FIRST DRAFT

ON
“FINANCIAL PERFORMANCE ANALYSIS OF OUTLOOK
PUBLISHING INDIA PVT. LTD.”
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

MS. SHIKHA DUA
Assistant Professor, RDIAS
SUBMITTED BY:
AKASH GHOSH
Enrolment No. 105155901722
BBA-V Semester
Batch 2022-25

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2015 Certified Institute
NAAC Accredited: A Grade (3rd Cycle), Category A+ Institution (by SFRC, Govt. of
NCT Delhi)
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085
 TABLE OF CONTENT

S.NO. PARTICULARS PAGE NO.

1. STUDENT'S DECLARATION ii

2. CERTIFICATE FROM FACULTY GUIDE iii

3. ACKNOWLEDGEMENT Iv

4. INTERNSHIP CERTIFICATE V

5. INTRODUCTION 1-10

6. REVIEW OF LITERATURE 11-12

7. RESEARCH METHODOLOGY 13

8. DATA ANALYSIS & INTERPRETATION 14-28

9. FINDINGS & CONCLUSION 29-30

10 REFERENCES 31

11. ANNEXURE 32-35

12. PLAGARISM REPORTS 36

2
 STUDENT'S DECLARATION

This is to certify that I have completed the project titled “FINANCIAL

PERFORMANCE ANALYSIS OF OUTLOOK PUBLISHING INDIA PVT.
LTD.” under the guidance of “Ms. Shikha Dua” in the partial fulfilment of the
requirement for the award of the degree of Bachelors in Business Administration
from Rukmini Devi Institute of Advanced Studies, New Delhi. It is also certified
that the project of mine is an original work and the same has not been submitted
earlier elsewhere.

Akash Ghosh,
Enrollment No. - 10515901722,
BBA-V,
M-B,

3
 CERTIFICATE FROM FACULTY GUIDE

This is to certify that the project titled “FINANCIAL PERFORMANCE

ANALYSIS OF OUTLOOK PUBLISHING INDIA PVT. LTD.” is an
academic work done by “Pratham” submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelors in Business Administration
from Rukmini Devi Institute of Advanced Studies, New Delhi, under my guidance
and direction.
To the best of my knowledge and belief, the data and information presented by him
in the project has not been submitted earlier elsewhere.

MS. SHIKHA DUA,

Assistant Professor, RDIAS

4
 ACKNOWLEDGEMENT

I would like to express my greatest appreciation to all individuals who have helped
and supported me throughout the project. I wish to thank my parents as well for
their undivided support that encouraged me, without whom I would not be able to
complete my project.
I’m thankful to the college management of Rukmini Devi Institute of Advanced
Studies for providing me an opportunity to do the project work and giving me all
the support and guidance, which made me complete the project duly.
Last but not the least; I would like to thank my mentor for this project, Ms. Shikha
Dua who gave her full effort in guiding me to achieve the goal as well as her
encouragement to maintain our progress on track. I would like to appreciate the
guidance given by other supervisors as well as the panels especially in our project
presentation that has improved our presentation skills by their comment and tips.

Akash Ghosh,
Enrollment No. - 10515901722,
BBA-V,
M-B,

5
INTERNSHIP CERTIFICATE

6
 CHAPTER 1
INTRODUCTION

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Financial Analysis and Management:

Financial management refers to the strategic planning, organising, directing, and controlling of
financial undertakings in an organisation or an institute. It also includes applying management
principles to the financial assets of an organisation. No business can plan its activities without
considering its financial resources.

The business functions of a finance department typically include planning, organizing,

accounting and controlling the company’s finance and to ensure intensive and economic use of
capital resources of the organization. Since business firms are profit seeking organizations, their
functions are to maximize the company’s wealth. Asset management, costing, budgeting, credit
management, debit management are the other functions of the finance department. Finance in
essence is considered with the acquisition and use of funds by a business firm. The main
objective of financial management is to control required funds for meeting short term and long-
term needs of business enterprise and to maximize the value of firm to its equity shareholders.

The financial statements have to be analysed and interpreted to have a clear understanding of the
profitability and financial position of business. Financial statements are prepared for decision
making. They play a dominant role in setting the framework of managerial decisions. But the
information provided by the financial statement is not an end in itself as no meaningful
conclusions can be drawn from these statements alone. However, the information provided by
the financial statement is of immense use in making decision through analysis and interpretation
of financial statement. It helps to summarise large quantities of financial data and to make
quantitative judgement about the firm’s financial performance. Financial performance analysis is
the process of identifying the financial strengths and weaknesses of the firm by properly
establishing the relationship between the items of balance sheet and profit and loss account. It
also helps in short term and long-term forecasting and growth can be identified with the help of
financial performance analysis. The dictionary meaning of analysis‟ is to resolve or separate a
thing in to its element or components parts for tracing their relation to the things as whole and to
each other.

About Financial Statements:

Financial statements are reports compiled by businesses that detail the company's financial
activities and health. Financial statements are often audited by government agencies and
accountants to ensure accuracy and for tax, financing, or investing purposes. The primary
financial statements of for-profit businesses include the balance sheet, income statement,
statement of cash flow, and statement of changes in equity. The financial statements are used by
investors, market analysts, and creditors to evaluate a company's financial health and earnings
potential. The three major financial statement reports are the balance sheet, income statement,
and statement of cash flows.

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Important Financial Statements Reports:

1. Balance sheet
2. Statement of Profit and Loss
3. Cash flow Statements
4. Financial Ratios

BALANCE SHEET is a financial statement that provides a snapshot of a company's financial

position at a specific point in time. It shows what the company owns (assets), what it owes
(liabilities), and the value of shareholders' equity. The balance sheet is one of the key financial
statements used by investors, analysts,and creditors to evaluate a company's financial health.

INCOME STATEMENT, also known as a profit and loss statement (P&L), is a financial
statement that provides a summary of a company's revenues, expenses, and profits or losses over
a specific period, such as a quarter or a year. It shows how the company's operations performed
financially and is crucial for assessing profitability and operational efficiency.

CASH FLOW STATEMENT is a financial statement that provides a detailed analysis of how a
company's cash is generated and used during a specific period. It breaks down the cash inflows
and outflows from operating, investing, and financing activities, offering insights into a
company's liquidity, solvency, and financial health.

FINANCIAL RATIOS are quantitative measures derived from a company's financial

statements that provide insights into its performance, financial health, and operational efficiency.
These ratios are used by investors, analysts, and management to make informed decisions.
Financial ratios can be categorized into several types, each focusing on different aspects of the
company's operations and financial status.

Significance of Financial Statements:

1. Decision-Making: They provide a detailed snapshot of a company's financial health,
helping stakeholders—such as investors, creditors, and management—make informed
decisions. Investors use financial statements to assess the potential for future growth and
profitability, while creditors evaluate the company's ability to repay loans.
2. Performance Evaluation: Financial statements help assess a company's performance over
time. By comparing current statements with historical data or industry benchmarks,
stakeholders can gauge whether the company is improving, stagnating, or declining.
3. Regulatory Compliance: Companies are required by law to prepare and publish financial
statements. These statements ensure transparency and accountability, helping to prevent
fraud and protect investors. Regulatory bodies, like the SEC in the U.S., use them to
monitor and enforce compliance with financial reporting standards.
4. Financial Health Analysis: They provide insights into a company's liquidity, solvency,
and profitability. Key metrics derived from financial statements, such as the current ratio,

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 quick ratio, debt-to-equity ratio, and return on equity, help assess whether a company is
financially stable.
5. Strategic Planning: Management uses financial statements to plan and strategize for the
future. Analyzing financial performance helps in setting goals, budgeting, and making
operational adjustments.
6. Valuation: When companies are involved in mergers, acquisitions, or fundraising,
financial statements are used to determine their valuation. They provide essential data to
appraisers and potential buyers or investors to understand the company's worth.
7. Creditworthiness Assessment: Lenders rely on financial statements to assess a company's
creditworthiness. This information helps them decide whether to grant credit and on what
terms.
Overall, financial statements are fundamental tools for evaluating and understanding a
company's financial position, performance, and potential.

COMPANY PROFILE:
Outlook Publishing (India) Private Limited is an unlisted private company incorporated on 23 April,
1992. It is classified as a private limited company and is located in Mumbai, Maharashtra. It's authorized
share capital is INR 132.50 cr and the total paid-up capital is INR 101.13 cr. Outlook Publishing (India)
Pvt. Ltd. started operations in 1995 as a division of Hathway Investments Private Limited, with the launch
of ‘Outlook’, a current affairs news magazine. In 2003, the division was demerged into a separate entity
Outlook Publishing (India) Pvt. Ltd. The Company is a part of the Rajan Raheja group which has interests
in diverse sectors including real estate and construction, automotive batteries, cement, ceramic tiles,
mutual funds, hospitality, media and entertainment. The group is valued at 3.5 billion INR. The company
corporate office situated in the South Delhi. Magazines from the Outlook Group. Outlook magazines
feature content from politics, sports, cinema, and stories of broad interests. By December 2018, Outlook
magazine's Facebook following had grown to over 12 lakh (1.2 million). Outlook is considered as India's
most vibrant current affairs and news magzine, it is well known for its bold and aggressive reporting.
From the launch of the magazine, it is known for raising questions many had in their minds but never
dared to ask. Outlook’s Transformation Outlook has been on the forefront of investigative reporting,
political analysis, trends in the society, giving voice to the powerless, breaking stories in sports and going
behind the scenes in entertainment for over 25 years.

Journalist Vinod Mehta was the Founder Editor-in-Chief of Outlook Magazine. He was associated with
the group till 2012. Indranil Roy is the current chief executive officer of the company. Now the magazine
and the website are all set to begin a new phase—to disrupt the way news is reported and presented in
India. It aims is to take a 360-degree view of news development and bring fresh insight into the clutter in
other publications and portals. Their idea is not to chase the breaking new, our intent is to look at news
from multiple perspectives. In the new Outlook, the focus is on politics, culture and society from the
prism of social issues like caste politics, education policies, history of protests, the danger of terrorism,
army action in Kashmir and the North East, inflation and jobs, the business of fashion. The Outlook
covers are an artistic representation curated by well-known artists and illustrators.

10
Business Model of the company. The outlook Group follows Subscription based business model
where they charge their customers for the product and services they avail on a recurring basis.
Here The Outlook Group gives the option to their customer to choose how long and how often
they wish to receive their product or services. They also get a chance to renew or cancel their
subscription. The Outlook group offer magazines such as Outlook Weekly, Outlook Business,
Outlook Traveller, Outlook Hindi and Outlook Money. The customer gets to choose the
magazine they desire and how long they wish to get the magazines delivered at their address.
Outlook in its new avatar is a longform platform, designed to set a perspective that should lead to
a well-informed conversation. It value it’s discerning readers and know they want credible
quality content. The newly designed Outlook India, digital platform is an extension of magazine.
they lead the magazine stories to the web with more aspects on the same topic that publish in the
magazine. They have additional sections on business and finance, sports, entertainment, travel
and other new sections on their digital platform.

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Profile of Print Media Industry:
Business Process of Print Media Industry:

Business operations in the printing and publishing industry involve a series of interconnected
processes that ensure the efficient production, distribution, and marketing of printed materials. It
begins with market research and analysis to identify target audiences and trends, followed by
content development, where writers, editors, and designers collaborate to create and refine
materials. Pre-press operations prepare the content for printing, including typesetting and
proofreading. The printing process involves selecting the appropriate methods, such as offset or
digital printing, while post-press operations handle finishing tasks like cutting and binding,
accompanied by quality control checks. Distribution and logistics ensure that printed materials
reach retailers or consumers, supported by effective sales and marketing strategies to promote
products. Customer service plays a crucial role in addressing inquiries and fostering loyalty,
while feedback collection helps drive continuous improvement. Finally, financial management
oversees budgeting and reporting to ensure sustainability and profitability. Together, these
processes form the backbone of operations in the industry, requiring effective management to
deliver high-quality products and maintain competitiveness in a dynamic market.

Print Media Industry in India:

When it comes to Indian media, it mainly consists of different types of communications of mass
media like television, radio, magazines, newspapers, and Internet bases websites or portals. In
India media is active since the late eighteenth century. Print media started from around 1780.
Here, media are majorly controlled by big, for-profit corporations, which reap their revenue from
advertising and subscriptions or by the sale of copyrighted material. According to government
records, as of 31st March 2018, India recorded more than 100,000 publications registered
with the Registrar of Newspapers for India. It has the second largest market for newspapers in
the entire world, with more than 240 million copies of daily newspapers reporting in circulation.
According to French NGO, Reporters without Borders, 2020 annual ranking report of countries
based upon the organization's assessment of its Press Freedom Index. Indian was ranked 142th
out of 180 countries, which was a drastic setback from the previous year's report.

The printing and publishing industry in India is a dynamic sector that plays a crucial role in
various economic activities, including publishing, packaging, and advertising. The print and
publishing industry in India comprises thousands of companies, ranging from large, established
publishers to small independent firms. Estimates suggest there are over 15,000 registered
publishing houses in the country. This includes large publishers like Penguin Random house
india & Hachette India etc., Digital Publishers, Regional Publishers, Self-Publishing Platforms
and Educational Publishers. The Indian printing industry is valued at approximately USD 30
billion and is expected to grow significantly due to increasing demand in packaging, digital
printing, and publishing. The growth rate is projected to be around 10-15% annually, driven by
factors like urbanization, rising literacy rates, and the expansion of e-commerce. The printing
industry in India contributes significantly to the country’s GDP, The Indian printing industry is
estimated to be worth around USD 30 billion. While exact figures fluctuate, the printing industry

12
generally contributes approximately 2-3% to India's GDP. This includes various segments like
commercial printing, packaging, and publication printing. The printing industry is a significant
source of employment, providing jobs to millions of people, directly and indirectly, including
skilled and unskilled labor. The printing industry supports and is supported by other sectors such
as publishing, packaging, advertising, and education, creating a broader economic impact. With
the rise of e-commerce and the demand for packaging solutions, the industry is expected to grow
at a CAGR of around 10-15%, further enhancing its contribution to GDP in the coming years.
According to Statista Research Department, the value of the print industry across India was
estimated to be over 190 billion Indian rupees in 2020. This was expected to go up to over 258
billion rupees by 2023, indicating a compound annual growth of just around eleven percent.

Print Media Global Market Share:

Others
27%
USA
33%

India
4%

China
UK
18%
6%
Germany
12%

Figure. 1.1.

Figure showing a comparison in market share of countries, where USA remains the dominant
player in terms of market size and revenue in print media. Factors contributing to this include a
large consumer market, significant investments in publishing, and a strong advertising sector.
China is considered the second largest player in this industry, due to its vast population, growing
consumer base, and significant investments in publishing and printing. Germany is typically
regarded as the third-largest market in the global print media industry. The country's strong
publishing sector, which includes a variety of newspapers, magazines, and books, contributes to
its significant position in the print media landscape. The UK has a well-established publishing
sector, with a diverse range of newspapers, magazines, and other print products contributing to
its market size. India holds the fifth position in this industry and with a vast growth potential the
Indian print media sector is characterized by a diverse range of languages and a growing
readership, particularly in regional publications.

Print Media Global Market Value Rise:

(Figure 1.2.) shows an estimated increase in market value of print media industry over the last 5
years along with the growth rate. These figures are hypothetically approximate’s and based on
trends in the print media industry. The data shows a gradual increase in market value, reflecting a
growing demand for printed materials, especially in educational and digital segments. The rise of
digital publishing has contributed to a shift in how content is consumed, yet traditional print

13
remains significant. The industry saw a notable recovery in 2022 as demand for printed materials
surged following pandemic-related disruptions. In July 2023, Crisil predicted a 13-15% revenue
growth for Indian print media, to ₹30,000 crore, this financial year, driven by higher corporate
and government ad spending.

2019 2020 2021 2022 2023

Market Value (Estimated) Growth Rate (%)

Figure. 1.2.

Market Demand and Supply in Print Industry:

The market demand in the Indian print and publishing industry is driven by diverse reading
preferences, with significant interest in genres like fiction, non-fiction, and educational content.
The rise of digital formats, such as e-books and audiobooks, reflects changing consumer habits,
especially among younger audiences. Educational materials remain in high demand due to the
expanding education sector. Additionally, the trend of self-publishing has led to an influx of new
titles, while growing interest in regional literature is fostering demand for vernacular content. On
the supply side, a wide range of players, from large multinational publishers to independent
firms, contribute to the market. The growth of self-publishing platforms has significantly
increased the availability of content. Technological advancements in printing and digital tools
have streamlined production, while enhanced distribution channels, including e-commerce
platforms, allow for greater reach.

2019 2020 2021 2022 2023

Market Demand (Estimated) Market Supply (Estimated)

(Figure. 1.2.)

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(Figure. 1.2.) Shows comparative rise in Estimated market demand and market supply over the
last 5 years. Demand has steadily increased, reflecting the growth in reading habits, educational
needs, and digital content consumption. But during the year 2020, the market demand and supply
chain felled suddenly due to Covid Pandemic over the globe. Supply has also risen, but it hasn’t
kept pace with demand, leading to a consistent demand-supply gap. Supply chain disruptions,
especially during the pandemic, affected the availability of materials and production capacity.

Competition in Print Media Industry:

The printing and publishing industry faces various types of competition, including direct
competition among firms within the same segment, such as commercial printing and book
publishing. Indirect competition arises from digital media, like e-books and audiobooks, which
serve as substitutes for traditional print. Technological advancements also play a role, as
companies adopting new printing technologies gain a competitive edge. Additionally, niche
markets and customization opportunities allow specialized firms to differentiate themselves.
Quality of print and service, along with brand loyalty, further influence competitive dynamics in
the industry. The level of competition in the Indian print and publishing industry is quite high
and multifaceted. The print and publishing industry in India is a rapidly evolving sector
characterized by intense competition across various market segments. Traditional publishers face
challenges from self-publishing platforms, which empower authors to publish independently, and
the growing popularity of e-books and audiobooks. Meanwhile, magazines and newspapers are
increasingly shifting to digital formats to capture online readership, creating fierce competition
with digital news platforms. The rise of niche publishers catering to specific interests, along with
sustainability concerns influencing consumer choices, further diversifies the landscape.
Additionally, new startups and international publishers are entering the market, intensifying the
competition for audience attention. The emergence of e-commerce and digital bookstores has
transformed distribution channels, while social media and influencer marketing strategies have
become essential for reaching wider audiences. The international competition in the printing and
publishing industry involves major global players like Penguin Random House and
HarperCollins, which dominate the global market with diverse offerings.

Challenges in Print Media Industry:

The printing and publishing industry faces several significant challenges that impact its
operations and profitability. Digital disruption from the rise of e-books and online content has
led to declining demand for traditional print materials, forcing companies to adapt their business
models. Cost pressures from fluctuating raw material prices, such as paper and ink, alongside
increasing labor costs, strain profit margins. Additionally, growing environmental concerns
necessitate the adoption of sustainable practices, which can increase production costs. Intense
competition from both traditional publishers and digital platforms complicates market share
maintenance, while copyright and piracy issues threaten revenue. Changing consumer
preferences for instant access to content require rapid adaptation. Supply chain disruptions,
particularly following events like the COVID-19 pandemic, can lead to production delays and
increased costs. Companies must also invest in keeping up with technological advancements,
which can be a barrier for smaller firms, and face skill shortages in the labor market. Finally,
navigating complex regulations related to publishing, copyright, and environmental standards

15
adds further hurdles. Overall, these challenges necessitate continuous innovation and adaptation
to remain competitive in a rapidly evolving landscape.

Key Drivers of Print Media Industry:

1. Technological Advancements: The rise of digital media has profoundly impacted print
circulation and advertising revenue. Technological advancements are a major driver for
the print media industry as they enhance production efficiency and reduce costs.
Innovations like digital printing enable shorter print runs and personalized content,
appealing to niche markets. Automation in publishing processes streamlines operations,
allowing for faster turnaround times. Additionally, the integration of digital platforms
complements print, expanding reach and engagement through online distribution.
Overall, embracing technology helps print media adapt to changing consumer preferences
and maintain competitiveness in a digital landscape.

2. Consumer Preferences: Changes in reader preferences, particularly among younger

audiences who favor quick, easily accessible information, influence print media's
relevance. Younger audiences tend to prefer digital content over print. However, certain
demographics still value print, particularly for specific genres like local news or niche
magazines.

3. Cost of Production: The costs associated with printing, distribution, and paper have a
significant impact on profitability. Economic fluctuations can affect these costs,
influencing overall industry health.

4. Quality of Content: High-quality, investigative journalism and unique editorial voices can
differentiate print media. Strong content attracts loyal readers, which is essential for
sustaining subscriptions and sales.

5. Niche Markets: Some print publications have found success by targeting niche audiences
with specialized content. This approach can create loyal readerships that value in-depth
coverage.

6. Sustainability Trends: As environmental concerns grow, print media is increasingly

focusing on sustainable practices, such as using recycled materials and reducing waste,
which can influence consumer perceptions and operational costs. Increasing awareness of
environmental issues has led many consumers to prefer sustainably produced print media.
Publishers are adopting eco-friendly practices to meet these demands.

7. Regulatory Environment: Changes in regulations related to media ownership, advertising

standards, and distribution can impact how print media operates and competes. Legal
frameworks governing copyright and intellectual property can influence how print media
operates, especially in terms of content usage and distribution. Some governments
provide subsidies for local journalism, impacting the sustainability of print media in
certain regions.

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 8. Cultural Trends: Shifts in societal values, including the resurgence of interest in tangible
media, crafts, and localism, can create opportunities for print media to reconnect with
audiences.

9. Distribution channels: Distribution channels are crucial for the print media industry as
they ensure accessibility and reach to target audiences, directly impacting sales and
revenue. Effective channels like subscriptions and retail partnerships enhance brand
visibility and consumer convenience. They also enable market segmentation, allowing
publications to target niche markets effectively. Additionally, efficient distribution helps
manage costs and adapt to changing consumer preferences, ensuring that print media
remains relevant in a digital-first landscape. Overall, a well-structured distribution
strategy is key to sustaining profitability and audience engagement.

10. Globalization: Globalization has opened up new markets for print media but also
introduces competition from international players. Publications must adapt to local
cultures and preferences. Global supply chain issues can impact the availability and cost
of materials necessary for print production.

Navigating these drivers effectively can help print media adapt and thrive in an increasingly
digital world.

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 CHAPTER 2
REVIEW OF LITERATURE

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1. Durgesh Tripathi, Priyanka Sachdeva, Surbhi Tandon (2024) The study divulges that
the print media, until COVID-19, has showcased remarkable resilience with the digital
news platforms, as well as television news, but during COVID-19, people were more
dependent on the digital edition, showing a substantial growth in digital subscriptions.
This interdisciplinary chapter analyzes the reasons for the growth of the digitalization of
the printed word and its growing popularity among the youth segment of the
population. The study adopts a mixed-method approach involving quantitative and
qualitative methods to compare the revenue generation channels for the print medium and
digital platforms and the varying demographics of the readers of both mediums.

2. Zanbak M., Tutcu B., Soycan S. (2024) The main motivation for writing this study is to
reveal the possible effects of the financial structures of automotive companies in the Asia-
Pacific region on their productivity and to offer suggestions to company managers based
on this. An empirical analysis is carried out using the data of 61 automotive companies
operating in the Asia Pacific region. It has been determined that the liquidity ratios and
activity ratios of the companies have a positive impact on the productivity of the
company. It has been found that the leverage ratio reflects negatively on productivity
from financial structure ratios, while the effect of financial annuity and current asset
annuity on productivity from profitability ratios is strong and positive.

3. Tamilarasu S, Srinivasan K (2022) The study attempts to derive a comparison between

the financial performance of the public and private sectors concerning internal and
external factors that influence the overall performance of the banking industry. The goal
of this research was to examine the financial performance of a few public and private
sector banks from 2017 to 2021. The study concluded that both public sector banks and
private sector banks need to focus on decreasing their non-performing assets as they
seriously dent the profitability of banks by affecting its revenue. Banks need to work
from the perspective of improving revenue and also cutting expenses if they wish to
reinforce their banking performance.

4. JUBIN S SAJI (2021) To study the financial performance of Tata motors over a period
of five years (2015-2016 to 2019-2020) and To evaluate financial position of the
company in terms of solvency, profitability, liquidity and efficiency. The analysis done
with the help of collected from different sources and it shows the overall performance of
the organization. The organization faces a lot of unavoidable expenses that causes the
profitability position of the company. The company should maintain the proper level of
current asset to ensure the adequate working capital of the company and also take
necessary steps to control the operating cost of the company. The overall efficiency of the
management has to improve by the utilization of fund that is available in the company.

5. K. VENNILA, N. CHANDRU (2021) the main aim of the study is to analyze the
financial position of the company over a period of time in terms of solvency, liquidity and
profitability and to assess financial strength of IT companies On the basis of the analysis
of the financial performance of selected IT companies reveals that the companies have
shown a remarkable progress in its performance.

19
6. Sarthak Mishra (2021) The research was conducted to analyze consumer buying
behaviour towards Outlook magazine in Kanpur region and to find out the factors
affecting the consumer buying behaviour. The research also tried to study the relationship
between profession and experience of outlook magazine's customers. The research
concluded that Outlook has a good brand image and most of the people are aware of
Outlook weekly news magazine but due to various factors people do not prefer this
magazine. The research also shows that the group have to work on customer satisfaction
and should also develop clear defined customer service policy. It was analysed from the
research that majority of the readers of Outlook magazine was satisfied with the content
of information of the magazine and find the information useful and sufficient. It was
found from the study that there is no significant relationship between income and price
sensitive attitude of customer. But it was inferred that there is a significant relationship
between the profession and experience of customer with Outlook magazines.

7. Nishant Singh (2021) the research was conducted to study the increase in the outreach of
outlook magazine by presenting a diversified portfolio to the customers and
understanding the buying behaviour of the customer. Findings imply magazines are well
entertained, updated, and well informed. Subscribers have a high demand for the
improvement of services. Subscription schemes attract more customers. People
are highly interested in magazines but are not aware of the offers and schemes. The
recommendation for the group is that their prime focus should be on the
improvement of services and improving the distribution channel.

8. Dr. Kamatam Srinivas, Dr. S Ramakoteshwara Rao (2020) This research paper
analyzes the financial performance of top ten companies in India. The variables viz sales,
profit after tax, market capitalization, change of profit and revenue of the companies were
examined over a period of two year. We conclude that Tata Motors, BPCL, HPCl
performance slightly decreased during the study, hence improve the sales and control the
cost. In the ever changing competitive business environment the company’s management
should design the innovative strategies to enhance customer value for more returns on the
investment and thereby to further strengthen the financial health of the company.

9. Dr. Mehul Patel, Dr. Archana Borde, Mr. Mehul Mistry, Dr. Jaydutt G. Purohit
(2020) This paper provides a comprehensive study of the financial performance literature
with respect to the IT industry of India. The result shows that the general exhibition of all
the data Technology organizations was seen as great. All in all, we can say that fates of
Information Technology Companies are brilliant as generally monetary exhibitions are
excellent.

10. Dr. Jyotsna Gaur (2018) This research was conducted to analyze the indian print media
industry and identifying different forms of print media. The results shows print media is
concerned not only the number of newspapers, magazines and journals have increased in
all the Indian languages including English their circulation and readership has also gone
up. At the same time Television and internet poses serious challenges to print media. The
Print media as an industry, has come a long way and to stay further to contribute to socio-
economic development of the region.

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 CHAPTER 3
RESEARCH METHODOLOGY

21
SCOPE OF THE STUDY:

RESEARCH OBJECTIVE:
1. To assess the current financial position of the company.
2. To review the company’s performance over past periods.
3. To measure the profitability, solvency, liquidity and efficiency of operations of firm.

RESEARCH DESIGN:

The nature of the research design will be descriptive.

SOURCE OF DATA COLLECTION:

The data is collected from the secondary sources from books, journals, online websites and other
published sources and financial statements provided by the firm. (i.e..Profit and Loss Statement
and Balance Sheet.)

METHODS OF DATA ANALYSIS:

The methods and tools for data analysis used in the research are Statistical tools and Financial
Ratios (i.e.. Liquidity Ratios, Profitability Ratios, Solvency Ratios, Efficiency Ratios. Etc)

TIME PERIOD OF THE STUDY:

The time period for the study will be 2 months.

22
 CHAPTER 4
DATA ANALYSIS &
INTERPRETATION

23
DATA ANALYSIS & INTERPRETATION:

A. LIQUIDITY RATIO

1. Current Ratio
The current ratio is a financial metric that measures a company's ability to cover its
short-term liabilities with its short-term assets. It’s calculated by dividing current
assets by current liabilities. A ratio above 1 indicates that the company has more
assets than liabilities, which is generally considered a good sign of financial health.

Year Current assets Current liabilities Current ratio

2020 487.05 1155.37 0.42
2021 708.46 1157.03 0.61
2022 1395.0 1824.64 0.76
2023 767.6 1722.67 0.44
2024 596.72 1683.1 0.35

Interpretation:
The current ratio from 2020 to 2024 reveals a concerning trend in liquidity. After a
gradual improvement from 0.42 in 2020 to 0.76 in 2022, the ratio sharply declined to
0.44 in 2023 and further to 0.35 in 2024. This indicates ongoing challenges in
meeting short-term liabilities, signaling potential liquidity risks that the company
needs to address urgently to stabilize its financial position.

Current Ratio
0.8
0.6
0.4
0.2
0
2020 2021 2022 2023 2024

2. Quick Ratio
The quick ratio assesses a company's ability to pay its short-term liabilities using its
most liquid assets, excluding inventory. It gives a clearer picture of financial health
by focusing on assets that can be quickly converted to cash. A ratio above 1 suggests
that the company can comfortably meet its obligations, while a ratio below 1 may
indicate potential liquidity issues.

24
 Year Quick assets Current liabilities Quick ratio
2020 399.03 1155.37 0.34
2021 613.34 1157.03 0.53
2022 1275.8 1824.64 0.69
2023 690.44 1722.67 0.40
2024 488.81 1683.1 0.29

Interpretation:
The quick ratio shows an initial improvement from 0.34 in 2020 to a peak of 0.69 in
2022, indicating enhanced liquidity. However, it sharply declined to 0.40 in 2023 and
further to 0.29 in 2024, signaling potential liquidity challenges. A ratio below 1.0
suggests the company may struggle to meet its short-term obligations. It's crucial to
investigate the causes of this decline and consider strategies to improve cash flow and
asset management.

Quick Assets
0.8
0.6
0.4
0.2
0
2020 2021 2022 2023 2024

25
B. SOLVENCY RATIO
1. Debt-to- Equity Ratio
The debt-to-equity ratio measures a company's financial leverage by comparing its
total debt to its shareholders' equity. It shows how much debt a company is using to
finance its assets relative to the equity provided by its owners. A higher ratio indicates
greater reliance on debt, which can imply higher financial risk, while a lower ratio
suggests a more conservative approach with less reliance on borrowed funds. This
ratio helps investors assess the balance between debt and equity financing.

Year Total liabilities Shareholder’s equity Debt-to-Equity ratio

2020 2447.31 1143.58 2.14
2021 2725.82 1357.61 2.00
2022 3711.83 1621.88 2.28
2023 3530.80 1780.72 1.98
2024 3417.65 1698.35 2.01

Interpretation:
The debt-to-equity ratio shows a decline from 2.14 in 2020 to 1.98 in 2023, indicating
a temporary improvement in financial leverage. However, it increased slightly to 2.01
in 2024, suggesting a return to higher debt levels. A ratio consistently above 2.0
implies significant reliance on debt, which may heighten financial risk. It’s essential
to monitor this trend and consider strategies for managing leverage effectively.

Debt-to-equity
2.4

2.2

1.8
2020 2021 2022 2023 2024

2. Proprietary Ratio
The proprietary ratio, also known as the equity ratio, measures the proportion of a
company's assets that are financed by shareholders' equity. It is calculated by dividing
shareholders' equity by total assets. This ratio provides insight into the financial
stability of a business by indicating how much of the company's assets are owned

26
outright by shareholders, rather than being financed through debt. A higher
proprietary ratio suggests a more secure financial position, as it indicates a lower
reliance on borrowed funds.

Year Shareholder’s Total assets Proprietary

equity Ratio
2020 1143.58 2447.31 0.46
2021 1357.61 2725.82 0.49
2022 1621.88 3711.83 0.44
2023 1780.72 3530.80 0.50
2024 1698.35 3417.65 0.49

Interpretation:
The proprietary ratio shows a positive trend from 0.46 in 2020 to a peak of 0.50 in
2023, indicating a strengthening equity position relative to total assets. Although there
was a slight dip to 0.49 in 2024, the ratio remains stable and above 0.40, suggesting a
sound financial foundation. Overall, the company appears to be effectively
maintaining its equity base, which is reassuring for stakeholders regarding financial
stability. Ongoing monitoring of this ratio is recommended to ensure continued
strength.

Proprietary Ratio
0.55

0.5

0.45

0.4
2020 2021 2022 2023 2024

27
C. PROFITABILITY RATIO

1. Return on Assets
Return on Assets (ROA) measures a company's profitability in relation to its total
assets. It indicates how efficiently a company is using its assets to generate earnings.
A higher ROA suggests that the company is effectively converting its investments
into profit, while a lower ROA may indicate less efficient asset management. ROA is
commonly expressed as a percentage and is a useful metric for comparing
performance across companies in the same industry.

Year Net income Total assets ROA

2020 -81.35 2447.31 -3.32%
2021 -265.79 2725.82 -9.75%
2022 -138.94 3711.83 -3.74%
2023 211.16 3530.80 5.98%
2024 61.51 3417.65 1.79%

Interpretation:
The return on assets (ROA) shows a significant turnaround, improving from negative
values in 2020, 2021, and 2022 to a positive 5.98% in 2023, indicating effective
utilization of assets to generate profit. However, the ROA declined to 1.79% in 2024,
suggesting a reduction in profitability despite still being positive. The fluctuation in
net income, from substantial losses to modest gains, highlights the company's volatile
performance. Continuous efforts to enhance asset efficiency and profitability will be
crucial moving forward.

Return on Assets
10.00%
5.00%
0.00%
-5.00% 2020 2021 2022 2023 2024

-10.00%
-15.00%

28
2. Return On Equity
Return on Equity (ROE) measures a company's profitability in relation to
shareholders' equity. It indicates how effectively a company is using equity
investments to generate profit. A higher ROE suggests that the company is good at
converting equity into profit, making it an attractive investment. ROE is expressed as
a percentage and is often used by investors to compare the financial performance of
companies within the same industry.

Year Net income Shareholder’s equity ROE

2020 -81.35 1143.58 -7.11%
2021 -265.79 1357.61 -19.57%
2022 -138.94 1621.88 -8.56%
2023 211.16 1780.72 11.85%
2024 61.51 1698.35 3.62%

Interpretation:
The return on equity (ROE) demonstrates a dramatic recovery, moving from negative
values in 2020, 2021, and 2022 to a positive 11.85% in 2023, reflecting improved
profitability relative to shareholder equity. However, ROE dropped to 3.62% in 2024,
indicating a decline in the efficiency of generating returns on equity despite still being
positive. The initial losses show challenges in profitability, but the 2023 gain suggests
effective management interventions.

Return on Equity
20.00%
10.00%
0.00%
-10.00% 2020 2021 2022 2023 2024

-20.00%
-30.00%

3. Return On Capital Employed

Return on Capital Employed (ROCE) measures a company's profitability and
efficiency in using its capital. It evaluates how well a company generates profits from
its capital, which includes both equity and debt. A higher ROCE indicates that the
company is effectively utilizing its capital to generate earnings, making it a useful
metric for assessing financial performance, especially when comparing companies

29
 within the same industry. It helps investors understand how well a company is
managing its capital resources.

Year EBIT Capital Employed ROCE

2020 -142.65 1234.78 -11.55%
2021 14.9 1482.24 1.00%
2022 -59.9 1854.68 -3.22%
2023 260.93 1786.42 14.60%
2024 64.19 1715.37 3.74%

Interpretation:
The return on capital employed (ROCE) reflects a notable turnaround, improving
from negative values in 2020 and 2022 to 14.60% in 2023, indicating effective use of
capital to generate earnings. However, ROCE declined to 3.74% in 2024, suggesting
a drop in operational efficiency despite still being positive. The fluctuations in EBIT
highlight challenges in profitability, particularly in 2021 and 2022. Maintaining focus
on enhancing operational performance and capital efficiency will be crucial for
sustaining ROCE growth.

ROCE
20.00%

10.00%

0.00%
2020 2021 2022 2023 2024
-10.00%

-20.00%

4. Revenue Growth (%)

Revenue growth measures the increase in a company's sales over a specific period,
typically expressed as a percentage. It indicates how effectively a company is
expanding its business and attracting customers. Strong revenue growth can signal a
company's competitiveness and market demand for its products or services. It's an
important metric for investors.

Year Total Revenue Revenue growth

2020 628.68 -

30
 2021 1369.94 1.17%
2022 1446.83 0.05%
2023 1595.59 0.10%
2024 1588.93 0.09%

Interpretation:
The total revenue growth shows a promising start with a significant increase from
628.68 in 2020 to 1369.94 in 2021, indicating a strong recovery. However, growth
rates have since stagnated, with minimal increases in 2022 (0.05%), 2023 (0.10%),
and a slight decline in 2024 (0.09%). This lack of sustained growth may suggest
challenges in market demand or competitive pressures.

Revenue Growth
2000
1500
1000
500
0
2020 2021 2022 2023 2024

5. Net Profit Margin

Net profit margin measures the percentage of revenue that remains as profit after all
expenses, taxes, and costs have been deducted. It indicates how efficiently a company
converts revenue into actual profit. A higher net profit margin suggests better
profitability and cost management, while a lower margin may indicate challenges in
controlling expenses or generating sufficient sales. This metric is crucial for assessing
a company’s overall financial health and operational efficiency.

Year Net income Total revenue Net profit margin

2020 -142.65 628.68 -22.69%
2021 14.9 1369.94 1.08%
2022 -59.9 1446.83 -4.14%
2023 260.93 1595.59 16.35%
2024 64.19 1588.93 4.03%

31
 Interpretation:
The net profit margin shows a significant recovery from -22.69% in 2020 to 16.35%
in 2023, indicating a substantial improvement in profitability relative to total revenue.
Despite this positive trend, the margin decreased to 4.03% in 2024, suggesting a
decline in profitability efficiency. The volatility in net income, with losses in 2020
and 2022 but gains in 2021 and 2023, highlights the company’s challenges and
recovery efforts.

Net profit Margin

20.00%
10.00%
0.00%
-10.00% 2020 2021 2022 2023 2024

-20.00%
-30.00%

6. Gross Margin
Gross margin measures the percentage of revenue that exceeds the cost of goods sold
(COGS). It reflects how efficiently a company produces and sells its products,
indicating the portion of sales revenue that contributes to covering operating expenses
and generating profit. A higher gross margin suggests strong pricing power and cost
control, while a lower gross margin may indicate challenges in production costs or
competitive pricing. It’s an important metric for evaluating a company's profitability
before accounting for operating expenses, taxes, and other costs.

Year Gross Profit Total revenue Gross Margin

2020 321.28 628.68 51.10%

2021 706.16 1369.94 51.55%

2022 720.69 1446.83 49.81%

2023 975.12 1595.59 61.11%

2024 830.84 1588.93 52.29%

Interpretation:
The gross margin indicates strong profitability, remaining consistently high between
49.81% and 61.11% over the years. It increased from 51.10% in 2020 to 61.11% in
2023, reflecting improved cost management or pricing power. However, it dropped to

32
 52.29% in 2024, suggesting a potential challenge in maintaining profitability,
possibly due to increased costs or competitive pressures. Overall, the gross profit
performance highlights the company's ability to generate revenue efficiently, but
ongoing attention to cost controls will be important for sustaining margins.
Gross Profit Margin
80.00%
60.00%
40.00%
20.00%
0.00%
2020 2021 2022 2023 2024

7. Operating Profit Margin

Operating profit margin measures the percentage of revenue that remains after
covering operating expenses, excluding interest and taxes. It reflects a company's
efficiency in managing its core business operations. A higher operating profit margin
indicates effective cost management and strong operational performance, while a
lower margin may suggest higher operating costs or inefficiencies. This metric is
important for assessing the profitability of a company’s core activities and comparing
performance within the same industry.

Year EBIT Total revenue Operating Margin

2020 -139.61 628.68 -22.21%

2021 11.4 1369.94 0.83%

2022 -60.38 1446.83 -4.17%

2023 260.95 1595.59 16.35%

2024 64.29 1588.93 4.05%

Interpretation:
The operating margin shows a dramatic recovery, improving from -22.21% in 2020 to
16.35% in 2023, indicating a significant enhancement in operational efficiency.
However, the margin decreased to 4.05% in 2024, suggesting a decline in
profitability, potentially due to rising costs or competitive challenges. The
fluctuations in EBIT reflect the company's volatility in operations, with substantial
losses in 2020 and 2022, followed by gains in 2021 and 2023. To sustain positive
operating margins, the company should focus on managing expenses and improving
operational performance.

33
 Operating Margin
20.00%

0.00%
2020 2021 2022 2023 2024
-20.00%

-40.00%

D. EFFICIENCY RATIO
1. Asset Turnover Ratio
The asset turnover ratio measures a company's efficiency in using its assets to
generate revenue. It is calculated by dividing total revenue by average total assets. A
higher asset turnover ratio indicates that a company is effectively utilizing its assets to
produce sales, while a lower ratio may suggest inefficiencies or underutilization of
assets. This ratio is particularly useful for comparing companies within the same
industry, as it highlights how well each company leverages its assets to drive revenue.

Year Net sales Avg. Assets Asset turnover ratio

2020 528.1 - -
2021 1138.80 2586.56 0.44
2022 1290.65 3218.82 0.40
2023 1373.26 3621.31 0.37
2024 1418.89 3474.22 0.40

Interpretation:
The asset turnover ratio indicates how efficiently the company uses its assets to
generate sales. After a notable jump in 2021, the ratio declined in 2023, reflecting
decreased efficiency in asset utilization despite growing net sales. In 2024, the ratio
rebounded slightly to, suggesting improved performance. Overall, while net sales
have consistently increased, the fluctuating asset turnover ratios indicate a need for
the company to optimize its asset management to enhance efficiency and drive higher
sales per asset.

34
2. Inventory Turnover Ratio
The inventory turnover ratio measures how efficiently a company manages its
inventory by comparing the cost of goods sold (COGS) to average inventory. It
indicates how many times inventory is sold and replaced over a specific period,
typically a year. A higher inventory turnover ratio suggests strong sales and effective
inventory management, while a lower ratio may indicate overstocking, slow sales, or
potential obsolescence. This metric is crucial for assessing a company's operational
efficiency and inventory management practices.

Year Net sales Inventory Inventory Turnover Ratio

2020 628.68 88.02 7.14 x

2021 1,369.94 95.12 14.40 x
2022 1,446.83 119.2 12.14 x
2023 1,595.59 77.16 20.68 x
2024 1,588.93 107.91 14.72 x

Interpretation:
The inventory turnover ratio measures how efficiently a company manages its
inventory relative to its sales. The data shows a strong performance, particularly in
2023, where the ratio peaked at 20.68 times, indicating excellent inventory
management and rapid turnover. After a slight decrease in 2024 to 14.72 times, the
company still demonstrates solid inventory efficiency. The fluctuations between
years, particularly the increase from 7.14 times in 2020 to 14.40 times in 2021, reflect
improvements in inventory practices. Overall, maintaining a high turnover ratio is a
positive sign of operational efficiency, but attention should be given to ensure that it
does not compromise stock availability.
Inventory Turnover
30.00

20.00

10.00

0.00
2020 2021 2022 2023 2024

3. Fixed Asset Turnover Ratio

The fixed asset turnover ratio measures how effectively a company utilizes its fixed
assets (like property, plant, and equipment) to generate sales. It is calculated by

35
 dividing total revenue by average net fixed assets. A higher fixed asset turnover ratio
indicates that a company is efficiently using its fixed assets to produce revenue, while
a lower ratio may suggest underutilization or inefficiencies. This ratio is particularly
useful for capital-intensive industries where investments in fixed assets are
significant.

Year Net Revenue Fixed Assets Fixed Asset Turnover

2020 628.68 893.38 0.70x

2021 1,369.94 1198.58 1.14x

2022 1,446.83 1162.84 1.24x

2023 1,595.59 1242.83 1.28x

2024 1,588.93 1230.81 1.29x

Interpretation:
The fixed asset turnover ratio measures how effectively a company uses its fixed
assets to generate revenue. The ratio improved significantly from 0.70x in 2020 to
1.29x in 2024, indicating enhanced efficiency in leveraging fixed assets for revenue
generation. The steady increase over the years, particularly from 1.14x in 2021 to
1.28x in 2023, reflects a consistent ability to generate more revenue per unit of fixed
assets. This trend suggests strong operational performance and effective asset
management, which are positive indicators for the company’s overall financial health.
Fixed Asset Turnover
1.5

0.5

0
2020 2021 2022 2023 2024

4. Debtor Turnover Ratio

The debtor turnover ratio, also known as the accounts receivable turnover ratio,
measures how efficiently a company collects its outstanding receivables. It is
calculated by dividing total credit sales by average accounts receivable. A higher
debtor turnover ratio indicates that a company is effective at collecting payments
from customers, leading to better cash flow. Conversely, a lower ratio may suggest

36
 issues with credit policies or collection processes. This metric is essential for
assessing the efficiency of a company’s credit management and liquidity.

Year Debtor Revenue Debtor Turnover Ratio

2020 132.62 628.68 4.74 x

2021 259.72 1,369.94 5.27 x

2022 252.43 1,446.83 5.73 x

2023 216.84 1,595.59 7.36 x

2024 177.05 1,588.93 8.97 x

Interpretation:
The debtor turnover ratio measures how efficiently a company collects its receivables.
The ratio has shown a steady increase from 4.74x in 2020 to 8.97x in 2024, indicating
improved effectiveness in collecting payments from customers. The notable rise in
2023 and 2024 reflects strong credit management practices and a healthier cash flow
position. Overall, the trend suggests that the company is becoming more efficient in
managing its accounts receivable, which is a positive sign for its liquidity and
financial stability.

5. Creditor Turnover Ratio

The creditor turnover ratio, also known as the accounts payable turnover ratio,
measures how quickly a company pays off its suppliers and creditors. It is calculated
by dividing total purchases (or cost of goods sold) by average accounts payable. A
higher creditor turnover ratio indicates that a company is efficient in settling its debts,
which can improve supplier relationships and potentially lead to better credit terms.
Conversely, a lower ratio may suggest that a company is taking longer to pay its
obligations, which could impact cash flow or supplier relations. This metric is useful
for evaluating a company’s short-term liquidity and payment practices.

Year Creditor Revenue Creditor Turnover Ratio

2020 171.03 628.68 3.68 x

2021 201.76 1,369.94 6.79 x

2022 287.75 1,446.83 5.03 x

2023 248.87 1,595.59 6.41 x

37
 2024 302.71 1,588.93 5.25 x

Interpretation:
The creditor turnover ratio measures how quickly a company pays its suppliers. The
ratio increased significantly from 3.68x in 2020 to 6.79x in 2021, indicating improved
payment practices. However, it fluctuated in subsequent years, dropping to 5.03x in
2022 and then rising to 6.41x in 2023 before decreasing to 5.25x in 2024. These
fluctuations suggest variability in payment practices, which could indicate changes in
cash flow management or supplier terms. Overall, while the company shows some
efficiency in paying its creditors, the inconsistency in the ratio warrants attention to
maintain favorable supplier relationships and manage cash flow effectively.

6. Cash Conversion Cycle

Cash conversion days, also known as the cash conversion cycle, measure the time it
takes for a company to convert its investments in inventory and other resources into
cash flows from sales. A shorter cash conversion cycle indicates efficient
management of inventory and receivables, meaning the company can quickly convert
its investments into cash. Conversely, a longer cycle may suggest inefficiencies that
can tie up cash and impact liquidity. This metric is crucial for understanding how well
a company manages its working capital.

Year Debtor Days Creditor Days Inventory Days Cash Conversion Cycle

2020 77 days 99 days 51 days 29 days

2021 69 days 54 days 25 days 41 days

2022 64 days 73 days 30 days 21 days

2023 50 days 57 days 18 days 10 days

2024 41 days 70 days 25 days -4 days

Interpretation:
The cash conversion cycle has significantly improved, dropping from 29 days in 2020
to a negative cycle of -4 days in 2024, indicating that the company is collecting cash
from sales faster than it is paying suppliers. Debtor days have also decreased
markedly, from 77 days in 2020 to 41 days in 2024, demonstrating effective
receivables management and quicker cash collection. In contrast, creditor days have
fluctuated, increasing to 70 days in 2024, which may suggest a strategic choice to
extend payment terms to manage cash flow.

38
 Inventory days improved from 51 days in 2020 to 18 days in 2023 but rose to 25
days in 2024, indicating potential challenges in inventory management or increased
stock levels. The overall trend reflects a positive shift towards operational efficiency
and stronger liquidity, which is beneficial for the company’s financial health.
However, the longer creditor days could strain supplier relationships if payments are
delayed. Continued focus on optimizing inventory management and maintaining
favorable supplier terms will be crucial for sustaining this positive momentum in
working capital management.

Cash Conversion Cycle

100
80
60
40
20
0
-20 2020 2021 2022 2023 2024

Debtor Days Creditor Days

Inventory Days Cash Conversion Cycle

39
 CHAPTER 5
FINDINGS & CONCLUSION

40
 Findings
1. The current ratio has sharply declined to 0.76 in 2022 to 0.44 in 2023 to 0.35 in 2024.
2. The quick ratio of the organisation has also fallen sharply where from 0.69 in
2022 to 0.29 in 2024.
3. The debt to equity ratio also showed some decline in 2023 but in the current year 2024
the numbers have slightly improved.
4. The proprietary ratio shows a positive trend although there is a slight dip in 2024 , the
ratio remains stable.
5. The return on assets shows a significant turnaround improving from negative values in
2020-22 to postive values in 2024.
6. The return on equity also shows some positive recovery in 2023 and 2024 reflecting
relative in increase in profitability.
7. The Return on capital employed also shows a significant turnaround in 2023 and 2024.
However it dropped again in 2022 due to operational inefficiency.
8. The total revenue growth shows a promising growth trend with a significant increase and
strong recovery.
9. The net profit margin shows some significant recovery with a negative value of -22.7% in
2020 to strong positive recovery 16% in 2023 indicating substantial growth
in profitability.
10. The gross margin indicates strong profitability, remaining consistently
high over the years.
11. The operating margin show that dramatic recovery improving from negative values in
2020 to positive values in 2023. However the numbers dropped in 2023, but in the next
year it showed a strong growth, indicating significant enhancement in
operational efficiency.
12. The Asset turnover ratio has declined in past years reflecting decrease efficiency in acid
utilisation. While the net sales and Assets have consistently increased.
13. The inventory turnover ratio has shown strong performance over the years. The ratio even
peaked in 2023 indicating excellent inventory management. Maintaining a high turnover
ratio is a positive sign for the company.
14. The fixed asset turnover ratio has improved significantly over the years indicating
enhanced efficiency in leveraging fixed assets for revenue generation.
15. The debtor turnover ratio has also improved over the years with a notable rise in 2023
and 2024 indicating efficient management of accounts receivable of the company.
16. The creditor turnover ratio has also increased significantly for the company, with
fluctuations in subsequent years. The ratio is inconsistent but the company is able to
efficiently paying to its creditors.
17. The cash conversion cycle or days significantly increased in 2021, but from next
consecutive years the numbers been dropping to -4 days in 2024 showing that the
company is collecting cash from its sales faster than it is paying to its suppliers. The
debtor days and creditor days have also decreased. The inventory days improved over the
years indicating efficient inventory management and stronger liquidity.

41
 Conclusion
The comprehensive analysis of the company’s financial data over the five-year period reveals
both significant improvements and ongoing challenges across various metrics, highlighting its
overall performance and operational efficiency.

Liquidity Analysis: The current and quick ratios initially showed improvements from 2020 to
2022, indicating a strengthened capacity to meet short-term liabilities. However, both ratios
declined sharply in 2023 and 2024, suggesting emerging liquidity concerns that could impact the
company’s ability to cover its obligations in the near term.

Profitability Metrics: The return on assets (ROA) and return on equity (ROE) analyses indicate a
turbulent profitability landscape. After experiencing negative net incomes in earlier years, the
company returned to profitability in 2023 with positive ROA and ROE figures. However, the
subsequent decline in 2024 suggests that maintaining sustainable profitability remains a
challenge, necessitating a focus on operational efficiencies.

Operational Efficiency: The gross margin and operating margin trends demonstrate the
company’s ability to manage costs effectively. The gross margin peaked in 2023 at 61.11%,
while the operating margin significantly improved during the same period. Nonetheless, both
margins saw declines in 2024, indicating the need for continuous cost control measures.

Asset Management: The analysis of asset turnover ratios highlights a consistent improvement in
the company’s efficiency in utilizing its fixed assets to generate revenue. The fixed asset
turnover ratio increased steadily from 0.70 in 2020 to 1.29 in 2024, reflecting effective asset
management.

Working Capital Management: The debtor turnover and creditor turnover ratios illustrate the
company’s effectiveness in managing receivables and payables. The debtor turnover ratio
improved significantly, reaching 8.97 in 2024, indicating efficient collections. Conversely, the
creditor turnover ratio showed variability, suggesting a need for better management of payables.

Cash Conversion Cycle: Finally, the cash conversion cycle analysis reveals a remarkable
improvement in working capital management. The cycle shortened from 29 days in 2020 to a
negative 4 days in 2024, indicating that the company is now receiving cash from sales before
needing to pay its suppliers. This positions the company favorably for liquidity and operational
flexibility.

Overall, the data indicates that while the company has made significant strides in improving
profitability, operational efficiency, and working capital management, it faces challenges in
maintaining liquidity and consistent profit margins. The positive trends in asset utilization and
the cash conversion cycle reflect a strong potential for growth and improved financial health.
Moving forward, the company should focus on sustaining profitability, enhancing liquidity, and
effectively managing costs to ensure long-term success.

42
CHAPTER 6
REFERENCES

43
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7. Gaur, J. (2018). This research was conducted to analyze the Indian print media industry
and identifying different forms of print media. JETIR: Journal of Emerging Technologies
and Innovative Research, 5(9), 115-119.

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 Annexure
Statement of Assets & Liabilities from Mar 2021 to Mar 2024
BALANCE SHEET (in Rs. Cr.) Mar-21 Mar-20 Mar-22 Mar-23 Mar-24
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 46.11 46.11 46.11 46.11 46.1
TOTAL SHARE CAPITAL 46.11 46.11 46.11 46.11 46.1
Reserves and Surplus 1,097.47 1,311.50 1,575.77 1,734.61 1,652.25
TOTAL RESERVES AND 1,097.47 1,311.50 1,575.77 1,734.61 1,652.25
SURPLUS
TOTAL SHAREHOLDERS FUNDS 1,143.58 1,357.61 1,621.88 1,780.72 1,698.35
NON-CURRENT LIABILITIES
Long Term Borrowings 91.2 124.63 232.8 5.7 17.02
Deferred Tax Liabilities [Net] 0 0 0 0 0
Other Long Term Liabilities 57.16 83.64 30.38 19.85 17.99
Long Term Provisions 0 2.91 2.13 1.86 1.19
TOTAL NON-CURRENT 148.36 211.18 265.31 27.41 36.2
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 450.5 421.55 1,087.10 1,050.18 970.38
Trade Payables 171.03 201.76 287.75 248.87 302.71
Other Current Liabilities 531.55 529.19 444.72 418.06 387.04
Short Term Provisions 2.29 4.53 5.07 5.56 22.97
TOTAL CURRENT LIABILITIES 1,155.37 1,157.03 1,824.64 1,722.67 1,683.10
TOTAL CAPITAL AND LIABILITIES 2,447.31 2,725.82 3,711.83 3,530.80 3,417.65
NON-CURRENT ASSETS
Tangible Assets 893.38 410.83 340.83 371.39 424.53
Intangible Assets 0 330.33 367.23 401.66 437.47
Capital Work-In-Progress 0 29.41 29.37 30.1 32.52
Other Assets 0 427.5 425.21 439.39 335.69
FIXED ASSETS 893.38 1,198.58 1,162.84 1,242.83 1,230.81
Non-Current Investments 626.2 588.5 903.61 1,310.65 1,488.38
Deferred Tax Assets [Net] 143.68 26.61 49.26 6.5 12.77
Long Term Loans And Advances 226.4 116.94 139.33 124.22 34.45
Other Non-Current Assets 70.6 86.73 61.79 49 54.52
TOTAL NON-CURRENT ASSETS 1,960.26 2,017.36 2,316.83 2,733.20 2,820.93
CURRENT ASSETS
Current Investments 132.91 238.01 815.82 323.4 165.98
Inventories 88.02 95.12 119.2 77.16 107.91
Trade Receivables 132.62 259.72 252.43 216.84 177.05
Cash And Cash Equivalents 46.25 47.36 120.25 80.5 65.91
Short Term Loans And Advances 0 0 15.99 15.99 16.97
OtherCurrentAssets 87.25 68.25 71.31 83.71 62.9

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TOTAL CURRENT ASSETS 487.05 708.46 1,395.00 797.6 596.72
TOTAL ASSETS 2,447.31 2,725.82 3,711.83 3,530.80 3,417.65
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 0 80 26.01 49.12 40.58
CIF VALUE OF IMPORTS
Raw Materials 0 0 0 0 0
Stores, Spares And Loose Tools 0 0 0 0 0
Trade/Other Goods 0 0 0 0 0
Capital Goods 0 0 0 0 0
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 0 194.92 287.02 0 0

46
Statement of Profit & Loss Account from march 2021 to march 2024

PROFIT & LOSS ACCOUNT Mar-21 Mar-20 Mar-22 Mar-23 Mar-24

(in Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS 528.1 1,138.80 1,290.65 1,373.26 1,418.89
[GROSS]
Less: Excise/Sevice Tax/Other Levies 0 0 0 0 0
REVENUE FROM OPERATIONS [NET] 528.1 1,138.80 1,290.65 1,373.26 1,418.89
TOTAL OPERATING REVENUES 528.1 1,243.33 1,301.73 1,385.46 1,432.04
Other Income 100.58 126.61 145.1 210.13 156.89
TOTAL REVENUE 628.68 1,369.94 1,446.83 1,595.59 1,588.93
EXPENSES
Cost Of Materials Consumed 83.24 286.38 376.47 298.44 351.51
Operating And Direct Expenses 0 0 0 0 0
Changes In Inventories Of FG,WIP And 1.52 -1.75 -0.24 0.01 0.05
Stock-In Trade
Employee Benefit Expenses 179.81 272.2 250.99 252.44 327.95
Finance Costs 45.87 103.45 98.44 69.6 78.68
Depreciation And Amortisation Expenses 90.9 113.45 82.69 96.42 97.47
Other Expenses 369.99 581.31 698.38 617.75 669.08
TOTAL EXPENSES 771.33 1,355.04 1,506.73 1,334.66 1,524.74
PROFIT/LOSS BEFORE -142.65 14.9 -59.9 260.93 64.19
EXCEPTIONAL, EXTRAORDINARY
ITEMS AND TAX
Exceptional Items 7.21 -270.78 -112.11 -14.05 0
PROFIT/LOSS BEFORE TAX -135.44 -255.88 -172.01 246.88 64.19
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax -54.09 5.7 4.26 29.44 -8.25
Less: MAT Credit Entitlement 0 0 0 0 0
Deferred Tax 0 4.21 -37.33 6.28 10.93
Tax For Earlier Years 0 0 0 0 0
TOTAL TAX EXPENSES -54.09 9.91 -33.07 35.72 2.68
PROFIT/LOSS AFTER TAX AND -81.35 -265.79 -138.94 211.16 61.51
BEFORE EXTRAORDINARY ITEMS
PROFIT/LOSS FROM CONTINUING
OPERATIONS -81.35 -265.79 -138.94 211.16 61.51
PROFIT/LOSS FOR THE PERIOD -81.35 -265.79 -138.94 213.74 61.51
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) -3.53 -11.53 -5.97 9.18 2.64
Diluted EPS (Rs.) -3.53 -11.53 -5.97 9.18 2.64
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE TOOLS
Imported Raw Materials 0 0 0 0 0
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Indigenous Raw Materials 0 0 0 0 0
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 0 0 0 0 0
Indigenous Stores And Spares 0 0 0 0 0
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 0 9.31 9.31 9.31 9.31
Tax On Dividend 0 0.57 0.57 0.56 0.56
Equity Dividend Rate (%) 0 0 20 20 20

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Plagiarism Reports

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