Anantha PVC LTD

A STUDY ON COMPARATIVE BALANCE SHEET AT
ANANTHA PVC PIPES PVT LTD.
A project report submitted to JNTU, Anantapur in
Partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
BY
N.SAMREEN BANU
(13JC1E0064)
Under the guidance of
Mr. T.Md.IMTHIYAZ
Assoc. professor
Department of Business Management
Bheemi Reddy Institute of Management Science.
( Approved by AICTE. Affiliated to JNTUA, Anantapur)
Alur road, Adoni-518301, Kurnool dist
(2013-2015)
CERTIFICATE
This is to certify that Miss.N.SAMREEN BANU, Regd. No.13JC1EOO64 has

successfully completed the project work entitled A STUDY ON COMPARATIVE
BALANCE SHEET at Anantha PVC Pipes Pvt Ltd., in partial fulfillment for the award
of the degree of Master of Business Administration, under the guidance of
Mr.T.Md.IMTIYAZ , Assistant Professor in the department of Business Management,
Bheemi Reddy Institute of Management Science, Adoni, during the academic year 2013-
2015.
DECLARATION
I hereby declare that the project report entitled A STUDY ON COMPARATIVE

BALANCE SHEET at ANANTHA PVC Pipes Pvt Ltd., is an original and bona fide
work of my own in the partial fulfillment of the requirement for the award of the Degree
Master of Business Administration and submitted to the BHEEMI REDDY INSTITUTE
OF MANAGEMENT SCIENCE,ADONI. Under the guidance of
Mr.T.Md.IMTHIYAZ ,Assistant professor and it has not been submitted to any other
University or Institution earlier. The empirical conclusions and findings in this report are
based on the Information collected during my study period
ACKNOWLEDGEMENT
I express my heart full and sincere thanks to Mr.T.SANJEEV KUMAR, HOD BHEEMI
REDDY INSTITUTE OF MANAGEMENT SCIENCE, ADONI , and all the faculty of
BIMS for their synergy and extra mile support.
My heart full thanks to Mr.T.Md.IMTHIYAZ NAWAZ Assistant professor in BIMS for

his guidance and timely advice which helped me lot to complete my project successfully.
I finally extend my thanks to NANDI Groups for help me to doing project and spent their
valuable time with me in collection of data.
A STUDY ON COMPARATIVE BALANCE SHEET
ABSTRACT
The comparative balance sheet analysis is the study of the trend of some items group of
items and computed items in two or more balance sheet of the same business enterprise on
different annual reports. The changes in periodic balance sheet items reflected the conduct
of a business. The changes can be observed by comparison of the balance sheet at the
beginning and at the end of a period and these changes can help in forming an opinion
about the of an enterprise. The comparative balance sheet has two columns for data
original balance sheet. The third column is used to show increase or decrease in figures.
The fourth column may be added for giving percentage of increase or decrease.
The tool used for study is the cash flow statement. A cash flow is a financial statement that
shows how changes in balance sheet accounts and income affect cash and cash
equivalents, and breaks the analysis down to operating, investing and financing activities
.Essentially, the cash flow statement is concerned with the flow of cash in and out of the
business. The statement captures both the current operating results and the accompanying
changes in the balance sheet.
Accord Business School Page 1

CONTENTS
CHAPTER NO. TITLE OF THE CONTENT PAGE. NO
Introduction 4
Objectives of the study 5
Need for the study
6
Scope of the study
7
Research Design
CHAPTER-1 Research Methodology 8
Limitations of the study 9
10
Industry profile 11-17
CHAPTER-2 Company profile 18-25
Literature Review &Theoretical 26-31
CHAPTER-3 framework
Data Analysis & Interpretation 32-50
CHAPTER-4
Findings 51
CHAPTER-5 Suggestions 52
Conclusion
53
Bibliography
54

o Introduction
o Objectives of the study
o Need for the study
o Scope of the study
o Research Design
o Research Methodology
o Limitations of the study

INTRODUCTION
Comparative Balance sheet as on two or more different dates can be used for comparing
assets and liabilities and finding out any increase or decrease in those items. Thus, while in
a single balance sheet the emphasis is on present position, it is on change in the
comparative balance sheet .Such a balance sheet is very useful in studying the trends in an
enterprise.
According to American Institute of Certified Public Accountants the presentation of

comparative financial statements in annual and other reports enhances the usefulness of
such reports and brings out more clearly the nature and trend of current changes affecting
the enterprise. Such presentation emphasizes the fact that statements for a series of periods
are far more significant than those of a single and that the accounts of one period are but
an installment of what is essentially a continuous history. In any one year, it is ordinarily
desired that the balance sheet, the income statement and the surplus statement be given for
one more preceding year as well as for the current year.

OBJECTIVES OF THE STUDY
To analyze different items of assets & liabilities in absolute balances of two or more
comparative dates.
To know the financial position of ANANTHA PVC Pipes Pvt Ltd Ananthapur.
To effective decision making requires evaluation of the past performance of companies &
assessment of their future prospects.
Comparative balance sheet is useful in analyzing the changes overtime.
To determine the future trends of assets, liabilities & capital which helps the planning
process.

NEED FOR THE STUDY
Balance sheet shows the financial position of the company. But to know the growth rate of
company we need to study comparative balance sheet.
Another need to study the comparative balance sheet to know how the company maintains
proper assets & liabilities in long term.

SCOPE OF THE STUDY
The study is confined to comparative balance sheet for the period of five years of the
ANANTHA PVC Pipes pvt Ltd Ananthapur.
Purpose of comparative balance sheet is to diagnose the information contained in balance
sheet so as to judge the profitability & financial soundness of the firm.
Comparative balance sheet is to measure the short term and long term solvency position of
the business.

RESEARCH DESIGN
The research has been done to know the financial position of ANANTHA PVC PIPES
PVT LTD. The method of research is descriptive method and descriptive method is the
process of analyzing and interpreting the existing data of the firm and making some
suggestion to the company.

RESEARCH METHODOLOGY
Science of studying how research is done systematically & scientifically.
Sources of data
The data is collected in two ways both primary & secondary sources most of the analyze
are based on secondary data.
Primary sources
The primary information is collected from the financial manager of the company i.e.,
annual report of the company.
Secondary sources
The most of the information is collected from they financial related books & internet.

LIMITATIONS OF THE STUDY
The result of the study are limited to the available information

The suggestions and findings may not be a constraint to be follow in all cases.

INDUSTRY PROFILE
Introduction:
Plastic have become synonymous with modern living. It is undoubtedly a product, which
has penetrated extensively into the common mans life. No wonder the industry has
achieved in terms of supply of raw material expansion and diversification of processing
capabilities and manufacturing of processing machinery and equipment.
This versatile material with its superior qualities such as light weight, easy process ability
corrosion resistance, energy conservation, no toxicity etc. many substitute to a large extent
many conventional and costly industrial materials like wood, metal, glass, jute, lather etc.,
in the future. The manifold applications of plastics in the field of automobiles, electronics,
electrical, packaging and agriculture give enough evidence of the immense utility of
plastics.
At 80 percent of total requirement for raw material and almost all types of plastic
machines required for the industry are indigenously available. The present investment in
all the three segments of the industry namely production of raw materials, expansion and
diversification of processing capacities, manufacturing of processing machinery and
ancillary equipment is Rs.1250 crores and it provides employment to more than eight lakh
people.
On account of their inherent advantage in properties and versatility in adoption and use,
plastics have come to play a vital role in a variety of applications, the world over. In our
country, plastics are used in making essential consumer goods of daily use for common
man such as baskets, shopping bags, water bags, water bottles, school bags, tiffen boxes,
hair combs, tooth brushes, spectacle frames and fountain pens, they also applications in
field like packaging, automobiles, and transportation, engineering, electronics,
telecommunications, defense, medicine, and building and construction. Plastics are
growing in importance in agriculture and water management. The Govt. of India
recognizing the importance of plastics in agriculture appointed on march 7th, 1981 a
National Committee on the use of plastics in agriculture under the chairmanship of
Dr.G.V.K.Rao. This committee has forecast a tremendous growth of drip irrigation

through a net work of plastic pipes and tubes. In its opinion large scale adoption of
irrigation would lead to sports in demand for PVC pipes, L.D.P.E tubes and polypropylene
emitters. The committee made a number of recommendations for promoting the use of
plastics. The implementation of recommendations would go along away in increasing the
consumption of plastics which present is very low. The rigid pipes, flexible pipes and
sheeting, which are being used for agricultural operations to carry out water place to place
and also lining of ponds and reservoirs to reduce see page and most important in drip
irrigation system.
Export of plastics goods:
Plastics have excellent potentialities. Our country is equipped with all kind of
processing machinery and skilled labor and undoable, and extra to boost export, finished
plastics products will yield rich divided.
Today India exports plastic products to as many as 80 countries all over the world. The
exports, which were stagnant at around rest 60-70 cores per annum double to 129 craters.
The Plastic industry has taken up the challenge of achieving an export target of Rs.17
cores.
Major export markets for plastic products and linoleum are Australia, Bangladesh,
Canada, Egypt, Hong Kong, Italy, Kuwait, Federal Republic of Germany, Sri Lanka,
Sweden, Taiwan, U.K., U.S.A., and Russia.
With view to boosting the export, the plastics and linoleums export promotion
council has urged the government to reduce import duty of plastic raw material, supply
indigenous raw materials at international prices, fix duty, draw backs on weighted average
basis and charge freight rate on plastic products on weights basis instead of volume basis.
Prospects:
The Production of various plastics a raw materials in the country is expected to

double by the end of seventh plan, the consumption of commodity plastics including
LDPE, HDPE, PP, PS AND PVC is immense scope for the use of plastics in agriculture,
electronics, automobile, telecommunications and irrigation and thus, the plastic industry is
on the threshold of an explosive growth.

Role of plastics in the national economy:
Plastics are got perceived as just simple colorful household products in the mind so
common person. A dominant part of the plastics of the percent and future find their
utilization in the areas.
Agriculture, forestry and water-management.

Automobile and transportation
Electronics and telecommunications, buildings, construction
and.
Food processing and packaging
Power and gas distributor.
Importance Of Pipes Industry:
We shall look at the basic data about plastics and particularly those properties,
which are so, fuse in practical working with plastics. Plastics are man-made materials. The
oldest raw material for producing plastics is carbonaceous material obtained from coal tar
(benzene, phenol).
Today the majority of raw materials are obtained from petrol chemical source and
they can be economically produced in large quantities.
Plastics have changed our world and day-by-day they are becoming important.
They own their success to whole series of advantage, which they have over conventional
materials such as:
Lightweight
Excellent mould ability
Attractive colors
Low energy requirements for convention
Low labor and cost of manufacture
Low maintenance & High strength weight ratio
Economic role:
Agriculture is the chief occupation in India. For the developing countries like India
modernization of the agriculture practices assumes pivotal places in improving the
economic status and the process of modernization. Includes usage of higher productive

plastics supplement to greater extent manufacturing of tools required for new agricultural
practices.
The usage of poly vinyl chloride pipes in agricultural fields, lesser water seepage,
which was predominant in earlier practices, with services of P.V.C pipes, water can be
transported efficiently with lesser from the place of higher potential to the place of lower
water potential. Presently the revolutionary tried in water management speaks much about
drip irrigation, which is developed in Israel and is practiced by all agricultural based
nations in the world. Drip irrigation greatly P.V.C pipes as core tools of implementation
with the services of this sort, P.V.C pipes one way or the other strengthening the hands of
countrys economy.
A part with the referred P.V.C pipes supplemented with fitting is used in houses for
electrical connection and other domestic purposes. Apart from these two applications it
has got wide applications even in industrial sectors. P.V.C pipes with much unique heart,
chemical and physical characteristics serve many industrial purposes.
Even characteristics of weight and low price attract many more applications. Rigid
PVC pipes have been manufactured in India from the 60s on imported extrusion lines and
there after indigenous plan were few pipes manufactures upto 1979-83. When many
extrusion lines were imported from batten field, Cincinnati, kraaus-maffi etc. the Govt.
allowed the imports of sophisticated and high output plants, which were not available
indigenously.
PVC PIPES IN INDIA:
Pipes products have found wide acceptance in India and abroad. PVC is one of the
more versatile plastics. It can be extruded, moulded, calendared and thermoformed into a
multitude of furnished products. The PVC resin can be formulated to give a wide range of
properties ranging from hand, tough materials for load bearing application lime pipes,
windows and doors to flexible materials for products a due as wire and cable insulation
and shooting and flooring.
PVC products cater to both interiors and exteriors. In interiors it can be used for
flooring, profile and cable tray, wall covering modular office systems, houses and
furniture. For exteriors it is used for doors and windows, fencing partitions and paneling,
roofing and rain systems.

The other external applications are in the field of irrigation, portable water supplies.
In the field of irrigation there are several methods to irrigate the fields. There are minor
irrigation projects and major irrigation projects apart from individual sources like wells,
tube wells, bore wells. Major irrigation sector small projects will have canals and lift
irrigation schemes etc., will have canals and lift irrigation schemes etc., will have
pipelines. Cement and GI pipes were the pipes used in conventional methods of irrigation.
Now-a-days PVC pipes replaced the conventional pipes and they constituted almost 90%
in this respect.
Drip irrigation popular in the agricultural sector especially in the field of horticulture
commercial cropping and green ply houses. The drip irrigation concept is becoming more
popular with its advantages like highly yield, water conversion, less labour cost, less
fertilizer, less past management costs, less power costs and many more advantages. The
demand for this concept is increasing at a place of 30%-40% per annum
Agriculture a sunrise industry in the Indian economy is mainly dependent on the PVC
pipes for the seawater sector and pumping to their aqua ponds. They are using pipelines
of four to five kilometers of 10-16 diameters pipes.
The state Govt. of A.P is using rigid PVC pipes for the irrigation water supplies for
the past few years. The state Govt. is producing PVC pipes through APSIDC (Andhra
Pradesh State Irrigation Development Corporation) for its lift irrigation schemes. The
panchayatraj department is producing pipes for public water supply schemes. These pipes
can be used for the main distributors, sub-distributors and individual connections.
GLOBAL PVC INDUSTRY

PVC is a about 205 of total consumed, because it is though and durable,
competitive in cost very versatile with ease of processing, which includes,injecting,
extrusion, blow molding, calendaring, spread coating and dip coating .Products
manufactured with their process can be hard,semi soft or soft with exact desirable
performance and low energy demand.
A wide range of pvc product are manufactured using various processes mentioned
above. The range of pvc products manufactured includes pipes windows profile kitchen
furniture packaging etc. in rigid range while in soft or flexible range we have products

like leather cloths, shoes, film,toys medical appliances like bloods bags glove & tubing
(Electrical cables and wires).
PVC is processed comparatively at high temperature to manufacture above

mentioned wide range of products using various process and machinery. At this
temperature of processing there is possibility PVC gets decomposed. To prevent this
temperature of processing there is possibility PVC gets decomposed. To prevent this
decomposition, PVC stabilizers are used during processing. These stabilizers are
manufactured using heavy metals like Pb, Ba, Cr, Zr,Ca, etc. some of their stabilizers
caleach when in use and can cause health problems is very serious with PVC products use
for products handled by children such as toys erasers etc..,
DEVELOPMENT OF INDIAN PVC INDUSTRY
The above overview of PVC industry shows that in state of several hurdles. The
PVC industry is still growing where factor such as populations degree of industrialization,
free trade areas, appropriate legislation play an important role. Indian with a vast
populations next to china where since independence of the country, a regular planning is
done for industrializations agriculture, infrastructure facilities, technical educations etc.
every five years the PVC industry can be received there with. The major plastic material
which are used have manufacturing capacity and demand as fallows:
PVC demand is about 20% of major plastic material produced in the country.
However, compared to the global picture, especially when compared to china, the
development of PVC industry is unsatisfactory. About a decade back india and china were
more or less at same level. As on today china consume about 40,00,00 MT of PVC per
year, is growth is 6%. The demand for PVC is growing so fat that local production cannot
meet the demand and hence there are heavy imports.
The first for PVC by Calico chemical started somewhere in 1958, with a capacity of 3600
TPA which was expanded to 6000 TPA shortly, but later the unit enclosed down. After
about 45 years , is mostly static. For the PVC industry the major additive industry started
in 1958 and the first plant for plasticizers started in 1961.

THE PRESENT STATUS OF PVC INDUSTRY IN INDIA
From the above details, it can be seen that Indian PVC industry has slow but steady
growth.During the pre liberalizations period, there was protections to the local industries
by restricting imports and by way of high import duty to keep industries viable. This
approach did help by way of steady growth, growth, employment generation, development
of indigenous industries and treasury receipts.
Later on from 1995 onwards, import duty on many items was gradually reduced and
also imports were made liberal. Due to these steps taken local industries became the
major policy issues for the government.
During this period of uncertainty for keeping industries alive, many of the plasticizers
industries in large scale, except Indo-Nippon stopped their productions, and over a period
many of the small-scale units also had to close down. As the demand for plasticizers
reduced Oxon alcohal requirements were also affected. Due to this situation out of three
units manufacturing oxen alcohol, two units are presently not operating. This situation also
resulted in reducing demand for ophthalmic anhydride and also PVC resin. In fact, Finolex
industries who had planned for expansion for 1,30,000 MTA has kept on hold this project.
IPCL had also proposed for traditional capacity but they also are reviewing the situation
before.

COMPANY PROFILE
Introduction:
A dynamic entrepreneur Sri S.P.Y.Reddy was established a black pipes

manufacturing company in 1977 and the name of the company is Nandi Pipes Pvt Ltd at
Nandyal, Kurnool district. Anantha PVC Pipes Pvt Ltd was incorporated in the year
2002. The factory is situated at NH-7, Hampapuram village, Raptadu mandal, and
Anantapur district and it was taken over by Nandi Group Company. The company is
managed by team of professionals under the guidance of young, experienced, and well
qualified dynamic managing director Mr.S.Sreedhar Reddy.
Origin:
Rayalaseema is economically backward area in Andhra Pradesh, was rare field

region for industries. A dynamic entrepreneur sir S.P.Y.Reddy who is basically
mechanical engineer started a unit at Nandyal, which manufactures black pipes in 1977.
The determination and hard work of Sri S.P.Y.Reddy helped him to overcome the
problems faced by the company in the initial years, and with financial assistance from
local commercial banks. The company could overcome the problems of the merger and
now it is running smoothly.
Later the company started manufacturing of PVC pipes which terminated the
manufacturing of black pipes. This resulted in the formation of a Pvt. Ltd. company called
SUJALA PIPES PVT.LTD. with Sri S.P.Y.Reddy as the Managing Director.
The only major competitors to the company are Sudhakar pipes, Maharaja Pipes. The only
backdrop to it is the competition from local brands. As the majority of the customers
belong to farmers, they consider the quality. The company has to make aware of the
companys quality standards to them.
Board of directors
S.P.Y.Reddy:
Sri S.P.Y.Reddy locally well known industrialist with the base at nandyal, Kurnool
district who has been successful entrepreneur, he is technically qualified person with B.E
(MEC) from R.E.C (Warangal) and with work experience at BAARC (Bombay). He has

daringly ventured and established industries in and around nandyal from 70s. As years
went of he has established most successfully the following nandi group of companies:
Nandi Milk
Maha Nandi Mineral Water
Nandi Infosys
Nandi Online Services
Anantha PVC Pipes Pvt Ltd.
Integrated Thermos Plastic Ltd.
Nandi PVC Projects.
Promoter:
Sri.S.Sreedhar Reddy, a computer engineer and a student of IIM, Ahemadabad has

been entrusted the management of Anantha PVC Pipes Pvt Ltd., Hampapuram and great
assistance and a great upcoming engineer and industrialist.
Branches:
Pondichery
Bellary
Sangli
Vellore
Goa
Coverage:
At present Andhra Pradesh, parts of southern states of Karnataka, Tamilnadu and Kerala
are ambit of Sujala Pipes Pvt Ltd. The company extended their sales in the below regions
are shown below:
1979 Nandyal Region(polypone pipes)

1984-85 Rayalaseema Region (PVC pipes)
1985-86 Telangana Region
1986-87 Karnataka and Andhra Pradesh
1988-91 Tamilnadu and Karnataka
1991-94 Kerala

Sizes:
Various sizes ranging from to 10 are offered to customers. Even pipes with different
gauges and sizes are manufactured to suit specified conditions.
Packing:
Packing plays less important role into the products like PVC pipes because the hallow
space inside can be utilized. For the purpose of cubic space utilization in trucks while
transport, organization is adopting the technique like pipes in pipes.
Payment period:
For monarch brand the company adopts zero credit policy and goods are not delivered
unless cash remittances are made. For monarch and sagar brands credit is entitled up to a
week. The difference between these brands is due to brand image.
Manufacturing process:
The main raw materials are HDPE granules and PP granules. The
manufacturing process for pipes consists of mixing various resins along with the coloring
materials in a mixture and the prepared material is fed to the extruder. In the extruder, the
material is heated to the required politicizing temperature (190deg. centigrade to 230deg.
centigrade) the extruder through the die hard to form the pipe. The hot pipe coming out of
the extruder is cooled in a water bath to retain the final shape.
The pipe coming out of the extruder is guided through the water bath suitable transaction
system. The temperature of the water is maintained by circulating through the cooling
towards and with the help of a chilling plant.
The required length of the pipe is cut with a planetary saw. The cut lengths are titled by
titling units and get corrected in the pipe rack attached to the titling frames. Later they are
stocked separately. The company has entered into a technical with its own processing
technology.

Channels of distribution:
Anantha PVC Pipes Pvt Ltd. has got zero level and single level channel of
distribution.
MANUFACTURER CONSUMER
MANUFACTURER DEALER CONSUMER
Anantha PVC Pipes Pvt Ltd. has an extensive network of 350 dealers in Andhra
Pradesh and who are directly serviced by company sales force and 620 dealers in South
India.
Transportation:
The companys major transportation is its vehicles. Huge investment is made on

transportation vehicles. A unique cash out flow justifies itself by providing good
reputation of the company through customer service. The unique strength of the
organization enables the delivery system efficient. This event helps the dealer to reduce
inventory levels to the minimum.
Anantha pvc pipes pvt ltd:
Anantha PVC Pipes Pvt Ltd. was incorporated in the year Feb 2002. The factory is
situated at NH-7, Hampapuram village, Raptadu mandal, and Anantapur district. It was
taken over by Nandi group company, and it is one of the sister company among the Nandi
groups.Its annual production capacity is 18,000 mts. And it is one of the leading
manufacturers of PVC pipes in south India. This company is equipped with technical
collaboration from Batten field of West Germany. It has made possible few other small
ventures. Pipes are sold under the brand names of MONARCH, KOHINOOR and
KRISHNA.
Anantha PVC Pipes with their good quality, trouble free services, durability and
commercial use are a better choice than mild steel, galvanized steel, cast iron and plastic
pipes.

The company is managed by a term of professionals under the guidance of a young,

experienced and well qualified dynamic managing director Mr. Sreedhar Reddy.
Mission Statement:
The mission statement of Anantha PVC Pipes Pvt Ltd. is as follows:
To be preferred supply chain partner to out customer.

To be recognised as the best in the world at we do.
To create new values in the quality for our customers and employees.
Vision Statement:
The vision statement of Anantha PVC Pipes Pvt. Ltd. is as

follows:Creating new values in quality by working together for you
Functional departments of the company:
Financial department:
Through initially the company approached the external source for financial aid,
now the financial status of the company is very sound and is being run only with self
finance excepting for loans taken for hypothecation of machinery and stock from SBI
Nandyal.
The company follows cash and carry policy for monarch brand. The product is not
delivered until the cash is paid and financial department with the help of marketing
department looks after these transactions.
Marketing department:
Marketing Department is headed by the Executive Director. Marketing Manager is

in charge of all operations who reports to the Executive Director. Marketing Manager and
35 Sales Representatives are under the control of Executive Director. There are also 20
salesmen who have to report to the sales representatives above them
Personal Department:
The Personal department consists the details of the executives and workers of the
organization. The organization is formed with Sri.S.P.Y.Reddy as the managing Director.
Two Marketing managers, financial managers, public relations officer and quality control

officer who all reports to executive director. Other than executives there are thousands
workers in the organization.Panel consisting of managing director, executive director and
managers of concerned department makes the recruitment and selection of persons. Apart
from the attractive salaries company provides health card facilities.
Purchasing department:
The perplexing situation i.e. conformed by the manufactures of the PVC pipes is
scarcity of resin. Though the government of India has taken various steps to improve the
supply conditions of PVC resin, the Indian manufactures could meet only 50 percent of
demand and remaining 50 percent is met from imports. The major petrochemical company
is Reliance Petrochemical Ltd.The lead time for the acquisition of raw materials is 4 days.
The following lines highlight the human resources policies and practices:
Effective utilization of manpower.

To provide good working condition.
To promote industrial development.
Application of pvc pipes:
Agriculture and irrigation schemes.

Rural and urban water supplies scheme.
Tube well casing.
Gas and oil supply lines.
Industrial effluent disposal.
Sewerage and drainage scheme.
Air-condition ducting.
Building installations.
Industrial ducting.

ORGANIZATION CHART OF ANANTHA PVC PIPES PVT LTD
Managing Director
Finance Production
Marketing Manager
Manager Manager HR Manager
Production In Asst Marketing

Account Officers Quality Control Personnel Officer
charge Manager
Sales
Clerks Machine Operator Lab Technician
Representative
Sales Man

PVC Pipes Manufactures in Andhra Pradesh:
The Major PVC pipes Manufactures in Andhra Pradesh
Nandi Pipes
Finolex Pipes
Supreme Pipes
Sri Lakshmi Venkateswara PVC Pipes
And Other Local Manufactures.
MARKET ANALYSIS\ SHARE:
Factors contributing to the boom of PVC pipes market:
Less Weight
Non Corrosiveness
Excellent Pressure Resistance
Good Chemical and Thermal Stability
Simple installation portability in handling
Super weathering
Economical
PRESENT MARKET SITUATION OF PVC PIPES:
Existence of large number of firms

Product differentiation
Freedom of entry and exit
Easy availability
Goodwill of the company
Brand Image

THEORETICAL FRAMEWORK
INTRODUCTION
According to Meigs and Meigs (2003), financial statement are a structured representation
of the financial position and financial performance of an entity. The objective of financial
statements is to provide information about the financial position, financial performance
and cash flows of an entity that is useful to a wide range of users in making economic
decisions.
Financial statement analysis is a process of evaluating the relationship between component

parts of a financial statement to obtain a better understanding of a firms position and
performance.
Financial statements also show the results of the managements stewardship of the
resources entrusted to it. To meet these objectives, financial statements provide
information about an entitys:
i) Assets
ii) Liabilities
iii) Equity
iv) Income and expenses, including gains and losses
v) Contribution by and distribution to owners in their capacity as owners, and vi) cash
flows
A complete set of financial statement comprises:
1) A statement of financial position as at the end of the period:
2) A statement of comprehensive income for the period;
3) A statement of changes in equity for the period:
4) A statement of cash flow for the period

5) Notes of Account comprising a summary of significant accounting policies and other

explanatory information; and
6) A statement of financial position as at the beginning of the earliest comparative period

when an entity applies an accounting policy retrospectively or makes a retrospective
restatement of items in its financial statements or when it reclassifies items in its financial
statements.
Objective of a Financial Statement Analysis
Business decisions are made on the basis of the best available estimates of the outcome of
such decisions. According to Meigs and Meigs (2003), the purpose of financial statement
analysis is to provide information about a business unit for decision making purpose and
such information need not to b limited to accounting data. White ratios and other
relationships based on past performance may be helpful in predicating the future earnings
performance and financial health of a company, we must be aware of the inherent
limitations of such data.
According to Meigs and Meigs (2003), the key objectives of financial analysis are to
determine the companys earnings performance and the soundness and liquidity of its
financial position. We are essentially interested in financial analysis as a predictive tool.
Accordingly, we want to examine both quantitative and qualitative data in order to

ascertain the quality of earnings and the quality and protection of assets. In periods of
recession when business failures are common, the balance sheet takes on increase
importance because the question of liquidity is uppermost in the minds of many in the
business community. However, when business conditions are good, the income statement
receives more attention.
Nevertheless, a financial analyst has to grapple on the above complexities of using

financial statement analysis to achieve a specific purpose.
Uses and Users of Financial Statement
According to Akpan (2002), financial statement may be used by users for different
purposes:

a) OWNERS AND MANAGERS: Require financial statement to make important

business decisions that affect its operations. Financial analysis is then performed on these
statements to provide management with a more detailed understanding of the figures.
These statement are also used as part of managements annual report to the stockholders.
b) EMPLOYERS: Also need these reports in making collective bargaining agreements

(CBA) with the management, in the case of labour unions or for individuals in discussing
their compensation promotion and rankings.
c) PROSPECTIVE INVESTORS: They make use of financial statements to assess the

viability of investing in a business. Financial analysis are often used by investors and are
prepared by professionals (financial analyst), thus providing them with the basis for
making investment decisions.
D) FINANCIAL INSTITUTIONS: Financial institutions (banks and other lending

company) use them to decide whether to grant a company with fresh working capital or
extend debt securities (such as a long term bank loan or debentures) to finance expansion
and other significant expenditures.
e) GOVERNMENT ENTITIES: Government entities (Tax authorities) need financial

statements to ascertain the property and accuracy of taxes and other duties declared and
paid by a company.
f) VENDORS: They require financial statement to access the credit worthiness of the
business
g) MEDIA AND GENERAL PUBLIC: They are also interested in financial statements
for a variety of reasons.
Classification of Financial Statement
According to Diamond (2006), all watchful business owners have an innate sense of how
well their business is doing. Almost without thinking about it, these business owners can
tell you any time during the month how close they are to butting budgeted figures.
Certainly, cash in bank plays a part, but its more than that.

Helpful is the nowtine review of financial statements. They are three types of financial
statements. Each will give important information about how efficiency and effective the
business is operating.
INCOME STATEMENT:
The income statement shows all items of income and expense for arts or crafts business. It
reflects a specific time period. So an income statement for the quarter ending March 31,
shows revenue and expense for January, February and March, if the income statement is
for the calendar year-ending December 31, it would contain all the information from
January 1 to December 31. Note that the normal accounting period for income statement is
12 months or year.
Income statements are also known as profit and loss account. The button line on an
income statement is income less expenses. If when income is more than expenses it is
known as net profit and when expense is more than income it is a net loss.
2) BALANCE SHEET
Accounting is based upon a double entry system. For every entry into the books there has
to be an opposite and equal entry. The net effect of the entries is zero, which results your
books being balanced. The proof of this balancing act is shown in the balance sheet when
Asset = Liability + Equity.
The balance sheet shows the health of a business from day one to the date on the balance
sheet. Balance sheet are always dated on the late day of the reporting period. If you have
been in business since 1st January 2011 and your balance sheet is dated as of 31 December
current year the balance sheet will show the results of your operations from 1st January
2011 to December 31, 2011. Methods of Financial Statement Analysis
The analysis and interpretation of financial statements is used to determine the financial
position and results of operations as well. A number of methods or devices are used to
study the relationship between different statements. An effort is made to use those devices
which clearly analyse the position of the enterprise.

The following methods of analysis are generally used:
Comparative statements( Comparative Balance Sheet, Comparative Income

Statement)
Cash flow statement
The comparative balance sheet analysis is the study of the trend of the same, group
of items and computed items in two or more balance sheets of the same business
enterprise on different dates. The changes in periodic balance sheet items reflect
the conduct of a business. The changes can observed by comparison of the balance
sheet at the beginning and at the end of a period and these changes can help in
forming an opinion about the progress of an enterprise. The comparative balance
sheet has five columns:
First column is meant for particulars i.e. details regarding assets and liabilities to
be named.
Second column is meant for figures for past year.
Third column is meant for figures for current year.
Fourth column is meant for rupees change.
b)STATEMENT OF CASH FLOWS
The statement of cash flows the ins and outs of cash during the reporting period. You may
be thinking-well who needs that type of report? I will just look at the checkbook. Good
point, unless you are reporting things that dont immediately affect cash such as
depreciation, accounts receivable, accounts payable.
If I could only choose one of those three financial statements to evaluate the ability of a
company to pay dividends and meet obligations (indicating a healthy business), I would
pick the statement of cash flows. The statement of cash flows takes aspects of the income
statement and balance sheet and kind of crams them together to show cash sources and
uses for the period.
Relationship among the Statement of Financial Position, Income Statement,

Statement of Cash Flows
As mentioned above, the balance sheet shows the financial position at a point in time. It
therefore cannot contain information that is related to some period, such as sales or wages
expense.

It is a common practice to include beginning of a period balance sheet as well as an end

period balance sheet in a financial report. This way the reader can form an opinion about
how the firms financial position has changed.
The cash flow statement and the income statement-statement both give information about
the firms performance over the period, albeit from different angles. The cash flow
statement explains the change in cash. In other words, it explains how the beginning of
period cash has turned into the end of period cash by differentiating between operating,
investing and financial activities.
The income statement shows a presentation of the sales, the main expenses and the
resulting net income over the period. Net income is based on accounting principles which
gives guidance/rules on when to recognize revenues and expenses, whereas cash from
operating activities, obviously is cash based.
As dividends do not reduce net income, the income statement does not always explain the
change in retained earnings over the year (Net income always equals the change in
retained earnings when no dividend is paid out). The statement of retained earnings is 29
included to show how equity has changed because of net income and possible dividend
payments. It shows the beginning value of retained to which net income is added and
dividends subtracted, resulting in end of year retained earnings.
Techniques of Financial Statement Analysis and Interpretation
Financial statement users and analysts have developed a number of techniques to help
them analyse and interpret financial statements. According to Diamond (2006) the most
common of these includes, horizontal, vertical and ratio analysis. All of these techniques
focus on relationships among items in the financial statement themselves.
In trying to understand the current financial position of firm and its future outlook, it is
important, to consider changes from year to year as well as trends over several years. One
way to accomplish this is to use comparative financial statements and the five-or-ten year
summary of data found in the firms annual report to spot important or emerging trends.

M/S. ANANTHA PVC PIPES PRIVATE LIMITED

COMPARATIVE BALANCE SHEET AS ON 31.03.2010-31.03.2011
PARTCULARS S.No AMOUNT AS AMOUNT AS Rs. PERCENTAGE

AT31-03-2010 AT 31-03-2011 INC/DEC CHANGE
SOURCES OF FUNDS: A
1.SHARE HOLDERS FUNDS:
a). Share Capital 5,000,000.00 20,000,000.00 15,000,000.00 300%

b). Reserve &Surplus:
Profit & Loss a/c 46,594.15 529,872.75 483,278.60 1037%
Total(A) 5,046,594.15 20,529,872.75 15,483,278.60 307%
2.LOAN FUNDS: B
a). Secured Loans 48,208,099.34 46,000,979.80 -2,207,119.54 -5%
b). Un-Secured Loans 18,135,341.00 22,558,359.00 4,423,018.00 24%
Total(B) 66,343,440.34 68,559,338.80 2,215,898.46 3%
Total(A+B) 71,390,034.49 89,089,211.55 17,699,177.06 25%
APPLICATION OF FUNDS:
1.FIXED ASSETS: C
a). Gross Block 20,471,824.95 20,471,824.95 0.00 0%
b). Less: Depreciation 60,948.00 2,493,904.00 2,432,956.00 3992%
c). Net Block 20,410,876.95 17,977,920.95 -2,432,956.00 -12%
Total[C] 20,410,876.95 17,977,920.95 -2,432,956.00 -11%
2.INVESTMENTS: Nil Nil Nil Nil
3.CURRENTASSETS, LOANS &
ADVANCES D 59,705,731.40 81,103,552.97 21,397,821.57 36%
Less: Current Liabilities & Provisions E 8,876,129.86 10,104,429.37 1,228,299.51 14%
Net Current Assets 50,829,601.54 70,999,123.60 20,169,522.06 40%
Total(D-E) 50,829,601.54 70,999,123.60 20,169,522.06 40%
4.MISCELLANEOUS EXPENDITURE-
PRELIMINERY EXPENSES
(adjusted) 149,556.00 112,167.00 -37,389.00 -25%
Total(Exp) 149,556.00 112,167.00 -37,389.00 -25%
Total(C+D-E+Exp) 71,390,034.49 89,089,211.55 17,699,177.06 25%


PARTICULARS S.No AMOUNT AS AMOUNT AS Rs. PERCENTAGE

AT31-03-2011 AT 31-03-2012 INC/DEC CHANGE
SOURCES OF FUNDS: A
a). Share Capital 20,000,000.00 20,000,000.00 0.00 0%
Profit & Loss a/c 529,872.75 4,464,771.31 3,934,898.56 743%
Total(A) 20,529,872.75 24,464,771.31 3,934,898.56 19%
2.LOAN FUNDS: B
a). Secured Loans 46,00 0,979.80 44,203,763.30 -1,797,216.50 -4%

Total(B) 68,559,338.80 67,837,415.30 -721,923.50 -1%
Total(A+B) 89,089,211.55 92,302,186.61 3,212,975.06 4%
1.FIXED ASSETS: C
a). Gross Block 20,471,824.95 21,154,287.95 682,463.00 3%
b). Less: Depreciation 2,493,904.00 4,661,056.00 2,167,152.00 87%
c). Net Block 17,977,920.95 16,493,231.95 -1,484,689.00 -8%
Total[C] 17,977,920.95 16,493,231.95 -1,484,689.00 -8%
ADVANCES D 81,103,552.97 84,755,133.29 3,651,580.32 5%
Less: Current Liabilities & Provisions E 10,104,429.37 9,020,956.63 -1,083,472.74 -11%
Total(D-E) 70,999,123.60 75,734,176.66 4,735,053.06 7%
PRELIMINERY EXPENSES (adjusted) 112,167.00 74,778.00 -37,389.00 -33%
Total(Exp) 112,167.00 74,778.00 -37,389.00 -33%
Total(C+D-E+Exp) 89,089,211.55 92,302,186.61 3,212,975.06 4%


AT31-03-2012 AT31-03-2013 INC/DEC CHANGE
SOURCES OF FUNDS: A
a). Share Capital 20,000,000.00 40,000,000.00 20,000,000.00 100%
Profit & Loss a/c 4,464,771.31 10,116,446.97 5,651,675.66 127%
Total(A) 24,464,771.31 50,116,446.97 25,651,675.66 105%
2.LOAN FUNDS: B
a). Secured Loans 44,203,763.30 61,520,588.92 17,316,825.62 39%
Total(B) 67,837,415.30 88,421,948.92 20,584,533.62 30%
Total(A+B) 92,302,186.61 138,538,395.89 46,236,209.28 50%
1.FIXED ASSETS: C
a). Gross Block 21,154,287.95 25,267,467.95 4,113,180.00 19%
b). Less: Depreciation 4,661,056.00 7,098,202.00 2,437,146.00 52%
c). Net Block 16,493,231.95 18,169,265.95 1,676,034.00 10%
Total[C] 16,493,231.95 18,169,265.95 1,676,034.00 10%
ADVANCES D 84,755,133.29 142,012,417.19 57,257,283.90 68%
Total(D-E) 75,734,176.66 120,331,740.94 44,597,564.28 59%
PRELIMINERY EXPENSES (adjusted) 74,778.00 37,389.00 -37,389.00 -50%
Total(Exp) 74,778.00 37,389.00 -37,389.00 -50%
Total(C+D-E+Exp) 92,302,186.61 138,538,396 46,236,209.28 50%



SOURCES OF FUNDS: A
a). Share Capital 40,000,000.00 40,000,000.00 0.00 0%
Profit & Loss a/c 10,116,446.97 14,259,088.69 4,142,641.72 41%
Total(A) 50,116,446.97 54,259,088.69 4,142,641.72 8%
2.LOAN FUNDS: B
a). Secured Loans 61,520,589 81,707,294.72 20,186,705.80 33%
Total(B) 88,421,948.92 111,461,361.72 23,039,412.80 26%
Total(A+B) 138,538,395.89 165,720,450.41 27,182,054.52 20%
1.FIXED ASSETS: C
a). Gross Block 25,267,467.95 34,106,569.95 8,839,102.00 35%
b). Less: Depreciation 7,098,202.00 10,200,298 3,102,096.00 44%
c). Net Block 18,169,265.95 23,906,271.95 5,737,006.00 32%
Total[C] 18,169,265.95 23,906,271.95 5,737,006.00 32%
ADVANCES D 142,012,417.19 199,283,418.42 57,271,001.23 40%
Total(D-E) 120,331,740.94 141,814,178.46 21,482,437.52 18%
PRELIMINERY EXPENSES (adjusted) 37,389.00 Nil Nil 0%
Total(Exp) 37,389.00 Nil Nil 0%
Total(C+D-E+Exp) 138,538,395.89 165,720,450.41 27,182,054.52 20%



SOURCES OF FUNDS: A
a). Share Capital 40,000,000.00 40,000,000.00 0.00 0
Profit & Loss a/c 14,859,089 20,377,688 5,518,599 37%
Total(A) 54,859,089.00 60,377,688.00 5,518,599.00 10%
2.LOAN FUNDS: B
a). Secured Loans 81,707,295 81,444,752 -262,543 0.32%
b). Un-Secured Loans 29,754,067 29,754,067 0 0%
Total(B) 111,461,362 111,198,819 -262,543 0%
Total(A+B) 166,320,451.00 171,576,506.00 5,256,056.00 0.031601983
1.FIXED ASSETS: C
a). Gross Block 34,106,570 49,504,589 15,398,019 45%
b). Less: Depreciation 10,200,298 15,811,901 5,611,603 55%
c). Net Block 23,906,272 33,692,688 9,786,416 41%
Total[C] 23,906,272 33,692,688 9,786,416 41%
2.INESTMENTS: Nil Nil Nil Nil
ADVANCES D 199,283,418 238,511,495 39,228,077 20%
Less: Current Liabilities & Provisions E 56,869,240 100,627,677 43,758,437 77%
Net Current Assets 142,414,178 137,883,818 -4,530,360 -3%
Total(D-E) 142,414,178 137,883,818 -4,530,360 -3%
PRELIMINERY EXPENSES (adjusted) Nil Nil Nil Nil
Total(Exp) Nil Nil Nil Nil
Total(C+D-E+Exp) 166,320,450 171,576,506 5,256,056 3%

Sources of Funds
Table showing Share Holders Funds percentage change from2010-2015
Table No.1
Years Percentage Change
2010-2011 307%
2011-2012 19%
2012-2013 105%
2013-2014 8%
2014-2015 10%

Chart showing share holders funds percentage change from 2010-2015
Chart No.1
Share Holders Funds

350% 307%
Percentage Change
300%
250%
200% share holders
150% 105% funds % change
100%
50% 19% 8% 10%
0%
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Years
INTERPRETATION:
From the above chart we can see that in the year 2010-2011 share holders funds is
307%.
By the high share holders funds the company can good capital for the companys growth.
And there is a drastic change occur in the next year i.e., 19%. In the year 2012-2013 it
increases upto 105%.
At 2014-2015 the share holders funds is 10% that means very low capital acquired the
company. It means difficult to run the business.

Table showing Loan Funds percentage change from2010-2015
Table No.2
2010-2011 3%
2011-2012 -1%
2012-2013 30%
2013-2104 26%
2014-2015 0%

Chart showing loan funds percentage change from 2010-2015
Chart No.2
Loan Funds
35%
30%
30%
26%
Percentage Change
25%
20%
15%
"Loan funds in
10% % change
5% 3%
0%
0%
2010-2011 2011-2012
-1% 2012-2013 2013-2104 2014-2015
-5%
Years
INTERPRETATION:
From the year 2010 to 2012 the loan funds of the company is very low. It means
there occurs a difficulty to run the company. From 2012 to 2014 it increases i.e., 30% &
26%.Again in 2014-2015 the loans funds comes to 0%. The company cant maintain
proper resources by the low % of funds.

Application of Funds
Table showing Fixed Assets percentage change from2010-2015
Table No.3
2010-2011 -11%
2011-2012 -8%
2012-2013 10%
2013-2014 32%
2014-2015 41%

Chart showing fixed assets percentage change from 2010-2015
Chart No.3
Fixed Assets
50%
41%
40%
Percentage Change
32%
30%
20%
10%
10% Series1
0%
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
-10%
-8%
-11%
-20%
Years
INTERPRETATION:
In the year 2010 to 2012 there is a decrease in fixed assets. From 2012 to 2015 the fixed
assets is in increasing trend. By 2015 the percentage of fixed assets is 41%. By the high
percentage of the fixed assets company can enhance their business

Table showing current assets, loans & advances percentage change from2010-2015
Table No.4
2010-2011 40%
2011-2012 7%
2012-2013 59%
2013-2014 18%
2014-2015 -3%

Chart showing current assests, loans& advances percentage change from

2010-2015
Chart No.4
Current assets,loans & advances

70%
59%
Percentage Change
60%
50%
40%
40%
Current assets,loans &
30% advances % change
18%
20%
7%
10%
0%
-10% 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
-3%
Years
INTERPRETATION:
In the year 2010-2011 the current assets, loans & advances is 40%, and next year it
decreases 7%.
From 2012-2013 there is high current assets, loans & advances i.e., 59%. Again in the
year 2014-2015 it decreases to -3%, the low and high percentage will effect the company.
It should be in moderate.

PROFORMA OF CASH FLOW STATEMENT FROM OPERATING ACTIVITIES FOR THE YEAR
ENDED xx/xx/xxxx.
Particulars Rs. Rs.

Cash Flows from Operating Activites
Net Profit(Rs.xxxx-Rs.xxx) (A) xxxxxx
ADD: Non Operating Expenses and Loses:
Goodwill Writtenoff xxxx
Depreciation on Fixed Assets xxxx
Loss on Sale of Fixed Assets xxxx
Preliminary Expenses Writtenoff xxxx
Transfer to Reserves xxxx
Proposed Dividends xxxx
Payment of Dividends xxxx xxxxx
Total Non Operating Expenses and Loses (B) XXXXX

LESS: Non Operating Incomes and Gains xxx
Dividends on Investments xxx
(C) xxxx
Operating Profit before Working Capital Changes (D) xxxxx

(A+B-C)
ADD: Decrease in Current Assets and
Increase in Current Liabilities xxx
Total Decrease in Current Assets and Increase in Current Liabilities (E)

xxxxx
LESS: Increase in Current Assets and

Decrease in Current Liabilities xxxx
Total Increase in Current Assets and Decrease in Current Liabilities (F)

xxxxx
Cash From Operating Activities (D+E-F) (G) XXXXX

Cash Flow Statement from Operating Activities
M/S. Anantha PVC Pipes PVT.LTD. for the year Ended 31st March,2011
Particulars Rs. Rs.

Cash Flow from Operating Activities:
Net Profit (Rs.529873.21-Rs. 46594.61) 4,83,278.6
(A)
ADD: Non Operating Expenses and Losses:
Depriciation on Fixed Assets 24,32,956
Preliminary Expenses Writtenoff(37389- --Zero--
37389)
Total Non Operating Expenses and Losses 24,32,956
(B)
LESS: Non Operating Incomes and Gains NILL
NILL
(C)
Operating Profit before Working Capital 29,16,234.6
Changes (A+B-C)
(D)
ADD: Increase in Current Liabilities 12,28,299.51
Total Decrease in Current Assets and Increase in 12,28,299.51
Current Liabilities
(E)
LESS: Increase in Current Assets 21,37,821.6
Total Increase in Current Assets and Decrease in 21,37,821.6
Current Liabilities
(F)
Cash from Operating Activities (D+E-F) 20,06,712.51
(G)

Particulars Rs. Rs.

Net Profit (Rs.4464771.31-Rs. 529872.75) 39,34,898.56
(A)
37389)
(B)
NILL
(C)
Changes (A+B-C)
(D)
ADD: Decrease in Current Assets and Increase NILL
in Current Liabilities
Total Decrease in Current Assets and Increase in NILL
Current Liabilities
(E)
LESS: Increase in Current Assets 36,51,580.32
Decrease in Current Liability 10,83,472.74
Total Increase in Current Assets and Decrease in 47,35,053.06
Current Liabilities
(F)
Cash from Operating Activities (D+E-F) 6,84,534.5
(G)

Particulars Rs. Rs.

Net Profit (Rs.10116446.97-Rs. 4464771.31) 56,51,675.66
(A)
37389)
(B)
NILL
(C)
Changes (A+B-C)
(D)
ADD: Increase in Current Liabilities 1,26,59,720
Total Decrease in Current Assets and Increase in 1,26,59,720
Current Liabilities
(E)
LESS: Increase in Current Assets 5,72,57,283.9
Total Increase in Current Assets and Decrease in 5,72,57,283.9
Current Liabilities
(F)
Cash from Operating Activities (D+E-F) (3,72,69,854)
(G)

Particulars Rs. Rs.

Net Profit (Rs.14859089-Rs. 10116446.7) (A) 47,42,642.03
Preliminary Expenses Writtenoff(37389-37389) 0
Transfer to Reserves 26,96,551
Total Non Operating Expenses and Losses (B) 84,33,557
NILL
LESS: Non Operating Incomes and Gains
NILL
(C)
Operating Profit before Working Capital Changes 1,31,76,199
(A+B-C)
(D)
ADD: Increase in Current Liabilities 3,57,88,563.7
Total Decrease in Current Assets and Increase in Current 3,57,88,563.7
Liabilities (E)
LESS: Increase in Current Assets 5,72,71,001.2
Total Increase in Current Assets and Decrease in Current 5,72,71,001.2
Liabilities (F)
Cash from Operating Activities (D+E-F) (83,06,238.5)
(G)

Particulars Rs. Rs.

Net Profit (Rs.20733688-Rs. 1485089) 55,18,599
(A)
Depriciation on Fixed Assets 97,86,416 40,49,410
Preliminary Expenses Writtenoff(37389- 37,389
37389)
Transfer to Reserves 6,47,515
Total Non Operating Expenses and Losses 1,04,71,320
(B)
NILL
(C)
Operating Profit before Working Capital 1,59,89,919
Changes (A+B-C)
(D)
ADD: Increase in Current Liabilities 4,37,58,437
Total Decrease in Current Assets and Increase in 4,37,58,437
Current Liabilities
(E)
LESS: Increase in Current Assets 3,92,28,077
Total Increase in Current Assets and Decrease in 3,92,28,077
Current Liabilities
(F)
Cash from Operating Activities (D+E-F) 2,05,20,279
(G)

FINDINGS
In the year 2010-2011 share holders funds is 307%.By the high share holders funds
the company can get good capital. From2014-2015 the share holders funds is 10%it effect
on company to the business.
From the year 2010 to 2012 the loan funds of the company is very low. From 2012
to 2014 it increases i.e., 30% & 26%. The loans funds decreases to 0% in 2015. The
company cant maintain proper resources by the low % of loan funds.
In the year 2010-2011 the current assets, loans & advances is 40%, and next year it
decreases to 7%. At present 2015 it decreases to -3%, the low and high percentage will
effect the company. It should be in moderate.
Fixed assets there is a decrease from 2010-2012. From 2010 to 2015 its increasing
trend. In 2015 the percentage of fixed assets is 41%..The company is maintaining good
fixed assets it helps to enhance their business.
Operating expenses of the company is very low in the year 2013 & 2014.
In the year 2015 operating expenses is very high.

SUGGESTIONS
At present companys share holders fund is very low i.e., 10% it has to maintain
good relations to get funds from share holders for company growth.
In the year 2014-2015 the loan fund is 0%. This percent is makes the company
risky to run the business. So it should maintain moderate percentage for loan
funds.
The companys current year assets is 41%. If it maintains proper percent of fixed
assests it should helps the company to grow.
The present position of the Anantha pvc pipes pvt ltd the current
assests,loans&advances is very low.It has to maintain at moderate level for the
discharge of current liabilities.
The company should maintain low operating expenses. By that they can get good
profit.
The company should improve its profitability by reducing cost of production
large scale production economies adopting cost reduction techniques etc. But the
company should not compromise while maintaining the standards &the quality of
products.

CONCLUSION
The comparative balance sheet gives the information about position of the company. The
share holders fund of the company was very low which indicates that there is a low
capital.
Hence it also observed that loan funds of the company at present position was very low
which impact to run the business. The operating expenses are high in current year.
Finally it is concluded that the Anantha PVC pipes pvt ltd., had more fixed assets which
compared to previous year, its good for the company.

BIBLIOGRAPHY
BOOKS:
FINANCIAL MANAGEMENT : M.Y.KHAN & P.K.JAIN
FINANCIAL MANAGEMENT : PRASANA CHANDRA
MANAGEMENT ACCOUNTING : SHASHI.K.GUPTA
R.K.SHARMA
ANUJ GUPTA
ACCOUNTING FOR MANAGERS : G.PRASAD
V.CHANDRASEKHARA
WEBSITES:
WWW.NANDI GROUP.COM
WWW.WIKIPEDIA.COM

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A STUDY ON COMPARATIVE BALANCE SHEET AT

ANANTHA PVC PIPES PVT LTD.

A project report submitted to JNTU, Anantapur in

Partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Department of Business Management

Bheemi Reddy Institute of Management Science.

( Approved by AICTE. Affiliated to JNTUA, Anantapur)

Alur road, Adoni-518301, Kurnool dist

This is to certify that Miss.N.SAMREEN BANU, Regd. No.13JC1EOO64 has

I hereby declare that the project report entitled A STUDY ON COMPARATIVE

My heart full thanks to Mr.T.Md.IMTHIYAZ NAWAZ Assistant professor in BIMS for

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CHAPTER NO. TITLE OF THE CONTENT PAGE. NO

Industry profile 11-17

CHAPTER-2 Company profile 18-25

Literature Review &Theoretical 26-31

Data Analysis & Interpretation 32-50

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According to American Institute of Certified Public Accountants the presentation of

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OBJECTIVES OF THE STUDY

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NEED FOR THE STUDY

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SCOPE OF THE STUDY

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Science of studying how research is done systematically & scientifically.

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LIMITATIONS OF THE STUDY

The result of the study are limited to the available information

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Export of plastics goods:

The Production of various plastics a raw materials in the country is expected to

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Role of plastics in the national economy:

Agriculture, forestry and water-management.

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PVC PIPES IN INDIA:

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GLOBAL PVC INDUSTRY

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PVC is processed comparatively at high temperature to manufacture above

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THE PRESENT STATUS OF PVC INDUSTRY IN INDIA

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A dynamic entrepreneur Sri S.P.Y.Reddy was established a black pipes

Rayalaseema is economically backward area in Andhra Pradesh, was rare field

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Sri.S.Sreedhar Reddy, a computer engineer and a student of IIM, Ahemadabad has

1979 Nandyal Region(polypone pipes)

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MANUFACTURER DEALER CONSUMER

The companys major transportation is its vehicles. Huge investment is made on

Anantha pvc pipes pvt ltd:

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The company is managed by a term of professionals under the guidance of a young,

The mission statement of Anantha PVC Pipes Pvt Ltd. is as follows: