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WWWWWLSDFSDFMGDGH
WWWWWLSDFSDFMGDGH
PROJECT REPORT
ON
RATIO ANALYSIS
OF
DECLARATION
I, the undersigned Saradava Bhavik K. a student of
T.Y.B.B.A. hereby declare that the project work presented in this
report is my own contribution and has been carried out under the
supervision of Prof. Alpa Joshi of Gyanyagna College Of
Science & Management, Rajkot.
This work has not been previously submitted to any other
University for any other examination.
PREFACE
It is a part of T.Y.B.B.A. to accomplish internship with reputed
company. Management states that each and every activity is started for
the accomplishment of some predetermined goals. In this competitive
environment, only theoretical knowledge is not sufficient and hence a
practical exposure to real life situation of business is perquisite to be a
successful manager.
The objective of a project work in management pedagogy is to
give an opportunity to apply the theoretical concepts into real industrial
environment thereby to supplement the theoretical study of the
management in general.
Finance is very vital part for any company. Any mismanagement
related to finance results into non fulfillment of main goals of the
company. And so it is very important to study all aspects related to
finance management of the company. This project report includes study
and analysis of major areas of finance namely, capital structure
decisions,
capital
budgeting
decisions
management.
and
working
capital
ACKNOWLEDGEMENT
With immense pleasure and gratitude, I would hereby like to
thank all the people who helped and guided me for this project.
I would like to thank Prof. alpa joshi who have guided me
for this project.
I am thankful to Veebasons Corrugating Pvt. Ltd, who have
helped me and provided information for reference.
I would like to thank all my friends and family members for
their constant support.
INDEX
NO.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
PARTICULERS
General information
Introduction
History of the unit
Company profile
Promoter list
Form of organization
Organization structure
Justification of location
The size of unit
Time keeping system
Product detail
Benefits & incentives
Total employees & their classification
Raw material & requirement
List of plant and machinery
Manufacturing process
Power connection
Production capacity & sales turnover
FINANCIAL DEPARTMENT
Introduction
Owned & borrowed capital
Sources of finance
Organization structure
Financial planning
Capital structure
capitalization
capital budgeting
management of fixed assets
management of working capital
management of receivables
5
PG
NO.
20
financial leverage
FINANCIAL ANALYSIS
financial details
power cost
staff & labour details
other manufacturing expenses
administrative expenses
projection of performance
profitability
source of finance
depreciation chart
details of cost of project
break even ratio
cash flow analysis
ratio analysis
21
competitors
22
23
24
Future plan
25
Conclusion
26
Suggestion
27
bibliography
INTRODUCTION
In India, a small-scale industry is presently defined as A unit
engaged in manufacturing, servicing, reporting, processing and
preservation of goods having investment in Plant & Machinery at an
original cost not exceeding Rs. 30 Lacks.
Since the economy of our country is based on rural development
and more facilities and encouragement are allowed by the government to
established industry in rural areas and certain declared backward areas
(Industrial Estates). The India government is paying more emphasis from
the last 10-15 years in the development of small-scale industries in such
areas.
Another important aspect is that small-scale industry is a labour
intensive industry. Manpower is key resource in handling other activities
and resources of the organization. Scientific Management ensures higher
productivity of laborers, which indirectly affect the productivity of other
resources.
Industry means the economic activity which creates from utility. In
other words, it creates economics value through the transformation of raw
material in to finished goods.
It is not possible to image a man without industry and an industry
without man. Man con not direct use any natural resources or raw
material. He has to undertake some or more process on natural resources
and then he can use the product. Thus, by industry raw material can be
made finish product which is useful for mankind.
Veebasons Corrugating Pvt. Ltd. is one of the firm which is
producing corrugated boxes, having very well brand reputation for its
quality and innovated products.
10
COMPANY PROFILE
: 02827-287275
: tooltech@icenet.net.
Sister Companies
Product
: Corrugated Boxes
Corrugated Liners
Corrugated Sheets
Corrugated Rolls
11
No. of Workers
: 55
Accounting Year
Accounting System
: Double Entry
12
PROMOTER LIST
13
FORM OF ORGANISATION
Industries owned, managed & controlled by individual or group of
person without state participation is known as private sector units. These
firms are owned by private entrepreneur Industries under the private
sector are setup with an aim of earning profit. The entire Investment is
made by the owner profits or losses are also enjoyed by the owners.
Private Sector units have to follows rules of the Government. Generally
this units are managed by professional person who makes continues
efforts to increase the all efficiently of the firm.
VEEBASONS CORRUGATING PVT. LTD. is registered as a
private ltd. firm. It is a small scale Industry in the private sector.
VEEBASONS CORRUGATING PVT. LTD. has under the category of
PRIVATE LIMITED COMPANY.
14
ORGANIZATION STRUCTURE
DIRECTOR
Industrial Relation
Manager
General
Manager
Administrative
Manager
Assistant
Manager
Typist / Clerk
Office
Assistant
Workers
Workers
Workers
15
JUSTIFICATION OF LOCATION
The Project is being set-up at Shaper Ta: Kotda Sangani,
Dis. Rajkot.
Shaper is small village situated on national highway No. 8 B.
It is only 15 Kms. Away from Rajkot and 15 Kms. From Gondal,
which is Taluka head quarter. There are so many large, medium and
small-scale industries established in Shaper.
Shaper is nearer to Rajkot, which is the most easily
accessible city in Saurashtra and centrally located in the Saurashtra
region and it is only 15 Kms. Away from Verval, which is also
direct head quarter.
The Road Communication is very easily and conveniently
available. There are regular an constant frequency of bus service is
every half and hour. Thus, the road, communication has no
problem at all as Shaper is situated on national highway, due to all
these convenient and frequent facilities the question does not arise
for the transportation and there by not coming and problem.
Raw Material or finished goods can be transported from
these center to anywhere in India very easily contently and
reasonable rates of the transportation.
16
2. Availability of Labour
The labour factor is so much important for location.
VEEBASONS CORRUGATING PVT. LTD. gets sufficient, educated,
skilled,
and
unskilled
labours
because
of
VEEBASONS
3. Transportation Facility
To carry goods from one region to another transport facility
must be needed. VEEBASONS CORRUGATING PVT. LTD.s location
17
4. Availability of Electricity
Any
business
unit
not
runs
without
electricity.
5. Government Support
The government policy of Gujarat is good and favorable.
Government provides schemes for development and promoting the
industries. Situated in Gujarat state Government also provides short term,
long term financial loans.
18
2.
3.
is having share capital between 1 crore to Rs. 5 crore is the medium scale
industry. The 55 persons work in this factor
19
Off Day
08:00 am
to
12:30 pm
12:30 pm
to
01:30 pm (Lunch)
01:30 pm
to
05:00 pm
08:30 am
to
12:30 pm
12:30 pm
to
01:30 pm (Lunch)
01:30 pm
to
08:00 pm
Tuesday
20
PRODUCT DETAILS
21
2.
3.
4.
22
23
Kraft Paper.
(2)
Stitching Wire.
(3)
Gum.
Raw
material Raw
Requirement
[For
1.
Kraft
Material Rate
Requirement
At
Total
Cost
Production]
Paper 1030 Kg.
593
10500
62.27
(including
3%
process
2.
wastage).
Stitching
4.50 Kg.
2.59
27000
0.70
3.
wire.
Gum.
25.00 Kg.
14.40
TOTAL
12000
1.73
64.70
Capability Utilization
50 %
60 %
24
Name of Machine
Qty. Rate
Oblique hype single face paper 1
3,15,125
Corrugated
Heavy
machine
duty
size
with
Total/ Amt.
3,15,125
62
stand
24,125
48,250
with 1
41,560
41,560
46,520
46,520
1,20,080
1,20,080
1,24,130
1,24,130
75.
Flat wire astiching machine size 1
31,080
31,080
8
9
48 with motor.
Do but dolole head.
1
Die punching machine heavy duty 1
45,525
2,95,000
45,525
2,95,000
1,45,000
1,45,000
machine
with 1
and
creasing
dies
&
starter.
Eccentric stutter with 3 slotting 1
dies 1 corner die motorized size
11
size 24 36.
Partition slotter with 4 partition 1
46,075
46,075
12,58,345
1,25,835
13,84,180
26
MANUFACTURING PROCESS
Two rolls of Craft papers are put on Corrugating Machine.
Craft paper from first roll pass through flute rolls which converts it
in to liners. This is than fixed with the paper coming from other
roll with the help of adhesive. After fixing it pass through heaters.
The Corrugated Paper is then cut in to desired sizes. There after
operations like creasing, cutting slotting and stitching are
performed to convert in to the shape of boxes. And these after as
per requirement boxes are printed.
Finally the Corrugated Boxes are ready for dispatch in
market for sale.
27
POWER CONNECTION
The unit will required approximately 40 H.P. Power
connection the promoters have approached, Gujarat Electricity
Board Authorities and they have been assured that power will be
made available as and when required. The promoters have made a
formal request to the Gujarat Electricity Board Authority. The
promoter will not face any power problem. The supply is quite
satisfactory.
By the time the building will be constructed and the
machineries are erected and installed the power will be made
available. So, there is not going to be any delayed, or bottle necked
due to shortage or non-availability of power. This industry is not
high power intensive and does not need any special or extra
ordinary facilities, so for as the power is concerned erection and
installation of the machine and cable laying and power connection
will pass no problem.
28
Utilization of Capacity
50 %
60 %
Production in M.T.
288.00
345.00
29
INTRODUCTION
30
Financial Control
Financial control is a critically important activity to help the
business ensure that the business is meeting its objectives.
31
SOURCE OF FINANCE
The Firm gets finance from the different factors. These factors are
as follows:
Banks
Unsecured loans
Reserves & surplus
Bonds & debentures
Borrowings from banks
Share capital
The Main Sources of Finance of Veebasons Corrugating Pvt. Ltd.
is
Banks, Unsecured Loans & They are using CC from the bank. The whole
finance provided by the bank against their Assets like Land, Labors &
Machineries. They are doing all the transaction by the bank.
33
ORGANIZATION STRUCTURE
Veebasons Corrugating Pvt. Ltd. has adopted a clear and detail division
for function. Vice president is responsible for overall result of finance
activities of department in the company. The company is having LINE
type of organization in the finance department.
SS
Senior Vice President
Manager
Dy. Manager
Accounts
Officer
Officer
Chief Accounts
Officer
Dy. Manager
Share Accounts
Officer
Accounts Officer
Assistants
Assistance
Accounts Officer
Assistants
Assistants
34
FINANCE PLANNING
TOP LEVEL
MIDDLE LEVEL
35
CAPITAL STRACTURE
Capital structure may be defined as the combination of debt and
equity that leads to the maximum value of the firm.
Capital structure refers to the mix of long- term sources of
funds such as debenture long- term debt, preference share capital
and equity share capital including reserves and surplus. The
company should plan an optimum capital structure.
Share capital of the company will increase, as same secured loans
will also increase by the company.
CAPITALIZATION
Capitalization means the total amount of companies capital or
value of its capital stock. The total amount of companys capital should
be enough to meet its present and future needs.
For the company the Book value and Real value of share are two
main components for assessment of companys financial position.
36
CAPITAL BUDGETING
Profitability
37
Generally, company uses the techniques of Average Rate of Return for the
purpose of capital budgeting. In this method company fixes average rate
of return required in advance.
The average rate of return is calculated as:
Average Annual Income
A.R.R. =
Average Investment
Many times company also use the other techniques of capital budgeting.
After calculating which may select or not.
VEEBASONS CORRUGATING PVT. LTD. has huge investment so it
would be a capitalized company.
38
assets
create
problems
of
replacement.
VEEBASONS
39
Work in progress
Semi
Finished Goods
Debtor
Sales
Finished goods
40
MANAGEMENT OF RECEIVABLES
Debtors
41
FINANCIAL LEVERAGE
42
FINANCIAL DETAILS
SR. NO.
PARTICULARS
1
2
3
4
5
6
7
8
9
Land.
Land Development.
Building.
Plant and Machinery.
Misc. Fixed Assets.
Preliminary & Pre Operative Exp.
Provisions of Contingency.
Margin for Working Capital.
Total Cost of Production
8.10
0.75
8.77
13.84
0.10
0.70
1.13
8.86
34.65
POWER COST
The unit will require 40 H. P. Connection at 100% capacity cost will be as
under:
H.P.
40
HOUR
DAYS
UNIT
288
0.75
RATE
1.50
= 1,03,680
At 50% utilization it wills Rs. 51,840:
Year
Capacity Utilization
1
2
50
60
0.52
0.62
No. Designation
No
1
2
3
4
person
1
1
4
40
Production Manager.
Machine Operator.
Skilled Workers.
Unskilled Workers.
TOTAL
Add: 20% Benefits
TOTAL
P.A.
Rs.
24,000
18,000
33,600
20,000
95,600
19,120
1,14,720
1
2
0.24
0.36
ADMINISTRATIVE EXPENSES
It is estimated that in first year administrative expenses will
be as under:
(A)
Administrative Salary: -
Manager.
Clerk / Cum / Typist.
Accountant.
Peon.
1 3000
1 1000
1 1000
2 500
36,000
12,000
12,000
12,000
44
Total
72,000
14,400
86,400
Total A.
(B)
Administrative Expenses: -
15,000
6,000
7,000
5,000
3,000
15,000
51,000
1,37,400
PROJECTION OF PERFORMANCE
PROFITABILITY
Particularly
1st Year
2ndYear
43.20
51.84
43.20
51.84
A. SALES:
1. Sales and Misc. Receipts
2. Less: Exise
3. Net sales.
45
B. Cost of Production
1. Raw-Material Consumed.
32.35
38.82
00.52
00.63
3. Direct Wages.
1.05
1.16
4. Consumable Stores.
00.24
00.24
00.24
00.24
6. Other MFG.
00.24
00.30
7. Depreciation.
05.03
03.91
8. Preliminary Exp.
00.07
00.07
39.74
45.36
C. Cost of Sale
39.74
45.36
D. Gross Profit.
03.46
06.48
1. On Term Loans.
3.03
2.40
1.37
1.44
-0.94
1.70 (2.64-0.94)
0.68
0.94
1.02
3.91
E. Interest:
4.16
(rs. In lac)
SOURCES OF FINANCE
Sources of Finance
(Rs. In Lac)
Promoters contribution.
16.65
Deposit.
3.00
Term Loan.
15.00
46
4.93
Total
34.65
Balance Monthly
O/S
2005- 1st Qtr.
Closing
Interest Balance
Installment
O/S
15,00,000 1,05,883
59,008
46,875
14,40,992
2nd Qtr.
14,40,992 1,05,883
60,852
45,031
13,80,140
3rd Qtr.
13,80,140 1,05,883
62,754
43,129
13,17,140
4th Qtr.
13,17,386 1,05,883
64,715
41,168
12,52,672 1,05,883
66737
39,168
12,52,672
2nd Qtr.
11,85,935
1,05,883
68,823
37,060
11,85,935
3rd Qtr.
11,17,112
1,05,883
70,973
34,910
11,17,112
4th Qtr.
10,46,139 1,05,883
73,191
32,692
9,72,948
75,478
30,405
06
1,76,204
13,17,386
07
1,05,883
08
47
1,43,808
10,46,139
9,72,948
2nd Qtr.
8,97,469
1,05,883
77,837
28,046
8,97,469
3rd Qtr.
8,19,469
1,05,883
80,269
25,614
8,19,632
4th Qtr.
7,39,363
1,05,883
82,778
23,105
6,56,585
1,05,883
85,365
20,518
65,585
2nd Qtr.
5,71,220
1,05,883
88,032
17,851
5,71,220
3rd Qtr.
4,83,188
1,05,883
90,783
1,61,100
4,83,188
4th Qtr.
3,92,404
1,05,883
93,620
12,263
2,98,784
1,05,883
96,546
9,337
2,98,784
2nd Qtr.
2,02,238
1,05,883
99,563
6,320
2,02,238
3rd Qtr.
1,02,675
1,05,883
1,02,675
3,208
15,00,000
5,11,777
1,07,169
7,39,363
09
65,731
3,92,404
10
Total
48
18,865
1,02,675
DEPRECIATION CHART
Year Particular
Building P2M
Other
Total
Assets
Opening
9.21
14.53
0.10
23.84
Balance
1.38
03.63
0.12
05.03
WDV
7.83
10.9
0.98
19.71
Depreciation
1.17
2.73
0.11
03.91
Depreciation
49
Assets
Total
Rs.
Land:
Consideration
94,620
Stamp
12,120
Registration Fees
1,590
Legal Fee
1,500
Land Development:
Estimated
15,000
Building:
As per Estimate & Engineers
8,77,000
1,09,820
13,84,180
10,000
50
Cost
1,000
B. Legal Exp.
20,000
5,000
2,000
F. Telephone Exp.
2,000
G. Misc. Expenses.
10,000
70,000
1,13,000
8,86,000
Total
34,65,000
51
1st Year
Contribution (S-V)
8.8
Fixed Cost
6.71
BEP =
FC Capacity of Utilization
Contribution
6.71 60
8.8
45.75
Return on Investment: -
ROI =
EBIT 100
Cost of Project
3.46 100
34.65
9.99%
52
GP 100
Net Sales
3.46 100
43.2
8.009%
NPV =
1.02 100
43.2
2.36%
53
(Rs Lakhs)
312.51
120.43
111.91
77.84
77.67
67.81
2.95
3.93
3.93
171.16
55.80
18.73
14.82
21.72
(1.43)
(4.04)
(9.54)
(2.66)
0.34
(0.36)
0.16
0.65
(6.76)
(2.54)
(0.60)
(1.19)
(1.41)
(23.73)
(16.54) (6.41)
(8.74)
(5.21)
(0.20)
256.81
144.93 82.61
86.65
87.49
569.32
124.9
46.84
and
technical
know-how written-off
Interest expenses (net)
Voluntary
retirement
scheme
(Profit) / loss on fixed
assets sold
(Profit) / loss on sale of
investments
Dividend income
(Gain)/ loss on sale of
Contract Exports Division
Operating
profit
before
28.00
inventories
Increase / (decrease) in (32.71)
54
(87.18) 21.53
31.66
24.65
37.68
generated
120.19
689.51
73.33
(60.66)
628.85
(7.67)
51.34
214.70 305.21
8.82
2.19
2.81
2.99
1.80
131.40
0.00
1.16
and -
5.40
from
operations
Income taxes refund (paid)
(net)
Net cash from operating
activities
Cash flow from investing
activities
Proceeds from sale of fixed
assets
Proceeds from transfer of
insulator business @
Capital subsidy received
99.57
47.78
262.82 282.00
exports
marketing division
Proceeds from sale of assets
held for disposal
Sale / redemption
investments
subsidiaries
(48.01) (88.00)
in
-
34.50
Interest received
24.29
13.15
4.34
9.17
22.00
Dividend received
23.73
16.54
6.41
8.74
5.21
(56.28)
ventures
Proceeds
and
13.52
from
sale
joint 10.96
of
Increase
decrease
in 55
corporate deposit
Purchase of fixed assets
Investment in equity of
Joint Ventures
Investment in equity of
subsidiaries @@
Acquisitions
investing activities
Cash flow from financing
(8.00)
(12.49)
(42.54) -
activities
Proceeds from issue of
share
capital
(including 9.81
0.01
0.00
0.01
0.06
0.04
0.06
share premium)
Security premium received 759.93
Proceeds from / (repayment
of) borrowings (net)
Dividends paid (including
tax thereon)
Interest and finance charges
paid
Net cash (used in) / from
financing activities
Net increase in cash and
equivalents
Cash and cash equivalents
(opening balance)
138.31 (163.80)
89.07
2.42
4.75
(3.86)
(28.03) 27.10
20.32
9.41
13.27
41.30
56
(232.23)
14.20
6.16
22.74
20.32
9.41
13.27
41.30
RATIO ANALYSIS
1. CURRENT RATIO:
= Current Assets/ current Liabilities
PARTICULARS
CURRENT
YEAR PREVIOUS
CURRENT ASSETS
CURRENT
2009-10
1585687
495694
2008-09
769106
454349
LIABILITIES
CURRENT RATIO
3.20
1.69
YEAR
INTERPRETATION
Current ratio indicates how much the company is able to meet its
shortly
Maturing obligations. The ideal ratio is 2. During current year, ratio
57
is very high
This is not good situation. Keeping idle current assets invite higher
costs to the company.
Company should improve upon inventory management, cash
management, credit management etc and try to reduce this ratio to
2.
PARTICULARS
YEAR 2008-09
QUICK ASSETS
CURRENT
1155349
495696
379546
454349
LIABILITIES
ACID TEST RATIO
2.33
0.84
INTERPRETATION
Ideal quick ratio is 1.
Company needs to reduce this ratio by utilizing short term funds in
better way.
Excess short term funds invite higher costs to company.
58
PARTICULARS
YEAR 2008-09
166485
BANK
CURRENT
495696
454349
LIABILITIES
RATIO
181.23 %
36.64 %
INTERPRETATION:
Cash position ratio is very high, that indicates under utilization of
short term funds. Company does not require too much funds on
hand.
Company should utilize idle funds for productive purpose in the
company or invest them outside.
59
PARTICULARS
YEAR 2008-09
INVENTORY
430338
GROSS
WORKING 1585687
389560
769106
CAPITAL
RATIO
50.65 %
27.14 %
INTERPRETATION:
Desired situation is that average inventory in store should be
minimum.
Ratio has improved compare to last year but actually inventory
level has increased.
Company requires improving inventory management to reduce
average inventory in stores and reduce the cost of inventory.
PARTICULARS
SALES
TOTAL ASSETS
RATIO
YEAR 2008-09
3419171
3297981
1.04
2885119
2427981
1.19
INTERPRETATION:
Higher is the ratio, better is the utilization of total asset to
generate more sales.
Current year ratio is not satisfactory.
Company should try to make better utilization of total assets to
generate more sales.
PARTICULARS
SALES
FIXED ASSETS
RATIO
YEAR 2008-09
3419171
1106622
3.09
2885119
973890
2.96
INTERPRETATION:
Higher is the ratio, better is the management of fixed assets to
generate sales.
This year ratio has improved compare to last year that indicates
good situation.
Better fixed asset management is always desired.
62
PARTICULARS
SALES
CURRENT ASSETS
RATIO
YEAR 2008-09
3419171
1585687
2.16
2885119
769106
3.76
INTERPRETATION
This ratio suggests utilization of current assets to generate
sales. Higher ratio is always desired.
Current year ratio is not satisfactory compare to last year
ratio.
Company should improve current assets management.
PARTICULARS
NET CREDIT SALES
YEAR 2008-09
306257
2540844
63
AVG. DEBTORS
RATIO
142595
21.48
78283
32.46
INTERPRETATION:
This ratio suggests how many times in a year, debtors make
payment to the company. Higher ratio is desired.
Current year ratio is not satisfactory compare to last years
ratio.
Company should improve its credit management and make
their debtors to make faster payments.
PARTICULARS
DAYS IN A YEAR
DEBTORS
YEAR 2008-09
365
2148
365
3246
TURNOVER
64
RATIO
16.99 DAYS
11.24 DAYS
INTERPRETATION:
This ratio indicates average number of days that customers take to
make payment.
Lower the number of days better is the credit/debtors management.
Current year ratio is not satisfactory compare to last year ratio.
Company should improve its credit management and make their
debtors to make faster payments.
PARTICULARS
YEAR 2008-09
441101
259350
CREDITORS
RATIO
1.70
1.85
65
INTERPRETATION:
This ratio indicates how many times on an average company make
payments to its creditors. Lower the ratio is better.
The company should try to negotiate with its suppliers for later
payments and try to utilize those extra funds for productive
purposes.
11.
PARTICULARS
CURRENT
SALES
AVERAGE
2009-10
3419171
98959
2008-09
2885119
65396
INVENTORY
RATIO
34.55
44.12
INTERPRETATION:
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YEAR PREVIOUS
YEAR
This ratio indicates how many times, the stocks get rotated in a
year. Higher ratio indicates better inventory management.
Current year ratio is not satisfactory compare to last year ratio.
Company should try to maintain inventory turnover and
continuously try to achieve higher inventory turnover.
12.
OPERATING LEVERAGE:
= Contribution/ Earnings before Interest & Tax
PARTICULARS
CONTRIBUTION
EBIT
RATIO
YEAR 2008-09
1027173
361352
2.84
959134
358455
2.68
INTERPRETATION:
Higher the operating leverage, the more the company's income is
affected by fluctuation in sales volume. It measures the EBIT's
percentage change as a result of a change of one percent in the
level of output. Higher ratio is always desired.
Ratio has improved compare to last year`s ratio, that indicates
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better situation.
13.
FINANCIAL LEVERAGE:
= Earnings before Interest & Tax/ Earnings before Tax
PARTICULARS
EBIT
EBT
RATIO
YEAR 2008-09
361352
251867
1.43
358455
350965
1.021
INTERPRETATION:
This ratio explains use of debt component in the capital
structure to increase shareholders earnings. It also explains risks
associated in adopting debt component.
Current year`s ratio has improved compare to last year`s ratio.
This indicates a little higher risk due to more debts but it also
indicates company`s ability to increase shareholders` earnings
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14.
COMBINED LEVERAGE
= Contribution/Earnings before Tax
PARTICULARS
CONTRIBUTION
EBT
RATIO
YEAR 2008-09
1027173
251867
4.08
959134
350965
2.73
INTERPRETATION:
Combined leverage measures the percentage change in EPS that
results from a change in one percent in sales. It helps in measuring
the firms total risk. Current year`s risks have increased compare to
last year`s risks due to increase in debt component. But this is not a
concern of worry because it means better use of financial leverage.
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15.
PARTICULARS
YEAR 2008-09
-140214
TAX
NET SALES
RATIO
2540844
-5.52 %
306257
7.07 %
INTERPRETATION:
Higher net profits are always desired.
Current year`s performance of the company is appreciable
compare to last year`s.
There is always a scope to improve current situation.
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COMPETITORS
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Business is the activity done by the man for the man. Here, means
the business person does business for the society because without society
he cannot achieve his goals. There are various objectives of any business
unit, like maximum profit. To earn maximum profit, to expand the
business area, To change the modern era etc. Now a day to fulfill the
social responsibility is one of the objectives of the company to survive in
the market.
Veebasons Corrugating Pvt. Ltd. Fulfill its responsibilities towards
the society.
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FUTURE PLANS
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SUGGESTIONS
After giving the conclusion following are the suggestions to the
company. This are displayed under.
1)
2)
3)
They should also do proper marketing because they are not doing
marketing properly they should do more & more advertisement for
selling their goods.
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CONCLUSION
I visited Veebasons Corrugating Pvt. Ltd. for the industrial training.
It is Small Scale & Private Limited Company. It has very good location
with the company. I had found that all the staff members and workers are
working in a co ordinates manner and in a planned way they are more
concentrating about their work and diversifying their efforts towards the
desired target. It is looking the good management and maintenance of
quality of their products. Its business expansion is possible in the future.
So, at the end I wish the Veebasons Corrugating Pvt. Ltd. All The
Best to get desired success in future.
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BIBLIOGRAPHY
Principle of Marketing
B.S. Prakashan
Rana & Savjani
Principle and Practice of Marketing
Sultan Chand & Sons
L.M. Prasad.
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