CHAPTER 1 – INTRODUCTION

1.1 INTRODUCTION

Finance is defined as the provision of money at the time when it is required. Every

enterprise, whether big, medium, or small, needs finance to carry on its operations and

to achieve its targets. In fact, finance is so indispensable today that it is rightly said to be

the lifeblood of an enterprise. Without adequate finance, no enterprises can possibly

accomplish its objectives. Finance refers to the management of flow of money through

an organization. A subjective measure of how well a firm can use assets from its

primary mode of business and generate revenues. Financial statement analysis is largely

a study of relationship among the various financial factors in a business as disclosed by

a single set of statements. It is a process of evaluating the relationships component parts

of a financial statement to obtain a better understanding of a firm’s positions and

performance. Financial statements analysis is an attempt to determine the significance

and meaning of the financial data so that forecast may be made of the future ability to

pay interest and debt maturities a (both current and long term) and profitability of a

sound policy.

Analyzing financial performance is the process of evaluating the common parts of

financial statements to obtain a better understanding of firm’s position and performance.

Financial performance analysis enables the investors and creditors evaluate past and

current performance and financial position, and to predict future performance. Financial

statement is used to judge the profitability and financial soundness of a firm. Financial

performance is the selection, evaluation, and interpretation of financial data, along with

other pertinent information, to assist in investment and interpretation of financial

decision-making. Financial analysis may be used internally to evaluate issues such as

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employee performance, the efficiency of operations and credit policies, and externally

to evaluate potentials investments and the credit worthiness of borrowers, among other

things The analysis draws the financial data needed in financial from many sources. The

primary source is the data provided by the firm itself in its annual report and required

disclosures. The annual report and required disclosures. The annual report comprises the

income statement, the balance sheet, and the statement of cash flows, as well as to these

close statements certain businesses are required by securities laws to disclose addition

anal information. Besides information that companies are required financial statements,

other information is readily available for financial analysis for example information

such as the market prices of security of publically –trades corporations can be found in

the financial press on the electronics media daily. Similarly, information on stock price

indicates for industries for industries and for the market as a whole as available in the

financial press. Another source of information is economic data, such as the gross

domestic product and consumer price index. which may be useful in assessing the

recent performance or future prospects of affirm or industry? Suppose you are

evaluating a firm that owns a chain of retail outlets. Financial ratios reading prepared by

Pamela Peterson-drake you need to judge the firm’s performance and financial

condition? you need financial data but it does not tell the whole story. You also need

information’s on consumer spending, producer prices, consumer prices and the

completion. this is economic data that is readily available from government and private

sources. Besides financial statements data, market data, economics data, in financial

analysis you also to examine events that may help explain the firms present conditions

and may have a bearing on its future prospects. For example, did the firm recently incur

some extraordinary losses? is the firm developing a new product? That be incorporated

in financial analysis.

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RATIO ANALYSIS

A ratio analysis is a quantitative analysis of information contained in a company’s

financial statements. Ratio analysis is based on line items in financial statements like the

balance sheet, income statement and cash flow statement; the ratios of one item – or a

combination of items - to another item or combination are then calculated. Ratio

analysis is used to evaluate various aspects of a company’s operating and financial

performance such as its efficiency, liquidity, profitability and solvency. The trend of

these ratios over time is studied to check whether they are improving or deteriorating.

Ratios are also compared across different companies in the same sector to see how they

stack up, and to get an idea of comparative valuations. Ratio analysis is a cornerstone of

analysis. Ratio analysis refers to the analysis and interpretation of the figures appearing

in the financial statements (i.e., Profit and Loss Account, Balance Sheet and Fund Flow

statement etc.). It is a process of comparison of one figure against another. It enables the

users like shareholders, investors, creditors, Government, and analysts etc. to get better

understanding of financial statements.

DEFINITION

Khan and Jain define the term ratio analysis as “the systematic use of ratios to

interpret the financial statements so that the strengths and weaknesses of a firm as well

as its historical performance and current financial conditions can be determined.”

ADVANTAGES OF RATIO ANALYSIS

Forecasting and Planning:

The trend in costs, sales, profits and other facts can be known by computing ratios of

relevant accounting figures of last few years. This trend analysis with the help of ratios

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may be useful for forecasting and planning future business activities.

Budgeting:

Budget is an estimate of future activities on the basis of past experience. Accounting

ratios help to estimate budgeted figures. For example, sales budget may be prepared

with the help of analysis of past sales.

Indication of Overall Profitability:

The management is always concerned with the overall profitability of the firm. They

want to know whether the firm has the ability to meet its short-term as well as long-term

obligations to its creditors, to ensure a reasonable return to its owners and secure

optimum utilization of the assets of the firm. This is possible if all the ratios are

considered together.

Indication of Liquidity Position:

Ratio analysis helps to assess the liquidity position i.e., short-term debt paying ability of

a firm. Liquidity ratios indicate the ability of the firm to pay and help in credit analysis

by banks, creditors and other suppliers of short-term loans.

Aid to Decision-making:

Ratio analysis helps to take decisions like whether to supply goods on credit to a firm,

whether bank loans will be made available etc.

LIMITATIONS OF RATIO ANALYSIS

Ratios Account for one Variable:

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Since ratios account for only one variable, they cannot always give correct picture since

several other variables such Government policy, economic conditions, availability of

resources etc. should be kept in mind while interpreting ratios

Limitations of Financial Statements:

Ratios are calculated from the information recorded in the financial statements. But

financial statements suffer from a number of limitations and may, therefore, affect the

quality of ratio analysis.

Changes in Price Level:

Fixed assets show the position statement at cost only. Hence, it does not reflect the

changes in price level. Thus, it makes comparison difficult.

Different Accounting Policies:

Different accounting policies regarding valuation of inventories, charging depreciation,

etc. make the accounting data and accounting ratios of two firms non-comparable.

1.2 COMPANY PROFILE

Accenture began in the 1950s as the technology and business consulting division of

Arthur Andersen. In 1989, Arthur Andersen and Andersen Consulting (which is now

Accenture) became legally separate units from each other. Andersen Consulting was

paying Arthur Andersen 15% of its profits each year, but in 1998, Andersen Consulting

put that year and the following year's payments into escrow and filed a breach of

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contract. In August 2000, because of Arbitration, Andersen Consulting broke all ties

with Andersen Worldwide Société Cooperative and Arthur Andersen. Because of this,

the company was looking to rename and asked employees to come up with names or

ideas that embodied what the company stood for. An employee from Norway coined the

idea of “accent on the future” because Accenture has always been forward looking, it’s

how they keep their competitive edge. So, on January 1, 2001, Andersen Consulting

adopted its current name “Accenture”. They are based out of Dublin, Ireland, where

they pay 3.5% tax as opposed to 20-24% in the United States.

Accenture is a worldwide global management, consulting, and expert administrations

Services Company that provides strategy, consulting, digital, technology, and operations

services. The word “Accenture” is evidently copied or derived from “Accent of the

future”. The name speaks its Will to be a worldwide Consulting pioneer and superior

worker and furthermore proposed that the name ought not to be hostile in any nation in

which Accenture works. Accenture Strategy gives business technique, innovation

system, and activities procedure services. Accenture Consulting unit provides

innovation, business, and administration services to its customers. Accenture Digital

system provides digital marketing, analytics, and mobility services to its customers

spread all over the world. Accenture Technology focuses on new and innovative

technological solutions, and its implementations, delivery and research and

development, including its technological Labs for emerging technologies. Accenture

Operations centers on service model of service delivery system. This includes business

process outsourcing, IT services, cloud services, managed operations, security, and

infrastructure services. The company also operates a “National Security Services”

business. In this case study of Accenture, we tried to understand the sustainable

business strategies by analyzing the various products of the company, analyzing the HR

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strategy of the company, analyzing the various services of the company, analyzing the

performance of the company with other companies, and analyzing the environmental

strategy of the company. Finally, the internal abilities of Accenture are discussed by

means of SWOT analysis.

Why Accenture?

Accenture is a talent and innovation company that has 738,000 employees serving

clients in more than 120 countries. At the base of the company lies technology, it is the

driver of change. Therefore, they try to stay ahead of most companies when it comes to

their technology development. Combining their strength in technology, unmatched

industry experience, people, and global delivery capability has allowed them to deliver

tangible results effectively to clients. They have various other sectors, such as Strategy

and Consulting, Technology, Operations, Industry X, and Accenture Song. Each group

works for one another and together we effectively leverage our work and expertise.

Accenture is well known for how they treat its employees and clients. They were

recognized as Fortune’s World’s Most Admired companies, landing #21 on the list. All

while increasing brand value by 10% to $39.9B, which placed them #1 on Finance Most

Valuable IT Services Brand. They are also ranked #183 on Fortunes Global 2000, are

one of seven “all-stars” on Wall Street Journal Management's top 250 and are

recognized among Ethisphere’s World’s Most Ethical Companies. I could go on and on

about how many awards and recognitions Accenture has received this past year. Even

the CEO, Julie Sweet, is ranked #2 on Fortune’s Most Powerful Women List. The

company’s management and culture are top-notch, which in opinion has transformed

Accenture into the powerhouse that it is. The Accenture is a fortune Global 500

company; it has been started in Dublin, Ireland, since 1st September 2009. In 2017, the

organization revealed net incomes of $34.9 billion, with in excess of 425,000 employees

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serving customers in excess of 200 urban areas in 120 countries [1-5]. In 2015, the

organization had around 130,000 workers in India, around 48,000 in the US, and around

50,000 in the Philippines. Accenture's present customers incorporate 95 of the Fortune

Global 100 and more than seventy-five percent of the Fortune Global 500. The principal

objective of Accenture is to accomplish a gender balanced or gender equal workspace.

Accenture contracts or hires workers as per their legitimacy. Accenture accomplices

with in excess of 75% of the Fortune Global 500, driving advancement to enhance the

way the world works and lives [6-9]. With skill crosswise over in excess of 40

enterprises and all business capacities, they convey transformational outcome for a

highly demanding, competitive and advanced world. Accenture is serving customers in

around of 120 nations. Accenture has shown up in "World's Most Admired Companies"

list. They have 5k patents and patent pending applications in 44 countries around the

globe. In the present business condition, organizations need to consistently rethink

themselves. At Accenture, they adopt an advancement

Mission and Vision

Purpose “To deliver on to promise of technology and human ingenuity”. We embrace

the power of change to create long-lasting value in every direction for our clients,

people and communities.

Goal : “A world of talent one team”. Across 200 cities and 19 industries, we work as

one team with a common goal- to create value everywhere by embracing change.

COMPANY DIRECTORS
AJAY VIJ – MANAGING DIRECTOR
REKHA M. MENON – DIRECTOR

CONTACT DETAILS

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GI GROUP- ACCENTURE SOLUTIONS INDIA PRIVATE LIMITED
Unitech Hi-Tech Structures Limited,
Plot no. DH1, DH2, DH3, Next to Gate No:3,
Action Area 1 New Town, Rajarhat, Kolkata,
West Bengal, India, 700156

CHAPTER 2 – REVIEW OF LITERATURE

2.1 LITERATURE REVIEW

A literature review is a critical and in-depth evaluation of previous research. It is a

summary and synopsis of a particular area of research, allowing anybody reading the

paper to establish why the study is pursuing this particular research. A good literature

review expands on the reasons behind selecting a particular research question. A

literature review is likewise not a collection of quotes and paraphrasing from other

sources. A good literature review should critically evaluate the quality and findings of

the research.

Maria Zain (2018), in this article he discusses about the return on assets is an important

percentage that shows the company’s ability to use its assets to generate income. He

said that a high percentage indicates that company’s is doing a good utilizing the

company’s asset to generate income. He notices that the following formula is one

method of calculating the return on assets percentage. Return on Assets = Net

Profit/Total Assets. The net profit figure that should be used is the amount of income

after all expenses, including taxes.

James Clausen (2018), in this article expresses about the liquidity ratio. He Pronounce

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that it is analysis of the financial statements is used to measure company performance. It

also analyses of the income statement and balance sheet. Investors and lending

institutions will often use ratio analyses of the financial statements to determine a

company’s profitability and liquidity. If the ratios indicate poor performance, investors

may be reluctant to invest. Therefore, the current ratio or working capital ratio,

measures current assets against current liabilities

Gopinathan Thachappilly (2018), in his studies, states that the Liquidity Ratios help

Good Financial. He knows that a business has high profitability, it can face short-term

financial problems and its funds are locked up in inventories and receivables not

realizable for months. Any failure to meet these can image its reputation and

creditworthiness and in extreme cases even lead to bankruptcy.

Jo Nelgadde (2018), in this thesis, he briefly discusses about the asset management

ratio. It divided into different types of categories. He states that about the used to

analyze accounts receivable and other working capital figures to identify significant

changes in the company’s operations and financial accounts. He said that there are two

categories about this ratio such as account receivable turnover and average age of

account receive.

Al-Aameri and Alrikabi (2019) was focusing on one of the important techniques in

financial analysis, namely, the financial ratios, for the purpose evaluating the

performance of petroleum projects company, and to find out the main strength and

weakness points, so as to suggest the remedial actions for treatment of negative points

and enhance the positive one. The papers contains detail study for the data included in

financial statements to explain the financial performance of the company, and that will

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help the management for planning the future according to the previous performance,

and also contain the converting process of the data of financial statements to meaningful

information through several techniques, the financial statement analysis among them.

Lucia Jenkins (2019), Understanding the use of various financial ratios and techniques

can help in gaining a more complete picture of a company's financial outlook. He thinks

the most important thing is fixed cost and variable cost. Fixed costs are those costs that

are always present, regardless of how much or how little is sold. Some examples of

fixed costs include rent, insurance and salaries. Variable costs are the costs that increase

or decrease in ratios proportion to sales.

A study in Australian financial institutions (Elizabith & Greg, 2019) showed that all

financial performance measures as interest margins, return on assets, and capital

adequacy are positively correlated with customer service quality scores. Many

researchers have been too much focus on asset and liability management in the banking

sector, (Arzu & Gokhan, 2019) discussed the asset and liability management in

financial crisis. They argued that an efficient asset-liability management requires

maximizing bank’s profit as well as controlling and lowering various risk, and their

study showed how shifts in market perceptions can create trouble during crisis.

Medhat, (2019) used multiple regression analysis and correlations to test the financial

performance of Omani Commercial banks. He used the ROA and the interest income as

performance proxies (dependent variables), and the bank size, the asset management

and the operational efficiency as independent variables. He found positive strong

correlation between financial performance and operational efficiency and a moderate

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correlation between ROA and bank size.

Khan (2019) found that the bank with higher total capital, deposits, credits, or total

assets does not always mean that has better profitability performance. According to Dr.

M. Ravichandran the financial performance can be measured by using various financial

tools such as profitability ratio, solvency ratio, comparative statement, etc. Based on the

analysis, findings have been arrived that the company has got enough funds to meet its

debts & liabilities, the income statement of the company shows sales of the company

increased every year at good rate and profit also increased every year.

M. Ganga (2020) on the evaluation of financial performance of Equitas Micro Finance

Private Limited in Ahmedabad. According to them financial analysis is important to

plan and control the firm’s financial resources. They adopted various research

techniques to find the evaluation of financial performance of the organization. They

found that the managers must concentrate on gray area which would be useful for future

growth of the company.

Dr. M. Ravichandran (2020) the financial performance can be measured by using

various financial tools such as profitability ratio, solvency ratio, comparative statement,

etc. Based on the analysis, findings have been arrived that the company has got enough

funds to meet its debts & liabilities, the income statement of the company shows sales

of the company increased every year at good rate and profit also increased every year.

Gopinathan Thachappilly (2020), in this article he discusses about the Financial Ratio

Analysis for Performance evaluation. Its analysis is typically done to make sense of the

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massive number of numbers presented in company financial statements. It helps

evaluate the performance of a company, so that investors can decide whether to invest

in that company. Here we are looking at the different ratio categories in separate

articles in different aspect of performance ratios, liquidity ratios, debt

ratios,performance ratios, investment evaluation ratio.

CHAPTER 3 – RESEARCH METHODOLOGY

3.1 INTRODUCTION

Research Methodology is a systematic way to solve a research problem. It includes

various steps that are generally adopted by a researcher in studying the problem along

with the logic behind them. The present study was conducted at Gi Group- Accenture

Solutions India Private Limited. The study depends mainly on the secondary data

namely the annual reports of the company. Five years annual reports had been collected

from the company. Data had also been collected from text books, journals, newspapers,

magazines and internet.

3.2 STATEMENT OF THE PROBLEM

Ratio analysis is used to evaluate various aspects of a company’s operating and

financial performance such as its efficiency, liquidity, profitability and solvency. The

trend of these ratios over time is studied to check whether they are improving or

deteriorating. Ratio analysis is widely used as a powerful tool of financial statement

analysis to check the company’s operations or financial performance is difficult task by

some other tools for the company. So, the study on ratio analysis at Gi Group-
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Accenture Solutions India Private Limited, is taken as the study to measure the

performance of the company.

3.3 OBJECTIVES OF THE STUDY

Primary objective:

To study on ratio analysis towards the Gi Group- Accenture Solutions India Private

Limited.

Secondary objectives:

To study the short-term liquidity positions of company.

To study the efficiency of inventory management.

To study the effectiveness of credit management of the company.

To analyse the long-term solvency of the business concern.

To study how best the working capital is utilized in the company.

3.4 SCOPE OF THE STUDY

The scope of the study defined below in terms of concept adopted and period under

focus.

The study of management of working capital is only the Gi Group- Accenture Solutions

India Private Limited., Ahmedabad.

Thus, the whole purpose of the project is to analyze the past and present performance of

the company on various financial areas like cash, inventories and receivables. Since the

past performance data essential for predicting future planning process

3.5 RESEARCH DESIGN

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“A Research Design is the arrangement of conditions for collection and analysis of data

in a manner that aims to combine relevance to the research purpose with the economy in

procedure”. In fact, the research design is the conceptual structure with in which

research is conducted; it constitutes the blue print for the collection, measurement and

analysis of data, the research design utilized in this study is analytical research.

3.6 PERIOD OF STUDY

The duration taken by the researcher for the data collection and analysis regarding the

ratio analysis of Gi Group- Accenture Solutions India Private Limited. for three months.

The data used are of last five years from 2019 – 2024

3.7 METHOD OF COLLECTION

The study basically uses primary and secondary data. Primary data means data which is

fresh collected data. Secondary data means the data that are already available. Generally

speaking, secondary data is collected by some organizations or agencies which have

already been processed when the researcher utilizes secondary data. The process of

secondary data collection and analysis is called desk research.

3.8 TOOLS USED RATIO ANALYSIS

A ratio is the quotient of two mathematical expressions and the relationship between

two or more numbers. In financial analysis, a ratio is used as an index or yardstick for

evaluating the financial position and performance of a firm. The relationship between

the two accounting figures expressed mathematically is known as a financial ratio. It

involves comparison for a useful interpretation of the financial statements and it should

be compared with some standards

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 Working capital ratio

 Inventory Turnover ratio

 Debtors’ turnover ratio

 Average collection period

 Net profit ratio

 Return on total assets

 Return on investment

 Return on shareholders’ Funds

 Solvency ratio

 Gross profit ratio

 Return on assets ratio

 Operating profit ratio.

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 CHAPTER 4 – DATA ANALYSIS AND INTERPRETATION

4.1: WORKING CAPITAL RATIO

The working capital ratio, also called the current ratio, is a liquidity ratio that measures

a firm’s ability to pay off its current liabilities with current assets. The working capital

ratio is important to creditors because it shows the liquidity of the company.

Working capital ratio = Net working capital ÷ Net assets

Net

Working capital

Year Net assets Ratio

2019-2020 22.91 117.92 0.19

2020-2021 22.72 127.80 0.18

2021-2022 11.92 124.38 0.10

2022-2023 12.46 133.73 0.09

2023-2024 1.83 132.51 0.01

TABLE NO: 4.1.1 -WORKING CAPITAL RATIO

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Interpretation

The above table indicates that the Working capital ratio is 0.19 in the year of 2019-

20. It has decreased to 0.18 in the year of 2020-21. It has decreased to 0.10 in the year

of 2021-22. It has further decreased to 0.09 and 0.01in the year of 2022-23 and 2023-24

respectively.

Year: 2019-2020 2020 -2021 2021 – 2022 2022 – 2023 2023 – 2024

CHART NO: 4.1.1- WORKING CAPITAL RATIO

INVENTORY TURNOVER RATIO

This ratio indicates the efficiency of the firm in producing and selling its product. This

ratio indicates the number of times inventory is replaced during the year. It measures
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how quickly inventory is sold. The inventory turnover reflects the efficiency of the firm

in producing and selling its products. This ratio indicates the velocity or the movement

of goods during the year. It is calculated as follows.

Inventory turnover ratio = Cost of goods sold ÷Average inventory

INVENTORY TURNOVER RATIO

Year Cost of goods Average inventory Ratio

sold

2019-

2020 213.30 283.54 0.75

2020-

2021 3.42 56.69 0.06

2021-

2022 1.09 52.72 0.02

2022-

2023 -19.01 61.14 -0.31

2023-

2024 20.10 70.10 0.29

TABLE NO. 4.1.2 INVENTORY TURNOVER RATIO

Interpretation

The above table indicates that the inventory turnover ratio is 0.75 in the year of 2019-

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20. It has decreased to 0.06 in the year of 2020-21. It has further decreased to 0.02 and -

0.31 in the year of 2021-22 and 2022-23 respectively. It has increased to 0.29 in the

year of 2023-24.

YEAR 2019-2020 2020 -2021 2021 – 2022 2022 – 2023 2023 – 2024

CHART NO 4.1.2 INVENTORY TURNOVER RATIO.

DEBTORS TURNOVER RATIO

Ratio of net credit sales to average trade debtors is called debtors turnover ratio. It is

also known as receivables turnover ratio. This ratio is expressed in times. It can be

calculated as

Debtors’ turnover ratio = sales ÷ debtors

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 DEBTORS TURNOVER RATIO

Year Sales Debtors Ratio

2019-2020 208.95 31.44 6.65

2020-2021 205.42 33.58 6.12

2021-2022 242.33 27.00 8.98

2022-2023 255.96 27.98 9.15

2023-2024 217.49 20.46 10.63

TABLE NO: 4.1.3 DEBTORS TURNOVER RATIO

Interpretation

The above table indicates that the debtor’s turnover ratio is 6.65 in the year of 2019-

20. It has decreased to 6.12 in the year of 2020-21. It has increased to 8.98 in the year of

2021-22. It has further increased to 9.15 and 10.63 in the year of 2022-23 and 2023-24

respectively.

YEAR 2019-2020 2020 -2021 2021 – 2022 2022 – 2023 2023 – 2024

CHART NO 4.1.3 DEBTORS TURNOVER RATIO COLLECTION PERIOD

AVERAGE COLLECTION PERIOD

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The average collection period is the approximate amount of time that it takes for a

business to receive payments owed in terms of accounts receivable. The average

collection period is calculated by dividing the average balance of accounts receivable by

total net credit sales for the period and multiplying the quotient by the number of days

in the period. To find the collection period

Collection Period = 360 ÷ Debtors’ turnover ratio

AVERAGE COLLECTION PERIOD

Days in a Debtors’ turnover Debt collection

Year year ratio period (days)

2019-2020 365 6.65 54.92

2020-2021 365 6.12 59.67

2021-2022 365 8.98 40.67

2022-2023 365 9.15 39.90

2023-2024 365 10.63 34.34

TABLE NO: 4.1.4 AVERAGE COLLECTION PERIOD

Interpretation

The above table indicates that the average collection period is 54.92 in the year of 2019-

20. It has increased to 59.67 in the year of 2020-21. It has further increased to

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40.67 in the year of 2021-22. It has decreased to 39.90 in the year of 2022-23. It has

further decreased to 34.34 in the year of 2023-24.

YEAR 2019-2020 2020 -2021 2021 – 2022 2022 – 2023 2023 –

2024

CHART NO: 4.1.4 AVERAGE COLLECTION PERIOD NET PROFIT RATIO

NET PROFIT RATIO

Net profit is obtained when operating expenses interest and taxes are subtracted from

the gross profit. The ratio is measured as

Net profit margin = profit after tax ÷ Sales

This ratio is established a relationship between net profit and sales and indicates

managements efficiency in manufacturing, administrating and selling the products. This

ratio is the overall measure of the firm’s ability to turn each rupee sales into net profit.

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 NET PROFIT RATIO

Year Net profit Net sales Ratio

2019-2020 8.15 208.95 3.90

2020-2021 0.42 205.42 0.20

2021-2022 3.46 242.33 1.43

2022-2023 9.37 255.96 3.66

2023-2024 9.11 217.49 4.19

TABLE NO: 4.1.5 NET PROFIT RATIO

Interpretation

The above table indicates that the net profit ratio is 3.90 in the year of 2019-20. It has

decreased to 0.20 in the year of 2020-21. It has increased to 1.43 in the year of 2021-22.

It has increased to 3.66 in the year of 2022-23. It has further increased to

4.19 in the year of 2023-2024.

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Year 2019-2020 2020 -2021 2021 – 2022 2022 – 2023 2023 – 2024
CHART NO: 4.1.5 - NET PROFIT RATIO

RETURN ON TOTAL ASSETS

Return on assets is a measure of how effectively the firm's assets are being used to

generate profits. It is defined as:

Return on Assets = Net profit ÷ Total Assets

RETURN ON TOTAL ASSETS

Year Net profit Total assets Ratio

2019-2020 8.15 117.92 6.91

2020-2021 0.42 127.80 0.33

2021-2022 3.46 124.38 2.78

2022-2023 9.37 133.73 7.01

2023-2024 9.11 132.51 6.87

TABLE NO: 4.1.6 RETURN ON TOTAL ASSETS

Interpretation

The above indicates that the return on total assets ratio is 6.91 in the year of 2019-

20. It has decreased to 0.33 in the year of 2020-21. It has increased to 2.72 in the year of

2021-22. It has further increased to 7.01 in the year of 2022-23. It has decreased to 6.87

in the year of 2023-2024.

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YEAR 2019-20 2020 -21 2021 – 22 2022 –23 2023 –24

CHART NO: 4.1.6 RETURN ON TOTAL ASSETS

8. Return on investment

The term in investment may refer to total assets or net assets. The conventional

approach of calculating return on investment is to divide profit after tax by investment.

Return on investments = Operating profit ÷ Capital employed

Capital

Year Operating profit employed Ratio

2019-2020 34.11 40.85 0.84

2020-2021 22.81 50.77 0.45

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 2021-2022 26.81 39.27 0.68

2022-2023 38.26 38.91 0.98

2023-2024 38.66 57.11 0.68

TABLE NO: 4.1.7 RETURN ON INVESTMENT

Interpretation

The above table indicates that the return-on-investment ratio is 0.84 in the year of 2019-

20. It has decreased to 0.45 in the year of 2020-21. It has increased to 0.68 in the year of

2021-22. It has further increased to 0.98 in the year of 2022-23. It has decreased to 0.68

in the year of 2023-24.

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Year 2019-20 2020 -21 2021 – 22 2022 – 23 2023 – 24

CHART NO: 4.1.7 RETURN ON INVESTMENT

RETURN ON SHAREHOLDERS FUNDS

The Return on Shareholders’ Funds ratio is a measure of the profit for the period which

is available to the ordinary shareholders with the ordinary shareholders' stake in a

business.

Return on shareholders’ funds = Net profit after interest & tax ÷ Shareholders’ fund

RETURN ON SHAREHOLDERS FUNDS

Net profit after Shareholder’s
Year interest & tax Fund Ratio
2019-2020 8.15 56.23 14.49
2020-2021 0.42 49.79 0.84
2021-2022 3.46 50.05 6.91
2022-2023 9.37 47.55 19.71
2023-2024 9.11 39.22 23.23
TABLE NO: 4.1.8 RETURN ON SHAREHOLDERS FUNDS

Interpretation

The above table indicates that the return on shareholders’ funds ratio is 14.49 in the year

of 2019-20. It has decreased to 0.84 in the year of 2020-21. It has increased to

6.91 in the year of 2021-22. It has increased to 19.71 in the year of 2022-23. It has
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further increased to 0.79 in the year of 2023-24

YEAR 2019-2020 2020-2021 2021 – 2022 2022 –23 2023 – 2024

CHART NO: 4.1.8 RETURN ON SHAREHOLDERS FUNDS

SOLVENCY RATIO

Solvency ratio is a key metric used to measure an enterprise’s ability to meet its debt

and other obligations. The solvency ratio indicates whether a company’s cash flow is

sufficient to meet its short-term and long-term liabilities. The lower a company's

solvency ratio, the greater the probability that it will default on its debt obligations.

Solvency ratio = Total debt ÷ Total tangible assets

SOLVENCY RATIO

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 Total tangible

Year Total debt Assets Ratio

2019-2020 61.69 168.71 0.37

2020-2021 78.01 176.40 0.44

2021-2022 74.33 182.26 0.41

2022-2023 86.18 205.75 0.42

2023-2024 93.29 190.70 0.49

TABLE NO: 4.1.9 SOLVENCY RATIO

Interpretation

The above table 4.9 indicates that the solvency ratio is 10.37 in the year of 2019-20. It

has increased to 0.44 in the year of 2020-21. It has decreased to 0.41 in the year of

2021-22. It has increased to 0.42 in the year of 2022-23. It has further increased to 0.49

in the year of 2023-2024.

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Year 2019-2020 2020 -2021 2021 – 2022 2022 – 2023 2023 – 2024

CHART NO: 4.1.9 SOLVENCY RATIO

GROSS PROFT RATIO

The first profitability ratio in relation to sales is the gross profit margin. It is calculated

as

Gross profit margin = - Gross Profit ÷ Sales

This ratio indicates the average spread between the cost of goods sold and sales

revenue. A high gross profit margin ratio is a sign of goods management. It is relative to

the industry average implies the firm able to produce at relatively lower cost.

GROSS PROFIT RATIO

Year Gross profit Net sales Ratio

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 2019-2020 65.73 208.95 31.46

2020-2021 53.46 205.42 26.02

2021-2022 70.92 242.33 29.27

2022-2023 69.97 255.96 27.34

2023-2024 69.93 217.49 32.15

TABLE NO: 4.1.10 GROSS PROFIT RATIO

Interpretation

The above table indicates that the gross profit ratio is 31.46 in the year of 2019-20. It

has decreased to 26.02 in the year of 2020-21. It has increased to 29.27 in the year of

2021-22. It has decreased to 27.34 in the year of 2022-23. It has increased to 32.15 in

the year of 2023-24.

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Year 2019-20 2020- 21 2021-22 2022-23 2023-24

CHART NO: 4.1.10 GROSS PROFIT RATIO

OPERATING PROFIT RATIO

The operating margin ratio, also known as the operating profit margin, is a profitability

ratio that measures what percentage of total revenues is made up by operating income.

In other words, the operating margin ratio demonstrates how much revenues are left

over after all the variable or operating costs have been paid.

Operating profit ratio = Operating profit ÷Net sales

OPERATING PROFIT RATIO

Year Operating profit Net sales Ratio

2019-2020 34.11 208.95 16.32

2020-2021 22.81 205.42 11.10

2021-2022 26.81 242.33 11.06

2022-2023 38.26 255.96 14.95

2023-2024 38.66 217.49 17.78

TABLE NO: 4.1.11 OPERATING PROFIT RATIO

Interpretation

The above table indicates that the operation profit ratio is 16.32 in the year of 2019-

2020. It has decreased to 11.10 in the year of 2020-2021. It has further decreased to

11.06 in the year of 2021-2022. It has increased to 14.95 in the year of 2022- 2023. It

has increased to 17.78 in the year of 2023-2024.

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YEAR 2019-20 2020 -21 2021 – 22 2022 – 23 2023 – 24

CHART NO. 4.1.11 CHART ON OPERATING PROFIT RATIO

CHAPTER 5: FINDINGDS, SUGGESTIONS AND CONCLUSION.

5.1 FINDINGS

 Positive Financial Growth and Progress:

The Gi group- Accenture Solutions India Private Limited has shown significant

progress within a short period, with record-breaking turnover. This indicates strong

business performance and an expanding market presence.

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  Good Liquidity Position:

The analysis of liquidity ratios shows that the company has maintained a satisfactory

ability to meet its short-term obligations. This suggests that the company is financially

stable and can manage its immediate liabilities without difficulty.

 High Turnover Ratio:

A high turnover ratio, assessed over a five-year period, indicates that the company is

effectively converting its assets into revenue. This is a positive sign of efficient asset

utilization and operational performance.

 Strong Financial Performance:

The company has shown solid financial performance, which suggests that it is

positioned well in the market, capturing a significant share and showing consistent

growth. This is crucial for attracting investors and sustaining competitive advantage.

 Effective Fund Allocation:

Proper allocation of funds between fixed and current assets indicates sound financial

management. This approach enables the company to ensure smooth operations and

maintain liquidity while also investing in long-term growth.

5.2 SUGGESTIONS

 The Gi Group- Accenture Solutions Private Limited., within a short span of time

is making very good progress. The company trademark was its highest ever

turns over during the progress, further the capacity utilization of the plants and

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 the various operational efficiency achievements further the capacity signifies

growth of the organization .it can take up the following suggestions based on the

study.

 Liquidity ratio here reflects the firm ability to meet short term current obligation.

Analysis of these ratio revealed that the liquidity position has been satisfactory.

 Turnover ratio indicates the turnover position of the company, here ratio reflects

high turnover on the basis of five years is good.

 The financial performance of the company is good, so this company capture

high market share and growth.

 Fund is proper allocated to fixed assets and current assets. It should possible for

the company to carry on the work smoothly.

5.3 LIMITATIONS OF THE STUDY

 The project work study was mainly based upon the information from the

secondary, mainly balance sheet, profit and loss account, the annual report and

accounts book by only giving limited information regarding the performance of

the company.

 The study has been restricted span of time 5 years only.

 As the financial statements are prepared on the basis of the Going Concern

Concept, it does not give the exact position. Thus, accounting concept and

conventions cause serious limitations to financial analysis.

 Limitation of Time and collection of primary data.

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5.4 CONCLUSION

A Successful management of the working capital in any concern will ensure the success

of business. In The Gi Group- Accenture Solutions India Private Limited., working

capital management is in good condition. the level of profit is increasing in nature.

However, to show the better business result, the management may concentrate on

increases of sales, sales level before changing credit policy variable, credit policy helps

to retained its old customer and create new customer by coming them away from

competitors. Better co-ordination between each department is very important, like sales,

production, purchase because it helps to avoid the credit risk and it decrease the debt

collection days.

5.5 FUTURE SCOPE OF THE STUDY

1. Accenture is a global management consulting, technology services and

outsourcing company which is providing technology services to Grameen

Telenor, along with another Telenor such Pakistan Telenor, Malaysian Telenor,

Thailand Telenor etc.

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 2. Some future implications you could see in the future for the company will relate

mostly to the use of artificial intelligence in financial performance analysis.

3. During my internship, they released a metaverse, which is a platform that

resembles the real world and has definite boundaries and coordinates.

4. There would be extensive use of “Financial modelling” which refers to the

process of creating the company's expenses and earnings as spreadsheet that is

used for calculating impact of future events. It will be used in strategic planning

for testing scenarios, calculating the cost of new projects, budget decisions and

allocating corporate resources.

5. A place where the digital and physical worlds come together! Each person has a

character and belongings that they own in this new world. This allowed teams to

meet if the group was working virtually. It’s a real platform to design and create

better results. Accenture should be pushing it even more now that the new fiscal

year has started for them.

REFERENCES

Books

1. Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice.

15th ed. Cengage Learning.

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 2. Ravichandran, N. (Ed.). (2005). Vision 2020: The Strategic Role of Operational

Research (Vol. 1). Allied Publishers.

3. Horngren, C. T., Sundem, G. L., & Stratton, W. O. (2013). Introduction to Management

Accounting. 15th ed. Pearson.

Academic Journals

4. Chan, K. C. (2020). "Performance analysis in service industries: A study on IT consulting

firms." Journal of Business Research, 112, 395-403.

5. Hossain, A., Khan, A. A. Y., & Khalid, M. S. (2019). An empirical analysis of capital

structure and firm’s financial performance in a developing country. Global Journal of

Management and Business Research, 19(3), 8-16.

6. Sharma, R., & Kumar, S. (2019). "Financial Performance Analysis of Indian IT firms: A

comparative study." International Journal of Applied Business and Economic Research,

17(1), 459-474.

Industry Reports

7. IBEF. (2023). "IT & BPM Industry in India: Report." India Brand Equity Foundation.

8. NASSCOM. (2023). "NASSCOM Strategic Review 2023." National Association of

Software and Service Companies.

9. Accenture. (2023). Annual Report 2022-2023. Accenture plc.

10. Accenture. (2022). Annual Report 2021-2022. Accenture plc

11. Accenture. (2021). Annual Report 2020-2021. Accenture plc

12. GI Group. (2023). Annual Report 2022-2023. GI Group.

Business News Articles

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 13. Sharma, A. (2023, July 15). "Accenture's growth strategy in India: Analyzing the

financial impact." Economic Times.

14. Khan, S. (2023, August 25). "The evolving landscape of staffing solutions in India: The

case of GI Group." Business Standard.

Websites

15. Accenture. (n.d.). "Accenture India." Retrieved from

[www.accenture.com] (https://www.accenture.com/in-en )

16. GI Group. (n.d.). "GI Group India." Retrieved from [www.gigroup.in]

(https://www.gigroup.in )

Additional Resources

17. SEC Filings (U.S. Securities and Exchange Commission). Access through

[SEC EDGAR]

(https://www.sec.gov/edgar/searchedgar/companysearch.html ).

18. MarketLine. (2023). "Company Profile: Accenture plc." MarketLine

Advantage.

FIELD WORK

 INTERN AS JUNIOR FINANCIAL ANALYST.

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