MAHESH EDIBLE OIL IND. LTD.

“FINANCIAL STATEMENT
ANALYSIS”

SUBMITTED TO: SUBMITTED BY :

Manoj Manchanda
MBA (Regular)
Batch 2009-11
 INTRODUCTION

Mahesh Edible Oil Industry Ltd. deals in ‘Saloni’ Brand Kachhi

Ghani Mustard Oil & ‘Stayfit’ Brand Soyabeen oil.

Kachhi Ghani Mustard Oil Industry is basically a cottage industry.

Major market share has been captured by these cottage industries
spread all over the country. With the passage of time and due to
growing awareness for quality, people have started buying branded
mustard oil & soyabeen oil.
 
MISSION
Our mission is to make ourselves a market leader, in offering qualitative
products to the worldwide clients. In addition, we aim to offer only best
services on the basis of ethical, ecological, and economical factors.

VISION
Our vision is to be a world-class edible oil manufacturing group.
Leveraging the following points, we are highly committed to realize our
vision:

* Providing unparalleled personal service

* Tailoring quality products to fulfill our customers' needs

* Treating customers and colleagues with respect

 product

SALONI KACHI GHANI STAYFIT SOYABEEN

MUSTARD OIL OIL

PRODUCT OF MAHESH EDIBLE OIL IND.LTD.

 “FINANCIAL STATEMENT
ANALYSIS”

“ Financial Statements Analysis is a process of evaluating

the relationship between component parts of a financial
statement to obtain a better understanding of a firm’s
position and performance.”
 TECHNIQUES OF THE FINANCIAL
STATEMENT ANALYSIS

1.Ratio Analysis 3.Funds Flow

Analysis

4.Common-size
2.Trend statements
Analysis analysis
 Ratio Analysis
 Looks at the pairing of financial data in order to get a picture of the
performance of the organisation
 Ratios allow a business to identify aspects of their performance to
help decision making
 Ratios allow a business to identify aspects of their performance to
help decision making
 Classification of Ratio

Structural Functional

•Balance sheet ratio • Liquidity ratio

•Activity or efficiency
•Profit & loss account ratio
ratio •Profitability ratio
•Capital structure or
•Combined ratio leverage ratio
•Investment ratio
 Liquidity ratios
Current Ratio = Current Assets
Current Liabilities

Acid Test Ratio(Quick ratio) = Current Assets – (Stock + Prepaid expenses)

Current Liabilities

Super Quick Ratio = Cash + Bank + Marketable Securities

Current Liabilities

NET WORKING CAPITAL RATIO = NET WORKING CAPITAL

NET ASSETS
 
 Data analysis
Liquidity 2006-07 2006-07 2007-08 2008-09 2009-10
ratios
Current Ratio 1.77 1.74 1.70 1.41 1.49

Acid Test Ratio 0.98 0.69 1.04 0.85 1.06

Super Quick 0.23 0.12 0.037 0.115 0.08

Ratio
NET WORKING
CAPITAL RATIO 0.28 0.32 0.29 0.20 0.24
 Conclusion

 Current ratio is a test of quantity not quality. It does

not measure the quality of assets.

 Proportion of cash & marketable securities over the

current liabilities is greater than its satisfactory ratio
(0.5)

 Proportion of net working capital over the current

liabilities is positive. It shows that company having
good liquidity & is in sound condition
Financial Statements Include

• Balance Sheet
• Income Statement
• Cashflow Statement
 BALANCE SHEET
• Assets: (Rs.in lacs)

– Current Assets: 7563.97

– Non-Current Assets: 2364.04
• Total Assets 9928.01
• Liabilities:
– Current Liabilities: 5082.65
– LT Debt & Other LT Liab.: 1445.64
– Equity: 3399.72
Total Liab. and Equity 9828.01
 Income Statement

Sales 51944.00
Costs of Goods Sold -47341.06
Gross Profit 4602.94
Cash operating expense -3179.57
EBIT 1423.37
Interest -680.00
EBT 742.87
Other non operating income +7.00
749.87
Income Taxes -251.38
Net Income (EAT) 498.49
 SWOT ANALYSIS

Strength
 The company has total control over production.

 The company is having well-connected infrastructure facilities.

 The company has good Industrial Relations with the suppliers, customers,
stockiest and the government too.

 Low priced products.

 Good capacity of storage

Weakness
 Low advertising budget in comparison to its competitors.

 Huge expenses incurred on machinery and plant.

Opportunities
 Higher rise in the demands of edible oil.

 Opportunities in new markets.

 Great varieties in the edible oil.

Threats
Heavy competition from the competitors
Thank you for your time....