A Financial Report On TTK Healthcare Limited

Submitted By : PRAGN .K. SHAH Year Roll. No. Division : S.Y BBA : 43 :B

Submitted To : SHRI CHIMANBHAI PATEL INSTITUTE OF BUSINESS ADMINISTRATION.

Year

: 2011-2012

Preface
Financial management is an important aspect for an business. Financial Management consider the raises of an finance for the corporation and for the optimum utilization.

As a part of a BBA circulam one has to prepare a financial report regarding to the company because only theatrical knowledge is not sufficient, practical knowledge is also essential. The main objective for this report is not only about the financial function and financial matter but also about the financial performance of the company.

I have prepare this financial report regarding to the TTK Healthcare ltd for the year of 2009,2010 & 2011. In this report financial analysis is done on the basis of the ratio, comparative statement , common-size statement, & cash flow.

This report contain all the detailed financial concept regarding to the company.

Acknowledgment

First of all, I want to thankful to the god for giving me this opportunity for becoming the part of BBA. I also want to thanks to my parents who understands me and motivate me for my work.

I am heartily grateful to our college Shri Chimanbhai Patel Institute of Business Administration & to Gujarat University for compulsoring this aspect of repot to BBA circulam.

I want to thank to Prof. Komal M Arora for giving the better guidance and solving the doubts and for motivation.

For preparation of this report I would like to thank the Professors, friends, & colleagues for helping me in making this report.

INDEX
Sr.no
A)

Content
INTRODUCTION TO FINANCE AND FINACIAL MANAGEMENT Introduction Of Finance Introduction Of Financial Management Definition Of Financial Management Meaning Of Financial Management Objective Of Financial Management Important Of Financial Management INTRODUCTION OF THE COMPANY Introduction To The Sector History Of The Company Vision & Mission Of The Company Board Of Director TTK Healthcare Ltd. RATIO ANALYSIS Introduction To The Raito Advantage Of Ratio Disadvantages Of Ratio Calculation Of Ratio Analysis

Pg.no.

(1) (2) (3) (4) (5) (6) B) (1) (2) (3) (4) (5) C) (1) (2) (3) (4)

(5) (6)

Common Size Balance Sheet (Interpretation) Common Size P&L A/c (Interpretation) Comparative Statement Comparative Profit And Loss A/c. Introduction Of Cash Flow Statement 1. Benefits Of Cash Flow Statement 2. Cash Flow (Interpretation)

D) E) F)

G) H) I)

Ratio Of TTK Conclusion Bibliography

Introduction To Finance & Financial Management

Introduction To Finance

Finance is the study of the funds & management. Finance is known as life blood of the business. Finance is required to purchase expensive machinery, and also for dayday expenses on raw material and labor and operational and administrative needs of business. Execution of expansion plans and modernization programmes are not possible without adequate finance. Thus, finance can be described as life blood of industries. In engineering jargon, finance is the oil that lubricates the huge machinery of industrial sector.

In the other words of Husband and Dockery, finance may be said to be the circulatory system of the economic body, making possible the needed operation between many unit of activity. . It also deals with the concept of time, money, risk & the interrelation between the given factors it is basically focused on how the money is spent & budgeted.

Introduction To Financial Management

The scope of financial management, that is, the views about finance function have undergone remarkable changes over time. Till 1950, finance function was regarded as the function only of raising finance for business and consequently the discussion centered round different sources of finance, financial institution, and financial documents. But since last 3040 years an effective and efficient utilization of finance has been considered due to that the scope of financial management has been widened. Financial management is concerned with three activities. They are as follow: 1. Anticipating financial need means estimation of funds required for investment in fixed & current assets or long-term & short-term assets. 2. Acquiring financial resources the required amount of capital is anticipated the next task is acquiring financial resources i.e., where & how to obtain the funds to finance the anticipated financial needs. 3. Allocating funds in business means allocation of available funds among best plans of the assets, which are able to maximize the shareholder s wealth.
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Definition Of Financial Management

y Financial management is that managerial activity which is concerned with the planning & controlling of the firm s financial resources. y Financial management is that managerial activity which is concerned with the planning of controlling of the firm financial resources .planning ,objecting , monitoring , praising & controlling of the monetary resource of an organization .

y Financial management is concerned mainly with such matter as, how business corporation raises its finance & how it makes use of it.

y Financial management means raising of adequate fond at the minimum cost & using them effectively in business in other words financial management is concerned with the financial problems of the business organization.

Meaning Of Financial Management

Financial management means planning, organizing, directing & controlling the financial activities such as procurement & utilization of funds of the enterprise it means applying general management principals to financial resources of the enterprise.

Financial Management is maintaining involves raising of funds & their effective utilization with the objective of maximizing share holder wealth. Financial management is the operational activities of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation.

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Objective Of Financial Management

The financial management is generally concerned with procurement, allocation & control of financial resources of a concern. There are two main objectives of financial management. They are as follow:-

1. Profit Maximization: As a Soloman and Pringle have put it There is also brad agreement that under perfect competition , where all the prices accurately reflect true values and consumes are well informed, profit maximizing behavior by firms leads to an efficient allocation of resource and maximum allocation. The rationale behind profit maximization objective is simple. A business firm is profit seeking organization. y Profit is a test of economic efficiency. y It is assumed to lead to efficient allocation of resources. y It ensure maximum social welfare.

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2. Wealth Maximization: Wealth maximization means maximization of net worth of the shareholders. It is also known as Maximization Approach . The wealth maximization principles implies that fundamental objective of a firm should be to maximize the market value of its share. A decision which maximize net present worth also maximize shareholder. A decision which results into negative net present worth will reduce shareholders wealth and such decision are not to be accepted.

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Importance Of Financial Management

Financial Management is very significant aspect because its related to the finance and optimum utilization of the funds. The significance of financial management will be clear from following points:-

I. Success Promotion: The success or otherwise of a company can be guessed on the basis of its financial plan. If the plan is defective, it will fail to provide sufficient funds to meet the requirements of both fixed and working capital. II. Smoothing Running of the enterprise: Finance is required at each stage of enterprise. Working capital is required for day to day expenses. A defective plan can put the business in jeopardy. Funds are needed to purchase machines and materials, to pay wages and salaries, and even for the sale activities. The management

13

will be constantly worrying if the financial planning is defective.

III. Finance for expansion: Finance is required for schemes of modernization, expansion and development of existing enterprise. How to meet this requirement is one of the major problems of financial management. A prudent financial planning will provide the financial required for this purpose from retained profits of the enterprise and, if need be, from outside sources at reasonable cost. IV. Cost Planning: Among the factors on which depends the success of a business enterprise, liquidity is most important.

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Introduction Of Company

15

Introduction To The Sector

Established by TT Krishnamachasi in 1928, the group started out as an indentify house (importing & distributing foreign good) & became a distributor of several popular consumer products with world renowned brand names like wood words, oval time, ponds, Kellogg s , brylcream, beekam , water mums , suffers ,sunlight & many more .

The TTK Group evolved from a trading concern to manufacturing outfit in the 505 under the guidance of its former chairman. TT Krishnamachasi. Ever the visionary , he pioneered the manufacturing of pressure others & condoms in the country. He made the company force to be reckoned with, by setting up numerous medium & small unit, to manufacture products medium & small life to easier for millions of homes in India.

The TTK group is a multi-product, multi unit, multilocation conglomerate with a turnover in excess of Rs.5,000 million. If has a workforce of nearly in its manufacturing units & nationwide branches. TT Jagannathan , chairman & managing director new head the group.

16

The group as it stand today, I as strong international player. The company export goods worth served millions to over 40 countries. It has successfully undertaken turnkey projects in Bangladesh & Uganda.

The group comprises the following companies:y y y y y y y TTK Prestige Limited TTK Textile Limited Sara Lee TTK Limited TTK Bhurat planet NRI Service TTK Health Limited TTK - LIG Limited TTK Maersk Medical Limited

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History Of The Company

The company were incorporated on 21st May, 1958. In 1962 manufacture of ethical products concerned based on foreign known as how The Company started with the manufacture of wood words gripe water in 1959. In 1974 a basic chemical division was started with object of synthesizing pharmaceutical intermediate & chemicals. In 1975, the Indian medicine division was established for manufacturing herbal product. In 1982 an animal welfare was set up for manufacture of formulations for veterinary use. In 1985 Company diversified into the manufacture of ready to cereal snack food the plant is located at hospital in Karnataka state & it is equipped to manufacture 10,000 metric tons per annum of cereal snack food. The estimated cost of the project was Rs.363 lakhs. The merger of TTK chemicals limited with this company has been sanctioned by the high court of Madras & Andhra Pradesh with retrospective effect from 1st June, 1988.

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Vision & Mission Of The Company

Away from the market place , the TTK group s commitment to society has been demonstrated in many ways. The TT Ranganathan Clinical Research Foundation founded by involved for more than two decades in bringing hope to thousands of families form apart by alcohol & substance abuse. The TTK hospital is dedicated to the treatment to addiction & also trains, professionals & wunselors in rehabilitation therapies. The Group s commitment to blood banking is nearly three decades old. The Madras Voluntary Blood Bank (MVBB) was promoted by the TTK group in 1975 & now has more than 25000 donors on its lists with more than 4000 bottles of blood collected & distributes free as of cost to hospital annually. The rotary central TTK VHS blood bank stated in 1998 is also one of the best equipped blood bank in Chennai. The TTK group partnered with Rotary club of Bangalore in 1984 to form the Bangalore Medical Services Trust (BMST) that is involved in quantity management planning in blood banking in India. On a different arena, the TT. Narasimhan Swami Dayananda Higher Secondary School in Manjakkudi, a small village 30 Km from the temple town of Kumbakunam in Tamil Nadu is an example of the groups commitment to education too.
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Board Of Director
Mr. T T Jagannathan Mr. T T Raghunathan Mr. R K Tulshan Dr. K R Shimusthy Mr. B N Bhagwat Mr. J Shrinivashan Mr. R Shrinivashan Mr. K Vaidyanathan Mr. K Shankuran Mr. I Ravindran Mr. S Kalyanaramun - Chairman - Executive Vice Chairman - Director - Director - Director - Director - Director - Director - Director - Whole Time Director - Company Secretary

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TTK HealthCare Limited at a Glance

The Healthcare industry is considered an industry or profession which included people exercise of skill or judgment or the providing of service related to the preservation or improvement of the health of individuals or the treatment or care of individuals who are injured, sick, disabled or infirm. The delivery of modern healthcare depends on an expanding group of trained professionals coming together as an interdisciplinary term. Healthcare industry plays an important part in the economy of a country. The healthcare industry determine the GDP or the gross domestic product of any country. It also determines expert status, employment capital investment etc. Healthcare segment provides employment opening to many individuals directly associated with the healthcare sector or other associated sectors, related to the healthcare industry in some way or the other. Efforts are usually make to keep the dollars rolling within the country economic set up. A business dealing in healthcare adds the already existing economic by buying utility programs, by paying taxes for property.

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The healthcare industry consists of the following :y y y y y Dentist and Doctors Protective care & nursing Pharmacies Allied medical health service Hospitals

The present era is likely to be dominated by expensive of demand in the market increasing price & increasing awareness among the customers. Such change will trigger a change in the healthcare industry secession for the better.

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Growth Of Health Care Industry

The fledgling healthcare industry in India is set to became a mammoth sized sector. A latest study by global management consultant Mc Kinsey predicts that India s healthcare industry will reach a suggesting USD 190 billion mark in less than two decades. The study reveals that healthcare consumption in India will grow at 10.8% annually to reach USD 190 billion from its present size of just USD 25 billion. The reports says increasing health awareness among the youth, metropolitan lifestyle & increasing percentage of household expenditure on health use the key reasons for the growth .

The Mc Kinsey report says that rural healthcare is also set to show strong growth & will account for almost half of the total consumption on healthcare in the country .

Industry experts say that could be the reason for companies like WockHurdt, Apollo & even Reliance industry to make their early moves in the rural healthcare sector .

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While a cardiac procedure waste anything between USD 40,000 60,000 in the US, in India it would cost you a mere USD 3,000 6000, also the success rate of cardiac bypass in India is 98.7% against 97.5% in US. This is also making India a popular destination for tourists to available of the health service.

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Ratio Analysis

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Introduction Of Ratio Analysis

A ratio is one number expressed in terms of another. It is a mathematical yardstick that answers the relationship between two figures. Ratio analysis is a process of comparison of one figure against another and the interpretation of the ratios to know the strengths and weakness of the firm s operation and it s financial position. Ratio analysis helps various interested parties like prospective investors, creditors banks, employees etc to draw useful conclusion to serve them purpose. A ratio is expressed in 3 different ways:1. Simple figures or pure ratio 2. Percentage 3. Proportion of numbers or fraction Ratio are presentation technique, which helps the revolver to get idea about the performance and the position of the firm with least efforts. Company gets overall view of the finance from the ratios presented to him. They can compare such ratio with ratio of the past and also the ratios of other industry.
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Advantages Of The Ratio

1. To workout the profitability :- The accounting
ratio helps to measure the profitability of the business by calculating the various profitability ratio. It helps the management to know about the earning capacity of the business concern in this way profitability ratio show the actual performance of the business.

2. To work out the solvency :- With the help of

solvency of the comparing can be measured. There ratio shows the relationship between the more than that of the assets of the company. It shows the unsound position of the business. In this case the business has to make it possible to repay its loans.

3. Helpful in analysis of financial statement :Raito analysis help the outside just like creditors, shareholders, debenture , holders, debentureholders, bankers to know about the profitability & ability of the company to pay them interest & dividend.
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4. Helpful in analysis of financial statement :With the help of ratio analysis a company may have comparative study of its performance to the previous year. This way company comes to know about its weak point & be able to improve them.

5. To simplify the accounting information :According ratios are very useful as they briefly summaries the result of detailed & complicated computations.

6. To workout the operating efficiency :- Ratio

analysis helps to work out the operating efficiency of the company with the help of various turnovers ratio. All turnover ratio are worked out to evaluate the performance of the business of the utilizing the resource .

7. To workout short-term financial position :Ratio analysis helps to work out the short-term financial position of the company with help of liquidity ratio. In case short term financial position is not healthy efforts are made to improve it.
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Disadvantage Of Ratio
In spite of many advantages, there are certain limitation of the ratio analysis techniques & they should be kept in mind while using them in interpreting financial statements. The following are the main limitation of the accounting ratio.

1. Limited comparative :- Different firms apply different accounting policies therefore the ratio of one firms may value the closing stock on LIFO basis while some other firms may value on FIFO basis. Similarly there may be different in providing deprecation of fixed assets or certain of provision for doubtful debts etc 2. False result :- According ratio are based on data drawn from accounting records. In case that date is correct then only the ratio will be correct. For example, valuation of stock is based on very high price, the profits of the concern will be inflated & it will indicate a wrong financial position. The data therefore must be absolutely correct.

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3. Effect of price level change :- Change often make the comparison of figures difficult over a period of time. Change in price affects the cost of production sales & also the value of assets. Therefore , it is necessary to make proper adjustment for price level change before any comparison. 4. Qualitative factors are ignored :- Ratio analysis is a technique of quantitative analysis & thus is ignored qualitative factors, which may be equal to standard credit period, but some debtors may be to the list of doubtful debts, which is not disclosed by ratio analysis. 5. Costly technique: - Ratio analysis is a costing technique & can be used by big business house, small business units are not able to afford it. 6. Absence of standard university accepted terminology: - There are no standard ratios, which are universally accepted for comparison purpose. As such, the significance of ratio analysis technique is related.
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Calculation Of Ratio Analysis

Type of ratio
y y y y Liquid Ratio Profitability Ratio Solvency Ratio Activity Ratio

1. Liquid Ratio :1)Current Ratio 2) Liquid Ratio 3) Quick Ratio

1) Current Ratio :Meaning :- This is the most widely used ratio shows the proportion of current assets to current liabilities. This ratio is also known as working capital ratio.

Objective:- The objective of this ratio is to measure the ability of the firm to meet its short- term obligation. It also reflect the short term financial strength of a company.
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Formula:Current Assets Current ratio = ------------------------Current Liability 2011 2010 2009 1201197345 946591859 919671456 751626152 1.60% 537389832 458910780 1.76% 2%

Current Assets Current Liabilities Ratio

2.5 2 2 1.5 1 0.5 0 2009 2010 years 2011 1.76 1.6

Interpretation :- In this graph, the ratio of the year 2009 was decreased to the year of 2011 from 2% to 6%. The loss difference between the ratio is 0.4%.

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2) liquid ratio :Meaning :- to remove the defect of current ratio, liquid ratio is used. It is variant of current ratio which is designed to show the amount of the funds available to meet immediate payments.

Objective :- The objective of comparing this ratio is to measure the ability of the firm to meet its short term obligations as & due without relying upon the realization of stock. Formula:Liquid Assets Liquid Ratio = ----------------------Liquid Liabilities Liquid Assets :- Current assets - Stock - Prepaid expenses. Liquid Liabilities :- current liabilities - Bank O/D Cash flow .

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2011 liquid 1201197345 Assets 268290375 Less:- Stock 932906970 751626152 Liquid Liabilities Ratio 1.24%
1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009 1.57

2010 945691859 228258544 718333315 537389832

2009 919671456 198890310 20781140 458910780

1.34%

1.57%

1.34

1.24

2010 years

2011

Interpretation :- The liquid ratio in the year 2009 was 1.57% and after that it continues to decrease till the year 2011 to 1.25%.

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3) Quick Ratio :Meaning :- Quick ratio is also known as Acid Test ratio or Liquid ratio. The Quick assets is found by dividing Quick assets by Quick liabilities. Objective :- Current ratio less stock & debtors . This ratio suggest whether available cash & cash equivalent (which can quickly convertible in cash) are sufficient to meet its short term liabilities . Formula :Quick Assets Quick Ratio = ----------------------Liquid Liabilities Quick Assets= Cash + Bank balance 2011 Cash & bank 608075608 bal. 751626152 Less -liquid liabilities Ratio 0.81% 2010 2009 493381832 502446648 537389832 458910780

0.92%

1.09%

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1.2 1 0.8 0.6 0.4 0.2 0

1.09 0.92 0.81

2009

2010 years

2011

Interpretation :- The ratio was 1.09% in the year 2009. It is the highest ratio compare with next two year (2010-2011) after this year the ratio was 0.92%. The difference between the year of 2009 & 2010 was 0.17% and after two year in the year 2011 the ratio is reduce to 0.81%. 2. Profitability Ratio :1) Gross Profit Ratio 2) Net Profit Ratio 3) Operating Ratio 1) Gross Profit Ratio :Meaning :- It is the basic measure of profitability of business. It express relationship between gross profit earned to net sale.

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Objective :- The main objective of the computing this ratio is to determine the efficiency with which production & or operations are caused on . Formula:Gross profit Gross Profit Ratio = ----------------------- x 100 Net sales Gross profit=Sales Cost of goods sold Cost of goods sold= Operating stock+ Net purchase +Purchase expense + Wage Closing stock

2) Net profit ratio :Meaning :-This ratio measure the relation between the net profit & sales of the firm. The net profit is obtained after charging operating expense, interest, depreciation & taxes to the gross profit. Objective :-The main objective of computing this ratio is to determine the overall profitability due to various factors such as operational efficiency.

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Formula :Net profit offer tax Net profit ratio = -----------------------------x 100 Net sales 2011 147219557 3102769778 4.74% 2010 91274234 2521992910 3.62%
4.74

Net profit Net sales Ratio

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 3.59

2009 78747424 2196465374 3.59%

3.62

2009

2010 years

2011

Interpretation :- In this ratio graph shows the increment of the ratio year by year. In 2009 the ratio was 3.59% and it increase to 3.62% in the year 2010. After that it increased to 4.74% in the year 2011. The total increment is 1.15% till from 2009 to 2011.

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3) Operating ratio :Meaning :- It is a ratio shows relationship between cost of goods should plans operating expenses to sales operating expenses include administration & selling & distribution expenses. Objective:- The main objective of computing this ratio is to determine the operational efficiency with which production & purchase & selling operations are cussed on. Formula :Cost of goods sold + operating Exp. Operating ratio =--------------------------------------------------x 100 Net sales C.O.G.S=Operating stock + Purchase Closing stock. 2011 2010 2009 1625676593 1334805788 1192657932 1286495875 1042674071 902664991 19712533 2931884901 3102769778 94.49% 18180310 2404660175 2521992910 95.36% 17472709 2112795632 2190465374 96.19%
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C.O.G.S Operating Exp. Total Net sales Ratio

96.5 96 95.5 95

96.19

95.36

94.49 94.5 94 93.5 2009 2010 years 2011

Interpretation :- In the year 2009 the ratio was 96.19% but after 2 years the ratio was reduced by 94.49%. The difference between was 083%.

Related to investment :y Return to capital Ratio y Return to share holders equity y Return to equity share capital y Return on total assets y Earnings per share Ratio y Dividend per share Ratio y Dividend payout Ratio y Price-earning Ratio

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1) Returns to capital ratio:Meaning :- It is the only measure which can be said to show satisfactory the benefits being obtained for the sacrifice involved. i.e. for capital invested.

Objective :- The objective of the computing this ratio is to find out how efficiently long term funds supplied by the debenture holder & share holders have been used.

Formula :-

N.P.B.I & taxes

R.O.C.E =--------------------------------------x 100 Capital employed Capital employed=share capital + reserve 7 surplus+ long term loans

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N.P.B.I & tax Add- Interest

Share capital +reserve& surplus +long term loan Capital 881431085 709514079 771978176 employment Ratio 27.08% 24.31% 19.74%
30 24.31 25 19.74 20 15 10 5 0 2009 2010 years 2011

2011 221444557 17222335 238666892 77659830 679688079 124083176

2010 155022956 17440156 172463112 77659830 569074005 62780244

2009 133745424 18642894 152388318 80874970 540087757 151015449

27.08

Interpretation :- In this ratio there is an growth of the ratio. In 2009 the ratio was 19.74% it increased to 24.3% and after it increased to 29.18%. In 2011, 29.18% was the highest achieved ratio.

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2) Returns to share holders equity :Meaning :- Profit is earned in business for the owners and so they are obvious interested in the return. They get their money interested in company s business this is return on shareholders equity. Formula :N.P.A.T Return on shareholders equity = -------------------------x 100 Shareholder fund s

2011 N.P.A.I 14721955 Share capital 7 +Reserve & 77659830 surplus 67968807 9 Shareholder s 75734790 funds 9 Ratio 19.44%

2010 91274234 77659830 56907400 5

2009 78747424 80874970 54008775 7

64663383 62096272 5 7 14.11% 12.68%

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25 20 15 10 5 0 2009 2010 years 2011 14.11 19.44

12.68

Interpretation :- In this graph it has clearly mention that the ratio was increasing by 12.68% to 19.44% from the year 2009-2011.

3) Returns to equity share capital :Meaning :- The ratio is important as it indicated profitability of a firm from the view point as real owners who are ordinary shareholders, who bear all the risk of business. Objective:- The objective of computing this ratio is to find out how efficiently the funds supplied by the equity share holders have been used.

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Formula :N.P.A.T - preference dividend R.O.E.S.C=-------------------------------------------------- x 100 Equity share capital 2011 147219557 77659830 189.57% 2010 91274234 77659830 117.53% 2009 78747424 80874970 97.37%

N.P.A.T Share capital Ratio

200 180 160 140 120 100 80 60 40 20 0 2009

189.57

117.53 97.37

2010 years

2011

Interpretation :- In this graph, the ratio has been increased from 97.37% to 189.57% in the year of 20092011.

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4) Return on total assets:Meaning:- The returns on the total assets implies how the funds supplied by both owner & creditor are utilized in business. Formulas :Net profit after taxes Return on total assets =-------------------------------- x100 Total assets 2011 147219557 17222335 164441892 881431085 18.66% 2010 91274234 17440156 108714390 789529079 13.77%
18.66

N.P.A.T + Interest Total assets Ratio

20 18 16 14 12 10 8 6 4 2 0 12.61

2009 78747424 18242894 97390318 772543176 12.61%

13.77

2009

2010 years

2011

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Interpretation :- In this graph the ratio is constantly increasing by 12.61% to18.66% in the year between 2009-2011. 5) Earnings per share ratio :Meaning :-This ratio measurer the profit available to equity shareholders on per share basis. This ratio shows the profitability of the firm from the owners point of the view.

Objective :- The objective of computing this ratio is to measure the profitability of the firm on per equity share basis.

Formula:N.P.A.T preference dividend Earnings per share =-------------------------------------------x 100 No. of equity share

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N.P.A.T -preference dividend No of equity 7765983 share Ratio 18.96%

20 18 16 14 12 10 8 6 4 2 0 2009

2011 2010 147219557 91274234 _ _ 8087497 11.29 %

2009 78747424 _ 8087497 9.74%

18.96

12.29 9.74

2010 years

2011

Interpretation :- It seems that the ratio is constantly increasing to 9.74% to 18.96% in 2009-2011. It seems that earning per share in the last three years of gap. It seems that company is going good compare to the last tree year.

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6) Dividend per share ratio :Meaning :- The earning per share shows only theoretically, what a shareholders can get per share out of profit. But it is not actual amount. Dividend per share is the amount of actual dividend paid to equity shareholders dividend by the number of equity shares outstanding. Formula :Total dividend paid to equity Shareholders Dividend Per share =-------------------------------------------------------No. of equity share

2011 Dividend paid 31695000 to equity share.hol. 7765983 No of equity share Ratio 4.08%

2010 27420000 8087497

2009 28466000 8087497

3.39%

5.52%

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6 5

5.52

4.08 4 3 2 1 0 2009 2010 years 2011 3.39

Interpretation :- In this graph, in 2009 the percentage was 5.52% then it decreased to 3.39% in 2010 but after it slightly increased to 4.08% in 2011 but still it decreased by 1.44% as compared to 2009. The Dividend per share ratio of the company is fluctuating.

7) Dividend payout ratio :Meaning :- it is the proportion of actual dividend received to the earning per share or the amount which belong to the equity shareholders. It is obtained by dividing the actual dividend per share by earning.

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Formula :Dividend per share Dividend payout ratio =---------------------------------------Earning per share

D.P.S E.P.S Ratio

0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

2011 4.08 18.96 0.22%

2010 3.39 11.68 0.29%

2009 3.52 9.71 0.36%

0.36 0.29 0.22

2009

2010 years

2011

Interpretation :- In Dividend Pay-out ratio, in the year 2009 the ratio was 0.36% and it decreased to 0.29% in 2010 and then 0.22% in 2011. In 2009 the ratio was highest in compare to both the year.

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8) Price earning ratio :Meaning :- Its is the above the ratio with a slight change that it shows the relation between the market price of the share & the earning per share.

Formula:-

Market price of share Price earning ratio=--------------------------------------E.S.P 3. Solvency Ratio :1) Debt Equity Ratio 2) Capital Gauzing Ratio 3) Proprietary Ratio 4) Long Term To Fixed Assets 5) Interest Coverage Ratio 6) Debt Service Coverage Ratio. 1) Debt Equity Ratio:-

Meaning :- The owners fund include share capital as well as reserves and surplus. It is also known as
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Owner Equity or Net worth and so it is known as Debt-Equity Ratio.

Objective :- The objective of comparative this ratio is to measure the relative proportion of debt and equity in finance any assets of a firm.

Formula:Long Term liabilities Debt Equity Ratio =------------------------------------ x 100 Shareholders funds

2011 Long term 124083176 liabilities 776559830 Share capital 679628079 Reserve & 757347909 surplus Shareholders funds Ratio 16.38%

2010 62780244 77659830 569074005 646733835

2009 15101449 80874970 540087757 620962727

9.71%

24.32%

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30 24.32 25 20 16.38 15 9.71 10 5 0 2009 2010 years 2011

Interpretation :- In this ratio, in year 2009 the ratio was 24.32% and it decreased to 9.71% in 2010 and after that it increased to 16.38% in 2011. In 2009 the ratio was the highest in compare to both the year. The Debt-Equity ratio is fluctuating.

2) Capital Gearing Ratio :- This ratio expresses the proportion of preference capital + debenture and ordinary capital. In other words, it is the ratio of fixed interest and dividend bearing capital to ordinary capital.

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Formula: Fixed Interest bearing Capital Gearing Ratio= ---------------------------------------Ordinary Capital

3) Proprietary Ratio :Meaning :- The ratio shows the proportion of propriety funds to the total assets employed in the business. The proprietor s funds of shareholders equity consist of share capital and reserves.

Objective :-The objective of computing this ratio is to find out how much the proprietary have financed to purchase assets. Formula :Proprietary Funds Proprietary Ratio :----------------------------------- x 100 Total Assets

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2011 Share Capital 77659830 Reserve & 679688079 surplus 757347909 Proprietors 881431084 funds Total assets Ratio 85.92%
87 86 85 84 83 82 81 80 79 78 77 80.38

2010 77659830 569074005 646733835 789529079

2009 80874970 540087757 620962753 772543176

81.91%

80.38%
85.92

81.91

2009

2010 years

2011

Interpretation :-In this ratio, it seems that in the year 2009 the ratio was 80.38% and it slightly increased to 81.91% in 2010 and it jumped to 85.92% in 2011.

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4) Long Term To Fixed Assets:Meaning :- The fixed assets of business must be purchased out of fixed capital only, which included share capital, reserve & long term liability. Formula:Long Term Funds Long term funds =----------------------------------to fixed assets Fixed Assets Fixed Capital= Share Capital + Reserve + Long Term liability 2011 Share Capital 7765983 Reserve & surplus 0 Long Term 6796880 Liability 79 1240831 76 Long Term Funds 8814310 Fixed Assets 85 3739009 55 Ratio 2.36% 2010 77659830 56907400 5 62780244 2009 80974970 54008775 7 15161544 9 77197817 6 20982169 8 3.68%

70951407 9 30320913 0 2.34%

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4 3.5 3 2.5 2 1.5 1 0.5 0

3.68

2.34

2.36

2009

2010 years

2011

Interpretation :- In this graph the ratio in 2009 was 3.68% and it decreased to 2.34% in 2010 it means it decrease to 1.34% .The ratio is 2.36% in 2011 means it increase to 0.02% but it is not effectively. 5) Interest Coverage Ratio:Meaning :-The ratio indicates as to how many times the profits covers the payment of interest on debentures & other long term loans. Objective :-The objective of computing this ratio is to measure the debt serving capacity of a form so far fixed interest on long term debt & debenture is concerned.

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Formula :Profit before interest & taxes Interest Coverage=-----------------------------------------Ratio Interest 2011 221444557 17222335 2386666892 17222000 13.86 times 2010 155022956 17440156 172463112 17440000 9.89 times 2009 133745424 18642894 152388318 18643000 8.17 times

P.B.I& T + Interest P.B.I.T Interest Ratio

16 14 12

13.86

9.89 10 8 6 4 2 0 2009 2010 years 2011 8.17

Interpretation :- In this diagram large ratio in the year is 2011 13.86. it increase previous year . before this year the ratios was increased 9.89 % difference between 3.97% in 2009 ratio is 8.17 is difference compare with after this year 2010 & 2011.
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6) Dividend Coverage Ratio :The ratio that measures the ability of the firm to pay dividend on preference share carrying fixed rate of dividend.

Formula:

P.A.T

Dividend Coverage Ratio=------------------------------Preference Dividend

4. Activity Ratio :1) Stock Turnover Ratio 2) Debtors Ratio 3) Creditors Ratio 4) Fixed Assets Turnover Ratio 5) Current Assets Turnover Ratio 6) Total Assets Turnover Ratio. 1) Stock Turnover Ratio :Meaning :- The ratio signifying the efficiency of sale in the stock turnover it shows the number of times the average stock is turned over during the year.
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Objective :- the objective of computing this ratio to determine the efficiency with which the inventory is utilized.

Formula:Cost Of Goods Sold Stock Turnover Ratio=-----------------------------------------Average Stock Opening stock + closing stock Average stock= ----------------------------------------------2 2011 1625676493 228258544 268290375 469448919/2 248274459.5 6.55 times 2010 1343805788 198890316 228258544 427148860/2 213574430 6.30 times 2009 1192657932 198890316 198890316/2 99445158 11.99 times

C.O.G.S + Opening Stock + Closing Stock Average Stock Ratio

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14 11.99 12 10 8 6.3 6 4 2 0 2009 2010 years 2011 6.55

Interpretation :-In this ratio, in the year 2009 the ratio was 11.99% and it fell down to 6-30% in the year 2010. Next year means in 2011 it slightly increase to 6.55% but it doesn t make any effect to the company.

2) Debtors Ratio :Meaning :- The ratio shows the number of days taken to collect the dues of credit sales. It shows the efficiency or other wise of collection policy of an enterprise. Objective :- The objective of computing this ratio is to determine the efficiency with which the trend debtors are managed.

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Formula:-

Debtors + Bills receivable Debtors Ratio =------------------------------------------ x 365 Average daily sales (cr. sales)

2011 Debtors 324831362 + bills receivable 324831362 Avg. daily sales 310276977 8 Ratio 38 days

2010 224951483 224951483 252199291 0 33 days

2009 213334492 213334492 219646537 6 35 days

39 38 37 36 35 34 33 32 31 30 2009 2010 years 33 35

38

2011

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Interpretation :- It seems that the ratio has been decreased from 38 days in 2009 to 35 days in 2010. But in 2011 the number of days increased to 38 days. 3) Creditors Ratio:Meaning :- The number of days within which amount we make, payment to our creditors for credit purchase is obtained from velocity or creditors ratio. Objective :- the objective of computing this ratio is to determine the efficiency with which the creditors are managed. Formula:Creditors + Bills payable Creditors Ratio =--------------------------------------- x 365 Purchase (credit purchase) 2011 316080193 316080193 117182028 1547872148 1665054176 69 days 2010 227060358 227060358 99407270 1273902788 1373310058 60 days 2009 194659738 194659738 117491065 1112189204 1229780269 58 days

Creditors + Bill Payable Credit Purchase

Ratio

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70 68 66 64 62 60 58 56 54 2009 2010 years 59 60

69

2011

Interpretation :- Its seems that company has been increased from 59 days to 69 days in the year of 2009-2011. 4) Fixed Assets Turnover Ratio :Meaning :- To ascertain the efficiency and the profitability of business, the total fixed assets are compared to the sales. The more the sales in relation to the amount invested in fixed assets the more efficiency is the use of fixed assets.

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Objective :- The objective of the computing this ratio is to determine the efficiency with which the fixed assets turnover are utilized. Formula :Net Sales F.A.T.R =---------------------------------Fixed Assets 2011 3103019275 373900955 8.30 times 2010 2524290840 303209130 8.33 times 2009 2199026133 209821698 10.48 times

Sales Fixed Assets Ratio

12 10.48 10 8.33 8 6 4 2 0 2009 2010 years 2011 8.3

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Interpretation :- Its seems that company decreases the percentage of fixed turnover ratio from 10.48% to 8.30% in 2009-2011. 5) Current Assets Turnover Ratio :Meaning :-This ratio is computed to ascertain how efficiently working capital is utilized. It is computed by dividing the sales by total current asset. Formula :Sales C.A.T.R =-----------------------------------Current Assets 2011 3103019275 Assets 208290375 324831362 608075608 2010 2524290840 228258544 224951482 493381832 2009 2199016113 198890316 218334492 502446648 919671456 2.39%

Sales Current + + Ratio

1201197345 946591859 2.58% 2.67%

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2.7 2.65 2.6 2.55 2.5 2.45 2.39 2.4 2.35 2.3 2.25 2009

2.67 2.58

2010 years

2011

Interpretation :- In this graph the ratio in the year 2009 was 2.39% and it jumped to 2.69% in the year of 2010. But it fall to 2.58% in 2011.

6) Total Assets Turnover Ratio:Meaning :- The funds used in business are employed in the both fixed assets & current assets both & profit is earned with the help of both. Hence it would be useful to know the proportion of total assets to sale. Objective :- How efficiently assets are employed in business. Formula :68

Sales T.A.T.R = ---------------------------------------Total Assets 2011 3103019275 881431085 3.52%

4 3.52 3.5 3 2.5 2 1.5 1 0.5 0 2009 2010 years 2011 2.85 3.2

Sales Total Assets Ratio

2010 2524290840 789529079 3.20%

2009 2199016113 772543176 2.85%

Interpretation :- We can show that in this diagram every year increase in 2009 ratio was 2.85% & after 2010 the ratio was 3.20% & after in the year 2011 it increase to 3.52%.

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Common size balance sheet

Particulars Share Capital Reserve & sur. Secured loan Unsecured loan Gross block Depreciation Capital work in progress Net block Investment Differed tax ass. Differed tax lia. Inventories Sundry debtors Cash & bank Loans & advan. Current lia. Provision Current assets 2011 (Amt.) 77659830 679688079 124083176 124083176 % 8.81 77.11 14.08 14.08 2010(Amt.) 77659830 569074005 62780244 80015000 % 9.84 72.08 7.95 10.13 2009(Amt.) 80874970 540087757 151015449 565000 % 10.47 69.91 19.55 0.078

557230023 231082586 47753518 373900955 68360000 5450518 26571488 268290375 324831362 608075608 285396308 751626152 274676401 1026302553

63.22 458927320 58.13 412567869 53.40 26.22 218916018 27.73 202746171 26.24 5.42 63197828 8.00 42.42 7.76 1.00 3.01 30.44 36.85 68.99 32.38 85.27 31.16 303209130 81537000 6944008 26839978 228258544 224951483 493381832 212745370 537389832 197268478 734658310 38.40 10.33 87.95 3.40 28.91 28.49 62.49 26.95 68.06 24.99 93.05 209821698 81537000 17726938 27374186 198890316 218334492 502446643 170425087 458910780 140354037 599264817 27.16 10.55 2.29 3.54 25.74 28.26 65.04 22.06 59.40 18.17 77.57

881431085

789529079

772543176

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1. Interpretation :1) Shareholders Funds :a) Share capital :- The ratio suggest company s share capital. This ratio is decreased in 2009 2010-2011. In 2009 - 10.47 but after this year it decreased to 9.84% & 8.81% in the next two year. b) Reserve & surplus :- This ratio suggest company s reserve & surplus of the firm. This ratio is increase after 2009 69.91% to 72.08 % to 77.11 % in the year of 2010-2011 and there difference is 7.21%. 2) Loans Funds :a) Secured loan :- This ratio suggest the funds of the firm . In 2009 the ratio has been 19.53% after this year the ratio was decreases to 7.95% in 2010 and in 2011 the ratio increases to 14.08%, here secured loan has been fluctuated in these year. b) Unsecured loan :- This ratio suggest the funds of the firm unsecured loan is fund of the
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company. In 2009 , the ratio was 0.078% after this year it was increase to 10.13% in 2010 and in 2011 it also increases to 14.08% difference of 2009 to 2010 is 14.002% it s a large difference. 2. Application Of Funds :1) Fixed Assets :a) Gross assets :- This ratio suggest company s gross block of the firm. This ratio has been increase in the year 2009 , in 2009 the ratio was 53.40 % after in 2010 it was slightly decreased to 58.13% & after this ratio was increased to 63.22% in 2011, the difference between the year was 9.82%. b) Less Deprecation :- This ratio suggest company s deprecation of the firm. Deprecation is less in gross block. Here, in 2009 the company s depreciation was 26.24% and it increased to 27.73% in 2010 but after that it slightly decreased to26.22% in 2011.

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c) Add capital work in progress :- In 2010, current work in progress was 8% but in 2011 it had decreased to 5.42% . d) Net Block :- This ratio suggest company s net block of the firm. In the year 2009 the ratio of the Net Block was 27.16% and it increased to 42.42% in the year of 2011. 2) Investment :- As per the amount the investment is same in 2009 & 2010 but as per the percentage it was decrease to 0.22% in 2010 and after that in 2011 it fell down to 7.76%. 3) Differed Tax Assets:- This ratio suggest the company s differed tax assets less than differed tax liability, differed tax assets in the year was 2.29% and it jumped to the peak of 87.95% in 2010 and it fell down to 1.00% in 2011. 4) Differed Tax Liability :- This ratio suggest the company s differed tax liability is less in differed tax assets in this ratio the tax liability as per the percentage wise as well as the amount wise has been decreased. The difference of between the year of 2009 2011 is 0.53%.

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5) Current Assets , Loans & Advances :a) Inventories:- This ratio suggest company s current assets of the firm. Here the ratio of Inventors was 25.17% in the year of 2009 and it increase to 28.91% in the year 2010 and it continues to increase 30.44% in the year of 2011. b) Sundry Debtors:- This ratio suggest the company s sundry debtors of the firm. This ratio was increase after the year of 2009 and the difference of the ratio was 8.59% it s a large difference of sundry debtors.

c) Cash & Bank Balance:- This ratio suggest the company s cash & bank balance of the firm. This ratio was decrease after 2009 2.26% but after 2010 it was increase to 68.99% in 2011 the difference between the ratio was 6.5% of the year 20102011. d) Loans & Advances :- This ratio suggest company s loans & advances of the firm. In ratio, the ratio of loans & advances of company increases year by year in 2009 it the this the was

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22.06% and it increased to 32.38% in the year of 2011. e) Current Liability :- This ratio suggest the company current liability of the firm. In this ratio, the ratio of current liability of the firm in 2009 was 59.40% and it increases to 85.27% in the year of 2011. f) Net Current Assets :- This ratio suggest the company s current assets of the firm we can clearly show in this ratio that the ratio in the year of 20009 was increased to 93.05% in the year of 2010.

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Common size profit & loss A/c. of TTK healthcare Ltd.

Particular Income :Sale -Excise duty relating to sale Net sales Other income Expenditure :Goods consumption & excise duty Expenses Depreciation Transfer form revaluation reserve Profit before tax:Less provision of current year Deferred tax Pricing benefit tax Profit after tax Interpretation :-

2011(%) 2010(%) 2009(%) 100 0.01 99.99 1.63 101.62 52.39 41.46 0.65 0.02 7.14 2.35 3.39 2.39 4.74 100 0.09 99.91 1.49 101.40 53.23 41.31 0.74 0.02 8.24 2.12 0.41 2.53 3.62 100 0.12 99.88 2.28 102.16 54.24 41.05 0.82 0.02 5.17 0.38 1.99 2.50 3.58

1. Income :1) Sales :- This ratio suggest the total sales of th firm. Sales is a income of the firm. Higher the more the efficient and to purchase of the

76

management. It seems that the ratio has been same as 100. 2) Excise duty relating to sale:- Excise duty relating to sale its one type of income. In this ratio the total difference between the year of 2009-2011 was 0.11%.

3) Net sales :- Net sales is one of the type of income. In this ratio, the ratio has been increased in the year 2009-2010 was 0.11%. 4) Other income :- The total income of firm s ratio higher and the efficient in the management. This ratio suggest the total and this ratio has been decreased from 102.16% to 101.62%.

2. Expenditure :1) Goods consumptions & excise duty :- This ratio suggest the expenditure of the good consumption and excise duty of the firm lower the ratio the efficient of the management. It seems that the ratio has been decreased from 54.24% to 52.39%.

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2) Expenses :- This ratio suggest the operating expense of the firm. Higher the expense more efficient is the management. It seems that the ratio has been increase from 41.05% to 41.46%. 3) Depreciation:- The depreciation ratio suggest the company s depreciation. This ratio has been decreased from 0.82% to 0.65%. 4) Transfer form revaluation reserve :-It comes in expenditure. It is subtracted from expenditure. We subtracted 0.02 form depreciation. 3. Profit before tax :1) Profit before tax:- This ratio suggest profit of the company before tax. Higher the ratio more efficient of the company. It seems that the ratio has been increased from 5.17% to7.14%. 2) Less previous for current tax:- Less provision for current tax is increasing in year 2011 & decreased in year 2009 was 0.38%.

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3) Deferred tax :- Deferred tax decreasing in year 2009 to 2011 difference between the year is 0.51%. 4) Pricing benefit tax:- Pricing benefit tax is decreasing in year 2009 to 2011 in 2009 percentage wise it was 2.50 % and in 2011 it is 2.39%.

5) Profit after tax:- Profit after tax is net profit of the co. which is increasing in year 2011 we can say that the work is in progress.

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Comparative statement of TTK healthcare Ltd.

Particular Sources of funds 1) Shareholders funds a) Share capital b) Reserve & surplus 2) Loan fund a) Secured loan b) Unsecured loan Total Application of funds 1) Fixed assets y Gross block y Less depreciation Total y Add capital work progress y Net block 2) Investment 3) Different tax a) Different assets b) Different liability

2011

2010

2009

8.81 77.11

9.84 72.08

10.47 69.91

14.08 100

7.95 10.13 100

19.55 100

63.23 26.22 37.00 in 5.42 42.43 7.76 0.62 3.01

58.13 27.73 30.04 8.00 38.40 10.33 0.88 3.40

53.40 26.24 27.16 27.16 10.55 2.29 3.54

2.40

2.52

1.25

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4) Current assets , loans& advances a) Inventories b) Sundry debtors c) Cash & bank balance d) Loans & advances

30.44 36.85 68.99 32.38

28.91 28.49 62.49 26.95

25.74 26.76 65.04 22.06

168.66 196.84 141.10 Less current liabilities provision a) Current liabilities b) Provisions & 85.27 31.16 68.06 24.99 59.40 18.77 77.57 63.53

Net current assets 5) Miscellaneous expenditure( to the extent net written off or adjusted.) Total 100

116.44 93.05 52.22 53.79

100

100

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Comparative profit & loss A/c. of TTK Healthcare Ltd. Particular Income :Sale -Excise duty relating to sale Net sales Other income Expenditure :Goods consumption & excise duty Expenses Depreciation Transfer form revaluation reserve Profit before tax:Less provision of current year Deferred tax Pricing benefit tax Profit after tax 2011(%) 2010(%) 2009(%) 100 0.01 99.99 1.63 101.62 52.39 41.46 0.65 0.02 7.14 2.35 3.39 2.39 4.74 100 0.09 99.91 1.49 101.40 53.23 41.31 0.74 0.02 8.24 2.12 0.41 2.53 3.62 100 0.12 99.88 2.28 102.16 54.24 41.05 0.82 0.02 5.17 0.38 1.99 2.50 3.58

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Introduction of cash flow

Introduction :- In financial accounting, a statement cash flows is prepared to measure the cash inflows and outflows form the operating, investing & financing activities of a business. The term cash as used in the statement of cash flows refers to both cash & cash equivalents. It provides relevant information in assessing a company s liquidity, quality of earning & solvency. The statement of cash flow summarizes all the transactions that affect cash.

Sections :- A statement of cash flow comprises of sections.

three

1) Cash flow from operating activities :- This sections includes cash flows from the principle revenue generating activities can be computed by two method one is direct method & the other indirect method. 2) Cash flow form investing activity :- cash flow from investing activities are in flows related to activities that are intended to generate income & cash flowing future. This includes can in flow out flows from sale & purchase of long term .

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3) Cash flows from financing activities :- These are the cash flows related transaction with stock holders & creditors such is issuance of share capital, purchase of treasury stock dividend payment.

For this last article in the series on the cash flows statement lets do a brief review of the importance & benefits we have discussed of the cash flow statement . The statement of cash flow is the final document prepared in the financial report set, & provides information that is a direct flow of information form the income, statement , owner equity statement of balance sheet, therefore , this report adds validity & accountability to the financial statement. Analysis investor, stock holders , potential investors & lenders use this report in order to assess the financial health of a business. Therefore, it is tremendously advantages to use the standard, method for generating the statement of cash flows & provide the additional credibility to the financial information.

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In the area of operating activities there are some numbers that will give you an indication of the daily operations of business & if the business is profitable the bottom line in this section title net cash from operating activities . Includes some information form the statement of earnings such as :1) Net earning, or the company s Profit & Loss. 2) Depreciation expenses. It also includes information that is calculated on the statement of owner s equity such as :1) Change in inventory 2) Change in accounts receivable 3) Change in accounts payable

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Benefits Of Cash Flow

As we have seen, cash flow statement is useful to management in short term planning of liquidity. It is prepared by comparing figures of last two years eg., it is a historical statement. Yet it is useful for cash forecasting. It s utility can be stated as follows:

 Efficient Cash Management: If the finance manger has a clear idea of cash receipts & payments resources can be efficiently managed.  Useful for internal financial management: The management can plan out payment of dividend, repayment of long terms loans, purchase of machines and equipment etc if it has good idea about the timing enough cash will avoid the possibility of borrowing funds at high rate of interest.  Information about cash receipts & payment: Such a statement will give information about the trends of cash receipts & payment. Such information is useful to the
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management in the meeting any future contingencies and also in sizing any profitable opportunity.  Useful for control: The historical cash flow statement prepaid for last year is useful for comparing the figure of cash budgets and points of difference may be located. His facilitates managerial control on the use of cash.  Ease in Obtaining funds: By comparing the figures of cash flow statement and cash budget, the cash planning and control becomes small effective. Liability are easily paid as and when they mature. This position improves and raises the prestige of the firm in the market in turn this facilitates raising of additional funds easily when needed.

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Cash flow of TTK Healthcare Particular Cash fowl form operating activities A) Net profit before tax Adjustment for Depreciation (profit)/loss on sale of assets (profit)/on sales of investment Provision for diminution value of investment Interest paid Dividend received 2011 2010 2009

2214.44 1550.23 1337.46 197.73 4.85 (92.65) 29.77 172.22 (5.11) 181.80 (4.38) 174.72 (18.50)

174.40 (0.77)

186.43 (20.12)

306.21 350.85 322.13 Operating profit before working 2520.65 1910.08 1659.58 capital changes (933.32) (29.58) 449.75 Traveled & other receivables (400.32) (293.68) 381.45 Inventories 2142.36 784.79 828.23 Trade payable Cash generated from operations 3329.37 2362.61 1656.61 Direct taxes paid (791.98) (459.80) 375.21 Cash flow before extra ordinary 2537.39 1902.81 1281.40 items Extraordinary items Net cash from operating activities 2537.39 1902.81 1281.40

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Particular B) Cash flow from investment activities:purchased of fixed assets sales of fixed assets provision for diminution in value of investment Interest / dividend received Investment in bonds/sales of investment C) Cash from financing activities:Reduction due to buy-back in share capital Securities premium Bank borrowing short term Public deposits /other loans Interest paid Dividend paid Net cash used in financing activities Net increase in cash & cash equivalent Cash & cash equivalents as at the beginning of the year Cash & cash equivalents as at the end of the year

2011

2010

2009

(923.55) (1128.24) (486.01) 9.63 12.11 23.73 (29.77) 5.11 224.42 714.16 0.77 1115.36 50.12 500.00 942.16

(187.12) (172.22) (316.95) 676.29

(32.15) (309.49) (82.35) (5.50) (174.40) (274.20) 878.09

(2.29) (18.79) 193.18 10.55 (186.43) (284.66) 299.72 39.52 4984.94 5024.46 39.52

1146.94 90.64 4933.82 5024.46 6080.76 4933.82 1146.94 90.94

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Interpretation :A) Cash flow from operating activities :- The operating activities in which working capital changes form 1920.08 lakh to 2520.65 lakh from year 2010- 2011 which means that the cash how is higher as compared to the previous year. B) Cash flow form investment activities :- as the invested funds in field assets in year 2010is 1128.24. Investment is done more in the year 2010 they any other years. Investment in year 2011 is 714.16 which is less than previous year.

C) Cash flow from financing activities :-Cash flow of the company TTK Healthcare Ltd in the year 2011, is higher than as compared to previous year. It is 1146.94 lakh in 2011, 90.64 lakh in 2010 and 39.52lakh in 2009 which is very less as compared to the years as compared to the year 2011. This means that co. cash flow is higher in financing activity.

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Ratio of TTK Healthcare Ltd at balance Particular 1.Liquid ratio:1) current ratio 2)liquid ratio 3) quick ratio 2. profitability ratio :Related to sales 1) Gross profit 2) Net profit 3) Operating profit Related to investment 1) Related to capital employed 2) Returns on shareholder s equity 3) Returns equity share capital 4) Return on total assets 5) Earning per share 6) Dividend per share 7) Dividend payout 8) Price earning ratio 4. Solvency ratio 1) Debt equity ratio 2) Capital guessing ratio 3) Proprietary ratio 4) Long term funds to fixed assets 5) Interest coverage ratio 6) Dividend coverage ratio 2009 2 1.57 1.09 2010 1.76 1.34 0.92 2011 1.60 1.24 0.81

3.59 96.19 19.74 12.68 97.37 12.61 9.74 5.59 0.26 24.32 80.38 3.68 8.17 times

3.62 95.36 24.31 14.11 47.53 13.77 11.29 3.39 0.29 9.71 81.91 2.34 9.89 times

4.74 94.49 27.08 18.44 189.57 18.66 18.96 4.08 0.22 16.38 85.92 2.36 13.86 times

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5. Activity ratio :1) Stock turnover ratio 2) Debtors ratio 3) Creditors ratio 4) Fixed assets turnover ratio 5) Current assets turnover ratio 6) Total asset turnover ratio

11.99 35 days 58 days 10.48 days 2.39 2.85

6.30 33 days 60 days 8.33 days 2.6 3.20

6.55 38 days 69 days 8.30 days 2.58 3.52

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Conclusion
It was a wonderful experience preparing this report on the company.TTK Healthcare Ltd. I came to know many new interesting report , understanding the importance at financial statement, by such statement one can understand the whole situation of the company . According to the present financial report TTK Healthcare Ltd. company is in good condition & will grow well in future. it had made growth of 7,65,44,677 as from 2009-2010 to 2010 2011. So its development can be seen gradually year after year.

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Bibliography
www.ttkhealthcare.com www.ask.com as on 24-8-2011 as on 24-8-2011

Books:-

F.M. Principle of management

-Sudurshan G. ready -khan & yen

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