Financial Statements

INTRODUCTION
Every organization irrespective of nature and mission may be viewed as financial

entity. Management of the organization is confronted with issue and decisions about sources
of finance, its capital structure and credit policy. In order to take strategic decisions the
management needs to assess the progress and the performance of the organization.
Financial statements provides summery of the accounts of a business enterprises. But
the accounts stated in the balance sheet and income statements are not self-explanatory, those
statements required treatment in order as certain the financial health of the organization.
There are many tools used to know about financial position and result operation. The main
tools analysis of common size statements and ratio analysis. All the tools help to know the
operations of the organizational particular position and also over period of time.
The focus of financial analysis is on key figures in the financial statements and the
significant relationship that exists between them. The analysis of financial statements is a
process of evaluating the relationship between the component parts of financial statements to
obtain a better understanding of the firms position and performance. Financial analysis is
the process of selection relation and evaluation. A financial statement is a compilation of data
which is logically and consistently organized according to the accounting principles.
An understanding of some financial aspects of a business firm. It may show a
position at a moment in time as in the case of a balance sheet or may reveal a series of
activities over a given period of time, as in the case of an income statement. Financial
statements are the major financial situations to stock holders, credited and the general public.
The majority of firms include extensive financial statements in their annual reports of them.
Financial statements are prepared primarily for decision making.
dominant role in setting the frame weak of managerial; decision.
They play a
But the information
provided in the financial statements is not an end in itself as no meaningful conclusions can
be drawn from these statements alone. However, the information provided in the financial
statements is of use in making decisions through analysis and interpretation of financial
statements.
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Financial analysis is the process of identifying the financial strengths and weakness of
the firm by properly establishing relationship between the items of the balance sheet and the
profit and loss amount. There are various methods or techniques used in analyzing financial
statements such as comparative statements, schedule of changes in working capital; funds
flow and analysis ration analysis.
Management creditors, investors and others to from judgment and about the operating
performance and financial position of the users of financial statements can get further insight
about financial strengths and weaknesses of the firm. Management should be particularly
interested in financial statements of the firm to make their best use and to be able to spot out
financial weaknesses of the firm to take suitable corrective actions. The future plans of the
firm should be laid down in view of the financial strengths and weaknesses of the firm by
properly establishing relationship between the items of the balance sheet and the profit and
loss account. Financial analysis can be undertaken by management of the firm, by parties
outside the firm owners, creditors investors and others.
FINANCIAL STATEMENT ANALYSIS

A financial statement is an organized collection of data according to logical and
consistent procedures. Its purpose is to convey an understanding of some financial aspects of
a business firm. It may, show a position of a moment is time as in the case of a balance sheet,
or many reveal a series of activities of over a given period of time, as in the case of an
income statement.
Financial statements are the outcome of summarizing process of accounting. In the
words of John N. Her, the financial statements provide a summary of the accounts of
business enterprise, the balance sheet reflecting the asset, liabilities and capital as on a certain
date and the income statement showing the results of operations during a certain periods.
Financial statements are prepared as an end result of financial accounting and are the major
sources of financial information of an enterprise. Smith and Asborne define financial
statements as_ the product of financial accounting in asset of financial statements prepared
by the accountant of a business enterprise that purpose to reveal the financial position of the
enterprise.
Financial statements are also called financial reports. In the words of Anthony,
financial statements essentially are interring reports.
Characteristics of Financial Statements: The financial statements are prepared with a view to depict financial position of the
concern. A proper analysis and interpretation of these statements enables a person to
judge the profitability and financial strength of the business. The financial statements
should be prepared in such away that they are able to give a clear and orderly picture of
the concern. The ideal financial statements have the following characteristics.
1. Depict True Financial Position: -
The information contained in the financial statements should be such that a true and
correct idea is taken about the financial position of the concern. No material information
should be with held while preparing position of the concern. No material information should
be with held while preparing these statements.
2. Effective Presentation: The financial statements should be presented in a simple and lucid way so as
to make them easily understandable. A person who is not well versed with accounting
terminology should also be able to understand the statements without much difficulty. This
characteristic will enhance the utility of these statements.
3. Relevance: Financial statements should be relevant to the objectives of the enterprises.
This will be possible when the person preparing these statements is able to properly
utilize the accounting information. The information, which is not relevant to the
statements, should be avoided; otherwise it will be difficult to make a distinction between
relevant and irrelevant data.
4. Attractive: The financial statements should be prepared in such a way that important
information is underlined so that it attracts the eye of the reader.
5. Easiness: Financial statements should be easily prepared. The balances of different
ledger accounts should be easily taken to these statements. The calculation work should
be minimum possible while preparing these statements. The size of the statements should
not be very large. The columns to be used for gibing the information should also be less.
This will enable the saving of time in preparing the statements.
6. Comparability: The results of financial analysis should be in a way that can be compared to the
previous years statements. The statement can also be in compared with the figures of other
concerns of the same nature. Sometimes budgeted figures are given along with the present
figures. The comparable figures will make the statements more useful. The Indian companies
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Act. 1956 has made it obligatory to give previous years figures in the balance sheet. The
comparison of figures will enable a proper assessment for the working of the concern.
7. Analytical representation: The information should be analyzed in such a way that similar date is presented at the
same place. A relationship can be established in similar type of information. This will be
helpful in analysis and interpretation.
8. Brief: If possible, the financial statements should be presented in brief. The reader will be
able to form an idea about the figures. On the other hand, it figures are given in details
then it will become difficult to judge the working of the business.
9. Promptness: The financial statements should be prepared and presented at the earliest possible.
Immediately at the close of the financial year, statements should be ready.
Importance of financial statements:

The information given in the financial statements is very useful to a number of parties
.These are as follows:
Owners: The owners provide funds for the operations of a business and thy wants
to know whether their funds are being properly utilized are not . The financial
statements are prepared from time to time to satisfy their curiosity.
Creditors: Creditors (i.e., suppliers of goods &services on credit bankers and other
lender of money)want to know the financial position of a concern before giving loans
or granting credit. Financial statements help them in judging such position.
Investors: Perspective investors who want to invest money in a firm would like to
make an analysis of the financial statements of that firm to know how safe proposed
investors will be.
Employees: Employees are interested in the financial position of a concern they

serve , particularly when payment of bonus depends upon the size of the profit earned.
Government: Central and state government are interested in financial statements

because they reflect the earnings for a particular period for purpose of taxation . More
over, these financial statements are used for compiling statistics concerning business,
which in town, help in compiling national accounts.
Research scholars: The financial statements being a mirror of the financial

position of a firm are of immense value of the research scholar who wants to make to
study into financial operation of a particular firm.
Consumers: Consumers are interested in the establishment of good accounting

control so that cost of production may be reduced with the resultant reduction of the
prices of goods they buy.
Types of financial statements:

Financial statements primarily comprise two basic statements.
1. The position statement or the balance sheet and
2. The income statement or the profit and loss account.
However, specified that a complete set of financial statements must include.
1. A balance sheet
2. An income statement
3. A statement of changes in financial position.
1. Balance Sheet:
An American institute of certified public accountants defines balance sheet as a
tabular statement of summary of balances carried forward after an actual and constructive
closing of books of account and kept according to principles of accounting. The purpose of
balance sheet is the show the resources that the company has i.e., its assets and from where
there resources come from i.e., its liabilities and investments by owners an d outsiders.
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The balance sheet is one of the important statements depicting the financial strength
of the concern. It shows on the one hand the properties that it utilizes and on other hand the
sources of these
properties.
The balance sheet shows all the assets owned by lthe concern and all the
liabilities and claims it owes to owners and outsiders. The balance sheet is prepared on a
particular date.
2. Income statement:
Income statement is prepared to determine the operational position of the concern. It
is statement of revenues earned and the expenses incurred for earning that revenue, if there is
excess of revenues over expenditures it will show a profit and if the expenditures are more
than the income then there will be a loss. The income statement is prepared for a partition
period, generally a year. When income statement is prepared for the year ending then all
r3evenues and expenditures falling due in that year will be taken into account irrespective of
their receipt or payment.
The income statement may be prepared in the form of a manufacturing account to find
out. The cost of production, in the form of trading account to determine gross profit or gross
loss. In the form of profit and loss account determine net profit or net loss, a statement or
retained earnings may also be prepared to show the distribution of profits.
3. Statements of changes in financial position:The basic financial statements, the balance sheet and the profit and loss account or
income statement of the business operations by summarizing revenues and expenses of the
company. The balance sheet gives a static view of the sources and users of finances. The
profit and loss account but besides profits owners equity may change due to other factors
such additional investment or withdrawal of profits. An additional statements in needed to
show the changes in assets, liabilities and owners equity between dates of two balance sheets.
Rhen a statement is referred to as the statement of changes in financial position. Changes in
assets and liabilities resulting form financial and investment transactions during the period.
The most commonly used forms of the statement of changes in financial position are called
funds flow statement and the cash flow statements.
Techniques of financial analysis:

The analysis and interpretation of financial statement is used to determine the
financial position and result of operations as well. A number of methods or devices are used
to study the relationship between different statements. An effort is made to use those devices,
which clearly analyze the position of the enterprise. The following methods of analysis are
generally used.
1. Comparative statement
2. Common size statement
3. Trend analysis
4. Funds flow statement
5. Cash flow statement
6. Ratio analysis
1. Comparative statement:
Comparative statements are those statements which are designed to provide time
perspective to the consideration of various elements of financial position embodied in such
statements.
Both the income statement and balance sheets be prepared in the form of
comparative financial statements.
Comparative income statements:

The income statement describes net profit or net loss account of operations. A
comparative income statement will show the absolute figures for two or more periods. The
absolute change from one period to another and if change in terms percentages. Since the
two or more period can quickly ascertain whether sales have increased or decreased whether
cost of sales has increased or decreased etc.
Comparative balance sheet:

The comparative balance sheet analysis is the study of the extend of the same items
groups of items and computed items in two or more balance sheet of the same business
enterprise on different dates.
The changes in periodic balance sheet the conduct of a
business. The changes can be observed by comparison of the balance sheet at the beginning
and at the end of a period and these changes can help in forming an opinion about the
progress of an enterprise. The comparative balance sheet has two columns for the data of
original balance sheet. A third column is used to show in increasing figures. The fourth
column may be added for giving percentages of increases or decreases.
2. Common size statement:

Common size statements financial tool of studying key changes and trends in
financial position of a company.
In common size statement, each item is stated as a
percentage of the total of which that item is a part each percentage exhibits the relation of the
individual item to its respective tool. The common size percentage method represents a type
of ratio analysis. This statement component percentage or100 percent statement.
1. State the total of the statement as 100
2. Compute the ratio of each item to the total in the statement. Common size statement can be
used both for vertical and horizontal analysis.
Common size Balance sheet:

Common size balance sheet is prepared by stating the total assets as 100 and reducing
individual assets into percentages of the total. The common size balance sheet percentage
shows the relation of each asset item to total assets and of each liability and owners equity
item to total liabilities and owners equity. Comparison of common size statement of a single
enterprise over the years is valuable in that it reveals the changing proportions of components
within groups of assets and liabilities.
3. Trend Analysis:
The financial statements may be analyzed by computing trends of series of
information. This method determines the direction upwards or downward and involves. The
computation of the percentage relationships that each statement item bears to the same item
in base year. The information for a number of years is taken one year. The figures of the base
year are taken as 100 and trend ratios for other years are calculated on the base of the year.
The analyst is able to see the trend of figures whether upward or downward.
4. Funds flow statement:

The statement of changes in financial position a business enterprise. The sources and
uses of working capital between dates of two balance sheets are known as the funds flow
statement. A projected statement of changes in working capital is immensely useful in the
firms long range planning. The flows of in order to plan the repayment schedules of its longterm debt. The major sources of working capital are the firms net profit from operations.
The ultimate success of a company depends upon its ability to earn profit. The expense items
that do not involve working capital should be added to not profit.
5. Cash flow statement:

The statement of cash flows is useful for short run planning. A firm
needs sufficient cash to pay debts naturing in the near future to pay interest and other
expenses and to pay dividend to share holders. A statement of changes in financial
position on cash basis, commonly known as the cash flow statement. Summarizes the
causes of changes in cash position between dates of the two balance sheets. It indicates
the sources and user of cash. The cash flow statement is similar to the funds flow
statements expect that it focuses attention on cash instead of working capital or funds.
This statement analyses changes in non-current accounts as well as current accounts to
determine the flow of cash.
6. Ratio Analysis: Financial ratios are useful measure to provide a snapshot of a companys financial
position. A tool used by individuals to conduct a quantitative analysis of information in a
companys financial statement. Ratios are calculated from current year numbers and are then
compared to previous year, other companies, the industry, or even the economy to judge the
performance of the company. Ratio analysis is predominately used by proponents of
fundamental analysis.
Financial ratios give out a detail report about with reference to firms performance
and financial situation. Financial ratios are exercised to examine the trend and for comparing
the firms financial status with the other firms. Thus, by such means, it will not be difficult to
come across the potential problems.
CLASSIFICATIONS OF RATIOS:
Ratios are variously classified into different types based upon the endues as well as
the nature of base adopted. Generally ratios are classified into four categories:
Liquidity Ratios
Leverage Ratios
Activity Ratios
Profitability Ratios
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A.
Liquidity Ratios
Liquidity Ratios measure the firms ability to meet its current obligations. We analyze
the liquidity needs by the preparation of cash budgets, cash and funds flow statements, but we
can calculate liquidity ratios, by establishing a relationship between cash and other current
assets to current obligations, provide a quick measure of liquidity. A firm should ensure that it
does not suffer from the lack of liquidity and that it does not have excess liquidity. There
should be a proper balance between high liquidity and lack of liquidity to measure the
liquidity of the firm.
The following ratios are calculated the most common ratios which indicate the extent
of liquidity or lack of it.
(i)
Current Ratio
It may be defined as the relationship between current assets and current liabilities.
This ratio is known as working capital ratio. It is a measure of general liquidity and is most
widely used to make the analysis of a short-term financial position or liquidity of a firm. It is
calculated by dividing the total of current assets by total of the current liabilities. Thus,
Current Ratio = Current Assets / Current Liabilities
A current ratio of 2:1 is considered as ideal. If current ratio is less than 2, it indicates
that the business does not enjoy adequate liquidity. However, a high current ratio of more
than 3 indicates that the firm is having funds and has not invested them properly.
(ii)
Quick Ratio
It is also known as acid test or liquid ratio is more rigorous test of liquidity than the
current ratio. Quick ratio may be defined as the relationship between the quick/ liquid assets
and current/ liquid liabilities. An asset is said to be liquid if it can be converted into cash
within a short period without loss of value. Inventories cannot be termed to be liquid assets
because they can not be converted into cash immediately.
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Quick or Acid Test Ratio = Quick Assets / Current Liabilities

A quick ratio of 1 is considered as ideal. A quick ratio of less than 1 is indicative of
inadequate liquidity of the business. A very high quick ratio is also not advisable.
(iii) Absolute liquid Ratio
Cash is the most liquid asset, a financial analyst may examine cash ratio and its
equivalent to current liabilities. Trade investment and marketable securities are equivalent of
cash.
Absolute liquid Ratio = (Cash + Bank balances) / Current Liabilities
(iv) Net Working Capital Ratio
The difference between current assets and current liabilities excluding short-term bank
borrowings is called net working capital (NWC) or net current assets (NCA). NWC is
sometimes used as a measure of a firms liquidity. It is considered that, between two firms,
the one having the larger NWC has the greater ability to meet its current obligations. This is
not necessarily so, the measure of liquidity is a relationship, rather than the current liabilities.
NWC Ratio =
Net working capital

Net assets
Net working capital = Current assets- Current liabilities

Net assets
Fixed assets + (Current Assets Current Liabilities)
B. Leverage Ratio
The short term creditors like bankers and suppliers of raw material are more concerned
with the firms current debt paying ability. On the other hand long-term creditors like
debenture holders, financial institutions etc. are more concerned with the firms long- term
financial strengths in fact a firm should have a strong short-term as well as long-term
financial position of the firm like financial leverage or capital structure are also calculated
their ratios indicated mix of fund provided by owners and lenders.
(i)
Debt-Equity Ratio
(ii)
Capital employed to net worth ratio
(iii)
Interest coverage ratio
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(i) Debt-Equity Ratio

It reflects the relative claims of creditors and share holders against the assets of the
business. Debt, usually, refers to long term debt. Equity includes equity and preference share
capital and reserves.
Debt- Equity Ratio:
Long term debt

Share holders founds
Shareholders found = equity+ general reserve+ dividend reserve+ net profit

A debt equity ratio of 2:1 is considered ideal. A firm with a debt equity ratio of 2 or less
eposes its creditors to relatively lesser risk. A firm with a high debt equity ratio exposes its
creditors to greater risk.
(ii)Capital Employed to Net Worth Ratio
It express how much funds are being contributed together by lenders and owners for
each rupee of the owners, contribution. This can be finding out by dividing capital employed
by net worth.
Capital Employed to Net Worth Ratio:
Capital employed
Net worth
Capital employed= fixed assets+ net working capital

Net worth=shareholders founds
Shareholders found = equity+ general reserve+ dividend reserve+ net profit(iii)Interest
Coverage Ratio
It indicates the ability of a firm to meet its interest obligation. It used to test the firms
debt servicing capacity.
Interest Coverage Ratio:
EBIT
Interest
EBIT=Earnings before interest and taxes

EBIT=net profit+ Interest+ taxes
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C. Activity Ratios (or) Turnover Ratios

Turnover ratio is also referred to as activity ratios or asset management ratios,
measure how efficiently the assets are employed by a firm. These ratios are based on the
relationship between the level of activity, represented by sales or cost of goods sold, and
levels of various assets. The following are the various types of turnover ratios.
(i)
Inventory Turnover Ratio:

Stock turnover ratio indicates the number of times the stock has turned over into sales
in a year.
Inventory Turnover Ratio = Cost of Goods Sold / Average Stock
Cost of Goods Sold = Sales-Gross Profit
Or
Cost of Goods sold = Opening stock + purchases closing stock

Average Stock = Opening stock + closing stock/2
In case, information regarding cost of goods sold is not known, sales may be taken in
the numeration. Similarly, if average stock cant be calculated, closing stock conversion
period. It is calculated as number of effective days in a year divided by number of days in a
year.
A stock turnover ratio of 8 is considered ideal. A high stock turnover ratio indicates
that the stocks are fast moving and get converted into sale quickly. However, it may also be
on account of bolding low amount of stocks and replenishing stocks in larger number in
statements.
(ii)
Debtors Turnover Ratio

Debtors turnover ratio expresses the relationship between debtors and sales. It is
calculated as
Credit sales
Debtors turnover ratio: Average debtors

Net credit sales imply credit sales after adjusting for sales returns. In case information
on credit sales is not available, sales can be taken in the numeration.
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As high debtors turnover ratio or a low. Debtors turnover ratio or a low debt
collection period is indicative of a sound credit management policy. A debtors turnover ratio
of 10-12 and a debt collection period of 30-60 days is considered ideal.
Debtors turnover indicates the number of times debtors turnover each year. Generally,
the higher the value of debtors turnover, the more efficient is the management of the credit
(iii) Debtor Collection period ratio
The average number of days for which books debts remain outstanding is called
the average collection period.
= 365 / Average Debtors
(iv) Fixed Assets Turnover Ratio

By this ratio we can identified the efficiency of utilizing the fixed assets in the firm
separately to generate the sales. The ratio is defined as
= Net Sales / Net Fixed Assets
(v) Total Assets Turnover Ratio:
This ratio shows the firms ability in generating sales from all financial resources
committed to total assets.
= Net sales / Total assets
D. Profitability Ratios
Profitability reflects the final result of business operations. There are two types of
profitability ratios: profit margins ratios and rate of return ratios. Profit margins ratios show
the relationship between profit and sales. The two popular profit margin ratios are: gross
profit margin ratio and net profit margin ratio. Rate of return ratios select the relationship
between profit and investment the important rate of return measures are: return on total
assets, earning power, and return on equity.
Generally, there are two types of profitability ratios.
Profitability in relation to sales
Profitability in relation to investment
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(i) Gross Profit ratio

It is calculated by dividing the gross profit by sales.
Grass profit ratio:
Gross profit
100
Net sales
A firm should have reasonable gross margin to ensure adequate coverage for
operating expenses of the firm and sufficient return to the owners of business, which is
reflected in the net profit margin.
(ii) Net Profit ratio

Net profit is obtained when operating expenses, interest and taxes are subtracted from
the gross profit. This ratio indicates the managements efficiency in manufacturing,
administering and selling the products. This ratio is the overall measure of the firms ability
to turn each rupee into net profit.
Net Profit ratio=
Net profit
100
sales
(iii) Return on Equity ratio

This ratio indicates how well the firm has used the resources of owners. And also
gives the shareholders and idea if the return of founds .as well as useful for inter-firm and
inters industry comparisons.
ROE =
Profit after tax

x100
Net worth
(iv) Return on capital Employed ratio

The ratio is calculated by dividing the net profit with total capital employed in the
firm. Net profit means profit means profit after tax but with interest. Capital employed is
founded by subtracting intangible assets from investment.
Return on capital employed ratio:
Net profit interest

100
Capital employed (or) return on investment
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NEED FOR THE STUDY
To get better insight about financial position of the company.
In order to know the operational efficiency of the business .
To know the firms performance and assets in its present financial position .
To know the major players and the future focus of seeds industry among the
competitors .
This also helps to know the organization in the future future forecasting and
implementing the strategies for the future action .
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OBJECTIVES OF THE STUDY

The present study is intended to examine the overall financial performance of the
TULASI Pvt. Ltd. From the beginning of the study to till now, the following are the specific
objectives of the study.
The study and analyse the financial performance of the TULASI SEEDS PVT. LTD
To evaluate the liquidity position of the company.
To understand the operating efficiency of the company
To assess the solvency position of the company.
To make a year wise comparitive study of the operating performance and financial
position of the company during the period 2006 to 2010by preparing comparitive income
statements and common size balance sheets.
SCOPE OF THE STUDY

The study of financial performance evaluation is confined to the financial position of
T.S.P.L
The study confined only for the period 5 years i.e., from 2006 to 2010.
The Financial Performance Evaluation is carried out on the basis of secondary data
i.e., the annual reports of T.S.P.L
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The study has been focused on ratio analysis, common size analysis, comparative
analysis and trend analysis in T.S.P.L.
METHODOLOGY OF THE STUDY

Methodology is a systematic procedure of collecting information in order to analyze
and verify phenomena. The study carried with the co-operation of the management who
permitted to carry on the study and provided the requisite data. The data is collected from the
following sources.
Sources of data collection

There are two types of the data used , they are as follows:
1. Primary data
2. Secondary data
1. Primary data:
Primary data is the data which has been collected directly from the people of the
organization . It is also called as first hand data .
The primary data is collected by discussions with the functional manager officers,
staff & members of the organization .
2. Secondary Data:
Most of the secondary data has been collected from:
Annual reports of the company.
Financial statements , auditor reports , information vouchers of the

organization .
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Website.
LIMITATIONS OF THE STUDY

Some of the important limitations of financial analysis are however summed
up as below.
It is only a study of internal reports.
Financial analysis is based upon only monetary information and non-monetary factors
are ignored.
It does not consider changes in price level.
Analysis is only a means and not an end itself. The analyst has to make interpretation
and drawn his conclusions. Different people may interpret the same analysis in
different ways.
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SEED INDUSTRY IN GLOBAL PERSPECTIVE:

The population has been growing at a faster rate in the country. To
increase the production accordingly an All India Co-ordinate organization has been
established in 1951 with the assistance of Rockefeller Foundation which belongs to
America. As a part of this project, it produced new seeds of maize in 1961 and cotton seeds in
1971.
With a view that the state governments are unable to meet the demand
for seeds correctly, two associations have been established with the help of
Rockefeller
Foundation. They are National Seed Association 1963 and State Farm Corporation of
India, 1969. Due to the Development Programme which came into existence in 1988,
many multinational corporations have stepped into the seed industry. At present there are
more than 700 multinational corporations in India organizing seed business directly or
industry. Nineteen multinational companies have been made an agreement with the Indian
seed industries and have been enjoying the leadership in the seed market. Monsanto, an
American multinational corporation, has acquired one-fourth part of the MICO seeds
industry, one of the biggest seed industries in India. The acquisition value given by the
Monsanto Corporation is more than 17 times to the real value.
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SEED INDUSTRY IN INDIA:

Indian seeds industry has grown in size and level of performance over
the past four decades. India stands in the 8th position all over the world in the production of
different variety of crops. Again in each crop there are thousand of varieties. To co-ordinate
the seeds research centres and private organizations in the country and to support the
expanded activities, the National seed Program was launched in 1967 with the financial
assistance of the World Bank. In 1960 many private organizations have participated in the
production of seeds. Many seed industries have laid a strong foundation in the country.
Following are some of the major seed industries in India.

1.
MICO seeds private Limited, Mumbai.
2.
Monsanto holdings private Limited, Mumbai.
3.
Namdhari Seed Corporation limited, Bangalore.
4.
National Seeds Corporation limited. New Delhi.
5.
Rallies India limited, New Delhi.
6.
Sungro seeds limited, Delhi.
7.
Cargill hybrids private limited, New Delhi.
8.
Pioneer India limited, Kolkata.
9.
Proagro seeds private limited, Chennai.
10. Sasys seeds private limited, Bangalore.

11. Sinjent India limited, pune.
12. Nunhams seeds private limited, Gurgaon.
SEED INDUSTRY IN ANDHRA PRADESH:
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In Andhra Pradesh the seed industries are many in number. Though

Andhra Pradesh is one among the states in India who have been producing different varieties
of crops. It does not have the major seed industries in it when compared to other states. Many
seed have formed recently in the state. Also the state is growing industrially and there is
sample scope and potential for the entry and success of new industries.
The crop producing seasons are different for different states. In Andhra
Pradesh the crop producing seasons starts from June and ends with the month of September.
Generally the rain fed crop in situated in the irrigated crop may not have better results when
compared. The stock to be sold by the seed industries is kept ready during the starting of
years as the period during which the demand will be more fall between march and august.
The industries in the state market with other states, which form the boundaries of it. The
selling period of those states will vary. The following are some of the seed industries in
Andhra Pradesh
Indo American hybrid seeds (India) Pvt. Ltd, Hyderabad.

Seed works India limited, Hyderabad.
Mourya agri-tech., Hyderabad.
Sriram Bioseed genetics India limited., Hyderabad.
Nath seeds limited, Hyderabad.
Jk seeds limited, Secunderabad.
Nugeveedu seeds limited, Hyderabad.
Tulasi seeds Private limited, Guntur.
Venus crane seeds Pvt. Ltd, Guntur.
Tammareaddy seeds, Vijayawada.
Gopikrishna seeds, Mahaboobnagar.
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The prospects of the seed industry would require changes in government policy, facilitating
its development and removing controls and restrictions. In brief seed industry requires simple
policy legislation.
GROWTH:
The release of high yield dwarf varieties of wheat and rice by the mid 1960s gave
further impetus to the growth of seed industry. This period also saw the constitution of the
seed review team, enhancement of seeds act.1996 for regulating the quality of seed and
formation of the National Commission of
agriculture. This was the period in which the
private sector took significant steps into the seed business.
The 1980s witnessed two more important developments viz., granting of permission
to MRTP/ FERA companies for investment in the seed sector in 1987 and the introduction of
NEW POLICY on seed development in 1988. The new policy on seed development while
helping liberalize import of vegetable and flowers seeds in general and seeds of others crops
in a restricted manner encouraged global seeds companies to enter the seed business of India.
CURRENT STATUS:
To supply the seeds necessary for the five hundred thousand Indian villages is a big
problem. Storage, transportation and timely distribution of pure seed from village to village
calls for careful organization with in the state department of agriculture and the willing cooperation of farmers.
Indians seed industry has grown in size and level of performance over the past four
decades. It represents a blend of private and public sector companies/ corporations. The
private sector comprises approximately 140 seed companies, which includes national, global,
regional and other seed producing and/ or selling companies. The industry has made
impressive strides from modest beginning in 1962-63 to over 5 lakh hectares in seed
production in 1995-96. The quantum of seed distributed also grew from 14 lakh quintals
24
during this period. On the inputs supply the certified quality seeds distribution touched anew
high of one million tones during the year 2000-2001. It was 0.91 million tones the previous
year.
ROLE OF THE GOVERNMENT:

To achieve self-sufficiency in the production through planned programmes, the
distribution of quality seed was rightly considered as a key factor by the government. The farsighted and liberal policies of government of India has always laid emphasis to build a sound
seed industry in the country and has supported both public and private sector organizations to
develop and to meet the increasing seed demand and also to produce surplus stocks require
for export.
To support expanded activities the National seed programme was launched with the
financial assistance of the world bank (International Bank for Reconstruction and
Development). In order to make available the right quality of seed to the Indian farmers in
adequate quantities and at reasonable price in time. The government of India took various
steps including promulgation of Seed Act during 1996, which became operative throughout
the country from October 1969. The main objective of the act is to produce quality seed of
different crop varieties under a system of seed certification and testing is voluntary but the
farmers have recognized the importance of quality seed to get higher production with limited
resources available at their end.
High yielding varieties are being released for cultivation in quick succession by
various agricultural universities and ICRA institutions through massive research project and
screening of planning materials. Steps have been taken during early 1984 to bring seed with
in the purview of the essential commodities Act to strengthen the regulation of seed quality
and to economies production at derived levels.
CHALLENGES:
Implementing of new techniques requires dissemination and training for their
beneficial use. To achieve this goal radical change will be required in the existing extension
system. In many cases entirely new approaches for dissemination of knowledge will be
required. These will have to be constant learning an up gradation of skills to enable
transmission of knowledge to the user.
25
To realization of the prospects of the industry will also changes in the government
policy, which would facilitate the development of the Indian agriculture and seed industry.
The policy must aim at governing greater self-discipline and removing controls and
restrictions, which inhibit growth and development.
The seed industries and farmers from many years are facing many problems. A number
of multi-national corporations have stepped into our agricultural country to gain control over
the seeds and their distribution. Recently, a new variety of seeds have entered the country.
This created many new problems for the seed industry and farmers.
Generally, a seed may be used either as a food material or as a seed for
another crop. But now, the life in the seed is being taken out for making it to be used only as
a food material and not as a seed for another crop. These types of seeds are called genetic
change or genetic engineering seeds. For example, BT Cotton seed. The farmers are made to
purchase those seeds, which are manufactured by the corporation for their crops. Once the
farmers or industry have used these types of seeds, they face many problems. They have to
use only those pesticides, which are produced by that association for protecting their crops
from the pests, diseases etc. these types would use by the wide associations.
Company Profile
Tulasi seeds private limited was incorporated on 15 th may, 1992 under the proprietorship of
Sri Tulasi Rama Chandra Prabhu. There are other organizations, which are under the same
management; TSPL is also one among them.
Coastal packing was the first industry started by them in the year 1977. Later on
Chaitanya Packaging Private Limited and transport agencies were started in 1988. After that
white gold chits & finance came into existence. This institution holds 50% of total number of
shares of Tulasi seeds private limited.
The company was started with an initial investment of Rs.2lakhs. In the initial stage,
there was no processing plant. In the year 1994 it has been set up a processing plant equipped
26
with full machinery. Thirty acres of land being cultivated under the ownership of the
company. This year the company equipped their own laboratory for R&D.
AWARDS AND RECOGNITION:

The company ,TULASI SEEDS PVT.LTD had received following award:
Ministry of small scale industries, Govt. of India, given NATIIONAL AWARD 2005
for QUALITY PRODUCTS issued by Sri Pranab Mukherjee Union Minister for
Defence on 07-10-2006 at New Delhi.
MAIN OBJECTIVE:
The main objective of the company is to provide pure quality and certified seeds to
the farmers. The quality standard of the company is to provide perfect quality seeds.
LOCATION OF THE COMPANY:

The processing plant and research farm are at Ameenabad. They are located in
Dokiparru in Medikonduru mandal of Guntur district in the state of Andhra
pradesh. It is
only 45km from Vijayawada, which is industrially located.The registered office named
TULASI HOUSE is located at 4th lane of Arundelpet Guntur. It is nearer to the railway
station. The zonal office is situated at Hyderabad. The branch office is situated at Nagpur in
the state of Maharastra.
27
FINANCIAL OBLIGATIONS:
1. No expenditure was incurred during the year in foreign currency.
2. The contingent liabilities at the end of the year were nil.
3. The amount due by company to is units as nil.
4. The company has paid the interest and commissions regularly to the respective
parties.
The company has introduced own branded seeds in the local market along with the partial
introduction of them in the states of Maharastra, Madhya Pradesh and Karnataka. It has made
good progress in the previous year from the own hybrids of Cotton Seeds and established its
own good will in the market. The company is confident of achieving better results in the
current financial year in the view of the improving marketing conditions and the companies
strategically developed network in various areas. It has been taking all necessary steps for
improving quality of the products and services.
TSPL ACCOUNTING POLICIES:

1. Accounting convention:
In Tulasi seeds Pvt. Ltd., the financial statements are prepared on historical cost
conventions and in accordance with generally accepted accounting principles and the
provisions of the companies act, 1956.
2. Fixed assets:
In TSPL, fixed assets are stated at cost of acquisition less accumulated depreciation.
3. Depreciation:
In TSPL, Depreciation in accounts of straight line method at the rate
the number specified in Schedule XIV of the companies Act 1956.
4. Investments:
28
and in
Long-term investments in TSPL are stated at cost and income thereon is

accounted for on accrual. Provision towards decline in the value of long-term
investments is made only when such decline is other than temporary.
5. Inventories:
Values of Inventories are made as under:
(a) Raw materials, work-in-progress and finished goods are valued at cost or net
realizable value whichever is lower.
(b) Stores and spares at cost.
6. Sales in TSPL:
Sales and inclusive of Excise duty, packing charges and sales tax.
7. Interest and Discount:
Interest payable and receivable and discounts payable and receivable are taken
into account while preparing financial statements.
8. Preliminary Expenses:
Preliminary expenses are amortized over a period of ten years.
9. Research and Development Expenditure:

Revenue expenditure is charged to profit & Loss Account and Capital expenditure
is added to the cost of fixed assets in the year in which it is incurred.
10. Auditors Fee:
The company accounts are audited by M/s V.Rao & Gopi. It pays the auditors
Rs.10, 500/- per year as remuneration.
FUNCTIONAL AREAS:
1. MARKETING: The company mainly markets its products from its processing plant at Ameenabad. The
consumers come to the registered office of to the processing plant and place their order. The
company has its own trucks and vans for the transportation purposes. It means quick delivery
of the materials ordered by the consumers through these trucks and vans. If any unforeseen
29
demand arises and orders are placed in plenty, it consults the Chandra Transport Agency for
the delivery of the material ordered.
The prices are fixed basing on its competitors and the variations in the prices of the
goods in the market. The company does advertising of seeds. The advertisement relating to
the company seeds are given in daily newspapers like VAARTHA and monthly journals like
ANNADAATA, etc. The advertisement and business promotion expenses are included in the
selling and distribution expenses while preparing the financial statements. The advertisement
expenses during the year incurred by the company are less than the previous year. The
packing of the seeds is the last stage in processing. The packages are kept in corrugated boxes
and sent for delivery to consumers. These packing expenses are included in the sale price.
The distribution is the main function in the marketing of seeds of the company. If
maintains good relations with its dealers, distributors and farmers. The company conducts
and organizes the meetings where the farmers, dealers and distributors come for the
discussions. This facilitates good understanding between them and finally leads to the overall
development of both the company and the members. The farmers and dealers directly
approach the company and reserve the material they want to purchase by marketing advance
payments.
2. ADMINISTRATION: Recruitment in Tulasi seeds Pvt. Ltd. is done mainly through internal sources. It has
good relations with its employees, workers, farmers, dealers and distributors. Promotion is
mainly based on seniority. It maintains farmers guesthouse at the processing plant.
Programmes were also arranged on relevant topics such as Safety, Role of employees, selfdevelopment, Productivity, Human relation, Health etc.
3. FINANCIAL: Tulasi seeds private limited use both its own capital and debt to perform its activities.
The company aims at wealth maximization, rather than earning more profits. It maintains
proper record if every transaction showing full particulars when wanted. The company has
adequate internal audit system commensurate with the size and nature of its business. While
gold chits and finance, one of the units maintained by the same management itself holds 50%
shares of the company having Rs 10/- face value each. The parties and employees to whom
30
loans and advances have been given by the company are repaying the principal amount
stipulated.
PRODUCTION: The production profile of Tulasi Seeds Private Limited deals with the Whole issue
of processing of various kinds of seeds, which includes the procedure, stockpile, etc., the
company processing of Cotton Seeds takes the major Place among all seeds. The different
types of seeds, which are being processed by The Company, are as follows.
PRODUCTS PROFILE: RESEARCH BT COTTON HYBRID

Tulasi 4Bt/ SRI TULASI Bt
Tulasi 117Bt/ NAMASKAR Bt
RSEARCH HYBRID COTTON
TCHH-4 (SRI TULASI)
31
TCHH-9 (BHASKAR)
RSEARCH HYBRID MAIZE
TMH-324 (SUDHA)
TMH-369 (NAGA)
RESEARCH HYBRID SUNFLOWER

TSFH-1212 (SURAJ)
RSEARCH HYBRID BAJRA
TBH-414
TBH-405
RESEARCH HYBRID SORGHUM
TSH-216 (SURABHI)
RESEARCH HYBRID BHENDI
TOH-522 (PAVANI)
IMPROVED CHILLI VARIETIES
TCV-335 (GOWTAMI)
TCV-002 (RAMYA)
Research & Development:

R&D division of TSPL was standard in 1994 with a view to develop Superior hybrids and
OPVs for higher yield, early maturity better quality And Resistance to biotic and Bio-tech
tresses in major crops. The R&D division has excellent infrastructure facilities within higher
qualified scientific manpower for conducting research in plant breeding and biotechnology.
DSIR (Department of Scientific and Industrial Research), Ministry of science & technology,
Govt of India has accorded recognizes To TSPLs In-house R&D division. Collaborate
research is also being carried out with international institutes like ICRISAT etc for hybrid
development program due to the continues efforts at R&D division, several high yielding
hybrids in crops like cotton, chilly, maize, sunflower, pearl millet, okra, etc, have been
developed.
32
Very popular and revolutionary Tulasi cotton research hybrids like Tulasi_4Bt [Sri
Tulasi Bt], Tulasi 9Bt[Bhaskar Bt], [central Zone] & Tulasi117Bt [Namaskar Bt], are being
cultivated in lacks of acres in major cotton growing areas in the country and these Tulasi Bt
cotton hybrids are showing excellent results in farmers fields. The R&D division has also
developed BG II version for Tulasi_4 BG II & Tulasi 9 BG II and these two hybrids have
shown the best performance in the large scale field trails in north, central and south Zones.
After GEAC approval, Tulasi_4 BG II and Tulasi 9 BG II hybrids would be made available
to farmers for kharif 2008 season.
AGRI BIOTECHNOLOGY:
Considering the importance of Agri Bio-Tech research,
Tulasi seeds had also entered in to the new era of Agri Bio-technology. Collaboration
was made with Monsanto Company for the transfer of Bt technology (Bollgard &
Bollgard II genes) in promising Tulasi cotton research hybrids. Spacious green
houses were built in 22000 sq. ft area at R&D division. Biotechnology laboratory
was constructed and several modern equipments like PCR, Gel Doc system, ELISA
reader, centrifuges etc, are available for conducting biotechnology research, several
cotton hybrids have been developed and the performance of these Bt hybrids is
extremely good. Another ten new promising Tulasi Bollgard II cotton hybrids have
been developed at R&D division and they are under field trails.
QUALITY ASSURANCE:
Tulasi products are known for their excellent quality. The seed production, processing,
quality tests and packing of seeds are done as per stringent quality assurance norms. Seed
quality implies to genetically, physical, physiological and health components. At most care is
taken at the time of seed production, processing, storage and distribution by continues quality
testing. A well-equipped quality control laboratory is available where quality tests like seed
germination; physical purity, moisture, health etc are conducted. Genetic purity tests (Grow
out tests) are conducted at Tulasi research firm. A separate quality control seed is available
for through checking at seed production fields and processing plants. Proper guidance is also
given for maintaining hygiene conditions at seed processing plants and seed storage
godowns.
33
LIST OF SHARE HOLDERS OF THE COMPANY as on 27-09-2007.

S.NO:
Name of the Share Holder
Tulasi Ramachandra Prabhu
Tulasi Aruna
Tulasi Yogish Chandra
Tulasi Krishna Chaitanya
No. of shares
56,40,000
1,20,000
19,40,000
13,00,000
Total Shares
90,00,000.
Table No: 4.1
COMMON SIZE INCOME AND EXPENDITURE AS ON 31-03-2006

PARTICULARS
31-03-2006
INCOME :SALES
OTHER RECEIPTS
CLOSING STOCK
TOTAL INCOME
EXPENDITURE:OPENING STOCK
PURCHASE SEEDS
PURCHASE CHEMICALS
PRODUCTION EXPENSES
ADMINISTRATION EXPENSES
SALARIES AND WAGES
SELLING AND DISTRIBUTION EXPENSES
34
PERCENTAGE
(%)
262953570.50
1347217.00
37083246.25
301384033.75
87.25
0.45
12.30
100.00
82551149.31
90579720.00
29437604.86
7349903.80
70474096.23
28.070
30.800
10.01
2.50
23.96
RESEARCH AND DEVELOPMENT EXPENSES

PRILIMINARY EXPENSES WRITTEN OFF
AMORTISATION OF TECHNICAL KNOW HOW
FINANCIAL CHARGES
DEPRECIATION
POLITICAL CONTRIBUTION
TOTAL EXPENDITURE
6699239.45
22200.00
833333.00
1222162.00
4833858.00
75000.00
294078266.65
2.28
0.01
0.28
0.42
1.64
0.03
100.00
PROFIT BEFORE TAX

LESS:- PROVISION FOR I.T
PROVISION FOR DEFFERED TAX LIABILITY
PROVISION FOR FBT
PROFIT AFTER I.T,D.T.L&F.B.T
ADD:-SURPLUS B/F
PROFIT AVAILABLE FOR APPROPRIATION
LESS:- ISSUEOF BONUS SHARES
PROPOSED DIVIDEND
BALANCE TAKEN TO BALANCE SHEET
7305767.10
3791628.00
280144.00
3233995.10
3771020.43
7005015.53
7005015.53
100.00
TOTAL PROFIT FOR APPROPRIATION
7005015.53
100.00
INTERPRETATION:
The table no: 4.1 is showing the common size income and expenditure of Tulasi
Seeds Pvt. Ltd., for the year 31-03-06. In this year out of 100% total income and expenditure,
purchasing seeds constitutes to 30.80% and Selling and Distribution expenses to 23.96%,
which is high.
Table No: 4.2:

31-03-2007
PARTICULARS
INCOME :SALES
OTHER RECEIPTS
CLOSING STOCK
TOTAL INCOME
PURCHASE SEEDS
PURCHASE CHEMICALS
PRODUCTION EXPENSES
35
PERCENTAGE
(%)
168509151.43
5499987.00
73137555.00
247146693.43
68.18
2.23
29.59
100.00
37083246.25
83252022.00
4278328.00
9179790.00
25094909.66
15.03
33.74
1.73
3.72
10.17
SALARIES AND WAGES

FINANCIAL CHARGES
DEPRECIATION
TOTAL EXPENDITURE
12265525.45
54813964.95
6404261.50
22200.00
833333.00
7516399.00
5974607.00
-
4.97
22.22
2.6
0.00
0.34
3.05
2.42
-
246718586.81
100.00
PROFIT BEFORE TAX

PROVISION FOR FBT
ADD:-SURPLUS B/F
PROPOSED DIVIDEND
428106.12
269541.00
142263.00
16302.12
7005015.53
7021317.65
7021317.65
100.00
7021317.65
100.00
INTERPRETATION:
purchasing seeds constitutes to 33.74% and Selling and Distribution expenses to 22.22, which
is high.
Table No: 4.3:

31-03-2008
PARTICULARS
PERCENTAGE
(%)
INCOME :SALES
OTHER RECEIPTS
CLOSING STOCK
TOTAL INCOME
284662125.80
11293111.00
219588087.40
515543324.20
55.23
2.19
42.58
100.00
PURCHASE SEEDS
PURCHASE CHEMICALS
PRODUCTION EXPENSES
SALARIES AND WAGES
73137555.00
183910782.00
14457484.00
14801327.91
33464326.48
19239403.10
14.61
36.74
2.89
2.96
6.69
3.84
36

FINANCIAL CHARGES
DEPRECIATION
TOTAL EXPENDITURE
96209376.75
46534395.00
22200.00
833333.00
11581557.00
6321968.07
-
19.22
9.3
0.00
0.17
2.31
1.26
-
500513708.31
100
PROFIT BEFORE TAX

PROVISION FOR FBT
ADD:-SURPLUS B/F
PROPOSED DIVIDEND
15029615.89
5044756.00
2577893.00
7406966.89
7021317.65
14428284.54
14428284.54
100
14428284.54
100
INTERPRETATION:
Seeds Pvt. Ltd., for the year 31-03-08. In this year out of 100% total income and
expenditure, purchasing seeds constitutes to 36.74%and Selling and Distribution expenses
to 19.22%,expenditure are research and development to 9.3% which is high.
Table No: 4.4:

31-03-2009
PARTICULARS
INCOME :SALES
OTHER RECEIPTS
CLOSING STOCK
TOTAL INCOME
PURCHASE SEEDS
PURCHASE CHEMICALS
PRODUCTION EXPENSES
37
PERCENTAGE
(%)
843299865.00
22352287.00
266860982.68
1132513134.68
74.46
1.97
23.57
100.00
219588087.40
284397184.50
9012953.00
31523352.00
20.79
26.91
0.85
2.98
SALARIES AND WAGES
TRAIT FEE
FINANCIAL CHARGES
DEPRECIATION
TOTAL EXPENDITURE
63200363.01
29826575.60
234649141.40
147886950.00
11065252.00
55333.00
833333.00
14572218.90
10209628.25
1056820372.06
5.98
2.82
22.2
13.99
1.05
0.01
0.08
1.38
0.97
100.00
PROFIT BEFORE TAX

PROVISION FOR FBT
ADD:-SURPLUS B/F
PROPOSED DIVIDEND
75692762.98
27993251.00
2612025.67
45087486.31
14428284.54
59515770.85
59515770.85
100.00
59515770.85
100.00
INTERPRETATION:
Seeds Pvt. Ltd., for the year 31-03-09. In this year out of 100% total income and
expenditure, purchasing seeds constitutes to26.91% and Selling and Distribution expenses
to 22.20%, which is high.
Table No: 4.5

31-03-2010
PARTICULARS
INCOME :SALES
OTHER RECEIPTS
CLOSING STOCK
TOTAL INCOME
PURCHASE SEEDS
PURCHASE CHEMICALS
38
PERCENTAGE
(%)
1420098789.00
39289543.00
430787633.20
1890175965.20
87.25
0.45
12.30
100.00
266860982.68
563584826.50
16588730.00
28.07
30.8
PRODUCTION EXPENSES
SALARIES AND WAGES
TRAIT FEE
FINANCIAL CHARGES
DEPRECIATION
TOTAL EXPENDITURE
PROFIT BEFORE TAX
PROVISION FOR FBT
ADD:-SURPLUS B/F
PROPOSED DIVIDEND
49094639.45
63573239.24
42475881.00
389622049.75
339695907.00
20595918.00
33133.00
833335.00
3255081.73
13401282.29
10.01
2.5
1798918005.64
100.00
23.96
2.28
0.01
0.28
0.42
1.64
91257959.56
33429825.00
2289547.00
2447280.00
2997527.00
50093780.56
59515770.85
109609551.41
45000000
100
14400000
100
INTERPRETATION:
purchasing seeds constitutes to 31.33% and Selling and Distribution expenses to21.66%,trait
fee to 18.88% which is high.
Table No-4.6
Common Size Balance Sheet of TULASI SEEDS PVT. LTD. as on 31-03-2006.
PARTICULARS
Sources of Funds
Shareholders Funds:
Share Capital
P & L A/C
Loan Funds:
Secured Loans
Un Secured Loans
Current Liabilities:
Current Liabilities &
31-03-2006
Percentage in
Rs.
Liabilities/Assets
1,00,00,000.00
70,05,015.53
5.23%
3.66%
3,85,71,828.78
2,20,575.12
20.17%
0.11%
13,47,15,296.34
70.44%
39
Provisions
Other Liabilities:
Differed Tax Liability
Total liabilities
Total Funds
Application of Funds:
Technical know how tangible assets
Net Fixed Assets
Current Assets, Loans &Advances:
Inventories
Sundry Debtors
Cash &Bank Balances
Loans& Advances
Miscellaneous expenditure to the
extent not written off
Total Assets
7,39,444.0
135454740.34
19,12,52,159.77
0.39%
70.82
100.0%
33,33,334.00
3,03,73,001.84
1.74%
15.89%
3,70,83,246.25
5,58,24,962.84
35,55,790.32
5,80,15,224.52
66,600.0
19.39%
30.76%
1.86%
30.33%
0.03%
19,12,52,159.77
100.0%
INTERPRETATION:
The table 4.6 is showing the common size balance sheet of Tulasi seeds pvt.ltd. In
this year out of 100% total liabilities and total assets, Reserves and surplus are high i.e.
3.66% and loans fund (secured) i.e. 20.17%, provisions are also high. The fixed assets are
15.89%,capital work in progress is high constituting and cash balances are low in the total
assets of board.
40
Table No-4.7
Common Size Balance Sheet of TULASI SEEDS PVT. LTD. as on 31-03-2007.
PARTICULARS
Sources of Funds
Shareholders Funds:
Share Capital
P & L A/C
Loan Funds:
Secured Loans
Un Secured Loans
Provisions
Other Liabilities:
Total liabilities
Total Funds
Net Fixed Assets
Current Assets, Loans &Advances:
31-03-2007
Percentage in
Rs
Liabilities/Assets
1,00,00,000.00
70,21,317.65
3.78%
2.66%
9,45,64,878.79
7,77,494.12
35.76%
0.29%
15,13,53,220.16
57.23%
7,39,444.0
152092664.16
26,44,56,354.72
0.28%
57.51%
100.0%
25,00,001.0
3,41,08,921.84
0.96%
12.88%
41
Inventories
Sundry Debtors
Cash &Bank Balances
Loans& Advances
7,31,37,555.0
5,62,04,175.13
19,49,073.42
9,65,12,228.33
44,400.00
27.66%
21.25%
0.74%
36.49%
0.02%

Total Assets
26,44,56,354.72
100.0%
INTERPRETATION:
this year at out of 100% total liabilities and total assets, Reserves and surplus are high i.e.
12.88%, capital work in progress is high constituting and cash balances are low and loans
advances are highly increased in the total assets of board.
42
Table No-4.8
Common Size Balance Sheet of TULASI SEEDS PVT. LTD. as on 31-03-2008
PARTICULARS
Sources of Funds
Shareholders Funds:
Share Capital
P & L A/C
Loan Funds:
Secured Loans
Un Secured Loans
Current Liabilities & Provisions
Other Liabilities:
Total liabilities
Total Funds
Net Fixed Assets
Current Assets, Loans & Advances:
Inventories
Sundry Debtors
Cash &Bank Balances
Loans& Advances
Prepaid Exp
Total Assets
31-3-2008
Percentage in
Rs.
Liabilities/Assets
1,00,00,000.00
1,44,28,284.54
1.97%
2.85%
9,80,99,516.52
7,33,134.92
19.35%
0.14%
38,28,61,773.14
75.54%
7,39,444.0
383601217.14
50,68,62,153.12
0.15%
75.68%
100.0%
16,66,668.00
5,61,26,433.02
0.33%
11.07%
21,95,88,087.40
22,05,70,852.64
28,50,972.06
24,46,006.00
35,90,934.00
22,200.00
43.32%
43.51%
0.56%
0.48%
0.71%
0.02%
50,68,62,153.12
100.0%
43
INTERPRETATION:
11.07%, capital work in progress is high constituting and cash balances are low in the total
assets of board.
Table No 4.9
44
COMMON SIZE BALANCE SHEET OF T.S.P.L AS AN 31-3-2009

PARTICULARS
31-3-2009
PERCENTAGE
SOURCES OF FUNDS
SHAREHOLDERS FUNDS:
1,00,00,000.00
1.18
6900000.00
0.81
59515770.85
7.03
131430609.9
15.52
572698.92
0.07
637834413.27
75.31
739444.00
0.09
846992937
100.00
5000000.00
0.59
-4166665.00
-0.49
104002991.27
12.28
INVENTORIES
266860982.68
31.51
SUNDRY DEBTORS
433715019.73
51.21
12756084.7
1.51
LOANS& ADVANCES
24128575.00
2.85
PREPAID EXPENSES
4563419.50
0.54
132529.00
0.02
846992937
100.00
SHARE CAPITAL
SHARE APPLICATION MONEY
P & L A/C
LOAN FUNDS:
SECURED LOANS
UN SECURED LOANS
CURRENT LIABILITIES:
CURRENT LIABILITIES & PROVISIONS
OTHER LIABILITIES:
DIFFERED TAX LIABILITY
TOTAL LIABILITIES
APPLICATION OF FUNDS:
TECHNICAL KNOW HOW TANGIBLE ASSETS
AMORTAISATION OF TECHNICAL
NET FIXED ASSETS
CURRENT ASSETS, LOANS &ADVANCES:
CASH &BANK BALANCES
MISCELLANEOUS
EXPENDITURE TO THE EXTENT NOT WRITTEN
OFF
TOTAL ASSETS
INTERPRETATION:
45
7.03% and loans fund (secured) i.e. 15.52%. Provisions are also high. The fixed assets are
12.28%, capital work in progress is high constituting and cash balances are low in the total
assets of board.
Table No 4.10
46
COMMON SIZE BALANCE SHEET OF T.S.P.L AS AN 31-3-2010

PARTICULARS
31-3-2010
PERCENTAGE
SOURCES OF FUNDS
SHAREHOLDERS FUNDS:
SHARE CAPITAL
90000000.00
6.15
SHARE APPLICATION MONEY
13500000.00
0.92
P & L A/C
50209551.41
3.43
SECURED LOANS
216051754.2
14.78
UN SECURED LOANS
91016557.00
6.22
1000737270.75
68.44
739444.00
0.05
1462254577.32
100.00
5000000.00
0.341935852
-5000000.00
-0.341935852
128290927.98
8.77
430787633.20
29.46
896310138.16
61.30
1728258.98
0.12
LOANS& ADVANCES
2479487.00
0.17
PREPAID EXPENSES
2566736.00
0.18
99396.00
0.01
1462262577.32
100.00
LOAN FUNDS:
CURRENT LIABILITIES & PROVISIONS
OTHER LIABILITIES:
TOTAL LIABILITIES
TECHNICAL KNOW HOW TANGIBLE ASSETS
AMORTAISATION OF TECHNICAL
NET FIXED ASSETS
CURRENT ASSETS, LOANS &ADVANCES:
INVENTORIES
SUNDRY DEBTORS
CASH &BANK BALANCES
MISCELLANEOUS
EXPENDITURE TO THE EXTENT NOT
WRITTEN OFF
TOTAL ASSETS
47
INTERPRETATION:
this year at out of 100% total liabilities and total assets., Reserves and surplus are high i.e.
3.43% and loans fund (secured) i.e. 14.78%, provisions are low. The fixed assets are 8.77%,
capital work in progress is high constituting and cash balances are low in the total assets of
board.
Table no.4.11
48
Comparative Income Statement of T.S.P.Lfor March31st

PARTICULARS
31-03-05
RS
31-03-06
RS
ABSOLUTEINCREASE/ %INCREASE/
DECREASE
DECREASE
INCOMES
Sales
220090454.31 262953570.50 1937946883.00
880.52
Other receipts
456232.39
1347217.00
890984.61
195.29
Closing stocks
82551149.31
37083246.25
45467903.06
55.08
Total incomes
303047836.01 301384033.75 302956502.24
99.96
Opening stock
98439115.35
82551149.31
15887966.04
16.13
Purchases
111228215.70 90579720.00
20648495.70
18.56
Production expenses
6988509.25
361394.55
5.17
Administrative expenses
238393320.53 29437604.86
208955715.63
87.65
Selling&distributive
expenses
46663722.05
70474096.23
23810374.18
51.03
Reasearch&development 2494562.50
6699239.45
4204676.95
168.55
Preliminaryexpenses
written off
22200.00
1439.20
6.08
Amortizationof technical 833333.00

known
833333.00
0.00
Financial charges
1222162.00
Depreciation
3375811.00
4833858.00
4458047.00
132.05
Total expenditures
293886218.58 294078266.65 192048.10
0.06
Profit before tax
4579814.43
7305767.10
2722952.67
59.46
Less provision for IT
1407292.00
3791628.00
2384336.00
169.43
Expenditures
23639.20
7349903.80
49
Provision for deffered

Liability
561720.00
280144.00
281576.00
50.12
Provision for F.B.T
0.00
Profitafter
I.T,D.L,F.B.T
2610802.43
3233995.10
623192.67
23.87
Add surplus B/F
1160218.00
3771020.43
2610802.43
225.02
Profit available to
appropriation
3771020.43
7005015.53
3233995.10
85.75
Less issue of shares
Proposed dividend
Balance taken to B/S
3771020.43
7005015.33
3233995.10
85.75
INTERPRETATION:
The table 4.11 is showing the comparative analysis income and expenditure statement
of TULASI SEEDS PVT.LTD. In this year the total income is decreased by 0.55% ,under
which major rise in other income like mis.receipets and sale of fixed assets. And the
expenditure is decreased by 1.47%, under this major rises in production expenses by
321.23%,thus overall T.S.P.L in this year is satisfactory
Table no.4.12
COMPARITIVE INCOME STATEMENT OF T.S.P.L FOR MARCH 31ST
50
Particulars
31.03.2006
Rs.
31.03.2007
Rs
Absolute
%increase/decrease
increase/decrease
Incomes
Sales
262953570.50 168509151.43 94444419.10
35.91
Other Receipts
1347217.00
5499987.00
4152770 .00
308.24
Closing Stock
37083246.25
73137555.00
36054308.75
97.23
Total Income
301384033.75 247146693.45 54237340.30
17.99
Opening Stock
82551149.31
37083246.25
45467903.06
55.00
Purchases
90579720.00
87530350.00
3049370.00
3.37
Production Expenses
7349903.80
9179790.50
1829886.70
24089
Administrative
Expenses
29437604.86
37360435.11
7922830.25
26.91
Selling&Distribution
Expenses
70474096.23
54813964.95
47739868.72
67.74
Finance Charges
1222162.00
7516399.00
6294237.00
515.00
Research&Development 6699239.45
6404261.50
2949779.50
4.40
Preliminary Expenses
Written Off
22200.00
22200.00
0.00
0.00
Amortization of
Technical know
833333.00
833333.00
0.00
0.00
Depreciation
4833858.00
5974607.00
1140749.00
23.60
Total Expenditure
294078266.65 246718587.31 47359679.34
16.10
Profit Before Tax
7305767.10
428106.12
6877660.98
94.14
Less:Provision for I.T
3791628.00
269541.00
3522087.00
92.89
Provision for Deffered

Tax Liability
280144.00
0.00
Provision for F.B.T
0.00
142263.00
Profit after I.T,

D.T.L,F.B.T
3233995.10
16302.12
Expenditure
51
_
3217692.98
_
99.49
Add: Surplus B/F
3771020.43
7005015.53
3233995.10
85.76
Profit available to
Appropriation
Less:Issue of Bonus
Shares
7005015.53
7021317.65
16302.12
0.23
Proposed Dividend
7005015.53
7021317.65
16302.12
0.23
INTERPRETATION:
The table 4.12 is showing the comparative analysis income and expenditure
statement of TULASI SEEDS PVT.LTD. In this year the total income is decreased by
18% ,under which major rise in other income like mis.receipets and sale of fixed
assets by 308.25% And the total expenditure is decreased by 16.1% under this major
rises in production expenses by 24.9%,thus overall T.S.P.L in this year is satisfactory.
Table no.4.13
Comparative Income Statement of T.S.P.L. For March 31st
Particulars
31.03.07
Rs.
31.03.08
Rs.
52
Absolute
Increase/Decr
ease
%Increase/Decr
ease
Incomes
Sales
158509151
.43
5499987.0
0
73137555.
00
247146693
.43
284662125.
80
11293111.0
0
219588087.
40
515543324.
20
12615297437
79.58
5793124.00
105.23
146450532.40
200.23
268396630.80
108.59
Opening Stock
370832460
25
73137555.0
0
36054308.75
97.23
Purchase-seeds
83252022.
00
183910782.
00
100658760.00
120.91
Purchase-chemicals
4278328.0
0
9179790.5
0
25094909.
66
14457484.0
0
14801327.9
1
33464326.4
8
10179156.00
237.92
5621537.41
61.24
8369416.82
33.35
Salaries&Wages
12265525.
45
19239403.1
0
6973877.65
56.85
Selling&DistributionExpe
nses
54813964.
75
96209376.7
5
41395412.00
75.52
Research&DevelopmentE
xpense
6404261.5
0
46534395.0
0
40130133.50
626.61
Written off
22200.00
22200.00
Amortization of Technical
know
833333.00
833333.00
Financial charges
7516398.0
0
5974607.0
0
246718587
.31
11581557.0
0
6321968.07
4065159.00
54.08
347360.95
5.81
5005137081
.00
253795120.80
102.87
Profit before Tax
428106.12
14601509.77
3410.00
269541.00
15029615.8
9
5044756.00
4775215.00
1771.00
Other Receipts
Closing stock
Total Incomes
Expenditures
Production Expenses
Administration Expenses
Depreciation
Total Expenditures
53
Provision for Deffered Tax 0.00

Liability
0.00
Provision for F.B.T
Profit after I.T,D.L,F.B.T 16302.12
7406966.89
7390664.77
45335.60
Add:SurplusB/F
7005015.5
3
7021317.6
5
7021317.65
16302.12
0.23
14428284.5
4
7406966.89
105.49
Less:Issue of Bonus
Shares
Proposed Dividend
7021317.6
5
14428284.5
4
7406966.89
105.49
Profit available to
Appropriation
INTERPRETATION:
statement of TULASI SEEDS PVT.LTD. In this year the total income is increased by
108.6% ,under which major rise in other income like mis.receipets and sale of fixed
assets by 200.24% And the total expenditure is increased by 102.87% under this
major rises in production expenses by 61.24%,and also expenditure on R & D by
626.62%,
Table no.4.14
COMPARITIVE INCOME STATEMENT OF T.S.P.L FOR 31ST MARCH
Particulars
31.03.08
31.03.09
AbsoluteIncrease %Increase
RS
RS
/
/
Decrease
decrease
Incomes
Sales
284662125.80 843299865.00 558637739.20
196.24
54
Other Receipts
Closing Stock
Total Incomes
Expenditures
Opening stock
Purchases-seeds
Purchases-chemicals
Production Expenses
Administration
Expenses
Salaries&Wages
Expenses
Research&Developmen
t Expenses
written off
Amortization of
Technical kmow
Financial Charges
Depreciation
Total Expenditures
Profit before Tax
Provision for Deffered
Liability
Provision for F.B.T
Profit after
I.T,D.L.F.B.T
Add:Surplus B/S
Profit available to
Appropriation
Less:Issue of Bonus
Shares
Proposed Dividend
11293111.00
219588087.40
515543324.20
22352287.00
266860982.68
1132513134.6
8
11059176.00
47272895.20
616969809.80
97.93
21.52
119.67
73137555.00
183910782.00
14457484.00
14801327.91
33464326.48
219588087.40
284397184.50
9012953.00
31523352.00
63200363.01
146450532.40
100486402.50
23470437.00
16722024.09
29736036.53
200.24
54.63
162.34
112.98
0.88
19239403.10
96209376.75
29826575.60
234649141.04
10587172.50
138439764.20
55.03
143.89
46534395.00
11065252.00
35469143.00
76.22
22200.00
55333.00
33133
149.25
833333.00
833333.00
0.00
0.00
11581557.00
6321968.07
5005137081.0
0
15029615.89
5044756.00
0.00
14572218.90
10209628.25
1056820371.7
0
75692762.98
27993251.00
_
2990661.90
3887660.18
3948316710.00
25.82
61.49
78.88
60663147.09
22948495.00
_
403.62
454.90
_
_
7406966.89
2612025.67
45087486.31
_
37680519.42
_
508.71
7021317.65
14428284.54
14428284.54
59515770.85
7406966.89
45087486.31
105.49
312.49
_
14428284.54
_
59515770.85
_
45087486.31
_
312.49
INTERPRETATION:
The table 4.14 is showing the comparative analysis income and expenditure statement
of TULASI SEEDS PVT.LTD. In this year the total income is increased by 119.67% ,under
55
which major rise in other income like mis.receipets and sale of fixed assets by 97.93%
And the total expenditure is increased by 111.15% under this major rises in
production expenses by 112.98%,and also expenditure on R & D decreased by 76.22%, thus
overall T.S.P.L in this year is satisfactory
Table no.4.15
Comparative Income Statement of T.S.P.L for March 31st
Particulars
31.03.09
Incomes
Sales
843299865.0
31.03.10
1420098789.
56
Absolute
%Increase/Decre
increase/decrea ase
se
576798924.00
68.39
Other Receipts
Closing Stock
Total Incomes
Expenditures
Opening Stock
Purchases-seeds
Purchases-chemicals
Production Expenses
Administration
Expenses
Salaries&Wages
Expenses
Research&Developm
ent Expenses
Preliminary expenses
written off
Amortization
technical know
Financial Charges
Depreciation
Total Expenditures
Profit before I.T
Less:Provision for
I.T
Provision for
Deffered Liability
Provision for F.B.T
Profit after I.T ,
D.L, F.B.T
Add: Surplus B/F
Profit available to
Appropriation
Less:Issue of Bonus
Shares
Proposed Dividend
Balance taken to
B/S
0
22352287.00
266860982.6
8
1132513134.
68
00
39289543.00
430787633.2
0
1890175965.
20
219588087.4
0
284397184.5
0
9012953.00
31523352.00
63200363.01
16937256.00
163926651.06
75.77
61.43
757662831.06
66.90
266860982.6
8
563584826.5
0
16588730.00
49094639.45
63573239.24
472728952.00
21.52
279187642.00
98.17
7575777.00
17571287.45
372876.23
84.05
55.74
589.90
29826575.60
234649141.0
4
11065252.00
42475881.00
389622049.7
5
20595918.00
12649305.40
154972908.70
42.40
66.04
9530666.00
86.13
55333.00
33133.00
22200.00
40.12
833333.00
833335.00
2.00
240.00
1457221890.
00
10209628.25
1056820371.
76
75692762.98
27993251.00
3258087.73
1424663.80
97.77
13401282.29
1798918005.
64
91257959.56
33429825.00
3191654.09
742097634.00
31.26
70.20
15565196.50
5436574.00
20.56
19.42
0.00
2289547.00
2289547.00
2612025.67
45087486.31
299757.00
2447280.00
2312268.67
42640206.31
88.52
94.57
14428284.54
50209951.41
50093780.56
45000000.00
48650952.02
5209951.41
337.19
10.38
59515770.85
59515770.85
1096909551.
41
45000000.00
1096909551.41
5209951.41
10.38
50209951.41
57
INTERPRETATION:
statement of TULASI SEEDS PVT.LTD in this year the total income is increased by
66.9% ,under which major rise in other income like mis.receipets and sale of fixed
assets by 75.77% And the total expenditure is increased by 70.22% under this major
rises in production expenses by 55.74%,and also expenditure on R & D increased by
86.13%, thus overall T.S.P.L in this year is satisfactory.
Table No-4.16
Comparative Balance Sheet of TULASI SEEDS PVT. LTD. FOR 2005-06
Sources of Funds
Shareholders Funds:
Share Capital
31-3-2005
31-3-2006
Rs.
Rs.
1,00,00,000.00
1,00,00,000.00
Absolute
% Increase/
Increase/
(Decrease)
(Decrease)
58
P & L A/C
Loan Funds:
Secured Loans
Un Secured Loans
37,71,020.43
70,05,015.53
32,33,995.1
85.8%
2,67,92,683.65
8,07,917.12
3,85,71,828.78
2,20,575.12
1,17,79,145.1
(5,87,342.0)
44.0%
(72.7%)
14,09,71,206.35
13,47,15,296.34
(62,55,910.0)
(4.4%)
Provisions
Other Liabilities:
Total liabilities
Total Funds
Technical know how
4,59,300.00
141430506.35
18,28,02,127.5
7,39,444.0
135454740.34
19,12,52,159.77
2,80,144.0
5975766.01
84,50,032.2
61.0%
0.04
4.6%
41,66,667.00
33,33,334.00
(8,33,333.0)
(20.0%)
tangible assets
Net Fixed Assets
Current Assets, Loans
2,52,01,055.84
3,03,73,001.84
51,71,946.0
20.5%
8,25,51,149.31
4,34,57,227.80
23,12,888.23
2,50,24,339.37
88,800.0
3,70,83,246.25
5,58,24,962.84
35,55,790.32
5,80,15,224.52
66,600.0
(4,54,67,903.1)
1,53,67,735.0
12,42,902.1
3.29,90,885.2
(22,200.0)
(55.1%)
35.4%
53.7%
131.8%
(25.0%)
18,28,02,127.5
19,12,52,159.77
84,50,032.2
4.6%
&Advances:
Inventories
Sundry Debtors
Cash &Bank Balances
Loans& Advances
Miscellaneous
expenditure to the extent
not written off
Total Assets
INTERPRETATION:
The table no 4.16 is showing the comparative balance sheet of Tulasi Seeds Pvt.Ltd.
In the year the total assets and liabilities are increase, The profits and losses are increased
by 85.8% , secured loans are increased by 44% and unsecured loans are decreased by
72.7%. On the asset side, the inventories are decreased by 55.1% and sundry debtors are
increased by 55.4%. The assets transactions also good because the investments are highly
increased cash balances are increased but on the other hand liabilities are so good due to
highly decreased in unsecured loans.
59
Table No- 4.17

Comparative Balance Sheet of TULASI SEEDS PVT. LTD. FOR 2006-07
31-03-2006
31-03-2007
Absolute
% Increase/
Rs
Rs
Increase/
(Decrease)
(Decrease)
Sources of Funds
Shareholders Funds:
Share Capital
P & L A/C
Loan Funds:
Secured Loans
Un Secured Loans
Provisions
Other Liabilities:
1,00,00,000.00
70,05,015.53
1,00,00,000.00
70,21,317.65
16,302.1
0.2%
3,85,71,828.78
2,20,575.12
9,45,64,878.79
7,77,494.12
5,59,93,050.0
5,56919.0
145.2%
252.5%
13,47,15,296.34
15,13,53,220.16
1,66,37,923.8
12.4%
7,39,444.0
7,39,444.0
60
Total liabilities
Total Funds
Technical know how
tangible assets
Net Fixed Assets
&Advances:
Inventories
Sundry Debtors
Cash &Bank Balances
Loans& Advances
Miscellaneous
135454740.34
19,12,52,159.77
152092664.16
26,44,56,354.72
16637923.82
7,32,04,195.0
0.12
38.3%
33,33,334.00
25,00,001.0
8,33,333.0
25.0%
3,03,73,001.84
3,41,08,921.84
37,35,920.0
12.3%
3,70,83,246.25
5,58,24,962.84
35,55,790.32
5,80,15,224.52
66,600.0
7,31,37,555.0
5,62,04,175.13
19,49,073.42
9,65,12,228.33
44,400.00
3,60,54,308.8
(26,20,787.7)
(16,06,716.9)
3,84,97,003.8
(22,200.0)
97.2%
4.5%
(45.2%)
66.4%
(33.3%)
19,12,52,159.77
26,44,56,354.72
7,32,04,195.0
38.3%

not written off
Total Assets
INTERPRETATION:
The table no 4.17 is showing the comparitive balance sheet of tulasi seeds pvt.ltd .In
the year the total assets and liabilities are increase, the profits and losses are increased by
0.2% , secured loans are increased by 145.2% and unsecured loans are increased by
72.7%. On the asseet side, the inventories are increased by 97.2% and sundry debtors are
increased by 4.5%. The assets transactions also good because the investments are highly
increased cash balances are increased but on the other hand liabilities are so good due to
highly decreased in unsecured loans.
61
Table NO.4.18
Comparative Balance Sheet of TULASI SEEDS PVT.LTD. FOR 2007-08
Absolute
% Increase/
Increase/
(Decrease)
31-03-2007
31-03-2008
Rs
Rs
1,00,00,000.00
70,21,317.65
1,00,00,000.00
1,44,28,284.54
74,06,966.9
105.5%
9,45,64,878.79
7,77,494.12
9,80,99,516.52
7,33,134.92
35,34,637.7
(44,359.2)
3.7%
(5.7%)
15,13,53,220.16
38,28,61,773.14
23,15,08,553.0
153.0%
Provisions
Other Liabilities:
Total liabilities
Total Funds
Technical know how
7,39,444.0
152092664.16
26,44,56,354.72
7,39,444.0
383601217.14
50,68,62,153.12
231508552.98
24,24,05,798.4
1.52
91.7%
25,00,001.0
16,66,668.00
(8,33,333.0)
(33.3%)
tangible assets
Net Fixed Assets
3,41,08,921.84
5,61,26,433.02
2,20,17,511.2
64.6%
7,31,37,555.0
5,62,04,175.13
21,95,88,087.40
22,05,70,852.64
14,64,50,532.0
16,43,66,677.5
200.2%
292.4%
Sources of Funds
Shareholders Funds:
Share Capital
P & L A/C
Loan Funds:
Secured Loans
Un Secured Loans
&Advances:
Inventories
Sundry Debtors
(Decrease)
62
Cash &Bank Balances

Loans& Advances
Prepaid Exp
Miscellaneous
19,49,073.42
9,65,12,228.33
44,400.00
28,50,972.06
24,46,006.00
35,90,934.00
22,200.00
9,01,898.6
(9,40,66,222.3)
3,59,09,340.0
(22,200.0)
46.3%
(97.5%)
100.0%
(50.0%)
26,44,56,354.72
50,68,62,153.12
24,24,05,798.4
91.7%

not written off
Total Assets
INTERPRETATION:
The table no 4.18 is showing the comparative balance sheet of tulasi seeds pvt.ltd .In
the year the total assets and liabilities are increase., the profits and losses are increased by
105.5% , secured loans are increased by 3.7% and unsecured loans are decreased by
increased by 292.4%. The assets transactions also good because the investments are
highly increased cash balances are increased but on the other hand liabilities are so good
due to highly decreased in unsecured loans .
63
Table No-4.19
COMPARATIVE BALANCE SHEET OF T.S.P.L FOR 2008- 09
PARTICULARS
31-3-2008
31-3-2009
ABSOLUTE
INCREASE/
DECREASE
PERCENTAGE
SOURCES OF FUNDS
SHAREHOLDERS FUNDS:
SHARE CAPITAL
1,00,00,000.00
1,00,00,000.00
0.00
0.00
6,900,000.00
6900000
0.00
1,44,28,284.54
59,515,770.85
45,087,485.46
312.49
9,80,99,516.52
131430609.9
33331092.48
33.97
7,33,134.92
572698.92
-160436.00
-21.88
38,28,61,773.14
637834413.3
254972640.2
66.6
7,39,444.0
739444
0.00
0.00
383601217.1
638573857.27
66.46
50,68,62,153.12
208419079.75
254972640.13
298443073.40
16,66,668.00
5000000
3333332
199.99
-4166665.00
-4166665
0.00
5,61,26,433.02
104002991.27
47876558.25
85.3
INVENTORIES
21,95,88,087.40
266860982.7
47272895.3
21.52
SUNDRY DEBTORS
22,05,70,852.64
433715019.7
213144167.1
96.63
SHARE APPLICATION
MONEY
P & L A/C
LOAN FUNDS:
SECURED LOANS
UN SECURED LOANS
CURRENT LIABILITIES &
PROVISIONS
OTHER LIABILITIES:
TOTAL LIABILITIES
TOTAL FUNDS
-58.88
TECHNICAL KNOW HOW
TANGIBLE ASSETS
AMORTAISATION OF
TECHNICAL
NET FIXED ASSETS
CURRENT ASSETS, LOANS
&ADVANCES:
64
CASH &BANK BALANCES
28,50,972.06
12756084.7
9905112.64
347.42
LOANS& ADVANCES
24,46,006.00
24128575
21682569
886.44
PREPAID EXPENSES
4563419.5
4563419.5
0.00
35,90,934.00
-3,590,934.00
-100
22,200.00
132,529.00
110,329.00
-496.97
506862153.12
846992937
3,64,05,223.8
7.58
MISCELLANEOUS
EXPENDITURE TO THE
EXTENT NOT WRITTEN OFF
TOTAL ASSETS
INTERPRETATION:
The table no 4.19 is showing the comparitive balance sheet of tulasi seeds pvt.ltd. In
312.49% , secured loans are increased by 33.97% and unsecured loans are increased by
increased by 55.496.63%. The assets transactions also good because the investments are
highly increased cash balances are increased but on the other hand liabilities are so good due
to highly decreased in unsecured loans.
65
Table No-4.20
COMPARATIVE BALANCE SHEET OF T.S.P.L FOR 2009-10.
PARTICULARS
31-3-2009
31-3-2010
ABSOLUTE
INCREASE/
DECREASE
PERCENTAGE
(%)
SOURCES OF FUNDS
SHAREHOLDERS
FUNDS:
1,00,00,000.00
90000000.00
(80,000,000.00)
-800.00
6900000.00
13500000.00
6600000.00
95.65
59515770.85
50209551.41
(9,306,219.44)
-15.64
131430609.9
216051754.2
84621144.26
64.38
572698.92
91016557.00
90443858.08
15792.57
637834413.27
1000737270.75
362902857.48
56.90
739444.00
739444.00
TOTAL LIABILITIES
638573857.27
1001476714.75
362902857.48
56.83
TOTAL FUNDS
APPLICATION OF
FUNDS:
TECHNICAL KNOW
HOW TANGIBLE
ASSETS
AMORTAISATION OF
TECHNICAL
NET FIXED ASSETS
208419079.75
460777862.57
252358782.82
121.08
5000000.00
5000000.00
0.00
-4166665.00
-5000000.00
-833335.00
20.00
104002991.27
128290927.98
24287936.71
23.35
266860982.68
430787633.20
163926650.52
61.43
SHARE CAPITAL
SHARE APPLICATION
MONEY
P & L A/C
LOAN FUNDS:
SECURED LOANS
UN SECURED LOANS
CURRENT LIABILITIES
& PROVISIONS
OTHER LIABILITIES:
DIFFERED TAX
LIABILITY
CURRENT ASSETS,
LOANS &ADVANCES:
INVENTORIES
66
SUNDRY DEBTORS
CASH &BANK
BALANCES
433715019.73
896310138.16
462595118.43
106.66
12756084.7
1728258.98
-11027825.72
-86.45
LOANS& ADVANCES
24128575.00
2479487.00
-21649088.00
-89.72
4563419.50
2566736.00
-1996683.50
-43.75
132529.00
99396.00
-33,133.00
-25.00
846992936.88
1462262577.32
615269640.44
72.64
PREPAID EXPENSES
MISCELLANEOUS
EXPENDITURE TO THE
EXTENT NOT WRITTEN
OFF
TOTAL ASSETS
INTERPRETATION:
The table no 4.20 is showing the comparitive balance sheet of tulasi seeds pvt.ltd .In
15.64% , secured loans are increased by 64.38% and unsecured loans are increased
highly. On the assets side, the inventories are decreased by 61.43% and sundry debtors
are increased by 106.66%. The assets transactions also good because the investments are
highly increased , cash balances are increased but on the other hand liabilities are so good
due to highly decreased in unsecured loan.
67
TABLE NO-4.21
TREND ANALYSIS INCOME STATEMENT OF TSPL FOR 31ST MARCH
PARTICULARS 3103-05
%INCREASE/ 31-03-06
%INCREASE/
RS
DECREASE
DECREASE
INCOMES
Sales
220090454.31
100.00
262953570.50
119.47
Other receipts
456232.39
100.00
1347217.00
295.29
Closing stock
82551149.31
100.00
3708246.25
44.92
Total incomes
303047836.01
100.00
301384033.75
99.45
Expenditures
Opening stock
98439115.35
100.00
82551149.31
83.86
Purchases
111228215.70
100.00
90579720.00
81.43
Production
6988509.25
100.00
7349903.80
105.17
expenses
Administrative
23839320.53
100.00
29437604.86
123.48
expenses
Selling
46663722.05
100.00
70474096.23
151.03
&Distribution
expenses
Research&
2494562.50
100.00
6699239.45
268.55
Development
expenses
Preliminary
23639.20
100.00
22200.00
93.91
expenses written
off
Ammortisation of 833333.00
100.00
833333.00
100.00
technical known
Financial charges _
100.00
1222162.00
_
Depriciation
3375811.00
100.00
4833858.00
143.19
Total
293886218.58
100.00
294078266.65
100.06
expenditures
Profit before tax 4579814.43
100.00
7305767.10
159.52
Less provision for 1407292.00
100.00
3791628.00
269.42
IT
Provision for
561720.00
100.00
280144.00
49.87
deferred tax
Liability
68
Provision for
F.B.T
Profit after
IT,DL,F.B.T
Add surplus B/F
Profit available
for
appropriation
Less issue of
shares
Proposed
dividend
Balance taken to
balance sheet
100.00
0.00
__
2610802.43
100.00
3233995.10
123.87
1160218.00
3771020.43
100.00
100.00
3771020.43
7005015.53
325.02
185.75
3771020.43
100.00
7005015.53
185.75
69
TABLE NO-4.22
PARTICULARS
3103-05
%INCREASE 31-03-07
%INCREASE/
RS
/
DECREASE
DECREASE
INCOMES
Sales
220090454.3 100.00
168509151.4 76.56
1
3
Other receipts
456232.39
100.00
5499987.00
1205.52
Closing stock
82551149.31 100.00
73137555.00 88.59
Total incomes
303047836.0 100.00
247146693.4 81.55
1
5
Expenditures
Opening stock
98439115.35 100.00
37083246.25 37.67
Purchases
111228215.70 100.00
87530350.00 88.92
Production expenses
6988509.25
100.00
9179790.50
8.25
Administrative
23839320.53 100.00
37360435.11 534.60
expenses
Salaries &wages
_
100.00
_
_
46663722.05 100.00
54813964.95 117.46
expenses
Research&Developmen 2494562.50
100.00
6404261.50
256.73
t expenses
23639.20
100.00
22200.00
93.91
Ammortisationof
833333.00
100.00
833333.00
100.00
technical known
Financial charges
____
100.00
7516399.00
_
Depreciation
3375811.00
100.00
5974607.00
176.98
Total expenditure
293886218.5 100.00
246718587.3 83.95
8
1
Profit before tax
4579814.43
100.00
428106.12
9.35
Less provision for I.T
1407292.00
100.00
269541.00
19.15
Provision for deferred
56172.00
100.00
0.00
_
liability
Provision for F.B.T
_
100.00
142263.00
_
Profitafter
2610802.43
100.00
16302.12
0.62
70
I.T,D.L.F.B.T
Add surplus B/F
Profit available to
appropriation
Proposed dividend
1160218.00
3771020.43
100.00
100.00
7005015.53
7021317.65
603.76
186.19
_
_
_
_
_
_
_
_
3771020.43
100.00
7021317.65
186.19
TABLE NO-4.23
PARTICULARS
3103-05
%INCREASE/ 31-03-08
%INCREASE/
RS
DECREASE
DECREASE
INCOMES
Sales
220090454.31 100.00
284662125.80 129.34
Other receipts
456232.39
100.00
11293111.00
2475.29
Closing stock
82551149.31 100.00
219588087.40 266.00
Total incomes
303047836.01 100.00
515543324.20 170.12
Expenditures
Opening stock
98439115.35 100.00
73137555.00 74.29
Purchases
111228215.70 100.00
198368266.00 178.34
Production expenses
6988509.25
100.00
14801327.91 211.79
Administrative
23839320.53 100.00
33464326.48 140.37
expenses
Salaries &wages
_
100.00
19239403.10 _
46663722.05 100.00
96209376.75 206.17
expenses
Research&Development 2494562.50
100.00
46534395.00 1865.43
expenses
23639.20
100.00
22200.00
93.91
Ammortisationof
833333.00
100.00
833333.00
100.00
technical known
Financial charges
____
100.00
11581557.00 _
Depreciation
3375811.00
100.00
6321968.07
187.27
Total expenditure
293886218.58 100.00
500513708.10 170.30
Profit before tax
4579814.43
100.00
15029615.89 328.17
1407292.00
100.00
5044756.00
358.47
56172.00
100.00
_
_
liability
Provision for F.B.T
_
_
_
_
Profitafter
2610802.43
100.00
7406966.89
283.70
I.T,D.L.F.B.T
Add surplus B/F
1160218.00
100.00
7021317.65
605.17
71
Profit available to
appropriation
3771020.43
100.00
14428284.54
382.61
_
3771020.43
_
100.00
_
14428284.54
_
382.61
TABLE NO-4.24
PARTICULARS
3103-05
%INCREAS 31-03-09
%INCREAS
RS
E/
RS
E/
DECREASE
DECREASE
INCOMES
Sales
220090454.3 100.00
843299865.00 383.16
1
Other receipts
456232.39
100.00
22352287.00
4899.32
Closing stock
82551149.31 100.00
266860982.68 323.27
Total incomes
303047836.0 100.00
1132513134.6 373.71
1
8
Expenditures
Opening stock
98439115.35 100.00
219588087.40 223.07
Purchases
111228215.7 100.00
293410137.50 263.79
0
Production expenses
6988509.25
100.00
31523352.00
451.07
Administrative
23839320.53 100.00
63200363.01
265.11
expenses
Salaries &wages
_
100.00
29826575.60
_
46663722.05 100.00
234649141.04 502.85
expenses
Research&Developme 2494562.50
100.00
11065252.00
443.57
nt expenses
23639.20
100.00
55333.00
234.07
Ammortisationof
833333.00
100.00
833333.00
100.00
technical known
Financial charges
____
100.00
1414572218.9 _
0
Depreciation
3375811.00
100.00
10209628.25
302.43
Total expenditure
293886218.5 100.00
1056820371.7 359.60
8
0
Profit before tax
4579814.43
100.00
75692762.98
1652.75
Less provision for I.T 1407292.00
100.00
27993251.00
1989.15
Provision for deferred 56172.00
0.00
0.00
_
liability
Provision for F.B.T
_
100.00
2612025.67
_
Profitafter
2610802.43
100.00
45087486.31
1726.96
72
I.T,D.L.F.B.T
Add surplus B/F
Profit available to
apropriation
Proposed dividend
1160218.00
3771020.43
100.00
100.00
14428284.54
59515770.85
1243.58
1578.24
_
_
_
_
_
_
_
_
3771020.43
100.00
59515770.85
1578.24
TABLE NO-4.25
PARTICULARS
3103-05
%INCREASE 31-03-010
%INCREASE
RS
/
/
DECREASE
DECREASE
INCOMES
Sales
220090454.3 100.00
1420098789.0 645.23
1
0
Other receipts
456232.39
100.00
39289543.00
8611.74
Closing stock
82551149.31 100.00
430787633.20 521.84
Total incomes
303047836.0 100.00
1890175965.2 623.72
1
0
Expenditures
Opening stock
98439115.35 100.00
266860982.68 271.09
Purchases
111228215.7 100.00
580173556.50 521.60
0
Production expenses
6988509.25
100.00
49094639.45
702.50
Administrative
23839320.53 100.00
63573239.24
266.67
expenses
Salaries &wages
_
100.00
42475881.00
_
46663722.05 100.00
389622049.75 834.95
expenses
Research&Developmen 2494562.50
100.00
20595918.00
825.63
t expenses
23639.20
100.00
33133.00
140.16
Ammortisationof
833333.00
100.00
83335.00
100.00
technical known
Financial charges
____
100.00
32558087.73
Depreciation
3375811.00
100.00
13401282.29
396.98
Total expenditure
293886218.5 100.00
1798918005.6 612.11
8
4
Profit before tax
4579814.43
100.00
91257959.56
1992.61
1407292.00
100.00
33429825.00
2375.47
56172.00
100.00
2289547.00
407.59
liability
Provision for F.B.T
_
100.00
299757.00
_
Profitafter
2610802.43
100.00
50093780.56
1918.71
73
I.T,D.L.F.B.T
Add surplus B/F
Profit available to
appropriation
Proposed dividend
1160218.00
3771020.43
100.00
100.00
50209551.41
59515770.85
4327.60
1578.24
_
_
_
_
_
_
_
_
3771020.43
100.00
59515770.85
1578.24
Tableno-4.26
TREND ANALYSIS BALANCESHEET OF TSPL FOR 31STMARCH
Particulars
Sources of Funds
Share Holders
Share Capital
Profit&Loss A/C
Loans Funds
Secured Loans
Unsecured Loans
Current Liabilities
Current Liabilities
&Provisions
Other Liabilities
Deffered
TaxLiability
Total Liability
Total Funds
Applications of
Funds
Technical know how
Tangiable Assets
Net Fixed Assets
Current Assets
Loans&Advances
Inventories
Sundry Debtors
Cash&Bank
Balances
Loans&Advances
Miscellaneous to the
extent written off
Total Assets
31.03.05
Increase/
Decrease
31.03.06
%Increase/
decrease
10000000.00
3771020.43
100.00
100.00
10000000.00
7005015.53
100.00
185.76
26792683.65
807917.12
100.00
100.00
38571828.78
220575.12
143.96
27.30
140971206.35
100.00
134715296.34
95.56
459300.00
100.00
739444.00
160.99
141330506.35
182802127.50
100.00
100.00
135454740.34
191252159.70
95.77
104.62
4166667.00
100.00
3333334.00
80.00
25201055.84
100.00
30373001.84
120.52
8255149.31
43457227.80
2312888.23
100.00
100.00
100.00
37083246.25
58824962.84
3555790.32
449.21
135.36
153.74
25024339.37
88800.00
100.00
100.00
58015224.52
66600.00
231.83
75.00
182802127.50
100.00
191252159.70
104.62
74
Table-no-4.27
Particulars
Sources of Funds
Share Holders
Share Capital
Profit&Loss A/C
Loans Funds
Secured Loans
Unsecured Loans
Current Liabilities
Current Liabilities
&Provisions
Other Liabilities
Deffered
TaxLiability
Total Liability
Total Funds
Applications of
Funds
Technical know how
Tangiable Assets
Net Fixed Assets
Current Assets
Loans&Advances
Inventories
Sundry Debtors
Cash&Bank
Balances
Loans&Advances
Miscellaneous to
the extent written
off
Total Assets
31.03.05
Increase/Decrease
31.03.07
%Increase/decre
ase
10000000.00
3771020.43
100.00
100.00
10000000.00
7021317.65
100.00
186.19
26792683.65
807917.12
100.00
100.00
94564878.79
777494.12
352.95
96.23
140971206.35
100.00
151353220.16
107.36
459300.00
100.00
739444.00
160.99
141330506.35
182802127.50
100.00
100.00
152092664.16
264456354.70
107.61
144.67
4166667.00
100.00
2500001.00
60.00
25201055.84
100.00
34108921.84
147.25
8255149.31
43457227.80
2312888.23
100.00
100.00
100.00
73137555.00
56204175.13
1949073.42
885.96
129.33
84.27
25024339.37
88800.00
100.00
100.00
96512228.33
44400.00
385.67
50.45
182802127.50
100.00
264456354.70
144.67
75
Tableno-4.28
Particulars
Sources of Funds
Share Holders
Share Capital
Profit&Loss A/C
Loans Funds
Secured Loans
Unsecured Loans
Current Liabilities
Current Liabilities
&Provisions
Other Liabilities
Deffered TaxLiability
Total Liability
Total Funds
Applications of Funds
Technical know how
Tangiable Assets
Net Fixed Assets
Current
AssetsLoans&Advances
Inventories
Sundry Debtors
Cash&Bank Balances
Loans&Advances
extent written off
Total Assets
31.03.05
Increase/Decre 31.03.08
ase
%Increase/decrea
se
10000000.00
3771020.43
100.00
100.00
10000000.00
14428284.54
100.00
382.60
26792683.65
807917.12
100.00
100.00
98099516.52
733134.92
366.14
90.74
140971206.35
100.00
382861773.14
271.59
459300.00
141330506.35
182802127.50
100.00
100.00
100.00
739444.00
383601217.14
506862153.12
160.99
271.42
277.27
4166667.00
100.00
16666668.00
400.00
25201055.84
100.00
56126433.02
222.71
8255149.31
43457227.80
2312888.23
25024339.37
88800.00
100.00
100.00
100.00
100.00
100.00
219588037.40
220570852.64
2850972.06
2446006.00
22200.00
2660.01
507.56
123.26
9.77
25.23
182802127.50
100.00
506862123.12
277.27
76
Tableno-4.29
Particulars
Sources of Funds
Share Holders
Share Capital
Profit&Loss A/C
Loans Funds
Secured Loans
Unsecured Loans
Current Liabilities
Current Liabilities
&Provisions
Other Liabilities
Deffered
TaxLiability
Total Liability
Total Funds
Applications of
Funds
Technical know how
Tangiable Assets
Net Fixed Assets
Current Assets
Loans&Advances
Inventories
Sundry Debtors
Cash&Bank
Balances
Loans&Advances
Miscellaneous to
the extent written
off
Total Assets
31.03.05
Increase/Decreas 31.03.09
e
%Increase/decrea
se
10000000.00
3771020.43
100.00
100.00
90000000.00
50209551.41
900.00
1331.45
26792683.65
807917.12
100.00
100.00
216059754.16
91016557.00
806.41
11265.58
140971206.35
100.00
1000737270.75
709.88
459300.00
100.00
739444.00
160.99
141330506.35
182802127.50
100.00
100.00
10014767.14
1448762577.00
7.08
792.53
4166667.00
100.00
25201055.84
100.00
128290927.98
509.07
8255149.31
43457227.80
2312888.23
100.00
100.00
100.00
430787633.20
896310138.16
1728258.96
5218.41
2062.51
74.72
25024339.37
88800.00
100.00
100.00
2479487.00
99396.00
13.90
112.95
182802127.50
100.00
448762577.00
245.49
77
Tableno-4.30
Particulars
Sources of Funds
Share Holders
Share Capital
Profit&Loss A/C
Loans Funds
Secured Loans
Unsecured Loans
Current Liabilities
Current Liabilities
&Provisions
Other Liabilities
Deffered
TaxLiability
Total Liability
Total Funds
Applications of
Funds
Technical know how
Tangiable Assets
Net Fixed Assets
Current Assets
Loans&Advances
Inventories
Sundry Debtors
Cash&Bank Balances
Loans&Advances
extent written off
Total Assets
31.03.05
Increase/Decr
ease
31.03.10
%Increase/decrease
10000000.00
3771020.43
100.00
100.00
90000000.00
50209551.41
900.00
1331.45
26792683.65
807917.12
100.00
100.00
216059754.16
91016557.00
80.64
11265.58
140971206.35
100.00
1000737270.75 709.88
459300.00
100.00
739444.00
141330506.35
182802127.50
100.00
100.00
1001476714.75 708.61
615269640.44 336.57
4166667.00
100.00
833332.00
19.99
25201055.84
100.00
128290927.98
509.06
8255149.31
43457227.80
2312888.23
25024339.37
88800.00
100.00
100.00
100.00
100.00
100.00
430787633.20
896310138.16
1728258398
2479487.00
99396.00
5218.41
2062.51
74722.95
9.91
112.95
182802127.50
100.00
615269640.44
336.57
78
160.99
CURRENT RATIO
TABLE NO:4.31
Year
Current Assets Rs
(A)
15,74,79,223.93
22,78,03,031.88
44,90,46,852.10
74,20,24,081.70
1333872253.34
2005-06
2006-07
2007-08
2008-09
2009-10
Current Liabilities
Rs (B)
13,54,54,740.3
15,20,92,664.1
38,36,01,217.1
63,78,344,13.27
1000737270.75
Ratio=(C)=A/B
1.16
1.49
1.17
1.16
1.33
GRAPHICAL RAPRESENTATION 4.31:
Interpretation: The current ratio of the company in the year 2002-03 was 1.29. It decreased to
1.08 in the next year, after that it had been increasing gradually up to the year
79
2005-06. At present the current ratio of the company is1.17 in the year 200910
It is maximum (1.49) in the year 2005-06 and minimum (1.08) in the year
2003-04.
The conventional rule for current ratio is 2:1. The current ratio of the company
is below the standard ratio in the entire study period.
The main reason for below the standard is increase incurrent liabilities are
more than the increase in current assets. So the liquidity position of the
company is not satisfactory.
QUICK RATIO
TABLE NO 4.32:
Year
Current Assets Rs(A) Current LiabilitiesRs (B) Ratio(C)=A/B
2005-06
2006-07
2007-08
2008-09
2009-10
12,68,54,600.45
15,33,45,604.71
15,74,79,223.93
22,78,03,031.88
44,90,46,852.10
9,78,46,163.86
14,14,30,506.3
13,54,54,740.3
15,20,92,664.1
38,36,01,217.1
GRAPHICAL REPRESENTATION 4.32
Interpretation:-
80
1.29
1.08
1.16
1.49
1.17
The above table shows the quick ratio of the company in 2002-03 was0.29.
It has been gradually increased up to 2005-06 and decreased in the year
2006-07
2005-06
The conventional rule for quick ratio is 1:1.
The main reason for low quick ratio is the current liabilities are more than
the quick assets. So the company liquidity position is not satisfactory.
2. DEBT TO EQIUITY RATIO:

TABLE 4.34
YEAR
2005-06
2006-07
2007-08
2008-09
2009-10
(Share Capital + Net Worth (B)

Reserves and
RS
Surplus)
4,54,92,941.93
2,76,00,600.77
3,87,92,403.90
9,53,42,372.91
9,88,32,651.44
30,57,798.00
1,37,71,020.43
1,70,05,015.53
1,70,21,317.65
2,44,28,284.54
GRAPHICAL REPRESENTATION: 4.34
81
Ratio C=A/B
14.87
2.00
2.28
5.60
4.04
Interpretation: The debt to equity ratio of the company was 14.87 in the year 2005-06
In the following years the ratio is increasing. It is highest (14.87) in the
year 2005-06and lowest (2.0) in the year 2006-07.
The acceptable norm for this ratio is to be 2:1. But relaxations are allowed
to capital incentive industries.
The main reason for fluctuations of this ratio is the increase in debt is more
than the increase in equity.
The overall debt to equity ratio of the company is satisfactory.
82
INVENTORY TURNOVER RATIO
TABLE : 4.35
Year
Cost of Goods Sold Average Inventory
Ratio
(A) Rs
(B) Rs
(C)=A/B
2005-06
2006-07
4,56,79,273.6
13,41,04,691.0
5,90,98,288.68
9,04,95,132.33
0.77
1.48
2007-08
2008-09
2009-10
6,18,75,778.86
6,06,55,831.75
6,67,19,061.51
5,98,17,197.78
5,51,10,400.63
14,63,62,821.2
1.03
1.10
0.45
GRAPHICAL RAPRESENTATION 4.35
83
Interpretation: The above table represents the inventory turnover ratio was 0.77 in the
year 2005-06.
The highest ratio is 1.48 in the year 2006-07,the reason for high ratio is
increase in cost of goods sold.
In the present year i.e. 2009-10 the ratio is 0.45. it is very less when
compare to previous years.
The main reason for low inventory turnover ratio is great increase in
average inventory.
The overall inventory turnover ratio of the company is not satisfactory.
84
INVENTORY HOLDING PERIOD

TABLE NO 4.36
Year
2005-06
2006-07
2007-08
2008-09
2009-10
365 / Inventor Ratio
Inventory Holding
365/0.77
365/1.48
365/1.03
365/1.10
365/0.45
Period
474.03
243.24
354.37
331.82
811.11
INTERPRETATION
85
The above table represents the inventory holding period of the company is
474.03 days in the year 2005-06.
The highest the inventory-holding period is 811.11 days in the year 2009-10.
In the year 2006-07the ratio is very low i.e. 243.24 days.
The main reason for highest inventory-holding period is decrease in inventory

turnover ratio.
The lowest Inventory holding period is preferable. So this ratio of the company
is unsatisfactory.
DEBTORS TURNOVER RATIO:
86
TABLE NO 4.37
Year
Net Sales Rs.
Closing Balance of
Ratio
(A)
Debtors Rs.(B)
(no. of times)
(C) = A/B
2005-06
15,82,38,976.0
2,26,74,015.29
6.97
2006-07
22,00,40,454.31
4,34,57,227.80
5.06
2007-08
26,29,53,570.50
5,88,24,962.84
4.47
2008-09
16,85,09,151.43
5,62,04,175.13
2.99
2009-10
28,46,62,125.80
22,05,70,852.64
1.29
Interpretation:
The Debtors turnover ratio of the company is 6.97in the year 2005-06. Later the ratio
is gradually decreased.
87
In the year 2009-10 debtors turnover ratio is1.29. It is the lowest ratio in the entire
study period.
The main reason for decrease in debtors turnover ratio is gradual increase in closing
debtors.
The overall debtors turnover ratio of the company is not satisfactory.
DEBTORS COLLECTION PERIOD

TABLE NO 4.38
Year
360 /Debtors Turnover

88
Debtors Collection
2005-06
2006-07
2007-08
2008-09
2009-10
Period (Days)
51.6
71.1
80.5
120.40
279.06
360/6.97
360/5.06
360/4.47
360/2.99
360/1.29
GRAPHICAL REPRESENTATION 4.38:
INTERPRETATION:
The debtors collection period of the company is 51.6 days in the year 2005-06.
The period is gradually increased year by year.
The highest debtors collection period is279.06 days in the year 2009-10.
The main reason for gradual increase in debtors collection period is decrease in
debtors turnover ratio gradually.
The overall debtors collection period is satisfactory.
NET ASSETS TURNOVER RATIO:

TABLE NO.4.39
Year
Net Sales Rs
Net Assets
Ratio
(A)
(NFA + NCA)
(no. of
Rs
times)
89
(B)
(C) = A/B
2005-06 15,82,38,976.0
4,85,49,300.73
3.25
2006-07 22,00,40,454.31
3,71,16,154.2
5.92
2007-08 26,29,53,570.50
5,23,97,485.43
5.01
2008-09 16,85,09,151.43
10,98,19,289.6
1.53
2009-10 28,46,62,125.80
12,15,72,068.1
2.34
Interpretation: Total net assets Total net assets turnover ratio of the company was 3.25 in the
year 2005-06. The Total net assets turnover ratio is fluctuating in entire study
period i.e. from 2005 to 10.
90
The highest Total net assets turnover ratio is in the year 2006-07.The main
reason for low ratio in the year 2008-09 net assets is lightly increased. At the
same time decreases in sales.
The net assets turnover ratio is need to increase.
FIXED ASSETS TURNOVER RATIO:

TABLE NO 4.40
Year
Net Sales
Total Net Fixed
Ratio
(A)
Assets
(No. of
91
2005-06
2006-07
2007-08
2008-09
2009-10
15,82,38,976.0
22,00,40,454.31
26,29,53,570.50
16,85,09,151.43
28,46,62,125.80
(B)
Times)
1,95,40,864.14
2,52,01,055.84
3,03,73,001.84
3,41,08,921.84
5,612,26,433.02
(C) = A/B
8.09
8.73
8.65
4.94
5.07
INTERPRETATION :
The fixed assets turnover ratio of the company was 8.09. In the year 2005-06.
It is highest in the year 2007-08i.e.8.65; the lowest ratio is 4.94 in the year
2008-09.
The fixed assets turnover ratio is fluctuating year by year. It is (4.94) very low
in the year 2008-09
The main reason for the low fixed assets turnover ratio is decrease in the net
sales.
The current year ratio is 5.07 ,that is not satisfactory
92
CURRENT ASSETS TURNOVER RATIO:

TABLE NO.4.41
Year
2005-06
2006-07
2007-08
2008-09
2009-10
Net Sales Rs
(A)
15,82,38,976.0
22,00,40,454.31
26,29,53,570.50
16,85,09,151.43
28,46,62,125.80
(Total Current
Ratio
Assets)
(No. of Times)
Rs.(B)
2,90,08,436.56
1,19,15,098.36
2,20,24,483.59
7,57,10,367.72
6,54,45,634.96
(C) = A/B
5.45
18.46
11.93
2.22
4.34
93
Interpretation: The current assets turnover ratio of the company was 5.45 in the year
2005-06.
2008-09.
The main reason for maximum of this ratio was the net sales are increased
and total current assets are decreased.
The main reason for minimum of this ratio was the net sales are great
decreased and total current assets are increased.
The present year 2009-10 the current assets turnover ratio of the company
4.34. It is not satisfactory.
GROSS PROFIT RATIO:

TABLE NO 4.42
Year
2005-06
2006-07
2007-08
2008-09
2009-10
GROSS PROFIT
11,25,59,702.4
8,59,35,763.31
20,10,77,791.6
10,78,53,319.7
21,79,43,064.3
94
Sales
Ratio
15,82,38,976.0
22,00,40,454.31
26,29,53,570.50
16,85,09,151.43
28,46,62,125.80
(C) = A/B*100
71.13
39.05
76.46
64.0
76.56
Interpretation:
The gross profit ratio of the company was 71.13 in the year 2005-06.
It is minimum (39.05) in the year 2006-07, because the cost of goods sold was
increased as a result the gross profit of the company declined.
The present year 2009-10 the gross profit ratio of the company is 76.56. It is very
high in the entire study period. So the overall gross profit ratio of the company is
satisfactory.
NET PROFIT RATIO:

TABLE NO 4.43
Profit After Tax Sales
Ratio
Rs
Rs
(Percentage)
(A)
(B)
(C) = A/B*100
2005-06
35,36,062.40
15,82,38,976.0
2.23
2006-07
26,10,802.43
22,00,40,454.31
1.18
2007-08
32,33,995,10
26,29,53,570.50
1.22
2008-09
2009-10
16,302.12
74,06,966.89
16,85,09,151.43
28,46,62,125.80
0.0001
2.60
Year
95
Interpretation: The net profit ratio was 2.23 in the year 2005-06. The ratio is gradually decreased up
to the year 2008-09.
In the year 2009-10 the ratio is 2.6 it is highest ratio in the entire study period.
In the year 2008-09 the ratio is very low i.e. 0.0001. The main reason for that low
ratio is decreasing in sales as a result decreased in profits.
The net profit ratio is satisfactory in the present year 2006-07.
EARNING PER SHARE (EPS)

TABLE NO 4.44
Year
2005-06
2006-07
2007-08
2008-09
2009-10
Profit After
No of Equity
EPS
Tax
Shares
(Rs)
Rs. (A)
Rs. (B)
(C) =
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
A/B
3.53
2.61
3.23
0.016
7.40
35,36,062.40
26,10,802.43
32,33,995,10
16,302.12
74,06,966.89
96
Interpretation: The earning for share of the company was Rs 3.53 in the year 2005-06. In the
following years the earning per share was fluctuating.
In the year 2008-09 the earning per share was very low. The main reason for low
earning per share i.e. decreased in profits.
The present year earning per share (7.40) is high because the profits are increased. It
is satisfactory.
97
FINDINGS
The present studies arrive at the following findings:
It was observed that the current ratio of tulasi seeds pvt.ltd is fluctuating for the period
of study.
The company maintained a satisfactory current ratio due to increase in the current
assets more than the current liabilities.
It was found that the quick ratio represented the satisfactory liquidity condition of the
company. In the year 2006-07 , the ratio is very low i.e.,1.08, this is due to the current
liabilities are more than quick assets. Overall this ratio is not satisfactory.
98
The study reveals that the debt to equity ratio of a company is high , after that there is
a continuous fluctuations in this ratio , because there is less equity when compared to
debt.
It is found that the standard for the debt ratio is 4:1. the overall debt ratio of a
company is satisfactory when compared with the standard debt ratios.
To speak about the gross profit, a high gross profit indicates a good position of a firm
and a low gross profit indicates the unfavourable trends in the firm.
The gross ratio is low in 2006-07 compared to the other succeeding years. This is due
to the cost of goods sold was increased and gross profit of a company is declined.
The gross profit is very high in year in 2009-10. In the entire period, it is very high.
So the overall gross profit ratio is satisfactory.
The net profit ratio is high in the year 2009-10 and very low in year 2008-09. The
main reason for this low ratio is decreasing in sales. As a result to this , there is a
decrease in profit.
From the profit after taxation , most of the amount transfers to the provisions under
the different heads. So, overall it is a good indicator for the future expansion of a
firm.
SUGGESTIONS
It is suggested that the TSPL should decrease the expenditure of personal due to which it
wil impact on other activities.
The tulasi seeds pvt.ltd should go in search of new markets , so that there can be an
innovative in their productive work.
It should increase more facilities for the TSPL employees and should optimize the uses of
management expenditure and general expenditure.
99
It is suggested that the TSPL company should collect the amount from debtors as quickly
as possible , so that the position of capital reserve of this company will be satisfactory.
It is suggested that the TSPL company should increase its profits by increasing there
overall sales. By this, position of a company will be in a good and satisfactory.
BIBILIOGRAPHY
TEXT BOOKS
S.NO.
Author Name
Book Name
100
Publisher
1.
PANDEY I. M
Financial
Vikas Publications
Management
2.
KHAN M.Y. &
Financial
JAIN P.K.
Management
V.K. BHALLA
Financial
Tata Mc Grawhill
3.
Management and
Policy.
REFERENCES:
Journals &Magazines
WEB SITES:
www.Tulasi seeds.com
seeds@tulasi groups.com
101
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Financial Statements

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INTRODUCTION

Every organization irrespective of nature and mission may be viewed as financial

But the information

FINANCIAL STATEMENT ANALYSIS

1. Depict True Financial Position: -

Importance of financial statements:

Employees: Employees are interested in the financial position of a concern they

Government: Central and state government are interested in financial statements

Research scholars: The financial statements being a mirror of the financial

Consumers: Consumers are interested in the establishment of good accounting

Types of financial statements:

Techniques of financial analysis:

comparative financial statements.

Comparative income statements:

Comparative balance sheet:

The changes in periodic balance sheet the conduct of a

2. Common size statement:

In common size statement, each item is stated as a

Common size Balance sheet:

4. Funds flow statement:

5. Cash flow statement:

Quick or Acid Test Ratio = Quick Assets / Current Liabilities

Net working capital

Net working capital = Current assets- Current liabilities

Fixed assets + (Current Assets Current Liabilities)

Capital employed to net worth ratio

Interest coverage ratio

(i) Debt-Equity Ratio

Long term debt

Shareholders found = equity+ general reserve+ dividend reserve+ net profit

Capital employed= fixed assets+ net working capital

EBIT=Earnings before interest and taxes

C. Activity Ratios (or) Turnover Ratios

Inventory Turnover Ratio:

Cost of Goods sold = Opening stock + purchases closing stock

Debtors Turnover Ratio

Debtors turnover ratio: Average debtors

(iv) Fixed Assets Turnover Ratio

Profitability in relation to sales

Profitability in relation to investment

(i) Gross Profit ratio

(ii) Net Profit ratio

(iii) Return on Equity ratio

Profit after tax

(iv) Return on capital Employed ratio

Net profit interest

NEED FOR THE STUDY

To get better insight about financial position of the company.

In order to know the operational efficiency of the business .

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

METHODOLOGY OF THE STUDY

Sources of data collection

Annual reports of the company.

Financial statements , auditor reports , information vouchers of the

LIMITATIONS OF THE STUDY

SEED INDUSTRY IN GLOBAL PERSPECTIVE:

SEED INDUSTRY IN INDIA:

Following are some of the major seed industries in India.

MICO seeds private Limited, Mumbai.

Monsanto holdings private Limited, Mumbai.

Namdhari Seed Corporation limited, Bangalore.

National Seeds Corporation limited. New Delhi.