A

SUMMER INTERNSHIP PROJECT REPORT

ON
“A STUDY ON FINANCIAL STATEMENT ANALYSIS”
AT NIRMA LIMITED.

SUBMITTED TO:
S.K.SCHOOL OF BUSINESS MANAGEMENT,
HEMCHANDRACHARYA NORTH GUJARAT UNIVERSITY, PATAN.

IN PARTIAL FULFILMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE
OF MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDENCE OF

DR.NISHIT BHATT

SUBMITTED BY:
HANEE PRAJAPATI

i
 PREFACE

Experience is the best teacher the saying has played a guiding role in the preparation of the project
report. As a part of the curriculum, after the completion of the first year of MBA, the students are
required to work in an organization as a trainee and analyze its operations through research based
project. It allows students to have an exposure to the real business world.

Management learning remains incomplete without an experience of corporate world. Thus,

theoretical knowledge is not enough for management students; practical study holds an important
place. So, the objective behind preparing this project report is to related the management theories
taught in the classroom to their practical application.

In this project recruitment and selection is analyzed with the help of survey of employees who work
in organization. It is an image of deep practical studies to whatever observed and analyzed in the
organization.

My work in this project report is, therefore, a humble attempt. Best efforts have been made to
derive feasible conclusion towards the objective of this project, yet there could be some error. I
take the responsibility for such errors.

ii
 ACKNOWLEDGEMENT

I am Hanee prajapati certify that the project report entitled on “Financial statement Analysis of Nirma
LTD. I take this opportunity, also to express my love and sincere thanks to my family members and
friends for their support and advice during various stage of work.

It was indeed an opportunity for me to visit the FINANCE DEPARTMENT OF NIRMA LTD. and
prepare a Project Report on the same during May-June. During our visit to the company or preparing
this Project Report, I learnt many interesting things about the company, along with the aspects of
industry as a whole.

I would hereby take this opportunity to show my gratitude towards all my mentors for what I have
learnt during training. A good response, feedback and co-operation given by whole staff helped me
in gaining knowledge and solving my queries. I convey my sincere thanks to all the officials Of
NIRMA LTD.

The successful completion of this project could not have been possible without the cooperation and
support of them guidance who have given complete information for the project.

I am very thankful who has given me full opportunity to learn the project report here. I have
endeavored to leave no stone unturned ,and I trust that the information presented in this report is
accurate ,relevant and comprehensive to the best of my knowledge and ability.

iii
 CONTENT

Sr. No. Particular Page No.

I Preface II

II Acknowledgement III

III Content IV

Ch. 1 General Information V

1.1 Introduction 1

1.2 Company Profile 2

1.3 History 3

1.4 Products 6
1.5 Company Overview 8

1.6 Registered Office 9

1.7 Plant locations 9
1.8 Board of directors 10
1.9 Awards 11
1.10 Vision, mission & philosophy 11
1.11 Corporate social responsibilities 12
Ch.2 Trend Analysis of Balance Sheet 14
Ch.3 Trend Analysis of Profit &loss 22
Ch.4 Common Size Analysis 29
Ch.4.1 Common Size Analysis of Balance Sheet 30
Ch.4.2 Common Size Analysis of Profit &loss 39
Ch. 5 Ratio analysis 43
Ch. 6 Conclusion 46
Bibliography 47

iv
 CHAPTER :- 1
General Information

v
1.1. INTRODUCTION

'BETTER PRODUCTS, BETTER VALUE, BETTER LIVING'.

Nirma is a group of companies based in the city of Ahmedabad in western India that
manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and
Injectibles. Karsanbhai Patel, a well known entrepreneur and philanthropist of Gujarat, started
Nirma as a one-man operation. Today Nirma has over 15000 employees and a turnover of over
Rs. 3550 crores. Nirma's detergent approached 800,000 tonnes – one of the largest volumes sold
in the world – under a single brand 'NIRMA'.Nirma is the Rs.17 billion Detergents,
Soaps and Personal Care Products Brand, A mar ket lea der in t he I nd ia n d et er ge nt
mar ket and second largest in bathing soaps. The brand NIRMA being one of the
world's b igge st in it 's s eg me nt . . . a r esu lt o f it 's m is s io n t o pr o vide .

1
1.2 COMPANY PROFILE

Type Public

Industry FMCG

Founded 1969

Headquarter Ahmadabad , india

Key people
Karsanbhai Patel

Products Nirma detergent

Employees 14000

Websites www.nirma.co.in

2
1.3 History
 1980 : The Company was incorporated on February 25, as Private Limited Company to carry
on the business of manufacturing and selling Synthetic Detergents, Soaps, Chemicals and Allied
Products. The Company is promoted by Shri Karsanbhai K. Patel.

 1993 : The Company became a deemed public limited Company under Section 43-A of the
Companies Act, 1956 and was then converted into a Public Limited Company by passing a
special resolution at the Extra-ordinary General Meeting held on November 08. The Company
proposes to set up a 1200 tpd (4,20,000 tpa) Soda Ash Project in technical collaboration with
AKZO NOBEL ENGINEERING BV (AKZO) of Netherlands based on the Dry Lime Technology
as a backward integration to the existing activities.The company proposes to set up a facilities to
manufacture Toilet Soaps with an installed capacity of 60,000 tpa and Synthetic Detergents with
installed capacity of about 3,00,000 tpa. The Company will be entering into a long term agreement
with the Bhavnagar Municipal Corporation for providing of requisite quantity of sewage water.

 1994 : The Company came out with its maiden public issue of Equity Shares of Rs.10/- each for
cash at a premium of Rs.100/- per share aggregating for Rs.44.78 crores in February. The
Company also ventured into manufacture of Fatty Acid, Glycerine, Toilet Soaps, Sulphuric Acid
and Alfa Olefin Sulphonate (AOS). Nirma Ltd. has become a multi product company representing
a wide array of product lines starting from Detergent Powders and personal care products like
Toilet Soaps to chemicals like Sulphuric Acid, Glycerin, Alfa Olefin Sulphonates, Fatty Acids,
Oxygen etc. The Brand name NIRMA is owned by Nirma Chemical Works Pvt. Ltd.which has
given a non exclusive license to AME thereby allowing AME to use the Nirma brand trade marks.
The Company sells Sulphuric Acid, Oleum, Alfa Olefin Sulphonates, Glycerin and Oxygen
directly to industrial consumers on a regular basis. The Company has also installed 26 Wind
Turbine Generators (WTG) with a capacity of 5.94 MW to generate power at Dhank Dist., Rajkot.
Nilnita Chemicals Limited will be amalgamated with the Company with effect from 1st April.
The Company is setting up a desalination facility for producing about 200 cu. mtrs per day of soft
water. The Company proposes to establish R&D Centre at site for better waste utilisation and
infrastructural betterment. The Company has entered into a Memorandum of Understanding with
Indian Oil Corporation Ltd., for release by I.O.C.L. of 80,000 MTPA net of LAB feed stock in
case the Company decides to establish a plant for the production of 80,000 MTPA of Linear Alkyl
Benzene. The company has also installed equipments for testing the bio-degradability of various
surfactants.

 1995: The Company is setting up salt works facility at Kalatalav on 25,000

acres of land adjacent to its proposed Soda Ash plant for meeting its entire salt requirement. The
Company has entered into an Agreement with Humphrey & Glasgow Consultants Ltd. for Detailed

3
Engineering, construction supervision including Civil and Architectural Designs and Procurement
Services for the Soda Ash Plant. The Company would be entering into Equipment Supply
Agreement(s)with the Critical Plant & Equipment Suppliers which, inter-alia, should provide for
performance guarantee of the equipment, penal provisions for non-fulfilment of guaranteed norms,
delay in delivery and defects in workmanship/design etc.

 1996: During the year, Company has introduced Shampoo, which has been seed
marketed and has been accepted well by the consumers. During the year, on account of
modernisation, Company has successfully manufactured IP Grade (Pharmaceutical Grade) Glycerin
and the same has been well accepted and is in good demand. The Company has technology tie up
with UOP Inter Americana Inc., U.S.A. who will be providing technical and basic engineering
services.The Company has also tied up with Uhde India Limited for providing detailed engineering
services. Issue of 81,41,750 . 17% secured non convertible debentures and/or secured premium notes
of the face value of Rs 200 each for cash at par aggregating Rs 162,83,50,000 alongwith four
detachable warrants attached to each NCS/SPN, to the shareholders of the company on rights basis
in the ratio of one NCD/SPN for every two equity shares held by them on 9th August.

 1997 : Nirma is one of the country's largest detergent producers selling over 4.5 lakh tonnes of
detergent and having the largest market share in the low value mass market brands. Nirma,
powder sells more than Hindustan Lever's Wheel, though Hindustan Lever is the largest producer
of detergent and toilet soaps put together. Nirma Ltd is launching a mega public offer totalling
Rs. 350 crore. The offer will be distributed through the 100 per cent book-building process,
whereby the sale price of the share and the total size of the offer will be driven by demand for the
stock. Nirma is not only India's largest selling brand in detergent segment but is also the second
largest manufacturer of toilet soap in the country. Nirma Ltd has entered into a separate agreement
with Nirma Chemical Works Ltd (NCWL), the trademark owner of the Nirma brand, for exports.
Nirma has entered into a eparate agreement with Nirma Chemical Works, the trademark owner
of the `Nirma' brand, for exports. The company has created Nirma Consumer Care Ltd. - a wholly
owned subsidiary in August, which is the sole licensee of the brand name Nirma within India.
The 75,000 tpa linear alkyl benzene (LAB) plant was commissioned in December, at Alindra near
Baroda in Gujarat.

 1998 : ICRA has assigned an LAAA rating to the Rs.200 crore Non-convertible debentures
programme of Nirma Ltd (NL), indicating highest safety. The company Nirma has already
announced successful completion of it's state-of-the-art 80,000 tpa Linear Alkyl Benzene plant.
Nirma is one of the few Indian companies that have matched the MNCs in the retail sales through
innovative marketing strategies. The firm has set up state-of-the-art packaging and printing units
and will now directly produce key raw materials to improve product quality.

 1999 : The edible salt market is set to witness a keen battle with a new
entrant, Nirma Salt, about to hit the market.The company is putting up a three-stage vacuum salt
plant with an installed capacity of 280,000 tonnes a year. The overall sales growth has been
constrained due to a plant shutdown in the industrial product segment to manufacture N-raffin.

4
 2000 : Nirma maintains lead over HLLNirma goes retailing, launches supermarket chainNirma
among top six Asia consumer picks

 2001 :Nirma gets into food retailing business

 2002 :Nirma ties up with P&G to manufacture Company

 2004: NERF sets up Nirma Labs to nurture talent

 2005 :Nirma acquires Saurashtra Chem for Rs 300 cr

 2006 :Nirma is diversifying into pharmaceutical sector.

 2007: The Company has splits its face value from Rs.10/- to Rs.5/- .The company has designated
E-mail ID for Investor Complaints investors@nirma.co.in Nirma enters into definitive agreement
for the acquisition of USA based Natural Soda Ash producer Nirma has incorporated Karnavati
Holdings Inc, in Delaware, U.S.A. a Wholly Owned Subsidiary (WOS) of the Company.

 2008:The company has recommended Dividend @ 80%

 2010:-Nirma have recommended Dividend of Rs 4.50 per share on 159142282

equity shares of Rs 5/- each.

5
1.4.PRODUCTS

6
7
1.5.COMPANY OVERVIEW
Starting as a one-product, one-man outfit from a 100 sq ft (9.3 m2) room in 1969, Nirma became
a very successful company within three decades. The company had multi-locational
manufacturing facilities, and a broad product portfolio under an umbrella brand – Nirma . The
company's mission to provide, "Better Products, Better Value, Better Living" contributed a great
deal to its success.

Nirma successfully countered competition from HLL and carved a niche for itself in the lower-
end of the detergents and toilet soap market. The brand name became almost synonymous with
low-priced detergents and toilet soaps. However, Nirma realized that it would have to launch
products for the upper end of the market to retain its middle class consumers who would
graduate to the upper end. The company launched toilet soaps for the premium
segment.However, analysts felt that Nirma would not be able to repeat its success story in the
premium segment.

In 2000, Nirma had a 15% share in the toilet soap segment and more than 30% share in the
detergent market. Aided by growth in volumes and commissioning of backward integration
projects, Nirma's turnover for the year ended March 2000 increased by 17% over the previous
fiscal, to Rs. 12.17 bn.

8
 1.6.REGISTERED OFFICE

Nirma house, ashram road

City : Ahmedabad
State : Gujarat
Pincode : 38009
Web : http://www.nirma.co.in

1.7.PLANT LOCATIONS

1) Block No. 16/B,

Ahmedabad-Mehsana Highway,

P.O. Mandali. Dist. Mehsana.Gujarat.

Pin : 382732.

2) Village : Moraiya,
Post Chacharwadi, Vasana,

Near Modern Denim Bavala Road,

Taluka: Sanand,

Dist: Ahmedabad,Gujarat.

Pin: 382213

3) Alindra Detergent Complex,

P.O. Alindra,
Taluka: Savli,
Dist: Baroda,
Gujarat.

Pin: 391775.

4) Bhavnagar Chemical Complex,

P.O. Kalatalav,

Dist: Bhavnagar,
Gujarat.

5) Wind Farm Project at Survey No. 691,

Village: Dhank,

9
 Taluka: Upleta,Dist:
Rajkot, Gujarat

6) Survey No. 358-369,

Village Sachana,

Taluka: Viramgam,

1.8.MANAGEMENT - NIRMA

Kalpesh A Patel Executive Director

Rajendra D Shah Director
Kaushikbhai N Patel Director
Pankaj R Patel Director
Chinubhai R Shah Director
Shrenikbhai K Lalbhai Director

10
1.9. AWARDS
 In 2001,Karsanbhai was awarded an honorary doctorate by Florida Atlantic University,
recognizing his exceptional entrepreneurial and philanthropic accomplishments.

 In 1990, the Federation of Association of Small Scale Industries of India (FASII), New
Delhi, awarded him the 'Udyog Ratna' award. The Gujarat Chamber of Commerce
felicitated him as an 'Outstanding Industrialist of the Eighties'. He has served twice as
Chairman of the Development Council for Oils, Soaps and Detergents.

 Dr. Karsanbhai Khodidas Patel has been conferred with Padma Shri Award for the
year2010.The award will be formally conferred by the President of India Mrs Pratibha
Patil.

1.10.VISION, MISION & PHILOSOPHY

Nirma is a customer-focused company committed to consistently offer better quality products
and services that maximise value to the customer.

This customer-centric philosophy has been well emphasised at Nirma through:

 Continuously exploring & developing new products & processes.

 Laying emphasis on cost effectiveness.
 Maintaining effective Quality Management System.
 Complying with safety, environment and social obligations.
 Imparting training to all involved on a continuous basis.
 Teamwork and active participation all around.
 Demonstrating belongingness and exemplary behaviour towards organisation, its goals
and objectives.

Nirma is a phenomenon and synonymous with Value for Money. The brand transcends the
specific dynamic of any particular product category, which is best captured in its above mission
statement - a statement of sustained innovation, an unceasing effort to deliver better value to
consumers, through better product quality.

11
1.11.CORPORATE SOCIAL RESPONSIBILITIES
Nirma's vision visualises itself as a vibrant, pro-active and widely admired, ethical corporate
citizen. Nirma believes, that exemplary achievements on the business points are not enough in
the making of a good corporate citizen. In fulfilment of this role as a responsible part of the
society and environment in which one operates, Nirma has undertaken a host of activities in the
educational and social development areas.

Realising the significant role of education - especially technical and managerial in socio-
economic development of the nation, Nirma played a vital role by establishing the Nirma
Education & Research Foundation (NERF) in 1994. Recently, this Foundation has been
awarded University status. This status gives way to shape up and expand into a body providing
education in other courses like medicine, nursing, biotechnology, etc. along with the existing
courses under a single roof of Nirma University. Today, this state-of-the art academic
infrastructure runs various institution bodies such as Institute of Technology, Institute of
Management, Institute of Pharmaceutical Sciences and Institute of Diploma Engineering.
These all institutions are located in a disciplined, serene and pleasant environment. The campus
blends beautifully with the green landscaping, aesthetic elegance of arches and the vibrant
pursuit of knowledge by the young aspirants. The environment gives full scope for group
activities, which are plenty, as also to individual pursuits for development on preferred tracks.

Institute of Management is a one of the premier business school, providing quality management
education, and nourishing managerial talent. Within a short span, this institution achieved a
position in Top-25 B-schools of India. The institute is having state-of-art infrastructure facilities
and eminent faculties are sharing and contributing their knowledge to nurture the Indian
industry with best managerial skills. Presently, the institution offers a two- year full time
programme in business management and managing family business disciplines. Fellowship
programme is doctoral level programme for post-graduate scholars in management for those
who want to pursue careers in research, consulting, and academics. The programme consists of
domain-specific advance courses for skill formation in research, consulting and teaching. To
impart management learning to working executive community, Institute of Management is also
offering three-years part-time management programme. Management Development
Programmes [MDPs] and Executive Diploma Programs [EDPs] are uniquely designed for
working executives, managers and entrepreneurs in the fields of Finance, Marketing and
Human Resource Management. The programme has been tailored to suit the needs of working
executive, managers and entrepreneurs who are seeking an exposure to modern management
concept and practices.

1. Institute of Technology : offers degree-engineering courses in Chemical,

Instrumentation & Control, Electronics & Communication, Computer Sciences,
Civil, Mechanical and Electrical technologies. Again, the well-developed
infrastructure, knowledge-based faculties and facilities offered at the institution,
gives it a priority choice in student community. The institute also offers Post-
graduation, advanced courses in various technology disciplines. Year-around
different happenings and seminars keep the environment very lively and provide
opportunities to her students to perform brilliantly in their disciplines. Institute is
also offering Masters in Computer Application courses.

2. Institute of Diploma Studies is offering four-year diploma programme. This

12
 programme covers sandwich pattern of multi point entry (MPE) and credit system
(CS). This methodology helps students to comprehend industrial practices when they
are in the institution allowing them opportunity to develop skills in far better way
than their counterpart of non co-operative type programme. This institute is
recognized by the All India Council for Technical Education (AICTE) and State
Government of Gujarat.

3. Institute of Pharmaceutical Sciences is responsible for preparing students to

enter into a career in pharmacy and function as professionals and responsible citizens
in changing health care systems. A dynamic, challenging and comprehensive
curriculum, includes a foundation in the biological, biomedical, clinical,
pharmaceutical and physical sciences, clear focus on application and use of
knowledge in practical settings, and a general education in healthcare systems,
ethics, management, professional issues, communication and practical skills.

4. Nirma Labs : is another contribution of Nirma with an objective to nurture,

promote and facilitate potential entrepreneurs in their pursuit of knowledge based
large-scale wealth generation for stakeholders and society. The prospects will
undergo the program of grooming and incubation at NirmaLabs, and will then be
supported to build the incubated ventures with appropriate support.Nirma has
already contributed Rs. 350 million for the development of these institutes, an
amount, which is likely to rise further to Rs. 500 million. The infrastructure facilities
created here are of international standards and they have already become models for
similar institutes. Plans are underway to start Post Graduate & Research Courses in
Management and Technology, as well as an IAS training center and a programme in
Masters of Computer Applications.Nirma Memorial Trust and Nirma Foundation -
Nirma Memorial Trust looks after deprived women in Gujarat. It builds Ashrams
and guesthouses for pilgrims and the elderly. The Nirma Foundation, set up in 1979,
contributes towards the running of schools, colleges, temples and social institutions,
within the state and outside. Chanasma Ruppur Gram Vikas Trust in Mehsana of
which Mr. K. K. Patel is the founder trustee and President provides education,
maintenance of public health and related facilities in rural areas. The trust has started
several institutions in Ruppur, including the Art & Commerce College, and an ITI
training institute and a ladies hostel.

13
 CHAPTER :- 2
Analysis of Balance Sheet

14
 BALANCE SHEET

Particulars 31.03.2020 31.03.2021 31.03.2022 31.3.2023 31.3.24

ASSETS 11,558.75 11,927.74 10750.1 11613.71 15979.8
Non-current Assets
Property, Plant and Equipment 3,039.78 3,640.16 3,284.10 3,049.30 2,872.41
Right of use of Asset 2.09 2.85 227.38 224.37 221.53
Capital work-in-progress 1,081.19 529 224.19 268.29 483.02
Investment Property 10.3 10.3 10.3 10.14 10.14
Other Intangible assets 3.03 10.3 17.03 13.78 10.53

Other Intangible Asset under development 15.6 - - - -

Financial assets

Investment in subsidiary 533.38 533.38 6051.12

533.38 533.38

Investments 4250 4,250.90 3828.55

3,673.36 3,925.64
Loans 2.97 - - 66.62 -

Other financial assets 0.14 2.97 2.73 2.81 3.14

Other non-current assets 9.72 1.41 11.83 23.59 21.49

Total non-current assets 8,949.06 10,200.04 7984.3 8117.92 13501.93
Current Assets
Inventories 1,071.37 1,013.16 1,457.02 1544.67 1179.44
Investments 160.07 108.29 174.23 763.38 172.12
Financial assets
Trade receivables 457.73 352.09 573.63 644.54 570.6
Cash and cash equivalents 94.73 141.59 359.91 36.54 195.46
Bank balances other than (i) above 3.34 3.3 0.14 0.15 215.62
Loans 689.69 15.05 64.9 280.28 26.93
Other financial assets 6.99 7.1 10.8 8.18 7.92
Other current assets 60.13 87.06 125.17 218.05 108.82
Current Tax Assets (Net) 65.64 Nil -7.92 0.00 0.96
Total current assets 2,609.69 1,727.70 2765.8 3495.79 2477.87
TOTAL ASSETS 11,558.75 11,927.74 10750.1 11613.71 15979.8
EQUITY

15
 Equity share capital 73.04 73.04 73.04 73.04 73.04
Other equity 5,211.18 5,745.05 6234.22 7436.52 8122.33
Total equity 5,284.22 5,818.09 6307.26 7509.56 8195.37
LIABILITIES 11,558.75 11,927.74 10750.1 11613.71 15979.8
Non-current liabilities
Borrowings 3,937.08 3,446.82 879.49 305.55 3823.44
Other financial liabilities 79.02 78.81 81.81 88.07 96.26

Provisions 85.65 90.65 113.45 121.85 129.38

Deferred tax liabilities (Net) 144.8 228.64 317.53 274.63 277.16

Total non-current liabilities 4,246.55 3,844.92 1394.03 791.26 4327.16

Current Liabilities
Borrowings 480.01 436.09 1661.24 1858.77 2101.3
Trade payables due to Micro & Small Enterprise 0.01 1.94 11.84 63.3 99.8
Trade payables due to others than Micro &
289.17 297.52 461.62 451.46 364.19
Small Enterprise
Other financial liabilities 618.12 833.4 84.09 101.82 107.05
Other current liabilities 127.63 97.94 0.72 199.68 201.51
Provisions 513.04 545.5 236.65 577.54 583.18
Current tax liabilities (Net) Nil 52.34 558.13 59.7 -
Total current liabilities 2,027.98 2,264.73 3048.81 3312.89 3457.27
TOTAL LIABILITIES 6,274.53 6,109.65 4442.84 4104.15 7784.43
TOTAL EQUITY AND LIABILITIES 11,558.75 11,927.74 10750.1 11613.71 15979.8

16
 TREND ANALYSIS OF BALANCE SHEET
Particulars 2020 2021 2022 2023 2024
ASSETS
Non-current Assets
Property, Plant and Equipment 100 16938.9 108.04 100.31 94.49
Right of use of Asset 100 136.4 10879.43 10735.41 10599.52
Capital work-in-progress 100 48.9 20.74 24.81 44.67
Investment Property 100 100.0 100.00 98.45 98.45
Other Intangible assets 100 339.9 562.05 454.79 347.52
Other Intangible Asset under development

Financial assets

Investment in subsidiary 100 100.0 100.00 100.00 1134.49

Investments 100 100.0 86.43 92.37 90.08

Loans 100 - - 2243.10 -

Other financial assets 100 2121.4 1950.00 2007.14 2242.86

Other non-current assets 100 14.5 121.71 242.70 221.09
Total non-current assets 100 114.0 89.22 90.71 150.88
Current Assets
Inventories 100 94.6 136.00 144.18 110.09
Investments 100 67.7 108.85 476.90 107.53
Financial assets
Trade receivables 100 76.9 125.32 140.81 124.66
Cash and cash equivalents 100 149.5 379.93 38.57 206.33
Bank balances other than (i) above 100 98.8 4.19 4.49 6455.69
Loans 100 2.2 9.41 40.64 3.90
Other financial assets 100 101.6 154.51 117.02 113.30
Other current assets 100 144.8 208.17 362.63 180.97
Current Tax Assets (Net) 100 - -12.07 0.00 1.46
Total current assets 100 66.2 105.98 133.95 94.95

17
 TOTAL ASSETS 100 103.2 93.00 100.48 138.25
EQUITY
Equity share capital 100 100.0 100.00 100.00 100.00
Other equity 100 110.2 119.63 142.70 155.86
Total equity 100 110.1 119.36 142.11 155.09
LIABILITIES 100 103.2 93.00 100.48 138.25
Non-current liabilities
Borrowings 100 87.5 22.34 7.76 97.11

Other financial liabilities 100 99.7 103.53 111.45 121.82

Provisions 100 105.8 132.46 142.27 151.06
Deferred tax liabilities (Net) 100 157.9 219.29 189.66 191.41

Total non-current liabilities 100 90.5 32.83 18.63 101.90

Current Liabilities
Borrowings 100 90.9 346.08 387.24 437.76
Trade payables due to Micro & Small Enterprise 100 19400.0 118400 633000 998000
Trade payables due to others than Micro & Small
100 102.9 159.64 156.12 125.94
Enterprise
Other financial liabilities 100 134.8 13.60 16.47 17.32
Other current liabilities 100 76.7 0.56 156.45 157.89
Provisions 100 106.3 46.13 112.57 113.67
Current tax liabilities (Net)
Total current liabilities 100 111.7 150.34 163.36 170.48
TOTAL LIABILITIES 100 97.4 70.81 65.41 124.06
TOTAL EQUITY AND LIABILITIES 100 103.2 93.00 100.48 138.25

18
ASSETS
Mar-
assets Mar-21 Mar-22 Mar-23 Mar-24
20
Capital work-in-progress 100 48.9 20.74 24.81 44.67
Other non-current assets 100 14.5 121.71 242.70 221.09
Total non-current assets 100 114 89.22 90.71 150.88
Inventories 100 94.6 136 144.18 110.09
Other current assets 100 144.8 208.17 362.63 180.97
Total current assets 100 66.2 105.98 133.95 94.95

400
Assets

350 Capital work-

in-progress
300 Other non-
current assets
250 Total non-
200
current assets
Inventories
150
Other current
100 assets
Total current
50 assets
0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

INTERPRETATION
- Capital work-in-progress: Decrease from 100 to 44.67 bad for the company, as it indicates a
significant reduction in on going capital projects or investments.

- Other non-current assets: Increase from 100 to 221.09 good for the company, as it suggests an
increase in long-term assets, potentially indicating investments or acquisitions.

- Total non-current assets: Increase from 100 to 150.88 good for the company, as it shows an overall
increase in long-term assets.

- Inventories: Increase from 100 to 110.09 good for the company, as it suggests a build-up of
inventory, potentially indicating expectations of future sales or revenue.

19
- Other current assets: Increase from 100 to 180.97 good for the company, as it indicates an increase
in short-term assets, potentially including cash, accounts receivable, or other liquid assets.

- Total current assets: Decrease from 100 to 94.95 bad for the company, as it shows a overall decrease
in short-term assets, potentially indicating reduced liquidity.

LIABILITIES

liabilities Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Borrowings 100 87.5 22.34 7.76 97.11
Deferred tax liabilities (Net) 100 157.9 219.29 189.66 191.41
Total non-current liabilities 100 90.5 32.83 18.63 101.9
Total current liabilities 100 111.7 150.34 163.36 170.48
Provisions 100 106.3 46.13 112.57 113.67

liabilities

250
Borrowings
200
Deferred tax
150 liabilities (Net)

Total non-
100 current liabilities

Total current
50 liabilities

Provisions
0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

20
INTERPRETATION

- Borrowings: Decrease from 100 to 97.11 good for the company, as it means they have reduced
their debt.

- Deferred tax liabilities (Net): Increase from 100 to 191.41 bad for the company, as it means they
have a larger tax burden.

- Total non-current liabilities: Increase from 100 to 101.9 slightly bad for the company, as it means
they have a slightly larger long-term debt.

- Total current liabilities: Increase from 100 to 170.48 bad for the company, as it means they have a
larger short-term debt.

- Provisions: Increase from 100 to 113.67 bad for the company, as it means they have set aside
more money for potential losses or expenses.

21
 CHAPTER :- 3
Analysis of Profit & Loss Statement

22
profit loss 2020 2021 2022 2023 2024
I Revenue from
5034.97 8,560.50
operations 5035.97 11349.48 10403.2
II Other income 170.90 160.84 124.8 140.33 286.46
III Total Income
5506.27 8,685.30
(I+II) 5205.87 10689.68 10689.68
IV Expenses
(a) Cost of materials
1,588.90 1,809.37 3112.01
consumed 3343.48 2687.02
(b) Purchases of
43.03 45.87 133.48
stock in trade 9.47 55.56
(c) Changes in
inventories of finished goods,
46.64 -104.92 -373.17
stock in trade and work-in-
progress -430.83 404.21
(d) Employee
339.54 303.13 384.39
benefits expenses 902.53 982.14
(e) Finance costs 340.06 400.73 162.57 210.61 290.63
(f) Depreciation
376.15 273.72 375.74
and amortisation expenses 663.95 582.49
(g) Other expenses 1,723.90 1,983.60 3,277.40 3089.14 2332.88
Total Expenses (IV) 4,458.22 4,711.51 7,072.42 10225.73 10092.4
V Profit before
exceptional item and tax (III-
747.65 794.76 Nil
IV) VI Exceptional Item
(Refer Note No. 64) 1264.08 597.28
VII Profit before tax
102 189.71 1,612.88
(V+VI) 1264.08 597.28
VIII Tax expenses
(a) Current tax 747.65 984.47 466 465.61 284.14
(b) Tax expenses
135 176 -8.01
relating to earlier year -8.01 4.48
(c) MAT credit
-2.16 -49.44 Nil
utilised/(entitlement) 0 0
(d) MAT credit
entitlement relating to earlier 81.98 84.5 Nil
year 0 0
(e) Deferred tax
-3.86 -11.9 -43.28
(credit)/charge 102.84 21.07
Total Tax Expenses 4.34 1.22 414.71 354.76 300.73
IX Profit for the year from
continuing operations (VII-
215.3 200.38 1,198.17
VIII) X Loss before tax from
discontinued operations 909.32 296.55
XI Tax expense of
532.35 784.09
discontinued operations 4.51 0
XII Loss for the year from
Nil -7.56
discontinued operations (X- 0.38 0

23
XI) (Refer Note No. 62) XIII
Profit for the year (IX+XII)

XIV Other
Nil 1.27
comprehensive income
(a) Items that will
not be reclassified to profit or Nil -8.83 4.51
loss 4.51 4.7
(b) Income tax
relating to items that will not be 532.35 775.26 -0.38
reclassified to profit or loss 0.38 -0.39
(c) Items that will
nill
be reclassified to profit or loss 168.78 24.3
(d) Income tax
relating to items that will be 2.89 -8.23 nil
reclassified to profit or loss 0 0
Total other
-1.38 0.44 4.13
comprehensive income 172.91 28.61
XV Total
Comprehensive income for Nil Nil 1202.3
the year (XIII+XIV) 1082.23 325.16
XVI Earnings per
Nil Nil
equity share
(a) Earnings per
equity share (for continuing 1.51 -7.79
operations) 82.02 172.91 281.63
Basic (in ₹) & Diluted
533.86 767.47
(in ₹) 800 1082.23 310.2
(b) Earnings per
equity share (for discontinued
operations)
Basic (in ₹) & Diluted
36.44 53.68
(in ₹) 65.02 0.04
(c) Earnings per
equity share (for continuing 0 -0.6
and discontinued operations) 0.5 14.96
Basic (in ₹) & Diluted
36.44 53.07
(in ₹) 65.02 62.25 20.3

24
 TREND ANLYSIS
2020 2021 2022 2023 2024
I Revenue from
operations 100 100.0 170.0 225.4 206.6
II Other income 100 94.1 73.0 82.1 167.6
III Total Income (I+II) 100 105.8 166.8 205.3 205.3
IV Expenses
(a) Cost of materials
consumed 100 113.9 195.9 210.4 169.1
(b) Purchases of stock
in trade 100 106.6 310.2 22.0 129.1
(c) Changes in
inventories of finished goods,
stock in trade and work-in-
progress 100 -225.0 - -923.7 866.7
(d) Employee benefits
expenses 100 89.3 113.2 265.8 289.3
(e) Finance costs 100 117.8 47.8 61.9 85.5
(f) Depreciation and
amortisation expenses 100 72.8 99.9 176.5 154.9
(g) Other expenses 100 115.1 190.1 179.2 135.3
Total Expenses (IV) 100 105.7 158.6 229.4 226.4
V Profit before exceptional
item and tax (III-IV) VI
Exceptional Item (Refer Note
No. 64) 100 106.3 - 169.1 79.9
VII Profit before tax
(V+VI) 100 186.0 - 1239.3 585.6
VIII Tax expenses
(a) Current tax 100 131.7 62.3 62.3 38.0
(b) Tax expenses
relating to earlier year 100 130.4 -5.9 -5.9 3.3
(c) MAT credit
utilised/(entitlement) 100 2288.9 - 0.0 0.0
(d) MAT credit
entitlement relating to earlier year 100 103.1 - 0.0 0.0
(e) Deferred tax
(credit)/charge 100 308.3 - -2664.2 -545.9
Total Tax Expenses 100 28.1 - 8174.2 6929.3
IX Profit for the year from
continuing operations (VII-
VIII) X Loss before tax from
discontinued operations 100 93.1 556.5 422.4 137.7

25
 XI Tax expense of
discontinued operations 100 147.3 0.0 0.8 0.0
XII Loss for the year from
discontinued operations (X-XI)
(Refer Note No. 62) XIII Profit
for the year (IX+XII) 100 - - - -
XIV Other
comprehensive income 100 - - - -
(a) Items that will not
be reclassified to profit or loss 100 - - - -
(b) Income tax
relating to items that will not be
reclassified to profit or loss 100 145.6 -0.1 0.1 -0.1
(c) Items that will be
reclassified to profit or loss 100 - - - -
(d) Income tax
relating to items that will be
reclassified to profit or loss 100 -284.8 - - -
Total other comprehensive
income 100 -31.9 - - -2073.2
XV Total
Comprehensive income for the
year (XIII+XIV) 100 - - - -
XVI Earnings per equity
share 100 - - - -
(a) Earnings per
equity share (for continuing
operations) 100 -515.9 - - 18651.0

26
 TREND ANALYSIS INCOME BALANCE

trend anlysis 2020 2021 2022 2023 2024

Revenue from operations 100.0 100.0 170.0 225.4 206.6
Total Expenses (IV) 100.0 105.7 158.6 229.4 226.4
Profit before tax (V+VI) 100.0 186.0 1581.3 1239.3 585.6
Total Tax Expenses 100.0 28.1 9555.5 8174.2 6929.3
Earnings per equity share 100.0 145.6 178.4 170.8 55.7

P&L
12000 trend anlysis

10000 Revenue from operations

8000 Total Expenses (IV)

6000
Profit before tax (V+VI)

4000
Total Tax Expenses

2000
Earnings per equity share

0
2020 2021 2022 2023 2024

INTERPRETATION
- Revenue from operations: Up 106.6% from 100 to 206.6.This significant increase in revenue
suggests that the company has experienced substantial growth in its core business, potentiallydriven
by increased sales, new products or services, or expanded market reach.

- Total Expenses (IV): Up 126.4% (from 100 to 226.4)This substantial increase in total expenses
indicates that the company's costs have risen sharply, potentially outpacing revenue growth. This
could be due to various factors such as increased raw material costs, higher labor expenses, or
investments in new initiatives.

27
- Profit before tax (V+VI): Up 485.6% (from 100 to 585.6)Despite the significant increase in
expenses, the company's profit before tax has surged, indicating effective cost management and
potential operational efficiencies.

- Total Tax Expenses: Up 6829.3% (from 100 to 6929.3)This staggering increase in tax expenses
suggests that the company may be facing significant tax liabilities, potentially due to changes in tax
laws, unfavorable tax rulings, or increased tax audits.

- Earnings per equity share: Down 44.3% (from 100 to 55.7)Despite the impressive growth in revenue
and profit before tax, the company's earnings per share have declined substantially, primarily due to
the massive increase in tax expenses. This decline may impact investor sentiment and the company's
valuation.

28
 CHAPTER :- 4
Common size Analysis

29
 COMMON SIZE ANALYSIS BALANCE SHEET

Particulars 2020 2021 2022 2023 2024

ASSETS 100% 100% 100% 100% 100%
Non-current Assets
Property, Plant and Equipment 26.3% 30.5% 30.5% 26.3% 18.0%
Right of use of Asset 0.0% 0.0% 2.1% 1.9% 1.4%
Capital work-in-progress 9.4% 4.4% 2.1% 2.3% 3.0%
Investment Property 0.1% 0.1% 0.1% 0.1% 0.1%
Other Intangible assets 0.0% 0.1% 0.2% 0.1% 0.1%
Other Intangible Asset under development 0.1% - - - -

Financial assets

Investment in subsidiary 4.6% 4.5% 5.0% 4.6% 37.9%

Investments 36.8% 35.6% 34.2% 33.8% 24.0%

Loans 0.0% - - 0.6% -

Other financial assets 0.0% 0.0% 0.0% 0.0% 0.0%
Other non-current assets 0.1% 0.0% 0.1% 0.2% 0.1%
Total non-current assets 77.4% 85.5% 74.3% 69.9% 84.5%
Current Assets
Inventories 9.3% 8.5% 13.6% 13.3% 7.4%
Investments 1.4% 0.9% 1.6% 6.6% 1.1%
Financial assets
Trade receivables 4.0% 3.0% 5.3% 5.5% 3.6%
Cash and cash equivalents 0.8% 1.2% 3.3% 0.3% 1.2%
Bank balances other than (i) above 0.0% 0.0% 0.0% 0.0% 1.3%
Loans 6.0% 0.1% 0.6% 2.4% 0.2%
Other financial assets 0.1% 0.1% 0.1% 0.1% 0.0%
Other current assets 0.5% 0.7% 1.2% 1.9% 0.7%

30
 Current Tax Assets (Net) 0.6% - -0.1% 0.0% 0.0%
Total current assets 22.6% 14.5% 25.7% 30.1% 15.5%
TOTAL ASSETS 100.0% 100.0% 100.0% 100.0% 100.0%
EQUITY
Equity share capital 0.6% 0.6% 0.7% 0.6% 0.5%
Other equity 45.1% 48.2% 58.0% 64.0% 50.8%
Total equity 45.7% 48.8% 58.7% 64.7% 51.3%
LIABILITIES 100.0% 100.0% 100.0% 100.0% 100.0%
Non-current liabilities % 0.0% 0.0% 0.0% 0.0%
Borrowings 34.1% 28.9% 8.2% 2.6% 23.9%
Other financial liabilities 0.7% 0.7% 0.8% 0.8% 0.6%
Provisions 0.7% 0.8% 1.1% 1.0% 0.8%
Deferred tax liabilities (Net) 1.3% 1.9% 3.0% 2.4% 1.7%
Total non-current liabilities 36.7% 32.2% 13.0% 6.8% 27.1%
Current Liabilities 0.0% 0.0% 0.0% 0.0% 0.0%
Borrowings 4.2% 3.7% 15.5% 16.0% 13.1%
Trade payables due to Micro & Small
0.0% 0.0% 0.1% 0.5% 0.6%
Enterprise
Trade payables due to others than Micro &
2.5% 2.5% 4.3% 3.9% 2.3%
Small Enterprise
Other financial liabilities 5.3% 7.0% 0.8% 0.9% 0.7%
Other current liabilities 1.1% 0.8% 0.0% 1.7% 1.3%
Provisions 4.4% 4.6% 2.2% 5.0% 3.6%
Current tax liabilities (Net) - 0.4% 5.2% 0.5% -
Total current liabilities 17.5% 19.0% 28.4% 28.5% 21.6%
TOTAL LIABILITIES 54.3% 51.2% 41.3% 35.3% 48.7%
TOTAL EQUITY AND LIABILITIES 100.0% 100.0% 100.0% 100.0% 100.0%

31
LIABILITIES

Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

liabilities 100 100 100 100 100
Borrowings 34.1 28.9 8.20 2.60 23.90
Deferred tax liabilities (Net) 1.3 1.9 3.00 2.40 1.70
Total non-current liabilities 36.7 32.2 13 6.8 27.1
Total current liabilities 17.5 19 28.4 28.5 21.6
Provisions 4.4 4.6 2.2 5 3.6

Mar-20

liabilities
9% 2%
Borrowings
19% Deferred tax liabilities (Net)
51%
Total non-current liabilities
1%
Total current liabilities
18%
Provisions

Mar-21

10%2% liabilities
Borrowings
17%
Deferred tax liabilities (Net)
54%
1% Total non-current liabilities
16% Total current liabilities
Provisions

32
 Mar-22

liabilities
2%
18% Borrowings
Deferred tax liabilities (Net)
8%
2% Total non-current liabilities
5% 65%
Total current liabilities
Provisions

Mar-23

liabilities
3%
19% Borrowings
Deferred tax liabilities (Net)
5%
2% Total non-current liabilities
2%
69% Total current liabilities
Provisions

Mar-24

12% 2% liabilities
Borrowings
15%
Deferred tax liabilities (Net)
1% 56%
Total non-current liabilities
14%
Total current liabilities
Provisions

33
INTERPRETATION

-Borrowing : There is 2020 from 34.1% to 2024 from 23.90% which indicated some loan taken in
the year and there is decrease by year 2024 which shown loan repayment on time so it is good for the
company.

- Current liabilities : There is increase in current liabilities from 2020 to 2024 which is good as the
current due is increasing year by year.

- Deferred tax liabilities : Deferred tax liabilities there is increase in higher future tax obligations ,it
can also sign improved profitability

- Provisions: Provisions from 4.4 % to 3.6 % between 2020 and 2024 decrease in provisions financial
health and stability and revenue earn can directly to profits.

ASSETS
MAR-20 MAR-21 MAR-22 MAR-23 MAR-24
ASSETS 100% 100% 100% 100% 100%
CAPITAL WORK-IN-PROGRESS 9.4 4.4 2.10 2.30 3.00
OTHER NON-CURRENT ASSETS 0.1 0.0 0.10 0.20 0.10
TOTAL NON-CURRENT ASSETS 77.4 85.5 74.3 69.9 84.5
INVENTORIES 9.3 8.5 13.6 13.3 7.4
OTHER CURRENT ASSETS 0.5 0.7 1.2 1.9 0.7
TOTAL CURRENT ASSETS 22.6 14.5 25.7 30.1 15.5

Mar-20

assets
11% Capital work-in-progress
0%
4%
Other non-current assets
46% Total non-current assets

35% Inventories
Other current assets
4%
0%
Total current assets

34
 Mar-21

assets
0%7%
4% Capital work-in-progress
Other non-current assets
47% Total non-current assets
40% Inventories
Other current assets
2%
0%
Total current assets

Mar-22
assets
Capital work-in-progress
12% Other non-current assets
1%
6% Total non-current assets
46% Inventories
Other current assets
34%
Total current assets
1%
0%

35
 Mar-23

assets
14% Capital work-in-progress
1%
6% Other non-current assets
46% Total non-current assets
Inventories
32%
1%
0% Other current assets
Total current assets

Mar-24

assets
0%7%
4% Capital work-in-progress
Other non-current assets
47% Total non-current assets
40% Inventories

2%
0% Other current assets
Total current assets

INTERPRETATION
- Capital Work-in-Progress (CWIP): Decrease from 9.4 to 3.00 This indicates a significant reduction
in ongoing capital projects or investments. Bad for the company, as it may indicate a lack of
investment in future growth.

- Other Non-Current Assets: Increase from 0.1 to 0.10. This suggests a small increase in other long-
term assets, such as intellectual property or investments. Good for the company, as it may indicate
diversification or growth in non-core assets.

36
- Total Non-Current Assets: Increase from 77.4 to 84.5.This indicates an overall increase in long-
term assets, including CWIP and other non-current assets. Good for the company, as it may indicate
investment in future growth and sustainability.

- Inventories: Decrease from 9.3 to 7.4. This indicates a reduction in inventory levels, which could
be due to various reasons like sales strategies or supply chain optimization. .

- Other Current Assets: Increase from 0.5 to 0.7 This suggests a small increase in other short-term
assets, such as accounts receivable or cash. Good for the company, as it may indicate improved
liquidity or working capital.

- Total Current Assets: Decrease from 22.6 to 15.5 This indicates an overall reduction in short-term
assets, including inventories and other current assets.Bad for the company, as it may indicate reduced
liquidity or working capital, making it harder to meet short-term obligations.

37
 Common Size Analysis of Profit & Loss Account

2020 2021 2022 2023 2024

I Revenue from operations 103% 109% 101% 94% 103%
II Other income 3% 3% 1% 1% 3%
III Total Income (I+II) 100% 100% 100% 100% 100%
IV Expenses 1% 1% 2% 0% 1%
(a) Cost of materials
consumed 31% 33% 36% 31% 25%
(b) Purchases of stock in
trade 1% 1% 2% 0% 1%
(c) Changes in
inventories of finished goods, stock in
trade and work-in-progress 1% -2% -4% -4% 4%
(d) Employee benefits
expenses 7% 6% 4% 8% 9%
(e) Finance costs 7% 7% 2% 2% 3%
(f) Depreciation and
amortisation expenses 7% 5% 4% 6% 5%
(g) Other expenses 33% 36% 38% 29% 22%
Total Expenses (IV) 2% 4% 19% 11% 6%
V Profit before exceptional
item and tax (III-IV) VI
Exceptional Item (Refer Note No.
64) 17% 17% - 12% 6%
VII Profit before tax
(V+VI) 2% 4% 23% 12% 6%
VIII Tax expenses
(a) Current tax 17% 21% 7% 5% 3%
(b) Tax expenses relating
to earlier year 3% 4% - - -
(c) MAT credit
utilised/(entitlement) 0% -1% - - -
(d) MAT credit
entitlement relating to earlier year 2% 2% - - -
(e) Deferred tax
(credit)/charge - - -1% 1% 0%
Total Tax Expenses - - 6% 3% 3%
IX Profit for the year from
continuing operations (VII-VIII) X
Loss before tax from discontinued
operations 5% 4% 17% 9% 3%
XI Tax expense of
discontinued operations 12% 17% - - -

38
 XII Loss for the year from
discontinued operations (X-XI)
(Refer Note No. 62) XIII Profit for
the year (IX+XII) - - - - -
XIV Other comprehensive
income - - - - -
(a) Items that will not be
reclassified to profit or loss - - - - -
(b) Income tax relating to
items that will not be reclassified to
profit or loss 12% 16% - - -
(c) Items that will be
reclassified to profit or loss - - - 2% 0%
(d) Income tax relating to
items that will be reclassified to profit
or loss - - - - -
Total other comprehensive
income - -- - 2% 0%
XV Total Comprehensive
income for the year (XIII+XIV) - - 17% 11% 3%
XVI Earnings per equity
share - - - - -
(a) Earnings per equity
share (for continuing operations) - - 1% 2% 3%

ANALYSIS OF PROFIT AND LOSS

2020 2021 2022 2023 2024

Revenue from operations 103% 109% 101% 94% 103%
Total Expenses (IV) 2% 4% 19% 11% 6%
Profit before tax (V+VI) 2% 4% 23% 12% 6%
Total Tax Expenses 0% 0% 6% 3% 3%
Earnings per equity share 5% 4% 17% 9% 3%

39
 2020

Revenue from operations

4%
0%
2%
2%
Total Expenses (IV)
Profit before tax (V+VI)
Total Tax Expenses
92%
Earnings per equity share

2021

3%
0% Revenue from operations
3%
4%
Total Expenses (IV)
Profit before tax (V+VI)
Total Tax Expenses
90% Earnings per equity share

2022

Revenue from operations

10%
4% Total Expenses (IV)
14%
Profit before tax (V+VI)
61%
11% Total Tax Expenses
Earnings per equity share

40
 2023

Revenue from operations

2%7%
9% Total Expenses (IV)
9% Profit before tax (V+VI)
Total Tax Expenses
73%
Earnings per equity share

2024

2%
5%3% Revenue from operations
5%
Total Expenses (IV)
Profit before tax (V+VI)
Total Tax Expenses
85%
Earnings per equity share

Interpertation
- Revenue from operations: No change (remains at 103%)The company's revenue has stabilized, with
no growth or decline.

- Total Expenses (IV): Up 4% (from 2% to 6%)Expenses have increased, potentially due to rising
costs or investments in new initiatives.

- Profit before tax (V+VI): Up 4% (from 2% to 6%)Despite the increase in expenses, profit before
tax has also risen, indicating effective cost management.

- Total Tax Expenses: Up 3% (from 0% to 3%)The company now has tax expenses, potentially due
to changes in tax laws or unfavorable tax rulings.

- Earnings per equity share: Down 2% (from 5% to 3%)The decline in earnings per share is likely
due to the increase in tax expenses, offsetting the growth in profit before tax.

41
CHAPTER :- 5
Ratio Analysis

42
 2020 2021 2022 2023 2024
Current ratio 1.29 0.76 0.91 1.06 0.72
Liquid ratio 0.76 0.31 0.43 0.59 0.37
Return on Capital Employed 7.84 8.22 20.94 5.59 4.77
Rate of Return on Equity 4.07 3.44 19 12.11 3.62
Debt -Equity ratio 1.19 1.05 0.70 0.55 0.95
Networking capital 581.71 -537.03 -283.01 182.9 -979.4
Earning par share 1.51 -7.79 82.02 172.91 281.63

Interpretation:-

1. CURRENT RATIO : A decrease in the current ratio from 1.29 in 2020 to 0.72 in
2024 is generally considered bad for the company.The current ratio measures a company's
ability to pay its short-term debts and obligations. A higher ratio indicates a higher level
of liquidity and financial stability, while a lower ratio indicates a lower level of liquidity
and financial stability.In this case, the decrease in the current ratio suggests that the
company's ability to pay its short-term debts and obligations has deteriorated. This could
be a sign of Increased financial distress, Reduced liquidity, Increased risk of default, Poor
cash flow management Over-reliance on debt financing.

2. LIQUID RATIO : A decrease in the liquid ratio (also known as the quick ratio) from
0.76 in 2020 to 0.37 in 2024 is generally considered bad for the company.The liquid ratio
measures a company's ability to pay its short-term debts and obligations with its liquid
assets (cash, accounts receivable, and inventory). A higher ratio indicates a higher level
of liquidity and financial stability, while a lower ratio indicates a lower level of liquidity
and financial stability.In this case, the decrease in the liquid ratio suggests that the
company's ability to quickly convert its assets into cash to pay its debts has deteriorated.

3. RETURN ON CAPITAL EMPLOYED (ROCE): A decrease in the Return on

Capital Employed (ROCE) from 7.84 in 2020 to 4.77 in 2024 is generally considered bad
for the company.ROCE measures a company's profitability and efficiency in using its
capital to generate earnings. A higher ROCE indicates that a company is using its capital
efficiently and generating strong profits, while a lower ROCE suggests that the company
is not using its capital as effectively.The decrease in ROCE suggests that the company's
profitability and efficiency have declined, which could be a sign of Decreased
profitability,Inefficient use of capital, Overinvestment in assets that are not generating
sufficient returns, Increased competition or market pressures and Poor management
decisions.

4. RETURN ON EQUITY :A decrease in the Return on Equity (ROE) from 4.07 in

2020 to 3.62 in 2024 is generally considered bad for the company.ROE measures a
company's profitability by comparing its net income to shareholder equity. A higher ROE
indicates that a company is generating strong profits from its equity, while a lower ROE
suggests that the company is not using its equity as effectively.The decrease in ROE
suggests that the company's profitability and efficiency in using shareholder equity have

43
 declined.

5. DEBT-TO-EQUITY RATIO: A decrease in the Debt-to-Equity ratio from 1.19 in

2020 to 0.95 in 2024 is generally considered good for the company.The Debt-to-Equity
ratio measures a company's level of indebtedness and financial leverage. A higher ratio
indicates higher levels of debt and financial risk, while a lower ratio indicates lower levels
of debt and financial risk.The decrease in the Debt-to-Equity ratio suggests that the
company has Reduced its debt levels.A Debt-to-Equity ratio of 0.95 indicates that the
company has a relatively healthy balance between debt and equity, and is less likely to be
overburdened by debt. This can give investors and creditors more confidence in the
company's financial stability.

6. NET WORKING CAPITAL : A change in Net Working Capital (NWC) from

581.71 in 2020 to -979.4 in 2024 is generally considered bad for the company.Net
Working Capital represents the difference between a company's current assets and current
liabilities. A positive NWC indicates that a company has sufficient current assets to cover
its current liabilities, while a negative NWC indicates a deficiency.The significant
decrease in NWC from 581.71 to -979.4 suggests that the company A negative NWC of -
979.4 indicates a significant deficiency in the company's ability to meet its short-term
obligations, which can lead to financial distress and potential bankruptcy.

7. EARNINGS PER SHARE : An increase in Earnings Per Share (EPS) from 1.51 in
2020 to 281.63 in 2024 is generally considered extremely good for the company.EPS
measures a company's profitability on a per-share basis. A higher EPS indicates higher
earnings and profitability, while a lower EPS suggests lower earnings and
profitability.The significant increase in EPS suggests that the company has Substantially
increased its earnings and profitability Improved its financial performance and efficiency,-
Enhanced shareholder value, Demonstrated strong growth potential,Outperformed
industry averages the industry average EPS growth is not similarly high)An EPS of 281.63
is significantly higher than the 2020 value, indicating a substantial improvement in the
company's financial performance. This could lead to increased investor confidence, higher
stock prices, and a stronger market position for the company. An increase in An increase
in Earnings Per Share (EPS) from 1.51 in 2020 to 281.63 in 2024 is generally considered
extremely good for the company.EPS measures a company's profitability on a per-share
basis. A higher EPS indicates higher earnings and profitability, while a lower EPS
suggests lower earnings and profitability.An EPS of 281.63 is significantly higher than
the 2020 value, indicating a substantial improvement in the company's financial
performance. This could lead to increased investor confidence, higher stock prices, and a
stronger market position for the company. (EPS) from 1.51 in 2020 to 281.63 in 2024 is
generally considered extremely good for the company.

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 CHAPTER :- 6

CONCLUSION

nirma Limited, a prominent conglomerate based in India, has established itself as a leader in several
industries, including consumer products, chemicals, and cement. The company's journey from its
inception in 1969 by Dr. Karsanbhai Patel, with a humble beginning in detergent manufacturing, to
becoming a diversified entity with a strong presence in multiple sectors, reflects its robust growth and
resilience.

Nirma revolutionized the detergent market in India with its low-cost, high-quality products, catering
to the needs of the masses. Over the years, the company diversified its product portfolio to include
personal care, healthcare, and industrial products, cementing its position as a market leader.

Nirma Limited prioritizes quality in its products and operations, adhering to stringent quality
standards and sustainability practices. This commitment not only enhances customer trust but also
aligns with global environmental norms and regulations. Nirma Limited places emphasis on
employee welfare, fostering a culture of growth and development. The company invests in training
and skill development programs to empower its workforce and enhance productivity continues to
focus on innovation, sustainability, and strategic growth initiatives to capitalize on emerging
opportunities in the global market. With a robust foundation built on decades of experience and a
commitment to excellence, Nirma Limited is poised to maintain its leadership position and drive
sustainable growth in the years to come.

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 BIBLIOGRAPHY

- https://www.nirma.co.in/

- https://en.m.wikipedia.org/wiki/Nirma

- https://www.moneycontrol.com/company-facts/nirma/history/n

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