Truth, honesty and efficiency in all dealings
 Professional management with high standards of integrity
 Full compliance with law and regulations.

1.2.5OBJECTIVES OF THE COMPANY

Sundaram Finance was initiated with the sole objective of financing commercial
vehicles and passenger cars. Within a span of 55 years they have spread their wings to every
exposable area in the Non-banking finance sector. Sundaram Finance – Where Truth,
Fairness and Transparency guide the management of finance.

1.2.6VALUES

A set of values have governed their growth over the years. Among them are
transparent in their business practices, dedicated customer service fair, efficient and safe
financial policies.

1.2.7STRENGTH

 Support of the group companies.

 Involvement of the directors on major policy matters.
 High employee morale.
 Good initial system for operation and control.
 Efficiency and sophisticated software system for decision support system.
 Investor‟s trust and faith in the company.
 Easy financing schemes for all cars – new and second hand cars.
 Simple documentation, quick processing and speedy approval.
 Customized schemes, personalized service.
 Direct dealing between customer and company.
 No hidden costs.

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  Tailor – made products to suit individual requirements.

1.2.8SUBSIDARIES / GROUPS

 Sundaram Finance
 Sundaram BNP Paribas Asset Management
 Sundaram BNP Paribas Home Finance Limited
 Royal Sundaram Alliance Insurance
 Sundaram InfoTech Solutions
 Sundaram Business Services
 Sundaram Finance Distribution Limited
 Infrieght Logistics Solutions Limited

1.2.9AWARDS RECEIVED

 „Certificate of Commendation‟ award by the Government of India under the scheme

of “Good Tax Payers”.

 “Second Best Tax Payer” in the category of Private Sector Company for Assessment
Year 1994-95 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.

 „Rolling Trophy‟ by Rotary Club of Madras South West for Best Employer-
Employee Relationship for the year 1995-96.

 “Best Tax Payer” in the category of Private Sector Company for Assessment Year
1995-96 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.

 “Automan Award” to Shri T S Santhanam, Chairman, from Motor India in 1998.

 “Pioneering Service Award” to Shri T S Santhanam Chairman, from Chennai Good

Transport Association.

 “SarigeRatna Award” to Shri T S Santhanam, Chairman, from the Bangalore City

Lorry Transporting Agents‟ Association (Regd).

13
 “Most Valued Customer Award” to Shri T S Santhanam Chairman, from the State
Bank of India.

 “The Best Financier of the New Millennium 2000” to Shri. G K Raman, Managing
Director, from the All India Motor Transport Congress.

14
 CHAPTER -2

NEED & SCOPE OF THE

STUDY

15
NEED AND SCOPE OF THE STUDY

2.1 NEED FOR THE STUDY

The Financial Statements are mirror which reflects the financial position and strengths
or weakness of the concern. The Non- Banking Financial Company has been witnessed
intense competition from domestic banks and international banks. Every business needs to
view the financial performance analysis.

The study on effectiveness of operational and financial performance of Sundaram

finance limited is conducted to measure the overall performance of company. The financial
analysis strengths the firms to make their best use, and to be able to spot out financial
weakness of the firm to state suitable corrective actions.

This study aims at analyzing the overall financial performance of the company by
using various financial tools like Comparative Analysis, common size statement analysis,
Ratio Analysis, and Cash Flow Analysis.

16
2.2SCOPE OF THE STUDY

The study is based on the accounting information of the SUNDARAM FINANCE

LIMITED, CHENNAI. The study covers the period of 2017-2019 for analyzing the financial
statement such as income statements and balance sheet.

The scope of the study involves the various factors that affect the financial efficiency
of the company. To increase the profit and sales growth of the company.This study finds out
the operational efficiency of the organization and allocation of resources to improve the
efficiency of the organization.

The data of the past three years are taken into account for the study. The performance
is compared within those periods. This study finds out the areas where Sundaram Finance Ltd
can improve to increase the efficiency of its assets and funds employed.

17
 CHAPTER – 3

RESEARCH
METHODOLOGY

18
 3. RESEARCH METHODOLOGY

Research can be defined as “A Scientific and Systemic Search for pertinent information on a
specific topic”. Therefore, research could be understood as an organized activity with specific
objectives on a problem or issues supported by compilation of related data and facts,
involving application of relevant tools of analysis and deriving logically on originality.

3.1 RESEARCH DESIGN

Research Design is the arrangement of condition for collection and analysis of data in
manner that aims to combine relevance to the research purpose with the economy in
procedure. Research Design is important primarily because of the increased complexity in the
market as well as marketing approaches available to the researchers. A research design
specifies the methods and procedures for conducting a particular study.

3.2 TYPE OF RESEARCH

ANALYTICAL RESEARCH

In this type of research has to use facts or information already available, and analyze
these to make a critical evaluation of the material. The researcher depends on existing data
for his research work. The analysis revolves round the material collected or available.

3.3SOURCE OF DATA

 SECONDARY DATA

Secondary Data refers to the information or facts already collected such data are collected
with the objectives of understanding the past status of any variable or the data collected and
reported by some source is accessed and used for the objective of a study. Normally in
research, the scholars collect published data, journals, annual reports and websites.

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3.4 TOOLS USED FOR ANALYSIS

(1) Ratio Analysis

(2) Comparative Statement Analysis

(3) Common-size Statement Analysis

(4) Cash Flow Statement Analysis

(5) Regression Analysis

3.4.1 RATIO ANALYSIS

A ratio is the process of determining and presenting the relationship of items and groups of
items in the financial statements. The ratios can be classified into the following types:

3.4.1.1 PROFITABILITY RATIO

Profitability Ratio measured as a ability to make maximum profit from optimum utilization of
resources by a business concern is termed as profitability.

o GROSS PROFIT RATIO

This ratio is also known as Gross Margin or Trading Margin Ratio. Gross Profit Ratio
includes the difference between sales and direct costs.

Gross Profit Ratio = ( Gross Profit / Net Sales ) * 100

o NET PROFIT RATIO

It measures of management efficiency in operating the business successfully from the

owner‟s point of view. Higher the ratio better is the operational efficiency of business
concern.

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 Net Profit Ratio = (Net Profit After Tax / Net Sales ) * 100

o RETURN ON EQUITY OR RETURN ON NET WORTH

This ratio signifies the return on equity shareholders funds. The profit considered for
computing the ratio is taken after payment of preference dividend.

Return on Equity = ( Net Profit After Interest And Tax / Shareholder’s funds ) *
100

4.4.1.2ACTIVITY RATIO OR TURNOVER RATIOS:

Activity ratios highlight the operational efficiency of the business concern. The term
operational efficiency refers to effective, profitable and rational use of resources available to
the concern.

o WORKING CAPITAL TURNOVER RATIO

Working capital ratio measures the effective utilization of working capital. It also measures
the smooth running of business. The ratio establishes relationship between cost of sales and
working capital.

Working Capital Turnover Ratio = (Sales / Net Working Capital)

o CAPITAL TURNOVER RATIO

Managerial efficiency is also calculated by establishing the relationship between cost of sales
or sales with the amount of capital invested in the business.

Capital Turnover Ratio = (Sales / Capital Employed)

o FIXED ASSET TURNOVER RATIO

This ratio determines efficiency of utilization of fixed assets and profitability of a business
concern.

21
 Fixed Asset Turnover Ratio = (Sales / Net Fixed asset)

3.4.3.1 SOLVENCY OR FINANCIAL RATIOS

Solvency or Financial Ratios include all ratios which express financial position of the
concern. The term financial position generally refers to short-tem and long-term solvency of
the business concern, including safety of different interested parties.

o CURRENT RATIO

In order to measure the short-term liquidity or solvency of a concern, comparison of current

assets and current liabilities is inevitable. Current ratio indicates the ability of a concern to
meet its current obligations as and when they are due for payment.

Current Ratio = (Current asset / Current liabilities)

o DEBT EQUITY RATIO

The debt equity ratio is determined to ascertain the soundness of the long term financial
policies of the company and also to measures the relatives‟ proposition of outsider‟s funds
and shareholdersfunds investments in the company.

Debt-Equity Ratio = ( Total Long-term Debt / Shareholder’s Funds )

o DEBT TO TOTAL FUNDS RATIO

This ratio gives same indication as the debt equity ratio as this is a variation of debt equity
ratio. This ratio is the relationship between long term debts and total long term funds.

Debt to Total Funds Ratio= ( Long-term Debt / Total Funds)

o EQUITY TO TOTAL FUNDS

Equity to total funds explains the relationship between equity and total funds.

22
 Equity to Total Funds = ( Equity / Total Funds)

3.4.2 COMPARATIVE STATEMENT ANALYSIS

Comparative balance sheet as on two or more different dates can be used for
comparing assets and liabilities and findings out any increase or decrease in the items.Thus
while in single balance sheet the emphasis is on present position, it is on change in the
comparative balance sheet.

3.4.3 COMMON SIZE STATEMENT ANALYSIS

Common size statements indicate the relationship of various items with some
common items. In the income statements, the sales figure is taken as basis and all other
figures are expressed as percentage of sales.Similarly, in the balance sheet the total assets and
liabilities is taken as base and all other figures are expressed as percentage of this total.

3.4.4CASH FLOW STATEMENT

Cash flow includes cash inflows and out flows - cash receipts and cash payments
during a period. A cash flow statement is a statement which portrays the changes in the
position between two accounting period. Cash flow analysis can reveal the causes for even
highly profitable firms experiencing acute cash shortages.

3.4.5REGRESSION ANALYSIS

A fundamental and versatile research technique that seeks to explain an outcome

variable in terms of multiple predictor variables. This analysis reveals the nature and strength
of the relationship between each predictor variable and the outcome, independent of the
influence from all other predictors.

Regression Equation Y on X is given as:

Y = a + bX
Equations to find constants „a‟ and „b‟ are given as:
∑Y = Na + b∑X
∑XY = a∑X + b

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 CHAPTER - 4
DATA ANALYSIS AND
INTERPRETATION

24
4DATA ANALYSIS AND INTERPRETATION

4.1 RATIO ANALYSIS

4.1.1PROFITABILITY RATIOS

4.1.1.1 Gross Profit Ratio:

This ratio is also known as Gross Margin or Trading Margin Ratio. Gross Profit Ratio
includes the difference between sales and direct costs.

Gross Profit
Gross Profit Ratio=X100
Net Sales

Table No 4.1.1 GROSS PROFIT RATIO

Years Gross Profit Net sales Ratio

(Rs.) (Rs.) (In %)
2016-2017 30289.71 90176.44 33.58
2017-2018 21971.03 108277.62 20.29
2018-2019 32347.63 118189.37 27.37

Chart No 4.1.1 GROSS PROFIT RATIO

Ratio In %
40
35
30
25
20
15 Ratio In %
10
5
0
2016-17 2017-18 2018-19

25
INFERENCES:

The Gross Profit for the financial year 2016-2017was recorded as per the ratio is
33.58%,where as the years between 2017-20018went through a change in the ratio of 20.29%
and the companies profit went upward in 2018-2019 with the ratio of 27.37%. Thus, it is
showing the steady growth in the company profile.

4.1.1.2 NET PROFIT RATIO

It measures of management efficiency in operating the business successfully from the

owner‟s point of view. It indicates the return on shareholder‟s investment. Higher the ratio
better is the operational efficiency of business concern.

Net Profit after Tax

Net Profit Ratio = X 100
Net Sales

Table No 4.1.2NET PROFIT RATIO

Years Net Profit Net sales Ratio

(Rs.) (Rs.) (In %)
2016-2017 21254.24 90176.44 23.56
2017-2018 15073.14 108277.62 13.92
2018-2019 22674.86 118189.37 19.18

26
 Chart No 4.1.2NET PROFIT RATIO

Ratio In %
25

20

15

10 Ratio In %

0
2016-17 2017-18 2018-19

INFERENCES:

The Net Profit Ratio depicts that the company had a good profit in 2016-2017 where it
had a good yield profit. Comparing to the year 2017-2018is 13.92%, the sales of the company
have a steady attitude and increase upwards to 19.18%. This indicates that there is an
improvement in the operational efficient of the business and it leads to the increase in the
profitability of the firm.
4.1.1.3 RETURN ON EQUITY OR RETURN ON NET WORTH

This ratio signifies the return on equity shareholders funds. The profit considered for
computing the ratio is taken after payment of preference dividend.

Net profit after interest and tax

Return on Equity = X 100
Shareholder fund

27
 Table No 4.1.3RETURN ON EQUITY

Years Net profit after Shareholder Ratio

interest and tax Fund (Rs.) (In %)
(Rs.)
2016-2017 21254.24 231280.81 9.18
2017-2018 15073.14 268538.97 5.61
2018-2019 22674.86 333318.07 6.80

Chart No 4.1.3RETURN ON EQUITY

Ratio In %
25
20
15
10 Ratio In %
5
0
2016-17 2017-18 2018-19

INFERENCES:

Return on shareholder fund determines the profitability from the shareholders point of
view. From the above, it shows that in the year 2017-2018, the company shows 5.61% of
ratio and it has risen to 6.80%. This is a clear indication of overall operation is efficient.

28
4.1.2 TURNOVER RATIO

4.1.2.1WORKING CAPITAL TURNOVER RATIO

Working capital ratio measures the effective utilization of working capital. It also
measures the smooth running of business. The ratio establishes relationship between cost of
sales and working capital.
Sales
Working Capital Turnover Ratio =
NetWorking Capital

Table No 4.1.4WORKING CAPITAL TURNOVER RATIO

Years Sales Net Working Ratio

(Rs.) Capital (In Times)
(Rs.)
2016-2017 90176.44 645733.44 0.13
2017-2018 108277.62 666319.18 0.16
2018-2019 118189.37 898497.54 0.13

Chart No 4.1.4WORKING CAPITAL TURNOVER RATIO

Ratio In Times
0.2

0.15

0.1
Ratio In %
0.05

0
2016-17 2017-18 2018-19

INFERENCES:

A higher ratio is the indication of lower investment of working capital and more
profit. In 2016-2017, the sales of the company are low at 0.13 times but in the year 2017-
2018, it gone upward of sales to 0.16 times.

29
4.1.2.2CAPITAL TURNOVER RATIO

Managerial efficiency is also calculated by establishing the relationship between cost

of sales or sales with the amount of capital invested in the business.

Sales
Capital Turnover Ratio =
Capital Employed

Table No 4.1.5CAPITAL TURNOVER RATIO

Years Net Sales Capital Employed Ratio

(Rs.) (Rs.) (In Times)
2016-2017 90176.44 536009.27 0.16
2017-2018 108277.62 533288.26 0.20
2018-2019 118189.37 720052.92 0.17

Chart No 4.1.5 CAPITAL TURNOVER RATIO

Ratio In Times
0.25

0.2

0.15

Ratio In %
0.1

0.05

0
2016-17 2017-18 2018-19

INFERENCES:
In the year 2016-2017, the sales‟ comparing to 2017-2018 it is increased to 0.20 times
and it shows that efficient methods are adopted to use the capital employed. In 2009-2010,

30
which compares to the year 2018-2019 it indicates higher ratio of 0.17times. The capital of
the company has utilized efficiently comparing to 2016-2017.

4.1.2.3 FIXED ASSET TURNOVER RATIO

This ratio determines efficiency of utilization of fixed assets and profitability of a

business concern.
Sales
Fixed Asset Turnover Ratio =
Net Fixed asset

Table No4 .1.6 FIXED ASSET TURNOVER RATIO

Years Sales Fixed Asset Ratio

(Rs.) (Rs.) (In Times)

2016-2017 90176.44 17264.30 5.22

2017-2018 108277.62 20241.05 5.35
2018-2019 118189.37 23237.80 5.09

Chart No 4.1.6FIXED ASSET TURNOVER RATIO

Ratio In Times
5.4
5.35
5.3
5.25
5.2
5.15 Ratio In %
5.1
5.05
5
4.95
2016-17 2017-18 2018-19

31
INFERENCES:

Higher the ratio is more than the efficiency in utilization of Fixed Assets. Lower ratio
indicates the under utilization of fixed assets. From the above table it indicates in the year
2018-2019, the sales have been increased comparing to the next year 2016-2017. And it‟s
gradually declining over the next year 2018-2019 for 5.09 times.
4.1.3 SOLVENCY OR FINANCIAL RATIOS:

4.1.3.1CURRENT RATIO
In order to measure the short-term liquidity or solvency of a concern, comparison of
current assets and current liabilities is inevitable. Current ratio indicates the ability of a
concern to meet its current obligations as and when they are due for payment.

Current asset
Current Ratio =
Current liabilities

Table No 4.1.7CURRENT RATIO

Years Current Asset Current Liabilities Ratio
(Rs.) (Rs.) (In Times)
2016-2017 56187.53 53034.57 1.06
2017-2018 68876.04 50360.94 1.36
2018-2019 166489.36 55084.13 3.02

Chart No 5.1.7CURRENT RATIO

Ratio In Times
3.5

2.5

1.5 Ratio In %

0.5

0
2016-17 2017-18 2018-19

32
INFERENCES:
A high current ratio is an assurance that the firm will have adequate funds to
pays current liabilities and other payment. During the year 2018-2019, the current ratio is
3.02times and it is m-ore when compared with previous year 2018-2019 is 1.36 times.

4.1.3.2 DEBT EQUITY RATIO

The debt equity ratio is determined to ascertain the soundness of the long term
financial policies of the company and also to measures the relatives‟ proposition of outsider‟s
funds and shareholders funds investments in the company.

Total Long-term debt

Debt Equity Ratio =
Shareholders Funds

Table No 4.1.8DEBT EQUITY RATIO

Years Long term debts Shareholders funds Ratio

(Rs.) (Rs.) (In Times)

2016-2017 431716.93 104292.34 4.13

2017-2018 418021.26 115267 3.62
2018-2019 588417.27 131635.65 4.47

Chart No 4.1.8DEBT EQUITY RATIO

33
 Ratio In Times
5
4.5
4
3.5
3
2.5
Ratio In Time
2
1.5
1
0.5
0
2016-17 2017-18 2018-19

INFERENCES:

From the above table, during the year 2017-2018 the debt equity ratio is 4.13 times and
it is decreased to 3.62 times then it shows the uptrend from the year2018-2019 as 4.47 times.
Suggest that the debt from the company has increased over the years with increase in
shareholder funds as well.

4.1.3.3 DEBT TO TOTAL FUNDS RATIO

This ratio gives same indication as the debt equity ratio as this is a variation of debt
equity ratio. This ratio is also known as solvency ratio. This ratio is the relationship between
long term debts and total long term funds.

Long Term Debts

Debt to Total Funds Ratio =
Total Funds

Table No4 .1.9 DEBT TO TOTAL FUNDS RATIO

Years Long Term Debts Total Funds Ratio

(Rs.) (Rs.) (In Times)

34
 2016-2017 431716.93 712389.16 0.60
2017-2018 418021.26 742843.84 0.56
2018-2019 588417.27 981013.79 0.59

Chart No 4.1.9DEBT TO TOTAL FUNDS RATIO

Ratio In Times
0.61

0.6

0.59

0.58

0.57 Ratio In Times

0.56

0.55

0.54
2016-17 2017-18 2018-19

INFERENCES:

During the year 2018-2019, the debt to total funds ratio is 0.60 times and it was
decreased. And in 2017-2018 again it had an increase in the company‟s sales comparing to
previous year 2016-2017 is 0.56 times to 0.59 times in 2009-2010.

4.1.3.4 EQUITY TO TOTAL FUNDS

Equity to total funds explains the relationship between equity and total funds.

Equity
Equity to Total Funds =
Total Funds

Table No 4.1.10EQUITY TO TOTAL FUNDS

35
 Years Equity Total Funds Ratio
(In Rs.) (In Rs.) (In Times)
2016-2017 104292.34 712389.16 0.14
2017-2018 115267.00 742843.84 0.15
2018-2019 131635.65 981013.79 0.13

Chart No 4.1.10EQUITY TO TOTAL FUNDS

Ratio In Times
0.155

0.15

0.145

0.14

0.135 Ratio In Times

0.13

0.125

0.12
2016-17 2017-18 2018-19

INFERENCES:

In the year 2016-2017, the total funds was Rs.712389.16 (in lakhs) and it shows
upward trend of Rs.981013.79 (in lakhs) and during the year 2018-2019 comparing to the
year 2017-2018 is Rs.742843.84 (in lakhs).

36
 4.2.1 COMPARATIVE INCOME STATEMENT OF SUNDARAM FINANCE
LIMITED FOR THE YEARENDED 31.03.2019

Income from Operation 108277.62 118189.37 +9911.75 +9.15

Less: Financial Expense 64544.09 63379.55 (1164.54) (1.80)

Gross Profit (A) 43733.53 54809.82 +11076.29 +25.33

Other Income:
Profit on Sale of Shares - 2538.90 - -
Other Income 3199.28 4142.57 +943.29 +29.48

Total (B) 3199.28 6681.47 +3482.19 +108.84

Total Income 46932.81 61491.29 14558.48 +134.17

(A+B) = C

Expense:
Operating Expense:

Administration Expense 7160.91 6042.27 (1118.64) (15.62)

Establishment Expense 9407.97 10011.23 +603.26 +6.41
Provision 4616.80 8608.59 +3991.79 +86.46
Depreciation 3776.10 4481.57 +705.47 +18.68

Total Operating
Expense (D) 24961.78 29143.66 +4181.88 +16.75

Operating Profit 21971.03 32347.63 +10376.6 +47.23

(C-D)

Non-Operating Expense:

Taxation 6897.89 9672.77 +2774.88 +40.23

Total Non-Operating
Expense (F) 6897.89 9672.77 +2774.88 +40.23

Net Profit (E-F) 15073.14 22674.86 +7601.72 +50.43

37
INFERENCES:

The comparative income statement shows income from operation amount increase during the
year 2016-2017 was Rs.9911.75 and increase in percentage of 9.15.

For the year 2016-2017, the total income indicates Rs.14558.48 and percentage
increase during the year 2016-2017 was 134.17.

The operating profit has been increased is Rs.32347.63 in the year 2017 which is
comparingto the previous year was Rs.21971.03 and the percentage shows increase by 47.23.

The Net profit amount increases during 2016-2017 is Rs.7601.72 and shows percentage
increase by 50.43.

38
 Amount Increase / Percentage
2018 2019 Decrease during Increase /
Particulars
(Rs.) (Rs.) 2018-2019 Decrease during
(Rs.) 2018-2019 (In %)
Assets:

Current Assets 68876.04 166489.36 +97613.32 +141.72

Loans & Advance 653955.77 799363.96 +145408.19 +21.98
Deferred Tax Asset 5691.36 6124.40 +433.04 +7.61
Investment 51188.87 53744.80 +2555.93 +4.99
Fixed Asset 20241.05 23237.80 +2996.75 +14.80

Total Asset 799953.09 1048960.32 +249007.23 +31.13

Liabilities and
Capital:

Current Liability 58478.77 67946.53 +9467.76 +16.19

Unsecured Loan 208479.20 260960.87 +52481.67 +25.17
Secured Loan 417728.12 588417.27 +170689.15 +40.86

Total Liabilities 684686.09 917324.67 +232638.58 +33.98

(A)

Capital and
Reserve:

Share Capital 5555.19 5555.19 - -

Reserve & Stock
Options 109711.81 126080.46 +16368.65 +14.92

Total
Shareholders 115267.00 131635.65 16368.65 +14.20
Funds (B)

Total Liabilities 799953.09 1048960.32 249007.23 +31.13

and Capital (A+B) ========== ========== ============= =============

39
 4.2.2 COMPARATIVE BALANCE SHEET OF SUNDARAM FINANCE LIMITED
FOR THE YEAR ENDED 31.03.2019
INFERENCES:

In the year 2016-2017, the investment it shows the uptrend for the year 2017 as
Rs.53744.80 and it has increased by 4.99%.

Fixed assets has been increased was Rs.23237.80 in the year 2010 which is comparing to the
previous year and the percentage shows increase by 14.80.

During the year 2016, the shareholders fund amount to Rs.115267.00 it has been increased
to the amount of Rs. 131635.65 and percentage increased was 14.20.

Secured loans shows uptrend by Rs.588417.27 over the previous year of Rs.417728.12
and increase in percentage of 33.98.

40
 4.3.1COMMON SIZE INCOME STATEMENT OF SUNDARAM FINANCE
LIMITEDFOR THE YEAR ENDED 31.03.2019
2018 2019
Particulars
Amount Percentage Amount Percentage
(Rs.) (%) (Rs.) (%)

Income from Operation 90176.44 100 108277.62 100

Less: Financial Expense 49699.52 55.1 64544.09 59.6

Gross Profit (A) 40476.92 43733.53

44.88 40.39

Other Income:
- - - -
Profit on Sale of Shares
3199.28 3199.28 2.95
Other Income 3.54

Total (B) 3199.28 3.54 3199.28 2.95

Total Income 43676.20 48.43 46932.81 43.34

(A+B) = C

Expense:
Operating Expense:

7198.81 7160.91 6.61

Administration Expense 7.98
8821.90 9407.97 8.68
Establishment Expense 9.78
3308.02 4616.80 4.26
Provision 3.66
3012.19 3776.10 3.48
Depreciation 3.34

Total Operating 22340.92 24.77 24961.78 23.05

Expense (D)

Operating Profit 20.29

21335.28 23.65 21971.03
(C-D) = E

Non-Operating Expense:

Taxation 9035.47 10.01 6897.89 6.37

Total Non-Operating
9035.47 10.01 6897.89
Expense (F) 6.37

12299.81 13.63 15073.14 13.92

Net Profit (E-F)

41
INFERENCES:

2018 2019
Particulars
Amount Percentage Amount Percentage
(Rs.) (%) (Rs.) (%)
Assets:

Current Assets 56187.53 7.24 68876.04 8.61

Loans & Advance 652655.00 84.10 653955.77 81.74
Deferred Tax Asset 4263.67 0.54 5691.36 0.71
Investment 45645.50 5.88 51188.87 6.39
Fixed Asset 17264.30 2.22 20241.05 2.53

Total Asset 776016.00 100 799953.09 100

=========== =============

Liabilities and
Capital:

Current Liability 63626.84 8.19 58478.77 7.31

Unsecured Loan 176379.89 22.72 208479.20 26.06
Secured Loan 431716.93 55.63 417728.12 52.21

Total Liability (A) 671723.66 86.56 684686.09 85.59

Capital and Reserve:

Share Capital 2777.60 0.35 5555.19 0.69

Reserve & Stock
Options 101514.74 13.08 109711.81 13.71

Total Shareholders 104292.34 13.43 115267.00 14.40

Funds (B)

Total Liabilities and

776016.00 100 799953.09 100
Capital (A+B) =========== =============
========== ============

42
The operating profit of the SundaramFinance Limited has been increased during the year
2016-2017, the operating profit shows Rs.21335.28 in 2008 and Rs.21971.03 in the financial
year 2016.
For the year 2016, the establishment expense shows Rs.8821.90 and it has been
increased to Rs.9408.97 during the year 2017.

In 2017, provision is 3.66% and it indicates increase during the year 2016 was 4.26%.

The operating expenses incurred to the Sundaram Finance Limited during the
financial year 2015which shows Rs.22340.92 and it has risen to Rs.24961.78 during the
financial year 2016.
The net profit percentage recorded as 13.63 in 2008 where as in the year 2018 the
companies profit went upward with the percentage of 13.92.

4.3.2 COMMON SIZE BALANCE SHEET OF SUNDARAM FINANCE LIMITED

FOR THE YEAR ENDED 31.03.2019

INFERENCES:

The current assets have increased during the financial year 2018 is 8.61% which is
comparing to 2017 was 7.24% of the Sundaram Finance Limited.

There was an increase in fixed assets of Rs.20241.05 comparing to the year 2016.
Higher the ratio is more than the efficiency in utilization of fixed assets.

The current liabilities have been decreased to 7.31% of the total liabilities of the
Sundaram finance Limited during the year 2018. The current liability was 8.91% of the total
liabilities during the year 2019.

Reserves and stock options has been increased was in the year 2018 which isRs.109711.81
comparing to the previous year and the percentage shows increase by 13.71%.

During the year 2018-2019, the shareholders fund amount to Rs.104292.34, it has been
increased to the amount of Rs.115267 and the percentage increased was 14.40% in 2016.

43
 4.4 CASH FLOW STATEMENT OF SUNDARAM FINANCE LIMITED FOR THE
YEAR ENDED 31.3.2019

Particulars 2018-2019
(In Rs.)
(A)CASH FLOW FROM OPERATING ACTIVITIES
Net Profit
226,74.86
Add: Lease Equalization Account
(91.85)
Provision for Taxation (Including Wealth Tax)
96,72.77
Add: Financial Expenses 322,55.78
633,79.55 956,35.33
Depreciation
45,80.23
Provision against Investments
1,44.64
Provision against Non - Performing assets
4,79.98
General Provisions on Standard Assets
31,61.69
Employee Stock Option Compensation Expenses
23.28
(Profit) loss on sale of assets
34.21
(Profit) loss on sale of Investments
(53,36.95)
Interest / Dividend Income
(22,00.38)
Effect of Foreign Exchange rates on Cash and Cash Equivalents,
0.18
net
OPERATING PROFIT BEFORE WORKING CAPITAL
CHANGES 965,22.21
Increase in Net Stock on hire 67,08.38
Decrease in Leased assets - net of sales (60,87.57)
Increase in Trade Bills purchased 15,44.60
Decrease in Net Investment in Lease (32.25)
Decrease in Loans and Advances (1465,04.17)
Increase in Other Receivables 13.29
Decrease in Bank Deposits (net) (1079,89.81)
Decrease in SLR Investments - net of sales (22,40.77)
Increase in Current Liabilities 32,87.01
Cash generated from Operations
Financial Expenses (619,43.37)
Direct Taxes Paid (709,48.53)
(90,05.16)
NET CASH FROM OPERATING ACTIVITIES (A) (2257,27.61)
B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (15,38.40)
Sale of Fixed Assets 96.09
Purchase of Investments (12677,85.28)
Purchase of Investments in Subsidiaries/Joint Venture (18,33.50)
Sale of Investments 12746,00.34
Interest Received 2.75
Dividend Received 21,97.65
NET CASH FROM INVESTING ACTIVITIES (B) 57,39.65

C) CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Issue of Debentures 3475,75.18

44
Debentures Redeemed (2686,00.00)
Increase (Decrease) in Long Term Borrowings 869,13.98
Increase (Decrease) in Fixed Deposits 154,84.84
Increase (Decrease) in Short Term Loans and Advances 417,96.83
Dividend paid (including Corporate Dividend Tax) (53,51.34)
NET CASH FROM FINANCING ACTIVITIES (C) 2178,19.49

D) Effect of Foreign Exchange rates on Cash and Cash

Equivalents, net (D) (0.18)

NET INCREASE IN CASH AND CASH EQUIVALENTS

(A)+(B)+(C)+(D) (21,68.65)

CASH AND CASH EQUIVALENTS AT THE BEGINNING

OF THE YEAR 48,39.35

CASH AND CASH EQUIVALENTS AT THE END OF THE

YEAR 26,70.70

COMPONENTS OF CASH AND CASH EQUIVALENTS

AT THE END OF THE YEAR

Current Account with Banks 13,50.13

Cash, Stamps and Stamp Papers on Hand 13,20.57
26,70.70

INFERENCES:

In the year 2018-2019, the operating profit before working capital changes show the
profit amount of Rs.96522.

The employee stock option compensation expenses of the Sundaram finance Limited
has shown 31,61.69 (Rs. in lakhs) during the year 2018-2019.

While the Net Cash from investing activitiesdepicts Rs.5739.65 in the year 2018-2019.

There was a increase in net stock on hire during the financial year 2018-2019 of

45
67,08.38 (Rs. in lakhs).

The financial year 2018-2019 depicts theNet cash from financing activities amount of
Rs.217819.49 shows upward profit in the company.

Cash and cash equivalents at the end of the year were Rs.4839.35 it shows that the company
position in the year 2018-2019.
4.5 REGRESSION ANALYSIS FOR SALES

Sales
Year X Rs XY X2
( in Lakhs )
Y
2017 ─1 90176.44 ─90176.44 1
2018 0 108277.62 0 0
2019 1 118189.37 118189.37 1
Total ∑x= 0 ∑y=316643.43 ∑x y= 28012.93 ∑X2 =2

∑Y=Na+b∑X

∑ XY = a ∑ X + b ∑ X2

Y=a+bX

3 a + 0 b = 316643.43 --------------- ( 1 )

0 a + 2 b = 28012.93 --------------- ( 2 )

Solving ( 1 ) and ( 2 ) We get,

a = 105547.81

b = 14006.46

When X = 2, Y2011 = 105547.81 + 14006.46( 2 )

Y2011 = Rs. 133560.73 ( in Lakhs )

When X = 3, Y2012 = 105547.81 + 14006.46( 3 )

Y2012= Rs. 147567.19( in Lakhs )

46
INFERENCE:

The net sales during the year 2017were 90176.44 (Rs. in Lakhs) which has been
increased to 108277.62 (Rs. inLakhs) during 2016 which also raised to 118189.37 (Rs.
inLakhs) during 2017.

The projection is made for the fore coming years 2018 and 2019where the net sales
would be 133560.73 (Rs. inLakhs) during the year 2011 and the net sales during the financial
year 2019 will be 147567.19 (Rs. in Lakhs).

47
CHAPTER - 5
CONCLUSION
AND
SUGGESTIONS

48
5 SUMMARY AND CONCLUSION

5.1 FINIDNGS

 The Gross Profit Ratio shows that increasing in sales has maintained the companies
profit level. In the year 2017-2018, the percentage shows 20.29 it has been increased
during the year 2018-2019 to 27.37.

 The net profit ratio has been increased to 19.18 during the financial year 2017 –
2018to 13.92 during 2018 – 2019 which indicates that there is an improvement in the
operational efficient of the business and it leads to the increase in the profitability of
the firm.

 It has found that the return on equity during the year 2017-2018, the company shows
5.61% of ratio and it has risen to 6.80%. This is a clear indication of overall operation
is efficient.

 The Working capital in the year 2016-2017, the sales of the company is low at
Rs.666319.18 and it is increased to Rs.898497.54 in 2018-2019. It measures the
effective utilization of working capital.

 The capital turnover of capital employed in the financial year 2008-2009 it shows
Rs.533288.26 and during the year 2018-2019 it is increased to Rs.720052.92. It has
effective utilization of capital employed under the current year.

 Fixed asset turnover shows increase in sales of Rs.118189.37 comparing to the

previous year of Rs. 108277.62 and the firm should maintain this increasing trend in
future also.

 During the year 2018-2019, the current ratio is 3.02% and it is more when compared
with previous year 2018-2019 is 1.36 %. So the short term liquidity of a concern,
comparison of current assets and current liabilities is inevitable.

49
 The debt equity ratio has shows 3.62% in 2015-2016 and it has been raised to 4.47%
during 2018-2019 which indicates that the company has increased over the years with
increase in shareholder funds as well.

 It is found that the shareholders funds had increased by Rs.16368.65 over the
percentage of 14.20 in comparative income statement analysis.It determines the
profitability from the shareholders point of view.

 The financial year 2018-2019 depicts the Net Cash from financing activities amount
of Rs.217819.49 shows upward profit in the company.

50
 5.2 SUGGESTIONS

The current ratio is improving rapidly so the company wants to keep an eye on the
current assets flow.The company has been suggested to reduce the expenditure as it increases
every year. Decrease in expenses will increase the profitability.

By over viewing the working capital turnover ratio it is clear that the company wants
to utilize its working capital efficiently that is the excess current assets should be adjusted
according to current scenario.Though the net profit shows it is increased but we found that
the net profit ratio has been decreased. So the company should consider increasing the sales
in turn to increase the actual profit.

The debt equity ratio of the company is also increasing. The company should focus on
the debt and long term funds which are utilized in the company.The excess cash flow should
or can be utilized in any new ventures if the company wishes to do.

51
5.3 CONCLUSION

In the study of Financial Performance of Sundaram Finance Limited Chennai, it is

clear that the company‟s financial performance is satisfactory. The company has stable
growth and it shows a greater efficiency in all the areas it works.

If the company utilizes its working capital then the company can go heights which it
wanted to achieve.The comparative income statement shows increase in the current year of
net profit and it depict the companies current profit position. To improve the efficiency the
company will strive for better performance and increase the market share the company.

The suggestions provided through the study will help the company to improve the
operational performance efficiently. The suggestions provided through the study will help the
company to improve the operational performance efficiently.

52
REFERENCES

53
REFERENCES

 Carlos Correia, David Flynn, Enrico Uliana& Michael Wormald, “Financial

Management”, 6th Edition, 5.1 -5.34.

 Chidambaram Rameshkumar, Anbumani N, “An overview on financial statements

and ratio analysis”,2006, Vol.1, p. 30

 George Foster, “Financial Statement Analysis”, 2nd Edition, 57 – 94.

 Greninger et al.(1996), Fundamentals of Financial Management, 5th Edition, 4.1-

4.18.

 Jae K.Shim, Joel G.Siegel, Schaum‟s Outline of Theory and Problems of Financial
Accounting, 1999, 279-298.

 John J.Wild, K.R.Subramanyam& Robert F.Halsey (2006), Financial Statement

Analysis, 9th Edition, 2-90.

 Jonas Elmerraji, “Analyze Investments Quickly with ratios”, 2005, 33-36

 Kennedy and Muller, “Analysis of Financial Statements”,1999, 1.3 – 1.34

 Khan M Y & Jain P K, “Financial Management”, 4th Edition , 2006, 6.1 - 6.81

 PandeyI M, “A Management Guide for Managing Company‟s Funds and Profits”,

6th Edition, 1 – 58

 Peeler J. Patsula, “Successful Business Analysis”,2006, 18-19

 RachchhMinaxi A (2011), Introduction to Management Accounting, 3-88.

54
 Reddy T S &Hari Prasad Reddy Y, “Management Accounting”, 3rd Edition, 2008,
3.9 - 3.25

 Salmi, T. and T. Martikainen (1994), "A review of the theoretical and empirical
basis of financial ratio analysis", The Finnish Journal of Business Economics 43:4,
426-448.

 Susan ward, “Financial Ratio Analysis For Performance Check”, p.132

Websites:

 www.google.com

 www.sundaramfinance.in

 http://scholar.google.com

 www.managementparadise.com

55