APPLICATION OF RATIO ANALYSIS
FOR CELLO PLASTIC PRODUCTS LTD
(Submitted towards partial fulfillment of the requirements fo...
DECLARATION
I hereby declare that the project entitled „RATIO ANALYSIS‟ being
submitted by me at COER-SM, Roorkee towards ...
ACKNOWLEDGEMENT
I feel myself privileged at having an opportunity to thank the people who helped me at all stages
of my re...
EXECUTIVE SUMMARY
This project is specially designed to understand the subject matter of financial statement
analysis thro...
TABLE OF CONTENT
Page No.

CHAPTERS

1.

INTRODUCTION
1.1 About Cello Plastic Products Ltd

2

1.2 Capabilities of Cello

...
2.4 Limitation of Ratio

16

2.5 Classification of Ratio

16-33

3. ANALYTICAL STUDY OF RATIO

35-53

4. CONCLUSIONS & REC...
1.0 OBJECTIVES OF THE STUDY
The objectives of the study are:
1) To evaluate the performance of the company by using ratio ...
2.0 CELLO – AN INTRODUCTION
Cello plastic products ltd founded by Mr G.D. RATHOD ,chairman ,in May 10,1986,at a small
fact...
CELLO GROUP OF COMPANIES AT A GLANCE
Turnover: Plastic household & thermoware Rs.1405millions
 Plastic Furniture Rs 762 ...
CELLO PRODUCTS

A) CELLO WRITING INSTRUMENT

B) CELLO PLASTIC PRODUCTS

C) CELLO FURNITURES

D) CELLO CASSEROLES

10
CELLO HOUSEHOLD PRODUCTS
Storage Buckets with lids:- Owing to our expertise, we are distributing and supplying a wide
asso...
1994 - Cello Group ventures into manufacturing moulded furniture. Elegant, versatile and
durable, Cello furniture brings c...
3.0 RATIO ANALYSIS-AN INTRODUCTION
Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of one...
3.

Percentage :- In this type, the relation between two figures is expressed in hundredth.
For example, if a firm‟s capit...
7.

Ratios alone are not adequate for proper conclusions.

8.

Effect of personal ability and bias of the analyst.

CLASSI...
e.

Average Payment Period

f.

Fixed Assets Turnover Ratio

g.
D).

Working Capital Turnover Ratio

Profitability Ratio o...
Figure 1 classification of ratios

A) LIQUIDITY RATIO
It refers to the ability of the firm to meet its current liabilities...
a. Current Ratio:- This ratio explains the relationship between current assets and current
liabilities of a business.
Curr...
Significance :- An ideal quick ratio is said to be 1:1. If it is more, it is considered to be better.
This ratio is a bett...
b. Debt to Total Funds Ratio : This Ratio is a variation of the debt equity ratio and gives the
same indication as the deb...
Siqnificance:- The ratio indicates the extent to which proprietor‟s (Shareholder‟s) funds are
sunk into fixed assets. If t...
regularly. If profit just equals interest, it is an unsafe position for the lender as well as for the
company also , as no...
Debtor Turnover Ratio = Net Credit Sales / Average Debtors + Average B/R
While calculating this ratio, provision for bad a...
d. Creditors Turnover Ratio :- This ratio indicates the relationship between credit purchases
and average creditors during...
g.

Working Capital Turnover Ratio :- This ratio reveals how efficiently working capital
has been utilized in making sales...
Profitability ratio can be determined on the basis of either sales or investment into business.
(A)

Profitability Ratio B...
Formula:
Operating Ratio = Cost of Goods Sold + Operating Expenses/ Net Sales *100
Where, Cost of Goods Sold = Opening Sto...
Formula:
Return on Capital Employed = Profit before interest, tax and dividends/Capital Employed
*100
Where, Capital Emplo...
a. Return on total Shareholder’s Funds :For calculating this ratio „Net Profit after Interest and Tax‟ is divided by total...
earning capacity of the equity shareholders funds. If the ratio is high, it is better, because in such
a case equity share...
f. Earning and Dividend Yield :- This ratio is closely related to E.P.S. and D.P.S. While the
E.P.S. and D.P.S. are calcul...
4.O RESEARCH METHODOLOGY
R e s e a r c h m e t h o d o l o g y i s a w a y t o s ys t e m a t i c a l l y s o l v e t h e ...
5.0 DATA ANALYSIS
1)LIQUIDITY RATIO
A)CURRENT RATIO
CALCULATION OF CURRENT RATIO
(RS IN CRORE)
YEAR

2011

2012

Current a...
D) QUICK RATIO
CALCULATION OF QUICK RATIO
(RS IN CRORE)
YEAR

2010-11

2011-12

Quick Assests

66.68

84.64

Current Liabi...
B) LEVEARAGE OR CAPITAL STRUCTURE RATIO
A) DEBT EQUITY RATIO
CALCULATION OF DEBT EQUITY RATIO
(RS IN CRORE)
YEAR

2010-11
...
B) DEBT TO TOTAL FUNDS
CALCULATION OF DEBT TO TOTAL FUNDS RATIO
(RS IN CRORE)
YEAR

2010-11

2011-12

Long term loans

.89...
B) PROPRIETARY RATIO
CALCULATION OF PROPRIETARY RATIO
(RS IN CRORE)
YEAR

2010-11

2011-12

Shareholder‟s funds

118.41

1...
C) FIXED ASSET TO PROPRIETAR’S FUNDS
CALCULATION OF FIXED ASSET TO PROPRIETAR‟S FUNDS
(RS IN CRORE)
YEAR

2010-11

2011-12...
E) CAPITAL GEARING RATIO
CALCULATION OF CAPITAL GEARING RATIO
(RS IN CRORE)
YEAR

2010-11

2011-12

Equity share capital

...
3) ACTIVITY

RATIO

A) STOCK TURNOVER RATIO
CALCULATION OF STOCK TURNOVER RATIO
(RS IN CRORE)
YEAR

2010-11

2011-12

Cost...
STOCK TURNOVER RATIO
STOCK TURNOVER RATIO

6

5.02

5
3.588

4
3

2011

2

2012

1
0
2011

YEAR

2012

INTERPRETATION: Thi...
DEBTOR TURNOVER RATIO

DEBTOR TURNOVER RATIO
4
3.5
3
2.5
2
1.5
1
0.5
0

3.35
2.64
2011
2012

2011

2012

YEAR

INTERPRETAT...
TABLE10

CREDITOR TURNOVER RATIO

CREDITORS TURNOVER RATIO
6

5.18

5
3.97

4
3

2011

2

2012

1
0
2011

2012
YEAR

INTER...
GROSS PROFIT RATIO
GROSS PROFIT RATIO

25
24.43

24.5
24
23.5

23.05

23

2011
2012

22.5
22
2011

2012
YEAR

INERPRETATIO...
CALCULATION OF NET PROFIT
2011
39.76-17.35=22.41
2012

NET PROFIT RATIO

40.23-25.00=15.23

15

NET PROFIT RATIO
13.77
8.7...
OPERATING RATIO

86.22

91.27
TABLE 13

OPEARTING RATIO

OPERATING RATIO
92
91
90
89
88
87
86
85
84
83

91.27

2011

86.22...
5.0

CONCLUSION AND RECOMMENDATION

Finance is the life blood of every business. Without effective financial management a ...
REFRENCES
REFRENCE BOOKS
MANAGEMENT ACCOUNTING Dr.K.L GUPTA
ANNUAL REPORT OF CELLO PLASTIC PRODUCTS LTD
2010-11
2011-12
WE...
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  1. 1. APPLICATION OF RATIO ANALYSIS FOR CELLO PLASTIC PRODUCTS LTD (Submitted towards partial fulfillment of the requirements for the Degree of Master of Business Administration) Under the Supervision of Submitted by Ms. NEHA AGARWAL SONALI KUKREJA Assistant Proffesor M.B.A. II Year (MBA Department) COER School of Management Uttarakhand Technical University D. Dun (2013-14) 1
  2. 2. DECLARATION I hereby declare that the project entitled „RATIO ANALYSIS‟ being submitted by me at COER-SM, Roorkee towards the partial fulfillment of the requirement for the award of Degree of Master of Business Administration (MBA). I hereby also declare that this Project work is my original work. The matter embodied in this project report has not been submitted to any other Institution or University for the award of any degree, diploma, certificate etc. Name & Signature of Student Sonali Kukreja MBA 2ND YEAR Place: haridwar Date: 2
  3. 3. ACKNOWLEDGEMENT I feel myself privileged at having an opportunity to thank the people who helped me at all stages of my research work. It is which a deep sense of gratitude that I acknowledge valuable guidance and timely suggestion offered to me by my project guide Mrs Megha Gupta. I am indebted to all staff and operational people at CELLO PLASTIC PRODUCTS LTD for giving me full support and encouragement I am thankful to Ms. Neha Agarwal for helping me to make this project report . It is my sheer pleasure to acknowledge who have directed or indirectly guided and cooperated in one way or other SONALI KUKREJA MBA 2ND YEAR 3
  4. 4. EXECUTIVE SUMMARY This project is specially designed to understand the subject matter of financial statement analysis through various ratios in the company. This project gives us information and report about company‟s financial position. Through a thorough financial analysis, my aim is to understand the financial factors is influencing the company and its decision making. Later, I try and evaluate the various ratios to appreciate their impact on company‟s performance over the last two years. The financial statements of last two years are identified, studied and interpreted in light of company‟s performance. Critical decisions of distributing dividends, Issue of bonus Debentures and other current news are analyzed and their impact on the bottom line of the company is assessed. Finally, I study ratio analysis, fund flow analysis and cash flow analysis of the company to analyse the financial position of the company in last two years. 4
  5. 5. TABLE OF CONTENT Page No. CHAPTERS 1. INTRODUCTION 1.1 About Cello Plastic Products Ltd 2 1.2 Capabilities of Cello 3 1.3 Capacities of Cello 4 1.4 Cello Group of company at a glance 5 1.5 Quality Recognitions and Awards 6 1.6 Cello products 7 1.7 Cello Household products 8 1.8 Cello Writing Instruments 9-10 1.9 Objectives of the study 11 1.10 Limitations of the study 12 2. THEORTICAL BACKGROUNG OF RATIO 2.1 Financial Analysis 14 2.2 Ratio Analysis 14-15 2.3 Advantages of Ratio 15 5
  6. 6. 2.4 Limitation of Ratio 16 2.5 Classification of Ratio 16-33 3. ANALYTICAL STUDY OF RATIO 35-53 4. CONCLUSIONS & RECOMMENDATIONS 55-57 ANNXURE 58 BIPLOGRAPHY 59 6
  7. 7. 1.0 OBJECTIVES OF THE STUDY The objectives of the study are: 1) To evaluate the performance of the company by using ratio as a yardstick to measure the efficiency of the company 2) To understand the liquidity and profitability of the company during the study period 3) To make comparisons between the ratios during different periods(2 years data from 2011 to 2012) 7
  8. 8. 2.0 CELLO – AN INTRODUCTION Cello plastic products ltd founded by Mr G.D. RATHOD ,chairman ,in May 10,1986,at a small factory in Goregaon,Mumbai,with just 60 workers and 7 machines engaged in the manufacture of the finest range of Casserole,or Hotpots,as they were later position,that the Indian market have ever seen Mr Pradeep Rathod ,Managing Director and Mr PankajRathod,Deputy Managing Director, spearheaded the growth and diversification into new products and markets. First and largest Manufacturer of Branded household products in India ,having wide range of plastic moulded products.Annual sales turnover of more than USD 100 million and exports of USD 28 millions .2100 employees-more than 300 engineers and plastic technologist. CAPABILITIES OF CELLO  Investment of more than USD 50 million in ultra modern plastic processing machines from BATTENFIELD –Germany ,WIMPLAST-Italy and SUMMITOMO-Japan  Strong in house R&D base, having developed the unique break through insulation technology-THERMI-GUARD  Many product designs PATENTED in Europe  Having warehouse and sales offices in different locations in ,Nepal,Srilanka,U.A.E,Kenya and USA  Regularly exporting to more than 60 countries including USA ,UK,Italy,Germany CAPACITIES OF CELLO  Insulated Thermoware-More than 5million piece per year.  Household Products-More than 12 million piece per year  Moulded Furniture-More than 2 million piece per year  Writing Instrument-216million piece per year  Tooth Brushes-17million pieces per year 8 India
  9. 9. CELLO GROUP OF COMPANIES AT A GLANCE Turnover: Plastic household & thermoware Rs.1405millions  Plastic Furniture Rs 762 million  Writing Instrument Rs 1806 million  Tooth Brush Rs 50 millions A)Factory Area:-7,00,000s.q.ft at Daman B)Work Force:-Managerial posts 35nos  Factory Staff 3000nos.  Office Staff 300nos.  Sales staff 100nos. C)Distribution Strength:Distributors 200nos.  Class retail outlets 7000nos.  Class retail outlets 8000nos. QUALITY RECOGNITION AND AWARDS  Largest Exporter of Insulated Thermoware from India  Recognised as Export House by Government of India since 1996  Winner of prestigious Plexcouncil Award as highest Exporter since last 9
  10. 10. CELLO PRODUCTS A) CELLO WRITING INSTRUMENT B) CELLO PLASTIC PRODUCTS C) CELLO FURNITURES D) CELLO CASSEROLES 10
  11. 11. CELLO HOUSEHOLD PRODUCTS Storage Buckets with lids:- Owing to our expertise, we are distributing and supplying a wide assortment of houseware range. Design and fabricated using the fine quality raw material and sophisticated technology at vendor‟s unit, these have gained huge demand due to their attractive look and clean finish. Our offered product range includes plastic utility products, home plastic products, household plastic items, microwave safe products, food savers and cleaning brushes. Apart from this, we provide these products in various sizes, shapes and colors at market leading prices Cello AirTight Containers:- We are engaged in distributing and supplying superior quality cello air tight containers. In order to manufacture these containers, our vendors use optimum quality plastic material and modern machine as per the prescribed set of norms. In addition, our offered containers are microwave safe and freezer safe and extensively used in domestic and commercial sectors for food storage. Due to their air tight facility, these are used to store rice, powdered milk, pasta, beans and other dry food items. Available in diverse sizes, shapes and molded designs, clients can avail these at the most affordable prices. CELLO WRITING INSTRUMENTS Cello ceaselessly endeavours to bring in the newest and the best of technology to set new benchmarks in quality and innovates constantly to blaze new trails in the market place 1982 - With a tiny factory for making plastic household goods, Mr. G. D. Rathod makes a small beginning in manufacturing. Behind this step the founder has a vision of uncompromising quality and total consumer satisfaction. Set up on this deep foundation, Cello begins its journey to become a leader. 1986 - A new factory for Cello Thermoware is set up in Goregaon, Mumbai capable of manufacturing the finest range of hot pots and casseroles, insulated water bottles, attractive range of insulated jugs and flasks. Soon demand rises for the new and quality products, to keep up with which a new factory is set up in Daman. Cello Household Products began to be exported to a number of countries 11
  12. 12. 1994 - Cello Group ventures into manufacturing moulded furniture. Elegant, versatile and durable, Cello furniture brings convenience and style to consumers at surprising economical price , made from special grade plastic and state-of-the-art moulds from Italy. Cello furniture becomes a household name in quality. 1995 - Cello Writing Instruments, a part of Cello Group entered the plastic moulded ball pen market. In 1995, Cello exploded on the scene with Cello Clear Pens with Swiss tips and German ink and changed forever the way pen ran on paper. The revolutionary new smear free, smooth flowing pen not just took the market by storm but marked a new era in writing instruments in India. Not too long after, the company unveiled two more models Prism and Crystal and with that what started as a mere 3-machine company, took wings. 12
  13. 13. 3.0 RATIO ANALYSIS-AN INTRODUCTION Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of one number to another. It may be defined as the indicated quotient of two mathematical expression.It expresses a magnitude by which one quantity is a multiple or a part of another similar quantity . When the concept of ratio is explained with reference to the items shown in financial statements, then it is called „Accounting Ratios‟ According to Accountant‟s Handbook by Wixon, Kell and Bedford, “a ratio is an expression of the quantitative relationship between two numbers”. Ratio Analysis:- Ratio analysis is the process of determining and presenting the relationship of items and group of items in the statements. According to Batty J. Management Accounting “Ratio can assist management in its basic functions of forecasting, planning coordination, control and communication”. It is helpful to know about the liquidity, solvency, capital structure and profitability of an organization. It is helpful tool to aid in applying judgement, otherwise complex situations. Ratio may be expressed in the following three ways : 1. Pure Ratio or Simple Ratio :- It is expressed by the simple division of one number by another. For example , if the current assets of a business are Rs. 200000 and its current liabilities are Rs. 100000, the ratio of „Current assets to current liabilities‟ will be 2:1. 2. ‘Rate’ or ‘So Many Times :- In this type , it is calculated how many times a figure is, in comparison to another figure. For example , if a firm‟s credit sales during the year are Rs. 200000 and its debtors at the end of the year are Rs. 40000 , its Debtors Turnover Ratio is 200000/40000 = 5 times. It shows that the credit sales are 5 times in comparison to debtors. 13
  14. 14. 3. Percentage :- In this type, the relation between two figures is expressed in hundredth. For example, if a firm‟s capital is Rs.1000000 and its profit is Rs.200000 the ratio of profit capital, in term of percentage, is 200000/1000000*100 = 20% ADVANTAGE OF RATIO ANALYSIS 1. Helpful in analysis of Financial Statements. 2. Helpful in comparative Study. 3. Helpful in locating the weak spots of the business. 4. Helpful in Forecasting. 5. Estimate about the trend of the business. 6. Fixation of ideal Standards. 7. Effective Control. 8. Study of Financial Soundness. LIMITATIONS OF RATIO ANALYSIS 1. Comparison not possible if different firms adopt different accounting policies. 2. Ratio analysis becomes less effective due to price level changes. 3. Ratio may be misleading in the absence of absolute data. 4. Limited use of a single data. 5. Lack of proper standards. 6. False accounting data gives false ratio. 14
  15. 15. 7. Ratios alone are not adequate for proper conclusions. 8. Effect of personal ability and bias of the analyst. CLASSIFICATION OF RATIO Ratio may be classified into the four categories as follows: A) Liquidity Ratio a. Current Ratio b. Quick Ratio or Acid Test Ratio B) Leverage or Capital Structure Ratio a. Debt Equity Ratio b. Debt to Total Fund Ratio c. Proprietary Ratio d. Fixed Assets to Proprietor‟s Fund Ratio e. Capital Gearing Ratio f. Interest Coverage Ratio C) Activity Ratio or Turnover Ratio a. Stock Turnover Ratio b. Debtors or Receivables Turnover Ratio c. Average Collection Period d. Creditors or Payables Turnover Ratio 15
  16. 16. e. Average Payment Period f. Fixed Assets Turnover Ratio g. D). Working Capital Turnover Ratio Profitability Ratio or Income Ratio (A) Profitability Ratio based on Sales : a. Gross Profit Ratio b. Net Profit Ratio c. Operating Ratio (B) Profitability Ratio Based on Investment : I. II. Return on Capital Employed Return on Shareholder’s Funds : a. Return on Total Shareholder‟s Funds b. Return on Equity Shareholder‟s Funds c. Earning Per Share d. Dividend Per Share e. Dividend Payout Ratio f. Earning and Dividend Yield g. Price Earning Ratio 16
  17. 17. Figure 1 classification of ratios A) LIQUIDITY RATIO It refers to the ability of the firm to meet its current liabilities. The liquidity ratio, therefore, are also called „Short-term Solvency Ratio‟. These ratio are used to assess the short-term financial position of the concern. They indicate the firm‟s ability to meet its current obligation out of current resources. In the words of Saloman J. Flink, “Liquidity is the ability of the firms to meet its current obligations as they fall due”. Liquidity ratio include two ratio :a. Current Ratio b. Quick Ratio or Acid Test Ratio 17
  18. 18. a. Current Ratio:- This ratio explains the relationship between current assets and current liabilities of a business. Current Assets:-‘Current assets‟ includes those assets which can be converted into cash with in a year‟s time. Current Assets = Cash in Hand + Cash at Bank + B/R + Short Term Investment + Debtors(Debtors – Provision) + Stock(Stock of Finished Goods + Stock of Raw material) Current Liabilities :- „Current liabilities‟ include those liabilities which are repayable in a year‟s time. Current Liabilities = Bank Overdraft + B/P + Creditors + Provision for Taxation + Proposed Dividend + Unclaimed Dividends + Outstanding Expenses + Loans payable in a year Significance :- According to accounting principles, a current ratio of 2:1 is supposed to be an ideal ratio.It means that current assets of a business should, at least , be twice of its current liabilities. The higher ratio indicates the better liquidity position, the firm will be able to pay its current liabilities more easily. If the ratio is less than 2:1, it indicate lack of liquidity and shortage of working capital. The biggest drawback of the current ratio is that it is susceptible to “window dressing”. This ratio can be improved by an equal decrease in both current assets and current liabilities. b. Quick Ratio:- Quick ratio indicates whether the firm is in a position to pay its current liabilities with in a month or immediately. „Liquid Assets‟ means those assets ,which will yield cash very shortly. LIQUID ASSETS=CURRENT ASSETS-STOCK-PREPAID ASSETS 18
  19. 19. Significance :- An ideal quick ratio is said to be 1:1. If it is more, it is considered to be better. This ratio is a better test of short-term financial position of the company. B) LEVERAGE OR CAPITAL STRUCTURE RATIO This ratio disclose the firm‟s ability to meet the interest costs regularly and Long term indebtedness at maturity. These ratio include the following ratios : a. Debt Equity Ratio:- This ratio can be expressed in two ways: According to this approach, this ratio expresses the relationship between long term debts and shareholder‟s fund. Formula: Debt Equity Ratio=Long term Loans/Shareholder’s Funds or Net Worth Long Term Loans:- These refer to long term liabilities which mature after one year. These include Debentures, Mortgage Loan, Bank Loan, Loan from Financial institutions and Public Deposits etc. Shareholder’s Funds :- These include Equity Share Capital, Preference Share Capital, Share Premium, General Reserve, Capital Reserve, Other Reserve and Cr edit Balance of Profit & Loss Account. Significance :- This Ratio is calculated to assess the ability of the firm to meet its long term liabilities. Generally, debt equity ratio of is considered safe.If the debt equity ratio is more than that, it shows a rather risky financial position from the long-term point of view, as it indicates that more and more funds invested in the business are provided by long-term lenders.The lower this ratio, the better it is for long-term lenders because they are more secure in that case. Lower than 2:1 debt equity ratio provides sufficient protection to long-term lenders. 19
  20. 20. b. Debt to Total Funds Ratio : This Ratio is a variation of the debt equity ratio and gives the same indication as the debt equity ratio. In the ratio, debt is expressed in relation to total funds, i.e., both equity and debt. Formula: Debt to Total Funds Ratio = Long-term Loans/Shareholder’s funds + Long-term Loan Significance :- Generally, debt to total funds ratio of 0.67:1 (or 67%) is considered satisfactory. In other words, the proportion of long term loans should not be more than 67% of total funds .A higher ratio indicates a burden of payment of large amount of interest charges periodically and the repayment of large amount of loans at maturity. Payment of interest may become difficult if profit is reduced. Hence, good concerns keep the debt to total funds ratio below 67%. The lower ratio is better from the long-term solvency point of view. c. Proprietary Ratio:- This ratio indicates the proportion of total funds provide by Formula: Proprietary Ratio = Shareholder’s Funds/Shareholder’s Funds + Long term loans Significance :- This ratio should be 33% or more than that. In other words, the proportion of shareholders funds to total funds should be 33% or more. A higher proprietary ratio is generally treated an indicator of sound financial position from long-term point of view, because it means that the firm is less dependent on external sources of finance.If the ratio is low it indicates that long-term loans are less secured and they face the risk of losing their money. d. Fixed Assets to Proprietor’s Fund Ratio :- This ratio is also know as fixed assets to net worth ratio. Formula: Fixed Asset to Proprietor’s Fund Ratio = Fixed Assets/Proprietor’s Funds (i.e., Net Worth) 20
  21. 21. Siqnificance:- The ratio indicates the extent to which proprietor‟s (Shareholder‟s) funds are sunk into fixed assets. If this ratio is less than 100%, it would mean that proprietor‟s fund are more than fixed assets and a part of working capital is provided by the proprietors. This will indicate the long term financial soundness of business. e. Capital Gearing Ratio:- This ratio establishes a relationship between equity capital (including all reserves and undistributed profits) and fixed cost bearing capital. Formula: Capital Gearing Ratio = Equity Share Capital+Reserves+P&L Balance/ Fixed cost Bearing Capital Whereas, Fixed Cost Bearing Capital = Preference Share Capital + Debentures + Long Term Loan Significance:- If the amount of fixed cost bearing capital is more than the equity share capital including reserves an undistributed profits), it will be called high capital gearing and if it is less, it will be called low capital gearing.The high gearing will be beneficial to equity shareholders when the rate of interest/dividend payable on fixed cost bearing capital is lower than the rate of return on investment in business. Thus, the main objective of using fixed cost bearing capital is to maximize the profits available to equity shareholders. f. Interest Coverage Ratio:- This ratio is also termed as „Debt Service Ratio‟. This ratio is calculated as follows: Formula Interest Coverage Ratio = Net Profit before charging interest and tax / Fixed Interest Charge Significance :- This ratio indicates how many times the interest charges are covered by the profits available to pay interest charges.This ratio measures the margin of safety for long-term lenders. This higher the ratio, more secure the lenders is in respect of payment of interest 21
  22. 22. regularly. If profit just equals interest, it is an unsafe position for the lender as well as for the company also , as nothing will be left for shareholders. An interest coverage ratio of 6 or 7 times is considered appropriate. C) ACTIVITY RATIO OR TURNOVER RATIO These ratio are calculated on the bases of „cost of sales‟ or sales, therefore, these ratio are also called as „Turnover Ratio‟. Turnover indicates the speed or number of times the capital employed has been rotated in the process of doing business. Higher turnover ratio indicates the better use of capital or resources and in turn lead to higher profitability. It includes the following : a. Stock Turnover Ratio:- This ratio indicates the relationship between the cost of goods during the year and average stock kept during that year. Formula: Stock Turnover Ratio = Cost of Goods Sold / Average Stock Here, Cost of goods sold = Net Sales – Gross Profit Average Stock = Opening Stock + Closing Stock/2 Significance: This ratio indicates whether stock has been used or not. It shows the speed with which the stock is rotated into sales or the number of times the stock is turned into sales during the year.The higher the ratio, the better it is, since it indicates that stock is selling quickly.In a business where stock turnover ratio is high, goods can be sold at a low margin of profit and even than the profitability may be quit high. b. Debtors Turnover Ratio :- This ratio indicates the relationship between credit sales and average debtors during the year : Formula: 22
  23. 23. Debtor Turnover Ratio = Net Credit Sales / Average Debtors + Average B/R While calculating this ratio, provision for bad and doubtful debts is not deducted from the debtors, so that it may not give a false impression that debtors are collected quickly. Significance :- This ratio indicates the speed with which the amount is collected from debtors. The higher the ratio, the better it is, since it indicates that amount from debtors is being collected more quickly. The more quickly the debtors pay, the less the risk from bad- debts, and so the lower the expenses of collection and increase in the liquidity of the firm. By comparing the debtors turnover ratio of the current year with the previous year, it may be assessed whether the sales policy of the management is efficient or not. c. Average Collection Period :- This ratio indicates the time with in which the amount is collected from debtors and bills receivables. Formula: Average Collection Period = Debtors + Bills Receivable / Credit Sales per day Here, Credit Sales per day = Net Credit Sales of the year Second Formula :Average Collection Period = Average Debtors *365 / Net Credit Sales Average collection period can also be calculated on the bases of „Debtors Turnover Ratio‟. The formula will be: Average Collection Period = 12 months or 365 days / Debtors Turnover Ratio Significance :- This ratio shows the time in which the customers are paying for credit sales. A higher debt collection period is thus, an indicates of the inefficiency and negligency on the part of management. On the other hand, if there is decrease in debt collection period, it indicates prompt payment by debtors which reduces the chance of bad debts. 23
  24. 24. d. Creditors Turnover Ratio :- This ratio indicates the relationship between credit purchases and average creditors during the year . Formula:Creditors Turnover Ratio = Net credit Purchases / Average Creditors + Average B/P Significance :- This ratio indicates the speed with which the amount is being paid to creditors. The higher the ratio, the better it is, since it will indicate that the creditors are being paid more quickly which increases the credit worthiness of the firm. e. Average Payment Period :- This ratio indicates the period which is normally taken by the firm to make payment to its creditors. Formula:Average Payment Period = 12 months or 365 days / Creditors Turnover Ratio Significance :- The lower the ratio, the better it is, because a shorter payment period implies that the creditors are being paid rapidly. f. Fixed Assets Turnover Ratio :- This ratio reveals how efficiently the fixed assets are being utilized. Formula:Fixed Assets Turnover Ratio = Cost of Goods Sold/ Net Fixed Assets Here, Net Fixed Assets = Fixed Assets – Depreciation Significance:- This ratio is particular importance in manufacturing concerns where the investment in fixed asset is quite high. Compared with the previous year, if there is increase in this ratio, it will indicate that there is better utilization of fixed assets. If there is a fall in this ratio, it will show that fixed assets have not been used as efficiently, as they had been used in the previous year. 24
  25. 25. g. Working Capital Turnover Ratio :- This ratio reveals how efficiently working capital has been utilized in making sales. Formula :- Working Capital Turnover Ratio = Cost of Goods Sold / Working Capital Here, Cost of Goods Sold = Opening Stock + Purchases + Carriage + Wages + Other Direct Expenses - Closing Stock Working Capital = Current Assets – Current Liabilities Significance :- This ratio is of particular importance in non-manufacturing concerns where current assets play a major role in generating sales. It shows the number of times working capital has been rotated in producing sales.A high working capital turnover ratio shows efficient use of working capital and quick turnover of current assets like stock and debtors.A low working capital turnover ratio indicates under-utilisation of working capital. (D) Profitability Ratios or Income Ratios:- The main object of every business concern is to earn profits. A business must be able to earn adequate profits in relation to the risk and capital invested in it. The efficiency and the success of a business can be measured with the help of profitability ratio. Profitability ratios are calculated to provide answers to the following questions: i. ii. Is the firm earning adequate profits? What is the rate of gross profit and net profit on sales? iii. What is the rate of return on capital employed in the firm? iv. What is the rate of return on proprietor‟s (shareholder‟s) funds? v. What is the earning per share? 25
  26. 26. Profitability ratio can be determined on the basis of either sales or investment into business. (A) Profitability Ratio Based on Sales : a. Gross Profit Ratio : This ratio shows the relationship between gross profit and sales. Formula : Gross Profit Ratio = Gross Profit / Net Sales *100 Here, Net Sales = Sales – Salesreturn. Significance:- This ratio measures the margin of profit available on sales. The higher the gross profit ratio, the better it is. No ideal standard is fixed for this ratio, but the gross profit ratio should be adequate enough not only to cover the operating expenses but also to provide for depreciation, interest on loans, dividends and creation of reserves. b. Operating Net Profit Ratio:- This ratio shows the relationship between net operating profit and sales. It may be calculated by two methods: Formula: Operating Net Profit = Operating Net Profit / Net Sales *100 Here, Operating Net Profit = Gross Profit – Operating Expenses such as Office and Administrative Expenses, Selling and Distribution Expenses, Discount, Bad Debts, Interest on short-term debts etc. Significance :- This ratio measures the rate of net profit earned on sales. It helps in determining the overall efficiency of the business operations. An increase in the ratio over the previous year shows improvement in the overall efficiency and profitability of the business. c. Operating Ratio:- This ratio measures the proportion of an enterprise cost of sales and operating expenses in comparison to its sales. 26
  27. 27. Formula: Operating Ratio = Cost of Goods Sold + Operating Expenses/ Net Sales *100 Where, Cost of Goods Sold = Opening Stock + Purchases + Carriage + Wages + Other Direct Expenses - Closing Stock Operating Expenses = Office and Administration Exp. + Selling and Distribution Exp. + Discount + Bad Debts + Interest on Short- term loans. „Operating Ratio‟ and „Operating Net Profit Ratio‟ are inter-related. Total of both these ratios will be 100 Significance:- Operating Ratio is a measurement of the efficiency and profitability of the business enterprise. The ratio indicates the extent of sales that is absorbed by the cost of goods sold and operating expenses. Lower the operating ratio is better, because it will leave higher margin of profit on sales. (B) Profitability Ratio Based on Investment in the Business:These ratio reflect the true capacity of the resources employed in the enterprise. Sometimes the profitability ratio based on sales are high whereas profitability ratio based on investment are low. Since the capital is employed to earn profit, these ratios are the real measure of the success of the business and managerial efficiency. These ratio may be calculated into two categories: I. Return on Capital Employed II. Return on Shareholder‟s funds I. Return on Capital Employed :- This ratio reflects the overall profitability of the business. It is calculated by comparing the profit earned and the capital employed to earn it. This ratio is usually in percentage and is also known as „Rate of Return‟ or „Yield on Capital‟. 27
  28. 28. Formula: Return on Capital Employed = Profit before interest, tax and dividends/Capital Employed *100 Where, Capital Employed = Equity Share Capital + Preference Share Capital + All Reserves + P&L Balance +Long-Term Loans- Fictitious Assets (Such as Preliminary Expenses OR etc.) – Non-Operating Assets like Investment made outside the business. Capital Employed = Fixed Assets + Working Capital Advantages of ‘Return on Capital Employed’: Since profit is the overall objective of a business enterprise, this ratio is a barometer of the overall performance of the enterprise. It measures how efficiently the capital employed in the business is being used.  Even the performance of two dissimilar firms may be compared with the help of this ratio.  The ratio can be used to judge the borrowing policy of the enterprise.  This ratio helps in taking decisions regarding capital investment in new projects. The new projects will be commenced only if the rate of return on capital employed in such projects is expected to be more than the rate of borrowing.  This ratio helps in affecting the necessary changes in the financial policies of the firm.  Lenders like bankers and financial institution will be determine whether the enterprise is viable for giving credit or extending loans or not.  With the help of this ratio, shareholders can also find out whether they will receive regular and higher dividend or not. II. Return on Shareholder’s Funds :Return on Capital Employed Shows the overall profitability of the funds supplied by long term lenders and shareholders taken together. Whereas, Return on shareholders funds measures only the profitability of the funds invested by shareholders. These are several measures to calculate the return on shareholder‟s funds: 28
  29. 29. a. Return on total Shareholder’s Funds :For calculating this ratio „Net Profit after Interest and Tax‟ is divided by total shareholder‟s funds. Formula: Return on Total Shareholder’s Funds = Net Profit after Interest and Tax / Total Shareholder’s Funds Where, Total Shareholder‟s Funds = Equity Share Capital + Preference Share Capital + All Reserves + P&L A/c Balance –Fictitious Assets Significance:- This ratio reveals how profitably the proprietor‟s funds have been utilized by the firm. A comparison of this ratio with that of similar firms will throw light on the relative profitability and strength of the firm. b. Return on Equity Shareholder’s Funds:Equity Shareholders of a company are more interested in knowing the earning capacity of their funds in the business. As such, this ratio measures the profitability of the funds belonging to the equity shareholder‟s. Formula: Return on Equity Shareholder’s Funds = Net Profit (after int., tax & preference dividend) / Equity Shareholder’s Funds *100 Where, Equity Shareholder‟s Funds = Equity Share Capital + All Reserves + P&L A/c Balance – Fictitious Assets Significance:- This ratio measures how efficiently the equity shareholder‟s funds are being used in the business. It is a true measure of the efficiency of the management since it shows what the 29
  30. 30. earning capacity of the equity shareholders funds. If the ratio is high, it is better, because in such a case equity shareholders may be given a higher dividend. c. Earning Per Share (E.P.S.) :- This ratio measure the profit available to the equity shareholders on a per share basis. All profit left after payment of tax and preference dividend are available to equity shareholders. Formula: Earning Per Share = Net Profit – Dividend on Preference Shares / No. of Equity Shares Significance:- This ratio helpful in the determining of the market price of the equity share of the company. The ratio is also helpful in estimating the capacity of the company to declare dividends on equity shares. d. Dividend Per Share (D.P.S.):- Profits remaining after payment of tax and preference dividend are available to equity shareholders.But of these are not distributed among them as dividend . Out of these profits is retained in the business and the remaining is distributed among equity shareholders as dividend. D.P.S. is the dividend distributed to equity shareholders divided by the number of equity shares. Formula: D.P.S. = Dividend paid to Equity Shareholder’s / No. of Equity Shares *100 e. Dividend Payout Ratio or D.P. :- It measures the relationship between the earning available to equity shareholders and the dividend distributed among them. Formula: D.P. = Dividend paid to Equity Shareholders/ Total Net Profit belonging to Equity Shareholders *100 D.P. = D.P.S. / E.P.S. *100 30
  31. 31. f. Earning and Dividend Yield :- This ratio is closely related to E.P.S. and D.P.S. While the E.P.S. and D.P.S. are calculated on the basis of the book value of shares, this ratio is calculated on the basis of the market value of share g. Price Earning (P.E.) Ratio:- Price earning ratio is the ratio between market price per equity share & earnings per share. The ratio is calculated to make an estimate of appreciation in the value of a share of a company & is widely used by investors to decide whether or not to buy shares in a particular company. Significance :- This ratio shows how much is to be invested in the market in this company‟s shares to get each rupee of earning on its shares. This ratio is used to measure whether the market price of a share is high or l. 31
  32. 32. 4.O RESEARCH METHODOLOGY R e s e a r c h m e t h o d o l o g y i s a w a y t o s ys t e m a t i c a l l y s o l v e t h e r e s e a r c h p r o b l e m . It may be understood as a science of studying how research is done scientifically. So, the research methodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study RESEARCH DESIGN From the study, the type of data to be collected and the procedure to be used for this purpose were decided. DATA COLLECTION METHODS 1) PRIMARY DATA Primary data are those data, which is originally collected afresh so in this project no primary data was collected. 2) SECONDARY DATA The required data for the study are basically secondary in nature and the data are collected through Balance Sheet and Profit and Loss Account of the company and through internet. TOOLS USED Tables Bar graphs charts 32
  33. 33. 5.0 DATA ANALYSIS 1)LIQUIDITY RATIO A)CURRENT RATIO CALCULATION OF CURRENT RATIO (RS IN CRORE) YEAR 2011 2012 Current assets 98.77 127.38 Current liability 21.97 25.34 CURRENT RATIO 4.49 4.49 TABLE 1 CURRENT RATIO CURRENT RATIO 5 4.49 4.49 4 3 2011 2 2012 1 0 2011 2012 YEAR INTERPRETATION:. If we see the current ratio of the company for last 2 year has remain same which is 4.49 but it is more than 2:1 which is beneficial for short term creditors. 33
  34. 34. D) QUICK RATIO CALCULATION OF QUICK RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Quick Assests 66.68 84.64 Current Liabilities 21.97 25.34 Quick Ratio 3.03 3.34 TABLE 2 CALCULATION OF QUICK ASSETS 2011 98.77-32.09=66.68 2012 127.38-42.74=84.64 QUICK RATIO QUICK RATIO 3.4 3.34 3.3 3.2 3.1 2011 2012 3.03 3 2.9 2.8 2011 YEAR 2012 INTERPRETAION:- A quick ratio is an indication that the firm is liquid and has the ability to meet its current liabilities in time .The ideal quick ratio is 1:1.Company‟s quick ratio is more than its ideal ratio .This shows that company has no liquidity problem. 34
  35. 35. B) LEVEARAGE OR CAPITAL STRUCTURE RATIO A) DEBT EQUITY RATIO CALCULATION OF DEBT EQUITY RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Long term loans .89 1.36 Shareholder‟s fund 118.41 151.12 DEBT EQUITY RATIO .007 .009 TABLE 3 DEBT EQUITY RATIO DEBT EQUITY RATIO 0.01 0.008 0.009 0.007 0.006 2011 0.004 2012 0.002 0 2011 YEAR 2012 INTERPRETATION:- This ratio suggests the claims of creditors and owners over the assets of the company. It shows the best pictures (growth) of a company's leverage. . The higher the figure, the higher is the leverage the company enjoys. The calculate figure is 0.09 in 2012 but as compare with 2011 the company DER is 0.07 which is lesser than previous year so the company focus on this ratio to improve its market position but overall the company leverage is good. 35
  36. 36. B) DEBT TO TOTAL FUNDS CALCULATION OF DEBT TO TOTAL FUNDS RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Long term loans .89 1.36 Shareholder‟s funds 118.41 151.12 DEBT TO TOTAL FUNDS .00751 .00892 DEBT TO TOTAL FUND RATIO TABLE 4 0.0095 DEBT TO TOTAL FUNDS RATIO 0.00892 0.009 0.0085 0.008 2011 0.00751 2012 0.0075 0.007 0.0065 2011 YEAR 2012 INTERPRETATION: This ratio is less than 0.67 in both the year which shows better long term solvency position of the company as higher ratio indicates a burden of payment of large amount of loans at maturity. 36
  37. 37. B) PROPRIETARY RATIO CALCULATION OF PROPRIETARY RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Shareholder‟s funds 118.41 151.12 Long term loans .89 1.36 PROPRIETARY RATIO 99.25% 99.11% TABLE 5 PROPRIETARY RATIO PROPRIETARY RATIO 99.30% 99.25% 99.25% 99.20% 99.15% 99.11% 99.10% 2011 2012 99.05% 99.00% 2011 2012 YEAR INTERPRETATION: This ratio highlights the fact as to what is the proportion of proprieters and outsiders in financing the total business,AS the company‟s ratio is more than 50% in both the years so it depicts sound financial position of a company 37
  38. 38. C) FIXED ASSET TO PROPRIETAR’S FUNDS CALCULATION OF FIXED ASSET TO PROPRIETAR‟S FUNDS (RS IN CRORE) YEAR 2010-11 2011-12 Fixed assets 41.61 44.33 Proprietor‟s funds 118.41 151.12 TO 35.1% 29.3% FIXED ASSETS PROPRIETOR‟S FUNDS TABLE 6 FIXED ASSET TO PROPRIETARS FUNDS FIXED ASSETS TO PROPRIETAR'S FUNDS 36.00% 35.00% 34.00% 33.00% 32.00% 31.00% 30.00% 29.00% 28.00% 27.00% 26.00% 35.10% 2011 29.30% 2011 2012 YEAR INTERPRETATION: Proprietar‟s funds is more than the fixed assets in both the year but the ratio reduce to 29.3% in the current year which is not the good indicator for the company as this ratio shows the long term financial soundness of business. 38 2012
  39. 39. E) CAPITAL GEARING RATIO CALCULATION OF CAPITAL GEARING RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Equity share capital 8.33 8.33 P&L balance 31.61 32.71 Fixed cost bearing capital .89 1.36 CAPITAL GEARING 44.87 30.17 RATIO TABLE 7 CAPITAL GEARING RATIO CAPITAL GEARING RATIO 50 44.87 40 30.17 30 2011 20 2012 10 0 2011 YEAR 2012 INTERPRETATION: Capital gearing ratio is a useful tool to analyze the capital structure of a company .As fixed cost bearing capital is less than the equity share capital in both the years then this shows that the company is low geared which is not beneficial for the equity shareholders. 39
  40. 40. 3) ACTIVITY RATIO A) STOCK TURNOVER RATIO CALCULATION OF STOCK TURNOVER RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Cost of goods sold 122.95 134.24 Average stock 24.49 37.41 STOCK TURNOVER 5.02 3.588 RATIO TABLE 8 CALCULATION OF COST OF GOODS SOLD2011 62.71-39.7=122.95 2012 174.47-40.23=134.24 40
  41. 41. STOCK TURNOVER RATIO STOCK TURNOVER RATIO 6 5.02 5 3.588 4 3 2011 2 2012 1 0 2011 YEAR 2012 INTERPRETATION: This ratio shows how rapidly the inventory is turning in to receivables through sales. In 2011the company has high inventory turnover ratio but in 2012 it has reduce to 3.588 times .This shows that the company‟s inventory management technique is less efficient as compare to last year B) DEBTORS TURNOVER RATIO CALCULATION OF DEBTORS TURNOVER RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Sales 162.71 174.47 Average Debtors 48.57 65.90 DEBTOR TURNOVER RATIO 3.35 2.64 TABLE 9 41
  42. 42. DEBTOR TURNOVER RATIO DEBTOR TURNOVER RATIO 4 3.5 3 2.5 2 1.5 1 0.5 0 3.35 2.64 2011 2012 2011 2012 YEAR INTERPRETATION:-This ratio indicates the speed with which debtors are being converted or turnover in to sales .The higher the values or turnover in to sales. The higher the values of debtors turnover ,the more efficient is the management of credit. But in the company the debtor turnover ratio is decreasing .This shows that the company is not utilizing its debtors efficiency .Now their credit policy become liberal as compare to previous. C) CREDITORS TURNOVER RATIO CALCULATION OF CREDITORS TURNOVER RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Net credit purchase 100.71 94.91 Average creditors 19.41 23.87 Average bills payable - - CREDITORS TURNOVER 5.18 3.97 RATIO 42
  43. 43. TABLE10 CREDITOR TURNOVER RATIO CREDITORS TURNOVER RATIO 6 5.18 5 3.97 4 3 2011 2 2012 1 0 2011 2012 YEAR INTERPRETATION:-As the company‟s creditors turnover ratio has decreased so it indicate less period of credit enjoyed by business it may due to the fact that either has better liquidity position, believe in availing cash discount and consequently enjoys better credit standing in the market. 4) PROFITIBILITY RATIO A) GROSS PROFIT RATIO CALCULATION OF GROSS PROFIT RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Gross profit 39.76 40.23 Net sales 162.71 174.47 GROSS PROFIT RATIO 24.43% 23.05% TABLE 11 43
  44. 44. GROSS PROFIT RATIO GROSS PROFIT RATIO 25 24.43 24.5 24 23.5 23.05 23 2011 2012 22.5 22 2011 2012 YEAR INERPRETATION:- Gross profit is the result of the relationship between prices, sales volume and costs .The gross margin represents the limit beyond which fall in sales prices are outside the tolerance limit.In this company, in 2011, gross profit is 24.5% it is good for every company but after one year it was fallen down to 23% in 2012 which shows that the company is not making good profit. B) NET PROFIT RATIO CALCULATION OF NET PROFIT (RS IN CRORE) YEAR 2010-11 2011-12 Operating net profit 22.41 15.23 Net sales 162.71 174.47 NET PROFIT 13.77 8.72 TABLE 12 44
  45. 45. CALCULATION OF NET PROFIT 2011 39.76-17.35=22.41 2012 NET PROFIT RATIO 40.23-25.00=15.23 15 NET PROFIT RATIO 13.77 8.72 10 2011 5 2012 0 2011 YEAR 2012 INTERPRETATION: The net profit ratio is the overall measure of the firm‟s ability to turn each rupee of income from services in net profit. If the net margin is inadequate the firm will fail to achieve return on shareholder‟s funds. In 2011 net profit is 13.77 and in 2012 it decreases to 8.72 which is not good for the company. C) OPERATING RATIO CALCULATION OF OPERATING RATIO (RS IN CRORE) YEAR 2010-11 2011-12 Cost of goods sold 122.95 134.24 Operating expenses 17.35 25.00 Net sales 162.71 174.47 45
  46. 46. OPERATING RATIO 86.22 91.27 TABLE 13 OPEARTING RATIO OPERATING RATIO 92 91 90 89 88 87 86 85 84 83 91.27 2011 86.22 2012 2011 YEAR 2012 INTERPRETATION:- This ratio shows that effectiveness of a company's management by comparing operating expense to net sales. In this company in 2011 operating ratio is 86.22 and in 2012 it is 91.27 which is increasing as compare to previous year because of increase in net sales. 46
  47. 47. 5.0 CONCLUSION AND RECOMMENDATION Finance is the life blood of every business. Without effective financial management a company cannot survive in this competitive world. A Prudent financial Manager has to measure the working capital policy followed by the company. This company is going good if we talk about liquidity ratio it is increasing from the last year , fixed assets are also increasing compare to the previous year and equity share capital remain same in the current year. Debtors turnover ratio has decreased which shows that the company is not utilizing its debtor‟s efficiency and creditors turnover ratio has also reduced which indicates less period of credit enjoyed by the business. Profitability ratio decreases which is not the good indicator for the company as efficiency of a business is measured in terms of profit. RECOMMENDATIONS  The company should make the balance between liquidity and solvency position of the company.  The profit ratio is decreased in current year so the company should pay attention to this because profit making is the prime objective of every business.  The cost of goods sold is high in every year so the company should do efforts to control it.  The long term financial position of the company is very good but it should pay a little attention to short term solvency of the company. 47
  48. 48. REFRENCES REFRENCE BOOKS MANAGEMENT ACCOUNTING Dr.K.L GUPTA ANNUAL REPORT OF CELLO PLASTIC PRODUCTS LTD 2010-11 2011-12 WEBSITES www.celloworld.com www.google.org.in 48

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