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Tirupati
INTRODUCTION
DEFINITION:
The indicate quotient of two mathematical expressions and the relationship between two
or more things. It evaluates financial position and performance of the firm.
As started in the beginning many diverse groups of people are interested analyzing financial
information to indicate the operating and financial efficiency and growth of firm. These people use ratios
to determine those financial characteristics of firm in which they interested with the help of ratios one
can determine.
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REVIEW OF LITERATURE
FINANCIAL ANALYSIS:
Financial analysis is the process of identifying the financial
strengths and weakness of the firm. It is done by establishing relationships between the items of financial
statements viz., balance sheet and profit and loss account. Financial analysis can be undertaken by
management of the firm, viz., owners, creditors, investors and others.
Internal users
1. Financial executives
2. Top management
External users
1.
2.
3.
4.
5.
6.
7.
Investors
Creditor.
Workers
Customers
Government
Public
Researchers
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Interfirm comparison:
The financial analysis makes it easy to make inter-firm comparison. This comparison can also
be made for various time periods.
Helps in forecasting:
The financial analysis will help in assessing future development by making forecasts
and preparing budgets.
METHODS OF ANALYSIS:
Ramaraja institute of technology & science
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Ratio analysis
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A financial analyst can adopt the following tools for analysis of the financial statements.
These also termed as methods of financial analysis.
A. Comparative statement analysis
B. Common-size statement analysis
C. Trend analysis
D. Funds flow analysis
E. Ratio analysis
STANDARDS OF COMPARISON
The ratio analysis involves comparison for an useful interpretation of the financial
statements. A single ratio in itself does not indicate favorable or unfavorable condition. It should be
compared with some standard. Standards of comparison are:
1. Past Ratios
2. Competitor's Ratios
3. Industry Ratios
4. Projected Ratios
Past Ratios:
Ratios calculated from the past financial statements of the same firm.
Competitor's Ratios:
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Ratio analysis
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Ratios of some selected firms, especially the most progressive and successful competitor at the same
point in time.
Industry Ratios:
Ratios of the industry to which the firm belongs.
Projected Ratios:
Ratios developed using the projected financial statements of the same firm.
The easiest way to evaluate the performance of a firm is to compare its present ratios with past
ratios. When financial ratios over a period of time are compared, it is known as the time series analysis or
trend analysis. It gives an indication of the direction of change and reflects whether the firm's financial
performance has improved, deteriorated or remind constant over time.
INDUSTRY ANALYSIS
To determine the financial conditions and performance of a firm. Its ratio may be
compared with average ratios of the industry of which the firm is a member. This type of analysis is
known as industry analysis and also it helps to ascertain the financial standing and capability of the firm
& other firms in the industry. Industry ratios are important standards in view of the fact that each industry
has its characteristics which influence the financial and operating relationships.
TYPES OF RATIOS
Management is interested in evaluating every aspect of firm's performance. In view of
the requirement of the various users of ratios, we may classify them into following four important
categories:
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Ratio analysis
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1. Liquidity Ratio
2. Leverage Ratio
3. Activity Ratio
4. Profitability Ratio
Current Ratio =
_Current Assets__
Current Liabilities
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Ratio analysis
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Inventories are converted to be liquid. Inventories normally require some time for realizing
into cash; their value also has a tendency to fluctuate. The quick ratio is found out by dividing
quick assets by current liabilities.
Quick Ratio
Current Assets-Inventories
Current Liabilities
Cash Ratio=
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Financial leverage refers to the use of debt finance while debt capital
is a cheaper source of finance: it is also a riskier source of finance.
It helps in assessing the risk arising from the use of debt capital. Two types of ratios are
commonly used to analyze financial leverage.
1. Structural Ratios &
2. Coverage ratios.
Structural Ratios are based on the proportions of debt and equity in the financial structure of firm.
Coverage Ratios shows the relationship between Debt servicing, Commitments and the sources for
meeting these burdens.
The short-term creditors like bankers and suppliers of raw material are more
concerned with the firm's current debt-paying ability. On the other hand, long-term creditors like
debenture holders, financial institutions are more concerned with the firm's long-term financial strength.
To judge the long-term financial position of firm, financial leverage ratios are calculated. These ratios
indicated mix of funds provided by owners and lenders.
There should be an appropriate mix of Debt and owner's equity in financing the firm's
assets. The process of magnifying the shareholder's return through the use of Debt is called "financial
leverage" or "financial gearing" or "trading on equity". Leverage Ratios are calculated to measure the
financial risk and the firm's ability of using Debt to share holder's advantage.
Leverage Ratios can be divided into five types.
3.2.1 Debt equity ratio.
3.2.2 Debt ratio.
3.2.3 Interest coverage ratio
3.2.4 Proprietary ratio.
3.2.5 Capital gearing ratio.
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Ratio analysis
Debt equity Ratio
Tirupati
Debt
Debt Ratio=
Equity
EBIT
Interest
Net worth
Proprietary Ratio
100
= --------------------------------------
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Ratio analysis
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Equity capital
Capital gearing ratio =
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Ratio analysis
Working capital turnover ratio
Sales
Tirupati
Working capital
Sales
Total assets turnover
= ---------------------------Capital
employed.
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Net sales
Fixed asset turnover ratio = ------------------------Fixed assets
indicates a high degree of efficiency in asset utilization and a low ratio reflects inefficient use of assets.
However, in interpreting this ratio, one caution should be borne in mind, when the fixed assets of firm are
old and substantially depreciated, the fixed assets turnover ratio tends to be high because the denominator
of ratio is very low
= -----------------------------Average stock
=
-------------------------------------------Average stock
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This ratio shows the margin left after meeting manufacturing costs. It measures the efficiency of
production as well as pricing. To analyze the factors underlying the variation in gross profit margin, the
proportion of various elements of cost (Labor, materials and manufacturing overheads) to sale may study
in detail.
Gross profit
Gross profit ratio
= ------------------------x 100
Net sales
Operating profit
Operating profit ratio
= ---------------------------x 100
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Net sales
Ratio analysis
Tirupati
Net Profit
Net Profit Ratio
= ---------------------------
x 100
Net sales
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E.B.I.T
Return on investment
100
= ----------------------------------------
Capital employed
Net profit
Earnings per share
= ------------------------------------
x 100
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dividing operating expenses by sales. Operating expenses equal cost of goods sold plus selling expenses
and general administrative expenses by sales.
Operating expenses
Operating expenses ratio
= -----------------------------
x 100
Sales
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The prevalent educational system providing the placement training at a company being a part of the
curriculum has helped in comparison of theoretical knowledge with practical. It has led to note the
convergences and divergence between theory and practice.
The study enables us to have access to various facts of the organization. It helps in
understanding the needs for the importance and advantage of materials in the organization, the study also
helps to exposure our minds to the integrated materials management the various procedures, methods and
technique adopted by the organization. The study provides knowledge about how the theoretical aspects
are put in the organization in terms of described below
To pay wages and salaries.
For the purchase of raw materials, spares and components parts.
To incur day-to-day expenses.
To meet selling costs such as packing, advertising.
To maintain inventories and raw materials, work-in-progress and finished stock.
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OBJECTIVES OF STUDY
1. To study and analyze the financial position of the Company through ratio analysis.
2. To suggest measures for improving the financial performance of organization.
3. To analyze the profitability position of the company.
4. To assets the return on investment.
5. To analyze the asset turnover ratio.
6. To determine the solvency position of company.
7. To suggest measures for effective and efficient usage of inventory.
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Limitation of Study
1. The study is being done from the annual reports provided by the company only
2. Confidential matters like financial position, soundness etc. or naturally not disclosed
fully. This is certainly set back while drawing the conclusion
3. The limited time does not allowed to do more analysis
Research Methodology
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Research Design
In view of the objects of the study listed above an exploratory research design has
been adopted. Exploratory research is one which is largely interprets and already available
information and it lays particular emphasis on analysis and interpretation of the existing and
available information.
To know the financial status of the company.
To know the credit worthiness of the company.
To offer suggestions based on research finding.
Secondary Data
Company balance sheet and profit and loss account. Secondary data is second hand information.
INDUSTRY PROFILE
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Lewis Paul later came up with the carding machine in 1748 and in 1764 the
sampling jenny was also developed. The water frame was invented in 1771 by Richard
Arkwright. The power loom was invented in 1784 by Edmund Cartwright.
In the initial phases, textile mills were located in and around the rivers since
they were powered by water wheels. After the steam engine was invented, the dependence on the
rivers ceased to a great extent.
Today, modern techniques, electronics and innovation have led to a
competitive, low predict textile industry offering almost any type of cloth or design a person
could desire. With its low cost labor base, China has come to dominate the global textile
industry.
The chakra or the spinning-wheel will help to redeem man from the evils of
poverty and ignorance. Gandhi stressed the use of the spinning-wheel as an occupation
supplementary to agriculture.
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India Textile Industry is one of the leading textile industries in the world.
Though was predominantly unorganized industry even a few years back, but the scenario started
changing after the economic liberalization of Indian economy in 1991. The opening up of
economy gave the much-needed thrust to the Indian textile industry, which has now successfully
become one of the largest in the world.
VARIOUS CATEGORIES
Indian textile industry can be divided into several segments, some of which
can be listed as below:
Cotton Textiles
Silk Textiles
Woolen Textiles
Readymade Garments
Hand-crafted Textiles
CURRENT SCENARIO
The Indian textile industry is one of the major sectors of Indian economy
largely contributing towards the growth of the countrys industrial sector. As per the Ministry of
Textiles, the Indian textile industry contributed about 14% to industrial production, 4% to the
countrys GDP and 17% to the countrys export earnings in 2013. It provides direct employment
to over 35 million people and is the second largest provider of employment after agriculture.
India enjoys a significant lead in terms of labor cost per hour over developed countries like US
and newly industrialized economies like Hong Kong, Taiwan, South Korea and China. As per
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data from National Bureau of Statistics, due to steep wage inflation, the average wage cost in
China stood at US$ 450 per month in 2012 as against US$ 200 per month in India.
According to the Ministry of Textiles, the domestic textile and apparel industry
in India is estimated to reach US$ 141 billion by 2021 from US$ 58 billion in 2011. Apparel
exports from India is expected to increase to US$ 82 billion by 2021 from US$ billion 31 billion
in 2011. Total cloth production in India is expected to grow to 112 square meters by FY17 from
62 billion square meters in FY12.
India is rich in traditional workers adept at value-adding
tasks, which could give Indian companies significant margin advantage. However, India's
inflexible labor laws have been a hindrance to investments in this segment. Unlike in home
textiles, garment capacities are highly fragmented and leading Indian textile companies have
been slow to ramp up their apparel capacities, despite strong order flows from overseas buyers
who are trying to diversify out of China The textile industry aims to double its workforce over
the next 3 years.
As a thumb rule, for every Rs. 1 lack invested in the industry, an average of 7
additional jobs is created. Growing at a rapid pace, the Indian Market is being flocked by
foreign investors exploring investment purposes and with an increasing trend in the demand for
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the textile products in the country, a number of new companies and joint ventures are being set
up in the country to capture new opportunities in market.
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Key Points
Supply
Demand
Barriers
entry
Bargaining
power
of
suppliers
Bargaining
Domestic customers - Low for premium and branded product
power
of segments. Global customers- High due to presence of alternate low
customers
cost sourcing destinations
Competition
JOB OPPORTUNITIES
As per the 12th Five Year Plan, the Integrated Skill Development Scheme aims
to train over 26,75,000 people within the next 5 years (this would cover over 2,70,000 people
during the first two years and the rest during the remaining three years). This scheme would
cover all sub-sectors of the textile sector, such as textiles and apparel, handicrafts, handlooms,
jute and sericulture.
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NTC has so far closed 78 mills and has transferred 2 mills in the State of
Pondicherry to the state Government of Maharashtra. NTC is to modernize/set up 24(22+2) mills
by itself through generation of funds from sale of its surplus assets.
JOINT VENTURE
It was also decided to modernize 16 mills through JV route by including
private partners with NTC stake of 51%. NTC has finalized 3 parties namely M/s Alok
Industries, M/s Pantaloon Retail India Ltd (consortium) and M/s Bhaskar Industries Ltd
(consortium) for mills to be revived and run through Joint Venture.
NTC has not transferred the ownership of the land in the arrangement but is
only giving a right to use of the land to Joint Venture Companies (JVC) in Which NTC is the
major shareholder with 51% stake with 5 out of 8 directors on the Board of JVC.
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NTC for the first time in Indian history sold its prime lands of transparent
system, permitting parties to improve bids through reverse auction, and fetched record returns for
them. The funds are being utilized for the revival of the company.
INDUSTRY PRODUCTS
Popular products of family brands like Shahzada Mahamanthri have been
revived in a new look. In addition to it NTC has recently launched a new range of bed linen and
bath end support from Rosebay Interior India Ltd.
VISION OF INDUSTRY
To be a world class eco-friendly integrated Textile Company, catering
primarily to the clothing needs of the nation.
MISSION OF INDUSTRY
To be a leading textile enterprise steadily improving capacity utilization,
economy of operations, productivity, quality, brand image, market share & export.
DOMESTIC MARKET
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INTERNATIONAL MARKET
NTC has been products like Grey Satin, Dyed mulls, Towels, Yarn to US,
UK, Singapore, Malaysia, China and Germany. The main objective of NTC is to provide quality
fabric to consumers at reasonable prices and to meet the requirement of common man by
manufacturing Bed to Bath fabrics.
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- 18
Quantity
Value(in Rs./crores)
kegs)
0.50
0.83
12.11
9.14
44.40
66.31
1089.15
657.34
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Ratio analysis
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2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
47.00
58.00
85.00
50.00
68.00
72.15
3951.35
5267.08
8365.98
9267.12
8123.16
8926.03
The production of cotton which was growing up over the years has decreased in
2012-13.
Philosophy:
1) Assemble best people , delegate authority and dont interfere people make
the difference
2) Business heads are entrepreneurs
3) Mistakes are facts of life. It is response to the error that counts.
Success:
1. Create your luck by hard work
2. Trust + delegation = growth.
Work Culture:
Commitment, Creativity, Efficiency Team spirit.
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India has great advantage in sampling sector and has a presence in all process
of operation and value chain.
Industry has large and diversified segments that provide wide variety of
products.
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Geographical Disadvantages.
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COMPANY PROFILE
TIRUPATI COTTON MILLS
Tirupati cotton mills were established by M/s P.Suryanarayana & Sons Pvt.
Limited in Suryanarayanapuram, Renigunta, Chittoor District; Andhra Pradesh in the year 1956
with a licensed capacity of 30320 spindles and installed of 21040 spindles to manufacture cotton
yarns. The commissioned capacity was further increased to 27860. The mill was inaugurated by
Shri N. Sanjeevaiah Reddy, Chief Minister of Andhra Pradesh on 29th Aug, 1957.
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TAK
E OVER BY NTC
The mill was taken over by Central Government. Under an ordinance
promulgated during 1972 and subsequently the mill was nationalized under the provision
of sick textile undertaking (Nationalization) Act 1974 with effect from 1/4/1974 however
the physical position was take over on 23rd September 1974.
LOCATION
The mill was situated at 2.5 km away from Renigunta and 13 km away
from Tirupati on the State Highway y no.32 towards Chennai. The mill is well connected by
road, rail and air.
LAND PROPERTY
The mill has 89.40 Acres of land out of which 5.22 Acres of land acquired by
Govt. of AP for laying bypass road (Renigunta to Chandragiri) and the mill has received Rs.3.13
lacks (under protest) towards compensation and the same as sent to holding company, New
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Delhi, under advise of the Head office, Bangalore. The residential accommodation provided to
employee occupied 27.04 acres of land identified is to be extent of 47.44 acre
WELFARE
Mill has totally 103 quarters provided to officers, staffs and
workers out of which 68 quarters are occupied .All quarters including guest house
are in dilapidated condition which require major repairs
FINANCIAL PERFORMANCE
The Tirupati Cotton Mill was one of the profits making unit in the
NTO up to 1993. The sale turnover was of Rs.178.29 Lacks during the year 1974-75
and was at Rs.120 Lacks during the year 1994-95 due to various reasons, the
working of the mills receding and it incurring losses. As on 31st March, 1988 the mill
had an accumulated loss of Rs.12.15 Cores with negative net worth of Rs.10.45
Cores. And present running with loss of Rs.8.27 Cores in during the year 2015.
its Wages/Salary
and
claims
the
balance
amount
towards
shortfall
in
ORGANIZATIONAL CHART
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K.BALASUBRAMANIN
(GM)
SV.KRISHNA
(PM)
VUNNI
(AAM)
DOMINIC
AROKYARAJ
S. PRATAP
(AEM)
(SM)
V.MUTHU
V.ERR ANNA
&K.ASWINI
(HEAD TIME
KEEPER)
A.RAVIPRAKASH
&V.RADHIKA
(PRODUCTION &
COTTON CLERKS)
(ACCOUNTANTS)
R.RAJENDRAN
G.RAVI
(ELECTRICIANS)
C.VENKATESWARAL
U
J.ARAVINDAN
(GENERAL CLERK)
V.RADHIKA
(SENIOR
ACCOUNTANT)
K.MUNI REDDY
SALES (DEPT)
P.NAGENDRA
(CLERK)
RAMKUMAR
MOHAN
M.KODANDAREDD
Y
P.VENKATESH
COMPANY OBJECTIVES
Consistent quality.
COMPANY GOALS
1. Zero defective products.
2. Cost effectiveness productivity.
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Ratio analysis
3.
4.
5.
6.
7.
Tirupati
1. BLOW ROOM
a) Reiter Blow Room 1957 year make single line with double sketchers for
processing cotton (poor condition)
b) Lakshmi Reiter Blow Room 1991 year single line sketcher exclusively for
synthetic process (good condition).
2. CARDING CONDITION
a) Lakshmi Reiter makes cards C 1/3 1991/1992
9 Nos.
2 Nos.
8 Nos.
Good
V Poor
V Poor
9 Nos.
Poor
Total
28 Nos.
3. DRAW FRAMES
a) LR make Draw frames DO6 model year 2 Nos. Avg. With 3/3 drafting.
b) LR makes Draw frames DO2 model 1976 year 2 Nos. V. Poor. With 3/5 drafting.
c) LR makes Draw frames DO2s model 1978 year 2 Nos. Avg. With 3/5 drafting.
Total Draw Frames
6 Nos.
4. SIMPLEX
a) LR make LF 1400 model 1990/91/92 year
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6 Nos.
Good
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2 Nos. Poor
drafting system
c) Texaco Howa make 1989 year with SKF1 Nos. Poor 1600 drafting system
5. SPINNING
a) LR makes G 5/1 1992 year with each machine 5 Nos. Avg.
Having 864
Ring
Frames
1957
year
with
400
spindles
15Nos.
Poor
13Nos.
V Poor each,
6. CONE WINDING
a) The mill has padmatex 138 Model 1990 year
1 Nos.
Avg.
4 Nos.
Poor
c) Brady make 1980/81/85 year within 120 drums each
3 Nos.
Poor
7. DOUBLING
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1 Nos.
b) NMM make 1964 year with 340 spindles each with 3 Nos.
V Poor
Poor
LABOR FORCE
The present strength of workers is 127 consisting of 24
permanent, 103 badly and about 100 casual workers. The total strength of staff &
officers of our mill is 16.
MODERNIZATION
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Initial clean-up
Action for easy clean inspection
Improve tentative standards
General inspection
Autonomous inspection
Standardization
Full autonomous maintenance
COMPANY VISION
The cotton yarn industries fortunes are closely linked to
fluctuations in the cotton market any upward movement of the cotton prizes puts
pressure on profit margins of mills operating in the intensely competitive yarn
market. At the same time new entrance with modern mills have the advantage
better productivity and quality after lower prices and the credit facilities to
achieving market entity. This is increased expectation in terms of quality, price &
delivery hence they have been,
Strengthen the business systems for cotton purchase.
Reduce operational costs by improving the productivity of machinery &
employer.
Retain our relationship by improving consistency.
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COMPANY MISSION
The company primary mission is to achieve customer satisfaction
through the collective commitment of employees that is manufacturing and
marketing of cotton products and services.
COMPANY PLC
PROFITS
(In Lacks)
80
60
60
38
40
20
0
-22
2010
-20
2011
2012
2013
2014
2015
-40
-52
-60
-64
-82
-80
-100
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4. RAYMOND
5. RELIANCE TEXTILES
6. JCT LIMITED
7. LAKSHMI MILLS
8. MYSORE SILK (KSIC)
9. VARDHMAN GROUP OF COMPANIES
10. FABINDIA
PRODUCT PROFILE
The Cotton Mill product only single type of product .The product is
name COTTON YARN. The raw materials of the cotton mill are only COTTON and
the sources of Cotton were required from the Cotton Corporation of India Ltd.
2.
3.
4.
5.
6.
7.
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The above seven product are produced in Cotton Mill, because the
Cotton Mill way only single product. Company was not importing and exporting the
product because the products are utilized only within the country .It means local
domestic market within the India.
The above all areas are the main areas to sell the product and also
to move the product within the overall India.
MODE OF SALES
The Mode of Sales is two types.
Direct Sales
Consignment Sales
DIRECT SALES
Direct Sales means selling the products directly to the consumers
and other cloth to the companies. There is no mediate/ blocked to sell the product.
CONSIGNMENT SALES
No credit sales accept even for the Govt organization also. Not
some companies has to receivables the credit sales they are;Ramaraja institute of technology & science
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PRODUCTION
The licensed capacity for manufacturing cotton yarn is 30,320
spindles. The production started with commissioned capacity of 6000 spindles which
used to last increased to 21,040 spindles and subsequently to 29,668 spindle of the
production manufactured to the company
The cotton is measured in kg only. The present machines can
produce 5,500kgs of yarn per day within an average count of the product of 40 %
per day.
The Tirupati Cotton Mill area only profit earns company in Andhra
Pradesh.
QUALITY POLICY
TIRUPATI COTTON MILL aim is to achieve customer satisfaction
through the collective commitment of employees is manufacturing and marketing of
cotton products and services.
To accomplish above TCM focus on,
Establishing supervisor specifications for our products & proceed.
Employing state-of art technologies and robot principles.
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Strengths:
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Year
Current Assets
2011-12
5,73,59,601
3,06,75,680
1.86
2012-13
5,54,25,619
3,66,02,273
1.51
2013-14
Current Assets
6,20,39,947
3,57,66,535
1.73
2014-15
5,98,55,287
Current Liabilities
2,70,11,470
2.21
Current ratio =
-----------------------------------------
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current ratio
2.5
2
1.5
current ratio
ratio
0.5
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
The standard for current ratio is 2:1 normally. During the year 2011-12 the ratio is decreased
to 1.86 during the year 2012-13 the ratio decreased to 1.51 during the year 2013-14 the ratio is increased
to 1.73 during the year 2014-15 the ratio is increased to 2.21. The ratio 2014-15 exactly ratio so the ratio
was satisfactory.
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Quick ratio establishes a relationship between quick, or liquid, assets and current liabilities. An
Asset is liquid if it can be converted into cash immediately or reasonably soon without a loss of value.
Quick Ratio =
Table
Quick Ratio
liabilities
4.1.2
S.NO Year
Quick Assets
Current Liabilities
Quick Ratio
2011-12
4,52,74,667
3,60,75,680
1.25
2012-13
2,76,37,499
3,66,02,273
0.75
2013-14
5,27,91,174
3,57,66,535
1.47
2014-15
3,79,04,668
2,70,11,470
1.40
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quick ratio
1.6
1.4
1.2
1
ratio
quick ratio
0.8
0.6
0.4
0.2
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
The standard normal for the quick ratio 1:1.quick ratio decreased in the year 2011-12 to
1.25 from 0.75. Then, it decreased to 0.75 in the year 2012-13. And it has increased to 1.47 in the year
2013-14 and then it decreased to 1.40 in the year 2014-15. However the ratio was above the standard
normal so the ratio was satisfactory.
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S.NO
Year
Cash& Bank
Balances
Current Liabilities
Cash Ratio
2011-12
25,99,943
3,60,75,680
0.07
2012-13
19,77,055
3,66,02,273
0.04
2013-14
23,94,351
3,57,66,535
0.06
2014-15
0.01
Page 55
Ratio analysis
Tirupati
Page 56
Ratio analysis
Tirupati
cash ratio
0.07
0.06
0.05
ratio
0.04
cash ratio
0.03
0.02
0.01
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
The standard normal for the cash ratio 0.05:1. During the year 2011-12 the
ratio was 0.07and the next year 2012-13 the ratio was decreased to 0.04. During the year
2013-14 the ratio was increased to 0.06 but the next year 2014-15 the ratio was very low.
The company is failed to keeping sufficient cash and bank balances, marketable securities.
Page 57
Ratio analysis
Tirupati
Net
Net
assets
Net Working
Current Assets - Current Liabilities
Capital =
S.NO
Year
2011-12
2,66,83,921
4,19,93,66
7
0.63
2012-13
1,88,23,346
5,66,59,23
2
0.33
2013-14
2,62,73,412
5,93,00,87
1
0.44
2014-15
3,28,43,817
5,32,54,69
3
0.61
Page 58
Ratio analysis
Tirupati
ratio
0.3
0.2
0.1
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
Net working capital ratio is 0.63 in 2011-12 but decreased to 0.33 in
the next year 2012-13. From that year the ratio decreased to 0.33 in 2012-13 and
next year increased to 0.44 in 2013-14 also and increased to 0.61 in 2014-15 but
condition of business working capital is not shortage.
Page 59
Ratio analysis
Tirupati
Total Debt
Debt ratio =
----------------------------------------Total Debt + Net Worth
S.NO
Year
Total Debt
Total Debt +
Net Worth
Debt Ratio
2011-12
20,03,49,489
30,43,47,133
0.65
2012-13
41,16,74,641
71,86,84,354
0.57
2013-14
51,17,06,123
88,34,14,442
0.57
2014-15
1,49,07,786
48,31,00,081
0.03
Page 60
Ratio analysis
Tirupati
0.4
0.3
0.2
0.1
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
This ratio gives results relating to the capital structure of a firm. Debt ratio is 0.08 in the
year 2011-12 it increased to 0.65. During the year 2012-13 the ratio is decreased to 0.57 &the next year
same ratio 2013-14 to 0.57.again it is decreased to 0.03. From the above in fluctuating trend we can
conclude that the companys dependence on debt is decreasing. It is better position in collection of debt.
Page 61
Ratio analysis
Tirupati
Year
Net Worth
2011-12
20,03,49,489
10,39,97,644
1.92
2012-13
41,16,74,641
30,70,09,713
1.34
2013-14
51,17,06,123
37,17,08,319
1.37
2014-15
1,49,07,786
46,81,92,295
0.31
Page 62
Ratio analysis
Tirupati
ratio
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
The ratio gives results relating to the capital structure of a firm. Debt equity
ratio is the year 2011-12 increased to 1.92 & the next year 2012-13 ratio is decreased to1.34.the next year
2013-14 the ratio is increased to 1.37. The next year 2014-15 the ratio is decreased to 0.31. It is not better
position in collection of debt funds.
Page 63
Ratio analysis
Tirupati
Net worth
Proprietary Ratio
100
= --------------------------------------
Year
Net Worth
Proprietary Ratio
2011-12
10,39,97,644
87,27,338
11.91
2012-13
30,70,09,713
1,71,03,000
17.95
2013-14
37,17,08,319
3,66,87,775
10.13
2014-15
46,81,92,295
2,42,64,112
19.29
Page 64
Ratio analysis
Tirupati
proprietary ratio
ratio
20
18
16
14
12
10
8
6
4
2
0
proprietary ratio
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
This ratio indicates the general financial strength of the concerned firm. During the year
2011-12 the ratio is 11.91 & the next year 2012-13 increased to 17.95.during the year 2013-14 decreased
to 10.13 & the next year 2014-15 increased to 19.25. The financial structure is not better position.
Page 65
Ratio analysis
Tirupati
S.NO
Year
Average Stock
2011-12
3,25,67,165
34,08,016
9.55
2012-13
32,03,71,081
65,39,024
4.89
2013-14
23,28,12,321
85,44,103
2.72
2013-15
30,93,41,431
92,38,741
3.34
=
-----------------------------Inventory Turnover Ratio
Average stock
Page 66
Ratio analysis
Tirupati
ratio
10
9
8
7
6
5
4
3
2
1
0
Interpretation:
The above table shows the inventory turnover ratio. The highest ratio was recorded as
9.55 during the year 2011-12, and the lowest ratio was recorded as 2.72 during the year 2013-14. By
seeing this ratio we can say that the company is showing that finished stock is rapidly turnover into sales.
Page 67
Ratio analysis
Tirupati
Sales
Debtors turnover ratio = _________________
Average
Debtors
Year
Sales
Average Debtors
2011-12
35,60,19,032
4,42,65,808
8.04
2012-13
36,01,60,508
2,10,20,651
17.13
Page 68
Ratio analysis
Tirupati
2013-14
26,14,10,580
3,26,57,425
8.00
2014-15
35,65,74,550
2,83,80,062
12.56
10
8
6
4
2
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
Generally more the ratio better is the cash position of the company. In 2011-12, the
companys debtors turnover ratio was reduced as 8.00 times, which increased to 17.13 times in 2012Ramaraja institute of technology & science
Page 69
Ratio analysis
Tirupati
13.the debtors turnover ratio of the company increasing and decreasing year by year it reveals that the
management is showing better performance to connect the debts in time.
Net Sales
Fixed Asset Turnover Ratio =
__________
S.NO
Year
Net Sales
Net
Fixed
Assets
2011-12
35,60,19,032
2,07,09,746
17.19
Fixed Asset
Page 70
Ratio analysis
Tirupati
2012-13
36,01,60,508
3,78,35,887
9.51
2013-14
2,61,41,05,680
3,30,27,458
7.91
2014-15
35,65,74,550
4,04,10,876
8.82
Page 71
Ratio analysis
Tirupati
10
8
6
4
2
0
Interpretation:
The above table shows the fixed assets turnover ratio during the period 2011-12 to 201415.the lower ratio was recorded as 7.91 times in 2013-14, and the highest ratio was recorded as 17.19
times in 2011-12. It is decreasing by every compare to previous year. The company doesnt show the
interest turning out the fixed assets.
Page 72
Ratio analysis
Tirupati
=
---------------------------Total assets turnover
the company.
Year
Net Sales
Total Assets
2011-12
35,60,19,032
7,80,69,347
4.56
2012-13
36,01,60,508
9,32,61,506
3.86
2013-14
26,14,10,580
9,50,67,406
2.74
2014-15
35,65,74,550
80,66,164
4.44
Page 73
Ratio analysis
Tirupati
ratio
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Interpretation:
The above ratio shows the total assets turnover ratio, the highest ratio was recorded as
4.56 times in 2011-12, and the lowest ratio was recorded as 2.74 times in 2013-14.
Page 74
Ratio analysis
Tirupati
Sales
Working capital turnover ratio
= ------------------------------Working capital
Year
Net Sales
Working Capital
2011-12
35,60,19,032
2,12,83,921
16.72
2012-13
36,01,60,508
1,88,23,345
19.13
2013-14
26,14,10,580
2,62,73,412
9.94
Page 75
Ratio analysis
4
2014-15
Tirupati
3,28,43,816
10.85
ratio
20
18
16
14
12
10
8
6
4
2
0
Interpretation:
When compared to 2011-13 the net working capital turnover ratio is decreased in 201112 and few percentages increased in 2012-13 year. The highest value recorded as 19.13 in the year 2011-2
and lowest value recorded as 9.94 percentages in 2012-13.
Page 76
Ratio analysis
Tirupati
Sales
Capital turnover ratio
= ---------------------------Capital employed
Year
Net sales
Capital employee
2011-12
356019032
30,43,47,133
1.16
2012-13
360160508
71,86,84,354
0.50
Page 77
Ratio analysis
Tirupati
2013-14
261410580
88,34,14,442
0.29
2014-15
356574550
48,31,00,081
0.73
0.6
0.4
0.2
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
Ramaraja institute of technology & science
Page 78
Ratio analysis
Tirupati
Capital turnover ratio is 1.16 in the year 2011-12 and it decrease 0.50 in the year 201213 and it is decreased to 0.29 in the year 2013-14 and it is increased to 0.73 in the year 2014-15.
Gross profit
Gross profit ratio
= ------------------------x 100
Net sales
S.NO
Year
Gross Profit
Ratio
Page 79
Ratio analysis
Tirupati
2011-12
3,05,51,866
35,60,19,032
8.58
2012-13
3,97,89,427
36,01,60,508
11.04
2013-14
2,85,98,259
2,61,410,580
10.94
2014-15
4,72,33,118
35,65,74,550
13.25
6
4
2
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
The above table shows the gross profit ratios. The highest gross profit ratio
was recorded as 13.25% in 2013-14 and the lowest gross profit ratio was recorded as 8.58%
in 2011-12 by seeing this ratio, we can say that the gross profit of the firm is bad because the
Ramaraja institute of technology & science
Page 80
Ratio analysis
Tirupati
Net Profit
Net Profit Ratio
= ---------------------------
x 100
Net sales
Page 81
Ratio analysis
Tirupati
S.NO
Year
Net Profit
Net Sales
2011-12
4,19,515
35,60,19,032
0.11
2012-13
4,42,689
36,01,60,508
0.12
2013-14
5,64,824
26,14,10,580
0.21
2014-15
6,48,920
35,65,74,550
0.18
Page 82
Ratio analysis
Tirupati
ratio
0.1
0.05
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
The above table shows the net profit percentage. 2011-13 the net profit every year
increase few percentage and 2013-14 net profit decreased compare to previous year. The company
maintaining the smooth growth percentage in net profit.
Page 83
Ratio analysis
Tirupati
The
E.B.I.T
Return on investment
100
= ----------------------------------------
Capital employed
conventional approach of calculated ROI is to divide PAT by investment.
Year
E.B.I.T
Capital Employed
Return On Investment
2011-12
22446906
30,43,47,133
7.37
2012-13
52266978
71,86,84,354
7.27
2013-14
64698605
88,34,14,442
7.32
2014-15
82715966
48,31,00,081
17.12
Page 84
Ratio analysis
Tirupati
return on investment
18
16
14
12
ratio
10
return on investment
8
6
4
2
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
Return on investment is increases in all years. But, in the year 2014-15, it reached to
highest is 17.12 in the year 2014-15.
Page 85
Ratio analysis
Tirupati
Net profit
Return on equity share holders fund
100
= ------------------------------------
Year
Net Profit
2011-12
419515
10,39,97,644
0.40
2012-13
442689
30,70,09,713
0.14
2013-14
564824
37,17,08,319
0.15
2014-15
648920
46,81,92,295
0.13
Page 86
Ratio analysis
Tirupati
0.2
0.15
0.1
0.05
0
2011-12
2012-13
2013-14
2014-15
year
Interpretation:
Return on equity in the year 2011-12 is 0.40 and it is decreased suddenly to 0.14 in the
year 2012-13 and the next year increased to 0.15 in 2013-14. During the year decreased to 0.13 in 201415.return on equity of the company is at does not satisfactory
Page 87
Ratio analysis
Tirupati
FINDINGS
The current ratio of the company is well the standard 2:1 throughout the study period. It decreases
from 2.21times to 1.51 times which indicates the firm is in a very good position to meet its short
term obligations.
Generally the quick ratio standard is 1:1 throughout the study period it from 1.48times to
0.76times. It shows that the company is maintaining sufficient investments in quick assets.
The debit ratio of the company slightly increased from 0.90 to 0.94 times, but not up to the
standard ratio 1:3. It is mainly caused by decrease in total tangible assets.
The stock turnover ratio of the company has been increased from 27.22 times to 95.50 times. It
indicates the company sale has been increasing rapidly.
The fixed assets turnover ratio is increasing from 7.91 times to 17. Times fixed assets turnover
ratio is increasing year by year and it reveals that the company is showing better performance in
turning out its fixed assets.
Page 88
Ratio analysis
Tirupati
SUGGESTIONS
The company shall maintain the stable financial position. So that, the company can earns better
profits.
The company may increase investment in current assets to meet its short-term obligations.
He company needs to adopt sales forecasting and budgetary control methods to check the rising
expenses.
The company may increase its capital employed turnover ratio by increasing sales every year.
Page 89
Ratio analysis
Tirupati
CONCLUSION
Liquidity ratios, both current ratio and quick ratio are showing effectiveness in liquidity as in all
the years current ratio is greater than the standard 2:1 and quick ratio is greater than the standard
1:1 ratio.
The firm is maintaining a low cash balance and marketable securities which means they done
cash payments.
Debt equity ratio, solvency ratio and interest coverage ratio are showing an average increase in
the long term solvency of the firm.
The proprietary ratio is showing an average increase which means, the shareholders have
contribute more funds to the total assets.
Average payment period of the firm is showing the credit worthiness of the firm to its suppliers.
Fixed assets turnover ratio is showing that the firm needs lesser investment in fixed assets to
generate sales.
The gross profit ratio, net profit ratio is showing the increasing trends. The profitability of the
firm the increasing.
The interest that has to be paid is very less when compared to the sales. The firm is not utilizing
the debt conservatively.
The firm is retaining much of the earnings (based on dividend payout ratio).
Page 90
Ratio analysis
Tirupati
The company financial performance is very good and also they will increase their business year
by year by expanding their branches.
Schedule no
SOURCE OF FUNDS
a. Shareholder Funds
i.
Share capital
ii.
Share, pending allotment(state
GOVT)
iii.
Advance against equity
iv.
Reserves & surplus
b. Loan Fund
1) Secured loan
2) Unsecured loan
31.03.2012
31.03.2011
1,35,34,000
1,35,34,000
I.
9,04,63,644
9,04,63,644
3
4
20,03,49,489
15,57,99,161
TOTAL
II.
Application Funds
a) Fixed assets
i.
Gross block
ii.
Less: depreciation reserve
iii.
Net block
iv.
Capital W.I.P
TOTAL
b) investments
c) current assets, loans & advances
i.
inventories
ii.
sundry deposits
iii.
cash and bank balances
iv.
other current assets
v.
loans & advances
vi.
inter-sub office current account
30,43,47,133
25,97,96,805
6,24,03,194
5,36,75,856
87,27,338
87,27,338
-
6,82,55,395
6,35,37,553
47,17,841
47,17,841
-
7
8
9
10
11
14
6,54,63,656
6,965
25,99,943
59,40,852
1,00,57,334
-
1,28,56,878
16,87,720
15,01,446
39,86,934
72,37,709
-
8,40,68,751
2,72,70,687
3,33,98,474
1,51,74,224
2,22,49,392
1,55,20,117
Total A
Less:
Current liabilities and provisions
i.
current liabilities
ii.
provisions
Ramaraja institute of technology & science
12
13
Page 91
Ratio analysis
Tirupati
iii.
iv.
14
14A
3,79,62,727
8,65,35,425
(24,66,674)
-
1,00,61,778
4,78,31,288
(2,05,60,600)
-
29,80,86,469
27,56,39,563
30,43,47,133
25,97,96,805
Profit & loss account for the year ending 31st march, 2012
particulars
Schedule no
31.03.2012
31.03.2011
Income
Sales
Inter-sub office sales/income
Inter-unit sales/income
15
16
16 A
11,35,58,045
16,70,714
12,98,86,056
72,42,416
Job charges
Other income
17
18
4,33,749
13,13,505
Increase/(decrease) in stock
19
4,72,59,947
(3,21,66,584)
16,29,22,457
10,62,75,394
20
10,73,30,207
6,55,80,615
21
21A
16,30,409
-
16,56,984
-
22
23
24
3,13,93,078
2,77,71,103
1,92,35,740
3,03,94,193
2,15,74,315
1,45,51,351
Provisions
25
TOTAL
Expenditure
Consumption of raw materials
Page 92
Ratio analysis
Tirupati
Depreciation
3,18,037
2,32,955
-
18,76,78,577
13,39,90,414
(2,47,56,120)
31,107
22,61,720
(2,77,15,020)
13,207
14,10,67,248
16,385
-
1,66,470
-
Income tax
Deferred tax
Tax under mat
2,24,46,906
-
11,35,31,906
-
(2,24,46,906)
11,35,31,906
(27,56,39,563
)
(29,80,86,469
)
(3,89,17,470)
26
27
27,56,39,563
)
Page 93
Ratio analysis
Tirupati
Schedule
no
I.
EQUITY AND LAIBILITIES
a) Shareholders Funds
i.
Share capital
ii.
surplus
31.03.2013
31.03.2012
1
2
13,534,000
(32,05,43,713
)
(30,70,09,713
)
13,534,000
(26,82,76,734
)
(25,47,42,734
)
39,90,60,001
3,99,493
1,22,15,147
41,16,74,641
3,99,493
3,99,493
1,26,39,199
35,32,60,843
11,725,921
79,21,187
41,33,243
2,57,46,348
4,95,86,699
15,42,51,628
2,61,51,714
53,24,729
9,69,806
3,24,46,250
13,09,64,358
1,71,03,000
37,96,320
-
1,74,72,622
-
Sub Total(1)
b) Non Current Liabilities
i.
Long term borrowings
ii.
Deferred tax liabilities (net)
iii. other long term liabilities
iv. long term provisions
Sub Total(2)
c) Current Liabilities
i. Short term borrowings
ii. Trade payable
iii. Other current liabilities
iv. Short term provisions
v. Inter-sub office accounts
vi. Inter-unit accounts
Sub Total(3)
Total (1+2+3)
II.
I.
II.
III.
IV.
4
5
6
7
8
9
20
20A
Assets
1) Non Current Assets
a. Fixed Assets
Tangible assets
Intangible assets
Capital work in progress
Intangible assets under development
10(1)
10(2)
Page 94
Ratio analysis
b.
c.
d.
e.
Tirupati
Noncurrent investments
Deferred tax assets(net)
Long term loans & advances
Other noncurrent assets
Sub Total(1)
2) Current Assets
a. Current investments
b. inventories
c. trade receivable
d. cash and bank balances
e. short term loans and advances
f. other current assets
g. inter- sub office current accounts
h. inter-unit current accounts
Sub Total(2)
Total (1+2)
11
12
13
14
15
16
17
18
19
20
20A
2,08,99,320
1,93,57,723
10,33,923
4,12,90,467
1,74,72,622
1,91,56,323
10,33,923
3,76,62,869
4,46,75,997
6,02,66,200
19,77,055
7,91,899
52,49,509
11,29,60,660
15,42,51,628
8,75,16,967
17,487
14,65,647
4,55,371
38,45,655
9,33,01,489
13,09,64,358
PROFIT & LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
particulars
I.
revenue from operations
Inter-sub office revenue
Inter-unit revenue
II.
other income
III.
Total Revenue
IV.
Expenses
Cost of material consumed
Purchase of stock in trade
Inter sub-office purchase/expenses
Inter-unit purchase/expenses
Change in inventories
Employees benefit expenses
Finance cost
Depreciation and amortization expanses
Manufacturing, administrative and selling expenses
Provisions
TOTAL EXPENSES
V.
Profit/(loss)before exceptional, extraordinary
items and tax(III-IV)
VI.
Prior period income
Ramaraja institute of technology & science
Note no
31.03.2013
31.03.2012
21
22
22A
23
18,15,04,234
69,85,914
29,11,313
19,14,01,461
8,80,74,656
2,78,67,246
9,06,979
11,68,48,882
24
10,50,63,725
56,715
3,06,97,768
36,236,236
3,42,39,096
12,69,085
3,62,84,002
60,659
24,39,07,288
(5,25,05,827
)
76,913
11,79,82,079
1,80,222
(1,63,73,391)
2,73,15,174
3,57,86,630
8,34,985
2,14,16,237
18,71,41,937
(7,02,93,055)
25
25A
26
27
28
29
30
31
(2,26,653)
Page 95
Ratio analysis
Tirupati
VII.
Exceptional items
Debt written off
Old assets written off
Provisions written back
Reserves written back
VIII.
Profit/(loss)before extraordinary items and
tax(V+VI+VII)
IX.
Extraordinary items
X.
Profit/(loss)before tax
32
XI.
Tax expenses
Current taxes
MAT credit entitlement
a. Net current assets
b. Deferred taxes
c. Tax adjustment of previous years(net)
XII.
Profit/(loss)for the period for the continuing
operations(X-XI)
(5,24,28,913
)
1,61,934
(5,22,66,978
)
3,82,981
(7,01,36,727)
(5,22,66,978
)
(6,06,53,909)
94,82,818
(6,06,53,909)
Schedu
le no
I.
EQUITY AND LAIBILITIES
A. Shareholders Funds
i) Share capital
ii) surplus
31.03.2014
31.03.2013
1,35,34,000
(38,52,42,319)
1,35,34,000
(32,05,43,713)
(37,17,08,319)
(30,70,09,713)
4
5
6
7
50,07,61,869
3,73,520
1,05,70,733
51,17,06,123
39,90,60,001
3,99,493
1,22,15,147
41,16,74,641
8
9
10
11
22
22A
3,13,87,790
84,32,293
38,01,578
4,36,21,661
18,36,19,466
1,17,85,921
79,21,187
41,33,243
4,95,86,699
15,42,51,628
2
3
Sub Total(1)
B. noncurrent liabilities
i)
long term borrowings
ii)
deferred tax liabilities(net)
iii)
other long term liabilities
iv)
long term provisions
Sub Total(2)
C. current liabilities
i)
Short term borrowings
ii)
Trade payable
iii)
Other current liabilities
iv)
Short term provisions
v)
Inter-sub office accounts
vi)
Inter-unit accounts
Sub Total(3)
Total (1+2+3)
II.
Assets
1. Non Current Assets
Page 96
Ratio analysis
i)
ii)
iii)
iv)
Tirupati
a. Fixed Assets
Tangible assets
Intangible assets
Capital work in progress
Intangible assets under development
Sub Total
b. Noncurrent investments
c. Deferred tax assets(net)
d. Long term loans &
advances
e. Other noncurrent assets
Sub Total(1)
2. Current Assets
a. Current investments
b. inventories
c. trade receivable
d. cash and bank balances
e. short term loans and
advances
f. other current assets
g. inter- sub office current
accounts
h. inter-unit current accounts
Sub Total(2)
Total (1+2)
12(I)
12(II)
3,66,87,775
3,66,87,775
1,93,57,723
1,71,03,000
37,96,320
2,08,99,320
1,93,57,723
15
9,45,761
5,69,91,259
38,40,519
4,40,97,563
16
17
18
19
20
8,88,91,945
2,55,03,543
23,94,351
9,84,471
4,46,75,997
6,02,66,200
19,77,055
7,91,899
21
22
43,07,136
-
24,42,913
-
22A
45,46,759
12,66,28,206
18,36,19,466
11,01,54,064
15,42,51,628
13
5
14
PROFIT & LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2014
particulars
I.
revenue from operations(gross)
Less: excise duty
revenue from operations(net)
Inter-sub office revenue
Inter-unit revenue
II.
other income
III.
Total Revenue
IV.
Expenses
Cost of material consumed
Purchase of stock in trade
Inter sub-office purchase/expenses
Ramaraja institute of technology & science
Note no
31.03.2014
31.03.2013
23
13,43,24,283
13,43,24,283
30,77,122
74,38,001
18,84,705
18,03,61,268
1,80,36,1268
11,42,966
69,85,914
29,11,313
14,67,24,112
19,14,01,461
13,46,58,573
-
10,50,63,725
-
24
24A
25
26
27
Page 97
Ratio analysis
Tirupati
Inter-unit purchase/expenses
Change in inventories
Employees benefit expenses
Finance cost
Depreciation and amortization expanses
Manufacturing, administrative and selling expenses
Provisions
TOTAL EXPENSES
V.
Profit/(loss)before exceptional, extraordinary
items and tax(III-IV)
VI.
Prior period income
VII.
Exceptional items
Debt written off
Old assets written off
Provisions written back
Reserves written back
VIII. Profit/(loss)before extraordinary items and
tax(V+VI+VII)
IX.
Extraordinary items
X.
Profit/(loss)before tax
27A
28
29
30
31
32
33
2,02,354
(4,12,29,257)
3,60,07,076
3,75,58,169
34,42,356
4,04,15,237
-
56,715
3,06,97,768
3,62,36,236
3,42,39,096
12,69,085
3,62,84,002
60,659
21,10,54,510
(6,43,30,398)
23,49,07,288
(5,25,05,827
)
76,913
(2,84,932)
(5,39,560)
4,56,284
(6,46,98,605)
34
XI.
Tax expenses
Current taxes
MAT credit entitlement
a. Net current assets
b. Deferred taxes
c. Tax adjustment of previous years(net)
XII.
Profit/(loss)for the period for the continuing
operations(X-XI)
(6,46,98,605)
(6,46,98,605)
(5,22,66,978
)
1,61,934
(5,22,66,978
)
(5,22,66,978
)
Schedule
no
I.
EQUITY AND LAIBILITIES
1. Shareholders Funds
a. Share capital
b. Reserve & surplus
Sub Total(1)
Ramaraja institute of technology & science
2
3
31.03.2015
31.03.2014
(46,81,92,295
)
(468192295)
(38,52,42,319
)
(38,52,42,319
)
Page 98
Ratio analysis
2.
a.
b.
c.
d.
4
5
6
7
3,71,210
1,45,36,576
1,49,07,786
3,73,520
1,05,70,733
1,09,44,253
8
9
10
11
22
22A
22B
1,61,35,519
85,28,715
25,54,504
55,97,49,845
58,69,68,583
13,36,84,074
3,13,87,790
84,32,293
38,01,578
49,49,38,146
53,85,59,808
16,42,61,743
2,42,64,112
2,42,64,112
38,11,892
2,80,76,004
3,66,87,775
3,66,87,775
37,52,357
4,04,40,132
10,09,48,481
13,75,585
5,26,164
15,48,524
12,09,316
10,56,08,070
13,36,84,074
8,88,91,945
2,55,03,543
23,94,351
9,84,471
15,00,540
12,38,21,610
16,42,61,743
Sub Total(2)
3.
a.
b.
c.
d.
e.
f.
g.
II.
1.
A)
a.
b.
c.
d.
B)
C)
D)
E)
2.
a.
b.
c.
d.
e.
f.
g.
h.
Tirupati
current liabilities
Short term borrowings
Trade payable
Other current liabilities
Short term provisions
Inter-sub office accounts
Inter-unit accounts
Head office fund, loans and current account
Sub Total(3)
Total (1+2+3)
Assets
Non Current Assets
Fixed assets
Tangible assets
Intangible assets
Capital work in progress
Intangible assets under development
Sub Total
Noncurrent investments
Deferred tax assets(net)
Long term loans & advances
Other Non Current Assets
Sub Total(1)
Current Assets
Current investments
inventories
trade receivable
cash and bank balances
short term loans and advances
other current assets
inter- sub office current account
inter-unit current accounts
Sub Total(2)
Total (1+2)
22(I)
22(II)
13
5
14
15
16
17
18
19
20
21
22
22A
PROFIT & LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2015
Page 99
Ratio analysis
Tirupati
particulars
I.
revenue from operations(gross)
Less: excise duty
revenue from operations(net)
Inter-sub office revenue
Inter-unit revenue
II.
other income
III.
Total Revenue
IV.
Expenses
Cost of material consumed
Purchase of stock in trade
Inter sub-office purchase/expenses
Inter-unit purchase/expenses
Head office interest
Change in inventories
Employees benefit expenses
Finance cost
Depreciation and amortization expanses
Manufacturing, administrative and selling expenses
Provisions
TOTAL EXPENSES
V.
Profit/(loss)before exceptional, extraordinary
items and tax(III-IV)
VI.
Prior period income/(expenses)
VII.
Exceptional items
Debt written off
Old assets written off
Provisions written back
Reserves written back
VIII. Profit/(loss)before extraordinary items and
tax(V+VI+VII)
IX.
Extraordinary items
X.
Profit/(loss)before tax
XI.
Tax expenses
Current taxes
MAT credit entitlement
a. Net current assets
b. Deferred taxes
c. Tax adjustment of previous years(net)
XII.
Profit/(loss)for the period for the continuing
operations(X-XI)
Note no
31.03.2015
31.03.2014
23
15,05,62,870
15,05,62,870
29,71,287
17,13,020
16,19,196
13,43,24,283
13,43,24,283
30,77,122
74,37,791
18,84,915
15,68,66,373
14,67,42,112
26
12,41,97,038
13,46,58,573
27
27A
27B
28
29
30
90,151
3,89,70,900
(1,28,72,864)
4,38,20,560
32,16,726
38,99,385
3,68,12,962
23,81,34,860
(8,12,68,487)
2,13,094
3,66,40,400
(4,12,29,257)
3,60,07,076
9,17,769
34,42,356
4,04,04,497
21,10,54,510
(6,43,30,398)
(14,47,479)
(2,84,932)
(8,27,15,966)
(5,39,560)
(8,27,15,966)
(6,49,68,605)
(8,27,15,966)
(6,46,98,605)
24
24A
25
31
32
33
34
4,56,284
(6,49,68,605)
Page 100
Ratio analysis
Tirupati
BIBLIOGRAPHY
FINANCIAL MANAGEMENT
I.M. pandey
Narang
Ramaraja institute of technology & science
Page 101
Ratio analysis
FINANCIAL MANAGEMENT
Tirupati
Jai
FINANCIAL MANGEMENT
prasanna
Chandra
FINANCIAL MANAGEMEN
R.P. Rustagi
WEB SITES
www.ntc@yahoo.co.in
www.google.com
www.yahoo.com
Page 102