This document provides an introduction and overview of a project analyzing the financial statements of Atul Ltd using ratio analysis. The summary is: 1) The project analyzes Atul Ltd's financial statements over several years using ratio analysis to evaluate the company's financial position and performance. 2) Primary data was collected from Atul Ltd's financial statements and managers, while secondary data came from comparing Atul to competitor financial statements online. 3) Ratio analysis tools were used to analyze Atul Ltd's liquidity, asset management, debt management, and profitability. Findings show Atul Ltd has generally maintained financial soundness. 4) In conclusion, Atul Ltd has been efficiently utilizing resources and maintains

1. A PROJECT ON ANALYSIS OF FINANCIAL STATEMENTS USING THE TECHNIQUE OF RATIO ANALYSIS Project By Vineeth Poliyath ID No. 107310592005 Project Guide Prof. Syhamsunder Singh College :LAXMI INSTITUTE OF MANAGEMENT STUDIES

2. Project At : Atul Limited – Atul Dist. Valsad – 396020

3. INTRODUCTION

4. About the company Atul Ltd is a member of Lalbhai group, one of the oldest business houses of India, with interests mainly in textiles and chemicals. The group is strongly committed to serve the society in the field of education, health as well as culture. Atul Ltd became the first private sector company of India to be inaugurated by Jawaharlal Nehru, the first Capital Minister of the country. 3 joint venture companies, namely, Cyanamid India Ltd, Atic industries Ltd and Cibatual Ltd were started which later merged into one entity- Atul Ltd in 1995. Atul Ltd operates through six-business division, namely, Agrochemical bulk chemicals & Intermediates, Colors, Pharmaceuticals, Intermediates, and Polymers. Each business, in step with the company vision, develops and implements its growth plans.

5. INTRODUCTION ABOUT THE TOPIC What is financial statement? Financial statements are summaries of the operating, financing, and investment activities of a business. Financial statements should provide information useful to both investors and creditors in making credit, investment, and other business decisions. What is financial statement analysis? Financial analysis is a tool of financial management. It consists of the evaluation of the financial condition and operating performance of a business firm, an industry, or even the economy, and the forecasting of its future condition and performance. What is requirement of financial statement analysis? 1.financial statement 2. Profit and loss account 3. Cash flow statement

6. Who uses these analyses? INTERNAL USER Owners and managers Employees EXTERNAL USER Investor Financial institutions Government entities Media

7. RESEARCH METHODOLOGY

8. Problem statement The problem of the research is “To determine the financial position of ATUL LTD”???” Objectives of the study Types of data which helped to prepare this report: 1. First type is the primary data which was collected personally to be used and studied to prepare and reach the objectives already mentioned. 2. The secondary data which was already prepared so these data was only used to reach the aims and objectives of this project. These data has been collected from the financial reports of the company. How the data was collected: The sources of collecting the primary data was collected from the financial statements already available to the employees of the company and some of which was published.

9. Different questions and information that was collected during these two methods are: 1. The beginning and history of the Atul Ltd. 2. Numbers of staff working for different departments. 3. The mission & vision of the company. 4. Areas of operations 5. Other company related information. Data collected was through the study of the financial statements already existed in the company in form of printed files or digital files reserved in the company These files consist of: 1. Annual report of the company 2. Financial balance sheets 3. Profit and Loss statements

12. TOOLS OF ANALYSIS

13. TOOLS OF ANALYSIS

14. TOOLS OF ANALYSIS

15. TOOLS OF ANALYSIS

16. TOOLS OF ANALYSIS

17. TOOLS OF ANALYSIS

18. DATA ANALYSIS & INTERPRETATION

19. Summary of ratio (Rs. In Lacs)

20. INTERCOMPARSION OF ATUL LTD WITH THEIR COMPETITORS

23. FINDINGS & CONCLUSION

25. Reserve and Surplus has increased.

26. Secure loan and unsecured loan has been reduced though there is a slight increase in year 2011.

27. Deferred Tax liability has increased year by year.

28. Net block is some decreased in year 2011 because of the depreciation.

29. Investment in capital expenditure as well as in other investment is low since 2008.

30. Investment of the company has risen this year.

31. Company’s current assets and liabilities also increasing with the year passing.

33. FINDINGS Rate of return of the company has been improved compared to previous year because company has got capital gain from its investments. Dividend payout ratio has been reduced although the earning on individual share has increased. Atul ltd has position 2nd among its peer competitor.

35. Based on the figure of financial ratio of Atul Ltd, we can conclude that the company has continued to maintain its financial soundness and would expected to earn more profit margin for their shareholder.

36. The financial position of the Atul Ltd in comparison with their competitor , is very good.

38. The investment in the inventory must be kept in optimum so as to meet all requirements of the production, sales and demand pattern of the company. Because it is very important. Atul Ltd. has improved in increasing its profitability as the company has managed to cut off the cost. In coming year the company will expect to improve better incoming year. However more attention should be given to improve the efficiency of the working capital and operational results. This will lead to the improvement of increasing profit earnings capacity. Atul Ltd should improve to use its assets more efficiently in order to earn maximum sales with minimum investment in fixed assets. Working capital has been increased. Thus the company should maintain its efficiently and should strive to maintain its financial health.

40. I am Very much thankful and oblige to following managers of Atul Limited for helping me in successful completion of the project. Mr. Tejal Patel Mr. Ankit Mankodi General Manager – Marketing Joint Manager - Finance Bulk Division – Atul Ltd. Aromatics Division - Atul Ltd

41. THANK YOU