A PROJECT REPORT ON

RATIO ANALYSIS
AT

SUPER SPINNING MILLS LTD

MASTER OF BUSINESS ADMINISTRATION By K.BHAGYALAKSHMI [11HJ1E0001]

Department of Business Management ABR College of Engineering And technology {Affiliated to JNTU} Kandukur Road, Kanigiri (Mandal), Prakasam. 2011-2013

CERTIFICATE This is to certify that the project work entitled A STUDY ON RATIO ANALYSIS OF SUPER SPINING MILLS LTD submitted in the partial fulfillment of the requirement of MASTER OF BUSINESS ADMINISTRATION of work carried out K.BHAGYALAKSHMI under my guidance and supervision

Project Guide

DECLARATION
I here by declare that the project report entitled RATIO ANALYSIS AT

SUPER SPINNING MILLS LTD B-Unit, Hindupur presented here

K.BHAGYALAKSHMI Place: Date:

ACKNOWLEDEGEMENT
May sincere thanks to Ms.S.K.VALIBEEI (Associate professor). for providing me with all the required information and for their valuable suggestions, guidance and monitoring in performing and drafting of the entire project report. My sincere and heart full thank to MR.A.BASI REDDY (Director), and, SK.VALIBEEI Head of the department,

K.BHAGYALAKSHMI [11HJ1E0001]

CONTENTS S no contents page no

CHAPTER - 1 Objectives of the study Scope of the study Research and methodology Limitations of the study

1-4

CHAPTER 2 Industry profile Company profile

5-25

CHAPTER 3 Theoretical framework

26-34

CHAPTER - 4 Data analysis and interpretation

35-57

CHAPTER 5 Suggestions and conclusions Bibliography

58-62

CHAPTER-1 INTRODUCTION

NEED OF THE STUDY a) Ratio Analysis facilities understanding of financial statements. It narrates the old story of exchanges in financial condition of the business. b) It facilities inter firm and intra firm comparison and highlights relative performance of the organization in different areas.
c) Ratio is an instrument to measure efficiently of an enterprise and facilitates

management control. d) Ratio Analysis is an effective tool and useful to assess the important characteristics of the business line, liquidity, solvency and profitability etc. Thus, Ratio Analysis is very important to know the efficiency and performance of the organization.

Ratio analysis is useful to various interest groups such as management, vendors shareholders and Government as it reveals the financial position of the company. It deals with the items of Balance Sheet and profit and loss account to formulate ratios. These ratios present the relative performance of those items in financial statements. However, the present study is to understand the financial performance from the managements point of view.

OBJECTIVES OF THE STUDY The objectives of the study is to analyze the financial and operational of strength super spinning limited . Using evaluation techniques, to analyze financial performance of the company. To understand the long term and short term solvency of the company. To analyze the performance in term of its liquidity position efficiently in utilization during the period under the study. To give a value suggestion on the basis of the study. SCOPE OF THE STUDY The scope and period of study is restricted to the following. The scope is limited to the operations of super spinning limited. The information obtained from the primary and secondary sources was limited to super spinning limited The key performance indicators were taken from 2003-2009. The profit and loss account, balance sheet was of last six years. Comparison analysis was done in comparison of its sister units.

DATA COLLECTION METHODS The information required for successful completion of the project has been collected through Primary Data Secondary Data PRIMARY DATA COLLECTION: The information is collected directly without any reference is primary data. In the study it is mainly through conversation with concerned officers or staff members either individually or collectively. The data includes: Conducting personal interviews with the officers of the company Individual observations and interferences From the people who are directly involved with the business transactions of the firm. SECONDARY DATA COLLECTION: Secondary data of information are collected through companys annual reports and other the balance sheets and other financial statements, and through websites of the company.

LIMITATIONS OF THE STUDY The over all profitability of the company is more than satisfactory

There has been a marginal fall in profitability since

last two years

CHAPTER-2 INDUSTRY PROFILE

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INDUSTRY PROFILE THE INDIAN TEXTILE INDUSTRY The Indian Textile Industry is one of the largest segments of Indian Economy Accounting for over one fifth of the industrial production. The winds of change have transformed a traditional art to a modern industry , employing state of the art technology and providing employment to around 15 million people. This combination of traditional art and contemporary design has produced a variety of yarn, fabric, home textiles and other textile products sought after the world over. With over 9 million hectares under cotton cultivation and an annual crop of around 3000 million Kgs., Indian is amongst the worlds largest reservoirs of this popular fiber. In addition the 80 odd cotton varieties of different descriptions being grown in India, enables the industrys produce cover almost every conceivable count and construction of fabrics in a width of choice. The process of economic liberalization in the last decade has seen the industry become globally competitive - not only in terms of price, but also quality. Modernization, has not been restricted to the installation of sophisticated processing machinery , wide width looms, autoconers, electronic cleaners, slicers etc. but also to the adaptation of quality systems confirming to ISO 9000 standards. The recent euphoria created in the European markets on Eco-friendly textiles has sent the Indian industry in to a flurry of activity to adapt itself to market requirement today, with over 1300 spinning units, over 275 composite mills and around 1.49 million registered looms, the Indian cotton textiles industry is a force reckon with .
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The role Of Textiles Manufacturing In India: A Cotton textile in India is a well-established manufacturing industry and employs more workers than any other sector. Production in Fey 1992 was 19 billion square meters of cloth. In Indian textile mills, yarn in spun, woven in to fabrics , and processed under one roof. Production as a share of the manufacturing industry fell from 79 percent in 1951 to under 30 percent in the early 1990s as a result of curbs on capacity expansion and new equipment and differential excise duties. The power-loom sector forms the largest portion of the decentralized part of the textile industry. It expanded from 24,000 units in 1951 to 800,000 units garment export industry. There in 1989. Power-loom fabric dominates Indias is also a substantial handloom sector, which

provides employment in rural areas. Policy on the Textiles Sub-Sector During the early 1960s, the textiles industry was part of the governments strategy of protecting domestic industry so that local products could replace imports. Emphasis was placed on self sufficiency. Exports were considered a marginal outlet for surpluses. Over the years, domestic demand has stagnated as a result of the uneven distribution of income ( Anson and Simpson, 1988) because incomes for most consumers did not rise significantly. The concentration of production for the domestic market has severely constrained the sub-sectors growth. Export growth has been disappointed and unable to compensate for the stagnation in domestic demand for textiles.

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In India, the textile (non-clothing) industry has three sectors: the organized mill sector (traditional weaving and spinning), the power loom sector( modern mechanized looms) and the craft sector. In its development policies, the state discriminated against the mill sector in favor of the power loom sector, which was perceived as an engine of growth. This was done through preferential import and export quotas for the power loom sector (Anubhai and Motai, 1944). As a result, the power loom sector has flourished at the expenses of the other two. Between 1977 and 1986, the power loom sector more than doubled its capacity, reaching 800,000 looms, while the mill and handloom sectors lagged behind (Anubhai and Motai, 1994). Government controls on scrapping obsolete equipment and restrictions on imported machines, resulted in further under-used existing capacity, poor productivity and loss in profitability. Strong resistance from workers fearing job losses, prevented any technological changes and internal restructuring in these two state-owned textile sectors. This led to a of competitiveness, rising operational costs, a weak and sickly industrial structure. In 1985, the government finally attempted to revitalize the textile industry and make it gradually concentrated more on exports. The New Textile policy aimed at technological advancement and modernization. Reforms carried out by the government reduced discrimination against the mill sector by equalizing duty rates (so that all sectors pay the same level of taxes) and allowing the mills greater autonomy in investment related decisions.

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COMPANY PROFILE

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SUPER SPINNING MILLS PRIVATE LIMITED B UNIT Brief history of SS mills The story of super spinning mills is one of the continuing sagas of success a story of formation, promoting and establishment. The company was promoted and established in the year 1964 by well known industrialist and philanthropist, Sri. L.G. Balakrishnan at Kirikera in the backward area of Anantapur district. The company chairs man is Sri. L.G. Ramamurthy and managing director is Sri R. Sumanth. The successful functioning of their unit gave rise to other units namely

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Super-B at Kotunur in year 1983 and Super C an export oriented unit at

D-

Gudalur in Tamilnadu in Year 1992, the total capacity of the group on date is 12,000 spindles and an assets Rs. 640 million per annum and the total labour force around 2300. Sri L.G. Balakrishnan and Brothers Ltd., ELgi equipments Ltd, Elgi trade India Ltd., Elgi Rolling Mills Ltd., Elrgi & Co Pvt, Ltd., Rayalaseema Technologies Ltd., etc., The project implementation of these units have generated direct employment to nearly 3000 families besides indirect employment to another thousand. This had fulfilled the objective of the government to certain extent in promoting the company in this area. The company. Super-A, commenced its commercial productions in April 1964 with 12000 spindles by 2000. the paid up capital of the company is Rs 300 Lakh the company had record steady the growth in its productivity as well as quality and its profitability over the years since its inception. The company has been following a steady dividend policy and never skipped the dividend since 1965. According to the survey conducted by the South India textile research association (SITRA) the company is one among the best 10 mills of couth in respect to quality and productivity. The company is using cotton as raw material and producing. The company is using as raw material and producing yarn in different counts Viz 60s,80,90 etc the companys finished products are being sold in the areas of Tirupur Kolkata, Varanasi, New Delhi Lehalharangi, Mangalagiri etc. through brokers and also the company is exporting 37% of its products to various countries Viz Bangaladesh, Japan, Singapore, Italy Etc. the companies products are used in manufacturing sarees, Dhoties, Banians, T-Shirts etc and it

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is proud to say that the company is fulfilling one of the basic needs of human being that is clothing. The companys total turnover is around 760 Millions. The company is providing latest machinery. Equipment, testing equipment and also keeping the plant and the machinery updated from the to time. In order to provide sound upkeeping conditions, the company has provided humidification to the entire plant. Also the company has introduced the waste evaluation system I the carding and preparatory department. The company has sound industrial relations. The company has recently concluded a settlement with its workers on wages and work assignments linked to productively for 5 years. Also the company has arrived at a settlement on bonus and Effie bonus for 5 years linked to productively. The company is paying very high bonus that is 36.35% and 28%. Also the company has organized several community development and welfare program viz.
Family planning camp was organized and 300 operations were done as an

incentive the company has given one polyester saree and blues worth Rs.200 To all the operated people. Organized one week eye operation camp at LRG Vidyalayam, Kirikera. Donated submersible water pumps to the people of housing board colony, sadlapalli village. Constructed drinking water tank at Nakkalapalli.

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In achieving the tremendous financial soundness, the company never neglects its responsibility of well being of its employees and the community welfare. The company is paying highest wages and bonus in all textile mill in Andhra Pradesh. The company is providing number of welfare amenities for the development of its workers such as: 1. Interest-free own your house scheme. 2. Quarters for 20% of its employees. 3. Educational benefits for children. 4. Self-employed schemes etc. Since this area is highly backward, the company has extended its help by way of donations to the development of educational land, medical facilities in this area a few are. Donations for construction of Z.P.High school at Basavanahalli. Construction of science block in the same school. Constructed primary school at Mittameedapalli. Running English medium school for the benefits of rural children. Construction of auditorium in A.P. Residential school, sevamandir. Constructed a block in governmental hospital, Hindupur. Donated for construction of a free dispensary by the all India medical association. Quality policy of the company Quality leading to customer satisfaction shall be top priority. This shall be achieved by complying to the requirements of the quality management system and continually improve its effectiveness. Employees
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shall be trained and motivated to enhance the quality of their work, competence and skills. Administrative set up The company has total number of employees of 950 out of which 64 are Staff and rests of the people are workmen. The firm is headed by General Manager. Super-B an over view Chief promoter Chairman : Sri L.G. Balakrishnan : Sri L.G. Ramamurthy

Managing Director & Vice Chairman : Sri R. Sumanth Date of establishment of the Mill Capacity of spindles Raw material Major counts : 1-4-1964 : 59712 (appox) : cotton and viscose : Hosiery 50s, 60s, 80s, 2/60s Warp -60s,80s,90s,2/56s,2/80s. Area of the mill Financial products produced Sales local : 13 Acres : Banians,T-shirts,sarees etc., : Tirpur, Kolkata, Mumbai, Varanasi, Ichakarangi, Tenali, Mangalagiri, Chirala. Exports : England, Singapore, Malaysia, Italy, Switzerland, Japan and
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Bangladesh. No. of employees No. of staff Awards According to the survey conducted by the South India Textile Research association the company is one among the best 10 mills of South India in respect of quality land productivity in 1996 out of 270 mills the companys three units productivity performance is ranked as follows. A Unit -21st Rank B Units 10th Rank C Unit 6th Rank The company has also won so many awards at a national level for its quality and productivity. Objectives of the Company 1. Their efforts are committed towards fulfilling their quality, requirements of customer exceptions and needs 2. Enhancing the awareness of employees towards quality thought systematic training, development and motivation. 3. The policy is understood implementation and maintained through display boards training classes, videocassettes and policy Export Performance The company has identified new markets during the year and thrust has been given more on direct experts. The total exports during
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: 886 (Blue colour) : 64 (white colour )

the year were Rs. 7625 lakhs registered and increasing of 38% over the last year Rs 5540 lakhs. The company is striving to improve the exports for achieving better results in the coming year. Direct exports consisted of Rs. 5443 lakhs as against Rs. 4045 lakhs registering a growth of 35% the foreign exchange outflow utilized during the year mainly for modification was Rs. 943 lakhs and the net foreign exchange earnings by the company is Rs.4500 lakhs. Conservation of energy The power situation in Andhra Pradesh has been critical. Frequent, power interruption on daily basis and increased power tariff rates affected the machine utilization. Due to this energy saving measures were implemented in different areas excessively by conducting result-oriented energy consultants suggestions offered by the team viz., provisions of plant one touch fitting in all the pneumatic lines of machines modification of plant house designs, provision of PLC based panels, etc were already implemented and other suggestions are at different stages of progress which is expected to save the energy consumption considerably. In addition two second hand wind mill have also been acquired during the year, which is expected lower the further. Thrust is being to explore further possibility in these vital areas of energy consumption. Research & Development Efforts are being made continuously for improvement up-gradation of the manufacturing process for improving quality and productivity, conservation of energy, centralized waste collection system
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by the R & D department. Significant measures taken viz., modification of ring frames lift and ring dial combination which is expected to yield 10% higher production, provision of XBZ attachments in carding to improve the realization about 0.5to 19% traits with bottom roller cleaners in ring frames and speed to improve the quality etc. efforts are continuing to enlarge the scope of R & D facility to as many areas as possible revenue expenditure incurred on. Research & Development amounted to Rs. 127019. Technology absorption, adaptation and innovation: The thrust areas have been in improving the quality of the products and increasing productivity through cost effective programmes and value engineering technique. The company commenced the re-engineering process in the organization to fundamentally rethink and redesign manufacturing process to achieve dramatic improvement is critical areas of performance such as quality, cost service and speed. This will enable the company to compete more efficiently in the competitive global environment. During the year, state of art machinery namely either unfrock A-11 and unchain B-11 RSSB D30 draw frames, contamination cleaners etc., were included in our manufacturing process to produce yarns meeting user 5 to 25% standards. In addition, high-tech gassing machine, micro 2000 yarn cleaners were also added on our post spinning process to offer value added yarns meant for export purpose.

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Shift timings: General shift : 8-00 A.M. To 5-00 P.M. I shift: 8-00 A.M. To 4-30 P.M. II shift: 4-30 P.M. To 1-30 A.M.

III shift: 1-30 A.M. To 8-00 A.M With a break of one hour for lunch in each shift.

Communication: All the staff shall be attentive in the process of communication. The communication must be passed to all the concerned as quickly as possible there should not be any hesitation in giving information at any level subject to the Internal communication: E-mail, Telephone facility is available. Every table has been provided with an intercom. The operator will connect all the incoming calls to the respective table directly. There are also be used for communicating one table to another. These facilities can be used for personal needs after obtaining superiors permission on chargeable basis. Office equipment Photocopy can be used with the permission of administrative office. Computers are provided to make the work easier. Every paper has its right place, employees are advised to complete filling Immediately.

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Stationery is provided for each and every table whatever they need for their work. Employees are advised to use A4 size paper as standard practice. It is advised to avoid damage/wastage by improper handling. Visitors: It is advised to be courteous to visitors. But dispose them soon after meeting is over. Meeting them at reception lounge is recommended. It is advised to meet the visitors only after they have taken the appointment. Security: Mill security is on contract basis. Round the clock security arrangements are provided for the mill and the quarters. Uniform and identity cards: All the staff wears uniforms as prescribed. The company supplies cloth Material for 2 sets of uniform once in 2 years. The company also pays the stitching charge as may be decided by the management. Uniform should be maintained neat and clean.
Female staff should attend their work wearing sarees and blouse provide by

the company. Identity cards are given to each staff. In case of replacement the cost should be borne by the individual concerned all the staff always keep secret, confidential, and prevent the disclosures of divulgence of all information, knowledge, know-how experience, date documents, plans, report statements, logs records, correspondence discussions, contracts, drawings, photo prints, copies, methods, process, layout of machinery finance, qualities etc., of the company that many pass through or come to the employees knowledge.
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Mill Etiquette: The entire mill premises are deemed as No Smoking Zone Avoid entering the cabins when a visitor is present or a meeting is in progress unless it is absolutely necessary. Avoid standing on the arises and discuss with colleagues or visitors. Ensure that discussions or talking on telephone do not cause disturbance to others. Turn off lights computers, etc, whenever they leave work place. Develop the practice of keeping a daily work plan sheet. Monitor your progress as per work plan an manage time well. Finally assume yourself as the customer for your work, the review your work so that you are able to give better satisfaction to your customer. Departments in Super-B The following are various departments of super-B Personal department. Finance department Production department. Purchase department. Personal department Super Spinning Mills Ltd., A-unit has a separate personal department functioning under the head of Mr. K. Sudhakar. The main job of this department is to recruit, place competent and loyal workers in the enterprise. It also has the job of developing, planning, motivating and maintain the same All employees shall be systematically trained, developed and motivated to continuously improve the quality of their work.
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Function of the personal department The head of the personal department analyze and determine the number of kinds of people required to run the organization. It is assed only by this department and it is the most important function. The personal department functions are at the prior level because only this department analyze the person and appraise their work. Their performance is reviewed periodically, their skills, knowledge, attitude and capacity are analyzed in detailed manner by making frequent enquires regarding them. This can be used for confirming the service of an employee and confirmation of employment. Determining all these actives they can be awarded with increments or higher salary if production etc. Recruitment: The policy of this company is RIGHT MEN FOR RIGHT JOB . The recruitment is made under the following factors: ---a. b. c. d. Job description Type of person qualification, experience and other skills Go in for advertisement To collect information regarding candidates by advertisement. Screening the application. Short listing the candidates. Interview date and time. The candidates are give prior intimation regarding time and date of interview. The methods used for interviewing are as follows.
1.

Recruitment process:

Written test, Personal interview, Aptitude test, Psychological

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Test. 2. Job test for technical job. 3. Confirmation orally or by writing. 4. Appointment order. Joining: After joining the employees must be given induction and orientation programme.

Induction: Making an employee to know about the company, introducing the member of the organization, informing the candidates of employment (Working time), how to conduct himself, leave facilities, welfare etc., Training: The company provides 6 months training to employees to acquire desired level of skills to further expand their knowledge to shoulder more responsibility. Time keeping: Time keeping means controlling and maintaining for entry and exit of the members of the company. This is by maintenance of attendance, especially for staff and workmen by taken system or card system. In case of late coming or early going, one has to get gate pass or permission slip. Promotion: Generally promotion means an advancement to a better job which involves greater responsibilities and more knowledge and skills,

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which carries greater prestige and finally higher salary. In Super Spinning Mills ltd., they follow a good policy which carries seniority and competence as basis of promotion. Welfare of staff: The welfare activity of an organization is carried out to take care of employees and also his family. The super spinning mills has provided all welfare tit to staff within the premises, which gives the basic necessity of food rice is charged at a very reduced rate on no profit no loss basis. Periodic medical checkup is to be undertaken by every employee of fee of cost.

Recreational Facilities: Recreation helps to reduce tension of work and to relax for sometime. Tea is provided twice a day to every employee at the table. This avoids idle time and makes them fresh at work. Club also provided to the employees. Safety Measures: To promote safe working conditions in the work area, safe work methods are conveyed to the employees during training programme and during work. Safety device are provided to suit working environment to protect the health of employees. Benefit schemes: Statutory benefits are provided as per the acts like provident fund, gratuity fund, E.S.I., maternity benefit etc., apart from statutory benefits the employees are provided with facilities like super annuation, group personnal, accident policy, medical expenses, reimbursement etc., Fair price shop:
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Fair price shop is provided to the staff within the premises which gives the necessity commodities, prices are charged at reasonable rates on no-profit and no-loss basis. TYPICAL ERRORS TO BE CONTROLLED IN A PROCESS Errors & Data Relating to People Tools Methods Procedures Mechanisms Attitude & Behavior Courtesy Reliability Trust worthiness Efficiency Performance Delivery & Cost Missed dead lines Over budget costs Untimed delivery

PROCESS

ERROR

MINIMISATION

TO

IMPROVE

CUSTOMER

SATISFACTION Product and service Materials Packages Parts Information

Management Error Planning Organizing Controlling Directing Allocating Resources

Errors from other sources Supplies Vendors Controls External Environment

Techniques for problem solving: Brain storming Cause & effect diagram Flow chart _to identify problem and or solution _to identify all root problems _to explain process sequence directly
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Parcto diagram Histogram Graphs Pie chart Scatter diagram

_to priorities the problem or causes When satisfied data is available _to graphically represent and studyjyju Process when data available _to show the friend in performance _to pictorically show the contribution Of individual items to the total _to indicate the extent of inter Dependency of no. of Interdependency factors

Control charts

_to study the process tends by on-line Plotting and take quick corrective Steps when find necessary.

Finishing process objectives: Zero customer complaints Adherence proportionate dispatches Maintain target quality levels Maintain good house-keeping

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CHAPTER-3

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Theoretical background of the study Financial analysis is helpful in assessing the financial position and profitability of a company. It is the process of identifying the financial strengths of the balance sheet and profit and loss account. It can be under taken by the management of the firm. Or by parties outside the firm, viz., owners creditor, investors and others. Introduction to the ratio analysis: Nature of ratios: Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two mathematical expressions and as the relationship between two or more things. In financial analysis, a ratio is used as an index or yardstick for evaluating the financial position and performance of affirm. The relationship between two accounting figure, expressed mathematically, is known as a financial a ratio. Ratios help to summarize the large quantities of financial data and to make qualitative judgement about the firms financial position. The greater ratio, the greater firms liquidity and vice versa. The point to note is that a ratio indicates a quantitative relationship, which can be in turn, used to make a qualitative judgement. Such is in the nature of all financial ratios. Ratio analysis gives the efficiency and effectiveness of the companys performance on many parameters. Ratio analysis is done to develop meaning full relationship between individual items and group of items usually shown in the periodical financial statements published by the concern. An accounting ratio shows the relationship between the two interrelated accounting figures as gross profit to sales etc.,
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REQUISITE FOR RATIO ANANLYSIS: more confidence in those firms that shows steady growth in earnings as such, they concentrate on the analysis of the firms present and future profitability. They are also interested in the firms financial position to the extent it influences the firms earnings ability. Owners are investors desire primarily a basis for estimating capacity.

1. Creditors: Creditors are concerned primarily with liquidity and ability to pay interest on redeem loan with in a specific period. 2. Long term creditors: The requisite of ratio analysis to come in to being caused by the following facts. 1. Business facts displayed in balance sheet and profit and loss account do not convey any pompous individually. Their significance likes in the fact that they are interrelated. From this time onward, there is need for fixing relationship between various related items. 2. Ratio analysis a tool for the interpretation of financial statements is also important because ratios helps the analysis to have a profound cautiously in to the data given statements figure in their peremptory forms shown in financial statements are neither significant nor to enable to be compared. Users of ratio analysis: The nature of ratio analysis will differ depending on the purpose of analyst. Ratio analysis the starting point for making plans before using any sophisticated forecasting and budgeting procedures. The ratio analysis is useful for the following persons; 3. share holders and investors: Investors and shareholders, who have invested their money in the firms,. Shares are most concerned about the firms earnings. They restore The long-term creditors are interested in firms long-term solvency and survival. They analyses about the firms future solvency and profitability overtime, its ability to generate cash, to be able to pay
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interest and repay principal and relationship between various sources of funds. 4. Employees: The employees are also interested in the financial position of the concern especially profitability. There wages increase the amount of fringe benefits are related to the volume of profits earned by the concern. The employees make use of information available in financial statements.
5. Government :

Government is also interested to know the strength and weakness of the firm. Government makes the future plans, policies on the basis of financial information available from various units of the company. 6. Management: Finally, management of the firms or executives would be interested in every aspect of the fianancial analysis. It is their overall responsibility to see at the resources of the are used, most effectively and efficiently, and that the firms financial condition is should. Through the financial analysis they try to seek answers to the following questions. 1. Is the firm in a position to meet its current obligations? 2. What sources of long term finance are employed by the firm and what is the relationship between them? Is there any danger due to the employment of excessive debt? 3. How efficiently does the firm use its assets? 4. Are the earnings of the firm adequate? 5. Do investors consider the firm profitable and safe for the purpose of investing their money in the shares of the firm? Financial analysis may not provide exact answers to these questions, but it does indicate what can be expected in the future.

Standards of comparisons: A single ratio in itself does not indicate favorable or unfavorable condition. It should be compared with some standard. Standards of comparison may consist of :
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1. Ratios calculated from past financial statements of the same firm. 2. Ratios developed using the projected or performed financial statements of the same firm. 3. Ratios of some selected firm, especially the most progressive and successful at the same point in time. 4. Ratios of the industry to which the firm belongs. The easiest way to evaluate the performance of a firms is to compare its present ratios with past ratios. When financial ratios over a period of time are compared it gives an indication of the direction of change and reflects whether the firms financial position and performance has improved, deteriote or remained constant over time. This kind of comparison is valid only when the firms accounting policies and procedures have not changed over time. Some times future ratio are used as the standard comparison. Future ratios can be developed from the projected or performed financial statements. The comparisons strengths and weaknesses in the past and the future. If the future ratios indicate weak financial position, corrective actions should be initiated. Another way of comparison is to compare the ratio of one firm with some related firms in the same industry at the same point of time. In most of the cases, it is more useful to compare the firms ratios of a few carefully selected competitors indicates the relative financial position and performance of the firm. A firm can easily resort to such a comparison, as it is not difficult to get the published financial statements of the similar firms to determine the financial conditions and performance of a performance of a firm its may be compared with average ratios of the industry of which the firm in a member, industry ratios are important standards in view of the fact that each industry, as its characteristics which influences the financial and operating relationships. But there are certain practical difficulties in using the industry ratios. 1. It is difficult to get ratio for the industry. 2. Even if industry ratios are available, they are averages of the ratios of strong and weak firms. Some times the spread may is wide that the average may not be little utility. 3. The averages will meaningless and the comparison futile. If the firm within the same industry widely differ in their accounting policies and practices.
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4. It is possible to extremely strong and extremely weak firms, the industry and eliminate extremely6 strong and extremely weak firms, the industry ratios will prove to be useful in evaluating the fianancial conditions and performance of a firm. Utility of ratio analysis: It is most important tool of financial analysis. Many diverse groups people are illustrated in analyzing the financial information to indicate the operating and financial efficiency and growth of the firm. The people use ratios to determine those financial characterics of the firm in which they are interested with the help of ratio one can determine. 1. The ability of the firm to meet its current obligations. 2. the extent which the firm has used its long-term solvency by borrowing funds. 3. The efficiency to which the firm is utilizing its assets ingenerating its sales revenue and 4. The overall operating efficiency and performance. Types of ratios: Several ratios can be calculated from the accounting data contained in the fianancial statements. These ratios can grouped in to various claases accoarding tyo the Financial activity or function to evaluated. As stated earlier, the parties, which generally undertake financial analysis, or short-term creditors, long term creditors, owners and management. Short-term creditors main interest is in the liquidity position of the short-term solvency of the firm. Long term creditors on other hand, are more interested in the long-term solvency and profitability analysis and the analysis of the firms financial conditions. Management is interested in evaluating every activity of the firm. They have to protect the interests of all parties and see that the firm goes profitability. In view of the requirements of the user of the ratios, we may classify them as follows: Traditional classification:

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1. Balance sheet ratios: balance sheet ratios deal with the relationship between

two balance sheet items must however pertain to same balance sheet ex: current ratios. 2. Profit and loss account ratios: This ratios deal with the relation ship between the two profit and loss account items. Both the items must belong to the same profit and loss account. Ex: current ratios. 3. Composite or mixed ratios: These ratios are exhibit statement items and balance sheet items. Ex. Stock turn over ratios.

Functional classification
1. Liquidity ratios: It is extremely essential for a firm to able to meet its

obligations as they become due liquidity ratios measure the ability of the firm to meet its current obligations. In fact, analysis of liquidity needs the preparation of cash budgets and cash flows statements. But liquidity ratios by estabuilishing and relation ship between cash flow statements. But liquidity ratios by establishing a relation ship between cash and other current assets to currents obligations provide quick measure of liquidity.

Also that is not too much meets its obligations. Due to lack of sufficient liquidity will result in bad credit rating, loss of creditors confidence our even in law suits resulting in the closure of the company. A view high degree of liquidity is also bad. Therefore it is necessary to strike a proper balance between liquidity and lack of liquidity. The most common ratios which indicates the extent of liquidity or lack of it are; current ratio and quick ratio. 2. Leverage ratio: The long term creditors, like debenture holders, financial institutions etc. Are more concerned with the firms long term financial position of the firm. Leverage of capital structure ratios is calculated. The ratios indicate the funds provide by the owners and creditors as a general; there should be and appropriate mix of debt and owners equity in financing the firms assets.
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3. Activity ratios: The funds of creditors and owners are invested in various kinds of assets to generate sales and profits. The better in management of assets. The larger the amount of sales. Activity ratios are employed to evaluate the efficiency with which the firm managers and utilizes its assets. These ratios are also called turn over ratios because they indicate the speed with which assets are being converted or turned power in to sales activity ratios, thus involve a relation ship between sales and the various assets. A p[roper balance between sales assets generally reflects that assets are managed well. 4.Profitability ratios: A company should earn profits to survive and grow over a long period of time. Profits are essential, but it would be wrong to assume that every action initiated by management of company should be aimed at maximizing profits. Irrespective of social consequences. Profits are difference between total revenues and total expenses over period of time. Profits are the ultimate output of the company and it will have no future if it falls to make sufficient profits. The profitability ratios are calculated to measure the operating efficiency of the company. Creditors and owners are also interestred in the profitability of the firm.

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Limitations of ratio analysis: The ratio is a widely used technique to evaluate the financial position and performance of a business. But there are problems in using ratios. The analyst should be aware of these problems. The following are the limitations of the ratio analysis. 1. It is difficult decide on paper for comparison. 2. The comparison is rendered difficult because of differences in situations of two companies or one of the companies over years. 3. The price level changes make the interpretations of ratios invalid. 4. The ratios calculated at a point of time or less informative and defective and they suffer from short term changes. 5. A single ratio usually, does not convey much sense. 6. The differences in the definitions of items in the balance sheet and profit and loss statement make the interpretation of ratios difficult. 7. The ratios are generally calculated from past financial statements and, thus are indicators of future. 8. Ratios are only means of financial analysis and an end in itself. Ratios have to be interpretated and difficult people may interpret the same in different ways.

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CHAPTER-4 DATA ANALYSIS & INTERPRETATION

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LIQUIDITY RATIOS Liquidity refers to the ability of a concern to meet its current debt obligations. The short term expenses or current liabilities are met by realizing amounts from current assets. The current assets should be either liquid or near liquidity. These should be convertible into cash for meeting the current debt obligations. If current assets can pay off current liabilities, then liquidity position is said to be satisfactory. If the liabilities are less, then the current assets cannot be met from them, then the liquidity position is considered bad. The bankers, suppliers of the goods and other short term creditors are interested in the liquidity position of a business concern. They extend the credit only if they are sure that current assets are adequate to pay out the obligations. To measure the liquidity position of a business concern, the following ratios can be calculated. A. Current Ratio. B. Quick Ratio. Current Ratio Current ratio may be defined as the relationship between current assets and current liabilities. In other words, it is the ratio of current assets and current liabilities. The ratio is also known as working capital ratio. It
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is measure of general liquidity and is most widely used to make the analysis of a short term financial position or liquidity of a business enterprise. The two basic components of the ratio are: current assets and current liabilities. The following table gives the details of the items constituting these two elements.

Components of Current Ratio CURRENT ASSETS . Bills receivables . Cash at bank . Cash in hand . Inventories .Sundry debtors .Work in progress .Prepaid expenses Current ratio= Current assets Current liabilities CURRENT LIABILITIES . Income tax payable . Bills prepaid . Out standing expenses . Bank overdraft .Sundry creditors. .Dividend payable

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particulars Current assets (Rs in lakhs) Current liabilities (Rs in lakhs) Current ratio

2006 2007 9863.10 12862.85 2161.25 2974.13 4.56:1 4.32:1

2008 20928.86 6925.63 3.02:1

2009 19468.75 7501.51 2.59:1

2010 24792.71 6989.21 3.54:1

2011 24907.61 8765.61 2.84:1

25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011

Current assets Current liabilities Current ratio

INTERPRETATION The current ratio of 2:1 is considered ideal. In other words, current assets double the current liabilities are considered ideal. High current ratio may not be favorable due to the following reasons:

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 There may be slow moving stocks. The stocks will pileup due to poor sale. The figure of debtors may go up because debt collections not satisfactory. The cash or bank balances may be lying idle because of insufficient investment opportunities. On the other hand, a low current ratio may be due to the following reasons: There may mot be sufficient funds to pay off liabilities. The business may be trading beyond its capacity .The resources may not warrant the activities. If ratio is less than 2, it indicates that the business does not enjoy adequate liquidity. How ever, a

high current ratio of more then 3 indicates that the firm is having idle funds and has not invested them properly. Here, the current ratio decreased from 4.56:1 in the year 2006 to 4.32:1 in the year 2007. And further decreased to 3.02:1 in the year 2008. And later it decreased to 2.59:1 in the year 2009. And increased to 3.54:1 in the year 2010 and later decreased to 2.84:1 in the year 2011 This indicates that the position of the firm is satisfactory. How ever the company should invest its ideal funds properly.

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A Quick ratio/acid test ratio/liquid ratio The term liquidity refers to the ability of a business enterprise to pay its short term liabilities. Quick ratio may be defined as the relationship between quick assets and current liabilities. As assets is said to be liquid, it can be converted in to cash with in a short period. Components of quick ratio: Quick assets . Cash on hand . Cash at bank . Bills receivable . Sundry debtors . marketable securities Quick ratio= Quick assets Current liabilities Quick liabilities . Out standing expenses . Bills payable . Sundry creditors . Dividend payable . Bank over draft

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Particulars Quick assets Current liabilities Quick ratio

2006 5392.08 2161.25 2.49:1

2007 5815.1 0 2974.1 3 1.95:1

2008 7502.20 6925.63 1.08:1

2009 11431.99 7501.51 1.52:1

2010 12923.3 9 6989.21 1.85:1

2011 15858.76 8765.61 1.81:1

Quick assets Current liabilities Quick ratio

2007

2008

2009

2010

2011

All current assets, except stock and prepaid expenses are quick assets. A quick ratio of 1 is considered as ideal, a quick ratio less than 1, indicates inadequate liquidity of the firm. Although quick ratio is rigorous test of liquidity than the current ratio, yet it should be used cautiously and 1:1 rule should not be blindly. A quick ratio of 1:1 does not necessarily mean satisfactory liquidity position if all the debtors cannot be realized and cash is needed immediately to meet the current obligations. In the same manner, a low quick ratio does not necessarily mean a bad liquidity position, as inventories are not absolutely non liquid. Hence a firm having a high quick ratio may not have a satisfactory liquidity position if it has slow paying debtors. O n the other hand, a firm having a low quick ratio may have a good liquidity position, if it has fast inventories. The quick ratio is very useful in measuring the liquidity position of firm. It measures the firms capacity to pay off current obligations immediately and is more rigorous test of liquidity than the current ratio. It is used as a complementary ratio to the current ratio.

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In the Super Spinning Mills, the quick ratio is more than 1 in all the years during the period of project study. Liquidity of the firm is satisfactory. The funds of creditors and owners are invested in various kinds of assets to generate sales and profits. The better the management of assets, the larger the amount of sales. Activity ratios are employed to evaluated the efficiency with which the firm managers and utilizes its assets. These ratios are also called turn over ratios because they indicate the speed with which assets are being converted or turned or turned over into sales. Active ratios, thus involve a relationship between sales and various assets. And presume that there exists an appropriate balance between sales and various assets generally reflect that assets are managed well. Some of the activity ratios are given under: Inventory turnover ratio= Sales Inventory Debtors turnover ratio= Sales Debtors Assets turnover ratio=Sales Net assets Total asset turnover ratio=Sales Total assets Fixed asset turnover ratio=Sales Net fixed assets Inventory turnover ratio: This ratio is indicated the efficiency of the firm in selling its products. It is calculated by dividing the sales by average inventory or the year ended inventory. This ratio measures how quickly inventory is sold, a test of efficient management. Usually a high inventory turn over ratio indicates efficient management of inventory because more frequently the stocks are sold. The lesser amount of money is required to finance the inventory. This implied under investment in or very low level of inventory. Low turn over implies over investment in inventories, dull business.
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Inventory turnover ratio= Sales Inventory

Particulars Sales Inventory Inventory turn over ratio

2006 29556.77 4471.02 6.61:1

2007 28101.73 7047.75 3.98:1

2008 33516.26 13416.66 2.49:1

2009 36752.25 8036.77 4.57:1

2010 36316.52 11869.32 3.05:1

2011 39419.28 9048.85 4.35:1

40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Sales Inventory Inventory turnover ratio

Interpretation Hence, in the case of SS mills, inventory turnover ratio is satisfactory because, here there is an efficient management of inventory because frequently stocks are sold.
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Debtors turn over ratio Debtors turn over ratio is the relationship between the credit sales and debtors of the firm. Debtors turn over ratio= Sales Debtors Particula rs Sales Debtors Debtors turn over ratio 2006 2007 2008 33516.26 1517.28 22.0:1 2009 36752.25 1954.56 18.8:1 2010 36316.52 1887.56 19.2:1 2011 39419.28 2375.64 16.6:1

29556.77 28101.73 1319.24 1114.02 22.4:1 25.2:1

40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Sales Debtors Debtors turn over ratio

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Interpretation Debtors turn over ratio indicates the number of times debtors turn over each year. Generally higher the value of debtors turn over the more efficient is the management of credit. To an out side analyst information about credit sales and opening and closing balances of debtors may not be available. Hence the debtors turn over ratio regarding to the table is satisfactory. Asset turn over ratio Asset turn over ratio is also known as Investment turn over ratio. It is based on the relationship between the cost of goods sold (sales) and the assets of the firm. Asset turn over ratio=Sales Net assets

Particulars Sales Net assets

2006 29556.77 18005.2

2007 28101.73 2040.87 1.37:1

2008 33516.26 25538.71 1.31:1

2009 36752.25 25293.85 1.45:1

2010 36316.52 33415.72 1.08:1

Assets turn 1.64:1 over ratio

2011 39419. 28 33584. 48 1.17:1

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Note: Net assets = net fixed assets + net current assets.

Interpretation As assets are used to generate sales, a firm should manage its assets efficiently to maximize sales. The firm can compute the ratio by dividing sales by net assets. In 2009 the ratio of SS mills is 1.17:1 times indicating that SS mills ltd producing Rs.1.17 of the sales for one rupee of capital employed in net assets. It has to improve its operating performance.

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Total asset turn over ratio Total asset turn over ratio shows the firms ability in generating sales from all the financial committed to total assets. Total asset turn over ratio= Sales Total assets Particulars Sales Total assets Total asset turn over ratio
50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011

2006 29556.77 20166.27 1.46:1

2007 28101.73 23380 1.20:1

2008 33516.26 32416.73 1.03:1

2009 36752.25 32795.36 1.13:1

2010 36316.52 40404.93 0.89:1

2011 39419.28 47353.4 0.83:1

Sales Total assets Total asset turn over ratio

Note: Total assets=Total Net fixed assets + Total current assets. In 2008the ratio of SS mills is 0.89:1, that SS mills generated sales of Rs.0.89 for one rupee investment in fixed and current assets together.

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Fixed asset turn over ratio Fixed asset turn over ratio= Sales Net fixed assets Particulars Sales Net fixed assets Fixed asset turn over ratio 2006 29556.77 10303.17 2.86:1 2007 28101.73 10517.15 2.67:1 2008 33516.26 11449.87 2.91:1 2009 36752.25 13326.61 2.75:1 2010 36316.52 15612.22 2.32:1 2011 39419.28 19549.86 2.02:1

40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Sales Net fixed assets Fixed asset turn over ratio

Interpretation The firm may wish to know its efficiency of utilizing fixed assets, calculating sales by net fixed assets. Depreciated value of fixed assets in computing the fixed asset turn over may render comparison of firms over period of time.

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LEVERAGE RATIOS To judge the long term financial position of the firm, the leverage or capital structure ratios are calculated .These ratios indicate the funds provided by owners and creditors. As a general rule; these should be appropriate mix of debt and owners equity in financing the firms assets. Leverage ratios may be calculated from the balance sheet items to determine the proportion of debt in total financing. And leverage ratios are also computed from the income statements items by determining the extent to which operating profile are sufficient to cover the fixed charges. The leverage ratios are calculated to measure the financial risk and the firms ability of using debt for the benefits of share holders. Leverage ratios are also known as capital structure ratios. Some of the leverage ratios calculated is as follows. Total debt ratio= Total debt Capital employed Debt equity ratio= Total debt Net worth Total debt ratio By using this ratio, we can know the proportion of the interest bearing debt in the capital structure.

Total debt ratio = Total debt Capital employed

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Particulars Total debt Capital Employed Total debt ratio

2006

2007

2008 17124.51 26027.75 0.65:1

2009 16162.19 25937.18 0.62:1

2010 22257.95 33769.28 0.66:1

2011 26055.53 38672.22 0.67:1

10321.81 11712.48 17341.92 19821.2 0.60:1 0.59:1

180000 160000 140000 120000 100000 80000 60000 40000 20000 0

Total debt Capital employed Total debt ratio

2006 2007 2008 2009 2010 2011

Note: Capital employed =Net worth + Borrowings. Where, Net worth = Share capital + Reserves and Surplus Borrowings= Loans + Funds.

If we take the debt ratio of 2009 i.e. 0.67 means that the lenders have finance 67% it is obviously implies that the owners have providing the remaining finance. They have 1-0.67=0.33=33% of the net assets.
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Debt equity ratio Debt equity ratio can be computed by dividing the total debt by net worth.

Particulars Total debt Net worth Debt ratio

2006 7020.11

2007 8108.72 1.44:1

2008 17124.51 8903.24 1.92:1

2009 16162.19.19 9774.99 1.65:1

2010 22257.95 11511.33 1.93:1

2011 26055.53 12616.69 2.067:1

10321.81 11712.48

equity 1.47:1

30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Total debt Net worth Debt equity ratio

This ratio is decreased in the year 2004 i.e. 1.47:1 when Compared to the year 2009 i.e. 2.07.

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Profitability ratios A company should earn profits to survive and grow over a long period of time, the difference between total revenues and total expenses over a period of time. Profit is the ultimate output of a company and it will have no future lift fails to make sufficient profits. The profitability ratios are calculated to measure the operating efficiency of the company. Besides the management of the company, creditors and owners are also interested in the profitability of the firm. The profitability ratios can also be computed by relating the profits of a firm to its investment in assets in the term of capital contributed by creditors and owners of the company. If the company is unable to earn a satisfactory return on investment its survival is threatened. Gross profit ratio This profitability is relation to sales is the gross profit margin. It is calculated by dividing the gross profit by sales. Gross profit ratio= Gross profit Sales Particulars Gross profit Sales Gross ratio 2006 2346.57 29556.77 profit 0.07:1 2007 3343.75 28101.73 0.11:1 2008 3103.12 33516.26 0.09:1 2009 3110.18 36752.25 0.08:1 2010 5373.13 36316.52 0.14:1 2011 4524.80 39419.28 0.11:1

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40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Gross profit Sales Gross profit ratio

This refers the efficiency with which management produces each unit of product. This ratio indicates the average spread between the cost of goods sold and the sales revenue. High gross profit margin relative to the industry lower cost. A gross profit margin ratio may increase due to any of the following factors. Higher sales price cost of goods sold remaining constant. Lower cost of goods sold, sales price remaining constant. A low gross profit margin reflects a higher cost of goods sold due to the firms inability to purchase at favorable term, inefficient utilization of plant and machinery or over investment on plant and machinery resulting in higher cost of production. Here the ratio is increasing and decreasing indicates sales price has declined or the cost of production has increased.

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Net profit margin Net profit is obtained when operating expenses interest and taxes are subtracted from the gross profit. The net profit margin ratio is measured by dividing profit after tax by sales. Net profit ratio= Profit after taxes Net sales Particulars Profit taxes Net sales Net profit 2006 after 891.96 2007 1410.21 2008 1040.95 2009 1127.49 2010 2241.89 2011 1442.21

29556.7 28101.73 7 0.03:1 0.05:1

33516.26 0.03:1

36752.25 0.03:1

36316.52 0.06:1

39419.28 0.04:1

40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Profit after taxes Net sales Net profit ratio

Net profit margin ratio established a relationship between net profit and sales and indicates managements efficiency in manufacturing, administrating and selling the products. This ratio is overall measure of the firms ability to turn rupee sales into net profit.

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Operating expenses ratio This ratio is an important ratio that explains the charges in the profit margin ratio. This ratio is computed by dividing operating expenses that is cost of goods sold plus selling expenses and general administrative expenses by sales.

Operating expenses ratio= Operating expen Sales Where, Operating expenses= cost of goods sold (sales-gross profit) + Selling expenses + general and administration expenses.

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Particulars Operating expenses Sales Operating expenses ratio

2006 28876.98 29556.77 0.97:1

2007 26918.69 28101.73 0.95:1

2008 32813.91 33516.26 0.98:1

2009 36641.15 36752.25 0.91:1

2010 33870.65 36316.52 0.93:1

2011 37915.44 39419.28 0.96:1

40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 2011 Opeating expenses Sales Operating expenses ratio

A higher operating expenses ratio is unfavorable since it will leave a small amount of operating income to meet interest, dividends etc. This operating expenses ratio of SS mills is changing may be due to changes in management policy.

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Return on Equity A return on shareholders is calculated to see the profitability of the owners investment. The return on shareholders equity is net profit after taxes divided by shareholders equity. Return on equity (ROE) = Profit after tax Net worth

Particulars

2006

2007 1398.84 8108.72 0.17:1

2008 1042.71 8903.24 0.11:1

2009 1122.61 9774.99 0.11:1

2010 2338.05 1511.33 0.20:1

2011 1427.35 12616.69 0.11:1

Net profit after 888.74 taxes Net worth 7020.11 ROE 0.12:1

14000 12000 10000 8000 6000 4000 2000 0 2006 2007 2008 2009 2010 2011 Net profit after tax Net worth ROE

This ratio is one of the most important relationships in financial analysis. Return on owners equity of the company should be compared with the ratio for other similar companies and industries which reveal the relative performance and strength of a company.

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CHAPTER-5 SUGGESTIONS, FINDINGS & BIBLIOGRAPHY

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SUGGESTIONS
SS MILLS has high liquidity ratio, a vary high degree of liquidity is also

bad. Idle assets earn nothing. The firms funds will be unnecessarily tied up in the current assets. Therefore it is necessary to strike a proper balance between liquidity and lack of liquidity. The liquidity turn over ratio of the its increasing year by year so the Company has to maintain in the same motto as it increased the efficiency in inventory management of the company.
Gross profit has decreased. This may be due to increased in the cost of

production or decrease in the income from sales due to decrease in the selling price.

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FINDINGS

The study reveals that the liquidity of the company is very high then the idle ratio i.e...2:1 Inventory turn over ratio is high in 2004 financial year. In 2006 it is low compared to previous year. Total debit ratio of the company has increased in the year 2007 this means proportionate increasing of debit lies more than the proportionate increasing in capital employed this implies the company is depending on long time. Debit equity ratio indicates proportion of the debit and equity of in the financial of longer term capital needs of firm. It is increasing 2004-2009. Gross profit ratio has decreased in the year 2006 compared to previous year. Operating expenses ratio of has been increased from 2004-2007 and increased in the year 2009 when compared to 2008.

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BIBLIOGRAPHY Annual Reports of super spinning mills Financial Management Financial Management Management Accounting Accountancy Website : I.M. Pandey : Prasanna Chandra : MY. Khan & P.K Jain : S.P. Jain & K.L.Narang : WWW.superspinning.com

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