Professional Documents
Culture Documents
PROJECT REPORT
ON
RATIO ANALYSIS OF
PARADIP PORT TRUST,
ORISSA
Submitted to : Mr.
A.K.Sahu
Deputy
Manager (MS)
(PARADIP PORT TRUST)
Mr.
S.K.Sahu
Deputy
F.A &C.A.O
(PARADIP PORT TRUST)
CONTENTS
1. Introduction
2. Industry profile
3. Ratio Analysis
• Nature
• Classification of ratio
• Accounting Ratio
2
• Profit and loss account for the year ended 31st march
2009
• Audit report
• Notes on account for the year 2008-09
4. Conclusion
5. Bibliography
6. Website
DECLARATION
3
Avitanshu Ranjan Rath
Regd no-0906266018
1st year MBA
3rd Trimester
ACKNOWLEDGEMENT
I express my gratitude for helping me and
providing necessary information during various
stages of project thereby making it successful.
It is a great privilege to express deep sence
of gratitude and debtness to the esteemed
guides of Sri A.K.Sahu,Deputy Manager(MS)
and Sri S.K.Sahu(Dy.F.A & CAO)for their
sincere guidance and inspiration in this project.
And overall I am very much thankful to Sri
D.Sai Kumar (Faculty of finance) and my
parent without whose cooperation it was not
possible.
4
Last but not the least I express my sincere
thanks to my friends who have extended their
help in completion of this project report.
Once again thanking you all.
Avitanhu Ranjan
Rath
Regd.no-
0906266018
CERTIFICATE
5
Place: Paradip
Mr.S.K.Sahu
Date: Dy.F.A & CAO
Pa
radip Port Trust
6
Paradip port trust (PPT) is one of the major ports of India and is the main out- let and
in-let of the sea borne trade of the eastern part of the country spread over states such
as Orissa. Andhra Pradesh, Bihar and West Bengal. The natural resources and
industrial products of this wide spread hinterland are immense and the value of the
ore trade of the country passing through port of Paradip is considerably higher than
many other major ports of India.
The foundation stone of the port laid by Pandit Jawaharlal Nehru on the 3rd
January, 1962. The construction works commenced from the 19th November. 1962
and dredging operations started from the 15th March, 1964 by Yugoslav Dredger
“Vlasina”. During this period, this port was under control of the Government of Orissa.
7
Government of India took over the management of the port from the State
Government on 1st June, 1965. The construction of the Iron Ore Berth was completed
and INS “Investigator” had the privilege of maiden berthing in the port on the 12th
March, 1966. The port was declared open by Mr. Peter Stambolic, Prime
Minister of Yugoslavia on the same day.
Government of India declared Paradip as the eighth major port of India on 18th April,
1966 making it the first major port in the East Coast commissioned in independent
India. The port was opened to traffic for iron ore in 1966 but after two decades, the
cargo profile has undergone a complete transformation. It consists of not only iron ore,
but also thermal coal, coking coal, chrome ore, manganese ore, semi processed ore
cargo like chrome, Ferro chrome, Ferro manganese, Limestone, hard coke, ingots and
moulds, billet and steel materials, dead burnt mangesite, scrap, fertilizer, food rain,
reefer cargo and fertilizer raw materials e. g. phosphoric acid, ammonia, sulpher, rock
phosphate. The port started handling containers and transshipment of petroleum
products in 1991. The varied nature of cargo handled bears testimony to the efficient
and personalized services of this deep water port.
In the year 1992, mechanized unloading of thermal coal through wagon tripper
commenced. In the very next year working agreements were signed with S. E.
Railways. The port was started exporting POL in the year 1994, becomes a port of the
PORTNET under NICNET. Sea born traffic cross 10 million tonnes during 1994—95.
LOCATION
The port is situated on the east coast of India at about 7 kms south of the
junction of river Mahanadi of Bay of Bengal. It is a distance of 210 nautical miles south
of Calcutta and 260 nautical miles north of Vishakhapatnam.
8
A PROFILE OF PARADIP PORT TRUST
The foundation stone of the port laid by Pandit Jawaharlal Nehru on the 3rd
January, 1962. The construction works started from the 19th November. 1962 and
dredging operations started from the 15th March, 1964 by Yugoslav Dredger “Vlasina”.
During this period. This port was under control of the Government of Orissa.
9
Government of India took over the management of the port from the State
Government on 1st June, 1965. The construction of the Iron Ore Berth was completed
and INS “Investigator” had the privilege of maiden berthing in the port on the 12th
March, 1966. The port was declared open by Mr. Peter Stambolic, Prime Minister of
Yugoslavia on the same day.
Government of India declared Paradip as the eighth major port of India on 18th
April, 1966 making it the first major port in the East Coast commissioned in
independent India. The port was opened to traffic for iron ore in 1966 but after two
decades, the cargo profile has undergone a complete transformation. It consists of not
only iron ore, but also thermal coal, coking coal, chrome ore, manganese ore, semi
processed ore cargo like chrome, Ferro chrome, Ferro manganese, Limestone, hard
coke, ingots and moulds, billet and steel materials, dead burnt mangesite, scrap,
fertilizer, food rain, reefer cargo and fertilizer raw materials e. g. phosphoric acid,
ammonia, sulpher, rock phosphate. The port started handling containers and
transshipment of petroleum products in 1991. The varied nature of cargo handled
bears testimony to the efficient and personalized services of this deep water port.
In the year 1992, mechanized unloading of thermal coal through wagon tripper
commenced. In the very next year working agreements were signed with S. E.
Railways. The port was started exporting POL in the year 1994, becomes a port of the
PORTNET under NICNET. Sea born traffic cross 10 million tones during 1994—95.
LOCATION
The port is situated on the east coast of India at about 7 kms south of the
junction of river Mahanadi of Bay of Bengal. It is a distance of 210 nautical miles south
of Calcutta and 260 nautical miles north of Vishakhapatnam.
COMPETITORS
In INDIA there are some other major ports, which helps to develop our nation’s
economy. Now INDIA is ranked 17th position in the world shipping industry and we try
to improve our position in international market..So our major ports play a very vital
role to move INDIA to that position. we are discussing about some major ports in INDIA
as follows:
10
modern of Mumbai’s Dock was constructed in 1904-1914.To handle petroleum product
and liquid chemicals, a jetty was constructed at Pir Pua in 1923 and a modern jetty
was capable of handle tankers of 47000 displacement ton was commissioned
December,1996.
Mumbai port has long been principal Get way to India and played a pivotal role in the
development of national economy, trade and commerce and prosperity of Mumbai city
in particular. The port of Mumbai has been every responsive top the changing need of
maritime trade. The port is now to set to take new chalanges.The root to success is
paved with adoption of new technology and provision of quality service. With a
mission of quality & cost effective service, Mumbai port embarked upon major
restricting & reforms. looking ahead, the port redicets itself to provide quality service
to costumers In all spheres of operation.
Future plans:
Mumbai Port Trust adopting a two pronged approach of restructuring and
reforms in all area of port modernization technology in area of port operation.
In immediate future, the port has decided to install state of the art Telecommunication
system. Other major plan includes:
11
are chemical,Pharmaceuticals,Fertilizers including Phosphoric acid,Potash,etc.and
cocking coal.
Future plans:
• Clean the port.
• Interact with state government to permit export of rice product in other state
through Chennai port.
Future plans:
The Port has following future plans:
12
• Strategic crude storage facility.
Future plans:
The following are the future plans of Kolkata port:
PORT ESTATE:
The Port estate extends over a sprawling area. Some portion of the Port estates has
been leased out for construction of office/residential buildings of concerns directly
connected with activities of the Port. The Port Trust has also a scheme of providing
ready built office/residential accommodation on 15 years Advance Rental Deposit
Scheme. Details of the scheme could be had from the Estate Office of the Port.
13
Port Township: The Port Township has a population of about 1,00,000. The Port
Trust staff colonies are located in Madhuban, ‘V’ Point, Sector-21 and Atharbanki
areas. The Port Trust have also provided required accommodation for office/residence
purposes to various users of the Port in the staff colonies.
Water Supply: Adequate water is supplied to the Port Township from the extension
of the Atharbanki Canal. The Port has the facility for supplying filtered water up to 2.5
million gallons a day.
Hospital: The Port Trust has a modern 62-beded hospital which has adequate
number of qualified doctors and specialists for treatment of Port Trust employees and
Cargo Handling Workers. The hospital is also used by others based at Paradip Port.
Besides this, dispensaries at Atharbanki and Sector-21 and a First-aid Centre inside
the Cargo Berth Area are also run by Paradip Port Trust. There is also a 10-beded
hospital run by the Government of Orissa.
Post Office: There are four Post Offices in the Port i.e. the main Post Office at Sector-
21, Madhuban and Atharbanki areas. The main Post Office has public telephone call
facilities.
HARBOUR
The port Paradip has an artificial lagoon type harbour protected by two rubble mound
“Breakwaters” and approached by the dredged Channel. The North Break Water is 538
mtrs. Long on the Northeastern side of the Port and the South Break-Water is 1217
mtrs. Long on the South-eastern side. The position of the channels inside the harbour
is as under :
14
Dist. Between Dolphin to Dolphins 320 mtrs.
Cargo Berths:
South Quay
Western Quay
15
Designed/actual Draught 13.00 mtrs.
Fertilizer Berth
At present, Paradip is the most important centre in the state for marine fishing.
Now about 300 mechanized boats each of 10m length and 50 trawlers each of 13m
length are operating here. An integrated Fishery Harbour for 370 mechanized boats of
10m length, 80 trawlers of 13m., 15 trawlers of 15m. length and 50 deep sea trawlers
of 23m. length has been developed for the purpose.
REPAIRING FACILITIES:
The Port has a 500 Ton slip-way along with workshop for repair and maintenance
of Port crafts and barges. A Wet Basin for Port crafts is available close to the Slipway.
There is a well equipped Central Workshop for repair and maintenance of Port
equipment. This workshop can undertake repair jobs for ships, in case of need.
COMMUNICATIONS:
The Port is connected with Broad-gauge Railway system of the South Eastern
Railway and is also served by National Highway No.5A. The port is a part of the
PORTNET-a Closed user Group (CUG) under the NICNET-provided by the National
Informatics Centre (NIC). The PORTNET facility provides E-mail facility between the
ports. Ministry and the Indian Ports Association (IPA). Gateway facility with
international networks is also available through NIC and BSNL.
The computerization of the entire port operation and documentation has been taken
up as the first stage in EDI and will be fully operational during 1999-2000. Port users
can have terminal facilities to this port operation system through modem.
16
PORT RAILWAYS:
The Port has its own Railway system. The route length is 6.8 Kms and track
length is 55 Kms. At present, there are 7 nos. of Locomotives as indicated below:
ADMINISTRATION:
The Port of Paradip, a body corporate under the Major Port Trusts Act, is
administered by a Board of Trustees set up by the Government of India and comprises
the Chairman appointed by Government of India, who also presides over the Board of
Trustees and Trustees nominated by Government of India from various users of the
Port such as Shippers, Ship owners, Government Departments concerned and also
labour. The day to day administration is carried out under general supervision and
control of the Chairman, assisted by the Deputy Chairman and various departmental
heads.
DEVELOPMENT PLANS:
17
1. Deepening of channel
3. Connectivity project
ENVIRONMENT:
Since the super cyclone in 1999 more than Eight lakhs plant have already been
planted and developed successfully. Besides this various gardens,parks,nurseries have
also been developed and maintained. There is a proposal to plant more than 60,000
plants at this port by the next monsoon..
WELFARE MEASURES :
During the year an amount of Rs. 24,05,035/- ( Rupees twenty four lakhs five
thousand thirty five ) only has been sanctioned from the Employees Welfare Fund
towards providing necessary financial assistance fro medical treatment of port
employees, their family members and scholarship to the children of Port Trust
employees for pursuing higher studies. Besides this, under group personal accidents
policy scheme, the death clame of port employee was settled and an amount of
Rs.10,00,000/-(Rupees ten lakhs)only has been paid through Paradip Port Trust
towards their insurance coverage.
Construction of Auditorium:
To met the needs of Port Township on a long time measure, Port Trust is
constructing a modern auditorium to accommodate 1,500 to 2,000 viewers at a time
at an estimated cost of Rs.10.00 crores. The facilities provided in that auditorium are
advanced techno-multi-plex air conditioning system, good acoustics with higher
fidelity, latest IT software along with provision of large screen display/overhead
projection, advanced systems for public address, fire exit, electrical installations,
decorative lighting arrangements etc.,
As port expanding its capacity and also the traffic is booming up, Port Trust is
constructing a Seamen Farer’s Club to the benefit of the seamen calling at Paradip
18
Port at and estimated cost of more that Rs.2.00 crores. The facilities provided in the
club are swimming pool, multi-gym, table tennis room, restaurant , shopping centre
etc.,
Paradip Port Trust children Athletic team participated in all India Major Ports
Children Athletic Meet at Visakhapatnam from 04/02/2009 to 06/02/2009. and
achieved .09Gold, 19 silver and 25 Bronze.
Paradip Port Trust Beach Volleyball team participated in the All India Major Port
Beach Volleyball Tournament held at New Mangalore port from 04/03/2009 to
06/03/2009. Paradip Port Team secured 3rd place.
Paradip port Trust Table Tennis team participated in the all India major ports
table tennis tournament held at Kandal Port and secured 3rd place in veteran group.
19
IMPORTS
A quantity of 198.84 lakh tones of import traffic was handled during the year 2007-08
and 168.38lakh tones in previous year 2008-09This represents a growth of 18.09 % in
traffic over the previous year.
EXPORT
An all time record export traffic of 265.22 lakh tones was handled during 2008-09 and
255.22 lakh tones in the year 2007-08. The variation in two years is 3.67%.
20
Commodity 2008-09 2007-08 Variation
in %
21
FINANCIAL PERFORMANCE OF PARADIP PORT TRUST
Need to measure financial performance:
It is a process to find the strength and weakness of organization by properly
establishing relationship between the items Of the balance sheet and profit and loss
account. Financial analysis can be undertaken by the management of the organization
or by the parties out side the firmviz.owners, creditors, investors and others. The
nature of analysis will differ depending on the purpose of analysis.
• Trade creditors are interested in firm’s ability to meet their claimes over a very
short period of time. Their analysis will therefore confined to the evaluation of
the firm’s liquidity position.
• Suppliers of long term debt, on the other hand concern with the firm’s long
term solvency and survival. They analyse the firms profitability overtime, its
ability to generate cash to be able to pay interest repay principal and the
relationship between various source of funds. Long term creditors do analyse
the historical financial statements, but they place more emphasis firms
projected, or Performa financial statements, to make analysis about its future
solvency and profitability.
• Investors who have invested their money in the firm’s share, are more concern
about the firm’s earnings. They restore more confidence in those firms that
show steady growth in earnings. As such they concentrate on the analysis of the
firm’s present and future profitability. They are also interested in the firm’s
financial structure to the extent it influences in the firms financial structure to
the extent it influences the firms earning ability and risk.
22
• Management of the firm would be interested in every aspect of the financial
analysis. It is their overall responsibility and efficiently and the firm’s financial
condition is sound.
OBJECTIVE OF STUDY:
Find out the growth of the port from last two years.
Find out the specific contribution of Paradip Port Trust o the country.
SCOPE OF STUDY:
Source of information Primary information
Secondary information
The study is conducted on the micro level with specific reference to performance of Paradip
Port Trust study is best on last two years data.
METODOLOGY:
This is basically theoretically study ratio analysis.
RATIO ANALYSIS:
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the quotient
of two mathematical expressions and as the relationship between two or more things. In
financial analysis, a ratio is used as a benchmark for evaluating the financial position and
performance of the firm. The absolute accounting figures reported in the finical statements do
23
not provide a meaningful understanding of performance and finical position of the firm. An
accounting figure conveys meaning when it is related to some other relevant information. For
example, a Rs 5 cores net profit may look impressive but the firm’s performance can be said
good or bad only when the profit figure is related to the firm’s investment. The relationship
between two accounting figures, expressed mathematically is known as financial ratio. Ratios
help to summarize large quantity of data and to make qualitative judgment about the firm’s
performance.
NATURE:
It is a technique of interpreting financial results. It has following steps-
1. Selection of the relevant data from the financial statement depending upon the object of
analysis.
4. Interpretation
CLASSIFICATION OF RATIO
The use of ratio analysis is not confined to the financial managers only. There are other
parties, which are interested in these ratios for different other purposes. Different ratios are
calculated for different purposes depending on their needs.
24
(A) (B) (C)
This ratio is based on balance sheet figures. The ratio deals with the relation sheep between
two Balance sheet items, these ratios are:
• Proprietary Ratio
This ratio is based on Profit & Loss Account Ratio. This ratio can also be termed Income/
Revenue Statement Ratio. This ratio deals with the relationship between two Profit & Loss
Account items. The examples of these ratios are: -
• Operating Ratio
• Expenses Ratio
25
• Net Profit Ratio
This ratio is based on both the statement that is Balance sheet and Profit & Loss Account. The
examples of mixed ratios are:
• Turnover of Debtors
Ratio may be classified from the part of users. Thus we can have Ratio
Analysis from:
26
4. Utility of employees.
5. Utility to Government
.
LIMITATION:
The subject of ratio analysis is free from limitation. Because, it is an extract of financial
accounting reports it carries all the limitation that present in financial accounting system.
ASSETS
27
LIBILITY
PERFORMANCE INDICATORS
(ACCOUNTING RATIO)
( Figures in Crores )
A. OPERATING RATIO
28
Ratio (%) 362.39 359.23
LIQUIDITY RATIO
Financial ratio in these categories measures the company’s capacity to pay in its debt as they
come due.
A) Current ratio
Defination: The ratio between current assets and current liabilities, another way
of expressing liquidity.
CURRENT RATIO
29
100
80
60
40
20
0
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation:
Higher the current ratio, higher is the ability of the business to pay its current
obligation. In these years 2008-09 has higher ability than before.
(Here the quick assets represent sundry debtors, accrud interest due to the port on
investment, cash in saving bank and current account in bank and cash in hand)
QUICK RATIO
30
40
35
30
25
20
Quick Test Ratio
15
10
5
0
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation
Usually a high quick test ratio is an indication that a firm is liquid and has ability to meet
its current or liquid liability in time and on other hand a low liquid ratio represents that the
firm liquid position is not good.
2. MOVEMENT/EFFICIENCY/ACTIVITY RATIO
Activity ratios are employed to evaluate the efficiency with which the firm manage
and utilized its assets. These ratios are called turn over ratio, because they indicate
the speed with which the assets being converted or turned over into sales.
31
2005-06 2006-07 2007-08 2008-09
0.37 times 0.42 times 0.43 times 0.43 times
0.44
0.42
0.4
0.36
0.34
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation
Higher is the ratio, better is the performance, on the other hand a low ratio indicate
that the fixed assets are not being utilized.
32
0.25
0.2
0.15
Return on total
0.1 investment
0.05
0
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation
ROI shows the amount of income tied up in assets. Year to year trend may be indicator
but watch out but changes in the total assets figure as we depreciated your assets.
4. PROFITABILITY RATIO
The ratio in the section measures the ability of the business to make a profit.
Definition: It shows how much profit comes from the every dollar of sales.
33
Net Profit Margin=Net profit/total revenue
22.5
22
21.5
20.5
20
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation
Comparing to the other business in the same industries to see if your business is
operating as a profitably as it should be look at the trend from month to month. Is it
staying same or improving of deteriorating ?
5. OPERATING RATIO:
Definition:
This ratio is computed by dividing cost of goods sold plus management and general and
administration expenses by total revenue.
34
OPERATING RATIO=Cost of good sold+ Operating expenses/Total revenue
52
51
50
49
48 Operating ratio
47
46
45
2005-06 2006-07 2007-08 2008-09
Interpretation
It indicate the percentage of the net revenue that is consumed by operating cost
obviously higher it would have a small margin to cover and revenue operating ratio is
considered to be yardstick of operating, but it should cautiously.
35
2005-06 2006-07 2007-08 2008-09
48.92 52.64 50.63 53.01
54
53
52
51
50
Operating Profit Ratio
49
48
47
46
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation
This ratio is also stated as (100-Operating ratio) higher is the ratio better is performance
analyzing above the given ratio the performance of the port is satisfactory.
36
administrative and other activity of the firm. This ratio is the over all measure of firm
profitability.
38
37
36
35
34
33 Net Profit Ratio
32
31
30
29
2005-06 2006-07 2007-08 2008-09
Interpretation
This ratio indicates the firms capacity to face adverse economic condition such as price
compition,low demand etc.Higher the ratio the better is the profitability. While interpreting
the ratio it should keep in mind that the performance of the profit must also be seen in
relation to investment or capital of the firm and not only relation to the sales.
37
Definition Expense ratio indicates the relationship of various expenses to
total revenue.
Total revenue
12
10
6 Administrative
Eepenses Ratio
4
0
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation:
The lower the ratio, the grater is the profitability and higher is the ratio, lower is the
profitability. While interpreting the ratio, it must remember that for a fixed expense like rent,
the ratio will fall if the sales increase and for a variable expense, the ratio in proportion to
sales shall remain nearly the same.
38
9.FIXED ASSET RATIO
Definition: This ratio indicates between the fixed assets after depreciation to the
ling term fund by the business.
50
40
30
Fixed Asset Ratio
20
10
0
2005-06 2006-07 2007-08 2008-09
YEAR
Interpretation:
The ratio indicates the extent to which the extent the total of fixed assets are financed
by long term funds of the firm generally, the total of fixed asset should be equal to the total of
the long term funds say, the ratio should be hundred percent.
39
PARADIP PORT TRUST
Balance sheet as at 31st march, 2008
(Amount Rs.in crores )
I SOURCE OF FUNDS
II APPLICATION OF FUNDS
1 FIXED ASSETS 3
11,347,681,374 11,395,112,656
3 CURRENT ASETS
LIABILITYES AND
PROVISIONS
40
NET CURRENT ASSETS 1,852,395,192 2,916,372,298
Proforma Pilotage 18
Notes on Accounts 19
Schedules 1 to 19 annexed hereto form part of Balance Sheet and the Profit and Loss Account
41
(Amount in crores )
I SOURCE OF FUNDS
II APPLICATION OF FUNDS
2 FIXED ASSETS 3
11384,444,155 11,347,681,374
3 CURRENT ASETS
LIABILITYES AND
PROVISIONS
42
Proforma Pilotage 18
Notes on Accounts 19
Schedules 1 to 19 annexed hereto form part of Balance Sheet and the Profit and Loss Account
INCOME
43
Cargo Handling & Storage Charges 0 4,127,776,429 3,884,978,049
7
Port & Dock Charges (Including polo age fees) 0 1332,514,544 1,343,157,344
8
6,399,847,583 110,520,229
LESS:EXPENDITURE
3,157,944,541 2,825,959,484
44
Provision for Income Tax 1,170,271,800 1,019,832,230
Less: Appropriations
Of Capital Assets
Performa Pilotage 1
8
Notes on Accounts 1
9
Schedules 1 to 19 annexed hereto form part of Balance Sheet and the Profit and Loss Account
45
(Amount in crores.)
INCOME
Port & Dock Charges (Including polo age fees) 0 1,504,437,220 1,332,514,544
8
6,967,140,023 6,399,847,583
LESS:EXPENDITURE
3,385,747,548 3,157,944,541
46
Less: Finance & Misc. Expenditure 1 291,587,829 331,055,949
7
Less: Appropriations
Of Capital Assets
Performa Pilotage 1
8
Notes on Accounts 1
9
Schedules 1 to 19 annexed hereto form part of Balance Sheet and the Profit and Loss Account
47
AUDIT REPORT
Review of Accounts of Paradip Port Trust, Paradip for the year ended 31st
March, 2008 by Comptroller & Auditor General of India
Note:- The review of Accounts has been prepared without taking in to account the
observations/comments contained in the Audit Report of the Comptroller and Auditor General
of India.
Review of accounts:
2. FINANCIAL POSITION
2.1. The financial position of the Port under broad headings for the last three years was as
follows:
(Rupees in crores)
(A) LIABILITIES
iii) Borrowings
c) Institutional Loan
48
iv) Current Liabilities & 937.98 875.05 769.80
Provisions
v) Other Liabilities
B) ASSETS
(A) REVINUE
B) EXPENDITURE
49
(D) Less (i) mandatory appropriation/
50
NOTES ON ACCOUNTS FOR THE YEAR 2008-09
1. YEAR IN BRIEF
51
CONCLUSION
Ratio analysis is one of the most powerful tools of financial analysis. it is a device to
analyses and interpret the financial health of enterprise.
From the report it is concluded that the port had a sound financial position.
As, port is making many development plans it is becoming more sound day by day.
The supplier of goods on credit, banks, financial institutions, investors, share holders and
management all make use of ratio analysis as a tool in evaluating the financial position and
performance of a firm for granting credit, providing loans or making investments in the firm.
52
The conclusion can be drawn as to wheather the performance of the firm is improving or
decreasing.
BIBLIOGRAPHY
Administration report
53
54