Retio Analisys of Vadilal (Jigar)

8/9/2019 Retio Analisys of Vadilal (Jigar)

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AA

PPROJECTROJECT RREPORTEPORT

OONN

AATT

IS SUBMITTED TOIS SUBMITTED TO

PP R O FR O F . H. H A R E S HA R E S H OO Z AZ A ..

V .M.PATELV.M.PATEL

COLLEGECOLLEGE

OF MANAGEMENT STUDIESOF MANAGEMENT STUDIES

GANPATGANPAT UNIVERSITYUNIVERSITY ,,

KHERKHERVAVA

IN PARTICAL FULFILMENT OF THE RIQURMENTIN PARTICAL FULFILMENT OF THE RIQURMENT

FOR THE DEGREE OFFOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATIONBACHELOR OF BUSINESS ADMINISTRATION

SUBMITTE BYSUBMITTE BY

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PATEL JIGAR R.PATEL JIGAR R.

R OL L N O:-111 (R OL L N O:-111 ( CC ))

T .Y .B.B .A.T.Y.B.B .A.

Shri V. M. Patel College of Management

studies

Ganpat Vidhyanagar, Kherva

T hi s i s t o c e r t i f y t h a t M r. P AT E L J IG A R .R s tu d e n t o f

T . Y .B . B. A R o l l N o : - 1 1 1( C ) a n d E x am N o : - F r om V . M . P a t e l

C o l l e g e o f M a na g em e nt s t ud i es G a np a t U n iv e rs i t y , K h er v a h a s

u nd er g on e p ra c t ic a l t ra in in g i n Va d i la l h ou s e l td I n a re a o f

f i n a n c i a l a n a l y s i s a s a p a r t o f c u r r i c u l u m .

D A T E : - P R O F . IN C H A R G E : -

P L A C E : - P R I N C I P A L : -

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As a part of T.Y.B.B.A syllabus the project report is must for the student. It is

providing real opportunity for student to apply his theoretical knowledge in practical

field. In the area of competition and globalization, the marketing researches gain

performance. It also gives the experience of the practical field. Today in there is

competition and due to the change in taste and preference of customer.

This will be help the student to bring our and exhibitor qualities which in no

way can be exhibited by theoretical training. It helped us to get better prospective

and understanding of the working condition of the various industries.

As per the task of the BBA programme. I got the opportunity to task the

industrial training. I visited Vadilal house ltd At Chhatral, Dist. Ahmedabad. It was a

great and golden chance for me to enrich my knowledge with the on going

managerial project of the company

During the golden period I found all the necessary information and knowledge

of this industry and particularly of this industry and particular of its financial

analysis.

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I wish to acknowledgment the help of all these who have provided me with

information, guidance and other help during my training period without their help it

would have been difficult for me to have reached this state of completion my

training.

In written this project report. I have drawn on thoughts from a variety of

discipline that has bearing on the different facts of the topics. I own a profound

intellectual debt to numerous authors whose ideas and contribution have shaped my

thinking on this subject.

I am thankful to Mr. S. Solanki the chairman of the company for giving me

this opportunity to under go training at Vadilal house ltd At, Chhatral, Dist.

Ahmedabad. In which I have taken vital experience.

I am heartily thankful to Mr. Manishbhai. Patel who is the in charge of the

training section of the company. He has given me full co-operation to give me all the

information about my topic.

Thank you.

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IINDEXNDEX

6

no Particular Page no1 GGENERALENERALINFORMATIONINFORMATION 6

1.1 History 7

1.2 Location 10

1.3 Management body 12

1.4 Division of the company 13

1.5 Organization structure 141.6 Growth of the company 15

1.7 Some special feature 161.8 Future strategy

2 RRATIOATIOANALYSISANALYSIS

2.1 L i qu i di t y R a t i o

2.2 N n et w o rk i n g c a p i t a l r a t io

2.3 L e v e r a g e Ra t i o

2.4 D D e b t s r a t io

2.5 A Ac t iv i ty r a t io

2.6 T o T o ta l a ss e t s t u r n o v e r r a t io

2.7 F i F i x e d a ss e t s t u r n ov e r r a t i o

2.8P p P r o f i t a b i l i t y r a t i o

2.9 R e t u r n o n e q u i t y

2.10 C o m m o n s i z e s t a t e m e n t

2.11 F i n a n c i a l r e s u l t

2.12 D o p o i n t c h a r t

3 C O N C L U S I O NC O N C L U S I O N


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HISTORY

Before 78 years ago, late shri vadilal Gandhi commenced the business of making ice-cream

with the help of hand chanked machine in a small in retail outlet. To satisfy customers; demand

Mr. Gandhi started ice cream factory in dudheswar.to grow up the business and also increasingdemand of customers two another plants were started one is situated in Bareilly (U.P) and another

is in pundhara.

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In 1997 vadilal was converted from private limited company into public limited. With sort

time the company got popularity in each houses for ice cream. So the companys name has become

popular synonymous with ice cream over the last few year processed and froze food products like

assumed great significant in the scheme of things. The company has also started contribution

business.

LOCATION

To decide right location is very important for any suitable location is very helpful to expandbusiness.

Location of vadial industries ltd. Is very suitable the business.

REGISTERED OFFICE

5th floor,Aditya buildingNr. Sardar Patel seva samaj hall,Mithakhali six roads,Ahmedabad-380006

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CORPORATE OFFICE

VADILAL OFFICEShimali society,Nr.Navarngpura,railway crossing,Navarangpura,Ahmedabad-380006.

COMPANY AT GLANCE

NAME OF ORGANISATION

Vadilal house ltd limited.

SIZE OF UNIT

Large scale of unit

DATE OF ESTABLISHMENT

1926

FORM OF ORGANISATION

Public limited.

LOCATION OF FACTORY

= Dudhsagar, Ahmedabad.= pundhara, Gandhinagar.= Bareilly, U.P.

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= Dharampur, valsad.

MAIN DIVISION

= ice cream division= forex division= construction division

FAMOUS PRODUCT OF ICE CREAM

= vanilla= butter scoth= kaju drax

LARGE ICE CREAM

Sunday

COMPITITIORS

= amul=have more= quality walls= mother dairy= pestonji

MARKET SHARE IN INDIA

25%

TOTAL PRODUCT

About 200 product

PRODUCTIN

100000 litters per day

ANNUAL TURNOVER

RS. 1500 Millions

PUNCH LINE

pure vegetarianthe cream of India the ice cream expert

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COMPANY REGISTARY NO.

04,5169

NUMBER WORKERS

700 total workers

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MANAGING BODY

Chairman : Mr. Rameshchandra R. GandhiVice chairman : Mr.Virendra R. GandhiM.D. : Mr. Rajesh R.Gandhi

Mr. deviance R. GandhiDirectors: Mr. C.M. Maniar

Mr. V.G. PatelMr. M.N. VoraMr. laxmikant B.Mr. khitish M. shahMr. Dilip K. Patel

COMPANY SECRETARY

Mr. Vijay A. Shah.

AUDITORS

M/s Kantilal PatelChartered AccountantAhmedabad.

BANKERS

Bank of BarodaState bank of IndiaState bank of travancoreAxis bankSotuh Indian bankTextile traders co-operative bank ltd.

E-MAIL ADDRESS

www.vadilalgroup.comwww.vadilalmarkets .com

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DIVISION OF COMPANY

1. ICE CREAM DIVISION.

Vadilal is the first organization sector that is the making the ice cream. A vadilal

house ltd is very popular for their ice cream. The name of vadilal has become synonymous with

different types of ice cream, and their flavors. Vadilal offers widest range of ice cream and frozens

desaerts above 200 in the category in packs including cups , party packs, family bricks , cones and

candies.

2. PROCESSED FOOD DIVISIONS

Vadilal house ltd limited entered the horticulture processing industry in May 1991. in

process food division they produce 40 types of vegetable frozen and 8types of fruit frozen. The

foods are processed using IOF ( individually qua;ity frozen ) technique. 30%-processed foods are

exported in India and & 70% -processed foods are exported in other bcountries like Australia,

Malaysia, USA, Europe, uae, Kuwait, afrika, and Canada.

3. FOREX DIVISION

Vadilal started the forex division in 1996. in forex division they provide the service of

foreign exchange and also provide the service of gold building.

4. CONSTRUCTION DIVISION

It is new business for vadilal house ltd ltd. In this division company constructs the

house for selling purpose. For construction purpose organization has big plants in thaltej near

ahmedabad.

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ORGANISATION STRUCTUREORGANISATION STRUCTURE

Senior Senior Senior Senior Manager Manager Manager Manager

Assistant deputy managermanager Manager Managers &

Sales men

Executive Executive Accounting MarketingManager Manager Manager Executives

SupervisorSales

Assistance officers executivesAssistant

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PRODUCTIONPRODUCTION

DEPARTMENTDEPARTMENT

HRHR

DEPARTMENTNTDEPARTMENTNT

FINANCEFINANCE


MARKETINGMARKETING


MANAGING DIRECTORMANAGING DIRECTORMANAGING DIRECTORMANAGING DIRECTOR

GENERAL MANAGERGENERAL MANAGERGENERAL MANAGERGENERAL MANAGER


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GROWTH OF THE COMPANY

VADILAL HOUSE LTD LTD. Is the well-reputed co in India. It was established in

1926. At that time ice factory was producing the products. But now there are big factories to

produce the ice creams.

1) Dudhesear ( ahmedabad )

2) Pundhara

3) Bareilly

At that time the ice cream was made by the hand cranked machine.

But now the machines were transported by the other countries.

At that time only one ice cream division but now the forex division,

Process food division,and constriction division are included.

VADILAL HOUSE LTD LTD. Covered 25% market share of all Indian ice cream.

Now, VADILAL HOUSE LTD LTD has become one of the largest cold chain

network in the country comprising is 18 C & f agent, 250 distributors and 16000

retailers.

VADILAL HOUSE LTD LTD. Was started by only few people but now there are

700 employees in this organization.

Now, VADILAL HOUSE LTD LTD. Is asias number one fast going ice cream

industries.

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SOMESPECIALFEATURE

On November 10-2001 VADILAL HOUSE LTD LYD broke its own record by

making the largest ice-cream sundae. The ice-cream sundae was made using 4950

liters of ice-cream, 125kg dry fruits and 39 litters of sauces. The length of the

sundae was 20 feet and height was 9 feet.

There is no trade any one to which there is no strikers at all.

The company doesnt follow any grievance handing process or collective

bargaining because there is co-operation between all the levels of management and

there is complete harmony, peace and co-ordination among workers.

Vadilals bareillly plant has awarded the coveted ISO 9002 accreditation and

HACCP certificate.

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FUTURESTRATEGY

The company is planning to introduction new flavor in ice-cream as per the

customers demand.

The company is planning to export the ice-cream in other country.

VADILAL HOUSE LTD wants to export process food in more and more country.

VADILAL HOUSE LTD also increases the sale of process food in Indian market.

Company dreams to the business and achieve the more market share.

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M A N A G I N G D I R E C T O R

F I N A N C I A L M A N A G E R

A S S I S T A N T O F F I N A N C I A L M A N A G E R

S T A F F

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B A L A N C E S H E E T A S A T 3 1 S T M A R C H 2 0 0 7

P A R T I C U L A R 2 0 0 6 - 2 0 0 7

( R s . i n l a k h )

2 0 0 5 - 2 0 0 6

( R s . i n l a k h )

S O U R C E O F F U N D S

s h a r e h o l d e r s f u n d s

S h a r e c a p i t a l 1 1 2 6 . 0 1 9 0 0 . 0 0

R e s e r v e & s u r p l u s 3 5 7 8 . 1 1 3 0 4 7 . 6 6

4 7 0 4 . 1 2 3 9 4 7 . 6 6

L O A N F U N D S

S e c u r e d l o a n 7 7 1 . 3 5 7 9 7 . 3 6

U n s e c u r e d l o a n 6 7 1 . 0 5 5 0 6 . 9 8

1 4 4 2 . 4 0 1 3 0 4 . 3 4

D e f e r r e d t a x l i a b i l i t y 1 0 3 5 . 7 8 8 8 1 . 4 4

7 1 8 2 . 3 0 6 1 3 3 . 4 4

A P P L I C A T I O N O F F U N D S

F i x e d A s s e t s

G r o s s B l o c k 7 8 9 2 . 2 4 6 7 2 3 . 2 1

L e s s : D e p r e c i a t i o n 2 8 4 5 . 9 3 2 4 9 7 . 5 2

N e t b l o c k 5 0 4 6 . 3 1 4 2 2 5 . 6 9

C a p i t a l W - I - P 1 5 6 . 2 1 9 9 . 2 3

5 2 0 2 . 5 2 4 3 2 4 . 9 2

I N V E S T M E N T S 0 . 2 7 0 . 2 6

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C U R R E N T A S S E T S , L O A N &

A D V A N C E

I n v e n t o r i e s 3 4 4 8 . 0 6 2 5 8 2 . 6 3

S u n d r y d e b t o r s 1 1 2 1 . 3 4 1 5 5 6 . 8 6

C a s h & b a n k b a l a n c e 5 0 2 . 3 8 3 5 8 . 9 7

L o a n & a d v a n c e s 4 9 4 . 6 1 4 0 0 . 3 5

5 5 6 6 . 3 9 4 8 9 8 . 8 1

L E S S :

C U R R E N T L I A B I L I T I E S

A N D P R O V I S I O N

L i a b i l i t i e s 3 4 5 9 . 2 9 2 9 8 9 . 0 2

P r o v i s i o n 1 2 7 . 0 2 1 0 1 . 5 3

3 5 8 6 . 3 1 3 0 9 0 . 5 5

N e t c u r r e n t a s s e t s 1 9 8 0 . 0 8 1 8 0 8 . 2 6

M i s c e l l a n e o u s

E x p e n d i t u r e 0 . 5 7 0 . 0 0

7 1 8 2 . 3 0 6 1 3 3 . 4 4

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P R O F I T & L O S S A C C O U N T F O R T H E Y E A R E N D E D O N

3 1 S T M A R C H 2 0 0 7

P A R T I C U L A R 2 0 0 6 - 2 0 0 7

( R s . i n l a k h )

2 0 0 5 - 2 0 0 6

( R s . i n l a k h )

I N C O M E

S a l e s & i n c o m e f r o m

O p e r a t i o n s 17 3 2 5 . 3 5 1 3 3 3 6 . 0 7

L e s s : E x c i s e D u t y 2 2 1 9 . 2 1 1 5 6 3 . 5 7

1 5 1 0 6 . 1 4 1 1 7 7 2 . 5 0

I N C O M E F R O M P O W E R

G e n e r a t i o n 1 6 1 . 7 7 9 7 . 5 4O t h e r i n c o m e 2 . 0 9 1 . 4 7

1 5 2 7 0 . 0 0 1 1 8 7 1 . 5 1

E X P E N D I T U R E

M a t e r i a l c o s t 9 8 3 3 . 2 4 7 7 9 5 . 3 7

E m p l o y e e s R e m u n e r a t i o n

A n d b e n e f i t s 5 6 2 . 7 2 5 0 8 . 4 7

F i n a n c i a l e x p e n s e 3 3 3 . 8 8 2 5 3 . 7 7

O t h e r e x p e n s e s 3 2 1 5 . 6 9 2 3 3 0 . 6 7

D e p r e c i a t i o n 3 9 4 . 3 1 3 5 6 . 2 7

1 4 3 3 9 . 9 4 1 1 2 4 4 . 5 5

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N E T P R O F I T 9 3 0 . 1 0 6 2 6 . 9 6

L e s s : I n c o m e 7 0 . 3 2 6 6 . 6 5

L e s s : D e f e r r e d t a x l i a b i l i t y 2 6 5 . 3 5 1 5 4 . 3 4

P R O F I T A F T E R T A X A T I O N 5 9 4 . 4 3 4 0 5 . 9 7

B a l a n c e b r o u g h t f o r w a r d 4 2 3 . 2 8 2 0 5 . 7 3

1 0 1 7 . 7 1 6 1 1 . 7 0

P R O F I T A V A I L A B L E F O R

A P P R O P R I A T I O N

A P P R O P R I A T I O N

P r o p o s e d d i v i d e n d 1 1 2 . 6 0 9 0 . 0 0

D i v i d e n d t a x 1 4 . 4 2 1 1 . 5 3

T r a n s f e r t o g e n e r a l 1 2 7 . 0 2 1 0 1 . 5 3

R e s e r v e 2 4 1 . 0 8 3 0 0 . 0 0

B a l a n c e c a r r i e d f o r w a r d 2 1 4 . 6 1 2 1 0 . 1 7

5 8 2 . 7 1 6 1 1 . 7 0

E a r n i n g p e r s h a r e ( i n R s . ) 5 . 7 9 4 . 5 1

( F a c e v a l u e o f R s . 1 0 / - )

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L I Q U I D I T Y RA T I O

This ratio measures the firms ability to meet current obligation. A firm ensures that it does

not surer from lack of liquidity and also does not have excess liquidity. The failure of a co. to meet

its obligation due to lack of sufficient liquidity will result in a poor credit worthiness loss of

creditors confidence or even in legal tangle resulting in the closure of the company.

C u r r e n t r a t i o : -

C u r r e n t A s s e t sC u r r e n t R a t i o =

C u r r e n t L i a b i l i t y

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

5 5 6 6 . 3 9 4 8 9 8 . 8 1

= =

3 5 8 6 . 3 1 3 0 9 0 . 5 5

= 1 . 5 5 = 1 . 5 9

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 1 . 5 9

2 0 0 6 - 2 0 0 7 1 . 5 5

This current ratio measures the firms ability to meet it current obligation.

Generally 2:1 ratio is preferable here the current ratio is high because of high current

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that represent the first high ability to meet its current obligation. In year 2005-2006

and 2006-2007 are 1.59 and 1.55 respectively.

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QQ U I C K U I C K R A T I OR A T I O

C U R R E N T A S S E T S IN V E N T O R I E S

=

C U R R E N T L I A B I L I T Y

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

5 5 6 6 . 3 9 -3 4 4 8 . 0 6

4 8 9 8 . 8 1 - 2 5 8 2 . 6 3

= =

3 0 9 0 . 5 5

= 0 . 5 9 = 0 . 7 5

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 0 . 7 5

2 0 0 6 - 2 0 0 7 0 . 5 9

Quick ratio represents the company ability to meet its immediate obligation.

Here the ratio is whole year the ratio excludes the inventory and bank over staff.

Here the ratio the year 2005-2006 and 2006-2007 are 0.59 and 0.55 respectively.

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NN E TE T W O R K I N GW O R K I N G C A P I T A LC A P I T A L R A T I OR A T I O

Net working capital means the different between current assets & current

liabilities: excluding short term bank borrowing is called net working capital or are

as firms liquidity.

N E T W O R K I N G C A P I T A L =

N E T A S S E T S

NN E TE T WW O R K I N GO R K I N G CC A P I T A LA P I T A L : - C U R R E N T A S S E T S C U R R E N T L I A B I L I T I E S

NN E TE T AA S S E T SS S E T S :: - F I X E D A S S E T S + C U R R E N T A S S E T S C U R R E N T

L I A B I L I T I E S

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

1 9 8 0 . 0 8 1 8 0 8 . 2 6= =

7 1 8 2 . 6 0 6 1 3 3 . 1 8

= 0 . 2 8 = 0 . 2 9

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 0 . 2 9

2 0 0 6 - 2 0 0 7 0 . 2 8

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The ratio shows the proportion of the working capital in net assets. If the ratio

is high than the more proportion of working capital in total assets. If the ratio is for

the higher than the working capital remain idle and the ratio is lower than the it is

bed for the company. Here the ratio for year 2005-2006 and 2006-2007 are 0.29and 0.28 respectively.

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LL E V E R A G EE V E R A G E RRA T I OA T I O

To judge the long-term financial position of the firm financial leverage of

capital structure ratio are calculated. The process of magnify the share holder return

through the use of debt is called Financial leverage or Financial gearing or

Trading on equity.

Leverage ratio are calculates of measure the financial risk and the firms

ability if using debts.

DD E B T SE B T S E Q U I T YE Q U I T Y R A T I OR A T I O : -: -T O T A L D E B T S

=N E T W O R T H

TT O T A LO T A L DD E B T SE B T S == S E C U R E D L O A N + U N S E C U R E D L O A N + S U N D R YC R E D I T O R

NN E TE T W O R T HW O R T H == S H A R E C A P I T A L + RE S E R V E & S U R P L U S

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

2 5 6 3 . 7 4 2 8 6 1 . 2 0

= =4 7 0 4 . 1 2 3 9 4 7 . 6 6

= 0 . 7 2

= 0 . 5 4

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Y E A R RA T I O

2 0 0 5 - 2 0 0 6 0 . 7 2

2 0 0 6 - 2 0 0 7 0 . 5 4

The debt equity ratio describes lenders contribution for each rupee of the

owners contribution. Here the debts equity ratio for the year 2005-2006 and 2006-

2007 are 0.72 and 0.54 respectively.

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DD E B T SE B T S R A T I OR A T I O

The some type of debts may be used analysis the large term solvency of a

firm. The total debt will include the short term and long term borrowing from

financial justitution, debenture, differed payment agreement for laying capital

equipment bank borrowing public deposit and other interest-bearing loan.

T O T A L D E B T S

DD E B T SE B T S R A T I OR A T I O ==N E T A S S E T S

2006-2007 2005-2006

2 5 6 3 . 7 4 2 8 6 1 . 2 0= =

7 1 8 2 . 6 0 6 1 3 3 . 1 8

= 0 . 3 6 = 0 . 4 7

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 0 . 4 7

2 0 0 6 - 2 0 0 7 0 . 3 6

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Here by looking this figures debts ratio. We that there is gradual change in the

level of propriety funds rashers than wanders contribution on year 2005-2006 and

2006-2007 the debts ratio of 0.47 and 0.36 respectively.

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AA C T I V I T YC T I V I T Y R A T I OR A T I O

The activities ratio are employed to evaluate the efficiency with the firm

manager utilize its assets. Their ratio are also called Term over ratio the reason is

because they indicate the opened with which assets are counter or turn over into

sales. Thus this ratio shows the relationship between share assets.

S A L E SN E T A S S E T S T U R N R A T I O =

N E T A S S E T S

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

1 7 3 2 5 . 3 5 1 3 3 3 6 . 0 7

= =

7 1 8 2 . 6 0 6 1 3 3 . 1 8

= 2 . 4 1 = 2 . 1 7

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 2 . 1 7

2 0 0 6 - 2 0 0 7 2 . 4 1

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Net assets turn over measures the company ability of sales for a given level of

assets. A firms ability to produce a large volume of sales for a given amount of net

assets is the most important aspects of its operating performance. Here this ratio ishigh in year 2005-2006 i.e. 2.17 and in year 2006-2007 i.e. 2.41 respectively.

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TT O T A LO T A L A S S E T SA S S E T S T U R NT U R N O V E R O V E R R A T I OR A T I O

Total assets turn over ratio is computed on the total assets turn over in

addition to or instead of assets turn over. This ratio shows the firms ability in

generation sales from all financial resources committed total assets.

S A L E S TT O T A LO T A L A S S E T SA S S E T S T U R NT U R N O V E R O V E R R A T I O NR A T I O N ==

T O T A L A S S E T S

TT O T A LO T A L A S S E T SA S S E T S = C U R R E N T A S S E T S + F I X E D A S S E T S

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

1 7 3 2 5 . 3 5 1 3 3 3 6 . 0 7

= =

1 0 7 6 8 . 9 1 9 2 2 3 . 7 3

= 1 . 6 1 = 1 . 4 5

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 1 . 4 5

2 0 0 6 - 2 0 0 7 1 . 6 1

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The ratio indicated the relationship between sales & total assets. This ratio

that how much sales in generated by company with given of level of total assets.

This ratio for year of 2005-2006 and 2006-2007 are 1.45 and 1.61 respectively.

FF I X E DI X E D A S S E T SA S S E T S T U R NT U R N O V E R O V E R R A T I OR A T I O

T he f ix ed a ss e t s t u r n o ve r i s e s t ab l i sh ed r e l a t io ns hi p

b e t w e e n c o m p a n y s f i x e d a s s e t s w i t h i t s s a l e s .

S A L E S=

F I X E D A S S E T S

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

1 7 3 2 5 . 3 5

1 3 3 3 6 . 0 7= =

5 2 0 2 . 5 2 4 3 2 4 . 9 2

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= 3 . 3 3 = 3 . 0 8

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 3 . 0 8

2 0 0 6 - 2 0 0 7 3 . 3 3

The fixed assets turn over shows the sales of accompany for a given level of

fixed assets means. How much sales generated by a company has a good

performance. The ratio for year 2005-2006 and 2006-2007 are 3.08 and 3.33

respectively.

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DD E B T O R SE B T O R S T U R NT U R N O V E R O V E R R A T I OR A T I O

S a l e s

FF I X E DI X E D A S S E T SA S S E T S T U R NT U R N O V E R O V E R R A T I OR A T I O =A v e r a g e d e b t o r s

O p e n i n g s t o c k + C l o s i n g s t o c k

AA V E R A G EV E R A G E D E B T O R SD E B T O R S =

2

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

1 7 3 2 5 . 3 5 1 3 3 3 6 . 0 7

= =

2 3 7 6 . 3 2 1 4 6 6 . 7 9

= 7 . 2 9 = 9 . 0 9

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 9 . 0 9

2 0 0 6 - 2 0 0 7 7 . 2 9

Debtors turn over indicator the number of times debtors turn over each year.

Debtors turn over is more than more efficient is the management of credit by

company. In year 2005-2006, the ratio is more i.e. 19.09 times so the efficiency of

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management is more in credit management by this company generally this ratio is

high in all other year.

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CC U R R E N TU R R E N T A S S E T SA S S E T S T U R NT U R N O V E R O V E R R A T I OR A T I O

T h e c u r r e n t a s s e t s t u r n o v e r m e a n s t h e r e l a t i o n s h i p f i r m s

c u r r e n t a s s e t s w i t h t h e s a l e s

S a l e s

CC U R R E N TU R R E N T A S S E T SA S S E T S T U R NT U R N O V E R O V E R R A T I OR A T I O ==

C u r r e n t a s s e t s

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

1 7 3 2 5 . 3 5 1 3 3 3 6 . 0 7= =

5 5 6 6 . 3 9 4 8 9 8 . 8 1

= 3 . 1 1 = 2 . 7 2

Here by looking the graph of current assets turn over ratio by finding that

there is a working or having some sort of increasing decreasing tired in the graph

which may clear that the current assets of firm are when increase than sales deviate

or when sales increase that current assets decreases.

4

2

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 2 . 7 2

2 0 0 6 - 2 0 0 7 3 . 1 1


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The current assets turn over ratio of any firm shows the relationship between

the company sales with its. Current assets. Here by looking the figures of current

assets turn over ratio we find that there is a continuity of ratio, which may the positive impact of companys sales or the maintaining of the companys current

assets as what the company is required.

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PP R O F I T A B I L I T YR O F I T A B I L I T Y R A T I OR A T I O

I n s i m p le l a n gu a g e p r o f i t m e a n s a d i f f er e n t b e t w e e n r e v e n ue s

& e x p e n s e s o v e r a p e r i o d o f t i m e p r o f i t i s a n u l t i m a t e o u t o f

c o m p a n y . N o f u t u r e i f i t i s f a i l s t o m a k e s u f f i c i e n t p r o f i t s .

G E N E R A L L Y T W O T Y P E S O F P R O F I T A B I L I T Y R A T I O .

P R O F I T A B I L I T Y I N R E L A T I O N T O S A L E S .

P R O F I T A B I L I T Y I N R E L A T I O N T O I N V E S T M E N T .

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G R O S S P R O F I T M A R G I N R A T I O

T h e g r o s s p r o f i t m a r g i n r a t i o o f f i r m i s t h e r a t i o o f

c o m p a n y g r o s s p r o f i t d i v i d e d b y s a l e s .

G R O S S P R O F I T= 1 0 0

S A L E S

GG R O S SR O S S P R O F I TP R O F I T = S A L E S C O S T O F G O O D S O L D

CC O S TO S T O FO F G O O DG O O D S O L DS O L D = O P E N I N G S T O C K + P U R C H A S E + P U R C H A S E E X P

C L O S I N G S T O C K

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

9 1 9 2 . 7 6 6 1 7 3 . 5 2= 1 0 0 = 1 0 0

1 7 3 2 5 . 3 5 1 3 3 3 6 . 0 7

= 5 3 = 4 6

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 4 6

2 0 0 6 - 2 0 0 7 5 3

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T h e g r o s s p r o f i t m a r g i n r a t i o r e f l e c t t h e e f f i c i e n c y w i t h

w h i ch m a n ag e m en t p r o du c t e a c h u n i t o f p r o du c t s . I f t h e r a t i o

i s h i g h t h e m a n a g e m e n t i s m o r e e f f i c i e n c y t h e l o w g r o s s p r o f i t

m ar g i n r a t io i nd ic a t es t he l ow er c os t o f g oo ds s o l d d ue t o

i n ab i l i ty o f m a na g em e nt . I n p ur c ha s in g a r a w m a te r ia l a n d

i n e f f i c i e n t o f u t i l i z a t i on .

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N E T P R O F I T M A R G I N R A T I O

T h e n e t p r o f it m a r g in r a t io i s s h o w t h e c o m p a n y s p r o f it

p o s i t i o n w e d e r i v e d t h e f o r m u l a o f n e t p r o f i t m a r g i n r a t i o .

P R O F I T A F T E R T A X= 1 0 0

S A L E S

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

5 9 4 . 5 3 4 0 5 . 9 7= 1 0 0 = 1 0 0

1 7 3 2 5 . 3 5 1 3 3 3 6 . 0 7

= 3 . 4 3 = 3 . 0 4

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 3 . 0 4

2 0 0 6 - 2 0 0 7 3 . 4 3

T hi s r a t io e xp re ss es t he c om pa ni es o ve r a l l a b i l i ty o f

g e n e r a t i o n e a c h r u p e e s o f p r o f i t i s a s a l e s . I t e x p r e s s e s t h e

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c o m p a n y s a b i l i t y o f m a n u f a c t u r i n g, a d m i n i s t r a t i n g a n d s e l l i n g

t h e p r o d u c t . T h e r a t i o f o r 2 0 0 6 - 2 0 07 i s h i g h i n c o m e c o m p a ny

h a s a m o r e p r o f i t i n r e l a t i o n t o s a l e s . T h e r a t i o i s l o w y e a r

2 0 0 5 - 2 0 0 6 i . e . 3 . 0 4 s o t h e c o m p a n y s h a s a m o r e e x p e n s e s i n

y e a r . S o t h e n e t p r o f i t s d e c r e a s e s .

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RRE T U R NE T U R N O NO N E Q U I T YE Q U I T Y

T h e r e t ur n o n e q ui ty m e an s t h e r a t e o f r e tu r n o n e q ui ty

s h a r e b y t h e h o l d e r o f t h e s h a r e .

T h e r e t u r n o n e q u i t y i s c a l c u l a t e d t o s e e t h e p r o f i t a b i l i t y

o f o w n e r s i n v e s t m e n t .

P r o f i t a f t e r t a x= 1 0 0

N E T W O R T H

2 0 0 6 - 2 0 0 7 2 0 0 5 - 2 0 0 6

5 9 4 . 5 3 4 0 5 . 9 7= 1 0 0 = 1 0 0 5 8 2 . 7 1 6 1 1 . 7 0

= 1 0 2 . 0 2 = 6 6 . 3 7

Y E A R RA T I O

2 0 0 5 - 2 0 0 6 6 6 . 3 7

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2 0 0 6 - 2 0 0 7 1 0 2 . 0 2

R e t u r n o n e q u i t y s h o w s t h e e a r n i n g o f e q u i t y

s h a r e h o l d e r s , t h i s s h o w s t h a t h o w m u c h r at e o f r e t u r ns h a r e h o l d e r g e t . R e t u r n o n e q u i t y i s h i g h e r i n a l l t h e y e a r . B u t

s o m e w h a t h i g h y e a r 2 0 0 6 - 2 0 0 7 i . e . 1 0 2 . 0 2

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T h e c o m m o n s i z e s t a t e m e nt i s a o n e t y p e o f c o m pa r a t iv e

a n al ys i s s t at e me n t. H e re h is p ar t ic u la r s t at e me n t d e al s w i th

t h e a l l t h e i t e m o f p r o f i t & l o s s a c c o u n t o f t h e c o m p a n y .

H e r e i n t h i s p a r t i c u l a r s t a t e m e n t t h e s a l e s i s c o n s i d e r e d

a s 1 00 % a nd t ha n a l l t he i te m a re c om pa re d w it h s a l es b y

a s s u r i n g s a l e s i s 1 0 0 t h a n w h a t b e t h e p e r c e n t a g e o f t h e o t h e r

i t e m s .

T h e c o m m on s i ze s t at e me n t o f a n y c o m pa n y i s b a se d o n

t h e p r o f i t a n d l o s s a c c o u n t .

W e c a n h a v e t h e s t r u c t u r e o f c o m m o n s i z e s t a t e m e n t .

S a l e s a n d o t h e r i n c o m e

P B T

P B D T

D e p r e c i a t i o n

P r o v i s i o n f o r t a x

P A T

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G e n e r a l r e s e r v e

P r o p o s e d d i v i d e n d

D i v i d e n d t a x

B a l a n c e s h e e t

P r o f i t & l o s s a c c o u n t

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P A R T I C U L A R 2 0 0 6 - 2 0 0 7

( R s . i n l a k h )

2 0 0 5 - 2 0 0 6

( R s . i n l a k h )

S a l e s a n d o t h e r i n c o m e 1 7 3 2 8 . 4 4 1 3 3 3 7 . 5 4

I n c o m e f r o m p o w e r

g e n e r a t i o n 1 6 1 . 7 7 9 7 . 5 4

P r o f i t b e f o r e d e p r e c i a t io n

A n d t a x 1 3 4 2 . 4 1 9 8 3 . 2 3

L e s s : D e p r e c i a t i o n 3 9 3 . 3 1 3 5 6 . 2 7

P r o f i t b e f o r e t a x 9 3 0 . 1 0 6 2 6 . 9 6

L e s s : P r o v i s i o n f o r T a x 7 0 . 3 2 6 6 . 6 5

D e f e r r e d t a x l i a b i l i t y 2 6 5 . 2 5 1 5 4 . 3 4

P r o f i t a f t e r t a x 5 9 4 . 6 6 4 0 5 . 9 7

A d d : B a l a n c e b r o u g h t

F o r w a r d f r o m p r e v i o u s

Y e a r 3 7 5 . 1 7 2 0 5 . 7 3

A M O U N T A V A I L A B L E F O R

A P P R O P R I A T I O N 5 8 2 . 7 1 6 1 1 . 7 0

A p p r o p r i a t i o n :

G e n e r a l r e s e r v e 2 4 1 . 0 8 3 0 0 . 0 0

P r o p o s e d d i v i d e n d 1 1 2 . 6 0 9 0 . 0 0D i v i d e n d t a x 1 4 . 4 2 1 1 . 5 3

B a l a n c e c a r r i e d t o

B a l a n c e s h e e t 2 1 4 . 6 0 2 1 0 . 1 7

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T O T A L 5 8 2 . 7 1 5 6 1 1 . 7 0

T h e m e th o d o f t r ac i ng p e ri o di c c h an g e i n t h e f i na nc i al

p e r f o r m a n c e o f a c o m p a n y i s t o p r e p a r e c o m p a r a t i v e s t a t e m e n t

p re pa re i n t er m o f c om mo n b as e p er ce nt ag es a re c al le d

c o m m o n s i z e s t a t e m e n t t h i s k i n d o f a n a l y s i s i s c a l l e d v e r t i c a l

a n al ys i s a n d i t i n di c at e s t at i c s r e la t io ns h ip s i nc e r e la t iv e

c h a n g e a r e s t u d i e s i n a t a s p e c i f i c d a t a .

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T h e d o P o n t c o m pa n y o f t h e U . S . p i o ne e r ed a s y s te m o f

f i n a n c i a l a n a l y s i s w h i c h h a s r e l i e d w i d e s p r e a d r e o r g a n i z a t i o n

a nd a cc e pt an ce s . A u s ef ul s ys te m o f w h ic h c o n si de r in g

i m p o rt a n t r e l a t i o ns h i p b a s e o n i n f or m a t io n f o u nd i n f i n an c i al

s t a t e m e n t . I t h a s b e e n a d o p t e d m a n y f i r m s i n s o m e f i r m s o r

o t h e r .

T h e e a r n i ng p o w er o r t h e 1 2 0 1 r a t i o i s a c e n tr a l m e a s u r e

o f t h e o ve r a l l p r of i ta b i l i t y a n d o p er a t i o na l e f f i c ie n cy o f a

f i r m . I t s s h o w s i n t e r n a t i o n a l o f t h e p r o f i t a b i l i t y a n d a c t i v i t y

o f r a t io . I t i mp li es t ha t t he p er fo r ma nc e o f a f i r m c an b e

i m p r o v e d e i t h e r b y g e n e r a t i o n m o r e s a l e s v o l u m e p e r r u p e e o f

i n ve s tm e nt o r b y i n cr e as i ng t h e p r of i t m a rg in p e r r u pe e o f

i n v es t m e nt o r b y i n c r ea s i ng i n t h e p r o f i t m a r gi n p e r r u p ee o f

s a l e s .

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1 . GG R O S SR O S S P R O F I TP R O F I T ==

== S A L E SS A L E S C O S TC O S T O FO F G O O DG O O D S O L DS O L D

= 9 1 9 2 . 7 6

2 . NN E TE T P R O F I TP R O F I T = 9 3 0 . 1 0

3 .3 . NN E TE T P R O F I TP R O F I T A SA S AA P E R C E N T A G EP E R C E N T A G E O FO F S A L E SS A L E S ==

NN E TE T P R O F I TP R O F I T

==

SS A L E SA L E S

9 3 0 . 1 0

=

1 7 3 2 5 . 3 5

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= 0 . 0 5

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4 .4 . TT O T A LO T A L A S S E T SA S S E T S ==

= F . A + C . A + I= F . A + C . A + I N V E S T M E N TN V E S T M E N T

= 5 2 0 2 . 5 2 + 5 5 6 6 . 3 9 + 0 . 2 7

= 1 0 7 6 9 . 1 8

5 .5 . II N V E S T M E N TN V E S T M E N T T U R NT U R N O V E R O V E R ==

SS A L E SA L E S

==TT O T A LO T A L A S S E T SA S S E T S

1 7 3 2 5 . 3 5

=1 0 7 6 9 . 1 8

= 1 . 6 1

6 .6 . RRA T EA T E O FO F R E T U R NR E T U R N O NO N I N V E S T M E N TI N V E S T M E N T ==

= 0 . 0 5 1 . 6 1

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= 0 . 0 8 0 5

N e t p r o f i t a s a % s a l e s I n v t . T u r n o v e r

1 . 6 0

N . P S a l e s S a l e s T . A

9 3 0 . 1 0 1 7 3 2 5 . 3 5 1 7 3 2 5 . 3 5 1 0 7 6 9 . 1

G . P F . A C . A I n v t .

9 1 9 2 . 7 6 5 2 0 2 . 5 2 5 5 6 6 . 3 9 0 . 2 7

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A t l a s t , I c o n c l u d e m y r e p o r t t h a t VA D I L A L H O U S E L T D I s a

g o o d c o m p a n y i n c a s e o f f i n a n c i a l . T h e r e a r e s o m e p r o b l e m s

t a k in g b y i t b u t o v e ra l l t h e p o s it i o n o f VA D I L A L H O U S E L T D I s

g o o d . I n d u s t r y

D u r i n g m y p r o j e c t t r a i n i n g I s a w t h a t t h e e n t i r e o f f i c e

s t a f f a r e w e l l - o r g a n i z e d r e s p o n s i b i l i t y . T h u s o f f i c e

m a n a g e m e n t o f t h e c o m p a n y h a s i m p r o v e d . A l s o I f o u n d d u r i n g

t h e t r a i n i n g t h a t VA D I L A L H O U S E L T D I s w e lc o mi n g t o a l l t h e

c o m e r s i n VA D I L A L H O U S E L T D

S o , I w i s h t h a t t h e c o m p a n y wi l l h a v e d e l i g h t a n d b r i g ht

f u t u r e f o r c o m i n g y e a r a n d w i s h a l l t h e b e s t f o r s o l v i n g e v e r y

p r o b l e m p e r f o r m i n g t o t h e c o m p a n y .

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T h e m o s t i m p o r t a n t w h i c h I h a v e l e a r n i n u n i t t r a i n i n g i s

I n d u s t r i a l d i s c i p l i n e . I c a r d i n a l l y t h a n k s t o a l l t h e o f f i c e r s

a n d m e m b e r o f t h e u n i t w h o a s s i g n t h e i r p r e c i o u s t i m e t o m e

f o r p r o v i d i n g t h e t r a i n i n g i n a s p e c t .

Retio Analisys of Vadilal (Jigar)

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