A Project Report Afia - Finalreport1 (1)

8/9/2019 A Project Report Afia - Finalreport1 (1)

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A Study On

FINANCIAL ANALYSIS OF CLUB 24 LTD

For

Ventura India Pvt Ltd

Kalyani Nagar Pune!4""#"4$

By

%&'$ AFIA K(AN)

Submitted to

*Univer'ity +, Pune*

2#""!2#"2

Through

Allana In'titute O, &anage-ent S.ien.e' /&BA0

Pune!4""#"4

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Declaration

I, the undersigned, Ms. Afia Khan, student of MBA II Year of Allana Institute OfManagement Sciences, une as the author of this re!ort, hereby declare that the

dissertation is a result of my o"n #esearch "or$ and the same has not been !re%iously

submitted to any e&amination of this 'ni%ersity, or any other 'ni%ersity

(ate) **********************

lace) '+ -Afia Khan

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C E R T I F I C A T E

This is to certify that Project Report titled ________________________

_____________________________________________________________________

_____________________________________________________ (title of project in

inverted comma and underlined) is a bonade work carried out by

_________________________________________________________________

(Name of the student) of our Institute for fulllent of !aster of

"usiness #dinistration $!"#% degree of the &ni'ersity of Pune( )e

has worked under our guidance and super'ision( The aterial

referred fro other sources has been duly acknowledged(

Prof. R Ganesan Name of

Guide

Director Signature of

Guide

Date:

Place:

/. 0urrent #atio111111111111111111..23

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List f Ta!les


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4. 5uic$ Test #atio1111111111111111.....262. +et rofit Margin #atio11111111111111...787. 9ross rofit Margin #atio111111111111117/:. #eturn On In%estment #atio1111111111111.74;. #eturn On or$ing 0a!ital Turno%er #atio1111111111.7= //. Asset Turno%er #atio 111111111111111..73 /4. Fi&ed Asset Turno%er #atio1111111111111176 /2. (ebtors Turno%er #atio? A%erage 0ollection eriod1111.:8

1+( 0urrent @iabilities to


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IND1

C3ater "5 16e.utive Su--ary77777777$$Pg 8

C3ater 25 Intr+du.ti+n7777777$$$Pg ""

C3ater 95 C+-any Pr+,ile7777777$Pg ":

C3ater 45 Literature ;evie


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ACKNOL1D1&1NT

Achie%ement of tas$ is not an indi%idual effort but it is a combined effort of %arious

factors. Similarly, I "ould li$e to sho" my gratitude to staff members of the college,

for the successful com!letion of my !roect in order to !ay my res!ect to all I "ould

li$e to ac$no"ledge them.

To start "ith, I "ould li$e to than$ Mr An$it atiar, Senior Finance Manager, Centura

India %t @td, for gi%ing me a great o!!ortunity to carry out the !roect in this business

organiDation.

Secondly, I "ould li$e to e&tend my than$s to Eai Sharma #ama$anta Sahoo

Finance Manager Centura India %t @td and to all the em!loyees ?staff of the

com!any for their su!!ort.

I am grateful to rof #. 9anesan, the director of Allana Institute Of Management

Sciences, une, for granting me a!!ro%al to underta$e this !roect

I "ill be failing in my duty if I do not than$ my rofessor and roect 9uide, rof

1111111.., "ho has hel!ed me in re%ie"ing rectifying my !roect gi%ing

me guidance during the course of !roect "or$

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@ast but not the least this ac$no"ledgement could not be considered com!lete unless

"e record our gratitude to those "ho ha%e been directly or indirectly hel!ing us in

com!leting our !roect.

Than$ing you all,

1111111.

C3ater "5

11CUTIV1 SU&&A;Y

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C(APT1; "5 11CUTIV1 SU&&A;Y

The follo"ing !roect ga%e me a "onderful o!!ortunity to get ac


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13et ;orking 0apital

Turno'er Ratio/(,/ ,(/2 /(*. .(2

11 #sset Turno'er Ratio 2(++ 2(1, 2(11 2(.,

12

#'erage 0ollectionPeriod

( (1 (4 (/

1+ 0urrent ?iabilities to

78uity Ratio2(, 1(.- *(1* 2(12

CONCLUSION 5

The com!anyHs o%erall !osition loo$s bad. articularly the current yearHs !osition sho"s that

com!any hardly made any !rofits. It is better for the organiDation to go for auction loo$ing at the !resent mar$et scenario.

SU&&A;Y 5

/ After the analysis of Financial Statements, the com!any status seemed to be bad, because the +et"or$ing ca!ital of the com!any sho"s falling from the last yearHs !osition.

4 The com!any hardly made any !rofits in the current year so the decision to go for auction "asright on the !art of management in order to !re%ent the com!any from suffering losses.

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C(APT1; 2INT;ODUCTION

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;ati+ Analy'i' and Interretati+n

An Intr+du.ti+n

The ratio analysis and industry analysis tools belo" are %ery useful for indi%iduals to instantly

assess a com!any or industry by ma$ing t"o basic ty!es of com!arisons. First, the analyst can

com!are a !resent ratio "ith !ast -or e&!ected ratios for the organiDation to determine if there

has been an im!ro%ement or deterioration or no change o%er time. Second, the ratios of one

organiDation may be com!ared "ith similar organiDations or "ith industry a%erages at the same

!oint in time. This is a ty!e of en.3-arEing so that one may determine "hether the

organiDation is a%erage in !erformance or doing better or "orse than others. For the

!rofessional, conducting such in*de!th analyses is critical, allo"ing an analyst to ma$e an

informed business or in%estment decision.

In assessing the significance of %arious financial data, e&!erts engage in financial analysis, the

!rocess of determining and e%aluating financial ratios. A ratio is a relationshi! that indicates

something about a com!anyJs acti%ities.

#atios are only meaningful "hen com!ared "ith other financial information. A ratio is a ,lag

indicating areas of strength or "ea$ness.

In trend analy'i', financial ratios are com!ared o%er time, ty!ically years. Year!t+!year

.+-ari'+n' can highlight trends and !oint u! the need for action. Trend analysis "or$s best

"ith minimum three to ma&imum fi%e years of ratios. >hen it comes to in%esting, the massi%e

amount of numbers in a com!anyJs financial statements can be be"ildering and intimidating to

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many in%estors. o"e%er, through financial ratio analysis, you "ill be able to "or$ "ith these

numbers in an organiDed fashion. . o"e%er, through financial ratio analysis, you "ill be able to

"or$ "ith these numbers in an organiDed fashion.

N11D FO; T(1 STUDY

/.The study has great significance and !ro%ides benefits to %arious !arties "hom directly orindirectly interact "ith the com!any.

4.It is beneficial to management of the com!any by !ro%iding crystal clear !icture regardingim!ortant as!ects li$e li


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LI&ITATIONS

/. The study !ro%ides an insight into the financial statement. %ery study "ill be bound "ithcertain limitations.

4. The belo" mentioned are the constraints under "hich the study is carried out.

2. One of the factors of the study "as lac$ of a%ailability of am!le information. Most of theinformation has been $e!t confidential and as such as not assed as art of !olicy of com!any.Time is an im!ortant limitation. The "hole study "as conducted in a !eriod of ;8 days,"hich is not sufficient to carry out !ro!er inter!retation and analysis.

MTO(O@O9Y

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C(APT1; 9

CO&PANY P;OFIL1

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Ventura India Pvt Ltd

Clu 24 Li-ited ! P;OFIL1

CO&PANY OV1;VI1

0lub 47 @imited, doing business as Centura, !ro%ides business !rocess outsourcing ser%ices. It offerscustomer management outsourcing ser%ices, "hich include securing ne" customers, setting u! ne"customer accounts, !ro%iding customer ser%ice for general en


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e 3ave een -anaging .u't+-er' ,+r +ur .lient' ,+r +ver 4# year'$

Our outsourcing ser%ices include)

• Cu't+-er &anage-ent

• Sale' > Cu't+-er A.Gui'iti+n

• Det C+lle.ti+n

• Ba.E O,,i.e Pr+.e''ing

>e "or$ "ith a "ide range of clients including O4, 9oogle, British 9as and the (e!artment for

>or$ and ensions -(>.

>ith o%er 3,888 em!loyees and fi%e large*scale contact centres in the 'K and India, Centura is oneof the largest com!anies of its $ind.

Centura are !art of the Caita r+u.

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http://www.ventura-uk.com/services/customer-managementhttp://www.ventura-uk.com/services/sales-and-customer-acquisitionhttp://www.ventura-uk.com/services/debt-collectionhttp://www.ventura-uk.com/services/back-office-processinghttp://www.capita.co.uk/http://www.ventura-uk.com/services/sales-and-customer-acquisitionhttp://www.ventura-uk.com/services/debt-collectionhttp://www.ventura-uk.com/services/back-office-processinghttp://www.capita.co.uk/http://www.ventura-uk.com/services/customer-management


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;1A;DS > ;1CONITIONS

AA;DS

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Ventura Value'

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+al'

The goals should remain central to the "ay "e do things on a daily basis G they demonstrate ho" "e should

carry out our "or$ on a local and business le%el.

Create a great la.e t+ e create long term com!etiti%e ad%antage for our clients

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Deliver +ur r+-i'e'

>e deli%er our commitments and "e al"ays follo" through

VISION

It is im!ortant to remember that the future of Centura is not ust based on ho" "e do things. This enables us to

be successful, but "e must ha%e a focus and a strategy to get us there. The focus of that future is to be)

*Fir't .3+i.e ,+r .u't+-er -anage-ent +ut'+ur.ing*

Future success "ill be dri%en by !erformance in si& $ey areas)

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Our Client'

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C(APT1; 4

LIT1;ATU;1;1VI1

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;ATIO ANALYSIS

FINANCIAL ANALYSIS

Financial analysis is the !rocess of identifying the financial strengths and "ea$nesses of the firm andestablishing relationshi! bet"een the items of the balance sheet and !rofit loss account. Financialratio analysis is the calculation and com!arison of ratios, "hich are deri%ed from the information in acom!anyHs financial statements. The le%el and historical trends of these ratios can be used to ma$einferences about a com!anyHs financial condition, its o!erations and attracti%eness as an in%estment.The information in the statements is used by

L Trade creditors, to identify the firmHs ability to meet their claims i.e. li


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BASIS O; STANDA;DS OF CO&PA;ISON

#atios are relati%e figures reflecting the relation bet"een %ariables. They enable analyst to dra"

conclusions regarding financial o!erations. They use of ratios as a tool of financial analysis in%ol%esthe com!arison "ith related facts. This is the basis of ratio analysis. The basis of ratio analysis is offour ty!es.

L ast ratios, calculated from !ast financial statements of the firm.

L 0om!etitorHs ratio, of the some most !rogressi%e and successful com!etitor firm at the same !ointof time.

L Industry ratio, the industry ratios to "hich the firm belongs to

L roected ratios, ratios of the future de%elo!ed from the !roected or !ro forma financial statements

NATU;1 OF ;ATIO ANALYSIS

#atio analysis is a techni


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UID1LIN1S O; P;1CAUTIONS FO; US1 OF ;ATIOS

The calculation of ratios may not be a difficult tas$ but their use is not easy. Follo"ing guidelines or

factors may be $e!t in mind "hile inter!reting %arious ratios are

L Accuracy of financial statements

L Obecti%e or !ur!ose of analysis

L Selection of ratios

L 'se of standards

L 0aliber of the analysis

I&PO;TANC1 OF ;ATIO ANALYSIS

L Aid to measure general efficiency

L Aid to measure financial sol%ency

L Aid in forecasting and !lanning

L Facilitate decision ma$ing

L Aid in correcti%e action

L Aid in intra*firm com!arison

L Act as a good communication

L %aluation of efficiency

L ffecti%e tool

LI&ITATIONS OF ;ATIO ANALYSIS

L (ifferences in definitions

L @imitations of accounting records

L @ac$ of !ro!er standards

L +o allo"ances for !rice le%el changes

L 0hanges in accounting !rocedures

L 5uantitati%e factors are ignored

L @imited use of single ratio

L Bac$ground is o%er loo$ed

L @imited use

L ersonal bias

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CLASSIFICATIONS OF ;ATIOS

The use of ratio analysis is not confined to financial manager only. There are different !artiesinterested in the ratio analysis for $no"ing the financial !osition of a firm for different !ur!oses.Carious accounting ratios can be classified as follo"s)

/. Traditional 0lassification

4. Functional 0lassification

2. Significance ratios

"$ Traditi+nal Cla''i,i.ati+n

It includes the follo"ing.

L Balance sheet -or !osition statement ratio) They deal "ith the relationshi! bet"een t"o balancesheet items, e.g. the ratio of current assets to current liabilities etc., both the items must, ho"e%er,

!ertain to the same balance sheet.

L rofit loss account -or re%enue statement ratios) These ratios deal "ith the relationshi! bet"eent"o !rofit loss account items, e.g. the ratio of gross !rofit to sales etc.,

L 0om!osite -or inter statement ratios) These ratios e&hibit the relation bet"een a !rofit loss

account or income statement item and a balance sheet items, e.g. stoc$ turno%er ratio, or the ratio of

total assets to sales.

2$ Fun.ti+nal Cla''i,i.ati+n

These include li


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IN T(1 VI1 OF FUNCTIONAL CLASSIFICATION T(1 ;ATIOSA;1

/. @i


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/0 HUICK ;ATIO

5uic$ ratio is a test of li


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S(A;1 (OLD1;S FUND TOTAL ASS1TS

Share 0a!ital Fi&ed Assets

#eser%es Sur!lus Current A''et'

0ash in hand at ban$

Bills recei%able In%entories

Mar$etable securities

Short*term in%estments

Sundry debtors

re!aid &!enses

9$ ACTIVITY ;ATIOS

Funds are in%ested in %arious assets in business to ma$e sales and earn !rofits. The efficiency "ith

"hich assets are managed directly effect the %olume of sales. Acti%ity ratios measure the efficiency-or effecti%eness "ith "hich a firm manages its resources -or assets. These ratios are also calledTurn o%er ratiosN because they indicate the s!eed "ith "hich assets are con%erted or turned o%erinto sales.

L >or$ing ca!ital turno%er ratio

L Fi&ed assets turno%er ratio

L 0a!ital turno%er ratio

L 0urrent assets to fi&ed assets ratio

/a0 O;KIN CAPITAL TU;NOV1; ;ATIO

>or$ing ca!ital of a concern is directly related to sales.

>or$ing ca!ital 0urrent assets * 0urrent liabilities

It indicates the %elocity of the utiliDation of net "or$ing ca!ital. This indicates the no. of times the"or$ing ca!ital is turned o%er in the course of a year. A higher ratio indicates efficient utiliDation of"or$ing ca!ital and a lo"er ratio indicates inefficient utiliDation.

>or$ing ca!ital turno%er ratiocost of goods sold?"or$ing ca!ital.

0om!onents of >or$ing 0a!ital

0'##+T ASSTS 0'##+T @IABI@ITIS

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0ash in hand Out standing or accrued e&!enses

0ash at ban$ Ban$ o%er draft

Bills recei%able Bills !ayable

In%entories Short*term ad%ances

>or$*in*!rogress Sundry creditors

Mar$etable securities (i%idend !ayable

Short*term in%estments Income*ta& !ayable

Sundry debtors

re!aid e&!enses

/0 FI1D ASS1TS TU;NOV1; ;ATIO

It is also $no"n as sales to fi&ed assets ratio. This ratio measures the efficiency and !rofit earning

ca!acity of the firm. igher the ratio, greater is the intensi%e utiliDation of fi&ed assets. @o"er ratiomeans under*utiliDation of fi&ed assets.

Fi&ed assets turno%er ratio 0ost of Sales

+et fi&ed assets

0ost of Sales Income from Ser%ices

+et Fi&ed Assets Fi&ed Assets * (e!reciation

/.0 CAPITAL TU;NOV1; ;ATIOS

Sometimes the efficiency and effecti%eness of the o!erations are udged by com!aring the cost ofsales or sales "ith amount of ca!ital in%ested in the business and not "ith assets held in the business,though in both cases the same result is e&!ected. 0a!ital in%ested in the business may be classified aslong*term and short*term ca!ital or as fi&ed ca!ital and "or$ing ca!ital or O"ned 0a!ital and

@oaned 0a!ital. All 0a!ital Turno%ers are calculated to study the uses of %arious ty!es of ca!ital.

0a!ital turno%er ratio 0ost of goods sold

0a!ital em!loyed

0ost of 9oods Sold Income from Ser%ices

0a!ital m!loyed 0a!ital P #eser%es Sur!lus

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/d0 CU;;1NT ASS1TS TO FI1D ASS1TS ;ATIO

This ratio differs from industry to industry. The increase in the ratio means that trading is slac$ or

mechaniDation has been used. A decline in the ratio means that debtors and stoc$s are increased toomuch or fi&ed assets are more intensi%ely used. If current assets increase "ith the corres!ondingincrease in !rofit, it "ill sho" that the business is e&!anding.

0urrent Assets to Fi&ed Assets #atio 0urrent Assets

Fi&ed Assets

C+-+nent +, Current A''et' t+ Fi6ed A''et' ;ati+

CU;;1NT ASS1TS FI1D ASS1TS

0ash in hand Machinery

0ash at ban$ Buildings

Bills recei%able lant

In%entories Cehicles

>or$*in*!rogress

Mar$etable securities

Short*term in%estments

Sundry debtors

re!aid e&!enses

4$ P;OFITABILITY ;ATIOS

The !rimary obecti%es of business underta$ing are to earn !rofits. Because !rofit is the engine, thatdri%es the business enter!rise.

L +et !rofit ratio

L #eturn on total assets

L #eser%es and sur!lus to ca!ital ratio

L arnings !er share

L O!erating !rofit ratio

L rice G earning ratio

L #eturn on in%estments

/a0 N1T P;OFIT ;ATIO

+et !rofit ratio establishes a relationshi! bet"een net !rofit-after ta& and sales and indicates theefficiency of the management in manufacturing, selling administrati%e and other acti%ities of thefirm.

+et !rofit ratio +et !rofit after ta&

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+et sales

+et rofit after Ta& +et rofit -G (e!reciation -G Interest -G Income Ta&

+et Sales Income from Ser%ices

It also indicates the firmHs ca!acity to face ad%erse economic conditions such as !rice com!etitors,lo" demand etc. Ob%iously higher the ratio, the better is the !rofitability.

/0 ;1TU;N ON TOTAL ASS1TS

rofitability can be measured in terms of relationshi! bet"een net !rofit and assets. This ratio is also$no"n as !rofit*to*assets ratio. It measures the !rofitability of in%estments. The o%erall !rofitabilitycan be $no"n.

#eturn on assets +et !rofit

Total assets

+et rofit arnings before Interest and Ta&

Total Assets Fi&ed Assets P 0urrent Assets

/0 ;1S1;V1S AND SU;PLUS TO CAPITAL ;ATIO

It re%eals the !olicy !ursued by the com!any "ith regard to gro"th shares. A %ery high ratioindicates a conser%ati%e di%idend !olicy and increased !loughing bac$ to !rofit. igher the ratio

better "ill be the !osition.

#eser%es sur!lus to ca!ital #eser%es sur!lus

0a!ital

/d0 1A;NINS P1; S(A;1

arnings !er share is a small %erification of return of e


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/e0 OP1;ATIN P;OFIT ;ATIO

O!erating ratio establishes the relationshi! bet"een cost of goods sold and other o!erating e&!enses

on the one hand and the sales onthe other.

O!eration ratio O!erating cost

+et sales

o"e%er =: to 3:Q may be considered to be a good ratio in case of a manufacturing underta$ing.O!erating !rofit ratio is calculated by di%iding o!erating !rofit by sales.

O!erating !rofit +et sales * O!erating cost

O!erating !rofit ratio O!erating !rofit

Sales

/,0 P;IC1 ! 1A;NIN ;ATIO

rice earning ratio is the ratio bet"een mar$et !rice !er e


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The ratio is generally calculated as !ercentages by multi!lying the abo%e "ith /88.

C(APT1; :

;1S1A;C(

&1T(ODOLOY

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&1T(ODOLOY

;e'ear.3 de'ign5 De'.ritive ;e'ear.3$

(escri!ti%e research design is a scientific method "hich in%ol%es obser%ing and describing the

beha%ior of a subect "ithout influencing it in any "ay.

In order to gather sufficient information on the to!ic, and to get the !ractical $no"ledge of the subect matter

and the "ay it is analyDed, both the sources of data, that is rimary Source and Secondary Source ha%e been

used.

Pri-ary Data) A rimary (ata is a (ata, "hich is collected by the researcher himself, through his disco%ery

and findings.

Se.+ndary Data5 A secondary data is a data, "hich is collected from other sources he can ta$e hel! of

different reference boo$s, or any other !erson for his research.

First hand Information is collected *

/. >ay the business decisions are ta$en based on %arious #atios.

Se.+ndary In,+r-ati+n

The basic source for these ratios is the com!anyJs financial statements that contain figures on assets,

liabilities, !rofits, and losses.

"$ In,+r-ati+n re.eived ,r+- Annual ;e+rt'$

2$ Vari+u' Finan.ial ++E'

9$ 16ert' and Internet

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C(APT1; =

DATA ANALYSIS>

INT1;P;1TTIONS

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LIHUIDITY ;ATIOS

CU;;1NT ;ATIO5

F+r-ula5

Year Current A''et' Current Liailitie' ;ati+

an J #8 ;;/3; 76827 /.2:

an J #@ ;8/6= 26/=2 /.:7

an J "# ::;;: 743;: /.28

an J "" 7:327 466;: /.:2

;AP(ICAL ;1P;1S1NTATION5

Interretati+n5

The higher the current ratio, the better is the li


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HUICK T1STACID T1ST ;ATIO5

F+r-ula5


Interretati+n5

The acid*test ratio is a rigorous measure of a com!anies ability to ser%ice short*term liabilities. 9enerally an

acid*test ratio of /)/ is considered satisfactory as a firm can easily meet all current claims.

P;OFITABILITY ;ATIOS

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5uic$ Test5uic$ Asset

0urrent @iabilities


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N1T P;OFIT &A;IN /05

F+r-ula5

YearNet Pr+,it A,ter

Ta6Net Sale' ;ati+

an J #8 /:278 /7=//= /8.72

an J #@ 4;/3 /44264 4./7

an J "# //;: /8=//2 /.86

an J "" 27 //74== 8.82


Interretati+n5

A high net !rofit margin "ould ensure ade


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Interretati+n5

A com!any should ha%e a reasonable gross !rofit margin to ensure ade


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#eturn OnIn%estment -Q

BIT

Total Assets

Year 1BIT T+tal A''et' ;ati+

an J #8 4823= 32=8; 47.2;

an J #@ /=/4 =:4/6 4.43

an J "# =7/ ;3337 /.83

an J "" /78 ::462 8.4:


Interretati+n5

This is the ratio bet"een net !rofits and shareholders funds. The ratio is generally calculated as !ercentage multi!lying "ith /88.

#OI measures the o%erall effecti%eness of management in generating !rofits "ith its a%ailable assets.

From the abo%e gra!h it can be inter!reted that the com!any had a %ery small return of in%estment in the years

4886, 48/8 48//.

This means that the com!any had no source for in%estment or "as unable to generate !rofit "ith its a%ailable

assets therefore 0lub 47 a!!roached 0a!ita for auction in order to !rotect itself from suffering losses.

;1TU;N ON 1HUITY5

F+r-ula5

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#eturn On


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arnings !er Share -R

-+et rofit After Ta& Greferred stoc$ (i%idends

A%erage Of 0ommonShares

YearNet Pr+,it A,ter

Ta6 N+$ O, S3are' ;ati+

an J #8 /:278888 48888/ =;.=8

an J #@ 4;/3888 48888/ /2.86

an J "# //;:888 48888/ :.34

an J "" 27888 48888/ 8./=


Interretati+n5

arnings !er share ratio are used to find out the return that the shareholderHs earn from their shares.

After charging de!reciation and after !ayment of ta&, the remaining amount "ill be distributed by all

the shareholders.

S is the measure of !rofitability of a firm from the o"ner !oint of %ie".

S of Centura sho"s a continuous fall due to the im!act of recession on the com!any.

ACTIVITY ;ATIOS

INV1NT;Y TU;NOV1; ;ATIO

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F+r-ula5

(ays Of In%entory

-days

0ost Of 9oods Sold

A%erage In%entory

$earCost f

Goods SoldA%erage

In%entor& Ratio

Jan ' 09 11+2.. +(,2,*.+(

//

Jan ' 10 1.11* 2+++-*(

+

Jan ' 11 122*42 14(,-2.-(,

1


Interretati+n5

Since it is an ser%ice com!any it has the high in%entory turno%er ratio. It ser%es the customer based

on its demand. ence the in%entory turno%er ratio is high in all the years.

N1T O;KIN CAPITAL TU;NOV1;5

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F+r-ula5

+et >or$ing0a!ital Turno%er

+et Sales

+et >or$ing 0a!ital

Year Net Sale' Net +rEing Caital ;ati+

an J #8 /7=//=888 /=/:4888 3.:3

an J #@ /44264888 4/847888 :.34

an J "# /8=//2888 /4388888 3.2=

an J "" //74==888 /:3;6888 =.48


Interretati+n5

A measurement com!aring the de!letion of "or$ing ca!ital to the generation of sales o%er a gi%en

!eriod. This !ro%ides some useful information as to ho" effecti%ely a com!any is using its "or$ing

ca!ital to generate sales.

In the year 4886, there is a fall in the net "or$ing ca!ital turno%er ratio.

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ASS1T TU;NOV1; ;ATIO5

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Year Sale' T+tal A''et' ;ati+

an J #8 4823=/888 32=8;888 4.77

an J #@ /;/6;4888 =:4/6888 4./:

an J "# /7:/2:888 ;3337888 4.//

an J "" /:42/=888 ::462888 4.=:


Interretati+n5

This "ill sho" ho" fully a com!any is utilising its assets. A lo" turno%er sho"s that a com!any is

not generating a sufficient %olume of business for the siDe of the asset base. This may be remedied by

increasing sales or by dis!osing of some of the assets or both.

From the abo%e gra!h it can be seen that the asset turno%er ratio, "as almost the same in all four

years.

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AssetTurno%er

Sales

Total Assets


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FI1D ASS1T TU;NOV1; ;ATIO5

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Fi&ed Asset

Turno%er

Sales

Fi&ed Assets

Year Sale' Fi6ed A''et' ;ati+

an J #8 4823=/888 /=:48888 //.;7

an J #@ /;/6;4888 /:844888 /8.=3

an J "# /7:/2:888 /24/6888 /8.63

an J "" /:42/=888 67:6888 /;./8


Interretati+n5

Fi&ed assets are used in the business for !roducing the goods to be sold. This ratio sho"s the firmHsability in generating sales from all financial resources committed to total assets. The ratio indicatesthe account of one ru!ee in%estment in fi&ed assets.

Year 48// sho"s the highest fi&ed asset turno%er .

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D1BTO;S TU;NOV1; ;ATIO AV1;A1 COLL1CTION P1;IOD5

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(ebtors Turno%er #atio-(T#

+et 0redit Sales

A%erage (ebtors

$earNet Credit

SalesAverage Debtors

DTRDa&

sA%erage CollectionPeriod

Jan ' 09 1-14-2 **-1-(, +(/2 *- .,

Jan ' 10 1+,1*, 2,,*.(, ,(-/ *- -*Jan ' 11 1,2*1. 2-,-- ,(.* *- -*


Interretati+n5

To assess the efficiency in the management?collection of Accounts recei%able. It sho"s ho"


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L1V1;A1 ;ATIOS

CU;;1NT LIABILITI1S TO 1HUITY ;ATIO5

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0urrent @iabilities

to e


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Ot3er Leverage ;ati+'5

Interretati+n5

The com!any is a debt free com!any.

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(ebt to


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T;1ND ANALYSIS

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Trend Analy'i'

Trend analysis is %aluable "hen one "ants to use historical data to !redict future %alues or to calculatee&!ected %alues for com!arison to actual current %alues.Trend analysis is also useful for identifying une&!ected %ariances that may indicate strategic or o!erationalchanges or entity "ea$nesses "orthy of additional e&!loration and analysis.

T;1ND BALANC1 S(11T


INT1;P;1TATION5

From the abo%e gra!h, the !attern of increase decrease in the liabilities can be obser%ed.

It can be obser%ed that the com!anies #etained arnings "as lo"est in the year 48/8, ho"e%er trade

other !ayables "as high in the same year.

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Liailitie' 2#"" 2#"# 2##@ 2##8

Share 0a!ital 8.2; 8.46 8.4= 8.47

#etained arnings 4:.48 /6.:= 46.43 42./=Other liabilities 48.47 /=.6/ /=.64 /;.3=

(eferred ta& liability 8.88 8.88 8.7; /./7

Trade other !ayables :7.8= ;/.66 :8.27 :8.3/

0urrent income ta& liabilities 8./4 8.47 /.=7 =.==


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A''et' 2#"" 2#"# 2##@ 2##8

ro!erty,!lant e


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INCO&1 STAT1&1NT5

In.+-e State-ent

Parti.ular' 2#"" 2#"# 2##@ 2##8

#e%enue /:42/= /7:/2: /;/6;4 4823=/9ross rofit 23878 23844 26:=8 :;=:7

O!eratingrofit /78 =7/ /=/4 4823=

+et rofit 27 //;: 4;/3 /:278


INT1;P;1TAION5From the abo%e gra!h it can be concluded that the +et rofit of the com!any is

falling drastically e%ery year "hich lea%es the com!any only "ith 4 o!tions either to come u! "ith

some ne" business or go for auction. 0om!any too$ a "ise decision to sell itself to 0a!ita.The net

!rofit the gross !rofit is decreasing due to decline in the sales.

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C(APT1; ?

FINDINS

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FINDINS OF T(1 STUDY 5

/. The current ratio has sho"n steady trend as /.2:, /.:7, /.28 /.:2.

4. The


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C(APT1; 8

CONCLUSION

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CONCLUSION 5

The com!anyHs o%erall !osition loo$s bad. articularly the current yearHs !osition sho"s thatcom!any hardly made any !rofits. It is better for the organiDation to sale the sta$e and hence thesta$e had been sold to the ca!ita.

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0AT# 6

A++'#

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BIBLIO;AP(Y

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Bili+gra3y5

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Sr

no

Aut#or

Name 'oo( Name

Editio

n1 ! A Bhan


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>B SITS CISIT(

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3tt5

A Project Report Afia - Finalreport1 (1)

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