Summer Training Report on Financial Performance Analysis for MBA

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A
SUMMER TRAINING PROJECT REPORT
ON
“FINANCIAL PERFORMANCE ANALYSIS”
AT
SURYA ROSHNI LIMITED
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
(SESSION 2016-2018)
SUBMITTED TO: SUBMITTED BY:
DEPARTMENT OF MANAGEMENT MEGHA BANSAL
STUDIES ROLLNO.(16022017)
MBA (2 YEAR)
BHAGAT PHOOL SINGH MAHILA VISHWAVIDYALAYA
KHANPUR KALAN, SONIPAT, HARYANA

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ACKNOWLEDGEMENT
It‟s my great pleasure to do the Summer Training in one of the largest manufacturer of ERW
pipes – “SURYA ROSHNI LIMITED”, having strong presence in National & International
market. This project report is concerned with Finance & Accounts Department of the
company at Bahadurgarh for 45 days.
I like to thank Mr. Atul Gupta (Manager – Finance & Accounts) for sharing his vital
experiences with me and making me familiar with the accounting activities. I like to thank
him for giving his best knowledge and efforts.
He motivated me to serve my best efforts to complete my Summer Training for 45 Days in
the company.
Again I like to thank all the staff of accounts Department for giving me their precious time,
support, valuable guidance and information.
I like to thank all persons who have directly and indirectly helped me for grabbing more and
more knowledge about the departments and the company as a whole.

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DECLARATION
I, MEGHA BANSAL, Roll No.16022017 student of MBA of BPS WOMEN
UNIVERSITY hereby declare that the Project Report entitled “FINANCIAL
PERFORMANCE ANALYSIS” is an original work and the same has not been submitted to
any other institute for the award of any other degree. And the suggestions as approved by the
faculty were duly incorporated.
MEGHA BANSAL

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ABSTRACT
Finance is the life blood of business. And it is very essential for smooth running of the
business. It controls the activities, policies and decisions of the business.
The present study is an attempt to make comprehensive analysis of financial performance of
Surya Roshni Limited as financial performance influence long term stability, profitability and
liquidity. This project involves an analysis of financial statements of the company in the light
of various statements like Common Size Statement, Comparative Statement and Ratio
Analysis.
The significance of this study is that to get know about financial performance of company
and the way by which theoretical accounting procedure are put into practical usage. It has
been undertaken for the period of four years from 2013 to 2016 and necessary data has been
obtained form company records, annual statement and published newspaper articles.
I tried and evaluated various ratios to appreciate company performance through financial
performance of last four years. Also the comparative statement is prepare to analyze the
changes in balance sheet in four years and common size statement is prepare to present the
changes in various items in relation to net sales, total assets and total liability.
Finally cash flow analysis and inter firm analysis helps the fund and cash flow position of the
company and its market position.

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CONTENTS
CHAPTERS TITLES PAGE
NO.
1 1.1 INTRODUCTION TO THE STUDY
1.1.1 SIGNIFICANCE OF FINANCIAL PERFORMANCE
ANLYSIS
1.1.2TECHNIQUES FOR FINANCIAL PERFORMANCE
ANALYSIS
1.1.3 LIMITATION OF FINANCIAL PRFORMANCE
ANALYSIS
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3
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2 2.1 COMPANY PROFILE
2.1.1 VISION
2.1.2 MISSION
2.1.3 CORE VALUES
2.1.4 CORPORATE HISTORY
2.1.5 DIVISION OF ORGANISATION
2.1.6 PRODUCTS
2.1.7 KEY PERSON
2.1.8 MILESTONE
2.1.9 EXPORTS
2.1.10 INSPECTION AGENCIES
2.1.11 VALUED CUSTOMERS
2.1.12 SWOT ANALYSIS
2.1.13 CORPORATE SOCIAL RESPONSIBILITY
2.1.14 SHAREHOLDING PATTERN
2.1.15 PRINCIPAL BUSINESS ACTIVITIES OF THE
COMPANY
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3 3.1 OBJECTIVE AND SCOPE
3.1.1 OBJECTIVES OF STUDY
3.1.2 SCOPE OF THE STUDY
3.1.3 LIMITATIONS OF STUDY
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4 4.1 RESEARCH METHODOLOGY

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4.1.1 DATA COLLECTION
4.1.2 SAMPLING DESIGN
4.1.3 TOOLS USED
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5 5.1DATA ANALYSIS AND INTERPRETATION
5.1.1COMMON SIZE STATEMENTS ANALYSIS
5.1.2RATIO ANALYSIS
5.1.3 COMPARATIVE STATEMENT ANALYSIS
5.1.4 INTER FIRM ANALYSIS
5.1.5 CASH FLOW STATEMENT ANALYSIS
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6 6.1 OUTCOMES 50
7 7.1 BIBILIOGRAPHY 51

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LIST OF TABLES
Table No.1 Key Person in Organization
Table No.2 Promoters and their Shares
Table No.3 Company Product and respective contribution
Table No.4 Common Size Income statement for Mar 13 to Mar 16
Table No.5 Common Size Balance sheet for Mar 13 to Mar 16
Table No.6 Values for Current ratio
Table No.7 Values for Liquid ratio
Table No.8 Values for Debt to Equity ratio
Table No.9 Values for Debt to Total Fund ratio
Table No.10 Values for Proprietary ratio
Table No.11 Values for Gross Profit ratio
Table No.12 Values for Net Profit ratio
Table No.13 Values for Return on Capital employed (ROCE) ratio
Table No.14 Values for Earning per Share (EPS) ratio
Table No.15 Values for Debtor Turnover ratio (DTR) and Average Collection period(ACP)
Table No.16 Values for Fixed Assets Turnover ratio (FTR)
Table No.17 Values for Working Capital Turnover ratio
Table No.18 Comparative Balance Sheet for Mar16 and Mar 15
Table No.21 Company‟s Market Capitalization and Sales
Table No.22 EPS, ROE & ROCE of Surya and Peers
Table No.23 Cash Flow Statement for Mar16 and Mar 15
Table No.24 Cash Flow Statement for Mar14 and Mar13

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LIST OF CHARTS
Chart No. 1 % of Shareholding
Chart No. 2 Product % contribution to company turnover
Chart No. 3 Current ratio
Chart No. 4 Liquid ratio
Chart No. 5 Debt to Equity ratio
Chart No. 6 Debt to Total Fund ratio
Chart No. 7Proprietary ratio
Chart No. 8 Gross Profit ratio
Chart No. 9 Net Profit ratio
Chart No. 10 ROCE
Chart No. 11 EPS
Chart No. 12 DTR and ACP
Chart No. 13 Fixed Assets Turnover Ratios (FTR)
Chart No. 14 WC Turnover Ratios
Chart No. 15 Market Cap and Sales of Surya and Peer
Chart No.16 EPS, ROE and ROCE

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CHAPTER-1
INTRODUCTION TO
STUDY

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1.1 INTRODUCTION TO THE STUDY
Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of balance
sheet and profit and loss account. It also helps in short-term and long term forecasting and
growth can be identified with the help of financial performance analysis. The analysis of
financial statement is a process of evaluating the relationship between the component parts of
financial statement to obtain a better understanding of the firm‟s position and performance.
This analysis can be undertaken by management of the firm or by parties outside the namely,
owners, creditors, investors.
The analysis of financial statement represents three major steps:
 The first step involves the re-organization of the entire financial data contained the financial
statements. Therefore the financial statements are broke down into individual components
and re-grouped into few principle elements according to their resemblances and affinities.
Thus the balance sheet and profit and loss accounts are completely re-casted and presented in
the condensed form entirely different from their original shape.
 The second step is the establishment of significant relationships between the individual
components of balance sheet and profit and loss account. This is done through the application
tools of financial analysis like Ratio analysis, Trend analysis, Common size balance sheet and
comparative Balance sheet.
 Finally, the result obtained by means of application of financial tools is evaluated.
1.1.1 SIGNIFICANCE OF FINANCIAL PERFORMANCE ANLYSIS
The analysis of financial performance is used by most of the business communities. They
include the following.
1. Trade Creditors
The creditors provide goods / services on credit to the firm. They always face concern about
recovery of their money. The creditors are always keen to know about the liquidity position
of the firm. Thus, the financial performance parameters for them evolve around short term
liquidity condition of the firm.
2. Suppliers of long term debt

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The suppliers of long term debt provide finance for the on-going /expansion projects of the
firm. The long term debt providers will always focus upon the solvency condition and
survival of the business. Their confidence in the firm is of utmost importance as they are
providing finance for a longer period of time. Thus, for them the financial performance
parameters evolve around the following:
i) Firm‟s profitability over a period of time.
ii) Firm‟s ability to generate cash - to be able to pay interest and
iii) Firm‟s ability to generate cash – to be able to repay the principal and
iv) The relationship between various sources of funds.
The long term creditors do consider the historical financial statements for the financial
performance. However, the financial institutions bank also depends a lot on the projected
financial statements indicating performance of the firm. Normally, the projections are
prepared on the basis of expected capacity expansion, projected level of production / service
and market trends for the price movements of the raw material as well as finished goods.
3. Investors
Investors are the persons who have invested their money in the equity share capital of the
firm. They are the most concerned community as they have also taken risk of investments –
expecting a better financial performance of the firm. The investors‟ community always put
more confidence in firm‟s steady growth in earnings. They judge the performance of the
company by analyzing firm‟s present and future profitability, revenue stream and risk
position.
4. Management
Management for a firm is always keen on financial analysis. It is ultimately the responsibility
of the management to look at the most effective utilization of the resources. Management
always tries to match effective balance between the asset liability management, effective risk
management and short-term and long-term solvency condition.
1.1.2TECHNIQUES FOR FINANCIAL PERFORMANCE ANALYSIS
a) COMMON SIZE STATEMENT
Common size statements are those in which individual figures are converted into percentage
to some common base. Percentage of each individual item has shown its relation to its

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respective total. This type of analysis is called vertical analysis since each accounting
variable is analyzed vertically. It may be prepared for
 Balance sheet
 Income statement
Purpose
 To present the changes in various items in relation to net sales, total assets and total liability.
 To establish a relationship between various items of income statement to total revenue and
various items of balance sheet to assets or liability.
 To provide a common base for the various comparison.
Utility of Common Size Statement
These statements are very useful or comparing the profitability and financial position of two
or more businesses. This is because the financial statements of different firms can be
converted into uniform common-size format irrespective of the size of individual items.
However, the comparison will be valid only when the accounting policies used by various
firms are similar.
Limitations of Common Size Statement
 These statements show the % of each item to the total sum but do not disclose change in
individual item from period to period.
 There are no standardized norms for the proportion of each item to total.
B) FINANCIAL RATIO ANALYSIS
The Financial Ratio Analysis is considered to be the most powerful tool of financial analysis.
In simple language ratio means relationship between two or more things. It is also said that a
ratio is the indicated quotient of two mathematical expressions. The ratio analysis also helps
to summarize the large quantities of financial data and to make qualitative judgment about the
firm‟s financial performance. There are various liquidity ratios which are quantitative in
nature but are helpful to make qualitative judgment about the firm. The financial ratios
involve useful information about the analysis of the firm. However, standalone ratio of one
firm alone may not be useful to evaluate the firm‟s performance. Therefore, ratio should
ideally be compared with some standard which may consist of the following
i) Past Ratios
Past ratios are the ratios which are calculated from the financial statements of previous years.
ii) Competitors’ Ratios

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The ratios of some same size and industry representative firm, which can be considered as the
progressive and successful competitor can be useful for comparison. However, they should be
compared within a similar timeframe.
iii) Industry Ratio
There are some ratios which are common at industry level. However, they may be compared
at the firm level – in reference to which the industry belongs.
Ratios are calculated based on the financial and related statement like. Profit & Loss account,
Balance Sheet etc. The ratios are classified as under:
a) Liquidity Ratios
b) Leverage Ratios
c) Activity Ratios and
d) Profitability Ratios
C) COMPARATIVE STATEMENT ANALYSIS
Comparative Statement Analysis is one of the methods to trace periodic change in the
financial performance of a firm. The changes over the period are described by way of
Increase or Decrease in income statement and balance sheet. The changes are normally of
two types:
i) Aggregate Changes
ii) Proportional Changes
An assessment of comparative financial statement helps to highlight the significant facts and
points out the items requiring further analysis. All annual report of the selected companies
provides data related to last two financial years.
Various types of financial statements are prepared in comparative form for the purpose of
analysis. Out of these the most important financial statements are:
1. COMPARATIVE BALANCE SHEET
2. COMPARATIVE PROFIT & LOSS ACCOUNT
IMPORTANCE OF COMPARATIVE STATEMENT
 To make the data simpler and more understandable.
 To indicate the strong points and weak points of the firm.
 To indicate the trend.
 To compare the firm‟s performance with the average performance of the industry.

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 To help the management in forecasting the profitability and financial soundness of the
business.
LIMITATIONS OF COMPARATIVE STATEMENT
 These statements do not present the change in various items in relation to various assets, total
liabilities or net sales.
 These statements are not useful in comparing the financial statements of two or more
business because there is no common base for comparison
D) TIME SERIES ANALYSIS OR TREND ANALYSIS
The Time Series Analysis or Trend Analysis indicates of ratio indicates the direction of
changes. The trend analysis is advocated to be studied in light of the following two factors.
i) The rate of fixed expansion or secular trend in the growth of the business and
ii) The general price level.
Any increase sales statement may be because of two reasons, one may be the increase in
volume of business and another is the variation in prices of the goods / services. For trend
analysis, the use of index number is generally advocated. The procedure followed is to assign
the number 100 to the items of each base year and to calculate percentage changes in each
item of the other years in relation to the base year. This is known as „Trend-Percentage
Method‟.
E) INTER FIRM ANALYSIS
A firm would like to know its financial standing vis-à-vis its major competitors and the
industry group. Analysis of financial performance of all firms in an industry and their
comparison at a given point of time is referred to the Cross Section Analysis or Inter-firm
analysis.
F) CASH FLOW STATEMENT
It is a statement showing inflows and outflows of cash during a particular period. It is a
summary of sources and application of cash during a particular span of time. It analyses the
reason for changes in balance of cash between the two balance sheet dates. A cash flow
statement includes only those items which effect cash. It is also known as “statement of
changes in financial position-cash basis.

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USES OF CASH FLOW STATEMENT
 Useful for short term financial analysis.
 Useful in preparing the cash budget.
 Comparison with cash budget
 Study of trend of cash receipt and payments.
 It explains the deviation of cash from earnings.
 Helpful in ascertaining cash flow from various activities separately.
LIMITATIONS OF CASH FLOW STATEMENTS
 Not suitable for judging the liquidity.
 Possibility of window dressing.
 It ignores the non-cash transactions.
 It ignores the accrual concept of accounting.
 No substitutes for income tax.
 Historical in nature.
CLASSIFICATION OF CASH FLOW STATEMENT
Cash flow activities have been classified into three parts:
(A) CASH FLOW FROM OPERATING ACTIVITIES
Operating activities are main revenue generating activities of an enterprise. It includes cash
flow from those transactions and events which enter into ascertainment of net profit or loss of
the enterprise.
(B) CASH FLOW FROM INVESTING ACTIVITIES
It includes the purchase and sales of long term assets such as land, building, plant, and
machinery etc. not held for resale. These activities also include the purchase and sale of such
investment which is not included in cash equivalents. Cash flow from investing activities
discloses the expenditure incurred for resources intended to generate future income and cash
flows.
(C) CASH FLOW FROM FINANCING ACTIVITIES
Financing activities are the activities that results in change in capital and borrowing of the
enterprise. It includes cash receipt from issuing shares or other similar instruments etc.
1.1.3 LIMITATION OF FINANCIAL PRFORMANCE ANALYSIS
Each project gives rise to its own unique risks and hence possesses its own unique challenges.
1. Only Interim Reports:

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Only interim statements don‟t give a final picture of the concern. The data given in these
statements are only approximate. The actual position can only be determined when the
business is sold or liquidated.
2. Don’t Give Extra Position:
The Financial Statements are expressed in monetary values, so they appear to give final and
accurate position. The values of fixed assets in the Balance Sheet neither Represent the Value
for Which Fixed Assets Can Be Sold or the Amount Which Will Be Required to Replace
These Assets.
3. Historical Costs:
The Financial Statements Are Prepared On The Basis Of Historical Costs Or Original Costs.
The Value of Assets Decreases with the Passage of Time Current Price Changes Are Not
Taken Into Account. The Statements Are Not Prepared Keeping In View The Present
Economic Conditions. The Balance Sheet Loses The Significance Of Being An Index Of
Current Economic Realities.
4. Act of non-monitory factors Ignored:
There are certain factors which have a bearing on the financial position and operating results
of the business but they don‟t become a part of these statements because they can‟t be
measured in monetary terms. Such factors may include in the reputation of the management.
5. No Precision:
The precision of financial statement data is not possible because the statements deal with
matters which can‟t be precisely stated. The data are recorded by conventional procedures
followed over the years. Various conventions, postulates, personal judgments etc

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2.1 COMPANY PROFILE
Surya Roshni Limited is proudly serving its customers with ERW pipe products and
lighting products and fan products by combining quality, experience, technical know-how,
dependability and application of highest standards and technology.
It was incorporated in 1973 with a steel pipe plant located at Bahadurgarh in Haryana & has
emerged today as a vast conglomerate. Presently, this plant has emerged as one of the largest
plant in Asia, with a production capacity of 180000 MT of steel pipes annually. Today
company‟s product portfolio comprise of fluorescent tube lights, GLS lamps, CFL lamps,
HPSV Lamps, HPMV Lamps Metal Halide Lamps and ERW pipe.
With a turnover of over Rs.3000crores in the financial year 2015 - 16, the company‟s quest
for growth is never ending. There are regular expansions of capacity and installation of
balancing facilities for augmenting the production to meet growing demand in both lighting
and steel segments.
Surya Roshni Limited is amongst the world leading ERW steel pipe manufacturer of the oil
and gas industry and a major supplier for the construction sector. The company has wide
marketing network with its branches, dealers and retailers outlets spread across the length and
breadth of the company.
Presently, it has marketing network of 30 branches, over 1500 authorized dealers and over 1,
00,000 retailers in India itself. In India, Surya Roshni is the second largest seller of GLS and
FTL. Currently company has presence in over 48 countries namely Australia, Indonesia,
Oman, Bahrain, Iran, Paraguay, Bangladesh, Jordan, Saudi Arabia, Botswana, Korea,
Singapore, Columbia, Kenya, Sri Lanka, Egypt and many more.
2.1.1 VISION
To become an “integrated global energy corporation” and offer competitive, best in class,
premium quality product to satisfy day to day needs of consumers in India and across the
world.

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2.1.2 MISSION
Energizing Lives and Beyond
To become global leader by consistently exceeding the consumer demand, upgrading
technology and making quality products. We strive to stay on the top of today‟s and
tomorrow‟s technology so that we can help to create a better future for ourselves, our
partners, dear employees and future. We aim to do justice to our vision to prove as better
visionaries of the world.
2.1.3 CORE VALUES
Integrity: Adhering to moral values we share an undivided spirit. Thus integrity is a virtue
that reflects in our personal lives, financial transactions and business deals.
Customer Satisfaction: our pivotal reason of success our dear customers are our guiding
stars who directed us towards our future endeavor and provide us with room for
improvement.
Social responsibility: we try hard to help our mother nature. We strive to create eco-friendly
products and optimize our resources to conserve the environment.
Surya Parivar Philosophy: a principle centric close knit family which stands high on the
pillars of trust, mutual respect for one another and team spirit.
2.1.4 CORPORATE HISTORY
1973- Setting up of steel plant at Bahadurgarh
1980- New automatic galvanizing plant
1984- Setting up of lighting plant at Kashipur
1989- HPSVL and energy efficient 26mm FTL production began
1991- Production of CR pipes.
1992- Setting up of second lighting plant at Malanpur, production of fluorescent powder,
filament for GLS and FTL commenced.
1994- New modern lead glass shell.
1998- Asia‟s largest ribbon glass plant started with annual capacity of 400n million GLS and
25 million FTL shell.
2006- Additional capacity of CFL of 1 Mm units‟ p.m.
2009- New world class pipe unit in Bhuj, Gujarat.
2009- PVC plant.

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2010- Setting up of high mast plant at Malanpur.
2012- Technology and innovation centre at Noida.
2014-Launch of Fans
2015-Launch of Surya Home Appliances
2016- Commissioning of New Steel Pipe Plant at Hindupur (A.P.)
2.1.5 DIVISION OF ORGANISATION
STEEL DIVISION
Surya is a leading producer of steel pipes with an extensive product range consisting of 15
mm NB to 400 mm NB in both Galvanized and Black pipes conforming to international
quality standards at Bahadurgarh plant in Haryana. The company is maximizing their trust to
produce high quality products, which are used in API cross country pipe lines for oil and gas
transportation, exports and domestic supply. Surya is committed to touch new heights in
quality and productivity. As the company is growing and achieving new high volumes, new
facilities have been added to meet the market requirements.
LIGHT DIVISON
Lighting is always a prime necessity in the modern world. With the increase in residential
houses, the demand for lighting and consequently the lighting industries are growing at
tremendous pace. With growing demand for lighting products, the Lighting industry is on a
strong wicket. Surya Roshni brings brightness to many homes every evening in over 48
countries across the globe as it has an exhaustive range of luminaries and accessories to meet
the requirement of every segment of the society. Through whole hearted efforts and better
commitment at all levels, the revenue from operations and profitability of your company will
be provide a more healthy growth and profitability in the years to come.
The lighting division has witnessed a growth in revenue from operations. During the year
under review, the revenue from operation of the division increased to Rs. 769.84crores as
compared to Rs. 722.13crores last year, an increase of 6.61% over the previous year.
FAN DIVISION
Surya Roshni launched Fans in Indian market in January 2014 under its brand name Surya
and achieved great acceptance with more than 20,000 distributors of their lighting products.
2014-2015 was the first complete year for fans sales and Company achieved great success
and sold 800000 units of fans in the year. The acceptance of the brand Surya fans was good
amongst distributors, retailers as well as customers. Company started with standard and

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economy segment in Ceiling fans and complete range of table, wall, pedestal and exhaust
fans, but encouraged by the success and demand in the market, added Value added fans, like
decorative ceiling fans, high speed wall and pedestal fans, tower and cabin fans, which will
give edge to the brand image and place the Surya brand amongst the best in the fan industry.
Surya has taken a target of selling 15,00,000 fans in the year 2015-2016 and plan to add
many more value added niche products in the range.
2.1.6 PRODUCTS
Steel Pipes & Tubes
Incepted in 1973, Surya Steel Pipe Ltd. has been producing exceptional range of quality
materials to the worldwide market. It grew at a very rapid pace and has a total group turnover
of Rs.20000 Million (US $600 Million).Capacity: 3, 00,000 M.T. p.a.
Lighting Product
Guided by its sheer commitment to become the prominent suppliers of high quality lighting
in India and abroad, Surya is single largest manufacturing company of Lamps in the country
with its high brand visibility in over 45 countries.
Capacity: Fluorescent Lamps - GLS Lamps - Halogen Lamps - Special Purpose Lamps: 25
Million Nos.65 Million Nos. 8 Million Any 2 Million Any
Herbal
Surya Herbal is a social institution that is committed to serve the mankind with its wide range
of herbal products. The company owes its success to the ancient sciences and constant
research done in this field.
Cold Rolled Steel
C.R. Strips/Sheets serve as critical inputs for a wide range of applications in a wide spectrum
of industries. Considering the sophisticated applications, the CR Steel Strips are required to
meet high standards of surface finish, heat treatment and close tolerance on dimensions.
Software Solutions
Surya Soft-tech Ltd. specializes in providing effective software solutions to the prominent
companies in India and abroad. The company's emphasis is on quality and innovation at
every stage.
2.1.7 KEY PERSON
TABLE NO.1 KEY PERSON IN ORGANISATION

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Chairman J.P. Agarwal
Managing Director RajuBista
Company Secretory BB Singal
Whole Time Director Utkarsh Dwivedi
Additional Director SalilaTiwari
Chief Executive Officer Tarun Baluda
Non-Executive Director Dev Datt Das
Nominee Director-IDBI Rajiv Kumar Sinha
Non-Executive Independent Director Ravinder Kumar Narang
Sudhanshu Kumar Awasthi
KK Narula
Mukesh Tripathi
2.1.8 MILESTONE
Surya Roshni, the largest G.I. Pipes manufacturer in India, has crossed several milestones.
Surya Roshni got the prestigious European “CE” marking certification for its steel products,
which is mandatory for supplying materials in Europe in the year 2012
It has set up new API pipe mill at Bhuj, Gujarat to cater to western India and global markets.
Top consultants of repute have recommended Surya products to architects across the entire
country.
It has recently been approved amongst others by Spectral consultant, Potential consultant,
DGMAP (All India), CPWD Rajasthan
Surya Group is the only company that is manufacturing “½ to 100” inches dia pipes in India
along with Section Pipes.
2.1.9 EXPORTS
Wide global presence Surya Roshni with its wide range of pipes for different applications has
steadily built a place for itself in the international market. It is presently exporting pipes to
various countries like Bangladesh, Belgium, Ethiopia, Germany, Ghana, Italy, Kuwait, Malta,
Mozambique, Myanmar, Nepal, Oman, Qatar, Srilanka, UAE, UK, USA and a few others. Its

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quest for new markets is continuing and with this view in end the company is participating in
industrial exhibitions being held abroad. Efforts on to make a foray in countries like
Australia, Canada, Eritrea, Kenya, Malaysia, Nigeria, Singapore, Tanzania, Uganda and
Yemen. Due to ISO 9001 accreditation and the license from American Petroleum Institute for
using API monogram, Surya products find ready acceptance for its quality.
2.1.10 INSPECTION AGENCIES
Third party inspection agencies that inspect/ assess products/ work on behalf of clients are
like Indian Oil Corporation Ltd. (IOCL), Gas Authority of India Ltd. (GAIL), Oil& Natural
Gas Commission (ONGC) Oil India, and Hindustan Petroleum Corporation Ltd.(HPCL),
Bharat Petroleum Corporation Ltd.(BPCL), GSPL, GSPC, IGL, MGL, GLIS, National
Thermal Power Corporation(NTPC), Reliance and TATA Projects.
2.1.11 VALUED CUSTOMERS
Surya valued customers in Govt. Sector are CPWD, PWD, DMRC, PHEDs, Railways, State
Irrigation Departments, BSNL, SAIL, State Electricity Boards, Development Authority,
Housing Board, Defense, CGWB, GWSSB, I&PH, Shimla etc. Oil, Gas and Power Sector
include IOCL, HPCL, BPCL, OIL, GAIL, CRL, MRPL, CPCL, BRPL, and NRL, all
Refineries in India, IBP, Bharat Shell, Gujarat Gas Co., Haldia Petrochemicals, IPCL,
Reliance Petroleum, Essar, NTPC, BHEL, and Power Grid etc. Surya is enlisted with various
premier organizations as approved Vendor for supplying MS/GI ERW Pipes conforming to
various BIS, API 5Land API 5CT specifications. It is also registered with DGS &D.
2.1.12 SWOT ANALYSIS
STRENGTH
Brand „Surya‟ is well accepted internationally and holds a prominent position in the Indian
Steel Pipes and Lighting industry. With such strong brand equity, the Company is well poised
to capitalize on the opportunities unfolding in the global market. The Company has
accredited quality certifications from leading agencies and has years of successful track
record on schedule delivery. Its commitment to deliver world-class solutions to its clients in
the shortest time lag has enabled it to build robust customer relationships. The Company‟s
management has more than four decades of experience in the Steel Pipe industry and nearly
three decades of experience in the Lighting industry. Also, it has a strong and extensive Pan
India dealers and retailers network, with more than 2,00,000 retailers. The Company is

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competitively positioned today over its rivals and has become a prominent brand in the
consumer market due to the following factors –
 One of the largest GI & Hollow Section Pipes Manufacturer • High Mast and ERW pipe
Manufacturing unit at Malanpur, Madhya Pradesh • Enhanced product offering with the
introduction of Square & Section and Rectangular pipes in steel • Asia‟s largest ribbon glass
plant from Dema Glass UK at Gwalior, Madhya Pradesh • The Company is the only lighting
company with 100% backward integration, manufacturing all its components inhouse • It is
the second largest seller of GLS and FTL in India • Surya Lamps saves up to 85% electricity
and have a much longer life • Surya Technology & Innovation Centre (STIC) – the stateof-
the-art lighting laboratory in Noida is one of the best lighting laboratories in Asia. STIC has
been recognized as an R & D centre by DSIR, Ministry of Science and Technology. Listed as
one of the best testing laboratories in India by BEE (Bureau of Energy Efficiency) LED
lighting system • To complement its foray in the luminaire segment, the Company has set up
a state-of-the-art manufacturing facility for High Mast Lighting Systems and Octagonal Poles
 Surya provides wide categories of designer and colourful range of ceiling, table, pedestal and
wall mounting fans, along with a wide range of domestic exhaust fans.
WEAKNESS
In the Lighting business segment, the margins are low due to competition from the
established market players and also from the unorganized sector. The Company‟s businesses
are also vulnerable to macro environment changes.
OPPORTUNITIES
Steel Tubes & Pipes
City Gas Distribution: The government has significantly increased its focus on reducing
pollution in the cities and the best alternative of fuel for vehicles is Compressed Natural Gas.
Hence, the government has placed City Gas Distribution (CGD) companies on top priority for
domestic low cost natural gas. PNGRB is currently carrying out the sixth round of bidding
and allotting licence for newer cities for CGD. This would lead to a higher demand for pipes
used for Compressed as well as Piped natural gas.
Housing for All: The central government has launched a „Housing for all‟ scheme, to
provide houses to the economically weaker sections and provide assistance in building close

25
to 3 crore homes. This will boost the construction industry and also create huge demand for
water and sewage pipes.
Smart Cities: Under this initiative, the government wants to develop 100 smart cities, with
better urban infrastructure. This will bring in investments for new infrastructure and also to
upgrade existing infrastructure, leading to a greater demand for pipes and structures. The
government has also emphasized the need to have CGD in all Smart Cities, which will further
augment the demand for pipes. Better Monsoon: For the year 2016, the IMD has projected a
normal monsoon, which would boost the Agriculture sector in India, leading to a higher
demand for pipes for irrigation.
LED
Government Initiatives: To enhance the energy efficiency of the nation, the government has
launched Unnat Jyoti by Affordable LEDs for All (Ujala) Scheme. Under this scheme, the
government has planned to make LED lamps available at subsidized rates and to distribute
close to 770 million LED lamps. This has significantly increased the demand for LEDs in
India. Growing Awareness: LED lamps have a much lower energy consumption and a longer
life. With the growing awareness amongst customers, the demand for LED would further
grow. Compulsory Registration: A Compulsory Registration Scheme (CRS) of Deity/BIS for
LED products has been introduced in the industry, to keep a check on the safety standards of
LED products. This will significantly curb the unorganized sector, leading to better demand
prospects for the organized sector.
Fans and Home Appliances
Growing Housing Segment: There is a steady growth in the real estate sector in India,
leading to a growing demand for fans. Also the government‟s initiative of 'Housing for All',
will further increase the demand for fans and home appliances. Demographics: India is
steadily witnessing an increase in young working class as well as middle class population.
This would lead to a steady demand for fans and home appliances. Energy Efficiency: With
rising power per unit cost, more and more consumers are opting for efficient products. This
would curb the unorganized sector and lead to better demand for the organized sector.
THREATS
Competition: Competition from spurious manufacturers, unorganized sector without quality
constraints and multinational companies is always a challenge. The Company believes in
confronting such challenges and transforming them into opportunities. It will mitigate these

26
threats with better products, informed and better customer relationships and more aggressive
marketing activities.
Cost of Raw material: Metal being a major raw material in the steel tubes and pipe segment,
the fluctuation in its cost may affect the Company‟s operating margins. However, the
Company has adopted various measures to minimize the adverse effect of volatile prices of
raw materials.
2.1.13 CORPORATE SOCIAL RESPONSIBILITY
Surya Roshni Limited CSR Policy” describes and contains the Company's philosophy for
delivering its responsibility as a corporate citizen and lays down the guidelines, process and
mechanisms for undertaking socially useful programs for welfare and sustainable
development of the community at large. The key objective is to eradicating hunger, poverty
and malnutrition, Promoting health care, making available safe drinking water & Sanitation,
Promoting education, enhancing vocational skills & livelihood enhancement projects,
Women empowerment, Promoting of home and hostels for women and orphans, Reducing
inequality faced by socially and economically backward groups, Animal welfare /animal
care, Promoting Art & Culture, Contribution to Prime Minister Relief Fund, Rural
development projects, and addressing environmental issues.
To attain Company's Corporate Social Responsibility objective in a professional and
integrated manner, the Company discharged its responsibilities through Surya Foundation. In
pursuance of this objective, the foundation is working on the following areas:
 Adarsh Gram Yojana
 Development of Preventive and Cost Effect and Health Systems of Naturopathy and Yoga
 Ideal Village Projects with emphasis on Literacy and Personality Development of Youth
During the year under review, Company spends Rs. 1.30 crores on corporate social activities
being two percent of the average net profits of the company made during the three
immediately preceding financial years. At the business level this is reflected through energy
efficient products made to conserve the scarce energy resources level.
2.1.14 SHAREHOLDING PATTERN
TABLE NO.2 PROMOTERS AND THEIR SHARES
CATEGORY NO. OF SHARES HELD % OF SHAREHOLDING

27
INDIVIDUALS 6590389 15.035
BODIES CORPORATE 9041484 20.628
INSTUTIONAL
INVESTORS
47675 0.109
NRI/OCB 193615 0.442
PROMOTERS 27754726 63.322
CLEARING HOUSE 203161 0.464
TOTAL 43831250 100
Chart No.1 % OF SHAREHOLDING
2.1.15 PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company
shall be stated:-
TABLE NO.3 COMPANY PRODUCT AND RESPECTIVE CONTRIBUTION
SI. No. Name and Description of
main products / services
NIC Code of the
Product/services
% to total turnover
of the company
1 Pipes & Tubes 24106 43.20%
INDIVIDUALS
15%
BODIES
CORPORATE
21%
INSTUTIONAL
INVESTORS
0%
NRI/OCB
0%
PROMOTERS
63%
CLEARING
HOUSE
1%

28
2 CR St rips 24105 15.63%
3 Lighting Products 27400 38.60%
4 Others - 2.57%
CHART NO.2 PRODUCT % CONTRIUTION TO COMPANY TURNOVER
43.20%
15.63%
38.60%
2.57%
% of Turnover
Pipes & Tubes
CR St rips
Lighting Products
Others

29
CHAPTER 3
OBJECTIVE AND SCOPE

30
3.1 OBJECTIVE AND SCOPE
3.1.1 OBJECTIVES OF STUDY
The main objective of present work is to make a study on the overall financial performance of
organization. More specifically it focuses:
 To assess the short term and long term solvency.
 To assess the liquidity and profitability position and trends.
 To know the efficiency of financial operations.
 To analyze the financial changes over of period of 4 years.
3.1.2 SCOPE OF THE STUDY
The study report being made here brings out the financial structure & the position of the
SURYA ROSHNI LTD. during the different years. The financial study helps us to analysis
the financial background & the utilization of the income earned.
3.1.3 LIMITATIONS OF STUDY
Due to constraints of time and resources, the study is likely to suffer from following
limitations. Some of these are mentioned here under so that findings of study may be
understood in a proper perspective:
 The study is based on secondary data and limitations of using the secondary data may affect
the result.
 The secondary data was taken from annual report of Surya. It may be possible that the data
shown in annual report may be window dressed which may not present the actual position of
company.
 Also study is restricted for a period of 4 years which may not reflect the true and current
scenario of firm.

31
CHAPTER 4
RESEARCH
METHODOLOGY

32
4.1 RESEARCH METHODOLOGY
Research methodology is a scientific and systematic way to solve the research problem. It is
conceptual structure within which research is conducted. In preparing of this project, the
information collected from the following sources:
4.1.1DATA COLLECTION
PRIMARY DATA
The primary data has been collected by personal interaction with Finance Manager Mr. Atul
Gupta and other staff members.
SECONDARY DATA
The major sources for secondary data are as follows:
 Annual financial Statements of the Surya.
 News, announcements and bulletins already available on company online portal
 Newspaper publications in Economics Times.
4.2 SAMPLING DESIGN
 Sampling Unit: Financial statements from annual report
 Sampling Size: last five years financial statements
4.3 TOOLS USED
 Ratio analysis
 Comparative statement analysis
 Common size statement
 Cash flow statement

33
CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

34
5.1DATA ANALYSIS AND INTERPRETATION
5.1.1COMMON SIZE STATEMENTS ANALYSIS
TABLE NO.4 COMMON SIZE INCOME STATEMENT FOR YEAR MAR 13 TO
MAR 16
Particulars Mar16
Rs.(Cr.)
% Mar15
Rs.(Cr.)
% Mar 14
Rs.(Cr.)
% Mar 13
Rs.(Cr.)
%
Gross sales 3124.57 109.36 3319.36 109.51 3276.02 110.71
Less: interdivisional
transfer
53.73 1.88 69.20 2.28 92.21 3.12
Less: sales return 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Less: excise 232.74 7.58 213.74 7.48 219.19 7.23 215.78 7.29
Net sales 3068.87 100 2857.10 100 3030.97 100 2959.03 100
Expenditure
Inc./Dec in stock (21.56) 4.49 0.15 -62.45 -2.06 31.01 1.04
Raw material
consumed
2194.84 2016.36 70.57 2287.07 75.45 2185.86 73.87
Power & fuel 65.38 68.86 2.41 66.35 2.19 58.23 1.96
Employee cost 187.78 156.37 5.47 151.06 4.98 134.69 4.55
Other manufacturing
exp
61.65 102.84 3.599 98.80 3.26 83.59 2.82
General &
administration exp
28.06 25.07 0.877 20.30 0.67 18.48 0.62
Selling & distribution
exp
295.00 243.43 8.52 218.39 7.21 193.58 6.54
Miscellaneous exp 17.45 16.59 0.58 17.82 0.59 16.96 0.57
Total expenditure 2828.60 2634.01 92.19 2797.32 92.29 2722.39 92.00
PBIDT 240.27 223.09 7.8 233.65 7.81 236.63 7.99
Other income 1.84 3.73 0.13 3.58 0.12 1.63 0.05
Operating profit 242.11 226.82 7.94 237.24 7.83 238.26 8.05
Interest 96.43 109.00 3.81 114.47 3.78 109.67 3.70
PBDT 145.68 117.82 4.12 122.77 4.05 128.59 4.34
Depreciation 60.67 56.04 1.96 55.64 1.84 56.51 0.22

35
PBT & exceptional
item
85.01 61.78 2.16 67.13 2.22 72.08 2.43
Exceptional item 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PBT 85.01 61.78 2.16 67.13 2.22 72.08 2.43
Tax provision 22.96 7.69 0.27 13.77 0.45 2.83 0.09
PAT 62.05 54.09 1.89 53.36 1.76 69.25 2.34
Extraordinary items 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Profits balance 377.40 334.56 11.7 292.35 9.64 251.52 8.50
Appropriations 439.45 388.67 345.71 320.76
Equity dividends (%) 10.00 10.00 10.00 40.00
EPS 14.16 12.34 12.17 15.80
Book value 144.11 135.63 124.63
INTERPRETATION
 Increase in total expenditure from 91.82% to 92.19% resulting into fall in profits from
8.18(Mar 11) to 7.8(Mar 15)
 As a base to net sales, other income rises by 0.11% in the year march15 as compare to
March11, along with rising interest expanses to approx. by 1.00%
 Rise in interest income, result into tall in RBT by 1.00%
 Tax provision has been rising as contrast to fall in profit, due to increase in non-operating
income.
 There is great disparity between equity dividend as compare declares a dividend of 15%
(march11), whereas company declares dividend of 0% (Mar 11), and 40% (Mar 13) which
becomes stable at 10% in Mar 14 and Mar 15.
 TABLE NO.5 COMMON SIZE BALANCE SHEETFOR YEAR MAR13 TO MAR16
Particulars
31-03-2016
Rs.(Cr.)
31-03-2015
Rs.(Cr.)
31-03-2014
Rs.(Cr.)
31-03-2013
Rs.(Cr.)
EQUITY &
LIABILITY
Shareholder's
Funds

36
Share capital 43.83 2.04 43.83 2.11 43.83 2.11 43.83 2.42
Reserves and
Surplus 823.96 38.47 767.18 37.09 730.07 35.26 688.43 37.92
Non-Current
Liabilities
Long Term
Borrowings 332.77 15.54 364.27 17.6 400.97 19.36 368.31 20.29
Deferred Tax
Liabilities (Net) 52.35 2.4 51.30 2.4 48.34 2.33 42.44 2.34
Other Long
Term Liabilities 7.81 0.36 7.02 0.34 5.80 0.28 5.27 0.29
Long Term
Provisions 23.39 1.09 19.20 0.92 17.10 0.84 17.51 0.97
Current
Liabilities
Short Term
Borrowings 513.18 23.97 515.52 24.9 550.14 26.57 401.11 22.1
Trade Payables 213.22 9.95 172.12 8.32 115.83 5.6 74.52 4.11
Other Current
Liabilities 121.39 5.67 120.68 5.8 137.73 6.65 133.04 7.33
Short-term
Provisions 9.52 .44 7.19 0.35 20.87 1.0 40.84 2.25
Total 2141.42 100 2068.32 100.00 2070.72 100.00 1815.30 100.00
ASSETS
Non-Current
Assets
Fixed Assets

37
INTERPRETATION
 Reserve and Surplus has maximum contribution in total liabilities(Approx. 37%) followed by
Short Term Borrowings which varies from 20% to 24%
 Also contribution of long term borrowings in total liabilities has been decreasing from
21.48% to 17.6% along with fall rise in trade payable contribution from 2.92% to 8.28%.
 Tangible assets(Approx. 45%) has maximum proportion in total assets followed by trade
receivable which varies from 17% to 25%.
Tangible assets
935.41 43.68 936.47 45.26 911.86 44.0 853.23 47.0
Capital work-in-
progress
18.37 0.85 26.37 1.26 53.70 2.36 26.00 1.43
Non-Current
Investments
50.00 2.3 50.00 2.41 50.00 2.41 50.06 2.76
Other Non
Current Assets 7.87 0.36 7.28 0.35 - - - -
Current Assets
Inventories 469.87 21.94 389.52 18.78 433.12 20.92 380.31 20.95
Trade
receivables 518.07 24.19 524.22 25.34 496.57 24.99 410.34 22.61
Cash and cash
Equivalents 27.26 1.27 26.35 1.27 24.68 1.19 18.65 1.03
Short-term loans
and
advances 114.01 5.32 117.68 5.68 94.02 4.55 70.28 3.87
Other current
assets 0.56 .026 8.24 .39 6.73 0.33 6.43 0.35
Total 2141.42 100 2068.32 100.00 2070.72 100.0 18,15.30 100.00

38
 Total proportion of inventories in total assets has been decreasing from 22.76% to 18.74% as
compare to the year Mar 11
 Also cash proportion is decreasing in total assets from 1.6% to 1.26%
 Short term loans and other current assets both has declining from 5.66(Mar2010) to 3.62
(Mar 2015) and 0.39 (Mar 2010) to 0.35 (Mar 2015) respectively.

39
5.1.2RATIO ANALYSIS
1. LIQUIDITY RATIO
These ratios are measured to assess the short term financial position of the concern. They
indicate the firm ability to meet its current obligations out of current resources.
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES
TABLE NO.6 VALUES FOR CURRENT RATIO
CHART NO.3 CURRENT RATIO OF SURYA
INTERPRETATION: Ideal current ratio is determines as 2:1.In the present analysis the
current ratio of the Surya is satisfactory but fall in ratio from 1.36(2012-13) to 1.31(2015-16)
indicates lack of liquidity and shortage of working capital.
LIQUID RATIO = LIQUID ASSETS
CURRENT LIABILITIES
TABLE NO.7 VALUES FOR LIQUID RATIO
1.24
1.26
1.28
1.3
1.32
1.34
1.36
1.38
2012-13 2013-14 2014-15 2015-2016
CURRENT RATIO
current RATIO
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 1.36 1.28 1.29 1.31
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 0.70 0.75 0.82 0.77

40
CHART NO.4 LIQUID RATIO OF SURYA
INTERPRETATION: Usually a high Quick ratio is an indication that the company is liquid
and has the ability to meet its current or liquid liabilities in time on the other hand a low
Quick Ratio represents that the company‟s liquidity position is not good. The above table
showing the quick ratios of Surya can be considered satisfactory.
2. LEVERAGE RATIO
These ratios are calculated to assess the ability to firm to meet its long term liabilities as and
when they become due. It also discloses the firm‟s ability to meet the interest cost regularly
and long term indebtedness at maturity.
DEBT TO EQUITY RATIO = LONG TERM LOANS
SHARE HOLDER’S FUNDS
TABLE NO.8 VALUES FOR DEBT TO EQUITY
CHART NO 5 DEBT TO EQUITY RATIO
0.7
0.75
0.82
0.77
2012-13 2013-14 2014-15 2015-2016
LIQUID RATIO
LIQUID RATIO
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 0.52 0.51 0.45 0.48

41
INTERPRETATION: The Debt-Equity Ratio accepted standard is 0.5. This ratio reflects
the relative contribution of creditors and owners of business in its financing. From the above
it is clear that the equity is more than that of external debts representing long term financial
position of company is sound.
DEBT TO TOTAL FUND RATIO = LONG TERM LOANS
SHAREHOLDER FUND+ LONG TERM LOANS
TABLE NO.9 VALUES OF DEBT TO TOTAL FUN RATIO
CHART NO.6DEBT TO TOTAL FUN RATIO
0.4
0.42
0.44
0.46
0.48
0.5
0.52
0.54
2012-13 2013-14 2014-15 2015-2016
DEBT TO EQUITY RATIO
DEBT TO EQUITY RATIO
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 0.34 0.34 0.31 0.28

42
INTERPRETATION: Long term loan of company is less than 0.67 indicates that long term
solvency position as firm has not to depend upon outside loans for its existence. “The lower
the ratio, the better it is for the company”.
PROPRIETARY RATIO = SHAREHOLDERS FUNDS
FIXED ASSETS+CURRENT ASSETS
TABLE NO.10 VALUES OF DEBT TO PROPRIETARY RATIO
CHART NO.7 PROPRIETARY RATIO
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2012-13 2013-14 2014-15 2015-2016
DEBT TO TOTAL FUND RATIO
DEBT TO TOTAL FUND
RATIO
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.7
2010-11 2011-12 2012-13 2013-14 2014-15
PROPRIETARY RATIO
RATIO
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 0.67 0.69 0.66 0.42

43
INTERPRETATION: Higher proprietary ratio is indicator of sound financial position and
as this ratio is rising from 0.64(2010-11) to 0.66(2014-15) in a consistent manner provides
safety to the long term lenders of firm.
3. PROFITABILITY RATIO
This ratio indicates that the financial position of the company is sound. The main objective of
every business is to earn profits. A business must be able to earn adequate profits in relation
you the risk and capital invested in it. The efficiency and the success of the business can be
measured by the profitability ratios.
GROSS PROFIT RATIO = GROSS PROFIT X 100
NET SALES
TABLE NO.11 VALUES OF GROSS PROFIT RATIO
CHART NO.8GROSS PROFIT RATIO
INTERPRETATION: It represent margin of profit on sales. And this margin is constantly
rising from 20% to 31% indicates that there is rise in sale of more profitable varieties of
goods or price of raw material is declining as compare to past years.
NET PROFIT RATIO = NET PROFIT X 100
NET SALES
TABLE NO.12 NET PROFIT RATIO
0
5
10
15
20
25
30
35
2012-13 2013-14 2014-15 2015-2016
GROSS PROFIT ON NET SALES(%)
GROSS PROFIT ON NET SALES(%)
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 20.56 25.32 27.87 32.07

44
CHART NO.9 NET PROFIT RATIO
INTERPRETATION: It establishes a relationship between net profits after tax and net
sales, and indicates the efficiency of the management in manufacturing, selling,
administrative and other activities of the company.
Table No.12 depicts the net profit Ratio of Surya has decreased from 1.97(2012-13) to
1.89(2014-15) and rises to 1.97(2015-16) overall improvements in efficiency and profitability
RET. ON CAPITAL EMPOLYED = PROFIT BEFORE INT, TAX DIVIDEND x 100
CAPITAL EMPLOYED
TABLE NO.13 VALUES FOR ROCE
CHART NO.10 ROCE
1.65
1.7
1.75
1.8
1.85
1.9
1.95
2
2012-13 2013-14 2014-15 2015-2016
NET PROFIT RATIO
NET PROFIT RATIO
0
2
4
6
8
10
12
14
2010-11 2011-12 2012-13 2013-14 2014-15
ROCE
ROCE
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 1.97 1.76 1.89 1.97
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 13.30 12.70 12.87

45
INTERPRETATION: this ratio represents overall performance of company. Rise in ROCE
from 10.63(2010-11) to 12.87 (2014-15) represents regular and higher earnings for the
shareholders.
EARNING PER SHARE = NET PROFIT FOR EQUITY SHARE HOLDERS
NO. OF EQUITY SHARES OUTSTANDING
TABLE NO.14 VALUES OF EPS
CHART NO.11 EPS
INTERPRETATION: It represents market price of the shares. There is substantial decrease
in price in the year 2013-14 as compared to other year but company managed the situation
and market of share prices shows an upward trend in the year 2014-15 and 2015-16.
4. ACTIVITY RATIOS
These ratios measure the efficiency and rapidity of the resources of the company, like stock,
debtors, fixed assets etc. These ratios are generally calculated on the basis of sales or cost of
sales.
DEBTORS TURNOVER RATIO (DTR) = CREDIT SALES
AVERAGE DEBTORS
AVERAGE COLLECTION PERIOD (ACP) = DAYS(365)
TABLE NO.15 VALUES OF DTR AND ACP
0
2
4
6
8
10
12
14
16
18
2012-13 2013-14 2014-15 2015-2016
EPS (IN Rs.)
EPS (IN Rs.)
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 15.80 12.17 12.34 14.40
YEARS 2012-13 2013-14 2014-15 2015-2016

46
CHART NO.12 DTR AND ACP
INTERPRETATION: Decline in DTR indicates efficient collection of amounts from
creditors and average collection period varies from 35 to 40 days that means credit sales
locked up maximum for 40 days.
FIXED ASSETS TURNOVER RATIO = NET SALES
NET FIXED ASSETS
TABLE NO 16 VALUES OF FATR
CHART NO.13 FIXED ASSETS TURNOVER RATIO
INTERPRETATION: This ratio indicates that due to decrease in the amount of net sales &
increase in the amount of net fixed assets as compared to 2013 – 2014 ratio declines in year
0
2
4
6
8
10
12
2010-11 2011-12 2012-13 2013-14 2014-15
DTR
DTR
2.75
2.95
3.31 3.33
3.05
0
0.5
1
1.5
2
2.5
3
3.5
2010-11 2010-12 2010-13 2010-14 2010-15
FIXED ASSETS TURNOVER RATIO(TIMES)
FIXED ASSETS
TURNOVER
RATIO(ITIMES)
DTR 9.52 8.93 9.42
ACP(In days) 38 41 39
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 3.31 3.33 3.05 3.28

47
2014-15from 3.333 to 3.05. Hence it states that fixed assets have not been fully utilized in the
current year.
WORKING CAPITAL TURNOVER RATIO = NET SALES
WORKING CAPITAL
TABLE NO 17 VALUES OF WC TURNOVER RATIO
CHART NO.14 WC TURNOVER RATIO
INTERPRETATION: Fall in working capital turnover in years from represents non-
efficient use of working capital and late turnover of current assets.
10.5
11
11.5
12
12.5
13
13.5
14
2012-13 2013-14 2014-15 2015-2016
WORKING CAPITAL TURNOVER RATIO
WORKING CAPITAL TURNOVER
RATIO
YEARS 2012-13 2013-14 2014-15 2015-2016
RATIO 13.48 13.16 11.92 11.51

48
5.1.3 COMPARATIVE STATEMENT ANALYSIS
TABLE NO.18 COMPARATIVE BALANCE SHEET OF MAR16 AND MAR15
Particulars
31-03-2016
Rs.(Cr.)
31-03-2015
Rs.(Cr.)
Absolute
change
Rs.(Cr.) Percentage change
EQUITY &
LIABILITY
Share capital 43.83 43.83 - -
Reserves and
Surplus 823.96 767.18 56.78 7.40
Non-Current
Liabilities
Long Term
Borrowings 332.77 364.27 -40.5 -11.11
Deferred Tax
Liabilities (Net) 52.35 51.30 1.05 2.04
Other Long Term
Liabilities 7.81 7.02 0.79 11.25
Long Term
Provisions 23.39 19.20 4.19 21.82
Current
Liabilities
Short Term
Borrowings 513.18 515.52 -2.34 -0.45
Trade Payables 213.22 172.12 41.1 23.87
Other Current
Liabilities 121.39 120.68 .71 .58
Short-term 9.52 7.19 2.33 32.40

49
Provisions
Total 2141.42 2068.32 73.1 3.53
ASSETS
Non-Current
Assets
Fixed Assets
Tangible assets 935.41 936.47 -1.06 -0.11
Capital work-in-
progress 18.37 26.37 -8 -30.33
Non-Current
Investments 50.00 50.00
- -
Other Non
Current Assets 7.87 7.28 .59 8.10
Current Assets
Inventories 469.87 389.52 80.35 20.62
Trade receivables 518.07 524.22 -6.15 -1.17
Cash and cash
Equivalents 27.26 26.35
0.99 3.45
Short-term loans
and
advances 114.01 107.16 6.85 6.39
Other current
assets 0.56 .95 -0.39 -41.05
Total 2141.42 2068.32 73.1 3.53
INTERPRETATION
 Reserves & surplus increased by 6.05% 30.76 % i.e., in Rupee 41.64 crores
 Long term borrowings and short term borrowings increased by 8.87 % and 37.15%
respectively.

50
 Long term Provisions and short term provisions decreased by 2.34% and 48.89%
respectively.
 Tangible assets increased by 6.87 % i.e., in Rupee 58.36 crores.
 Inventory and Trade receivable increased by 13.89 % and 21.01% as compare to the
preceding year.
Particulars
31-03-2015
Rs.(Cr.)
31-03-2014
Rs.(Cr.)
Absolute change
Rs.(Cr.)
Percentage
change
EQUITY &
LIABILITY
Shareholder's
Funds
Share capital 43.83 43.83 0.00 0.00
Reserves and
Surplus 767.18 730.07 +37.11 +5.08
Non-Current
Liabilities
Long Term
Borrowings 364.27 400.97 -36.7 -9.15
Deferred Tax
Liabilities (Net) 51.30 48.34 +2.96 +6.12
Other Long Term
Liabilities 7.02 5.80 +1.22 +21.03
Long Term
Provisions 19.20 17.10 +2.10 +12.28
Current Liabilities
Short Term
Borrowings 515.52 550.14 -34.62 -6.29
Trade Payables 172.12 115.83 +56.29 +48.59
Other Current
Liabilities 120.68 137.73 -17.05 -12.38

51
INTERPRETATION:
 Long term borrowings decreased by 9.15 % i.e., in Rupees 36.7 crores.
 Short term borrowings decreased by 6.29% i.e., in Rupees 34.62 crores.
Short-term
Provisions 0.71 20.87 -3.16 -15.14
Total 2068.32 2070.72 +8.16 +0.39
Non-Current Assets
Fixed Assets
Tangible assets 936.47 911.86 +24.61 +2.7
Capital work-in-
progress 26.37 53.70 -27.33 -50.89
Non-Current
Investments 50.00
50.00
- -
Other Non Current
Asset 7.28
-
- --
Current Assets
Inventories 389.52 433.12 -43.6 -10.07
Trade receivables 524.22 496.57 +27.65 +5.57
Cash and cash
Equivalents 26.35 24.68 +1.67 +6.78
Short-term loans and
advances 107.16 94.02 +23.66 +25.16
Other current assets 0.95 6.73 +1.51 +22.44
Total 2068.32 2070.72 +8.16 +0.39

52
 Long term Provisions increased by 12.28 % whereas short term provisions decreased by
15.14%.
 Inventory decreased by 10.07 % i.e., in Rupee 43.6 crores.
 Trade receivable and cash increased by 5.57 % and 6.78%.
Particulars
31-03-2014
Rs.(Cr.)
31-03-2013
Rs.(Cr.)
Absolute change
Rs.(Cr.)
Percentage
change
EQUITY &
LIABILITY
Share capital 43.83 43.83 - -
Reserves and
Surplus 730.07 688.43 +41.64 +6.05
Non-Current
Liabilities
Long Term
Borrowings 400.97 368.31 +32.66 +8.87
Deferred Tax
Liabilities (Net) 48.34 42.44
+5.90
+13.908
Other Long
Term Liabilities 5.80 5.27 +0.53 +10.05
Long Term
Provisions 17.10 17.51 -0.41 -2.34
Current
Liabilities
Short Term
Borrowings 550.14 401.11 +149.03 +37.15
Trade Payables 115.83 74.52 +41.31 +55.43
Other Current
Liabilities 137.73 133.04 +4.69 +3.53
Short-term
Provisions 20.87 40.84 -19.97 -48.89
Total 2070.72 1815.30 +255.42 +14.07

53
ASSETS
Non-Current
Assets
Fixed Assets
Tangible assets 911.86 853.23 +58.63 +6.87
Capital work-in-
progress 53.70 26.00 +27.7 +106.53
Non-Current
Investments 50.00 50.06 -0.06 -0.11
Current Assets
Inventories 433.12 380.31 +52.81 +13.89
Trade
receivables 496.57 410.34 +86.23 +21.01
Cash and cash
Equivalents 24.68 18.65 +6.03 +32.33
Short-term loans
and
advances 94.02 70.28
+23.74 +33.78
Other current
assets 6.73 6.43 +0.3 +4.66
Total 2070.72 18,15.30 +255.42 +14.07
INTERPRETATION
 Long term borrowings and short term borrowings increased by 8.87 % and 37.15%
respectively.
 Long term Provisions and short term provisions decreased by 2.34% and 48.89%
respectively.
 Tangible assets increased by 6.87 % i.e., in Rupee 58.36 crores.
 Inventory and Trade receivable increased by 13.89 % and 21.01% as compare to the
preceding year.

54
5.1.4 INTER FIRM ANALYSIS
TABLE NO.21 COMPANY’S MARKET CAPITALIZATION AND SALES
Company MARKET CAP Rs.(Cr.) SALES
APL Apollo 1193.03 613.34
Jindal Saw 1977.93 1908.20
Welspun corp. 2655.97 731.23
Surya Roshni 585.15 1295.28
Parkash Steelag 175.88 208.50
CHART NO 15. MARKET CAP AND SALES OF SURYA AND PEER
INTERPRETATION: Surya Roshni is far behind Apl Apollo, Jindaw Saw and Welspun
Corp in the terms of market capitalization. But it is doing far better than ParkashSteelag
,Welspun Corp and Apl Apollo in the terms of sales. Overall Jindaw saw has best position in
the market.
TABLE NO. 22 EPS, ROE & ROCE OF SURYA AND PEERS
COMPANY EPS ROE ROCE
APL Appollo 1.61 13.50 13.83
Jindal Saw 3.26 0.70 5.82
Surya Roshni 2.69 9.96 10.65
Welsun Corp -0.13 0.46 6.83
ParkashSteelbag 0.74 7.44 13.13
0
500
1000
1500
2000
2500
3000
APL Apollo Jindal Saw Welspun corp Surya Roshni Parkash
Steelag
Market cap(Cr.)
SALES

55
CHART NO.16 EPS ROE AND ROCE
INTERPRETATION: Overall performance of Surya Roshni is at par to the peer average in
terms of EPS, ROE AND ROCE. As surya Roshni has second best position in the context of
EPS ROE & ROCE followed by Jindal Saw, Welspun Corp, and ParkashSteelag. APL
Apollo is immediate competitive rival of company.
-2
0
2
4
6
8
10
12
14
16
APL Appollo Jindal Saw Surya Roshni Welsun Corp Parkash Steelbag
EPS
ROE
ROCE

56
5.1.5 CASH FLOW STATEMENT ANALYSIS
TABLE NO 23 CASH FLOW STATEMENT FOR MAR16 AND MAR15
PARTICULARS As at 31.03.16 As at 31.03.15
Rs.(Cr.) Rs.(Cr.) Rs.(Cr.) Rs(Cr.)
A. Cash flow from operating activity
Net profit before tax 85.01 61.77
Adjustment for:
Depreciation 60.66 56.04
Interest income -1.17 -0.94
Finance cost 96.43 109.00
Profit/loss on sale of fixed assets -0.48 -2.35
CSR Expenses 1.34 1.30
Other non-operating income -.0257 156.523 -0.0077 163.05
Operating profit before working
capital changes
241.53 224.82
Adjustment for:
Trade and other receivable -5.17 -36.50
Inventories -80.35 43.60
Trade payable 67.13 46.59 53.69
Cash generated from operations 223.38 278.51
Income tax paid -17.63 -10.52
CSR Expenses -1.34 -1.30 -11.82
Net cash from operating activity 204.39 266.69
B. Cash flow from investing activity
Sale/purchaseof investment - -
Interest received 1.17 0.94
Purchaseof fixed assets -53.37 -66.74
Capital work in progress - -
Sale/adjustment of fixed assets 2.26 4.07

57
INTRPRETATION:
 Operating profit before working capital changes has been increased from 224.82 crore to
241.53 crore in year 2015-2016 as compare to the 2014-2015.
 There is reduction in cash used in investing activity from 49.91 crore to 61.73 crore due to
rise in interest income and decrease in non - operating in sales of fixed assets.
 There is fall in cash outflow from financing activity from 203.29 crore to 153.57 crore.
TABLE NO 24 CASH FLOW STATEMENTFOR MAR14 AND MAR13
PARTICULARS As at 31.03.2014 As at 31.03.13
Rs.(Cr.) Rs.(Cr.) Rs.(Cr.) Rs.(Cr.)
A. Cash flow from
operating activity
Net profit before tax 67.12 72.08
Adjustment for:
Depreciation 55.64 56.51
Interest income -1.12 -0.70
Other non-operating income .025 0.008
Net cash used in investing activity -49.91 -61.73
C. Cash flow from financing activity
Increase/decrease long term
borrowing
-49.52 -54.40
Increase/decrease short term
borrowing
-2.34 -34.62
Issue/redemption of capital - -
Finance cost -96.43 -109.0
Dividend paid -5.27 -5.27
Net cash inflow/outflow from
financing activity
-153.57 -203.29
Net increase/decrease in cash and
cash equivalent
0.91 1.67
Opening cash and cash equivalent 26.35 24.68
Closing cash and cash equivalent 27.26 26.35

58
Finance cost 114.47 109.67
Profit/loss on sale of
fixed assets
-1.38 0.50
CSR Expenses
Other non-operating
income
-0.18 167.43 -0.95 165.88
Operating profit before
working capital changes
234.55 237.96
Adjustment for:
Trade and other
receivable
-104.08 -95.11
Inventories -52.81 -2.82
Trade payable 25.64 -131.25 50.23 47.70
Cash generated from
operations
103.3 190.26
Income tax paid -14.07 -15.36
CSR Expenses -15.36
Net cash from operating
activity
89.23 174.90
B. Cash flow from
investing activity
Sale/purchase of
investment
0.6 0.12
Interest received 1.12 0.70
Purchase of fixed assets -129.83 -91.34
Capital work in progress -27.72 -11.88
Sale/adjustment of fixed
assets
10.35 1.86
Other non-operating
income
0.17 0.95
Net cash used in
investing activity
-145.84 -76.68

59
C. Cash flow from
financing activity
Increase/decrease long
term borrowing
33.2 13.55
Increase/decrease short
term borrowing
149.03 11.05
Issue/redemption of
capital
- -
Finance cost -114.47 -109.6
Dividend paid -5.12 -15.28
Net cash inflow/outflow
from financing activity
62.64 -100.36
Net increase/decrease in
cash and cash
equivalent
6.03 -2.13
Opening cash and cash
equivalent
18.65 20.79
Closing cash and cash
equivalent
24.68 18.66
INTERPRETATION:
 Operating profit before working capital changes has been decreased from 237.96 to 234.55 in
year 2013-2014 as compare to the 2012-2013.
 There is rise in cash used in investing activity from 76.68 to 145.84 due to rise in interest
income and decrease in non - operating in sales of fixed assets.
 There is fall in cash outflow from financing activity from 100.36 to 62.64.

61
6.1 OUTCOMES
Findings of the project are summed up as follows:
o There is no change in the share capital of the firm. It remains the same for the year indicating
that company does not want to decentralize the authority among the new shareholders.
o Profit after tax of company is undergoing through constant changes. As it decreased
approximately by the 15 crore in Mar2012 as compare to Mar11 which rises again in the year
Rs.18 crore and becomes stable at approximately at Rs. 55 crore in the yearMar14 and Mar
15.
o Company has comparatively strong and stable liquidity position indicating that the company
can meet for its short term obligations at time, helps in establishment of good market image.
o Also company practice of Trade on equity is not benefiting the company as company EPS
and equity dividend of the company is falling simultaneously.
o Overall cash balance maintained by the company on and average basis lies between Rs.18
Crore to Rs. 23 crore.
o Rise in net worth of the company from years indicating satisfactory profitability of the
company.
o And company s facing direct competition from APL Apollo, and Welspun Corporation as
well.
It is suggested that company must adopt a for a stable dividend policy as fall in dividend rate
is directly impacting earning per share and market value of shares.

63
7.1 BIBILIOGRAPHY
 Annual report of SURYA 2015-2016.
 www.surya.com
 www.moneycontrol.com
 www.wikipedia.org/wiki/Financial_analysis
 Goel D.K., Goel Avichal Publishing Company, Management Accounting & Financial
Management
 Khan M.Y., Jain, Financial Management, Tata McGraw Hill Publishing House, 2 Edition
 Pandey I.M., Financial Management Vikas Publishing Pvt Ltd.,10 Edition/
 Chandra, Parsanna,Investment Analysis And Portfolio Management ,Tata McGraw Hill

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