1. “A STUDY ON FINANCIAL ANALYSIS OF OWM” IshudeepKaur MBA 2C

2. Contents Introduction to Textile Industry Introduction to Nahar Group Introduction to OWM Ltd. Introduction to Project Research Objectives Research Methodology Financial Analysis & Interpretation Findings Conclusion

3. Introduction to Textile Industry

4. Source -http://www.ibef.org/download/Textiles_Apparel_060710.pdf

5. Source-http://www.ibef.org/download/Textiles_Apparel_060710.pdf

6. Source- http://www.ibef.org/download/Textiles_Apparel_060710.pdf

7. Introduction to Nahar Group

8. Source- http://www. naharsaga.in/

10. NaharGroup of Companies Source - http://www.naharsaga.in/

11. Introduction to OswalWoollen Mills Ltd

12. Source- http://www.owmnahar.in/

13. Source- http://www.owmnahar.in/ &Balance sheet

14. Organizational Structure of OWM

16. Departments of OWM

17. SWOT Analysis of OWM Strengths Extensive experience of the promoters of OWM. Many persons are working here for more than 50 yrs. Strong dealer network and mutual relationship with them. Certification from Wool Mark and ISO 9002. OWM has its brand image and they can easily arrange the finance for the operations of the company.

20. Introduction to Project

21. Financial Statements Financial statements are the outcome of summarizing process of accounting. Statements are prepared as an end result of financial accounting and are major sources of financial information of an enterprise. Financial statements serve as the basis for decision making by the management as well as other outsiders who are interested in the affairs of the firm.

23. To analyze financial position of the company.

25. Tools of Financial Analysis

28. Ratio Analysis

30. Current Ratio Current Ratio = Current Assets Current Liabilities

31. Quick Ratio Quick Ratio = Quick Assets Current Liabilities

32. Absolute Liquid Ratio Absolute Liquid Ratio = Cash in hand +Cash at bank + Marketable Securities Current Liabilities

34. Inventory Turnover Ratio Inventory Turnover Ratio = Cost of Goods Sold Average Inventory

35. Inventory Conversion Period Inventory Conversion Period = 365 days Inventory Turnover Ratio

36. Debtors Turnover Ratio Debtors Turnover Ratio = Net Credit Sales Average Debtors

37. Average Collection Period Average Collection Period = 365 days Average Debtors

38. Creditors Turnover Ratio Creditors Turnover Ratio = Net Credit Purchases Average Creditors

39. Average Payment Period Average Payment Period = 365 days Creditors Turnover Ratio

40. Working Capital Turnover Ratio Working Capital Turnover Ratio = Cost of Sales Net Working Capital

42. Gross Profit Ratio Gross profit Ratio = Gross Profit * 100 Net sales

43. Net Profit Ratio Net profit Ratio = Net Profit * 100 Net sales

44. Operating Profit Ratio Operating profit Ratio = Operating Profit * 100 Net sales

45. Operating Cost Ratio Operating Cost Ratio = Operating Cost * 100 Net sales

47. Return on Shareholder Fund Return on Shareholder fund = Net Profit ( after int & tax ) Shareholder’s fund

48. Return on Equity Capital Return on Shareholder fund = Net Profit ( after int & tax ) Paid up Capital

49. Turnover Ratio Turnover Ratio = Net Sales Total Current Assets

50. Earnings Per Share Return on Shareholder fund = Net Profit ( after int & tax ) Paid up Capital

52. Debt Equity Ratio Debt Equity Ratio = Outsiders Fund Share holders Fund

53. Solvency Ratio Solvency Ratio = Total Liabilities to Outsiders Total Assets

54. Debt Service Ratio Debt Service Ratio = Earnings before interest & tax Fixed Interest obligation

56. Sales Trend

57. Net Profit Trend

58. Earning Per Share

59. Fund Flow Statement It is a statement which shows the movement of funds It indicates the various means by which funds were obtained during a particular period and the ways in which these funds were employed.

63. Cash Flow Statement This statement describes the inflows and outflows of cash and cash equivalents in an enterprise during a specified period of time.

67. Common Size Income Statement

69. Common Size Balance Sheet

73. Interpretation This statement reveals that company’s policy is to purchase Fixed Assets from long term sources there by not affecting the working capital Company has raised its current assets from long term sources which leads to improvement in liquidity position. So, we can say that the company is using its long term sources to finance both fixed and current assets.

74. Comparative Income Statement

76. Findings

79. Conclusion

81. Thank you