Name of the project : Specific Project 1

Study of Ratio's made by Voltas

Ltd. Through balance sheet and
Profit & Loss A/c.

Source Document : Newspaper cutting from The

Economic Times dated 24h May
2017 of Voltas Ltd..

Objectives of the project : To find the efficiency and efficient

working of the company for the
bankers to provide loan or to find
the market value of the company
for year ended Mar 31, 2017.

Tools for analysis : Ratio Analysis

Period of Study : Year 2016-2017

Name of the project : Specific Project 2

preparation of Cash Flow
Statement of Voltas Ltd. Through
balance sheet and Profit & Loss
A/c.

Source Document : Newspaper cutting from Business

Standards dated 24th May 2017 of
Voltas Ltd.

Objectives of the project : To prepare the cash flow

statement of the company and find
the efficacy in money management
of the Voltas Ltd.

Tools for analysis : CASH FLOW STATEMENT

Period of Study : Year 2016-2017

 CURRENT RATIO

Year 2017
Current Assets = 398956
Current Liabilities = 304207

398956
Current Ratio =
304207

= 1.13

Current Ratio for the Year 2017 is 1.13

Year 2016
Current Assets = 412559
Current Liabilities = 294963

412559
Current Ratio =
294963

= 1.39

Current Ratio for the Year 2016 is 1.39

ANALYSIS
The current ratio is a financial ratio that measures whether or
not a firm has enough resources to pay its debts over the next 12
months. It compares a firm's current assets to its current liabilities

Here current ratio has decreased to 1.13 in the current year as

compared to previous year's 1.39
 LIQUID RATIO

LIQUID ASSETS
LIQUID RATIO =
CURRENT LIABILITIES

Liquid Assets = C.A. - Stock - Prepaid Exp.

Year 2017
Liquid Assets = 398956 - 90703 - 274 = 307979
Current Liabilities = 304207

307979
Liquid Ratio =
304207

= 1.01

Liquid Ratio for the Year 2017 is 1.01

Year 2016
Liquid Assets = 412559 - 72468 - 285 = 339806
Current Liabilities = 294963

339806
Liquid Ratio =
294963

= 1.15

Liquid Ratio for the Year 2016 is 1.15

ANALYSIS
Liquid ratio measures the ability of a company to use its near
cash or quick assets to extinguish or retire its current
liabilities immediately. Quick assets include those current
assets that presumably can be quickly converted to cash at close
to their book values.

Again Liquid ratio has also decreased similar to current ratio i.e to
1.01 from 1.15
 NET PROFIT RATIO

NET PROFIT AFTER TAX

NET PROFIT RATIO =
NET SALES

Year 2017
Net Profit after Tax = 51142
Net Sales = 629484

51142
Net Profit Ratio =
629484

= 0.08

Net Profit Ratio for the Year 2017 is

Year 2016
Net Profit after Tax = 39311
Net Sales = 588337

39311
Net Profit Ratio =
588337

= 0.06

Net Profit Ratio for the Year 2016 is 0.06

ANALYSIS
Net Profit Ratio measure the company's use of its assets and
control of its expenses to generate an acceptable rate of return.

Here Net Profit Ratio has increased a bit to 0.08 from 0.06
 DEBT EQUITY RATIO

DEBT (Long Term Loans)

DEBT EQUITY RATIO =
(D/E RATIO) EQUITY (Share Holder Fund)

Year 2017
Debt = 9171
Equity = 283777

9171
D/E RATIO =
283777

= 0.03

Debt Equity Ratio for the Year 2017 is 0.03

Year 2016
Debt = 10235
Equity = 333514

10235
D/E RATIO =
333514

= 0.03

Debt Equity Ratio for the Year 2016 is 0.03

ANALYSIS
A high debt/equity ratio generally means that a company has
been aggressive in financing its growth with debt. This can result
in volatile earnings as a result of the additional interest expense.

Here Debt Equity ratio is same as that of the previous year's ratio.
It is 0.03 in both the consecutive years
 TOTAL ASSETS TO DEBT RATIO

TOTAL ASSETS
Total Assets to Debt Ratio =
(A/D RATIO) LONG TERM DEBTS

Year 2017
Total Assets = 647956
Long term debts = 9171

647956
A/D RATIO =
9171

= 70.65

Total Assets to debt ratio for the Year 2017 is 70.65

Year 2016
Total Assets = 587911
Long term debts = 10235

587911
A/D RATIO =
10235

= 57.44

Total Assets to debt ratio for the Year 2016 is 57.44

ANALYSIS

Here Total Assets to Debt Ratio has increased significantly from

57.44 to 70.65
 ASSETS TURNOVER RATIO (A.T. RATIO)

Net sales
A.T. RATIO =
Total Assets

Year 2017
Net Sales = 629484
Total Assets = 647956

629484
A.T. RATIO =
647956

= 0.97

Assets Turnover Ratio for the Year 2017 is 0.97

Year 2016
Net Sales = 588337
Total Assets = 587911

588337
A.T. RATIO =
587911

= 1.00

Assets Turnover Ratio for the Year 2016 is 1.00

ANALYSIS
The asset turnover ratio measures how efficiently a company is
using its assets. The turnover value varies by industry. It is
calculated by dividing net sales by average total assets.

Here assets turnover ratio has decreased minutely to 0.97 from

1.00
 RETURN ON ASSETS RATIO (R.O.A. RATIO)

Net Income
R.O A. RATIO =
Total Assets

Year 2017
Net Income = 51142
Total Assets = 587911

51142
R.O.A. RATIO =
587911

= 0.08

Return On Assets Ratio for the Year 2017 is 0.08

Year 2016
Net Income = 39311
Total Assets = 647956

39311
R.O.A. RATIO =
647956

= 0.06

Assets Turnover Ratio for the Year 2016 is 0.06

ANALYSIS
The ROA is considered an overall measure of profitability. It
measures how much net income was generated for each `1 of
assets the company has. ROA is a combination of the profit
margin ratio and the asset turnover ratio. It can be calculated
separately by dividing net income by average total assets or by
multiplying the profit margin ratio times the asset turnover ratio.

Here ROA ratio has increase minutely to 0.08 in the current year
in comparison to previous years 0.06
 STOCK TURNOVER RATIO

NET SALES
STOCK TURNOVER RATIO =
INVENTORIES

Year 2017
Net Sales = 629484
Inventories = 72468

629484
Stock Turnover Ratio =
72468

= 8.68

Stock Turnover Ratio for the Year 2017 is 8.68

Year 2016
Net Sales = 588337
Inventories = 90703

588337
Stock Turnover Ratio =
90703

= 6.48

Stock Turnover Ratio for the Year 2016 is 6.48

ANALYSIS
This ratio is used to measure whether the investment in stock in
trade is effectively utilized or not. It reveals the relationship
between sales and cost of goods sold or average inventory at
cost price or average inventory at selling price. Stock Turnover
Ratio indicates the number of times the stock has been turned
over in business during a particular period.

Here Stock Turnover Ratio is 8.68 in the current year as

compared to previous year's 6.48
Name of the project : Specific Project 2
Study of contribution made by
VOLTAS LTD. (TATA Enterprise)
towards Profit , Revenue and
capital employed by different
segments.

Source Document : Newspaper cutting from Economic

Times Business Standards dated
24th May 2017 of Voltas Ltd.

Objectives of the project : To study and analyze segment

wise contribution to sales, profits
capital employed. net profit and
return on capital employed of the
company for year ended Mar 31,
2017.

Tools for analysis : Comparative Statements

Income statements

Period of Study : Year 2016-2017

 SEGMENT REVENUE
YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE

Segment A 265503 265503 100 44.01 %

603278

Segment A 33181 33181 100 5.50 %

603278

Segment C 304686 304686 100 50.50 %

603278

Total 603278

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE

Segment A 282884 282884 100 49.45 %

571982

Segment A 37062 37062 100 6.47 %

571982

Segment C 252095 252095 100 44.08 %

571982

Total 571982
 SEGMENT RESULTS

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

RESULTS

Segment A 8492 8492 100 13.68

62077

Segment A 9556 9556 100 15.40

62077

Segment C 44029 44029 100 70.93

62077

Total 62077

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

RESULTS

Segment A 5501 5501 100 10.87 %

50583

Segment A 11274 11274 100 22.29 %

50583

Segment C 33808 33808 100 66.83 %

50583

Total 50583
 CAPITAL EMPLOYED

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE

Segment A 100

Segment A 100

Segment C 100

Total

YEAR 2017

SEGMENT SEGMENT CALCULATION PERCENTAGE

REVENUE

Segment A 100

Segment A 100

Segment C 100

Total