PERFORMANCE ANALYSIS OF VOLTAS COMPANY LIMITED.

A REPORT FOR INSTITUTIONAL TRAINING

Submitted in partial fulfillment of

the requirements for award of the degree of

B. Com (Corporate Secretaryship)

By

N. BALAJI

Reg No :1913101042402

Department of Corporate Secretaryship

Dwaraka Doss Goverdhan Doss Vaishnav College,
Chennai 600 106.
March 2022

1
 DWARAKA DOSS GOVERDHAN DOSS VAISHNAV COLLEGE
(AUTONOMOUS)
DEPARTMENT OF CORPORATE SECRETARY SHIP

“GOKUL BAGH” 833, PERIYAR E.V.R. SALAI,

ARUMBAKKAM, CHENNAI-600 106

PERFORMANCE ANALYSIS OF VOLTAS COMPANY LTD.

REGISTER No : 1913101042402

ROLL No. 19E1433

This is a bonafide record of the work done by N.BALAJI during the year
2021-2022.

Signature of the Student Signature of Head of the Dept.

Internal Examiner External Examiner

2
 ACKNOWLEDGEMENT

I express my gratitude to the Principal CAPT. DR. S. SANTHOSH BABOO,

(M.SC, Ph.D.) of D.G Vaishnav College, for granting me admission to the B.Com
(Corporate Secretaryship) degree course.
I extend my sincere thanks to Dr. K. KALPANA DEVI (M.COM, M. PHIL, MBA,
FCMA, SET, Ph.D.,) Head of the Department of Corporate Secretaryship, for permitting
me to institutional training.
I offer my sincere thanks to Dr. R.K. GOPINATH (M.COM, M. PHIL, MBA, SET,
PH.D.,) and other assistant professors of corporate Secretary ship Department (Evening),
D.G. Vaishnav College who helped me to gain experience and knowledge through this
Institutional Training.
I am very thankful to the company that I have undergone internship, who gave me
opportunity to learn about shares of the company, company’s paid-up capital, conduct of
meetings, etc.
I thank my parents for helping me in choosing a good company into undergo training and
learn out of it. Finally, I am also thankful to my friends who were the reason I am being
here in the college and were the source of my knowledge. Their various views made my
views clear and core. I express my regards to them for being a part of my project and its
progress.

3
CHAPTER CONTENTS PAGE NO
1. COMPANY PROFILE

2. FINANCIAL ANALYSIS

3. RATIO ANALYASIS

4. STATISTICAL ANALYSIS

5. SUMMARY AND
FINDINGS

6. CONCLUSION

4
 CHAPTER - 1

PROFILE OF THE COMPANY

INTRODUCTION :

Voltas Limited is an Indian multinational electronics company that manufactures home

appliances and specialises in air conditioning and cooling technology. The company was
incorporated on 6 September 1954 in Mumbai, as a collaboration between Tata Sons and Volkart
Brothers. The Chairman of the company is Noel Tata and the Managing Director and Chief
Executive Officer of the company is Pradeep Bakshi.

Voltas Limited is India’s largest air conditioning company and one of the world’s premier
engineering solutions providers and project specialists. Voltas Limited is part of the Tata Group
and in addition to Air Conditioners Air Coolers Water Dispensers Water Coolers and Commercial
Refrigeration products; Voltas offers engineering solutions for a wide spectrum of industries in
areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects
electrification water management & treatment cold chain solutions building management systems
indoor air quality textile machinery and mining and construction equipment. Voltas is the market
leader in room air conditioners in India with market share of more than 25% (as per the latest
published reports for FY19).Voltas’ operations have been organized into three independent
business- specific clusters viz. Electro-Mechanical Projects & Services Engineering Products &
Services and Unitary Cooling Products. The company’s manufacturing units at located at Thane
Maharashtra Dadra a Union Territory and Pantnagar in Uttaranchal. The company has overseas
offices in UAE (Abu Dhabi Dubai) Bahrain Qatar (Doha) Kingdom of Saudi Arabia (Jeddah) and
Singapore.

Voltas is an Indian company of home appliances and consumer electronics. The company
5
headquartered is in Mumbai, Maharashtra, India. Voltas is one of the most reputed engineering
solution providers specializing in project management. The company plays a vital role in
developing the infrastructure of the nation as well as exporting their unparalleled expertise across
Technology, Engineering, Construction, Cooling and Ventilation, Infrastructure Projects, Textile,
Mining and Manufacturing sectors, making them one of the most trusted and reliable engineering
solution providers.

HISTORY:

1954 – The Company was Incorporated on 6 th September at Mumbai. The Company was
promoted in 1954 by M/s. Volkart Brothers and Tata Sons Pvt. Ltd., to take over the Engineering
& Import Division of M/s. Volkart Brothers in India.The marketing group consists of two main
divisions, one dealing in drugs, pharmaceuticals and consumer products and the other in chemicals
and vitamins. The Company manufactures, sale and distribution of a variety of products in the
engineering, chemical and pharmaceutical industries such as agricultural, earthmoving, air-
conditioning and refrigeration, textile machinery, machine tools, electrical and mechanical
equipments as well as chemicals, pharmaceuticals and consumer products.

1963 – The Company promoted Scottish Indian Machine Tools Ltd., in Collaboration with
Scottish Machine Tool Corporation of Glasgow for the manufacture of machine tools.

1964 – The Company concluded a collaboration agreement with Eaton Yale and Towns,
U.S.A., for the manufacture of Yale fork-lift trucks. The Company has extensive domestic and
international ties. The Company joined the Mine Safety Appliances Co.,

2001 – Tata group company Voltas Ltd. Is relaunching Voltas airconditioners under the

`Verdant’ brand, a premium model targeted at the retail segment. Tata group company Voltas
Ltd the air-conditioner (AC) and cooling appliances major has posted a strong growth in the split
air-conditioner segment.

2002 – N D Khurody appointed as Additional Director of Voltas. Voltas enters into a Joint

6
Venture agreement with Sermo Montaigu, France for perfect moulds. Voltas Ltd has informed
BSE that Perfect Moulds Ltd.

2004 -Voltas Ltd. Has informed that in response to their application for voluntary delisting,
the Delhi Stock Exchange Association Limited (DSE) has informed the company vide its letter
dated December 26, 2003 that the securities of the Company have been delisted from DSE with
effect from December 29, 2003.

2009 -Voltas’ overseas MEP business achieved professional recognition at the highest levels,
at the MEP Middle East Awards 2008.

2010 -Memorandum of understanding between Voltas and the Mustafa Sultan Group to form
joint venture company in the Sultanate of Oman Voltas.

2011 -Voltas Limited and KION Group GmbH have agreed to establish a joint venture in
India

“Voltas enters market with 70 air conditioners this season”.

2014 -Voltas executed a Joint Venture Agreement with Dow Chemical Pacific (Singapore)
Pte.
Ltd.

2016 – Voltas launches smart water solutions to provide clean water – Voltas Water Solutions
combines Smart Engineering with Smart Water Science to launch Smart Water Solution.

2017 – Voltas Limited won the most coveted MEP Contractor of the Year award – Voltas
Limited and ArAselik A.S. join forces in India Joint Venture Company to be established to tap
IndiaAs growing consumer durables market.

IMPORTANT EVENTS :

7
1956 – Shares sub-divided. 1,05,000 Rights shares then issued at par in prop. 7:10.

1965 – 1,02,000 Rights Equity shares issued at a premium of Rs 25 per share in the proportion 2:5.

1970 – In April, 85,580 Bonus Equity shares issued in the proportion 1:5.

1972 – 1,03,896 Rights Equity shares issued for cash at a premium of Rs 50 per share in June.

1989 – With effect from 1st March, “Volrho Ltd.” Was amalgamated with the Company as per the
order of BIFR. The Company issued 4,44,445 No. of equity shares of Rs 10 each to the erstwhile
shareholders of “Volrho Ltd.”.

1994 – The Home Appliances division introduced 250 L refrigerator in the market and a 100L
refrigerator was expected to be launched in the first quarter of 1995-96.

2003 – Voltas Ltd has informed BSE that Mr Bir D Singh Executive Director has retired from the
services of the company on December 27, 2002. Accordingly, he ceases to be a Director and
Wholetime Director of the company.

2011 -Voltas Limited and KION Group GmbH have agreed to establish a joint venture in India.
-“Voltas enters market with 70 air conditioners this season”.

2012 -Voltas Ltd has recommended Dividend of Rs. 1.60 per share.

2013 -Voltas acquires 100% stake in Rohini Industrial Electricals Ltd.

8
9
BOARD OF DIRECTORS:

NAME DESIGNATION

Mr. Noel N. Tata Chairman

Mr. Pradeep Bakshi Managing Director & CEO

Mr. Vinayak k. Deshpande Independent Director

Mr. Debendranath Sarangi Independent Director

Mr. Hemant Bhargava Director

Mr. Bahram Navroz Vakil Independent Director

Ms. Anjali Bansal Independent Director

Mr. Arun Kumar Adhikari Director

Mr. Zubin Dubash Independent Director

Mr. Saurabh Mahesh Agrawal Director

10
 PRODUCT PROFILE
Air Conditioners:

It would be very hard to find a person in India, that doesn’t know Voltas. This brand is
not only popular in India but also in the whole world. This is a subsidiary company of Tata
Group that specializes in home appliances. One of their most popular product line up is their
Air Conditioners.

Air Coolers:

The new range of Voltas Fresh Air Coolers comes with dynamic features – smart
humidity controller, 3 & 4 sided honeycomb padding, turbo air-throw, mosquito repellant,
and more undisputed leader in Cooling Products.

Refrigerators:

Refrigerator or fridge is commonly used in every home. It helps in keeping vegetables

11
and fruits fresh by making them cold. If there is any fault or problem with your refrigerator
then you have to take service sitting at your home, side-by-side refrigerators, top freezer
refrigerators, bottom freezer refrigerators,under-counter refrigerators, etc:

Washing Machines:

Washing Machine is such an appliance that it has become necessary for everyone, it
saves a lot of human efforts and time, if there any problem in the washing machine, Then
you have to take service at your home by contacting Quickhometech service provider. If you
are searching for washing machine repair and service online, then Quickhometech offers
you the service at reliable prices.

Dishwashers:

The Voltas Beko tabletop dishwasher has challenged this notion. A bestseller in its
category, its compact size (55x50x59.5cm) is ideal for an average city kitchen. The model
under review — the 8 PS Portable Countertop Dishwasher DT8B — has powerful waterjets
with up to 70 degrees that can clean oil, turmeric, and other Indian masalas and has just the
right loading capacity that fulfills the requirements of a small household.

Microwaves:

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 These convection microwaves from Voltas Beko offer an array of exciting features,
making them premium, top quality microwave convection ovens in India. The convention
microwave oven is what you need if you have a love for baking cakes, cupcakes, cookies or
anything else that your heart desires.

Air Purifiers:

The Voltas Air Purifier VAP47TWO has a neat, simplistic design in a white matte finish.
It does look premium but at the same time it is likely to get dirty quickly. The machine
sucks impure air from the front sides and releases the clean air from the rear top.

Water Dispensers :

Indian Voltas Water Dispenser Export data covers valuable information for traders like
Bill of entry date, HS code, Date of shipment, Product description, Indian Exportport name,
value and quantity of product. SEAIR EXIM SOLUTIONS provides the latest, 100%
genuine and trusted Indian Export data of Voltas Water Dispenser. We collect Voltas Water
Dispenser Export data from more than 190 Indian Export ports.

13
 CHAPTER - 2
FINANCIAL ANAYSIS

SHOWING COMPARATIVE STATEMENT OF BALANCE

SHEET FOR THE YEAR 2016-2017
Particulars 2016 2017 Increase/Decrease
Amount Percentage Remarks
Equity&
Liabilities
Shareholder’s
funds
Equity Share 33.08 33.08 0 0 Constant
capital
Total share capital 33.08 33.08 0 0 Constant

Reserves and 2,045.67 2,951.74 906.07 44.3 Increased by

surplus 44.3%

Total reserves and 2,045.67 2,951.74 906.07 44.3 Increased by

surplus 44.3%
Total shareholders 2,078.74 2,984.82 906.08 43.59 Increased by
funds 43.59%
Long term 0.00 0.00 0 0 Constant
14
 borrowing
Deferred tax 0.00 0.00 0 0 Constant
liabilities
Other long term 26.35 0.20 -26.15 -99.25 Decreased
liabilities by 99.25%
Long term 103.14 77.95 -25.19 -24.43 Decreased
provisions by 24.43%
Total non-current 129.48 78.15 -51.33 -39.65 Decreased
liabilities by 39.65%

Short term 119.49 69.08 -50.41 -42.19 Decreased

borrowing by 42.19%

Trade payable 1,404.94 1,752.05 347.11 24.71 Increased

by 24.71%

Other current 474.05 546.70 72.65 15.33 Increased

liabilities by 15.33%

Short term 262.68 165.53 -97.15 -36.99 Decreased

provisions by 36.99%

Total current 2,261.16 2,533.36 272.2 12.04 Increased by

liabilities 12.04%

Total capital and 4,469.39 5,596.33 1126.94 25.22 Increased by

liabilities 25.22%

Tangible Assets 174.29 152.73 -21.56 -12.38 Decreased

by 12.38%

Intangible assets 7.76 7.82 0.06 0.78 Increased

by 0.78%

Capital work-in- 1.09 0.55 -0.54 -49.55 Decreased

progress by 49.55%

Other assets 0.00 45.66 45.66 0 Constant

15
Fixed assets 183.14 206.76 23.62 12.9 Increased by
12.9%

Non-current 987.44 2,213.86 1226.42 124.21 Increased by

investments 124.21%

Deferred tax 52.84 22.08 -30.76 -58.22 Decreased

Assets by 58.22%

16
 Long term 120.02 0.72 -119.3 -99.41 Decrease
loans and d by
advances 99.41%
Other non- 80.77 77.10 -3.67 -4.55 Decrease
current assets d by
4.55%
Total Non- 1,424.20 2,520.52 1096.32 76.98 Increased
current assets by 76.98%
Current 666.74 199.54 -467.2 -70.08 Decreased
investments by 70.08%
Inventories 594.44 776.03 181.59 30.55 Increased
by 30.55%
Trade 1,017.92 1,187.97 170.05 16.71 Increased
receivables by
16.71%
Cash and cash 132.31 213.62 81.31 61.46 Increased
equivalents by
61.46%
Short term 142.68 1.53 -141.15 -98.93 Decreased
loans and by 98.93%
advances
Other current 491.09 697.12 206.03 41.96 Increased
assets by
41.96%
Total current 3,045.19 3,075.81 30.62 1.01 Increased
assets by 1.01%
Total assets 4,469.39 5,596.33 1,126.94 25.22 Increased
by
25.22%

17
 SHOWING COMPARATIVE STATEMENT OF BALANCE
SHEET FOR THE YEAR 2017-2018
Particulars 2017 2018 Increase/Decrease
Amount Percentage Remarks
Equity&
Liabilities
Shareholder’s
funds
Equity Share 33.08 33.08 0 0 constant
capital
Total share capital 33.08 33.08 0 0 Constant

Reserves and 2,951.74 3,480.88 529.14 17.93 Increased by

surplus 17.93%

Total reserves and 2,951.74 3,480.88 529.14 17.93 Increased by

surplus 17.93%
Total shareholders 2,984.82 3,513.96 529.14 17.73 Increased by
funds 17.73%
Long term 0.00 0.00 0 0 Constant
borrowings
Deferred tax 0.00 0.00 0 0 Constant
liabilities
Other long term 0.20 0.97 0.77 385 Increased by
liabilities 385%
Long term 77.95 73.32 -4.63 -5.94 Decreased by
provisions 5.94%
18
Total non-current 78.15 74.29 -3.86 -4.94 Decreased by
liabilities 4.94%

Short term 69.08 27.82 -41.26 -59.73 Decreased by

borrowing 59.73%

Trade payable 1,752.05 2,114.50 362.45 20.69 Increased by

20.69%

Other current 546.70 568.28 21.58 3.95 Increased by

liabilities 3.95%

Short term 165.53 176.76 11.23 6.79 Increased by

provisions 6.79%

Total current 2,533.36 2,887.36 354 13.98 Increased by

liabilities 13.98%

Total capital and 5,596.33 6,475.61 879.28 15.72 Increased by

liabilities 15.72%

Tangible Assets 152.73 152.28 -0.45 -0.3 Decreased by

0.3%

Intangible assets 7.82 8.61 0.79 10.11 Increased by

10.11%

Capital work-in- 0.55 3.34 2.79 507.28 Increased by

progress 507.28%

Other assets 45.66 44.71 -0.95 -2.09 Decreased by

2.09%

Fixed assets 206.76 208.94 2.18 1.06 Increased by

1.06%

Non-current 2,213.86 2,383.93 170.07 7.69 Increased by

investments 7.69%

Deferred tax 22.08 13.87 -8.21 -37.19 Decreased by

19
Assets 37.19%

20
 Long term 0.72 0.50 -0.22 -30.56 Decreased by
loans and 30.56%
advances
Other non- 77.10 105.49 28.39 36.83 Increased by
current assets 36.83%
Total Non- 2,520.52 2,712.73 192.21 7.63 Increased by
current Assets 7.63%
Current 199.54 510.37 310.83 155.78 Increased by
investments 155.78%
Inventories 776.03 742.30 -33.73 -4.35 Decreased by
4.35%
Trade 1,187.97 1,277.05 89.08 7.5 Increased by
receivables 7.5%
Cash and cash 213.62 199.96 -13.66 -6.4 Decreased by
equivalents 6.4%
Short term 1.53 3.39 1.86 121.57 Increased by
loans and 121.57%
advances
Other current 697.12 1,029.81 332.69 47.73 Increased by
assets 47.73%
Total current 3,075.81 3,762.88 687.07 22.34 Increased by
assets 22.34%
Total assets 5,596.33 6,475.61 879.28 15.72 Increased by
15.72%

21
 SHOWING COMPARATIVE STATEMENT OF BALANCE
SHEET FOR THE YEAR 2018-2019
Particulars 2018 2019 Increase/Decrease Remarks
Amount Percentage
Equity&
Liabilities
Shareholder’s
funds
Equity Share 33.08 33.08 0 0 Constant
capital
Total share capital 33.08 33.08 0 0 Constant

Reserves and 3,480.88 3,710.07 229.19 6.59 Increased by

surplus 6.59%

Total reserves and 3,480.88 3,710.07 229.19 6.59 Increased by

surplus 6.59%
Total shareholders 3,513.96 3,743.15 229.19 6.53 Increased by
fund 6.53%
Long term 0.00 0.00 0 0 Constant
borrowing
Deferred tax 0.00 0.00 0 0 Constant
liabilities
Other long term 0.97 0.70 -0.27 -27.84 Decreased by
liabilities 27.84%
Long term 73.32 73.26 -0.06 -0.09 Decreased by
provisions 0.09%
Total non-current 74.29 73.96 -0.33 -0.45 Decreased by
liabilities 0.45%

Short term 27.82 113.64 85.82 308.49 Increased by

22
 borrowing 308.49%

Trade payable 2,114.50 2,373.96 259.46 12.28 Increased by

12.28%

Other current 568.28 396.97 -171.31 -30.15 Decreased by

liabilities 30.15%

Short term 176.76 118.56 -58.2 -32.93 Decreased by

provisions 32.93%

Total current 2,887.36 3,003.13 115.77 4.01 Increased by

liabilities 4.01%

Total capital and 6,475.61 6,820.24 344.63 5.33 Increased by

liabilities 5.33%

Tangible Assets 152.28 197.38 45.1 29.62 Increased by

29.62%

Intangible assets 8.61 8.31 -0.3 -3.49 Decreased by

3.49%

Capital work-in- 3.34 15.20 11.86 355.09 Increased by

progress 355.09%

Other assets 44.71 46.27 1.56 3.49 Increased by

3.49%

Fixed assets 208.94 267.16 58.22 27.87 Increased by

27.87%

Non-current 2,383.93 1,389.97 -993.96 -41.7 Decreased by

investments 41.7%

Deferred tax 13.87 55.85 41.98 302.67 Increased by

Assets 302.67%

23
 Long term 0.50 0.31 -0.19 -38 Decreased
loans and by 38%
advances
Other non- 105.49 202.37 96.88 91.84 Increased by
current assets 91.84%
Total Non- 2,712.73 1,915.66 -797.07 -29.39 Decreased
current Assets by 29.39%
Current 510.37 1,235.69 725.32 142.12 Increased by
investments 142.12%
Inventories 742.30 1,002.99 260.69 35.12 Increased by
35.12%
Trade 1,277.05 1,394.84 117.79 9.23 Increased by
receivable 9.23%
Cash and cash 199.96 236.87 36.91 18.46 Increased by
equivalents 18.46%
Short term loans 3.39 10.86 7.47 220.36 Increased by
and advances 220.36%
Other current 1,029.81 1,023.33 -6.48 -0.63 Decreased
assets by 0.063%
Total current 3,762.88 4,904.58 1141.7 30.35 Increased by
assets 30.35%
Total assets 6,475.61 6,820.24 344.63 5.33 Increased by
5.33%

24
 SHOWING COMPARATIVE STATEMENT OF BALANCE
SHEET FOR THE YEAR 2019-2020
Particulars 2019 2020 Increase/Decrease
Amount Percentage Remarks
Equity&
Liabilities
Shareholder’s
funds
Equity Share 33.08 33.08 0 0 Constant
capital
Total share capital 33.08 33.08 0 0 Constant

Reserves and 3,710.07 4,185.24 475.17 12.81 Increased by

surplus 12.81%

Total reserves and 3,710.07 4,185.24 475.17 12.81 Increased by

surplus 12.81%
Total shareholders 3,743.15 4,218.32 475.17 12.7 Increased by
fund 12.7%
Long term 0.00 5.41 5.41 0 Constant
borrowing
Deferred tax 0.00 0.00 0 0 Constant
liabilities
Other long term 0.70 30.51 29.81 4258.58 Increased by
liabilities 4258.58%
Long term 73.26 74.10 0.84 1.15 Increased by
provisions 1.15%
Total non-current 73.96 110.02 36.06 48.76 Increased by
liabilities 48.76%

Short term 113.64 82.99 -30.06 -26.98 Decreased by

25
 borrowing 26.98%

Trade payable 2,373.96 2,577.90 203.94 8.6 Increased by

8.6%

Other current 396.97 540.19 143.22 36.08 Increased by

liabilities 36.08%

Short term 118.56 106.40 -12.16 -10.26 Decreased by

provisions 10.26%

Total current 3,003.13 3,307.48 304.35 10.14 Increased by

liabilities 10.14%

Total capital and 6,820.24 7,635.82 815.58 11.96 Increased by

liabilities 11.96%

Tangible Assets 197.38 245.12 47.74 24.19 Increased by

24.19%

Intangible assets 8.31 9.17 0.86 10.35 Increased by

10.35%

Capital work-in- 15.20 26.28 11.08 72.9 Increased by

progress 72.9%

Other assets 46.27 45.34 -0.93 -2.01 Decreased by

2.01%

Fixed assets 267.16 325.91 58.75 22 Increased by

22%

Non-current 1,389.97 2,121.26 731.29 52.42 Increased by

investments 52.42%

Deferred tax 55.85 24.34 -31.51 -56.42 Decreased by

Assets 56.42%

26
 Long term 0.31 0.22 -0.09 -29.04 Decreased
loans and by 29.04%
advances
Other non- 202.37 255.09 52.72 26.06 Increased by
current assets 26.06%
Total Non- 1,915.66 2,726.82 811.16 42.35 Increased by
current Assets 42.35%
Current 1,235.69 520.39 -715.3 -57.89 Decreased
investments by 57.89%
Inventories 1,002.99 1,460.45 457.46 45.61 Increased by
45.61%
Trade 1,394.84 1,431.94 37.1 2.66 Increased by
receivables 2.66%
Cash and cash 236.87 201.39 -35.48 -14.98 Decreased
equivalents by 14.98%
Short term loans 10.86 1.05 -9.81 -90.34 Decreased
and advances by 90.34%
Other current 1,023.33 1,293.78 270.45 26.43 Increased by
assets 26.43%
Total current 4,904.58 4,909.00 4.42 0.1 Increased by
assets 0.1%
Total assets 6,820.24 7,635.82 815.58 11.96 Increased by
11.96%

27
 SHOWING COMPARATIVE STATEMENT OF BALANCE
SHEET FOR THE YEAR 2020-2021
2020 2021 Increase/Decrease
Particulars Amount Percentage Remarks
Equity&
Liabilities
Shareholder’s
funds
Equity Share 33.08 33.08 0 0 Constant
capital
Total share capital 33.08 33.08 0 0 Constant

Reserves and 4,185.24 4,951.62 766.38 18.32 Increased by

surplus 18.32%

Total reserves and 4,185.24 4,951.62 766.38 18.32 Increased by

surplus 18.32%
Total shareholders 4,218.32 4,984.70 766.38 18.17 Increased by
funds 18.17%
Long term 5.41 4.00 -1.41 -26.07 Decreased by
borrowing 26.07%
Deferred tax 0.00 0.00 0 0 Constant
liabilities
Other long term 30.51 26.37 -4.14 -13.57 Decreased by
liabilities 13.57%
Long term 74.10 73.72 -0.38 -0.52 Decreased by
provisions 0.52%
Total non-current 110.02 104.09 -5.93 -5.39 Decreased by
liabilities 5.39%

Short term 82.99 104.46 21.47 25.88 Increased by

28
 borrowing 25.88%

Trade payable 2,577.90 2,057.84 -520.06 -20.18 Decreased by

20.18%

Other current 540.19 616.82 76.63 14.19 Increased by

liabilities 14.19%

Short term 106.40 108.89 2.49 2.35 Increased by

provisions 2.35%

Total current 3,307.48 2,888.01 -419.47 -12.69 Decreased by

liabilities 12.69%

Total capital and 7,635.82 7,976.80 340.98 4.47 Increased by

liabilities 4.47%

Tangible Assets 245.12 242.63 -2.49 -1.02 Decreased by

1.02%

Intangible assets 9.17 8.23 -0.94 -10.26 Decreased by

10.26%

Capital work-in- 26.28 8.81 -17.47 -66.48 Decreased by

progress 66.48%

Other assets 45.34 55.55 10.21 22.52 Increased by

22.52%

Fixed assets 325.91 315.22 -10.69 -3.29 Decreased by

3.29%

Non-current 2,121.26 3,193.97 1072.71 50.57 Increased by

investments 50.57%

Deferred tax 24.34 16.08 -8.26 -33.94 Decreased by

Assets 33.94%

29
 Long term 0.22 0.17 -0.05 -22.73 Decreased
loans and by 22.73%
advances
Other non- 255.09 200.48 -54.61 -21.41 Decreased
current assets by 21.41%
Total Non- 2,726.82 3,725.92 999.1 36.64 Increased
current Assets by 36.64%
Current 520.39 249.32 -272.07 -52.09 Decreased
investments by 52.09%
Inventories 1,460.45 1,273.90 -186.55 -12.78 Decreased
by 12.78%
Trade 1,431.94 1,452.28 20.34 1.43 Increased
receivables by 1.43%
Cash and cash 201.39 324.35 122.96 61.06 Increased
equivalents by 61.06%
Short term loans 1.05 1.30 0.25 23.81 Increased
and advances by 23.81%
Other current 1,293.78 949.73 -344.05 -26.6 Decreased
assets by 26.6%
Total current 4,909.00 4,250.88 -658.12 -13.41 Decreased
assets by 13.41%
Total assets 7,635.82 7,976.80 340.98 4.47 Increased
by 4.47%

30
 COMPARATIVE PROFIT AND LOSS ACCOUNT
FOR THE YEAR 2016 - 2017

PARTICULAR 2016 2017 Increase/Decrease

Amount Percentage Remarks
Income
Revenue from 5,190.04 5,425.02 234.98 4.53 Increased
operations[gross] by 4.53%
Less:excise/service 26.85 62.22 35.37 131.74 Increased
tax/other levies by
131.74%
Revenue from 5,163.19 5,362.80 199.61 3.87 Increased
operations by 3.87%
Total Operating 5,187.48 5,410.36 222.88 4.3 Increased
Revenues by 4.3%
Other income 165.09 267.34 102.25 61.94 Increased
by 61.94%
Total revenue 5,352.57 5,677.70 325.13 6.08 Increased
by 6.08%
Cost of materials 1,761.78 1,678.27 -83.51 -4.75 Decreased
consumed by 4.75%
Purchase of stock in 2,104.97 2,589.12 484.15 23.01 Increased
trade by 23.01%
Operating and 0.00 0.00 0 0 Constant
direct expenses
Changes in 97.70 -205.35 -303.05 -310.19 Decreased
inventories of FG, by
WIP and stock in 310.19%
trade

31
Employee benefit 414.62 406.55 -8.07 -1.95 Decreased
expenses by 1.95%
Finance costs 8.06 9.66 1.60 19.86 Increased
by 19.86%
Depreciation and 19.14 18.12 -1.02 -5.33 Decreased
Amortisation by 5.33%
expenses
Other expenses 510.89 524.30 13.41 2.63 Increased
by 2.63%
Total expenses 4,917.16 5,020.67 103.51 2.11 Increased
by 2.11%
Profit/loss before 435.41 657.03 221.62 50.9 Increased
exceptional, by 50.9%
extraordinary item
and tax
Exceptional items 32.76 -6.01 -38.77 -118.35 Decreased
by
118.35%
Profit/loss before 468.17 651.02 182.85 39.06 Increased
tax by 39.06%
Current tax 151.58 179.20 27.62 18.23 Increased
by 18.23%
Less:Mat credit 0.00 0.00 0 0 Constant
entitlement
Deferred tax -16.10 -0.03 16.07 -99.82 Decreased
by 99.82%
Tax for earlier -0.20 -14.34 -14.14 7070 Increased
years by 7070%
Total tax expenses 135.28 164.83 29.55 21.85 Increased
by 21.85%
Profit/loss after tax 332.89 486.19 153.30 46.06 Increased

32
 and before by 46.06%
extraordinary items
Profit/loss from 332.89 486.19 153.30 46.06 Increased
continuing by 46.06%
operations
Profit/loss for the 332.89 486.19 153.30 46.06 Increased
period by 46.06%

COMPARATIVE PROFIT AND LOSS ACCOUNT

FOR THE YEAR 2017 - 2018

33
PARTICULAR 2017 2018 Increase/Decrease
Amount Percentage Remarks
Income
Revenue from 5,425.02 5,796.17 371.15 6.85 Increased
operations[gross] by 6.85%
Less:excise/service 62.22 23.49 -38.73 -62.25 Decreased
tax/other levies by 62.25%
Revenue from 5,362.80 5,772.68 409.88 7.65 Increased
operations by 7.65%
Total Operating 5,410.36 5,808.77 398.41 7.37 Increased
Revenues by 7.37%
Other income 267.34 237.10 -30.24 -11.32 Decreased
by 11.32%
Total revenue 5,677.70 6,045.87 368.17 6.49 Increased
by 6.49%
Cost of materials 1,678.27 1,764.35 86.08 5.13 Increased
consumed by 5.13%
Purchase of stock 2,589.12 2,532.54 -56.58 -2.19 Decreased
in trade by 2.19%
Operating and 0.00 0.00 0 0 Constant
direct expenses
Changes in -205.35 99.76 305.11 -148.59 Decreased
inventories of FG, by
WIP and stock in 148.59%
trade
Employee benefit 406.55 422.30 15.75 3.88 Increased
expenses by 3.88%
Finance costs 9.66 7.50 -2.16 -22.37 Decreased
by 22.37%
Depreciation and 18.12 19.23 1.11 6.13 Increased
Amortisation by 6.13%
expenses
Other expenses 524.30 513.45 -10.85 -2.07 Decreased
by 2.07%
Total expenses 5,020.67 34
5,359.13 338.46 6.75 Increased
by 6.75%
Profit/loss before 657.03 686.74 29.71 4.53 Increased
COMPARATIVE PROFIT AND LOSS ACCOUNT
FOR THE YEAR 2018 - 2019

35
PARTICULAR 2018 2019 Increase/Decrease
Amount Percentage Remarks
Income
Revenue from 5,796.17 6,658.28 862.11 14.88 Increased
operations[gross] by 14.88%
Less:excise/service 23.49 0.00 -23.49 -100 Decreased
tax/other levies by 100%
Revenue from 5,772.68 6,658.28 885.60 15.35 Increased
operations by 15.35%
Total Operating 5,808.77 6,693.19 884.42 15.23 Increased
Revenues by 15.23%
Other income 237.10 262.55 25.45 10.74 Increased
by 10.74%
Total revenue 6,045.87 6,955.74 909.87 15.05 Increased
by 15.05%

Cost of materials 1,764.35 2,830.60 1,066.25 60.44 Increased

consumed by 60.44%
Purchase of stock 2,532.54 2,682.54 150.00 5.93 Increased
in trade by 5.93%
Operating and 0.00 0.00 0 0 Constant
direct expenses
Changes in 99.76 -273.36 -373.12 -374.02 Decreased
inventories of FG, by 374.02%
WIP and stock in
trade
Employee benefit 422.30 488.75 66.45 15.74 Increased
expenses by 15.74%
Finance costs 7.50 22.93 15.43 205.74 Increased
by 205.74%
Depreciation and 19.23 19.71 0.48 2.5 Increased
Amortisation by 2.5%
expenses
Other expenses 513.45 579.34 65.89 12.84 Increased
by 12.84%
36
Total expenses 5,359.13 6,350.51 991.38 18.5 Increased
by 18.5%
 COMPARATIVE PROFIT AND LOSS ACCOUNT
FOR THE YEAR 2019 - 2020

PARTICULAR 2019 2020 Increase/Decrease

Amount Percentage Remarks
Income
Revenue from 6,658.28 7,172.18 513.90 7.72 Increased
operations[gross] by 7.72%
Less:excise/service 0.00 0.00 0 0 Constant
tax/other levies
Revenue from 6,658.28 7,172.18 513.90 7.72 Increased
operations by 7.72%
Total Operating 6,693.19 7,205.79 512.60 7.66 Increased
Revenues by 7.66%
Other income 262.55 250.39 -12.16 -4.64 Decreased
by 4.64%
Total revenue 6,955.74 7,456.18 500.44 7.2 Increased
by 7.2%
Cost of materials 2,830.60 3,117.50 286.90 10.14 Increased
consumed by 10.14%
Purchase of stock 2,682.54 2,568.27 -114.27 -4.26 Decreased
in trade by 4.26%
Operating and 0.00 0.00 0 0 Constant
direct expenses
Changes in -273.36 -302.05 -28.69 10.5 Increased
inventories of FG, by 10.5%
WIP and stock in
trade
Employee benefit 488.75 521.19 32.44 6.64 Increased
expenses by 6.64%

37
 Finance costs 22.93 8.84 -14.09 -61.45 Decreased
by 61.45%
Depreciation and 19.71 28.56 8.85 44.91 Increased
Amortisation by 44.91%
expenses
Other expenses 579.34 646.93 67.59 11.67 Increased
by 11.67%
Total expenses 6,350.51 6,589.24 238.73 3.76 Increased
by 3.76%
Profit/loss before 605.23 866.94 261.71 43.25 Increased
exceptional, by 43.25%
extraordinary item
and tax

Exceptional items 25.57 -54.91 -80.48 -314.75 Decreased

by 314.75%
Profit/loss before 630.80 812.03 181.23 28.74 Increased
tax by 28.74 %
Current tax 189.00 188.94 -0.06 -0.04 Decreased
by 0.04%
Less:Mat credit 0.00 0.00 0 0 Constant
entitlement
Deferred tax -15.10 33.32 48.42 -320.67 Decreased
by
320.67%
Tax for earlier -7.57 -5.32 2.25 -29.73 Decreased
years by 29.73%
Total tax expenses 166.33 216.94 50.61 30.43 Increased
by 30.43%
Profit/loss after tax 464.47 595.09 130.62 28.13 Increased
and before by 28.13%

38
extraordinary items
Profit/loss from 464.47 595.09 130.62 28.13 Increased
continuing by 28.13%
operations
Profit/loss for the 464.47 595.09 130.62 28.13 Increased
period by 28.13%

COMPARATIVE PROFIT AND LOSS ACCOUNT

FOR THE YEAR 2020 - 2021

PARTICULAR 2020 2021 Increase/Decrease

Amount Percentage Remarks
Income
Revenue from 7,172.18 6,251.65 -920.53 -12.84 Decreased
operations[gross] by12.84 %
Less:excise/service 0.00 0.00 0 0 Constant
tax/other levies
Revenue from 7,172.18 6,251.65 -920.53 -12.84 Decreased
operations by 12.84%
Total Operating 7,205.79 6,377.97 -827.82 -11.49 Decreased
Revenues by 11.49%
Other income 250.39 219.96 -30.43 -12.16 Decreased
by 12.16%
Total revenue 7,456.18 6,597.93 -858.25 -11.52 Decreased
by 11.52%
Expenses
Cost of materials 3,117.50 2,617.72 -499.78 -16.04 Decreased
consumed by 16.04%
Purchase of stock 2,568.27 1,862.26 -706.01 -27.49 Decreased
in trade by 27.49%
Operating and 0.00 0.00 0 0 Constant

39
 direct expenses
Changes in -302.05 279.25 581.30 -192.46 Decreased
inventories of FG, by
WIP and stock in 192.46%
trade
Employee benefit 521.19 465.44 -55.75 -10.7 Decreased
expenses by 10.7%
Finance costs 8.84 19.10 10.26 116.07 Increased
by
116.07%
Depreciation and Increased
Amortisation 28.56 29.83 1.27 4.45 by 4.45%
expenses
Other expenses 646.93 590.91 -56.02 -8.66 Decreased
by 8.66%
Total expenses 6,589.24 5,864.51 -724.73 -11 Decreased
by 11%
Profit/loss before 866.94 733.42 -133.52 -15.41 Decreased
exceptional, by 15.14%
extraordinary item
and tax
Exceptional items -54.91 0.00 54.91 -100 Decreased
by 100%
Profit/loss before 812.03 733.42 -78.61 -9.69 Decreased
tax by 9.69%
Current tax 188.94 176.48 -12.46 -6.6 Decreased
by 6.6%
Less:Mat credit 0.00 0.00 0 0 Constant
entitlement
Deferred tax 33.32 -13.36 -46.68 -140.1 Decreased
by 140.1%

40
 Tax for earlier -5.32 0.00 5.32 -100 Decreased
years by 100%
Total tax expenses 216.94 163.12 -53.82 -24.81 Decreased
by 24.81%
Profit/loss after tax 595.09 570.30 -24.79 -4.17 Decreased
and before by 4.17%
extraordinary items
Profit/loss from 595.09 570.30 -24.79 -4.17 Decreased
continuing by 4.17%
operations
Profit/loss for the 595.09 570.30 -24.79 -4.17 Decreased
period by 4.17%

CHAPTER-3
RATIO ANALYSIS
Ratio analysis compares relationships between financial statement accounts. This means
that one income statement or balance sheet account is being compared to another. These
relationships between financial statement accounts will not only give a manager or investor an
41
idea of the how healthy the business is on a whole, it will also give them keen insights into
business operations.
Ratio analysis is a quantitative procedure of obtaining a look into a firm’s functional
efficiency, liquidity, revenues, and profitability by analysing its financial records and
statements. Ratio analysis is a very important factor that will help in doing an analysis of the
fundamentals of equity.
Analysts and investors make use of the methods for ratio analysis to study and evaluate
fiscal wellbeing of businesses by closely examining the historical performance and monetary
statements.
Comparative data and analysis can give an insight into the performance of the business over
a given period of time by comparing it with the industry standards. At the same time, it also
measures how well a business racks up against other businesses functioning in the same sector.
Ratio analysis involves evaluating the performance and financial health of a organization by
using data from current and historical financial statements. The data retrieved from the
statements is used to - compare a company's performance over time to assess whether the
company is improving or deteriorating; compare a company's financial standing with the
industry average; or compare a company to one or more other companies operating in its sector
to see how the company stacks up.

LIQUIDITY RATIO
CURRENT RATIO :
The current ratio is a liquidity ratio that measures a company’s ability to pay short term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current assets on its balance sheet
to satisfy its current debt and other payable.
The current ratio is called “current” because, unlike some other liquidity ratios, it
incorporates all current assets and current liabilities. The current ratio is sometimes called the
working capital ratio.

CURRENT RATIO = Current assets/Current Liabilities

1.CURRENT RATIO

42
 Year 2017 2018 2019 2020 2021
Current asset 3,075.81 3,762.88 4,904.58 4,909.00 4,250.88

Current 2,533.36 2,887.36 3,003.13 3,307.48 2,888.01

liabilities
Current ratio 1.21% 1.30% 1.63% 1.48% 1.47%

SHOWING THE CURRENT RATIO

Current Ratio
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2017 2018 2019 2020 2021

Year

INTERPERTAION :
It measures the short term financial obligations of the company from the year 2017 to
2021. There is a constant change in every year from 2017 to 2021. Highest stage of current ratio
is 2019. And the lowest stage is on 2017.

QUICK RATIO :
Quick ratio is a financial indicator of short-term liquidity or the ability to raise cash to pay
bills due in the next 90 days. Also known as acid-test ratio, quick ratio measures the ability of a
business to pay its short-term liabilities. Quick ratio is defined as quick assets divided by current
liabilities, and it is also known as the acid-test ratio and the quick liquidity ratio:

Quick Ratio = Current Assets - Inventories / Current Liabilities

2.QUICK RATIO
43
 Year 2017 2018 2019 2020 2021

Current 3,075.81 3,762.88 4,904.58 4,909.00 4,250.88

Assets
Inventories 776.03 742.30 1,002.99 1,460.45 1,273.90
Current 2,533.36 2,887.36 3003.13 3,307.48 2888.01
Liabilities
Quick Ratio 0.91% 1.05% 1.3% 1.04% 1.03%

SHOWING THE QUICK RATIO

Quick Ratio
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It measures the short term financial obligations of the company from the year 2017 to 2021.
In the year 2017 the return on assets of the company was 0.91%. Then there was sudden
increased in the year 2018 to 1.05% and in the year 2019 it was increased to 1.3%. But there was
a decrease in the year 2020 to 1.04%. In the year 2021 there on shareholder’s fund of the
company decrease to 1.03%. This shows that company isn’t stable and indicates the inefficient
utilization of assets and also reflects on efficiency of management.

SOLVENCY RATIO
DEBT EQUITY RATIO :
44
 Debt to equity ratio is computed to assess long term financial soundness of the enterprise.
The ratio express relationship between long term external equities, i.e., external debts and internal
equities (i.e., shareholder funds) of the enterprises.

Debt - Equity Ratio = Total Long Term Debt / Share Holder Fund

3.DEBT EQUITY RATIO

Year 2017 2018 2019 2020 2021
Total Long 78.15 74.29 73.96 110.02 104.09
Term Debt
Share Holder 2,984.82 3,513.96 3,743.15 4,218.32 4,984.70
Fund
Debt-Equity 0.03% 0.02% 0.02% 0.03% 0.02%
Ratio

SHOWING THE DEBT EQUITY RATIO

Debt Equity Ratio

0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows the Debt-Equity Ratio of the company from the years 2017 to 2021. In the year
2017 Debt-Equity Ratio of the company was 0.03%. Then there was decrease in the year of
2018 and 2019 to 0.02% and there was an sudden increase in the year 2020 it was to 0.3% . Then
there was decrease in Debt-Equity Ratio in the year 2021 to 0.2%.
45
PROPRIETARY RATIO :
Property ratio establishes relationship between the proprietors’ funds and total asset. This
ratio is important for credit as they can ascertain the portion of shareholders funds in the total
asset employed in the firm and the safety margin available to them. It is of particular interest to
creditors of a company as it helps them to ascertain the shareholders funds in the total assets of
the business.

Proprietary Ratio = Proprietary Funds / Total Assets

4.PROPRIETARY RATIO
Year 2017 2018 2019 2020 2021
Share Capital 33.08 33.08 33.08 33.08 33.08

Total Capital 5,596.33 6,475.61 6,820.24 7,635.82 7,976.80

and Liabilities
Proprietary 0.01% 0.01% 0.04% 0.04% 0.04%
Ratio

SHOWING THE PROPRIETARY RATIO

Proprietary Ratio
0.045
0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It measures the debt equity obligations of the company from the year 2017 to 2021.There

46
was a increase balance in the Proprietary Ratio. It has been maintaining a stable balance 2017
and 2018 to 0.01% in Then there was increase in the year of 2019 and 2021 to 0.4%. this
Proprietary Ratio shows the company is maintaining their working capital in the stable way to
meet their current obligations.

ACTIVITY RATIO
INVENTORY TURN OVER RATIO :
Inventory turnover ratio established relationship between cost of revenue from operations
and average inventory carried during that. Inventory turnover ratio is an activity as well as
efficiency ratio and it measured the number of times and enterprises sells and replace it inventory.
i.e., the number of times inventory was converted into sales during the period,Inventory.

Inventory Turnover Ratio = Revenue From Operation / Average Inventories

5. INVENTORY TURN OVER RATIO

Year 2017 2018 2019 2020 2021
Cost Revenue 5,020.67 5,359.13 6,350.51 6,589.24 5,864.51
from
Operation
Average 685.23 759.16 872.64 1,231.72 1,367.17
Inventory
Inventory 7.33% 7.06% 7.28% 5.35% 4.29%
Turn Over
Ratio

SHOWING THE INVENTORY TURN RATIO

47
 Inventory Turn Over Ratio
8
7
6
5
4
3
2
1
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
Inventory Ratio is in increased stage from 2017 -2021 . In the year of 2017 the materials
consumed ratio is 7.33%. In the year of 2019 the ratio is 7.28% and in 2020 is 5.35%.At last in
the year of 2020 and 2021 there is a sudden decrease in materials consumed ratio to 4.29%.

WORKING CAPITAL TURN OVER RATIO :

The Working capital Turnover is a ratio that measures how efficiently a company is using its
Working Capital to support sales and growth . Also known asset sales to working capital,working
capital turnover measures the relationship between the funds used to finance company’s
operations and the revenues a company generates to continue operation and turn a profit.

Working Capital Turnover Ratio = Revenue From Operation / working capital

6.WORKING CAPITAL TURN OVER RATIO
Year 2017 2018 2019 2020 2021
Revenue From 5,425.02 5,796.17 6,658.28 7,172.18 6,251.65
Operation
Working 542.45 875.52 1,901.45 1,601.52 1,362.87
Capital
Working 10.00% 6.62% 3.50% 4.48% 4.59%
Capital Turn

48
 Over Ratio

SHOWING THE WORKING CAPITAL TURN OVER RATIO

Working Capital Turn Over Ratio

12
10
8
6
4
2
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows the working capital turnover ratio of the company from the year 2017 to 2021. In the
year 2017 the working capital turnover ratio of the company was 10.00% . Then there was a
decrease in the year 2018 to 6.62% and in the year 2019 it was to 3.50%. But there is a decrease
in working capital turnover of the company in the year 2021 to 4.59% . This shows that company
isn’t stable and indicates the inefficient utilization of assets and also reflects on efficiency of
management.

FIXED ASSETS TURNOVER RATIO :

Fixed asset turnover ratio is an efficiency ratio that establishes the relationship between
revenue from operation and fixed assets (Net). This ratio is computed by dividing revenue from
operations by Net fixed assets.

Fixed Asset Turnover Ratio = Revenue From Operation / Net Fixed Assets

7.FIXED ASSET TURN OVER RATIO

Year 2017 2018 2019 2020 2021
Revenue From 5,425.02 5,796.17 6,658.28 7,172.18 6,251.65
Operation
49
 Fixed Assets 206.76 208.94 267.16 325.91 315.22
Fixed Assets 26.24% 27.74% 24.92% 22.01% 19.83%
Turn Over
Ratio

SHOWING THE FIXED ASSET TURN OVER RATIO

Fixed Asset Turn Over Ratio

30

25

20

15

10

0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
Fixed asset turnover ratio is in increased stage from 2017 -2018 . In the year of 2019 the
Fixed asset turnover ratio ratio is 24.92%. In the year of 2020 the ratio is 22.01% and in 2021 is
19.83% . At last in the year of 2020 and 2021 there is a sudden decrease in materials consumed
ratio to19.83%.

ASSETS TURN OVER RATIO :

The asset turnover ratio measures the efficiency of a company's assets in generating revenue
or sales. It compares the dollar amount of sales (revenues) to its total assets as an annualized
percentage. Thus, to calculate the asset turnover ratio, divide net sales or revenue by the average
total assets.
Assets Turn Over Ratio = Net Sales / Average Total Assets

8.ASSETS TURN OVER RATIO

Year 2017 2018 2019 2020 2021

50
 Sales 5,410.36 5,808.77 6,693.19 7,205.79 6,377.97
Average Total 5,032.86 6,035.97 6,647.93 7,228.03 7,806.31
Assets
Asset Turn 1.08% 0.96% 1.01% 1.00% 0.82%
Over Ratio

SHOWING THE ASSETS TURN OVER RATIO

Assets Turn Over Ratio

1.2

0.8

0.6

0.4

0.2

0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows The asset turnover ratio of the company from the year 2017 to 2021. In the year
2017 the ratio of the company was1.08%. Then there was decrease in the year 2018 to 0.96% and
in the year 2019 it was increase to 1.01%.In the year 2020 it has decreased to 1.00%. this shows
in the year 2021 that company is having a lesser value compared to other years

OWNED CAPITAL TURN OVER RATIO :

Capital turnover is the measure that indicates an organization’s efficiency about the utilization
of capital employed in the business, and it is calculated as a ratio of total annual turnover divided
by the total amount of stockholder’s equity (also known as net worth) and the higher the ratio, the
better is the utilization of capital employed.
Owned Capital Turn Over Ratio = Net Sales / Share Holder Fund

9.OWNED CAPITAL TURN OVER RATIO

51
 Year 2017 2018 2019 2020 2021
Sales 5,410.36 5,808.77 6,693.19 7,205.79 6,377.97
Share Holder 2,984.82 3,513.96 3,743.15 4,218.32 4,984.70
Fund
Owned 1.81% 1.65% 1.79% 1.71% 1.28%
Capital Turn
Over Ratio

SHOWINGS THE OWNED CAPITAL TURN OVER RATIO

OWNED CAPITAL TURN OVER RATIO

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows the Owned Capital Turn Over Ratio from the year 2017 to 2021.In the year 2017 the
Owned Capital Turn Over Ratio was 1.81%. In the year 2018 it decreases to 1.65% and
increases in 2019 to 1.79%. Then was an sudden decrease in the year 2020 to 1.71% . In the year
2021 the turn on shareholder’s fund of the company decreases to 1.28%. this shows that the
company isn’t stable an indicates the efficient utilization of Assets and also reflect on efficiency
of management.

EXPENSES RATIO

52
MATERIAL’S CONSUMED RATIO :
Material consumption it refers to the amount of materials (in terms of weight) used in the
economy, i.e. materials extracted or harvested in the country, plus materials and products
exported.

Material’s Consumed Ratio = Cost of Materials Consumed / Revenue From

Operation
10.MATERIAL’S CONSUMED RATIO
Year 2017 2018 2019 2021
Cost of 1,678.27 1,764.35 2,830.60 2,617.72
Material
Consumed
Revenue From 5,425.02 5,796.17 6,658.28 6,251.65
Operation
Material 0.31% 0.30% 0.43% 0.42%
Consumed
Ratio

SHOWING THE MATERIAL’S CONSUMED RATIO

Material Consumed Ratio

0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2017 2018 2019 2020 2021

Year

53
INTERPERTATION :
Material Consumed ratio is in fluctuating stage it differs from each year from 2017 – 2021.
There is a constant change in every year from 2017 to 2021. Highest stage of Material Consumed
ratio is2019 and 2020. And the lowest stage is on 2018.

FINANCE COST RATIO :

This ratio informs about the share of financial costs expenses in the value of revenues from
sales, thus it indicates which part of revenues from sales is used for covering the financial
expenses mainly interest.
Finance Cost Ratio = Finance Cost / Revenue From Operation

11.FINANCE COST RATIO

Year 2017 2018 2019 2020 2021
Finance Cost 9.66 7.50 22.93 8.84 19.10
Revenue From 5,425.02 5,796.17 6,658.28 7,172.18 6,251.65
Operation
Finance Cost 0.17% 0.12% 0.34% 0.12% 0.30%
Ratio

SHOWING THE FINANCE COST RATIO

Finance Cost Ratio

0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2017 2018 2019 2020 2021
Year

54
INTERPERTATION :
It shows the Finance Cost Ratio of the company from the year 2017 to 2021. In the year 2017
the Finance Cost Ratio of the company was 0.17%. Then there was a drastic increase in the year
2019 to 0.34% and 2021 to 0.30% to indicates more trading.

EMPLOYEE BENEFIT EXPENSE RATIO :

It is a financial metric that professionals use to assess the costs and benefits of a project to
determine its viability. This means that the cash flow from the project is more than the cost of the
project, so the project is a good financial consideration.

Employee Benefit Expense Ratio = Employee Benefit Expense / Revenue

From Operation

12.EMPLOYEE BENEFIT EXPENSE RATIO

Year 2017 2018 2019 2020 2021
Employee 406.55 422.30 488.75 521.19 465.44
Benefit
Expense
Revenue From 5,425.02 5,796.17 6,658.28 7,172.18 6,251.65
Operation
Employee 0.07% 0.07% 0.07% 0.07% 0.07%
Benefit
Expense Ratio

SHOWING THE EMPLOYEE BENEFIT RATIO

55
 Employee Benefit Ratio
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows the Employee Benefit Expense ratio of the company from the year 2017 to 2021.
In the year 2017 the Employee Benefit Expense ratio of the company was All the year’s 2017 to
2021 0.07% Same benefit. This shows that company isn’t stable and indicates the inefficient
utilization of assets and also reflects on efficiency of management.

DEPRECIATION AND AMORTIZATION EXPENSE RATIO :

Amortization and depreciation are two methods of calculating the value for business assets
over time. Amortization is the practice of spreading an intangible asset's cost over that asset's
useful life. Depreciation is the expensing of a fixed asset over its useful life.

Depreciation & Amortization Expenses Ratio = Depreciation &

Amortization Expenses / Revenue From Operation

13.DEPRECIATION AND AMORTIZATION EXPENSE RATIO

Year 2017 2018 2019 2020 2021
Depreciation 18.12 19.23 19.71 28.56 29.83
&

56
 Amortization
Expense
Revenue From 5,425.02 5,796.17 6,658.28 7,172.18 6,251.65
Operation
Depreciation 0.03% 0.03% 0.02% 0.03% 0.04%
&
Amortization
Expense Ratio

SHOWING THE DEPRECIATION AND AMORTIZATION EXPENSE

RATIO

Depreciation And Amortization Expense Ratio

0.045
0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
The table is in increasing manner from 2017-2021.In 2017 and 2018 it was around in 2018
to 0.03% and then there is a slight decrease in 2019 to 0.2%. And there is drastic change in 2020
to 0.03%. Sudden high in the year of 2021 to 0.04%

RETURN ON ASSETS :
57
 This ratio shows the relationship between the net profit and total assets. The ratio is computed
by dividing net profit after tax by total assets. The ratio is computed to ascertain whether the
investment in assets have generated adequate net profit.

Return on Assets = Profit After Tax / Total Assets

14.RETURN ON ASSETS
Year 2017 2018 2019 2020 2021
Profit After 486.19 501.23 464.47 595.09 570.30
Tax
Total Assets 5,596.33 6,475.61 6,820.24 7,635.82 7,976.80

Return on 0.09% 0.08% 0.07% 0.08% 0.07%

Assets

SHOWING THE RETURN ON ASSETS

Return On Assets
0.1
0.08
0.06
0.04
0.02
0
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows the Return On Assets of the company from the year 2017 to 2021. In the year 2017
the Return On Assets ratio of the company was 0.09%. Then there was a decrease in the year
2018 to 0.08%.In the year 2019 it was decreased to 0.07% Then there was increase in the year of
2020 0.08% and there was constant in Return On Assets ratio of the company in 2021 to 0.07%.

58
DEBT TURN OVER RATIO:
Debtor's turnover ratio is also known as Receivables Turnover Ratio, Debtor's Velocity and
Trade Receivables Ratio. It is an activity ratio that finds out the relationship between net credit
sales and average trade receivables of a business.

Debt Turn Over Ratio = Revenue From Operation / Average Trade Receivables

15.DEBT TURN OVER RATIO

Year 2017 2018 2019 2020 2021
Revenue From 5,425.02 5,796.17 6,658.28 7,172.18 6,251.65
Operation
Average Trade 1,187.97 1,277.05 1,394.84 1,431.94 1,452.28
Receivable
Debt Turn 4.57% 4.54% 4.77% 5.01% 4.30%
Over Ratio

SHOWING THE DEBT TURN OVER RATIO

Debt Turn Over Ratio

5.2

4.8

4.6

4.4

4.2

3.8
2017 2018 2019 2020 2021

Year

INTERPERTATION :
It shows the Debt Turn Over Ratio of the company from the year 2017 to 2021. In the year
2017 the Debt Turn Over Ratio of the company was 4.57%. Then there was decrease in the year
59
2018 to 4.54% and in the year 2019 it was increase to4.77%. In the year 2020 it has increased to
5.01% . In the year 2021 the Debt Turn Over Ratio of the company decreases to 4.30%. This
shows in the year 2021 that company is having a lesser debtor compare to other year.

CHAPTER - 4
STATISTICAL ANALYSIS

TREND ANALYSIS
Trend analysis is a technique used in technical analysis that attempts to predict future stock
price movements based on recently observed trend data. Trend analysis is based on the idea that
what has happened in the past gives traders an idea of what will happen in the future.Trend is the
direction that prices are moving in, based on where they have been in the past. Trends are made
up of peaks and troughs. It is the direction of those peaks and troughs that constitute a market’s
trend.

TYPES OF TREND:

a) UPTREND :
An uptrend or bull market is when financial markets and assets – as with the broader economy
level – move in the upward directions and keep increasing prices of the stock or the assets or
even the size of the economy over the period.

b) DOWNTREND:
A downtrend or bear market is when financial markets and asset prices – as with the broader
economy level – move in the downward direction and prices of the stock or the assets or even the
size of the economy keep on decreasing over time.

c) SIDEWAYS/HORIZONTAL TREND:
A sideways/horizontal trend means assets prices or share prices – as with the broader economy
60
level – are not moving in any direction; they are moving sideways, up for some time, then down
for some time.

SALES TREND ANALYSIS :

Sales trend analysis is the review of historical revenue results to detect patterns. It is a useful
budgeting and financial analysis method that can indicate the onset of changes in the near-term
revenue growth rates of a business. It is rarely adequate to simply plot the total sales of a
business on a trend line and expect to obtain any significant information from it. Most
organizations sell many products to a variety of customers, and in many regions, which means
that sales can be broken down into a number of sub-groups and then reviewed on a trend line.

TABLE SHOWING THE SALES TREND

Year Sales(y) X XY Trend
2
X
s Value
2017 5,410.36 -2.00 4.00 5,632.77
-10820.72
2018 5,808.77 -1.00 1.00 5,965.99
-5808.77
2019 6,693.19 0.00 0.00 0.00 6,299.22
2020 7,205.79 1.00 1.00 6,632.44
7205.79
2021 6,377.97 2.00 4.00 6,965.66
12755.94
N=5 ∑X=0.0 ∑X2=10.0 31,496.0
∑Y=31,496.0 ∑XY=3332.2
8 0 0 4 8

SHOWING THE SALES TREND

61
 8,000.00
Sales Trend
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2017 2018 2019 2020 2021
SALES

INTERPRETATION :
The above chart shows the sales trend from the year 2017 to 2021. The net sales 2017 to
2020 it increasing, after the 2021.Therefore, Sales trend Shows the trend reduced.

NET PROFIT TREND ANALYSIS :

The net profit margin, or simply net margin, is equal to how much net income or profit is
generated as a percentage of revenue. Net profit margin is the ratio of net profits to revenues for
a company or business segment. Net profit margin measures how much net income is generated
as a percentage of revenues received.Net profit margin helps investors assess if a company's
management is generating enough profit from its sales and whether operating costs and overhead
costs are being contained.Net profit margin is one of the most important indicators of a
company's overall financial health.

TABLE SHOWING NET PROFIT TREND ANALYSIS

Year Net X XY Trend
2
X
s profit(Y) Value
2017 486.19 -2.00 4.00
-972.38 389.30
2018 501.23 -1.00 1.00
-501.23 456.38
2019 464.47 0.00 0.00 0.00
523.46
2020 595.09 1.00 1.00
595.09 590.54
62
 2021 570.30 2.00 4.00
1140.60 657.62
N=5 ∑Y=2,617.2 ∑X=0.0 ∑X2=10.0 ∑XY=268.0 2,617.2
8 0 0 8 8

SHOWING THE NET PROFIT ANALYSIS

Net Profit
700
600
500
400
300
200
100
0
2017 2018 2019 2020 2021

NET PROFIT

INTERPRETATION :
The above chart shows the Net Profit trend from the year 2017 to 2021. The net profit 2017
to 2018 it increasing, after 2018 to 2021 it started shrinking. Therefore, net profit trend reduced.

WORKING CAPITAL TREND ANALYSIS :

Working capital provides very important information about the financial condition of a
company for both investors and managements. For investors, it helps them gauge the ability for a
company to get through difficult financial periods. Whereas, for management members, it helps
them better foresee any financial difficulties that may arise. In conclusion, it is very important for
a company to keep enough working capital to handle any unpredictable difficulties.

TABLE SHOWING WORKING CAPITAL TREND ANALYSIS

Year Working X XY Trend
2
s Capital(Y) X Value
2017 542.45 -2.00 4.00 783.39
-1084.90
2018 875.52 -1.00 1.00 1,020.08
-875.52
63
 2019 1,901.45 0.00 0.00 0.00 1,256.76
2020 1,601.52 1.00 1.00 1,493.45
1601.52
2021 1,362.87 2.00 4.00 1,730.13
2725.74
N=5 ∑Y=6,283.8 ∑X=0.0 ∑X2=10.0 ∑XY=2366.8 6,283.8
1 0 0 4 1

SHOWING WORKING CAPITAL TREND ANALYSIS

Working Capital Trend

2000
1800
1600
1400
1200
1000
800
600
400
200
0
2017 2018 2019 2020 2021

WORKING CAPITAL

INTERPRETATION :
The above chart shows the working capital trend from the year 2017 to 2021. The net sales
2017 to 2020 it increasing, after the 2021.Therefore, working capital trend Shows the trend
reduced.

NET WORTH TREND ANALYSIS :

Is a concept applicable to individuals and businesses as a key. A measure of how much an
entity is worth consistent increase in net worth indicates good financial health; conversely, net
worth may be depleted by annual operating losses or a substantial decrease in asset values
relative to liabilities.

TABLE SHOWING NET WORTH TREND ANALYSIS

64
 Year Net X XY Trend
2
s Worth(Y) X Value

2017 2,984.82 -2.00 4.00

-5969.64 2,844.07
2018 3,513.96 -1.00 1.00
-3513.96 3,366.53
2019 3,743.15 0.00 0.00 0.00
3,888.99
2020 4,218.32 1.00 1.00
4218.32 4,411.45
2021 4,984.70 2.00 4.00
9969.40 4,933.91
N=5 ∑Y=19,444.9 ∑X=0.0 ∑X2=10.0 ∑XY=4704.1 19,444.9
5 0 0 2 5

SHOWING NET WORTH TREND

Net Worth Trend Analysis

6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2017 2018 2019 2020 2021

NET WORTH TREND

INTERPRETATION :
The above chart shows the Net Worth trend from the year 2017 to 2021. The Net Worth in
2017 to 2020 it increasing, after 2020 to 2021 there is a sudden increase to 4,933.91. Therefore,
Net Worth trend increased.

DIVIDEND TREND :
Dividend displays the annual dividend payment history of the company along with the
calendar period for which the dividend is proposed. Stable or increasing dividend payments over
time demonstrate management's confidence in the company's future prospects and are hence
65
preferred while a history of dividend cuts is a drawback.

SHOWING DIVIDEND TREND ANALYSIS

Years Dividend(Y) X XY Trend
2
X
Value
2017 86.03 -2.00 4.00
-172.06 41.58
2018 115.81 -1.00 1.00
-115.81 80.68
2019 132.35 0.00 0.00 0.00
119.78
2020 132.35 1.00 1.00
132.35 158.88
2021 132.35 2.00 4.00
264.70 197.98
N=5 ∑Y=598.89 ∑X=0.00 ∑X2=10.00 ∑XY=109.18 598.89

SHOWING THE DIVIDEND TREND

Dividend Trend
250

200

150

100

50

0
2017 2018 2019 2020 2021

DIVIDEND TREND

INTERPRETATION :
The above chart shows the Dividend trend from the year 2017 to 2021. The net sales 2017
to 2020 it increasing, after the 2021.Therefore, Dividend trend Shows the trend reduced.

66
 CORRELATION :

Correlation, in the finance and investment industries, is a statistic that measures the
degree to which two securities move in relation to each other. Correlations are used in
advanced portfolio management, computed as the correlation coefficient, which has a
value that must fall between -1.0 and +1.0.Correlation is a statistic that measures the
degree to which two variables move in relation to each other.In finance, the correlation
can measure the movement of a stock with that of a benchmark index, such as the S&P
500.Correlation measures association, but doesn't show if x causes y or vice versa, or if
the association is caused by a third–perhaps unseen–factor.
The correlation coefficient is a value that indicates the strength of the relationship
between variables. The coefficient can take any values from -1 to 1. The interpretations
of the values are:

1) Perfect negative correlation. (-1)

The variables tend to move in opposite directions (i.e., when one variable increases, the
other variable decreases).

2) No correlation. (0)
The variables do not have a relationship with each other.

3) Perfect positive correlation. (1)

67
 The variables tend to move in the same direction (i.e., when one variable increases, the
other variable also increases).

1.SALES & NET PROFIT CORRELATION :

r= n(∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2)

SHOWING THE SALES AND NET PROFIT CORRELATION

YEARS SALES NET X^2 Y^2 XY
(X) PROFIT
(Y)
2017 5,425.02 486.19 2,94,30,842 236381 26,37,590.47
2018 5,796.17 501.23 3,35,95,586.67 251232 29,05,214.29
2019 6,658.28 464.47 4,43,32,692.56 215732 30,92,571.31
2020 7,172.18 595.09 5,14,40,165.95 354133 42,68,092.6
2021 6,251.65 570.30 3,90,83,127.72 325242 35,65,316
TOTAL 31,303.30 2,617.28 19,78,82,414.9 13,82,718.81 16,468,784.67
0

Correlation (r) = 414422.3045 = 0.006263

66165336.77

INTERPRETATION :
The above data shows the sales and net profit correlation for 2017 – 2021 and the
correlation between sales and net profit is 0.006263. There is very high degree of
positive correlation so the trend moves in the same direction.

68
2.SALES & DIVIDEND CORRELATION :

r= n(∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2)

SHOWING THE SALES AND DIVIDEND CORRELATION

YEAR SALE DIVIDEN X^2 Y^2 XY
S S (X) D (Y)
2017 5,425.02 86.03 2,94,30,842 7401.16 4,66,714.47
2018 5,796.17 115.81 3,35,95,586.6
13411.95 6,71,254.44
7
2019 6,658.28 132.35 4,43,32,692.5
17516.52 8,81,223.35
6
2020 7,172.18 132.35 5,14,40,165.9 17516.52 9,49,238.2
5
2021 6,251.65 132.35 3,90,83,127.7 17516.52 8,27,405.87
2
TOTAL 31,303.3 598.89 73,362.6 3,795,836.1
19,78,824,14.
9 8 7

Correlation (r) = 231947.547 = 0.015219086

15240569.63

INTERPRETATION :
The above data shows the sales and dividend correlation for 2017 – 2021 and the
correlation between sales and net profit is 0.015219086. There is very high degree of
positive correlation so the trend moves in the same direction.

3. NET PROFIT & DIVIDEND CORRELATION :

r= n(∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2)

69
 SHOWING THE NET PROFIT AND DIVIDEND CORRELATION
YEAR NET DIVIDEN X^2 Y^2 XY
S PROFIT(X D (Y)
)
2017 486.19 86.03 236380.72 7401.16 41826.93
2018 501.23 115.81 251231.51 13411.95 58047.45
2019 464.47 132.35 215732.38 17516.52 61472.60
2020 595.09 132.35 354132.11 17516.52 78760.16
2021 570.30 132.35 325243.9 17516.52 75479.21
TOTAL 2,617.28 598.89 13,82,718.8 73,362.6 3,15,586.3
1 8 4

Correlation (r) = 10468.8958 = 0.008217436

1273985.643
INTERPRETATION :
The above data shows the net profit and dividend correlation for 2017 – 2021 and the
correlation between dividend and net profit is 0.008217436. There is very high degree of
positive correlation so the trend moves in the same direction.

4.EARNINGS PER SHARE&DILUTED EARNINGS PER

CORRELATION :

r= n(∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2)

SHOWING THE EPS AND DPS CORRELATION

YEARS EPS (X) DPS (Y) X^2 Y^2 XY
2017

70
 2018
2019
2020
2021
TOTAL

Correlation (r) =

INTERPRETATION :
The above data shows the EPS and DPS correlation for 2017- 2021. The correlation
between EPS and DPS is 0.009659. There is degree of positive correlation so the trend
moves in the same direction.

5. WORKING CAPITAL & NET PROFIT CORRELATION :

r= n(∑xy) – (∑x) (∑y)

√(n∑x2 - ∑x2) (n∑y2 - ∑y2)

SHOWING THE WORKING CAPITAL AND NET PROFIT

CORRELATION

YEAR WORKIN NET X^2 Y^2 XY

S G PROFI
CAPITAL T (Y)
71
 (X)
2017 542.45 486.19 294252 236381 263733.77
2018 875.52 501.23 766535.27 251232 438836.89
2019 1,901.45 464.47
36,15,512.1 215732 8,83,166.48
2020 1,601.52 595.09
25,64,866.31 354132 9,53,048.54
2021 1,362.87 570.30
18,57,414.64 325242 7,77,244.76
TOTAL 6,283.81 2,617.28 90,98,580.3 13,82,718.8 33,16,030.4
2 1 3

Correlation (r) = 133661.9352 = 0.009421

14187757.05

INTERPRETATION :
The above data shows the Working Capital and net profit correlation for 2017 to 2021 and
the correlation between Working Capital and net profit is 0.009421. Three is degree of negative
correlation. So the trend moves in the same direction.

CHAPTER – 5
FINDINGS AND SUMMARY

It measures the short term financial obligations of the company from the year 2017 to
2021. There is a constant change in every year from 2017 to 2021. Highest stage of current ratio
is 2019. And the lowest stage is on 2017.
It measures the short term financial obligations of the company from the year 2017 to 2021.
In the year 2017 the return on assets of the company was 0.91%. Then there was sudden
increased in the year 2018 to 1.05% and in the year 2019 it was increased to 1.3%. But there was
a decrease in the year 2020 to 1.04%. In the year 2021 there on shareholder’s fund of the
company decrease to 1.03%. This shows that company isn’t stable and indicates the inefficient
utilization of assets and also reflects on efficiency of management.
72
 It shows the Debt-Equity Ratio of the company from the years 2017 to 2021. In the year
2017 Debt-Equity Ratio of the company was 0.03%. Then there was decrease in the year of
2018 and 2019 to 0.02% and there was an sudden increase in the year 2020 it was to 0.3% . Then
there was decrease in Debt-Equity Ratio in the year 2021 to 0.2%.
It measures the debt equity obligations of the company from the year 2017 to 2021.There was a
increase balance in the Proprietary Ratio. It has been maintaining a stable balance 2017 and 2018 to 0.01%
in Then there was increase in the year of 2019 and 2021 to 0.4%. this Proprietary Ratio shows the
company is maintaining their working capital in the stable way to meet their current obligations.
Inventory Ratio is in increased stage from 2017 -2021 . In the year of 2017 the materials consumed
ratio is 7.33%. In the year of 2019 the ratio is 7.28% and in 2020 is 5.35%.At last in the year of 2020 and
2021 there is a sudden decrease in materials consumed ratio to 4.29%

It shows the working capital turnover ratio of the company from the year 2017 to 2021. In the
year 2017 the working capital turnover ratio of the company was 10.00% . Then there was a
decrease in the year 2018 to 6.62% and in the year 2019 it was to 3.50%. But there is a decrease
in working capital turnover of the company in the year 2021 to 4.59% . This shows that company
isn’t stable and indicates the inefficient utilization of assets and also reflects on efficiency of
management.
Fixed asset turnover ratio is in increased stage from 2017 -2018 . In the year of 2019 the Fixed asset
turnover ratio ratio is 24.92%. In the year of 2020 the ratio is 22.01% and in 2021 is 19.83% . At last in the
year of 2020 and 2021 there is a sudden decrease in materials consumed ratio to19.83%
It shows The asset turnover ratio of the company from the year 2017 to 2021. In the year
2017 the ratio of the company was1.08%. Then there was decrease in the year 2018 to 0.96% and
in the year 2019 it was increase to 1.01%.In the year 2020 it has decreased to 1.00%. this shows
in the year 2021 that company is having a lesser value compared to other years

It shows the Owned Capital Turn Over Ratio from the year 2017 to 2021.In the year 2017 the
Owned Capital Turn Over Ratio was 1.81%. In the year 2018 it decreases to 1.65% and
increases in 2019 to 1.79%. Then was an sudden decrease in the year 2020 to 1.71% . In the year
2021 the turn on shareholder’s fund of the company decreases to 1.28%. this shows that the
company isn’t stable an indicates the efficient utilization of Assets and also reflect on efficiency
of management.
Material Consumed ratio is in fluctuating stage it differs from each year from 2017 – 2021. There is a

73
 constant change in every year from 2017 to 2021. Highest stage of Material Consumed ratio is2019 and
2020. And the lowest stage is on 2018.
It shows the Finance Cost Ratio of the company from the year 2017 to 2021. In the year 2017
the Finance Cost Ratio of the company was 0.17%. Then there was a drastic increase in the year
2019 to 0.34% and 2021 to 0.30% to indicates more trading.
It shows the Employee Benefit Expense ratio of the company from the year 2017 to 2021.
In the year 2017 the Employee Benefit Expense ratio of the company was All the year’s 2017 to
2021 0.07% Same benefit. This shows that company isn’t stable and indicates the inefficient
utilization of assets and also reflects on efficiency of management.
The table is in increasing manner from 2017-2021.In 2017 and 2018 it was around in 2018
to 0.03% and then there is a slight decrease in 2019 to 0.2%. And there is drastic change in 2020
to 0.03%. Sudden high in the year of 2021 to 0.04%
It shows the Return On Assets of the company from the year 2017 to 2021. In the year 2017
the Return On Assets ratio of the company was 0.09%. Then there was a decrease in the year
2018 to 0.08%.In the year 2019 it was decreased to 0.07% Then there was increase in the year of
2020 0.08% and there was constant in Return On Assets ratio of the company in 2021 to 0.07%.

It shows the Debt Turn Over Ratio of the company from the year 2017 to 2021. In the year
2017 the Debt Turn Over Ratio of the company was 4.57%. Then there was decrease in the year
2018 to 4.54% and in the year 2019 it was increase to4.77%. In the year 2020 it has increased to
5.01% . In the year 2021 the Debt Turn Over Ratio of the company decreases to 4.30%. This
shows in the year 2021 that company is having a lesser debtor compare to other year.
The above chart shows the sales trend from the year 2017 to 2021. The net sales 2017 to 2020
it increasing, after the 2021.Therefore, Sales trend Shows the trend reduced.
The above chart shows the Net Profit trend from the year 2017 to 2021. The net profit 2017
to 2018 it increasing, after 2018 to 2021 it started shrinking. Therefore, net profit trend reduced.
The above chart shows the working capital trend from the year 2017 to 2021. The net sales 2017 to
2020 it increasing, after the 2021.Therefore, working capital trend Shows the trend reduced.
The above chart shows the Net Worth trend from the year 2017 to 2021. The Net Worth in
2017 to 2020 it increasing, after 2020 to 2021 there is a sudden increase to 4,933.91. Therefore,
Net Worth trend increased.
The above chart shows the Dividend trend from the year 2017 to 2021. The net sales 2017to

74
2020 it increasing, after the 2021.Therefore, Dividend trend Shows the trend reduced.
The above data shows the sales and net profit correlation for 2017 – 2021 and the correlation
between sales and net profit is 0.006263. There is very high degree of positive correlation so the
trend moves in the same direction.
The above data shows the sales and dividend correlation for 2017 – 2021 and the correlation
between sales and net profit is 0.015219086. There is very high degree of positive correlation so
the trend moves in the same direction.
The above data shows the net profit and dividend correlation for 2017 – 2021 and the
correlation between dividend and net profit is 0.008217436. There is very high degree of
positive correlation so the trend moves in the same direction.
The above data shows the Working Capital and net profit correlation for 2017 to 2021 and
the correlation between Working Capital and net profit is 0.009421. Three is degree of negative
correlation. So the trend moves in the same direction.

CONLUSION

I did my project about VOLTAS LIMITED. It is one of the largest companies in the country.
It has huge employees and has many branches in different places. I Did my project with the
help of the balance sheet, profit and loss and other details of the company. By doing this project
I was able to understand many things about a company, its growth and was able to learn a lot
practical about the company’s financial statement than the theoretical knowledge which we
learn in college.

It has huge employees and has many branches in different places. I Did my project with
the help of the balance sheet, profit and loss and other details of the company. By doing this
project I was able to understand many things about a company, its growth and was able to learn a
lot practical about the company’s financial statement than the theoretical knowledge which we
learn in college.
The company’s growth was less when it was started but now it has a drastic growth. The

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profit and loss of the company for the last five years have increased to decrease in the direct and
indirect expenses of the company and increase in the incomes of the company.
Thus, thanks to all my lecturers to Corporate Secretaryship department who have extended
their support. In addition, my sincere thanks to all staff of VOLTAS LIMITED. who have
helped me apart from their busy schedule of work? By doing this project I could able to
understand many about the Company’s financial statement than the theoretical knowledge. The
Company’s growth was less when it began and today it has a huge growth having a great
influence towards our Country’s economy.

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