Final_Project_finance.docx

A STUDY ON FUNDAMENTAL ANALYSIS TO ASSESS EARNINGS QUALITY
Acharya Bangalore B School Page 1
 About the project
Theoretical background of the study
Fundamental Analysis is the examination of the basic strengths that influence the well-being of the
economy, business groups, and organizations. Similarly as with most investigation, the objective is
to derive a forecast and benefit from future price movements. At the organization level, fundamental
analysis may include examination of financial data, administration, business concepts and
competition. This study also concentrates the core underlying components that impact the economy
of a specific entity, similar to a stock or currency. It attempts to predict price activity and patterns by
examining economic indicators, government policy, societal and different elements inside a business
cycle structure.
Earnings quality and the quality of financial reporting in general are subjects that, subsequently a few
years, take more and more attention and are the hub of discussion for stakeholders, supervisors as
well as surveyors. Although the attention of researcher goes initially to statements that examine the
connection between earnings quality and external audit related components. This study is based on
earnings quality of the organization which contains overview of earnings quality.
Comparative monetary statements
This statement is set up for two or more years to demonstrate the outright information of two or more
years, increment or abatement in the supreme information in quality and as far as rate comparative
monetary explanations are proclamations of the money related position of the association so define
as to concentrate to the components contained in that and gives the record which alone are setup in
near budgetary articulations .
Analyst and business managers use the income statement, balance sheet and cash flow statement for
comparative purpose . it compares a particular financial statements or with the same financial report
generated by another company. The process reveals trends in the financial and compares one
company’s performance with another business . analysts like comparative statements because the
report shows the effect of business decisions on a company’s bottom line .

Elements of fundamental analysis
Fundamental analysis is the foundation of investing. There are endless investment strategies,and
almost each of them has fundamental analysis at its base. Coming up with a fair value for a stock is
the basic objective of using it. It is used to predict future movements of price of stock on the basis of
underlying factors which contribute to the demand and supply for that specific stock .
Following are some of the specific tools or sources of information used in the report i.e;
I. Comparative balance sheet of the company.
II. Comparative income statement.
III. Common size balance sheet.
IV. Trend analysis balance sheet.
V. Current ratio.
VI. Inventory turnover ratio.
VII. Debt equity ratio.
VIII. Cash profit ratio
IX. Gross profit ratio.
X. Net profit ratio.
XI. Earning per share.
These sources of information,together ,become key factors to some valuation measures which are
actually most important elements of fundamental analysis of stocks.
Comparative balance sheet :
A comparative balance sheet presents side by side information about an entity’s assets,liabilities,and
shareholder’s equity as of multiple points in time . For example, a comparative balance sheet could
present the balance sheet as of the end of the past three years.
Formula
Absolute Changes= Year - Base year
% of Absolute Changes = Absolute change/Base year*100

Comparative income statement :
A comparative income statement presents the result of multiple accounting periods in separate
columns. The intent of this format is to allow the reader to compare the results of multiple historical
periods,thereby giving a view of how a business is performing over time.
Formula
Common size balance sheet :
A common size balance sheet is a balance sheet that displays both the numeric value and relative
percentage for total assets,total liabilities and equity accounts, it allows for the relative level of each
[asset,liability and equity account ] to be quick analyzed .
Formula
Trend analysis balance sheet :
Trend analysis provides a means to analyze company data over a period of time by focusing on the
change in specific line items within the income statement and balance sheet. Changes are typically
measured in dollars and percentages .
Formula
% = base year amount - current year amount * current year amount x 100 .
Current ratio :
The current ratio is mainly used to give an idea of a company’s ability to pay back its liability (debt
and account payable) with its assets (cash,marketable securities,inventory ,accounts receivable ) as
such current ratio can be used to make a rough estimate of company’s financial health .
Formula
Current ratio= current asset*current liability .

Inventory turnover ratio :
The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed
by comparing cost of goods sold with average inventory for a period … in other words it measures
how many times a company sold its total average inventory amount during the year.
Formula
Inventory turnover ratio= cost of good s sold* average inventory .
Debt equity ratio :
The debt to equity ratio is a financial ratio indicating the relative proportion of shareholder’s equity
and debt used to finance a company’s assets. Closely related to leveraging, the ratio is also known as
risk, gearing or leverage .
Formula
Debt-to-equity ratio= total liability* total shareholder’s equity .
Cash profit ratio :
Some analysts use “earning before interest,tax,depreciation and amortization” (EBITDA) to sales
ratio, called cash profit margin, to measure operating profit and deducting increase in investment in
fixed assets and working capital .
𝐩𝐫𝐨𝐟𝐢𝐭
Formula: 𝐜𝐚𝐬𝐡 𝐩𝐫𝐨𝐟𝐢𝐭 𝐫𝐚𝐭𝐢𝐨 = 𝐜𝐚𝐬𝐡𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬 ∗ 𝟏𝟎𝟎
Gross profit ratio :
Gross profit ratio is a profitability ratio that shows the relationship between gross profit and total net
sales revenue . it is a popular tool to evaluate the operational performances of the business. The ratio
is computed by dividing the gross profit figure by net sales .
Formula
Gross profit ratio = gross profit*net sales x 100 .
Net profit ratio :
The net profit percentage is the ratio of after-tax profits to net sales . It reveals the remaining profit
after all cost of productions, administration and financing have been deducted from sales, and
income tax recognized .

Formula
Net profit ratio = net profit aftr tax* net sales x 100 .
Earning per share :
Earning per share (EPS) is the proportion of a company’s profit allocated to each outstanding share of
common stock.earning per share serves as an indicator of a company’s profitability . EPS is calculated as :
EPS= (Net income - Dividends on preferred stock ) / Average outstanding shares .
Formula
(net income - dividends on preferred stock / average outstanding common share.
 NEED TO STUDY THE TOPIC
The study basically tries to identify the intrinsic value of the Deepa Solar Systems Private
Limited by using the published financial details of the company. The study restricted to one
particular company in the sector. The study also includes testing the intrinsic value of the
company. Therefore the present study seeks to make an in-depth fundamental analysis of
DEEPA SOLAR SYTEMS PRIVATE LIMITED from all perspective.
 Industry Profile
Sunlight is earth's most critical premise of vitality. The sun solar is the aggregate of energy that the
Sun stores per unit range which is unswervingly presented to sunlight. The solar stable is equivalent
to around 1,400 watts for per square meter at the separation of one astrophysical unit from the sun.
Sunlight on the plane is lessened by the Earth's atmosphere so that less power touches base to the
surface-more like 1,100 water for each square meter in clear condition when sun is close to the apex.
The past of lighting is occupied by the benefits of usual bright. The Romans have documented a right
as early as the 6th century and law echoed these judgements with the Prescription Act of 1832. In the
20th century synthetic lighting became the main source of internal illumination but day lighting
techniques & hybrid solar lighting solutions are ways to decrease energy utilization. Sun powered
advancement is not new. Its history ranges from seventh century B.C. to today. We started thinking
the sun's glow with glass and mirrors to light flames. Today, we are having everything from sun
based controlled structures to sunlight based fuelled vehicles. The past of lighting is vanquished by

the advantages of natural light. The Romans have documented a right as early as the sixth century
and law echoed these judgments with the Prescription Act of 1832.
Sun oriented vitality can be harnessed by an collection of normal and manufactured procedures
photosynthesis by plants catches vitality of the daylight and believers it to synthetic structure
(oxygen and lessened carbon mixes), while direct warming or electrical change of sun powered cells
are utilized by sun powered hardware to produce power or to do other helpful work, now and again
utilizing focuses on sun powered force. The vitality put away in petroleum and other fossil energizes
are initially changed over from light by photosynthesis in the far off past. Sun powered innovation is
not new. Its history ranges from seventh century B.C. to today. We began concentrating the sun's
warmth with glass and mirrors to light flames. Today, we are having everything from sun based
controlled structures to sunlight based fueled vehicles.
In the twentieth century synthetic lighting turned into the main sources of internal illumination
however day lighting strategies and hybrid solar lighting based lighting solutions are approaches to
decrease energy utilization.
Half and half sun powered lighting is the dynamic sun based strategy for giving inside brightening.
HSL frameworks gather daylight utilizing centering reflects that track the Sun and utilize optical
filaments to transmit it inside the working to supplement traditional lighting. In single story use of
these frameworks are still ready to transmit half of the immediate daylight.
Sun oriented lights that charge amid the day and light up at nightfall are a typical sight along
walkways. Sun powered charged lights have turned out to be surely understood in creating nations
where they give a more secure and less expensive contrasting option to lamp oil lights. Half and half
sun powered lighting is the dynamic sun based methodology for giving inside lighting up. HSL
systems accumulate sunlight utilizing centering reflects that track the Sun and use optical filaments
to transmit it inside the attempting to supplement traditional lighting. In single story utilization of
these structures are as yet prepared to transmit half of the immediate sunlight. Sun oriented lights
that charge in the midst of the day and light up at nightfall are a common sight along walkways. Sun
powered charged lights have ended up being definitely understood in making countries where they
give a more secure and more affordable differentiating alternative to lamp oil lights. In spite of the
fact that light saving time is raised as the best way to deal with use sunshine to save imperativeness,
late research has been compelled and reports restricting outcomes, a couple of studies report

investment funds, yet for the most part a similar number of propose no effect or even a net
misfortune, generally when fuel usage is thought about. Power utilize is massively impacted by
geology, climate and monetary matters, making it intense to enhance from single studies.
The sun is the key component that made it feasible for life to thrive on earth; it is the sun's warmth
that empowered the planet to support life. Consistently, for billions of years now, man has been
profiting from sun powered vitality in an assortment of courses: from the photosynthesis of plants
which give him nourishment, to the downpours that keep his water sources streaming, to the general
ecological atmosphere that furnishes him with "focal heating. “And the sun has been giving every
one of these advantages to free.
The Jawaharlal Nehru National Solar Mission is also called S0LAR IND1A is a noteworthy activity
of the Government of India to advance naturally manageable development while tending to India's
vitality security challenge. The vision of the Solar Mission is to make India's monetary improvement
vitality effective. The goal is to build up India as a worldwide pioneer in Solar Energy. The
Government of India gives extremely alluring appropriations and furthermore has appealing plans for
specific states which are power deficiency and face challenges in power generation and transmission.
HISTORY OF SOLAR ENERGY:
In 1839 a most imperative point of interest in the movement of sun based vitality happens with
the huge of the photovoltaic impact by a French researcher Edmond Becquerel. In this he utilized
two terminals put as a part of an electrolyte and afterward presenting it to the light and results is huge
power expanded a considerable measure. After that in 1839 a most basic purpose of enthusiasm for
the development of sun based essentialness occurs with the huge of the photovoltaic effect by a
French analyst Edmond Becquerel. In this he used two terminals put as a piece of an electrolyte and
subsequently introducing it to the light and results is huge power extended a significant measure.
After that groups of examination are occurred by various researcher at time to time and balanced our
sun powered imperativeness system to convey more power from sun oriented vitality. In any case,
now a day's also in this field distinctive trials are doing by a scientist, how to utilize most
extraordinary sun oriented essentialness which is available on the earth.

To begin with sun based financial specialist made by Swiss researcher named Horace-Benedict
de Saussure in 1767 he took a protected box encased with three layers of glass which suck up
warmth vitality. To begin with sun based financial specialist made by Swiss researcher named
Horace-Benedict de Saussure in 1767 he took a secured box encased with three layers of glass which
suck up warmth imperitiveness. After that Saussure's container got the chance to be prestigious and
by and large known as the principal sun based broiler, getting temperatures of 230 degrees
Fahrenheit. In 1873, Willoughby Smith found photo conductivity of a substance perceived as
selenium. In 1887 there was the exposure of the bright beam capacity to realize a flash hop between
two terminals and this was done by Heinrich Hertz. In 1891 the principle sun based cell was made. In
1893 the key sun arranged cell was displayed. In 1908 William J. Baileys made a copper gatherer
which was produced using copper curls and boxes.
In 1958, sunlight based vitality was used as a part of space. In the 1970′s, Exxon Corporation
arranged a successful sunlight based board which was more affordable to create. Less cost delivering
method of sun powered board transformed into the genuine perspective ever. In 1977 the US
government got a handle on the usage of sun based imperativeness by pushing the Solar Energy
Research Institute. In 1981, Paul Mac ready made the primary sun powered fuelled air ship. In the
year 1982 there was the progression of the essential sun oriented fuelled automobiles in Australia. In
1999 the greatest plant was made conveying more than 20 kilowatts. In 1999, the most competent
sun powered cell was made with a photograph voltaic capability of 36 percent, now a day we convey
200 megawatts to 600 megawatts power from sun based vitality like in India's Gujarat Solar Park, a
gathering of sun based properties spotted around the Gujarat region, demonstrate a typical introduced
limit of 605 megawatts and Sun powered Park at China, with an introduced purpose of repression of
200 megawatts.

SIZE OF THE INDUSTRY:
India devours 3.75% of the world's business essentialness making it has the 5th greatest end
customer of imperativeness all inclusive. Complete introduced capacity of 144912 MW. India is
honoured with well-off sun oriented imperativeness source more than 5000 trillion KW of sun
powered vitality in a year. The typical nature of sun powered radiation got on India is 200MW/km
square.
Graph:01
Power Production in India:

RESEARCH GAP:
A number of studies have been reviewed in order to have an in-depth knowledge about the research
topic. From the above literature reviews it’s clear that number of studies on different aspects of
fundamental analysis and earnings quality have been conducted both in India as well as abroad. The
above researches have been done on basis of investment and management techniques in order to
have a proper earnings quality. These studies have been reviewed critically with a view to understand
the objectives, research methodology, research findings etc. and to identify the research gap. Like
some researches above, are concentrated on allocation and use of resources for future activities in
given period of time with help of financial statement, ratios and trend analysis technique and as in
the above research its said that fundamental analysis in order to assess earnings quality acts as a tool
for financial planning so in that way if organizations want to grow then they should do proper
planning of resources employed so that they are cost effective to the organization and so different
cost control tools are used.
But in this study I would be concentrating on ratio and trend analysis as a cost control tool in order to
plan for proper identification of earnings quality of particular company as in above researches
different techniques were used. Hence, there exists a research gap and the present study entitled “A
study on fundamental analysis to assess earnings quality of Deepa Solar Systems Private Limited,
Bengaluru” is an attempt to fill this gap.
 STATEMENT OF THE PROBLEM
Every asset, financial as well as real, has value. The key to successfully investing in and
managing these assets lies in understanding not only what the value is, but the sources of the
value. Any asset can be valued but some assets are easier to value than others, and the details
of the valuation will vary from case to case. What is surprising; however, is not the difference
in valuation techniques across assets, but the degree of similarity in basic principles. There is
undeniably uncertainty associated with valuation. Often the uncertainty comes from the asset
being valued, although the valuation model may add to that ascertained.
 SCOPE OF THE STUDY
 It covers the fundamental analysis of Deepa solar systems Pvt. Ltd

 The study is to analyse the earnings quality with reference to financial statements like
income statements and necessary ratios.
 The study covers 2014-15 to 2016-17Income Statement and Balance Sheet.
 Objectives of the study
 To study the various trends, opportunities, challenges of the industry in which the
company operates.
 To understand the various policies of the company those have impact on the financial
performance of the company.
 Sampling
 3 years financial data (2014-15 to 2016-17)
 Tools for data collection
 Secondary data - Internet, research reports, magazines, and company journals.
 Data analysis:
The data raised through the annual reports of Deepa solar Systems Pvt. Ltd be inserted in the
tables for the purpose of effective communication. The descriptions are made out for a better
understanding of each element analysis with particular reference to part of the balance sheet
and income statements.
The data given annual reports will be analyzed with the help of percentage, proportions,
classifications, growth rate, points of weight, aggravate and compound ranking etc. inference
were also extracted for clear understanding of the results.

 Limitations of the study
There are so many barriers while collecting the company’s data.
 The scope is limited to published information received from company website.
 The time is not sufficient to study about the fundamental analysis to assess earnings
quality of the company. According to my knowledge, I have made this as valuable
report within the stipulated period.
 The major problem of this study was lack of respondents which created many more
confusions while verification of question.
The common problem which I faced in the organization while collecting the data was confidentiality
in terms of the company’s data. Thus, every company has maintaining their secrecy which they does
not revealed to the public.
METHODOLOGY:

About the Company
The SOLAR INDIA i.e., JNN Solar Mission is a noteworthy activity of the legislature of
India which advance biologically supportable improvement while tending to India's monetary
improvement vitality productive. The target of this mission is to create India as a worldwide head in
sunshine based Energy. The Government of India gives extremely appealing appropriations
furthermore alluring plans for certain states which are force shortage and to face challenges in force
creation and transmission.
DSSPL is one of the pioneers in giving Solar Wind Hybrid Systems and Solar Power Plant Solutions.
They work intimately with clients and help them in get ready Detailed Project Reports as endorsed
by MNRE and executing the whole venture. Sunshine oriented PV arrangements are practical, bother
free and aggregate advantages quickly. It is accordingly in a perfect world suited to the prerequisites
of a wide range of foundations. Deepa Solar Systems Pvt. Ltd., gives standalone, housetop, and
ground PV arrangements according to necessity. They will be extremely cheerful to give mechanical
mastery and backing to prestigious association.
Deepa Solar Systems Pvt Ltd. Gives end to end arrangements encompassing site overview,
readiness of itemized venture report, contact with the pertinent division for the endowments, usage
and support of the same. Deepa Solar Systems Pvt Ltd., established in the year 1998 is an innovative
and highly technical organisation with focus on tapping the inexhaustible Solar Energy to provide
constructive and advanced practical solar solutions for a developing market place and to allow
mankind by tapping off the nature’s gift offered in abundance.
After ten years of establishment, the company received extensive approval from Ministry of
Non-renewable Source (MNRE) Channel partner, Govt. of India., ETDC, CPRI, DGS&D and NSIC.
The company boats of advanced quality test equipment, excellent service, skilful employees and
professional management staff. The ISO 9001:2008 quality control system will guarantees its
products with good quality and efficiency. The company’s philosophy always adheres to spotlight on
customer satisfaction with uncompromising integrity.
It caters individuals, domestic and non-domestic sectors with their custom planned state-of-
art Solar Technology Solutions.
"No Energy, No Water, No Life, No Water, No Energy No Life"

The above mentioned quote relate to the dependency of how life evolves with nature. We are
all mindful that Sun is the key component that has made it plausible for life to prosper on earth; it is
the sun's warmth that empowered the planet to manage life. Every day, for billions of years now,
man has been getting profited from sun based vitality in an alternate routes: from the photosynthesis
of vegetation which give him sustenance, to the downpours that keep his water sources streaming, to
the general ecological climate that furnishes him with "focal warming." And the sun has been giving
all these advantages to free.
As of the measurements, amongst 2 in 3 individuals need access to water and 1.6 billion
individuals, a fourth of mankind live without the power. The obvious fact is that the depletion of
water, gas, oil and power is around the corner and moving forward, the unconstrained energy from
the Sun will be the only practical answer to face the intimidating challenge. Hence, the pre-eminently
reputed DSSPL, with focus on the inexhaustible Solar Energy, started compiling Innovative,
constructive and laudable practical solutions of solar energy for an evolving marketplace and life,
bringing into play, the nature's gift offered in profusion.
Deepa Solar Systems Pvt. Ltd. not just exceeds expectations in setting up different sun
powered controlled lighting frameworks, additionally exceed expectations in introducing SOLAR
POWER PLANTS of limit extending from 1KW to 1MW and Solar Wind Hybrid frameworks.
Deepa Solar Systems Pvt Ltd. is one of the pioneers in giving Solar Power Plant and Solar Wind
Hybrid System Solutions. We work intimately with clients and help them in get ready Detailed
Project Reports (DPRs) as endorsed by MNRE and executing the entire venture. Solar PV solutions
are conservative, bother free and collect advantages promptly. It is along these lines preferably suited
to the prerequisites of a wide range of foundations. DSSPL gives housetop, independent, ground PV
arrangements according to necessity. We will be extremely glad to give specialized skill and support
to your prestigious Organization. We give end to end arrangements incorporating site study,
readiness of itemized venture report, and contact with the applicable division for the appropriations,
execution and support of the same.

KEY PERSONS:
DIN or DPIN or
PAN
Directors Name Appointment Date Designation
06526246
Karpenahalli
Lakshmappa
Hanumantaraya
25/02/2018 Managing Director
06526250
Bhanumathi
Siddappa 25/02/2018 Director
Vision Statement:
To make significant role to sustainable development by working towards the reduction of
carbon footprints locally and internationally by harnessing & channelizing solar energy to provide
high-tech energy solutions
Mission Statement:
To modify the paradigm of nature by routing the natural resources into developing state-of-
art and technically sound solar energy solutions to face the nightmarish energy crisis. To make
esteem for their customers by effectively abuse the ability of their very talented multi-disciplinary
specialized group in the operation of superb renewable vitality arrangements that is open to
humankind from all classes. Quality in a product or service is not what the supplier puts in. It is what
the client gets out and is willing to pay for. Customer happiness is Deepa Solar Systems Pvt. Ltd.
highest priority. They accomplish this objective by perpetually enhancing the cost adequacy and
execution of every one of their items and procedures, and in addition concentrating on development.

Commitment to Quality:
At Deepa Solar Systems Pvt. Ltd, they trust that quality is the way to guaranteeing that their
work and the arrangements they give to clients will stand the test of time. They carry out the
employment right and perform autonomous check of their work to guarantee that they are conveying
the best quality results.
In addition to the quality activities which give an immediate advantage to their clients, they
make progress toward quality in their inward procedures and methodology for the advantage of their
worker proprietors. Their administration group keeps up an open-entryway strategy which permits
worker managers to address worries that may emerge in a useful and responsive environment.
Their Quality Mantra:
 To attain delivery compliance as per customer's requirement
 To attain quality norms as per customer's requirements.
 To raise sales turnover by 25-30% than last year.
 To reduce product non-conformance at all stages to less than 1.0%.
Products / Services of Deepa Solar Systems Pvt. Ltd.:
 Solar Lanterns
 Solar CFL Lantern-5WP
 Solar & LED Lanterns
 Solar CFL lantern- 10WP

 Solar Street Lighting System
 Solar Compound Wall Light Twin
Arm Street Lights
 Solar LED Focusing Light
 Solar Hybrid System
 21 KW Solar Wind Hybrid System
 Solar Water Pump
 1HP and 2HP Solar Surface Pumps
are commonly used for pump of
pump the water from well.
 Solar Garden Lighting
 Solar Garden lights
 Solar LED Garden Lights
 Solar LED Garden Light

 Solar Water Heaters
 Solar Water Heater Domestic
 Non Domestic Solar Water Heater
Non Domestic.
SERVICES:
Deepa Solar Systems Pvt. Ltd. offer gifted and effective administrations on location where
the item introduced by our work force. It has stretched out administrations to all clients in the
accompanying ways:
Consultancy:
They give specialized backing to picking the right item which suits their financial plan by
comprehension the client prerequisites as for the heaps and site conditions; in like manner they
prescribe and make them to use appropriately as they need.
Under Guarantee:
They are giving administrations services on location to a "n" number time without asserting
any additional charges amid certification period. Likewise remain by help will be given amid real
 Solar Home Lighting System
 Solar Table Fan
 Solar Power Pack System
 Home Lighting System

breakdowns. Despite the fact that they are in the field, calls will be reacted inside 24 hours
downtime.
Post Guarantee:
They offer services even after the termination of the guarantee; till the product life, since the
products are enclosed under “life time product support”. They carry out & clear the trouble to the
utmost satisfaction of their customers. There are 2 types of post guarantee services as shown here
under:
SITE INSPECTION:
Spot Inspection will be done before supplying any item to comprehend about the client
necessities and accessibility of force sources and to attract the wiring the most limited way without
harming the client's property.
ANNUAL MAINTENANCE CONTRACT-AMC:
Administrations which guarantees the client, to experience difficulty free operations and to
bolster their general calendar with no intrusion. Deepa Solar Systems Pvt. Ltd. gives administrations
in different stages as takes after to upgrade the item life.
CALL BASIS:
They also extend services under call basis on reasonable charges neither under the guarantee nor
under AMC.
 To bring the item under maker's immediate control.
 To embrace preventive/routine support to shield the gear.
 To enhance unwavering quality of the item.
 To give stand-by unit if required amid a noteworthy separate.
 To give substitution amid the surety time frame.
 To replace the spares at free of cost.

 To support the client amid moving.
INSTALLATION SUPPORT:
They give their clients start up help to help clients utilize and keep up the machines as
required. They even help with wiring according to client's prerequisite, furthermore to introduce in
perfect spot.
MAINTENANCE SUPPORT:
To attempt preparatory strides to watch all the essential parameters and correct it with the end
goal of diminishing the quantity of issues and improve the life of items.
AREA OF OPERATION:
Deepa Solar Systems Pvt. Ltd is located in India, South Africa and United States. The
corporate office of Deepa Solar Systems Pvt. Ltd is located in Bengaluru.
OWERNSHIP PATTERN:
Deepa Solar Systems Pvt. Ltd is a sole trading company which is managed by proprietor of
the company. Mr Prashanth K.J., under his guidance the company is carrying on its activities in the
field of solar lighting, solar home appliances and other accessories.
COMPETITORS INFORMATION:
PARTICULARS LIGHTI
NGS
WATER
HEATER
STREET
LIGHT
WATER
PUMP
MADHURA SOLAR   × ×
KAMAL SOLAR ×   ×
ANU SLOAR    
SALRIZER  ×  ×

AWARDS AND ACHIEVEMENTS:

PROSPECTUS:
 MNRE Government of India is set a target 20cr by the year of 2020.
 Deepa Solar Systems Pvt. Ltd has set goal through Jawaharlal National Solar Mission.
 Deepa Solar Systems Pvt. Ltd to achieve their target MNRE target and channel partner.
 Deepa Solar Systems Pvt. Ltd to achieve their target to implement renewable energy from
1kw to 500kw of grid power plant.

SWOT ANALYSIS:
STRENGHTS
 Availability of Resources:
 Highly qualified technical and managerial personnel
 Well established systems
 Work environment
 Highly reputed External Training agencies
 Information technology and Tele communication Infrastructure
WEAKNESS
 No direct control on end product
 Possibility of Financial Disorder
OPPORTUNITIES
 Government Support
 Sources of Energy
 Growing demand for Power
THREATS
 Competition from Private players
 Fluctuating Monsoon
 Possibility of loss due to bad debts
 Uncertain Government Policies

The data that was collected through financial reports of Deepa Solar Systems Private Limited which
was tabulated and analysed using 3 years Income Statements and Balance sheet with the help of
graphs, charts and tables. Descriptive tools was used to analyse the data. Furthermore, descriptions
are made based on the results of the table.
Comparative financial statements are designed in order to obtain the following:
 Absolute value (Money value)
 Increase or diminish in total information as far as money value
 Increase or diminish in exact data in terms of percentage
 Comparisons expressed in ratios
Comparisons will have importance and will become more effective, only if the data compared
truly reflect the dependability in the application of commonly accepted accounting principles from
date to date.

TABLE NO:01
SHOWING COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 2014-2015.
Formula:
PARTICULARS 2014 2015 ABSOLUTE
CHANGES
PERCENTAGE
(%)
a)FIXED ASSETS
Fixed Assets 3000000 4325097.16 1325097 44.169
Investment 300000 586195.00 286195 95.398
b)CURRENT
ASSETS
Closing stock 282782 582782.00 300000 106.08
Sundry debtors 5781523 8781523.30 3000000 51.88
T D S 2014-2015 5000 6289.00 1289 25.78
EMD 255010 467472.00 212462 83.31
Salary advance 10000 22300.00 12300 123
Cash at bank 2600 5305.98 2706 104.07
Cash in Hand 7520 14953.41 7432.59 98.84
TOTAL CURRENT
ASSETS
6344435 9975784.69 3631349.69 57.23
TOTAL 9644435 14887081.85 5242646.85 54.35

a)SHARE CAPITAL
Capital account 1000000 1413117.32 413117.32
b)SECURED &
UNSECURED
LOAN
Loan SBM A/c 100000 268003.00 168003 168.00
SBM Scorpio loan 320000 519331.28 199331.28 62.29
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 850000 1235999.40 385999.4 45.41
S.B.I.C.C A/c 150000 270000.00 120000 80
Provision for tax 70000 152876.10 82876.1 118.39
Advance from
customer
350000000 41303131.36 308696869.36 88.19
TOTAL CURRENT
LIABILITIES
36070000 581900.86 35488099.14 98.38
TOTAL 45714435 14887081.85 30827353.15 67.43
ANALYSIS:
 Share capital has been increased 413117.32 Rs during the year 2014-2015.
 Debtors has increased to 3000000 Rs
 Total current assets has increased by 3631349.69 Rs
 Fixed assets has been increased by 1325097 Rs
 Investment has increased to 286195 Rs that off the previous year.
Reasons:
The above situation, company has been issued shares and it was also having o/s due and made some
credit purchases.

TABLE NO:02
COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2014-2015
CHANGES
%
Changes
Sales 22956500.9 27956500.9 -5000000 21.78
(-)COGS 2101030.46 22214030.46 -20113000 95.729
Gross profit 20855470.44 5742470.44 -15113000 7.24
DIRECT
EXPENSES
Labour charges 20000 24704.00 4704 23.52
INDIRECT
EXPENSES
Accidental charges 7000 7303 303 4.32
Advertisement 50000 79895 29895 59.79
Audit fee 6500 7500 1000 15.38
Bank interest &
charges
150000 248400.6 -98400.6 65.60
Catering service
charges
72500 96783 -24283 33.49
Commission 69950 89590 19640 28.07
Computer 30000 79800 -49800 166
Depreciation 120000 163223.9 43223.9 36.02
DGS & D inspection
Fee
2500 3398.64 898.64 35.96
Electricity charges 25000 30861 5861 23.44
Incentives 580000 733342 153342 26.43
Installation and
service charges
180000 260450 80450 44.69
Insurance 10000 12203 2203 22.03
Interest on scorpio 35550 50551.28 15001.28 42.19

van
ISO audit fee 39950 44944 4994 12.50
LPG Gas (vehicle) 40000 41000 -1000 25
Miscellaneous
expenses
20000 10770 9230 46.15
Newspaper &
periodicals
2500 2124 -376 15.04
Office expenses 2900000 310146.25 -2589853.75 89.30
Petrol charges 150000 162763.67 12763.67 8.50
Postage and courier
charges
5000 5671 671 13.42
Printing & stationery 22000 27797 5797 26.32
Professional fee 52000 57365 5365 10.31
Rent 60000 63000 3000 5
Repairs and maintains 10000 11735 1735 17.35
Salary 1050000 1162257 -112257 10.69
Staff welfare 150000 193016 -43016 28.67
Telephone charges 190000 193753 3753 0.019
Tender application fee - 1030
Transportation
charges
220000 233404.7 13403.3 6.09
Travelling and
conveyance
10500 12353 -1853 17.64
Vat tax paid 15000 18851.66 3851.66 25.68
Vehicle maintenance 13000 15020 2020 15.53
TOTAL INDIRECT
EXOENSES
6288950 46001470.14 39712520.14 631.46
TOTAL 27164420.44 1117619.3 26046801.14 95.88
+ NON
OPERARTING
INCOME

AMC charges 300000 292464 7536 2.512
Discount received - 3.99
Transportation and
installation charges
received
5000 4200 800 16
Profit from trading
account
6050000 5589783.15 460216.85 7.60
TOTAL INCOMES 6355271 5886451.14 468819.6 7.37
NET PROFIT/LOSS 66321 7004070.44 6937749.44 104.60
Analysis:
 Sales has been increased by 5000000 .
 Direct expenses has been increased.
Analysis:
There is 21.78% increase in the sales during the year 2015, this itself says that the company’s
performance was very good during the year 2014, due to the increase in the sales of the
organisation the organisation was able to earn more gross profit. In the year 2015 the
company has earned 104.60% net profit that of the last year, it is due to the effective efforts
of the all the resources employed in the organisation.
TABLE NO:03
SHOWING COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 2015-2016
CHANGES
PERCENTAGE
(%)
a)FIXED ASSETS
Fixed Assets 4325097.16 4414374.68 89277.5 2.0644
Investment 586195.00 652000.00 65805 11.22

b)CURRENT
ASSETS
Closing stock 582782.00 635956.00 53174 9.12
Sundry debtors 8781523.30 13934879.26 5153356 58.68
T D S 2015-2016 6289.00 320861.00 258032 41.06
EMD 467472.00 538727.00 71255 15.24
Salary advance 22300.00 137254.00 114954 51.5
Cash at bank 5305.98 4274.64 -1031.3 -19.43
Cash in Hand 14953.41 20920.74 5967.33 39.90
TOTAL
CURRENT
ASSETS
9975784.69 15631491.6 5655707 56.69
TOTAL 14887081.85 20697866.3 5810789 39.03
a)SHARE
CAPITAL
Capital account 1413117.32 3281135.14 1868018 132.19
b)SECURED &
UNSECURED
LOAN
Loan SBM A/c 268003.00 2665138.00 2597135 894.44
SBM Scorpio loan 519331.28 468983.78 -5.348 -9.64
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 1235999.40 252764.65 1291565 104.69
S.B.I.C.C A/c 270000.00 3030436.00 2760436 1022.3
Provision for tax 152876.10 70513.10 -82363 -53.67
Advance from
customer
41303131.36 4822004.36 4631511 79.59

TOTAL
CURREBT
LIABILITIES
581900.86 10450518.1 4361511 79.59
TOTAL 14887081.85 20697866.3 5810784 39.03
ANALYSIS:
The table reveals that the comparative balance sheet:
 Share capital has been increased by 2.06% during the year 2016 as compared with 2015.
 Debtors have been increased by 11.22% during the year 2016.
 Total current assets have increased to 56.66% during the year 2016.
 Total current liabilities have increased by 76.59%.
Reasons:
 Company issued shares in order to meet liabilities. Hence, share capital increased by 2.06%
 Company purchased some amount of stock so current assets has been increased.
 Current liabilities are company’s debt which increased due to suppliers or creditors.

2015
12000000
10000000
8000000
6000000
4000000
2000000
0
1
fixed assets invetement total current assets capital account current liabilities
2016
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
1
GRAPH NO:02
In the above graph its been compared with both the year ie; 2015 & 2016 bar for the fixed
assets,investments,total current assets,capital account,current liability.

2015-2016
6
5
5 4.5
4
2.8
3
2
1
0
% Changes
GRAPH NO:03
Source: Authors
INTERPRETATION:
The above bar chart reveals that the Share capital of the organisation has been increased by
2.065% due to increase in the good will and other factors of the organisation. Debtors have been
increased and the cash position also has increased. This results in the overall increase in the current
assets of the organisation. This will further benefit the organisation to perform better in the future.
TABLE NO:04
COMMON SIZE BALANCE SHEET FOR THE YEAR ENDED 2015-2016
PARTICULARS AMOUNT 2015
%
AMOUNT 2016
%
a)FIXED ASSETS

Fixed Assets 4325097.16 29.05 4414374.68 21.327
Investment 586195.00 3.93 652000.00 3.1500
b)CURRENT
ASSETS
Closing stock 582782.00 3.914 635956.00 3.072
Sundry debtors 8781523.30 58.98 13934879.26 67.325
T D S 2014-2015 62829.00 0.422 320861.00 1.550
PPF 38000.00 0.255 38000.00 0.183
EMD 467472.00 3.140 538727.00 2.602
Salary advance 22300.00 0.149 137254.00 0.663
Cash at bank 5305.98 0.035 4274.64 0.020
Cash in Hand 14953.41 0.10 20920.74 .11
SBM SB A/c 619 0.004 619 .002
TOTAL CURRENT
ASSETS
9975789.69 67.00 15631492 75.52
TOTAL 14887081.9 100 20697866 100
a)SHARE CAPITAL
Capital account 1413117.32 9.492 3281135.14 15.852
b)SECURED &
UNSECURED LOAN
Loan SBM A/c 268003.00 18.002 2665138.00 12.876
SBM Scorpio loan 519331.28 2.48 468983.78 2.265
Suresh Ghoroade 150000.00 1.007 150000.00 0.724
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 1235999.40 8.302 252764.65 12.211
S.B.I.C.C A/c 270000.00 1.813 3030436.00 14.641
Sundry creditors 4305596.39 28.921 3682091.29 17.789

Provision for tax 152876.10 1.026 70513.10 0.340
Advance from
customer
4130131.36 27.743 4822004.36 23.297
TOTAL CURRENT
LIABILITIES
10124603.3 68.00 14132609 68.28
TOTAL 14887081.85 100 20697866.3 100
ANALYSIS:
 There is slight increase in the investment in the year 2016
 Sundry debtors have increased in the current year i.e., in the year 2016
 Shareholders’ funds are increasing yearly
 In the year 2016 there is more than 25 % increase in the current assets and liabilities when
compared to 2015.
TABLE NO:05
COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2015-2016
CHANGES
%
Changes
Sales 27956500.9 52266073.5 24309573 86.95
(-)COGS 22214030.46 312814307 90674002 408.18
Gross profit 5742470.44 20984642.9 15242172 265.42
DIRECT EXPENSES
Labour charges 2470400.00 10615139.18 10590435 428.69
INDIRECT
EXPENSES
Accidental charges 7303 1300 -600 8.21
Advertisement 79895 329801 249906 312.79
Audit fee 7500 303 -7197 95.96

Bank interest & charges 248400.6 262655.12 14254.5 5.73
Catering service
charges
96783 122007 25224 26.06
Commission 89590 371212 281622 314.32
Computer 79800 18950 60850 76.35
Depreciation 163223.9 144633.48 -18590.4 11.38
DGS & D inspection
Fee
33980.64 56110 52711 155.12
Electricity charges 30861 24654 -6207 20.11
Incentives 733342 1365282 631940 861.75
Installation and service
charges
260450 649034 388584 149.19
Insurance 12203 27056 14853 121.71
Interest on Scorpio van 50551.28 53352.5 2801.22 5.54
ISO audit fee 44944 6618 -38326 85.27
LPG Gas (vehicle) 41000 75719 34719 84.68
Miscellaneous expenses 10770 1952.3 -8817.7 81.87
Newspaper &
periodicals
2124 413 1711 80.44
Office expenses 310146.25 142861.00 -167285.25 53.93
Petrol charges 162763.67 34512.6 -128251.05 78.79
Postage and courier
charges
56710 55324.25 49653.25 87.5
Printing & stationery 27797 81372 53575 192.73
Rent 63000 25475 -37525 5.95
Repairs and maintains 11735 7031 -4704 40.08
Salary 1162257 2152346 99089 0.85
Staff welfare 193016 25475 -167541.6 86.80
Telephone charges 193753 206365 12612 6.50
Tender application fee 10300 34823 33793 328.27
Transportation charges 233404.7 344542.12 111137.42 47.61

Travelling and
conveyance
123530 358326 345973 20816.74
Vat tax paid 18851.66 830887.6 812035.98 4307
Vehicle maintenance 15020 119304.26 104284.26 694.30
TOTAL INDIRECT
EXOENSES
46001470.14 8308204.41 3708057.27 8.06
TOTAL 1117619.3 2061299.31 943680.01 84.43
+ NON
OPERARTING
INCOME
AMC charges 292464 377279 84815 29
Discount received 3.99 35381 35377.81
Transportation and
installation charges
received
4200 1800 2400 57.14
Profit from trading
account
5589783.15 106151392 5023356.03 89.86
TOTAL INCOMES 5886451.14 11079841 5193389.84 88.22
NET PROFIT/LOSS 7004070.44 131411403 6137069.85 87.62

2015
30000000
25000000
20000000
15000000
10000000
5000000
0
SALES GROSS TOTAL PROFIT TOTAL NET PROFIT
PROFIT INDIRECT FROM INCOMES
EXPENSES TRADING A/C
2015
60000000
50000000
40000000
30000000
20000000
10000000
0
SALES GROSS TOTAL PROFIT TOTAL NET PROFIT
PROFIT INDIRECT FROM INCOMES
EXPENSES TRADING A/C
GRAPH NO:04
SHOWING COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2015-2016
Source: Authors

80 75.52
70
67.32 68.28
60
50
40
30
20 15.85 17.79
10 3.15
0
INVESTMENT SUNDRY
DEBTORS
TOTAL CAPITAL SUNDRY TOTAL
CURRENT ACCOUNT CREDITORS CURRENT
ASSETS LIABILITIES
INTERPRETATION:
There is 86.95% increase in the sales during the year 2016, this itself says that the
company’s performance was very good during the year 2016, due to the increase in the sales of
the organisation the organisation was able to earn more gross profit. In the year 2016 the
company has earned 87% net profit that of the last year, it is due to the effective efforts of the all
the resources employed in the organisation.
Apart from this the organisation has incurred 80.6% more expenses in the 2016 that of
the 2015. The company has to reduce its overall expenses, by which an organisation can earn
larger portion of profits.
GRAPH NO:05
COMMON SIZE BALANCE SHEET FOR THE YEAR ENDED 2015-16 & 2016-17
Source: Authors
INTERPRETATION:
The above graph reveals that the investment is quite equal when compared to both the years,
sundry debtors have increased and also there is increase in the capital account of the organisation this
because the investors are satisfied with the performance of the organisation and they are further

investing on the organisation. The company which attracts more investments from outsiders will
benefit the organisation in performing better and in providing better outputs, which will further
increase the revenue of the organisation.
TABLE NO:06
TREND ANALYSIS BALANCE SHEET FOR THE YEAR ENDED 2015-2016
PARTICULARS 31-03-2015
AMOUNT
31-03-2016
AMOUNT
2015
%
2016
%
a)FIXED ASSETS
Fixed Assets 4325097.16 4414374.68 100 21.327
Investment 586195.00 652000.00 100 3.1500
b)CURRENT
ASSETS
Closing stock 582782.00 635956.00 100 109.12
Sundry debtors 8781523.30 13934879.26 100 158.64
T D S 2015-2016 62829.00 320861.00 100 510.68
PPF 38000.00 38000.00 100 100
EMD 467472.00 538727.00 100 115.24
Salary advance 22300.00 137254.00 100 615.28
Cash at bank 5305.98 4274.64 100 80.56
Cash in Hand 14953.41 20920.74 100 139.90
TOTAL CURRENT
ASSETS
9975789.69 15631492 100 156.69
TOTAL 14887081.9 20697866 100 139
a)SHARE CAPITAL
Capital account 1413117.32 3281135.14 100 232.09
b)SECURED &
UNSECURED LOAN
Home loan SBM A/c 268003.00 2665138.00 100 994.44
SBM Scorpio loan 519331.28 468983.78 100 90.305
Suresh Ghoroade 150000.00 150000.00 100 100

2015
12000000
10000000
8000000
6000000
4000000
2000000
0
FIXED ASSETS INVESTMENT CURRENT
ASSETS
CAPITAL
ACCOUNT
TOTAL
CURRENT
LIABILITIES
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 1235999.40 2527564.65 100 204.49
S.B.I.C.C A/c 270000.00 3030436.00 100 1122
Sundry creditors 4305596.39 3682091.29 100 85.518
Provision for tax 152876.10 70513.10 100 46.124
Advance from customer 4130131.36 4822004.36 100 116..75
TOTAL CURREBT
LIABILITIES
10124603.3 14132609 100 139.58
TOTAL 14887081.85 20697866.3 100
139.03
GRAPH NO:06
SHOWING TREND ANLYSIS BALANCE SHEET FOR THE YEAR ENDED 2015-2016

18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
ASSETS
CAPITAL
ACCOUNT
TOTAL
CURRENT
LIABILITIES
Source: Authors
INTERPRETATION:
The above line chart shows the trend analysis of the organisation for the year 2015 and
2016. In the year the investments have been increased, this enables the organisation to provide better
output by utilising all the resources effectively and efficiently. Even there is increase in the capital
account of the organisation i.e., shareholders account. That means shareholders are satisfied with the
performance of the organisation and they are further investing on the organisation, it increases the
organisation’s investment, so that the organisation can make investment on their various activities
and can increase their productivity.
2016
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
ASSETS
CAPITAL
ACCOUNT
TOTAL
CURRENT
LIABILITIES

TABLE NO:07
CHANGES
PERCENTA
GE
a)FIXED ASSETS
Fixed Assets 4414374.68 4403394.85 -10979.83 -0.248
Investment 652000.00 34236204.00 33584204 5150.9
b)CURRENT
ASSETS
Closing stock 635956.00 629770.00 -6816 0.9727
Sundry debtors 13934879.26 3811700.00 -10123179.26 -72.646
T D S 2015-2016 320861.00 336201.00 15340 4.7808
Salary advance 137254.00 3048083.00 2910829 2120.76
Cash at bank 4274.64 154431.28 150156.64 3512.73
Cash in Hand 20920.74 5222.00 -15698.74 -75.039
TOTAL CURRENT
ASSETS
15631491.64 7985407.28 -7646084.36 -48.914
TOTAL 20697866.32 46625006.13 25927139.81 125.26
a)SHARE
CAPITAL
Capital account 3281135.14 12525369.64 9244234.5 281.73
b)SECURED &
UNSECURED
LOAN
Loan SBM A/c 2665138.00 2572702.00 -92436 -3.468
SBM Scorpio Loan 468983.78 392682.11 -76301.67 -16.269

c)CURRENT
LIABILITIES
S.B.M.O.D A/c 2527564.65 7547204.35 5019639.7 198.595
S.B.I.C.C A/c 3682091.29 22281926.03 18599834.74 505.14
Advance from
customer
4822004.36 235805.00 -4586199.36 -95.109
TOTAL CURREBT
LIABILITIES
1413260.94 30484252.38 1631642.98 115.70
TOTAL 20697866.32 46625006.13 25927139.81 125.26
ANALYSIS:
 Share capital has been increased by 12525369.64Rs during the year 2016-2017 as compared
with 2016-2017.
 Debtors has decreased to -10123179.26Rs
 Total current assets has decreased by -7646084.36Rs
 Fixed assets has been decreased by -10979.83Rs
 Investment has increased to 33584204Rs that off the previous year.

2016
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
1
fixed assets
capital account
invetement
s creditors
total current assets
current liabillities
2016-2017
40000000
30000000
20000000
10000000
0
Absolute changes
-10000000
fixed assets
capital account
invetement
s creditors
GRAPH NO:07

Source: Authors
INTERPRETATION:
Share capital has been increased due the good will of the organisation and also due to the
increase in the income of the organisation. This will benefit the organisation to perform better in the
future. And there is decrease in the debtors and cash position of the organization due to which the
current assets of the organization is reduced.
Overall the application of funds has been decreased due to the changes in the position of
fixed assets and current assets in the organisation.
TABLE NO:08
SHOWING COMAPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2016-
2017
CHANGES
%
Changes
Sales 52266073.5 849000928.90 36224855.37 69.30
(-)COGS 312814307 72328529.95 41047099.29 13.12
Gross profit 20984642.9 81252398.25 -4822243.95 22.97
DIRECT
2017
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
1
fixed assets
capital account
invetement
s creditors

EXPENSES
Labour charges 10615139.18 27251.00 10587888.18 9974
INDIRECT
EXPENSES
Accidental
charges
1300 12000 10700 823.07
Advertisement 329801 246071 -83730 25.38
Audit fee 3030 30000 29697 970.1
Bank interest &
charges
262655.12 709565.86 446910.74 152.70
Catering service
charges
122007 38831 -83176 68.17
Commission 371212 7103 -364109 98.08
Computer 18950 47716 28766 151.79
Depreciation 144633.48 70670 -73963 51.13
DGS & D
inspection Fee
561100 1349149 1293039 203.47
Electricity charges 24654 22678.62 -1975.38 8.01
Incentives 1365282 6000 -1359282 99.56
Installation and
service charges
649034 75134 -573900 88.44
Insurance 27056 122367 95311 352.27
Interest on
Scorpio van
53352.5 6460 -46892.5 87.89
ISO audit fee 6618 48138.33 41520.33 627.37
LPG Gas
(vehicle)
75719 10000 -65719 86.79
Miscellaneous
expenses
1952.3 35402 33449.7 10712.74
Newspaper &
periodicals
41300 90262 89849 217.55
Office expenses 142861.00 134654 -8207 5.74

Petrol charges 34512.6 200509 165996.38 480.96
Postage and
courier charges
55324.25 17127 -38197.25 69.04
Printing &
stationery
81372 2500 -78872 96.92
P.T. Renewal fee 2500 167530 16030 641.02
Rent 25475 16290 -9185 36.05
Repairs and
maintains
7031 196.01 -6834.99 97.21
Salary 2152346 3778365 1626019 75.54
Staff welfare 25475 13259.51 -12215.49 47.95
Telephone
charges
206365 10290 -196075 95.01
Tender
application fee
34823 213875 -130667.12 375.23
Transportation
charges
344542.12 402215 57672.88 16.73
Travelling and
conveyance
358326 206261.32 1704285.32 475.62
Vat tax paid 830887.6 758071.51 -72816.13 1.41
Vehicle
maintenance
119304.26 2522 -116782.26 97.80
TOTAL
INDIRECT
EXOENSES
8308204.41 12816144.93 3403887.52 40.97
TOTAL 2061299.31 4423056.02 2361756.71 114.57
+ NON
OPERARTING
INCOME

AMC charges 377279 96838 -280441 74.33
Discount received 35381 18329.48 -17052.32 4.95
DGS & D
inspection fees
18516 22894 4378 23.64
Profit from
trading account
106151392 3250939.5 102900452.5 162.79
TOTAL
INCOMES
11079841 3389000.98 -7690840.02 69.41
NET
PROFIT/LOSS
131411403 7812057 -123599346 94.05
GRAPH NO:08
SHOWING COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2016-2017
Source: company’s financial statements
INTERPRETATION:
The above bar chart reveals that the sales of the organisation increased hen compared to the
previous year which resulted in the increased gross profit. There is increase in indirect expenses and
profit from trading account, decreased total income and net profit of the organisation. The decrease
150000000
100000000
50000000
0
sales gross profit total indirect
expenses
profit from toatal income net
trading
account
profit/loss
-50000000
-100000000
-150000000
Axis Title
Axis
Title

in the net profits of the organisation disables the organisation to better in the future, it results in low
investment and also reduces the profits to the shareholders which is necessary for the development of
the organisation.
TABLE NO:09
PARTICULARS AMOUNT 2016
%
AMOUNT 2017
%
a)FIXED ASSETS
Fixed Assets 4414374.68 21.327 4403394.85 9.444
Investment 652000.00 3.1500 34236204.00 73.428
TOTAL 5066374.68 24.477 3863959885 82.87
b)CURRENT
ASSETS
Closing stock 635956.00 3.072 629770.00 1.350
Sundry debtors 13934879.26 67.325 3811700.00 8.175
T D S 2015-2016 320861.00 1.550 336201.00 0.721
Salary advance 137254.00 0.663 154431.28 6.537
Cash at bank 4274.64 0.020 336201.00 0.331
Cash in Hand 20920.74 .11 5222.00 0.011
TOTAL CURRENT
ASSETS
15631492 75.52 7985407.28 17.216
TOTAL 20697866 100 46625006.13 100
a)SHARE CAPITAL
Capital account 3281135.14 15.852 12525369.64 26.864

b)SECURED &
UNSECURED
LOAN
Loan SBM A/c 2665138.00 12.876 2572702.00 5.517
SBM Scorpio Van
loan
468983.78 2.265 392682.11 0.84
Suresh Ghoroade 150000.00 0.724 150000.00 0.321
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 252764.65 12.211 7547204.35 16.187
Sundry creditors 3682091.29 17.789 22281926.03 47.789
Advance from
customer
4822004.36 23.297 235805.00 0.505
TOTAL CURREBT
LIABILITIES
14132609 68.28 30484252.38 65.381
TOTAL 20697866.3 100 46625006.13 100
ANALYSIS:
In the year 2017 there is decrease in the fixed asset of the organisation when compared to
2016, there is larger amount of investment has been undertaken in the year 2017 than the 2016,
shareholders fund as well as current liabilities has been increased from the last year.

2016
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
2015
FIXED ASSETS INVESTMENT CURRENT CAPITAL TOTAL
ASSETS ACCOUNT CURRENT
LIABILITIES
2017
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
ASSETS
CAPITAL
ACCOUNT
TOTAL
CURRENT
LIABILITIES
GRAPH NO:09
Source: Authors
INTERPRETATION:

The above graph reveals that the common balance sheet, Share capital has increased by 26.86
% from the last year; it is because the more investors are investing the company. Debtors and the
cash position of the organisation have been decreased and this result in overall decreased in the
current assets of the organisation.
TABLE NO:10
TREND ANALYSIS BALANCE SHEET FOR THE YEAR ENDED 2016-2017
PARTICULARS 31-03-2016
AMOUNT
31-03-2017
AMOUNT
2016
%
2017
%
a)FIXED ASSETS
Fixed Assets 4414374.68 4403394.85 100 99.751
Investment 652000.00 34236204.00 100 5250.95
TOTAL 5066374.68 3863959885 100 76266.7
b)CURRENT ASSETS
Closing stock 635956.00 629770.00 100 99.027
Sundry debtors 13934879.26 3811700.00 100 27.353
T D S 2015-2016 320861.00 336201.00 100 104.78
Salary advance 137254.00 3048083.00 100 2220.7
Cash at bank 4274.64 154431.28 100 3612.7
Cash in Hand 20920.74 5222.00 100 24.96
TOTAL CURRENT
ASSETS
15631492 7985407.28 100 51.085
TOTAL 20697866 46625006.13 100 225.26
a)SHARE CAPITAL
Capital account 3281135.14 12525369.64 100 381.73

b)SECURED &
UNSECURED LOAN
Loan SBM A/c 2665138.00 2572702.00 100 96.531
SBM Scorpio Van loan 468983.78 392682.11 100 83.73
Suresh Ghoroade 150000.00 150000.00 100 100
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 252764.65 7547204.35 100 298.59
Sundry creditors 3682091.29 22281926.03 100 605.14
Provision for tax 70513.10 419317.00 100 594.66
Advance from customer 4822004.36 235805.00 100 4.89
TOTAL CURREBT
LIABILITIES
14132609 30484252.38 100 215.7
TOTAL 20697866.3 46625006.13 100 225.26

2017
50000000
45000000
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
2016
25000000
20000000
15000000
10000000
5000000
0
GRAPH NO:10
SHOWING TREND ANALYSIS BALANCE SHEET FOR THE YEAR ENDED 2016-2017

Comparison
50000000
45000000
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
Source: Authors
INTERPRETATION:
From the above graph we can understand that the financial performance of DEEPA
SOALR SYSTEMS PRIVATE LIMITED is good. Investment on the company has been drastically
increased from that off the last year i.e., 2016. This helps the organisation to boost up their revenues
by increasing productions, sales etc. Not only the investment even the assets in the organisation have
been increased from the last year.

CURRENT RATIO:
Current ratio is referred to as working capital proportion, current proportion communicates the
relationship of current advantages for current liabilities, it is usually utilized as a wide marker of an
organization's liquidity and fleeting obligation paying ability.
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐚𝐬𝐬𝐞𝐭𝐬
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐫𝐚𝐭𝐢𝐨 =
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
Current assets incorporate money and those advantages which are effectively changed over into
money inside brief time frame. E.g. Marketable securities, bills receivables, sundry debtors,
inventories, work in progress paid expenses, cash at bank cash in hand.
Current liabilities are those commitments which are payable inside brief time of for the most
part one year and incorporate remarkable costs, charges payable, sundry lenders, profit payable, bank
OD and so forth. The ideal ratio is 2:1
TABLE NO:11
SHOWING CURRENT RATIO:
Year Current assets Current liabilities Current ratio
2014-15 6344435 36070000 0.176
2015-2016 9975789.39 8618603.85 1.15
2016-2017 15610779.9 8574608.75 1.82
ANALYSIS:
The above table reveals that the current ratio is 1.15 in the year 2015-2016, and it increased to 1.82
in 2016-2017 .

Current ratio
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
1.82
0.2
0
GRAPH NO:11
SHOWING CURRENT RATIO
1.15
0.176
Source: Authors
INTERPRETATION:
The current ratio in the year 2015-2016 is 11.15, in 2016-2017 there is increase in
the current ratio i.e., 1.82, due to increase in the current assets of the organisation. But in the year
2017-2018 there is decrease in the current ratio, it is because of the increase in current liabilities and
decrease in the current assets of the organisation. In the year 2016-2017 there is increase in current
ratio because the company has maintained low variation of current assets in order to meet its short
obligation.
INVENTORY TURNOVER RATIO:
Stock/inventory turnover ratio demonstrates the no. of times the stock has been
turned over amid the period and assesses the viability with which a firm can deal with its stock. This
ratio indicates the efficiency of a firm in which stock is converted into its inventory. This indicate the

efficiency of a firm in which stock is converted into sales. A high stock turnover ratio is normally an
indication of good inventory management.
𝐂𝐨𝐬𝐭 𝐨𝐟 𝐠𝐨𝐨𝐝𝐬 𝐬𝐨𝐥𝐝
𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐓𝐮𝐫𝐧𝐨𝐯𝐞𝐫 𝐑𝐚𝐭𝐢𝐨 =
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐚𝐭 𝐜𝐨𝐬𝐭
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 =
𝐎𝐩𝐞𝐧𝐢𝐧𝐠 𝐒𝐭𝐨𝐜𝐤 + 𝐂𝐥𝐨𝐬𝐢𝐧𝐠 𝐒𝐭𝐨𝐜𝐤
𝟐
Debtors or receivables Turnover Ratio and Average collection period
It indicates the velocity of debt collection of firm. It indicates the number of times average
debtors (receivables) are turn over during a year.
𝐍𝐞𝐭 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐧𝐮𝐚𝐥 𝐒𝐚𝐥𝐞𝐬
𝐃𝐞𝐛𝐭𝐨𝐫𝐬 (𝐫𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬) 𝐓𝐮𝐫𝐧𝐨𝐯𝐞𝐫/𝐕𝐞𝐥𝐨𝐜𝐢𝐭𝐲 =
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐓𝐫𝐚𝐝𝐞 𝐃𝐞𝐛𝐭𝐨𝐫𝐬
Net credit sales = Credit sales – sales return Trade debtors = Sunday debtors + Bills
receivables
TABLE NO:12
SHOWING INVENTORY TURNOVER:
YEAR SALES AVERAGE
STOCK
INVENTORY
TURNOVER
RATIO
2014-2015 25956500.90 889143.5 3.44
2015-2016 52266073.54 609371. 85.77
2016-2017 88490928.90 632863 139.82

160
139.82
140
120
100
80
60
40
20
0
INVENTORY TURNOVER RATIO
GRAPH NO:12
SHOWING INVENTORY TURN OVER RATIO:
85.77
31.44
Source: Authors
INTERPRETATION:
The above graph reveals the inventory turnover of DEEPA SOLAR SYTEMS PRIVATE
LIMITED, in the above graph the inventory turnover ratio from the past three years is increasing. In
the year 2013-2014 it was only 31.44, in the year 2014-2015 the inventory turnover increased to
85.77 and in the year 2015-2016 it increased to 139.82. The inventory turnover is increasing due to
the increase in the sales of the organisation. The well performing organisation must enjoy a
increasing inventory turnover ratio, which says that the organisation is performing very good with
larger portion of profits.

DEBT EQUITY RATIO:
It quantifies the degree of value covering the obligation. Debt Equity Ratio is ascertained to
gauge the relative extents of relative outcast's assets and shareholder’s finances that have been put
resources into the organization.
TABLE NO:13
SHOWING DEBT EQUITY RATIO
𝐎𝐮𝐭𝐬𝐢𝐝𝐞𝐫𝐬 𝐅𝐮𝐧𝐝
𝐃𝐞𝐛𝐭 𝐄𝐪𝐮𝐢𝐭𝐲 𝐑𝐚𝐭𝐢𝐨 =
𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝐅𝐮𝐧𝐝
Shareholders fund =
𝐄𝐱𝐭𝐞𝐫𝐧𝐚𝐥 𝐄𝐪𝐮𝐢𝐭𝐢𝐞𝐬
𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐄𝐪𝐮𝐢𝐭𝐲
YEAR LONG TERM
DEBTS
SHAREHOLDER
FUNDS
DEBT EQUITY
RATIO
2014-2015 8618603.85 3281135.14 2.62
2015-2016 8574608.75 3281135.14 2.16
2016-2017 2293704.03 12525369.64 1.83

3
2.62
2.5
2.16
2 1.83
1.5
1
0.5
0
DEBT EQUITY RATIO
GRAPH NO:13
SHOWING DEBT EQUITY RATIO
Source: Authors
INTERPRETATION:
In the above bar chart it shows the debt equity ratio of the three years i.e., 2014-2015, 2015-
2016, and 2016-2017. In the year 2014-2015 the debt equity ratio was 2.62 then in the next year i.e.,
in the year 2015-2016 it decreased to 2.16, and finally in the year 2016-2017due to the reduction in
the cost of shareholders fund the debt equity ratio is decreased to 1.83. The debt equity of the
organisation is decreasing due to the non-availability/less investment from the outside sources to the
organisation.

Sales
100000000
90000000
80000000
70000000
60000000
50000000
40000000
30000000
88490928.9
20000000
10000000
0
TABLE NO:14
SHOWING SALES
YEAR SALES
2014-2015 27956500.90
2015-2016 52260073.54
2016-2017 88490928.90
GRAPH NO:14
SHOWING SALES
52260073.54
27956500.9

CASH PROFIT RATIO
The cash profit proportion relates money and attractive securities to current liabilities. It is an
amazing liquidity proportion subsequent to just money and money reciprocals with the present
liabilities.
𝐜𝐚𝐬𝐡 𝐩𝐫𝐨𝐟𝐢𝐭 𝐫𝐚𝐭𝐢𝐨 = 𝐜𝐚𝐬𝐡
𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
∗ 𝟏𝟎𝟎
TABLE NO:15
SHOWING CASH PROFIT RATIO
YEAR CASH PROFIT NET SALES CASH PROFIT
RATIO
2014-2015 1449527.92 27956500.90 5.18
2015-2016 2848893.52 52266073.54 5.45
2016-2017 3431194.33 88490928.90 3.87
GRAPH NO:15
SHOWING CASH PROFIT RATIO

Source: Authors
INTERPRETATION:
The above diagram demonstrates the Cash Profit Ratio of three years, in the year 2014-
2015 the money benefit proportion was 5.18 and in the year the money benefit proportion expanded
because of the expansion in the benefits of the association and in the year 2016-2017 with the
diminishing in the benefits of the association the money benefit proportion additionally diminished
to 3.87.This is because the decrease in the profits of the organisation. The decrease in cash profit
ratio disables the organisation to distribute the dividends to the shareholders, and also leads to the
lower investment for the next year.
GROSS PROFIT RATIO:
This proportion reflects the productivity with the edge with which the firm delivers
and offers its items. Gross Profit Ratio measures the relationship of gross benefit to net deals and is
normally spoken to as rate. The proportion demonstrates the normal spread between the expense of
products sold and the business income. A high gross overall revenue in respect to the business infers
6
5.45
5.18
5
4
3.87
3
2
1
0
CASH PROFIT RATIO

that the firm can deliver at nearly bring down expense. A high gross overall revenue is a decent
indication of administration
Gross 𝐏𝐫𝐨𝐟𝐢𝐭 𝐫𝐚𝐭𝐢𝐨 = 𝐠𝐫𝐨𝐬𝐬 𝐬𝐚𝐥𝐞𝐬 ∗ 𝟏𝟎𝟎
Where, Gross Profit = Sales – Cost of Goods Sold
TABLE NO:16
SHOWING THE GROSS PROFIT RATIO
YEAR GROSS
PROFIT
SALES GROSS PROFIT
RATIO
2014-2015 5589783.15 27956500.90 19.99
2015-2016 10615139.18 52266073.54 20.30
2016-2017 15920292.95 88490928.90 17.99

20.5 20.3
19.99
20
19.5
19
18.5
17.99
18
17.5
17
16.5
GROSS PROFIT RATIO
GRAPH NO:16
SHOWING GROSS PROFIT RATIO
Source: Authors
INTERPRETATION:
The above graph shows the gross profit ratio of DEEPA SOLAR SYSTEMS PRIVATE
LIMITED over three years. In the year 2015-2016 the gross profit of the organisation was high. It
shows the overall performance and results of all the efforts employed. In the year 2014-2015 it was
19.99 and in the next year the gross profit ratio increased to 20.30, it is because good sales activity
undertaken in the current year. And in the next year i.e., 2016-2017 the gross profit ratio decreased to
17.99.
NET PROFIT RATIO:
Net Profit Ratio is acquired in the wake of deducting working costs, intrigue and charges
from gross benefit. It builds up a relationship between net benefits and deals, and shows the

effectiveness of the administration in offering, producing, managerial and different exercises of the
firm. This proportion is the general measure of association's gainfulness.
𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭 𝐑𝐚𝐭𝐢𝐨 = 𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬 ∗ 𝟏𝟎𝟎
TABLE NO:17
SHOWING NET PROFIT RATIO
YEAR NET
PROFIT
SALES NET PROFIT
RATIO
2014-2015 1286304.00 27956500.90 4.60
2015-2016 2704260.04 52260073.54 5.17
2016-2017 3250939.50 88490928.90 3.67
GRAPH NO:17
SHOWING NET PROFIT RATIO

Authors
Prediction:
Y= a + bx
Y = 0.465 (4) + 5.41
=1.86+5.41
=7.27
The above equation can be used to predict the tentative net profit for 2018.
If the figures are substituted in the equation, then it can be observed that
y = 0.465x+5.41
INTERPRETATION:
The above bar chart shows the net profit ratio of DEEPA SOLAR SYSTEMS PRIVATE
LIMITED, over a period of three years. In the year 2015-2016 the net profit of the organisation was
Net Profit Ratio
6
5.17
5 4.6
4 3.67
3
2
1
0
Source:

high because of the overall better performance of the organisation. In the year 2016-2017 the net
profit ratio of the organisation decreased due to the decrease in the net profit of the organisation.
EARNING PER SHARE:
Face Value of Share 10 rupees
Earnings Per Share Net amount available to ESH / No.
of Equity Shares
TABLE NO:18
SHOWING EARNING PER RATIO:
YEAR Shareholders
Fund
No. of Equity
Shares
EPS
2014-2015 3281135.14 141312 23.22
2015-2016 3281135.14 328114 10
2016-2017 12525369.64 1252537 10
GRAPH NO:18
SHOWING EARNING PER SHARE RATIO:

Prediction:
Y = -6.61 (4) + 27.67
=26.44+27.67
=54.11
The above equation can be used to predict the tentative net profit for 2018.
If the figures are substituted in the equation, then it can be observed that
y = -6.61x+27.67
INTERPRETATION:
The above chart shows that the Earning Per Share of DEEPA SOLAR SYSTEMS PRIVATE
LIMITED, over a period of three years. In the year 2014-2015 the EPS of the organisation was very
high because of less short term o/s expenses. In the year 2016-2017 the EPS of the organisation
decreased due to high expenses and issuing more number of shares.
EPS
25 23.22
20
15
10 10
10
5
0
-5
-10
-15

5.01 FINDINGS:
 The capital account i.e., Shareholders fund has been increasing from the last 3 years
 The administrative expenses of the organization are increasing year by year
 The liquidity position of the organization is increasing yearly
 The net profit of the organization is decreasing due to the high expenses
 The overall total assets of the organization is increasing year by year
 In the year 2016-17 the company has earned the good amount of profit when compared with
the previous year
 The total income of the organization is increasing year by year
 The overall application of the fund is equal to the sources of acquiring them, this shows the
company is utilizing all the sources are availed.
 Their is slight increase in the investment from 2014-15 till the year 2016
 Increase in the sales and net profit every year .
 Increase in current asset and liability every year .
 Share capital has been increased every year as compared to each year .
 In the year 2016-17 fixed asset has been decreased .
 The decrease in net profit of the organization disables the organization to better in the future.
 Debtor and cash position of the organization have been decreased .
 Over trend analysis as compared to all year the total of asset has increased slightly .
 Current ratio has also been increased by 82% in the year 2016-17.
 Inventory turnover ratio is increasing every year due to the increase in the sales of
organization.
 Sales has been increased 3 times more every year .
 Lower investment on cash profit ratio in the year 2016-17.
 Gross profit ratio decreases to 17.99.
 Net profit ratio has also decreased due to lower or decreased gross profit.
 At earning per ratio share the organization goes very high due to issuing of more number of
share.

5.02 CONCLUSION
Energy requirement in India is raising fast in cycle with its economic growth. As the country
is deficient in petroleum oil, electricity etc., it has to depend on other sources in a big way for
meeting a large part of energy needs. Thus, there is a great need of this industry to meet the ever
increasing demand of solar for its undaunted growth.
This study is basically empirical in nature. The main purpose of this study was to
fundamental analysis to assess earnings quality of the DEEPA SOLAR SYTEMS’S PRIVATE
LIMITED. Accordingly, the scope of the study had been kept limited to the period 2014-15 to 2016-
17 i.e. a period of 3 years. During that period the company’s financial performance was looking to be
in better form with the increase in the sales and net profits every year. Thus, keeping the above
purpose in mind the objectives of the study have been carefully designed so as to reach the
destination and thus to fulfill our purpose of measuring financial performance appraisal of the
company. Moreover, to reach the desired destination and to accomplish the objectives of the study a
suitable research methodology has been designed. The research methodology is mostly based on
secondary data. However, primary data in the form of clarifications from the respective officers are
also collected to analyze the earnings quality of the company fruitfully. A well-chosen combination
of accounting tools and statistical tools has been developed for the data analysis.
I hope that the study will go a long way in helping the company to take remedial measures on
the basis of my path breaking findings which are appropriate for the overall improvement of the
company. Thus, if the suggestions made in this study are taken into consideration for developing an
array of survival and growth strategies in the context of highly competitive domestic and
international business environment, I hope the company will be able to improve its fundamental
analysis and achieve turnaround sooner than expected.

5.03 SUGGESTIONS:
 The company must control its administrative expenses so that it does not specify negative
effect on net profit.
 Optimum utilization of resources will help the company to earn higher amount of profit.
 The company has to make measures to boost the sales and utilize the assets effectively and
efficiently.
 The company should improve the service provide to the customers.
 Company can use some sign boards and outdoor media to make DEEPA SOLAR SYSTEMS
PRIVATE LIMITED still more effective.
 Company should take responsibility to deliver the product/services in a small period of time,
to the customer.
 A proper blend of capital structure must to be received with a specific end goal to expand the
productivity of the association.
 The profit of the company is in average but can enhance more by using more alternative
actions.
 The company should increase the procurement .
 Production and control in expenses like administrative selling effects the company financial
position so it can be taken care of .
 The firm has high inventory so I suggest that the firm must reduce the stock by increasing
sales .
 The firm should have proper check on the manufacturing process of the plant.
 The direct material cost of the firm is very high so its my advice to the firm that to decrease
the direct material cost .
 It should enhance its employees efficiency,more training needed to its employees in order to
increase its production capacity and minimize mistakes by performing the task.
 More safety precaution need to implement to the employees who directly working on solar
production process.
 The firm should maintain proper liquid funds like cash and bank balance as the liquidity ratio
of the firm is not better .
 The firm should increase the low current ratio to meet its short term obligation smoothly .

BIBLIOGRAPHY
BOOKS
 I M Pandey, Financial Management, Vikas Publishing House Pvt Limited, 2009, Tenth Edition.
 Ambrish Gupta, Financial Accounting for Management, Person India Publisher, 2012, Fourth
Edition.
 Desi vasanth, Project Management and Entrepreneurship, Himalaya Publishing House Mumbai,
2000, First Edition.
JOURNALS
 S.M.Malhotra, “Role of corporations in Rural Development”, Journal of India’s State Financial
Corporations, Jul-sep 2000.
 C.Rangarajan, “Corporation credit for productive purposes is essential for economic
development” The journal of Applied Economic, 2001.
 S.K. Bhauike, R. Dimova , “Priority Sector advances-Evolution and Monitoring”, Journal of
Comparative Economics,2003.
 R Gopalan,V Nanda, “Financial assistance to weaker sections by the Corporations”, Journal of
Financial Economics, 2004.
 Viswanathan B.S, “Rural co-operative credit”, published in Business standard Dec 6, 2005.

COMPARATIVE BALANCE SHEET
PARTICULARS 2014-15 2015-16 2016-17
a)FIXED ASSETS
Fixed Assets 3000000 4325097.16 4403394.85
Investment 300000 586195.00 34236204.00
b)CURRENT
ASSETS
Closing stock 282782 582782.00 629770.00
Sundry debtors 5781523 8781523.30 3811700.00
T D S 2014-2015 5000 6289.00 336201.00
EMD 255010 467472.00 3048083.00
Salary advance 10000 22300.00 154431.28
Cash at bank 2600 5305.98 5222.00
Cash in Hand 7520 14953.41 7985407.28
TOTAL CURRENT
ASSETS
6344435 9975784.69 46625006.13
TOTAL 9644435 14887081.85 12525369.64
a)SHARE CAPITAL
Capital account 1000000 1413117.32 2572702.00
b)SECURED &
UNSECURED
LOAN
Loan SBM A/c 100000 268003.00 392682.11
SBM Scorpio loan 320000 519331.28 7547204.35
c)CURRENT
LIABILITIES
S.B.M.O.D A/c 850000 1235999.40 22281926.03

S.B.I.C.C A/c 150000 270000.00 419317.00
Provision for tax 70000 152876.10 235805.00
Advance from
customer
350000000 41303131.36 30484252.38
TOTAL CURRENT
LIABILITIES
36070000 581900.86 46625006.13
TOTAL 45714435 14887081.85
COMPARATIVE INCOME STATEMENT
PARTICULARS 2014-15 2015-16 2016-17
Sales 22956500.9 27956500.9 849000928.90
(-)COGS 2101030.46 22214030.46 72328529.95
Gross profit 20855470.44 5742470.44 81252398.25
DIRECT EXPENSES
Labour charges 20000 24704.00 27251.00
INDIRECT EXPENSES
Accidental charges 7000 7303 12000
Advertisement 50000 79895 246071
Audit fee 6500 7500 30000
Bank interest & charges 150000 248400.6 709565.86
Catering service charges 72500 96783 38831
Commission 69950 89590 7103
Computer 30000 79800 47716
Depreciation 120000 163223.9 70670
DGS & D inspection Fee 2500 3398.64 1349149
Electricity charges 25000 30861 22678.62
Incentives 580000 733342 6000
Installation and service
charges
180000 260450 75134

Insurance 10000 12203 122367
Interest on Scorpio van 35550 50551.28 6460
ISO audit fee 39950 44944 48138.33
LPG Gas (vehicle) 40000 41000 10000
Miscellaneous expenses 20000 10770 35402
Newspaper & periodicals 2500 2124 90262
Office expenses 2900000 310146.25 134654
Petrol charges 150000 162763.67 200509
Postage and courier charges 5000 5671 17127
Printing & stationery 22000 27797 2500
Professional fee 52000 57365 143200
Rent 60000 63000 167530
Repairs and maintains 10000 11735 16290
Salary 1050000 1162257 196.01
Staff welfare 150000 193016 3778365
Telephone charges 190000 193753 13259.51
Tender application fee - 1030 10290
Transportation charges 220000 233404.7 213875
Travelling and conveyance 10500 12353 402215
Vat tax paid 15000 18851.66 206261.32
Vehicle maintenance 13000 15020 758071.51
TOTAL INDIRECT
EXOENSES
6288950 46001470.14 2522
TOTAL 27164420.44 1117619.3 12816144.93
+ NON OPERARTING
INCOME
4423056.02
AMC charges 300000 292464 96838
Discount received - 3.99 18329.48
Transportation and
installation charges received
5000 4200 22894
Profit from trading account 6050000 5589783.15 3250939.5

TOTAL INCOMES 6355271 5886451.14 3389000.98
NET PROFIT/LOSS 66321 7004070.44 7812057

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