Professional Documents
Culture Documents
ON
ANALYSIS OF FINANCIAL STATEMENTS OF
SOUTH INDIA METAL COMPANY,
SHORANUR -2
A
PROJECT REPORT
SUBMITTED TO CALICUT UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD
OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
SUBMITTED BY
SAJA.K.A
REGISTER NO:
UNDER THE GUIDANCE OF
RAMSEENA
MISS (M.Com)
Saja.K.A
Internal Guide
MR PRASAD. P
MISS RAMSEENA
(Lecturer)
Dept of commerce& managent studies
Saja.K.A
DECLARATION
PLACE: PERUMPILAVU
DATE:
SAJA..K .A
FINAL BBA
ANSAR WOMENS COLLEGE
Saja.K.A
ACKNOWLEDGEMENT
Perumbilavu:
Date:
CONTENTS
4
Saja.K.A
CHAPTER
PAGE NO:
1. INTRODUCTION.8-11
2. COMPAN PROFILE13-27
3.
CHAPTER-1
Saja.K.A
INTRODUCTION
100small scale agricultural implements tools manufacturing units in KERALA. The main
location of these units is at SHORANUR at PALAKKAD District, {70% are at
SHORANUR itself}. The remaining units are spread over various parts of the state
especially in rural areas.
Total investments of these 100 units in plant and machinery are more than
Rs6Crores .The industry provides employment to nearly 300 people in this sector. The
ANNUAL turn over of these units is more than Rs20Crores and the main item of
manufacturing include Spade, Pick-axe, Hammer, Sickles etc
It should be noted that various processes of manufacturing, raw materials,
machinery & equipments, investment, labour etc are required for small units. The
industry has been included in small scale units because it requires less investment when
compared to other large scale industries and also less technological background for
Saja.K.A
Saja.K.A
by a systematic and continuous analysis of fixed assets, current assets, fixed and current
liabilities, sales liquidity etc. An analysis of financial statements of South India Metal
Company will help to identify the weak points and convert it to strong points by taking
some remedial measures. The present study is an attempt in this direction.
METHODOLOGY
Saja.K.A
2.
3.
Profitability Ratio.
4.
Liquidity Ratio
5.
Averages
2.
Percentages
Ratios
2.
Trend Analysis
& Statistical Tools were made also used for this analysis.
It considers only monetary factors, non monetary factors are not considered.
It is applicable only in the case of South Indian Metal Company, Shornur, not a study
of industry concerned
Saja.K.A
COMPANY PROFILE
CHAPTER-2
10
Saja.K.A
: 09/07/00380/PMT
AUDITOR
MANAGING DIRECTOR
: P.DIVAKARAN
BANK
TRADE NAME
: SIMCO
BRAND SYMBOL
: LION
NAMBOOTHIRIPAADU.
The
partners
of
the
firm are
Saja.K.A
LAY OUT
The layout of the firm comprises factory buildings, office, canteen and rest room
for employees, security office and employers quarters well designed to accommodate
with in the available area even providing space for future expansion.
12
Saja.K.A
QUALITY CONTROL
SIMCO ranked first in its quality of products targeted towards user satisfaction.
The firm has received various awards including a first prize in the WORLD
AGRICUTURAL FAIR at NEW DELHI in 1961 for SECATURES and second prize in
the NATIONAL QUALITY AWARD FOR AGRICULTURAL IMPLEMENTS in 1986
Saja.K.A
PRUNNING SAW
PRUNNING KNIFE
5. HAND TOOLS
TM CUTTER
ALAVANGOES
FELLING KNIFE
HAMMERS
AXE
SICKLE
COMPANY HAVE A MONOPOLY ON THE PRODUCTION OF
DIGGING FORK
PICK AXE
Pick-axe is an inevitable implements used by farmers and workers.These are used for
digging purposes.Two edges of pick-axe are sharpened one edge is pointed and the other
iand the other is flattered.So the operations become easier.
SPADE
Spade is an essential tool for several kinds of agricultural operations.It is mainly used for
turning up the soil or digging of the ground.It can be used both in light and hard soil.
HAMMER
Hammer is an indispresable tool for mining and quarry works. It is used for splitting
stones or rocks and is also used in the preparation of metal for load and building
constructions.The purpose for which it is being used the hammer is generally included in
the category of agricultural implements.
14
Saja.K.A
ORGANISATION CHART
Purayanur Industries
Managing Partner
Technical Manager
Office
Manager
Raw material
Production and
Accounting and
Purchase and
Maintenance
Finance
Stores department
Department
Department
Department
Foreman
Charge man
Finished Goods
and sales
Sales Manager
Account
Clerk
Sales Clerk
Wage Clerk
Workers
Raw material
Store Keeper
Watchman
15
Dispatch clerk
Computer
Operator
Saja.K.A
VARIOUS DEPARTMENTS
1) RAW MATERIALS PURCHASE AND STORES
DEPARTMENT
The working of the company starts from the Raw material purchase and stores de
partment. The raw material store keeper is the head of this department. There is one
assistant store keeper to help the raw material store keeper. The main functions of thsi
depatment
are (1) Purchasing of raw material (2) Storing of raw material (3) Issuing of raw material.
1)PURCHASING OF RAW MATERIAL
Purchase of raw material is the important function of the raw material
purchase and stores department.It includes the following steps
a) RECEIVING PURCHASE REQUISITION
Purchase requisition is a form used as a formal request to the purchasing
department to purchase materials.It gives the specification and quality materials to be
bought ,works order number and sanctions reference appilicable and data line for the
receipt of the materials.
When the stock of materials come to the re-ordering level ,the store
keeper prepare a purchase requisition.After receiving the purchase requisition,the
purchase manager will inform the same to several manager and then inform to
managing partner.Managing partner give consent to the purchase of such raw
material.After selecting the supplier the purchase manager will send purchase order to
those suppliers who supply the good quality material.
16
Saja.K.A
PRODUCTION DEPARTMENT
Production is a process of converting rawmaterial into semi finished
goods or finished products.The working of the production department consist of the
following process:
17
Saja.K.A
1.RAIL CUTTING
The first step in production process is to cut the rail into comfortable
size.Mainlythe rail is divided into 3 parts head,centre and flange or bottom.Head is used
for making hammers, centre for making mammatties etcThe products which need high
carbon content are made by billets.
2.POWER FORGING
After Rail cutting it is then passed to the power forging section.A far heating the
rail upto red form furnure,it is passed to power hammers.The power hammers will give
Rough shape to the product.From here semi finished goods are passed to Hand forging
section.
3.HAND FORGING
Finishing work is manually done at hand forging section.Only that raw material
which is having rough shape is passed to hand forging section.
4.TEMPRATURE 0R HEAT PROCESSING
Tools are tempered on hardened under this process. Firstly the tools are heated
then suddenly cooling. This is another area of expert work because the qualities of the
tool or implements are very much depending on this process. Similarly sharper tools are
tempered in quenching oil and other tools are tempered is know.
5.GRINDING OR POLISHING
Under this process tools are grinded or polished. This process makes the tools are
very attractive. For this grinding wheels and polishing belts are used.
6.CUTLERY AND CARPENTARY
Next process is cutting and carpentry certain tools require handles. These handles
are fitted under this process. For handled, in this company avail plants are used because
of the special quality in nature.
7.PAINTING AND PACKING
Some tools are painted in the red colour, some others in light rose and others in
varnish.
18
Saja.K.A
The painted or varnished tools are packed in convenient Quantities and then
transferred to finished goods stall. The process Of Production is given in diagram. The
diagram showing the Company process of section of production.
MAINTENANCE DEPARTMENT
Maintenance section is a part of production department. It helps to
make the production smoothly affinity. It consists of on maintenance engineer and his
workers. The workers include sharps, mechanist, man and fitters.Maintenance of a
machine means effort dissected towards maintaining the machine in a good condition.
Maintenance reduces break downs and helps in achieving targeted production. The
maintenance is done with out affecting production. The main duties of the department are
repair and maintenance of equipments of the factory.
The main functions of their department are:
1) To provide spare part to the machine.
2) To repair machine
3) To maintain the machine properly
4) To provide directions and instruction regarding options of machines.
The maintenance section is not a suppurate department. But it is a part of production
department. This helps to repair the machines and prevent the stoppage of production or
to avoid the interception in the flow of production process.
MARKETING DEPARTMENT
Marketing is a comprehensive term and includes all resources and set of
activities necessary to direct and facilitate the flow of goods and services from the point
of production to the consumption through the process of distribution.Marketing is the
process of all activities including for the exchange of goods and services from the point
of production to the point of consumption.
The marketing area of SIMCO product is the whole over South India. The
products are marketing directly by the firm. Sales manager is in charge of marketing
department. He is to make sales and keep all records and account in connection with
19
Saja.K.A
sales. Sales department divides the selling price of the products, profit on product and
production on the basis of demand.
The method is that the company has a sales representative to collect orders
from the dealer/retailers.
SALES DEPARTMENT
The sales manager with the help of sales clerk undertakes the sales activities.
Orders are received by the firm through agents on securing orders the sales clerk makes
arrangements for the delivery of goods. He records the products delivered, its quality,
price quantity etc in a book known as order book.For order worth Rs 3500 /- or more at a
times 15% discount will allowed for all items. It charges central sales tax and maximum
credit period is one and half month.It also provides credit sales on limited rates.
Saja.K.A
INDUSTRIAL RELATION
Trade union are a powerful instrument to promote and safe guard the interests of the
workers and to achieve the economical psychological and social goal of workers
Trade union of the company are as follows
CITU
INTUC
B.M.S
SIMCO Staff Association (staff union)
WELFARE
Labour comprises all human efforts of body and mind, which is exchanged for a
consideration in term of cash or kind or bosh. Welfare to a broad concept referring to a
condition of an individual or group of relationship with the whole environmental.
Friendly existence physiological balance, population free existence and proper sanitation,
solid welfare is the prevention of decimation bred on costs, creed sex, establishment of
equity and fairness, ensuring safety. The office of economic welfare same time promotes
Economic development of society by increasing production, productivity and quality of
products and services.
21
Saja.K.A
There are different rule for determining the wages of workers and salary of
office staff. Office staff and watch man received fixed salary.But the workers receive
wages under piece rate system.The firm pays iut the wages as per the minimum wages
Act of 1948
Minimum
Provident fund is give to the employee by way of contribution equally done by employer
and the employees.
GRATUITY
Saja.K.A
ABSENTEESIM
There are two types of absentees. They are habitual absentees and non habitual
absentees.
somewhere engaged in other wise, other than their workers in the company.Non habitual
absentees those who take leave very rarely. SIMCO permits 10 % absenteeism in a year
GRIEVANCE HANDLING
If there is any grievance are occupied it will be reported to the top leve
managers and a mmeting will be called immediately.In this the workers and top level
management reveal their problems and complaints according to this proper action will be
taken
23
Saja.K.A
TIME OFFICE
For recording the attendance of workers instead of attendance register and
attendance card method is followed.It is placed in the time office. The attendance card
contains the name of the worker, ticket number, name of the dept in which he works,
working hours etc. At the time of his arrival the worker should submit his attendance
card. The charge man also records the attendance in a particular book the note book
include the name of worker, ticket number, 6time of arrival etc. After doing the charge
man submits this book to the personal manager and he will make tick marks on the
attendance card and this is the base for preparing wage sheet.
24
Saja.K.A
ACCOUNTING SYSTEM
The Accounting Department is fully computerized. The company maintains the accounts
on double entry system of Book-Keeping.Office manager is in charge of accounts section
and is responsible for the entire function of this section.
Main books of accounts
The company prepares mainly the following books.
Cash book : Cash book is prepared for entering all the receipt and
expenses of cash
Purchase day book : Transaction of credit purchase of goods are recorded
in this book
Sales day book: Sales day book includes all sales made in a day. There
are separate column for taxable and nontaxable items in these books.Two
separate column for @ 4 percentages and 10 %. At the end of every
month the sales clerk prepares sales day book.
General Ledger: A general ledger contains all other accounts.
Bankbook: The bank book contains the receipt and payments of check,
demand draft etc.
Personal Ledger: It includes personal accounts, which are divided into
two separate accounts. They are:
Sundry creditors:- All purchases are treated as credit purchase and so that
all purchases entered in to sundry creditors account.
Sundry debtors: - This account is kept for ending reminder and for
Calculating sundry debtors.
CHAPTER 3
Saja.K.A
Comparative Statements.
2.
Trend Analysis.
3.
4.
Ratio Analysis.
26
Saja.K.A
5.
COMPARATIVE STATEMENTS
The comparative financial statements are statements
which show the financial position of a firm at different period of time. The changes in
financial data are best understood if the statements of two or more years are placed side
by side to facilitate comparison. Such statements are called Comparative Financial
Statements.
The two Comparative Statements are Comparative Balance Sheet &
Comparative Income Statement.
TABLE 3-1
Saja.K.A
PARTICULARS
2006-2007
Rs
2007-2008
Rs
ABSOLUTE
INCREASE/
DECREASE
%
INCREASE/
DECREASE
SALES
1,85,38,693.38
2,15,67,735.45
30,29,042.07
16.34
1,66,17,804.53
49,49,930.92
22,70,363.73
7,58,678.34
15.82
18.10
10,37,88.54
54,571.39
49,217.15
47.42
42,95,041.12
50,04,502.31
7,09,461.19
16.52
{LESS}OPERATING 31,47,563.54
EXPENSES
OPERATING
11,47,477.58
PROFIT
36,69,114.19
5,21,55,0.65
16.57
13,35,388.12
1,87,910.54
16.38
7,24,581.60
7,83,111.02
58,529.42
8.07
4,22,895.98
5,52,227.10
1,29,381.12
30.59
LESS COST OF
GOODS SOLD
1,43,4,7440.8
GROSS PROFIT
41,91,252.58
{ADD}.OTHER
INCOME
TOTAL
{LESS}. NON
OPERATING
EXPENSES
NET.OPERATING
PROFIT
INTERPRETATION
The comparative income statement gives above reveals that
1.
There has been an increase in sales of Rs 30,29,042.07 in the year 2007- 2008while
the cost of goods sold has increased nearly by 15.82%ther by resulting in an
increase in gross profit of Rs.7,58,679.34.
2.
3.
4.
5.
In the year 2007-2008 the net operating profit of the company is increased by
30.59%.There is a sufficient progress in the firm and the overall profitability of the
firm is good.
28
Saja.K.A
TABLE 3-2
PARTICULARS
2006-2007
Rs
2007-2008
Rs
ABSOLUTE
INCREASE/
DECREASE
%
INCREASE
DECREASE
INVENTORIES:
60,11,711.33
56,47,238.96
3,64,472.04
6.06
SUNDRY DEBTORS
38,92,565.22
45,54,700.82
6,52,135.06
16.75
1,65,825.63
87,653.10
78,172.53
47.14
LOANS&ADVANCE
5,16,294.98
5,63779.86
47,484,.88
9.197
TOTALCURRENT
ASSETS
1,05,86,397.16
1,08,43,372.74
2,56,975.58
2.43
Fixed Assets
8,47,665.65
8,54,428.80
6,763.15
.797
TOTAL.FIXED
ASSETS
8,47,665.65
8,54,428.80
6,763.15
.797
TOTAL ASSETS
1,14,34,062.81
1,16,97,801.54
2,63,738.73
2.31
ASSESTS
CURRENT ASSETS
LOANS& ADVANCES
FIXED ASSETS:
29
Saja.K.A
LIABILITIES
Current Liabilities
Current Liability
TOTAL.CURRENT
LIABILITIES
29,18,093.23
34,89,218.58
5,71,125.35
19.57
29,18,093.23
34,89,218.58
5,71,125.35
19.57
Secured
32,94,765.74
33,03,299.00
9,133.26
.28
Unsecured
34,12,826.50
32,71,432.00
1,41,3945
4.14
65,74,731
1,32,261.24
1.97
LONG.TERM
LIABILITIES:
Loans
TOTAL.
LONG TERM
LIABILITIES
67,06,992.24
Owners Fund
Capital
Purayannur Industries
18,08,977.34
16,33,851.96
1,75,125.38
9.68
TOTAL.SHARE
HOLDERS FUND
18,08,977.34
16,33,851.96
1,75,125.38
9.68
TOTAL LIABILITIES
1,14,34,062.81
1,16,97,801.54
2,63,738.73
2.31
INTREPRETATION
1. The excess of current assets over current liabilities gives the working capital.
Both 2006-07 and 2007-08 shows that current assets exceed current liabilities.
The working capital in the year 2006-07 was Rs 76,68304.93 and in 07-08 Rs
73,54,154.16. The working capital shows short term financial position of the
concern.
30
Saja.K.A
loans and advances increased by Rs 6, 52,135.6 and Rs 47,484 cash and bank
balances of the firm decreased by 47.14% compared to previous year. This
shows a decrease in the liquidity position of the firm
3. The figure of fixed assets and long term liabilities and capital reflect the long
term financial position o f the firm. Long term sources are used for financing
not only fixed assets but also a part of working capital. It is better to finance
fixed assets by raising long term funds.
5. The firm has no reserve and surpluses. This will adversely affect their
profitability. In the absence of reserves and surplus the firm has to depend on
external sources in the event of an emergency. This will create problem for
partners.
TREND ANALYSIS
The financial statement may be analyzed by computing trends of
series of information. This method determines whether the direction is upward or
downward and involves in the computation of the percentage relationship that each item
bears to the same item in the base year is taken as base year. The figures of the base year
are taken as base year. The figures of the base year are taken as 100 and trend ratio for
other years calculated on the basis of the base year
TABLE: 3-3
31
TREND %
100
92.69
Saja.K.A
2005-06
2006-07
2007-08
1,94,23,836.66
1,85,38,693.38
2,15,67,735.45
119.04
113.62
132.18
GRAPH: 3-1
140
120
100
80
East
60
40
20
0
2003-04 2004-05 2005-06 2006-07 2007-08
TABLE 3-4
2004-05
1,02,81,014.31
94.26
2005-06
1,46,96,061.89
134.74
32
TREND %
100
Saja.K.A
2006-07
1,43,47,440.80
131.55
2007-08
,66,17,804.53
152.36
GRAPH 3-2
160
140
120
100
East
80
60
40
20
0
2003-04 2004-05 2005-06 2006-07 2007-08
TABLE 3-5
33
Trend %
100
56.14
133.14
Saja.K.A
2006-07
2007-08
4,22,895.98
5,52,277.10
57.41
74.97
GRAPH: 3-3
140
120
100
80
East
60
40
20
0
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
Trend Analysis or trend percentage above has clearly given an idea about
sales, cost and profit of five years i.e. 2003-04,2004-05,006-07 and 2007-08.Sales of
2003-04 is taken as base year sales have been decreased in 204-05 when compared to the
base year. In the year 2005-06 sales have been increased by 19.04.I the year 2006-2007
trend percentage of sales is 113.62%.In the year 2007-08 sales has been increased
by132.18%.Trend analysis of sales shows both increasing as well as decreasing trend.
34
Saja.K.A
35
Saja.K.A
item is expressed as total percentage of 100.The analyst is able to asses the figures in
relation to total values. The common size statements may be common size income
statements and common size balance sheet.
the
enterprise.
36
Saja.K.A
PARTICULAR
S
2003-2004
Amount
Rs
2004-2005
%
Amount
Rs
2005-2006
%
2006-2007
2007-08
Amount
Rs
Amount RS
Amount
Rs
1)LIABILITI
ES
1)Proprietors
Fund
a) Purayannur
Industries
10,93,250.42 11.25
10,30,314.54
10.32
16,31,395.26
15.69
18,08,977.34
15.82
16,33,851.96
13.97
16,85,068.61 17.35
27,49,223.02
27.53
23,09,726.27
22.22
32,94,165.74
28.81
33,03,299.00
28..24
39,53,454.40 40.70
39,57,576.00
39.63
38,18,842.00
36.74
34,12,826.50
29.85
32,71,432.00
27.97
29,81,808.04 30.70
22,50,099.49
22.52
26,35,774.72
25.35
29,18,093.23
25.52
34,89,218.58
29.82
97,13,581.47 100
99,87,213.05
100
1,03,95,738.2
100
1,14,34,062.8
100
1,16,97,801.5
100
7,42,554.74
7.64
6,20,406.61
6.21
5,40,723.30
5.20
8,47,665.65
7.41
8,54,428.80
7.30
Inventories
49, 40,267.1050.86
60,18,323.1
60.26
54,50,178.6
52.43
60,11,711.3
52.58
56,47,238.9 6
48.28
Sundry Debtors
32,65,810.21 33.62
26,48,334.42
26.52
38,52,554.41
37.06
38,92,565.22
34.04
45,44,700.82
38.85
3,28,204.36
3.38
2,80,744.06
2.81
1,79,727.05
1.73
1,65,825,63
1.45
87,653.10
0.75
Loans
&Advance
4,36,745.06
4.50
4,19,40486
4.20
3,72,554.86
3.58
5,16,294.98
4.52
5,63,779.86
4.82
Total Assets
97,13,581.47 100
99,87,21 3.05
100
1,03,95,738.25
1,14,34,062.81
100
1,16,97,801.54
100
2)Loan Funds
Secured
Unsecured
3)Current
Liabilities
TOTAL
LIABILITIES
II.ASSETS
1.Fixed Assets
2.Current
Assets
Loans
&Advances
100
INTREPRETATION
37
Saja.K.A
38
Saja.K.A
CHAPTER 4
Saja.K.A
CLASSIFICATION OF RATIOS
On the basis of purpose, Ratio may be classified as under
1. Profitability Ratios
2. Turn over Ratios.
3. Financial Ratio
a) Liquidity or Short term financial ratios
b) Solvency or Long term financial ratio
40
Saja.K.A
GROSS PROFIT
NET SALES
41
GROSS PROFIT
Saja.K.A
Rs
46,06,914.21
42,35,689.18
4,72,774.77
41,91,252.58
49,49,930.92
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
1,63,16,381.37
1,51,25,231.49
1,94,23,836.66
1,85,38,693.38
2,15,67,735.45
RATIO
28.23%
28.00%
24.34%
22.16%
22.95%
GRAPH:4.1
Graph showing Gross Profit Ratio of SIMCO year 2003-08
30
25
20
15
10
5
0
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
The above bar diagram clearly indicates the Gross profit Ratio for the last
Five years. It indicates the margin of profits on sales. Gross profit ratio in the ear 2003
04 was the highest in 28.23%. Then it started decreasing. In the year 2007-08 Gross
profit ratio was 22.95%. Decrease in gross in gross profit ratios is mainly due to inability
of the management to improve the volume of sales and decrease in selling price with out
corresponding decrease in the cost of goods sold.
42
Saja.K.A
TABLE: 4.2
Year
Net Sales
2003-04
2004-05
2005-06
2006-07
2007-08
7, 36,643.86
4,13,564.53
9,80,793.37
4,22,895.98
5,52,277.10
1,63,16,381.37
1,51,25,231.49
1,94,23,836.66
1,85,38,693.38
2,15,67,735.45
4.51%
2.73%
5.04%
2.28%
2.56%
GRAPH: 4.2
Graph showing net Profit Ratio of Simco from 2003 08
43
Saja.K.A
6
5
4
3
2
1
0
INTERPRETATION
Net profit ratio indicates management efficiency in manufacturing
administrating and selling the products. This is a measure of over all profitability. Net
profit ratio was the highest in the year 2005-06 ie 5.04%. But in the next year it again
decreased to 2.28% and in the 2007-08 net profit ratio was 2.56%. a low net profit ratio
would mean low efficiency and in adequate returns to the owners
OPERATING RATIO
This ratio establishes the relationship between operating cost and net
sales. This ratio is used to test the operating efficiency of the firm. It is calculated by
using the following formula.
44
Saja.K.A
TABLE: 4.2
YEAR
NET SALES
OPERATIN
2003-04
OPERATING EXPENSES
1,09,06,701.16+27,76,920.35
1,63,16,381.37
G RATIO
83.86%
2004-05
=1,36,83,621.51
1,02,81,014.31+29,13,706.71
1,51,25,231.49
87.24%
2005-06
=1,31,94,721.02
1,46,96,061.80+30,25,755.99
1,94,23,836.66
91.24%
2006-07
=17,72,1871.99
1,43,47,440.80+30,49,989.95
1,85,38,693.38
93.84%
2007-08
=1,73,97,430.75
1,66,17,804.53+35,34,875.96
2,15,67,735.45
93.44%
=2,01,52,680.49
GRAPH:4.3
Graph showing operating profit of SIMCO year 2003-08
94
92
90
88
86
84
82
80
78
East
2003-04
2004-05
2005-06
2006-07
2007-08
83.86
87.24
91.24
93.84
93.44
45
Saja.K.A
INTERPRETATION
The Operating Ratio of SIMCO indicates that for every Rs 100 % of
sales, cost of goods sold and operating expenses between 80% to 95%.
RETURN ON INVESTMENT
When a firm investment money in business it naturally expects
adequate return on its investment. Therefore the firm wants to know how much profit is
earning on its investment. It is for knowing this return on investment is computer. ROI
measures the over al profitability. It establishes the relationship between profit or return
and investment. It is computed as follows.
Net sales
2003-04
18,40,356.36
67,31,773.43
27.34%
46
Saja.K.A
2004-05
2005-06
2006-07
2007-08
13,44,713.79
1,86,716.71
12,45,051.17
14,69,626.35
77,37,113.56
77,59,963.53
85,15,969.58
82,08,582.96
17.38%
24.03%
14.62%
17.90%
GRAPH: 4.4
Graph showing return on investment of SIMCO from 2003-08
70
60
50
40
East
30
20
10
0
2003-04
2004-05
2005-06
2006-07
2007-08
INTERPRETATION
Ideal return on capital employed 13.1 in the year 2006-07 ROI is below the
standard norm. but in all other years RIO was above the standard norm.
47
Saja.K.A
This will help to measure the profitability from owners point of view. This is the
ratio of net profit to share holders funds or net worth. It is calculated in follows.
Return on owners fund = Net Profit after tax and interest
-------------------------------------------X 100
Owners fund
TABLE 4.6
YEAR
NET PROFIT
2003-04
7,36,643.86
10,93,250.42
RATIO
67.38%
2004-05
4,13,564.53
10,30,314.54
40.14%
2005-06
9,80,793.37
16,31,395.26
60.12%
2006-07
4,22,895.98
18,08,977.34
23.38%
2007-08
5,52,277.10
16,33,851.96
33.80%
GRAPH:4.5
Graph showing Return on owners fund of SIMCO year 2003-08
48
Saja.K.A
2007-08
15%
2006-07
10%
2005-06
27%
2003-04
30%
2004-05
18%
INTERPRETATION
This ratio helps to measure the profitability from the owners point of view. It
indicates how efficiently the owners funds have been utilized by the firm. In the year
2003-04 return on owners funds is 67.38%. But in the year 2007-08it was decreased to
33.80%.
management in managing the assets. Turn over ratios is used to measure the efficiency of
effectiveness with which a firm manages its resources or assets.
In other words, these ratios reflect the efficiency of a firm in the asset
49
Saja.K.A
management. Turn over ratios related to sales. Sales have divert relationship to the
performance of the business. Higher sales mean better performance which means better
efficiency and productivity of the business. Higher sales also mean, more production
which is the result of the best possible utilization of physical resources. Important turn
over ratio is the following.
TABLE: 4.7
YEAR
NET SALES
FIXED ASSETS
TURNOVER
Rs
Rs
RATIO
50
Saja.K.A
2003-04
2004-05
2005-06
2006-07
2007-08
1,63,16,381.37
1,51,25,231.49
1,94,23,836.66
1,85,38,693.38
2,15,67,735.45
7,42,554.74
6,20,406.61
5,40,723.30
8,47,665.65
8,54,428.80
22 TIMES
25 TIMES
36 TIMES
22 TIMES
25 TIMES
GRAPH: 4.6
Graph Showing Fixed Assets Turn Over Ratio from 2003
40
35
30
25
20
15
10
5
0
East
2003-04
2004-05
2005-06
2006-07
2007-08
22
25
36
22
25
INTERPRETATION
The above table indicates that from the year 2003 fixed asset turn over ratio is
showing an increasing trend and attained highest level of 36 times in 2005. The high
ratio is the sign of efficiency of fixed asset management. Another reason is SIMCO is a
labour intensive small scale unit.
Saja.K.A
Stock or Inventory Turn over ratio, measures how many times the average stock is sold
during the year. Higher inventory turn over ratio is always beneficial to the concern.
This ratio measures the effectiveness of the stock policy of the management. This ratio
indicates the relationship between cost of goods sold and average stock. This ratio is
calculated as follows.
Stock Turn over ratio = Cost of goods sold
-----------------------Average stock
Cost of goods sold = Opening stock + purchases closing stock
Average stock = Openings stock +closing stock
2
2003-04
2004-05
2005-06
2006-07
2007-08
Average Stock
Rs
Rs
Ratio
1,09,06,701.16
1,02,81,014.31
1,46,96,061.89
1,43,47,440.80
1,66,17,804.53
46,89,844.71
54,79,295.10
57,34,250.86
57,30,944.98
58,29,475.15
2.33 times
1.88 times
2.56 times
2.50 times
2.85 times
GRAPH: 4.7
Graph showing stock turn over ratio of SIMCO from 2003-08
52
Saja.K.A
3
2.5
2
1.5
1
0.5
0
East
2003-04
2004-05
2005-06
2006-07
2007-08
2.33
1.88
2.56
2.5
2.85
INTERPRETATION
The stock turn over ratio is below standard norm i.e. 8 times. It indicates that the firms
stock turned over into cash below 3 times in a year.
Table: 4.9
Debtors Turnover Ratio of SIMCO from 2003-08
53
Saja.K.A
Year
Credit sales
Average Debtors
Debtors
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
1,63,16,381.37
1,51,25,231.49
1,94,23,836.66
1,85,38,693.38
2,15,67,735.45
Rs
30,43,246.68
29,57,072.31
32,50,444.41
38,72,559.82
42,18,633.02
Turnover Ratio
5.36 times
5.11 times
5.97 times
4.78 times
5.11 times
GRAPH: 4.8
Graph showing Debtors Turnover Ratio of SIMCO from 2003-08
6
4
2
0
East
2003-04
2004-05
2005-06
2006-07
2007-08
INTERPRETATION
Debtors Turn over ratio indicates that how fast the debtors are turned over or converted
into cash. This depicts how fast the firm can collect the credit sales.
Debtors turn over ratio was highest in the year 2007-08 it was 4.78 times and in the year
2007-08 it was increased to 5.11 times
Saja.K.A
Year
2003-04
2004-05
2005-06
2006-07
2007-08
5.36 times
5.11 times
5.97 times
4.78 times
5.11 times
69 days
72 days
62 days
77 days
72 days
GRAPH: 4.9
Graph showing Average Collection Period of SIMCO from 2003-08
80
70
60
50
40
30
20
10
0
East
2003-04
2004-05
2005-06
2006-07
2007-08
69
72
62
77
72
55
Saja.K.A
INTERPRETATION
The above bar diagram clearly indicates the speed with which debts are collected.
From 2003-04 to 2007-08 it is seen that there is slight fluctuation in the average
collection period.
The average collection period is between 62 to 72 days.
The efficiency of management of receivable would be analyzed with that of management
of payables.
2003-04
2004-05
2005-06
2006-07
2007-08
Total Purchase
Average
Creditors
Rs
Creditors (Rs)
24,00,994.49
26,15,953.77
24,42,937.10
27,76,933.97
32,03,655.91
Turnover Ratio
2.73 times
2.48 times
2.92 times
2.99 times
3.09 times
65,54,924.28
64,83,206.33
71,43,407.80
83,20,541.41
99,08.548.21
GRAPH: 4.10
56
Saja.K.A
3.5
3
2.5
2
1.5
1
0.5
0
INTERPRETATION
Creditors turn over ratio indicates that how fast the firm has to
make payment for the credit purchases. A lower ratio indicates the firm is
taking full advantage allowed by creditors. Above table indicates that
creditors turn over ratio is satisfactory.
AVERAGE PAYMENT PERIOD
57
Saja.K.A
Average payment period means the credit period enjoyed by the firm in
paying creditors. In short it means creditors turn over is expressed in days or months. It is
computed by the following formula.
Average Payment =
365/360
--------------------------------------------CREDITORS TURNOVER RATIO
In months =
12
----------------------------------------------------CREDITORS TURN OVER RATIO
TABLE: 4.12
GRAPH: 4.11
58
Saja.K.A
160
140
120
100
80
60
40
20
0
INTERPRETATION
This ratio indicates the speed with which payment against credit purchases are made.
Average payment period is between 119 and 134 days.In 2007-08 average payment
Net Sales
-------------------Working Capital
59
Saja.K.A
TABLE: 4.12
WORKING CAPITAL TURNOVER RATIO OF SIMCO FROM
YEAR 2003-08
YEAR
2003-04
2004-05
2005-06
2006-07
2007-08
NET SALES
WORKING CAPITAL
WORKING CAPITAL
1,63,16,381.37
1,51,25,231.49
1,94,23,836.66
1,85,38,693.38
2,15,67,735.45
Rs
59,89,218.69
71,16,706.95
72,19,240.23
76,68,303.93
73,54,154.16
GRAPH: 4.12
WORKING CAPITAL TURN OVER RATIO FROM 2003-08
3
2.5
2
1.5
1
0.5
0
INTERPRETATION
Working Capital turnover ratio indicates the relationship between net sales and
working capital. The working capital turnover ratio in every year was below standard
norm. So the management should take necessary action to utilize the working capital
efficiently.
60
Saja.K.A
LIQUIDITY RATIO
Liquidity ratio is used to measure the liquidity position or short tem financial
position of a firm. Various ratios like current ratio, liquid ratio and absolute liquid ratio
are used to measure the liquidity position of business.
1. CURRENT RATIO
Current ratio is defined as the ratio of current assets to current liabilities .It shows
the relation ship between total current assets and total current liabilities. Current ratio
is also called working capital ratio or bankers ratio, generally current ratio of 2:1 is
considered satisfactory or ideal.
Current Assets
Current Ratio = ----------------------Current Liabilities
TABLE: 4.14
CURRENT RATIO OF SIMCO FROM 2003-2008
61
Saja.K.A
GRAPH 4:13
Year
Current Assets
Current Liabilities
Current Ratio
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
89,71,026.73
93,66,806.44
98,55,014.95
1,05,86,397.16
1,08,43,372.74
Rs
29,81,808.04
22,50,099.49
26,35,774.72
29,18,093.13
34,89,218.58
Rs
3.01:1
4.16:1
3.73:1
3.62:1
3.10:1
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2003-04
2004-05
2005-06
2006-07
2007-08
INTERPRETATION
During the years under study the current ratio is much above the standard
norm ie 2;1.The current ratio in most years shows the ratio around 4.However the rule of
2;1 should not be blindly followed while making interpretation of ratios.
62
Saja.K.A
2. LIQUID RATIO
Liquid ratio is the ratio of liquid assets current liabilities. It establishes the
relation between quick assets and current liabilities .It is the measure f instant debt
paying ability of business enterprise. It is also called Acid Test Ratio.
Liquid Assets
Liquid Ratio= -----------------------Current Liabilities
Liquid Assets = Current Assets-(Stock Prepaid Expenses)
TABLE: 4.15
LIQUID RATIO OF SIMCO FROM 2003-2008
GRAPH: 4.14
Graph showing Liquid Ratio of SIMCO YEAR 2003-04
Year
2003-04
89,71,026.73
-49,40,267.10=40,30,759.63
93,66,806,44 60,18,323.10=33,48,483.34
98,55,014.95 60,11,711.33=45,74,685.83
1,05,86,397.1660,11,711,33=45,74,685.83
1,08,43,372.74
-56,47,238.96=51,96,133.78
2004-05
2005-06
2006-07
2007-08
63
Current
Liabilities
Rs
Liquid Ratio
29,81,808.04
1.35:1
22,50,099.49
1.49:1
26,35,774.72
1.67:1
29,18,093.23
1.57:1
34,89,218.58
1.49:1
Saja.K.A
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2003-04
2004-05
2005-06
2006-07
2007-08
INTERPRETATION
Liquid Ratio is the ratio of Liquid Assets to current liabilities. It is
considered to be superior to current ratio in testing the liquidities of the firm. Standard
form of quick ratio is 1:1.Liquidity ratio above standard norm is good. Liquidity ratio
below 1:1 will not help to pay of its Current liabilities when they become due. From
2003-04 to 2007-08 Quick Ratio states that Liquid Liabilities can be easily paid off by
realizing Quick Assets without resorting to the sale of stock.
64
Saja.K.A
Year
Current
Liabilities
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
29,81,808.04
22,50,099.49
26,35,774.72
29,18,093.23
34,89,218.58
3,28,204.36
2,80,744.06
1,79,727.05
1,65,825.63
87,653.10
0.11:1
0.12:1
0.07:1
0.06:1
0.03:1
GRAPH:4.15
Graph sowing Asolute liquid ratio of SIMCO from 2003-2008
0.12
0.1
0.08
0.06
0.04
0.02
0
INTERPRETATION
Absolute Liquid Ratio establishes the relationship between Absolute Liquid Assets
and Current Liabilities. Absolute Liquid Ratio of 5:1 is considered as ideal. Above group
shows that the absolute liquid ratio in various years. In no year the firm could attain the
standard norm. It is far below the standard norm. The concern may face serious crises to
meet the liabilities.
Saja.K.A
The term solvency refers to the ability of a concern to meet its long term
obligation. The long term indebtedness of a firm includes Debenture holders, financial
institution providing medium and long term loans and other creditors selling goods on
installment basis.
DEBT EQUITY RATIO
Debt-Equity Ratio also known as External Internal equity Ratio, is calculated to
measure the relative claims of the outsiders and the owners i.e. the share holders against
the firms assets. This ratio indicates the relationship between the external equity or
outsiders funds and the internal equities or the share holders funds.
Outsiders Funds
Debt Equity Ratio= -------------------------Share holder Funds
External Equities
Debt Equity Ratio =-------------------------Internal Equities
TABLE: 4.17
DEBT EQUITY RATIO OF SIMCO YEAR2003-2008
Year
Debt
Equity
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
56,38,523.01
67,06,799.02
61,28,568.27
67,06,992.24
65,74,731.00
Rs
10,93,250.42
10,30,314.54
16,31,395.26
18,08,977.34
16,33,851.96
5.15:1
6.51:1
3.76:1
3.71:1
4.02:1
66
Saja.K.A
GRAPH: 4.16
GRAPH SHOWING DEBT EQUITY RATIO OF SIMCO YEAR 2003-2008
7
6
5
4
3
2
1
0
2003-04 2004-05 2005-06 2006-07 2007-08
INTERPRETATION
Debt Equity ratio includes the relative contribution of creditors and owners of the
business in its financing. It is an index of the degree of protection the creditors have.
Standard Debt Equity Ratio is considered to be 2:1.Both high and low Debt Equity Ratio
is not desirable to firm. From above bar diagram, it is clear that in 2004-05 debt equity
ratio was very high which very risky.But they have improved a lot and by 2006-2007
they brought the ratio near to the standard ratio i.e. 3.71:1.In the year 2007-08 Debt
Equity Ratio was increased to 4.02:1
Saja.K.A
Year
2003-04
2004-05
2005-06
2006-07
2007-08
Interest
9,33,131.78
7,91,835.18
7,57,702.03
7,24581.60
7,83,111.02
Interest
1.97 times
1.70 times
2.46 times
1.72 times
1.88 times
whether the concern is able to pay the interest and tax. It shows whether the company is
able to pay the interest and tax. It shows whether the company is able to pay the interest
and tax. It shows whether the company is able to pay the interest out of the profit.
Earning before interest and tax
Interest Coverage Ratio = ----------------------------------------Interest
TABLE: 4.18
INTEREST COVERAGE RATIO OF SIMCO YEAR 2003-2008
Interest Coverage Ratio is also known as Debt Service Ratio.
This ratio relates fixed interest charges to the operating profits or earning before interest
and tax. It shows whether the company is able to pay the interest and tax. It shows
whether the company is able to pay the interest out of their profit.
INTEREST COVERAGE RATIO = Earning before Interest and Tax
----------------------------------------Interest
TABLE: 4.18
INTEREST COVERAGE RATIO OF SIMCO YEAR 2003-2008
GRAPH: 4.17
GRAPH SHOWING INTEREST COVERAGE RATIO OF SIMCO FROM 2003-2008
68
Saja.K.A
2.5
2
1.5
1
0.5
0
INTERPRETATION
Interest Coverage Ratio shows how many times the interest charges are covered
by EBIT .It indicates the ability of the company in the payment of interest to creditors.
Standard Ratio is 6 to 7 times. The above bar diagram clearly shows that the interest
coverage ratio in 5 years i.e., from 2003-04 to 2007-08 is very low which clearly
indicates exercise use of debt and the inability to offer assured payment of interest to
creditors.
BAR DIAGRAM SHOWING THE RELATION SHIP BETWEEN CURRENT ASSETS
AND CURRENT LIABILITIES.
TABLE: 4.19
Table showing Current Assets and Current Liabilities from 2003-08
Year
Current Assets
Current Liabilities
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
89,71,026.73
93,66,806.44
98,55,014.95
10,58,6397.16
10,84,3372.74
Rs
29,81,808.04
22,50,099.49
26,35,774.72
29,18,093.23
34,89,218.58
69
Saja.K.A
GRAPH: 4.18
GRAPH SHOWING CURRENT ASSETS AND CURRENT LIABILITIES FROM
2003-2008
12000000
10000000
8000000
6000000
4000000
2000000
0
2006-07 2007-08
Current Assets
Current Liabilities
2003-04
2004-05
2005-06
2006-07
2007-08
Rs
56,38,523.01
67,06,799.02
61,28,568.27
67,06,992.24
65,74,731.00
Rs
10,93,250.42
10,30,314.54
16,31,395.26
18,08,977.34
16,33,851.96
GRAPH: 4.19
GRAPH SHOWING DEBT AND EQUITY FROM 2007-08
70
Saja.K.A
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
20032004
CHAPTER 5
FINDINGS SUGGESTIONS AND CONCLUSIONS
FINDINGS
Shoranur is the sale centre of Agricultural and Horticultural implements. There are a
number of firms engaged in the production of agricultural and horticultural implements.
Among them, SIMCO stands first due to its high quality products.
1. When compared with other firms SIMCO is the only concern which get regular
tenders for their products from Tamilnadu
71
Saja.K.A
2. Products of SIMCO are sold not only with in Kerala but ALSO outside the state.
In short, it has its market in all states of South India including Orissa.
3. Workers of SIMCO are very efficient and majority of them are able to produce
more than the standard fixed. But they are facing the problem of hiring skilled
labors. Hence, they hire unskilled labours and provide sufficient training. As such
employees are taking time to get acquainted with the methods of production and
machines used.
4. The company is purchasing raw materials at very high prices which in turn
increases the cost of goods and hence decreases the profit .
5. Net Profit position of the business is not at all satisfactory. The operating
expenses of the business are very high.
6. The operating profit ratio is not satisfactory.
7. In the year 2006-07 Return On Investment is below the standard norm.
8. Inventory management of the firm is not satisfactory
9. The collection of debtors is not effective .In 2006-07 the firm has taken 77 days to
collect the credit sales.
10. Creditors turnover ratio of the firm is satisfactory.
11. On analyzing working capital turn over ratio, it is understood that the
management of working capital is not efficient.
12. During all year under study, current ratio shows that is much above the standard
norm.
13. A major portion of the current asset is blocked in trade.
14. The liquid ratio in all years under study above standard norm.
15. On comparing the current ratio and liquid ratio, it is understood that the current
ratio is much higher than liquid ratio position. It is because of excessive
investments in stock in trade.
16. The absolute liquidity position of the firm is in pathetic condition.
17. Debt Equity Ratio of the firm comes near to standard by 2006-07, which indicates
high degree of protection to creditors. The firm makes use of loan funds to
purchase fixed assets by paying interest.
72
Saja.K.A
SUGGESTIONS
1. The over investments in stock is a notable defect. This can be over come by
taking necessary steps for improving the sales.
2. The cash position of the firm is not at all satisfactory. Sufficient cash balance
should be kept in the firm so as to keep the available favorable position.
3. Necessary steps have to be taken to make the working capital management more
effective.
4. The profitability of any business depends to a very depends to a very extent on the
capacity of it to enhance sales. So new marketing techniques have to be
introduced.
5. Profit earned by the firm shows both increasing and decreasing trend. Due to this
fluctuation, firm is suggested to make use of owned funds rather than outsiders
fund.
6. Unnecessary funds locked up in inventory and debtors should be invested in some
profitable project which in turn helps in the expansion of the firm.
7. Some of the item included in the product line of SIMCO is out dated. Therefore
new models or new versions of such items should be introduced and outdated
items should be excluded from the product line.
8. Firm is suggested to give more attention to garden tools which contribute a
sizeable portion of the profit to the firm.
9. Since the firm is facing the problem of labour absenteeism, it is suggested to take
necessary measures to reduce the same and also provide additional incentives
which in turn motivate them to work more efficiently and effectively.
10. Advertisement programme should be improved for the increase in sales. SIMCO
is facing more competition from other units, therefore the strength and weakness
of the competitors should be studied and new strategies should be prepared
accordingly.
11. Firm should take measures to purchase raw materials at lower prices which
directly affects profit of the firm.
73
Saja.K.A
CONCLUSION
The material for writing this project report was obtained
during the actual course of the allowed time period undergone at SIMCO,
Shoranur.The three weeks project helped me in getting a rare chance to familiarize
with the functioning of manufacturing organization .This project report enabled to
expose certain valuable conclusions pertaining to the short term and long term
liquidity position of the firm and its profitability. Though the firm has reached near
declining stage, but due to the importance of simple implements I agricultural sector,
it occupies the good position in small scale industries.
In short, this project report has given me an opportunity
to list and substantiate theoretical knowledge, which in turn facilitated its own
argumentation.
74
Saja.K.A
BIBLIOGRAPHY
BOOKS
1. R.K
Sharma
and
Sasi
.Guptha
MANAGEMENT
Kulkarni
FINANCIAL
MANAGEMENT
Himalaya
75
Saja.K.A
REPORTS
1. Annual Reports of South India Metal Company 2003-08
2. Financial Statements of South India Metal Company fom2003-08
76
Saja.K.A
ANNEXURE
2003-04
12,82,677.75
2004-05
17,62,722.68
2005-06
12,89,552.21
Purchase
65,54,924.28
64,83,206.33
71,43,407.80
Expenses on Purchases
Materials available
3,15,609.70
81,53,211.73
1,78,107.30
84,24,036.31
3,17,821.25
87,50,781.26
Raw Material
Material Cost
17,62,722.68
63,90,489.05
12,89,552.21
71,34,484.10
11,20,129.28
76,30,651.98
38,83,842.23
40,19,390.57
40,06,189.15
18,59,413.71
1,21,33,744.99
16,04,614.55
1,27,58,489.2
24,52,206.11
1,40,89,047.24
16,04,614.55
1,18,10,105.95
1,05,29,230.44
24,52,206.11
1,03,06,283.1
1,18,10,105.95
Less:Closing Stock of
Prime Cost
77
Saja.K.A
Manufacturing Expenses
Cost of Production
6,60,186.10
6,12,883.32
1,11,89,316.54
6,80953.20
1,09,87,236.3
1,24,22,989.27
Goods
12,31,142.62
---
15,13,758.00
20,37,192.62
1,24,20,454.16
--1,25,00,994.3
1,66,80,161.89
15,13,758.00
19,84,100.00
1,09,09,701.16
22,19,980.00
1,02,81,014.3
1,46,061.89
22,19,980.00
1
COST STATEMENT OF SIMCO FOR THE YEAR 2006-2008
Particulars
Opening Stock of Raw Materials
2006-07
11,20,129.28
2007-08
14,22,195.66
Purchase
83,20,541.71
99,08,548.21
Expenses on Purchases
Materials available
4,45,834.13
98,86,504.82
3,51,414.00
1,16,82,157.87
Raw Material
Material Cost
14,22,195.66
84,64,309.16
16,67,019.10
1,00,15,138.77
39,85,028.66
43,57,258.34
22,78,941.29
30,41,134.78
----1,47,28,279.11
2,05,384.00
1,76,18,915.89
30,41,134.78
1,16,87,144.33
25,67,212.02
1,76,18,915.89
Manufacturing Expenses
Cost of Production
6,62,621.07
1,23,49,765.50
7,63,938.66
1,58,15,642.53
Less:Closing Stock of
78
Saja.K.A
19,84,100.00
14,78,095.00
98,457.00
13,93,213.40
1,58,25,535.80
6,43,134.00
1,79,36,871.53
14,78,095.00
1,43,47,440.80
13,19,067.00
1,66,17,804.53
----
PROFIT AND LOSS ACCOUNT OF SIMCO FOR THE YEAR ENDED 31st
MARCH 2003 2004
Year 31 / 03 / 2003
Particulars
Year ended 31 / 03 /
2004
INCOME
16342713.03
Sales
1515819.13
2633163.00
16316381.37
Less:- returns..
33387.64
15125231.49
802766.00
15513615.37
608528
14516703.49
10906701.16
4606914.21
10281014.31
4235689.18
10362.50
4617276.71
647578.58
1360556.08
Gross profit
Add:- other income
EXPENDITURE
Provision to office staff
768775.69
2776920.35
1840356.36
933131.78
907224.58
170580.72
736643.86
Less:- interest
22731.50
4258420.68
633773.50
1365545.23
914387.98
2913706.71
1344713.97
791835.18
552878.99
139314.26
413564.53
79
Saja.K.A
Depreciation
Profit transferred to purayannur
industries
PROFIT AND LOSS ACCOUNT OF SIMCO FOR THE YEAR ENDED 31st
MARCH 2005 2006
80
Saja.K.A
Year 31 / 03 / 2005
Particulars
Year ended 31 / 03 /
2006
INCOME
19455006.66
Sales
18570636.53
31170.00
19423836.66
Less:- returns
31943.15
18538693.38
14696001.89
4727774.77
164697.93
14347440.80
4191252.58
103788.54
4295041.12
EXPENDITURE
579290
646051.52
1538041.94
1504139.88
908424.05
899798.85
1245051.17
724581.60
Less:- interest
1109014.68
128221.31
980793.37
520469.57
97573.59
422895.98
industries
81
Saja.K.A
PROFIT AND LOSS ACCOUNT OF SIMCO FOR THE YEAR ENDED 31st
MARCH 2007
Particulars
INCOME
Sales
21665195.91
Less:- returns
97460.46
21567735.45
Less:- cost of goods sold
16617804.53
4949930.92
Gross profit
Add:- other income
54571.39
5004502.31
EXPENDITURE
Provision to office staff
686733.32
1120786.74
1127355.90
3534875.96
1469626.35
783111.02
Less:- interest
Profit after interest
686515.33
Depreciation
134238.23
552277.10
Saja.K.A
PARTICULAR
S
2003-2004
Amount
Rs
2004-2005
%
Amount
Rs
2005-2006
%
2006-2007
2007-08
Amount
Rs
Amount RS
Amount
Rs
1)LIABILITI
ES
1)Proprietors
Fund
a) Purayannur
Industries
10,93,250.42 11.25
10,30,314.54
10.32
16,31,395.26
15.69
18,08,977.34
15.82
16,33,851.96
13.97
16,85,068.61 17.35
27,49,223.02
27.53
23,09,726.27
22.22
32,94,165.74
28.81
33,03,299.00
28..24
39,53,454.40 40.70
39,57,576.00
39.63
38,18,842.00
36.74
34,12,826.50
29.85
32,71,432.00
27.97
29,81,808.04 30.70
22,50,099.49
22.52
26,35,774.72
25.35
29,18,093.23
25.52
34,89,218.58
29.82
97,13,581.47 100
99,87,213.05
100
1,03,95,738.2
100
1,14,34,062.8
100
1,16,97,801.5
100
7,42,554.74
7.64
6,20,406.61
6.21
5,40,723.30
5.20
8,47,665.65
7.41
8,54,428.80
7.30
Inventories
49, 40,267.1050.86
60,18,323.1
60.26
54,50,178.6
52.43
60,11,711.3
52.58
56,47,238.9 6
48.28
Sundry Debtors
32,65,810.21 33.62
26,48,334.42
26.52
38,52,554.41
37.06
38,92,565.22
34.04
45,44,700.82
38.85
3,28,204.36
3.38
2,80,744.06
2.81
1,79,727.05
1.73
1,65,825,63
1.45
87,653.10
0.75
Loans
&Advance
4,36,745.06
4.50
4,19,40486
4.20
3,72,554.86
3.58
5,16,294.98
4.52
5,63,779.86
4.82
Total Assets
97,13,581.47 100
99,87,21 3.05
100
1,03,95,738.25
1,14,34,062.81
100
1,16,97,801.54
100
2)Loan Funds
Secured
Unsecured
3)Current
Liabilities
TOTAL
LIABILITIES
II.ASSETS
1.Fixed Assets
2.Current
Assets
Loans
&Advances
83
100
Saja.K.A