1. Topic Name
Ratio Analysis on pen industry
(Report Analysis Presentation)
by
Students Name Akanksha singh
Programme: Bcom (Accounts)
Reg. No.:Sbu210328
Semester: 4
Under the Guidance of
Guide Name Dr Saurav kumar
Sarala Birla University, Ranchi
2. Presentation Outlines
Chapter I Profile of the Firm/Company
Chapter II Theoretical Background
Chapter III Problem Statement & Objectives of the Study
Chapter IV Methodology (Research Methodology if based on
. Primary Data)
Chapter V Analysis & Interpretations of the Study
Chapter VI Findings, Conclusion & Recommendation
References
3. Profile of the Firm/Company
Chennai-Based GM Pens International, the manufacturers and marketers of writing instruments under the
Reynolds brand, is bullish on the growing market for pens in India. With its strong brand equity and a pan-
Indian reach, the company hopes to increase its market share even while emerging a base for the global major.
Started in 1986, GM Pens has facilities in Chennai and Pondicherry. In 1999, Sanford set up its own tip making
facility near Chennai for supplying to GM Pens and global operations.GM Pens have become the largest brand
in terms of manufacturing and marketing capability are also catering to their markets like Bangladesh, Sri
Lanka, Brazil, South Africa, Thailand and Argentina. The IT boom and automation have not slowed down the
market for pens. There is a boom in the pen segment as majority of school children use it. This is high growth
market for us. They sell over 10 lakh pens a day and their range starts from Rs 5 to Rs 500.Reynolds is not only
one of the largest selling writing instruments especially Pens in India but a well-known company in the world.
The Reynolds is marketed in India by its exclusive licensee, G.M. Pens International Pvt. Ltd, which based in
Chennai. The operation of the Reynolds in India started in the year 1986 with the introduction of the world class
writing instruments under the same brand name. The Reynolds revolutionized the Indian pen market by creating
a brand, which previously was just a commodity. Reynolds offers a wide variety of pens such as Ball Pen, Vista,
Champ, Vega point, Fusion, Electro, 045 Fine Carburet, 040 Bold, Gel Pen, Racer gel series , Pilot Pen, Trimax,
Ink Pen etc.
I have conducted my study on Reynolds Pens. Before starting the study I have established some objectives and
after this i have followed a specified research methodology. In due course a well drafted questionnaire was
prepared and then with help of the same the response were taken from the consumers after that they were
properly analyzed to arrive at conclusions.
4. Theoretical Background
Reynolds Pen is a brand of writing instruments that was
established in 1945 in the United States. The brand is known for
its ballpoint pens, which are widely used for everyday writing
purposes. The theoretical background of Reynolds Pen is based
on the principles of innovation, quality, and affordability. The
company has always strived to provide high-quality writing
instruments that are affordable to the masses. Reynolds Pen has
also been at the forefront of innovation in the writing
instruments industry. The brand was the first to introduce the
ballpoint pen in India, which revolutionized the way people
wrote. The company has also introduced other innovative
products such as gel pens, fountain pens, and rollerball pens. In
addition to this, Reynolds Pen has a strong focus on marketing
and branding. The company has used various advertising
campaigns and promotional activities to establish itself as a
leading brand in the market. Overall, the theoretical background
of Reynolds Pen is based on the principles of innovation,
quality, affordability, and effective marketing.
6. Methodology (Research Methodology If
based on Primary Data)
Methodology
Research Methodology
Research Design - The concept of descriptive research was used for this present
work.
Sampling and Sampling Technique – As no questionnaire were used and no
response were taken hence no specific sampling technique were used
Data Sources - Secondary data were heavily utilized for the current project. The
secondary sources were used and balance sheet of the company was arranged to
calculate the stated/ mentioned ratios.
Tools/ Formula used in Presentation – No specific tools have been used however
the following formulas have been used extensively in this work
7. Analysis & Interpretations of the Study
It is evident from the above tale that the Quick ratio for financial year 2020 – 21 is 0.603 and
that of 21- 22 is 1.248. It clearly indicates that the Quick ratio for 21- 22 is more than that of
20-21. If the business has a quick ratio of 1.0 or greater, that typically means that the business
is healthy and can pay its liabilities
It is evident from the above tale that the Current ratio for financial year 2020 – 21 is 1.607 and
that of 21- 22 is 1.718. It clearly indicates that the working capital ratio for 21- 22 is more than
that of 20-21. If a company has high net working capital, it generally has the financial resources
to meet all of its short-term financial obligations. Broadly speaking, the higher a company's
working capital is, the more efficiently it functions
8. Findings, Conclusion & Recommendation
asset. Net profit of the company has been increase 67.57% Y-O-Y base.
The leverage ratio has increased from 0.37 to 0.402 because of that total debt of the
company has increased by 74.29% this implies that increased debt has resulted in
increase in profitability of the company. Thus there is increment in leverage ratio
The working capital of the declined from previous year because the proportional of
there in current liability is more than proportionate increased in current
The inventory turnover ratio declined from 1.219 to 1.00 it means company was
effectively able to manage its inventory by converting into sales.
Asset turnover ratio has increased because the increase in total average asset along with
increase in net sales or revenue from operation.
The account payables turnover ratio indicates to the short term liquidation and credit
worthiness of the company.
Credit turnover ratio has increased because there is increase in net credit.
There is increase in debtor turnover ratio from 6.77 to 11.62 because there is stepped
increase in net credit sales, however our debtor have declined slightly.
This also means the company is efficiently collecting revenue from account receivables.
The current ratio is above 1 in both year so the company is sufficient to meet its current
liability with respect to current asset.
Quick ratio indicates of short term liquidity of company quick ratio has increased from
0.626 to 1.455.
This ratio represents how a company maintaining lower cost while generate revenue
