Trend Analysis: In financial analysis the direction of changes over a period of years is of initial importance.

Time series or trend analysis of ratios indicators the direction of changer. This kind of analysis is particularly applicable to the items of profit and loss account. It is advisable that trends of sales and net income may be studies in the lightly of two factors. The rate of fixed expansion for secular trend in the growth of the business and the general price level . It might be found in practice that a number of firm would be shown a persistent growth over period of years. But to get a true trend of growth, thd sales figure should e adjusted by a suitable index of general prices In other words, sales figures should be defaulted for rising price level. Another method of securing trend of growth and be which can be used instead of the adjusted sales figure or as check n them is to tabulate and plot the output or physical volume of the sales expressed in suitable, units of measure . If the general price level is not considered while analyzing trend of growth, it can be mislead management they may become unduly optimistic in period of property and pessimistic in duel periods For trend analysis, the use of index numbers is generally advocated the procedure follow is to assign the numbers 100 to items of the base year and at calculate percentage change in each items of other years in relation to base year. The procedure may be called as Mixed percentage method V This margin determines the direction of upward or downward and involves the implementation of the percentage relationship of the each statement item meant to the same in the base year. Generally the first year is taken as the base year. The figure of the base year are taken as 100 and trend ratio be other year or calculated on the basis of one year. Here and attempt is made to known the growth total investment and fixed assets of industries for six years that is 2001-2002 to 2007-2008

Table 1: YEAR 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 INVESTMENT 41,28,06,232 44,85,21,386 39,68,35,265 24,99,02,930 28,19,24,444 29,09,50,811 28,87,27,907 TREND PERCENTAGE 100 108,65 96.13 60.54 68.29 70.48 69.94

100 90 80 70 60 50 40 30 20 10 0

96.13

68.29 60.54

70.48

69.94

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

Interpretation: From the analysis of the above table it can be' observed that the growth rate of total investment of TCS is in downward trend which shows table of the TCS investment is decreasing from time to time. During the year 2007-2008it was recorded 100%. But it is decreasing in the year 2009-2010 which shows that there is a net decrease by 69.94 %. The average investment In total assets was found to be Rs.33,85,23,710.7 during the review period . During the period of 2007-2008it is a Rs.41,28,06,232 and it was decreased in the year 2009-2010 Rs 28,87,27,907

GROWTH IN FIXED ASSETS Table 2: YEAR 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 INVESTMENT 6,07,94,08,271 6,25,64,02,879 5,89,55,39,377 5,69,93,08,565 5,71,48,37,436 7,43,21,97,039 11,05,19,01,277 TREND PERCENTAGE 100 102.91 96.97 93.74 94.00 122.25 181.79

200 180 160 140 120 100 80 60 40 20 0

181.79

122.25 100 102.91 96.97 93.74 94

Interpretation: Growth rate in fixed assets, the examination of the above tabic reveals analysis and interpretation. 1. During the year 2007-2008the assets investment was recorded at 6,07,94,08,27 1 and it increased to Rs. 11,05,19,01,277 in 2009-2010 The fixed assets investment is quite satisfactory. 2. The trend percentage in the year 2007-2008is taken as the base year as 100% and it was increased to 181.79% in the year 2009-2010. 3. the average growth rate in fixed assets Rs.6,87,56,56,406 in 7 years

RATIO ANALYSIS: Ratio analysis is a powerful is a powerful tool of financial analysis. A ratio is defined as "The indicated quotient of two mathematical expression" and as "The relationship between for evaluating the financial position and performance of a firm. The absolute accounting figure reported in financial statement do not private a meaning full understanding of the performance and financial position of a firm. An accounting figure conveys meaning when it is related to some other relevant information. Ratios help to summarize large quantities of financial data and to make qualitative judgment about the firms financial performance. 1. Fixed Assets to Net worth Ratio: This ratio establishes the relationship between Fixed Assets and Net Worth. Net Worth = share capital + Reserves& surplus + Retained earnings. Fixed Assets Fixed Assets to Net Worth Ratio = ------------------------------ X 100 Net Worth This ratio of "Fixed Assets'"' to "Net Worth" indicates the extent to which shareholder be financed by shareholders, equity including reserves surpluses and retained earnings. If the ratio is less than 100% it implies that owners funds are more than total Fixed Assets and a part of the working capital is provided by the share holders. When the ratio is more than 100% it implies that owners funds are not sufficient to finance the fixed assets and the finance ahs to depend up on outsiders to finance the fixed assets. There is no "Rule of Thumb" to interpret this ratio but 60%to65%is considered to be ratio in ease of industrial undertaking.

2. Fixed Assets Ratio:This ratio explained whether the firm has raised adequate long term funds to meet its fixed assets requirements and is calculated as under Fixed Assets (After Depreciation) ---------------------------------------Capital Employed This ratio gives an idea as to what part of the capital employed has been used in purchasing the fixed assets for the concern. If the ratio is less than one it is good for the concern. 1 3. Fixed Assets as a Percentage to Current Liabilities: The ratio measures the relationship between fixed assets and the funded debt and is a very useful so the long term erection. The ratio can be calculated as below. Fixed assets Fixed assets as a percentage to current liabilities = -------------------------Current Liabilities

4. Total Investment Turnover Ratio: This ratio is calculated by dividing the net sales by the value of total assets i.e., (Net sales/Total Investment) or (Sales /Total Investment). A high ratio is an indicator of over trading of total assets while a low ratio reveals idle capacity. The traditional standard for the ratio in two times. 5. Fixed Assets Turnover Ratio: This Ratio expresses the number of times fixed assets are being turned -over is a state period. It is calculated ass under: Sales --------------------------------Net Fixed Assets (After depreciation)

This ratio shows low well the fixed assets are being used in the business . The ratio is important in ease of manufacturing concern because sales are. produced not only by use of Current Assets but also by amount invested in Fixed Assets the higher ratio , the better is the performance, on the other hand a low ratio indicated that fixed assets are not being efficiently utilized

6. Gross Capital Employed: The term "Gross Capital Employed" usually comprises the total assets , fixed as well as current assets used in a business. Gross Capital Employed - Fixed Assets + Current Assets 7. Return on Fixed Assets: Profit after Tax ------------------------ x 100 Fixed Assets This ratio is calculated to measure the profit after tax against the amount invested in total assets to ascertain whether assets are being utilized properly or not, the higher the ratio the better it is for the concern. Fixed Assets to Net worth: The ratio indicates the extent to where shareholders are funds are struck in the fixed assets. The formula to compute fixed assets to net worth is calculated as follows. Fixed Assets (after depreciation) /Net Worth. NET WORTH = Share Capital + Reserves &surplus +Retained earning If the ratio is less than 100% it implies that owner funds are more than the fixed assets and apart of working capital is provided by the share holder and viceversa. Fixed Assets Fixed Assets to Worth Ratio = ------------------ x 100 Net worth

Table 3: YEAR NET WORTH GROSS FIXED ASSETS 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 3,64,91,77,075 3,38,82,85,855 3,38,78,40,215 3,48,48,27,422 3,77,14,58,784 4,16,05,00,140 6,54,43,44,641 6,07,94,08,271 6,25,64,02,879 5,89,55,39,377 5,69,93,08,565 5,71,48,37,436 7,43,21,47,039 11,05,19,01,277 166.59 184.65 174.02 163.54 151.52 178.63 168.88 RATIO IN %

200 180 160 140 120 100 80 60 40 20 0

184.65 166.59

174.02

178.63 163.54 151.52

168.88

Interpretation 1. The gross fixed to Net worth ratio is furcating from year to year. In the year 2007-2008the gross fixed assets to net worth to acquire the ratio is

166.59%, in the year 2007-2008 the fixed assets to net worth to acquire the ratio is 178.93%. 2. The average net worth to fixed ratio is Rs.37,07,76,93,567 or fixed assets average Rs.6,87,56,56,406. 3. The highest ratio recorded in 2006-2007at 184.65 the lowest ratio is recorded at 151.52 in the year 2005-2006 and it was increased during the year 2007-2208 at 168.87.

Fixed Assets as a percentage to Long Term Liabilities Fixed Assets Ratio a Various ratio of fixed assets to net worth is a ratio of fixed assets to long term funds which is calculated as: Fixed assets (After depreciation) ...................................................... X 100 Capital Employed

Table IV YEAR NET WORTH GROSS FIXED ASSETS 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1754935148 1429465367 5584744868 5114519720 6141150452 6290568081 3832557792 6,34,91,77,075 3,38,82,85,855 3,38,78,40,215 3,48,48,27,422 3,77,14,58,784 4,16,05,00,140 6,54,43,44,641 48.1 42.2 164.8 146.8 162.8 151.2 119.7 RATIO IN %

180 160 140 120 100 80 60 40 20 0 48.1 42.2

164.8 146.8

162.8

151.2 119.7

Interpretation 1. The fixed assets as a % of long term liabilities the ratio is fluctuating from year to year. The fixed assets as a percentage of long term liabilities is

recorded at 42.2% in the year 2008-2009and it is recorded at 164.8% in the year 2005-2006 2. The highest ratio is recorded at 164.8% in the year 2008-2009the low ratio is 42.2% in 2005-2006 and it is increased during the year 2009-2010 at 119.7%

Fixed Assets as a Percentage Current Liabilities;-

Fixed assets Fixed Assets as a Percentage to Cu Liabilities=................................. Current liabilities

Table: V

YEAR

FIXED ASSETS

CURRENT LIABILITES

RATIO IN %

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

6,07,94,08,271 6,25,64,02,879 5,89,55,39,377 5,69,93,08,565 5,71,48,37,436 7,43,21,47,039 11,05,19,01,277

2,053,36,47,518 2,03,50,59,123 2,40,99,51,568 2,14,80,89,665 2,30,72,27,432 3,72,38,07,994 5,05,58,08,066

2.96 3.07 2.44 2.65 2.47 1.99 2.18

3.5 3 2.5 2 1.5 1 0.5 0

2.96

3.07 2.44 2.65 2.47 1.99 2.18

Interpretation 1. The ratio was fluctuating trend percentage in review period. 2. From the above table it is observed that the ratio was recorded at 2.96in the 2007-2008and is gradually changing to 2.47 in 2007-2008 which indicates that the current funds are used in the fixed assets which is quite satisfactory. 3. The average ratio was recorded at 2.59 during the review period of time 4. The highest ratio was recorded at 3.07 which is higher than the average ratio. During the year 2004-2005. 5. The lowest ratio was recorded at 1.99 which is less than the average ratio. During the year 2008-2009. Total Investment Turnover Ratio The total investment turnover ratio can b calculated by the formula as given under : Sales Total investment turnover ratio= -------------------- x100 Total investment

Table: VI YEAR FIXED ASSETS CURRENT LIABILITES 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1,34,543,28 1,40,116,22 1,35,375,24 1,29,553,62 1,42,195,78 1,61,317,75 22,08,96,60,339 4,128,06 4,448,21 3,368,35 3,499,02 2,819,24 2,901,24 28,87,27,907 32.5 31.2 34.1 51.84 50.43 55.29 76.56 RATIO IN %

80 70 60 50 40 30 20 10 0 32.5 31.2 34.1 51.84 50.43 55.29

76.56

Interpretation 1. The ratio was in increasing trend. 2. During the year 2007-2008the ratio was recorded at 32.5 and in the 20092010 the ratio was increased to 76.56 3. The highest ratio was recorded at 76.56 in the year 2009-2010 which is more than the average ratio. 4. The ratio was 32.5 which is lesser than the average ratio. Fixed Assets Turnover Ratio The fixed assets ratio is the relationship between the sales of cost of goods/capital assets employed in a business. Sales Fixed Assets Turnover Ratio ----------------------x 100 Total Fixed Asset

Table: VII YEAR SALES (IN LACKS) 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 1,34,543,28 1,40,116,22 1,35,375,24 1,29,553,62 1,42,195,78 1,61,317,75 2,20,89,660,339 TOTAL FIXED ASSETS 60,794,08 62,564,02 58,955,39 56,993,08 57,148,37 74,321,97 1,10,519,01 2.21 2.23 0.29 2.27 2.40 2.17 1.99 PERCENTAGE

2.5 2 1.5 1 0.5 0

2.21

2.23

2.27

2.4 2.17 1.99

0.29

Interpretation: 1. The fixed assets turnover ratio is fluctuating trend during the review period of time. During the year 2007-2008the ratio was recorded as 2.2 1% and in the year 2009-2010 the ratio was decreased to 1.99 2. Average ratio was observed 2 .22% during the review period of time 3. The highest ratio was recorded at 2.40% during the year 2008-2009 which is more than average. 4. The lowest ratio was 1.99% in the 2009-2010 which is less than the average.

Fixed Assets as a Percentage to Total Assets:-

Fixed Assets Fixed Assets as a percentage to Total Assets-----------------X 100 Total Assets

Table: VIII YEAR FIXED ASSETS (IN LACKS) 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 60,794,08 62,564,02 58,955,39 56,993,08 57,148,37 74,32,197 1,10,519,01 1,17,985.89 1,12,647.26 1,12,637.07 1,13,443.60 1,23,031,14 1,38,204,81 1,63,964,36 51.5 55.5 52.3 50.0 46.0 53.77 67.40 TOTAL ASSETS PERCENTAGE

70 60 50 40 30 20 10 0 51.5 55.5 52.3 50 53.77 46

67.4

Interpretation: 1. Fixed assets to total assets ratio is fluctuating trend during the review period of time 2. During the year 2007-2008the ratio was recorded at 51.5% and the year 2007-2008 the ratio was decreased to 46%. 3. Average ratio was observed at 53.78% during the review period of time. 4. The highest ratio was observed at 67.40% during the year 2009-2010 which is more then the average. The lowest ratio was recorded at 46% in the year 2007-2008 which is less then average ratio.

Gross capital Employed: Gross capital Employed = Fixed Assets + current Assets. Table: IX YEAR FIXED ASSETS (IN LACKS) CURRENT ASSETS (IN LACKS) 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 60,794,08 62,564,02 58,955,39 56,993,08 57,148,37 74,321,97 1,10,519,01 53,063.74 45,589,02 49,713.32 53,95.48 63,063.52 60,981.33 86,811.49 GROSS CAPITAL EMPLOYED (IN LACKS) 1,13,857.82 1,08,162.05 1,08,668.71 1,10,944.56 1,20,211.89 1,35,303.33 1,97,330.50

Profit After Tax:YEAR PROFIT AFTER TAX (IN LACKS) 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 4,644.97 4,137.14 2,814.67 6,299.57 3,351.28 4,570.92 26,568.32

30,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 4,644.97 4,137.14 2,814.67 6,299.57 3,351.28 4,570.92

26,568.32

Interpretation:

From the above the profits of TCS is in increasing which is good for the company. Lacks and it is increased during the year 2009-2010 the PAT is 26,568.32 In the year 2005-2006 the PAT is the lowest and in 2009-2010 it is observed that the highest PAT is 26,568.32 over the years. Return On Gross Capital Employed;The profit for the purpose of calculation on capital employed should be computed according to the concept of capital employed used. The profits taken must be the profit earned on the capital employed in the business Profit After Tax Return on Gross Employed ---------------------------------= XI 00 Gross Capital Employed

Table: X YEAR PROFIT AFTER IN LACKS 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 4,644,97 4,137,14 2,814,67 6,299,57 3,351,28 4,570,92 26,568,32 CROSS CAPITAL 1,13,857.82 1,08,162.05 1,08,668.71 1,10,944.56 1,20,211,89 1,35,303.33 1,97,330.50 4.0 3.8 2.5 5.7 2.8 3.4 13.46 PERCENTAGE

14 12 10 8 6 4 2 0 4 3.8 2.5 5.7 2.8 3.4

13.46

Interpretation: 1. Return on Gross Capital Employed ratio is fluctuating trend during the review period of time 2. During the year 2007-2008the ratio was recorded at 4.0% and in the year 2009-2010 the ratio was increased to 13.46% and the average ratio is 5.09 3. The highest ratio was recorded at 13.46% in the year 2009-2010 which is more than average ratio. 4. The lowest ratio was recorded at 2.5% duding the year 2006-2007 which is less than the average ratio. Return on Fixed Assets:The return on fixed assets can be calculated as under: Profit After Tax Return on Fixed Assets =................................X 100 Fixed Assets

Table: X YEAR PROFIT AFTER IN LACKS 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 4,644,97 4,137,14 2,814,67 6,299,57 3,351,28 4,570,92 26,568,32 CROSS CAPITAL 60,794.08 62,564.02 58,955.39 56,993.08 57,148.37 75,321,97 1,110,519 7.6 6.6 4.7 11.05 5.86 6.15 24.03 PERCENTAGE

25 20 15 10 5 0 7.6 6.6 4.7

24.03

11.05 5.86 6.15

Interpretation: 1. Return on fixed assets ratio is increasing 2. During the year 2007-2008the ratio recorded as 7.6% in the year 2009-2010 the ratio was increased to 24.03% 3. The average ratio is 9.42% 4. The highest ratio is recorded at 24.03% in the year 2009-2010, the lowest ratio is 4.7% in the year 2005-2006.