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In partial fulfillment of the requirement for award of MASTER OF BUSINESS ADMINISTRATION

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1–7 8 – 18 19 – 20 21 – 53 54 – 56 57 58 – 59

I was lucky to have got an opportunity to work at Akal Sales Pvt. Ltd. and to get the project of my interest. I studied, “Financial Analysis”. I visited the concern for 6 weeks and prepared my project on the topic. I visited every department of the firm to carry out my project report and also to get the practical exposure in the field of management. The study is divide into various chapters to get the full knowledge. I also considered some written material on the particular topic as well as about the concern. I have used 3 years data to analyze various aspects. This has helped me in boosting up my confidence and determination which will help me to face any situation in years come. This report is a written account of what I learnt and experienced during my training. I wish, going through is, will not only find it readable but will also find useful information for the company.

I bow in gratitude to Almighty God for giving me coverage to venture out this project. Any research is never an individual effort. It is contributory effort of many heads, hands of being. A formal statement of acknowledgement will hardly meet the ends of justice in the matter of expression of my deep sense of gratitude and obligation to all those who helped me in the completion of this project. I am thank to Dr. (Col.) H.S. Singha (Director of GNIMT) for his complete support. My special and sincere thanks are reserved for my guide Mrs. Sandhya Mehta (HOD and Assistant Professor of GNIMT) who never said ‘no’ to me and lend me a helping hand whenever I needed her guidance. She always inspired me to learn more & more. I am extremely thankful Mr. Surinder Singh (Owner of MS Bhoagl.) for permitting me to undergo training in his esteemed organization. No words suffice my feeling of immense gratitude of my project guide Mr. Lakhwinder Singh for his valuable guidance, increasing encouragement and untiring efforts during the course of training. His generosity and humility will always be remembered me. He cooperated with me throughout these 6 weeks for the completion of my training. Last but not least, I would like to thank all the staff members of Akal Sales Pvt. Ltd, for their cooperation and dealing a friendly environment for us in the organization. I feel highly previliged to be grateful to my parents for their encouragement and support in this regards as they do in every sphere of life. I also extend my warm thanks to my parents who always encouraged me to work earnestly during the project work.

S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Name of Table Current ratio Quick ratio/liquidity ratio Absolute liquidity ratio Inventory turnover ratio Debtors turnover ratio Creditors turnover ratio Working capital turnover ratio Debt – equity ratio Funded debt to total capitalization ratio Proprietory ratio Solvency ratio Fixed asset to net worth ratio Fixed assets ratio Ratio of current assets to proprietor’s funds Net profit ratio Gross profit ratio Operating ratio Operating profit ratio Return on shareholder’s investment Return on equity share capital Page No.



The present business environment in Ludhiana is vastly different from what it was a decade age. In the wake of liberalisation of globalization, domestic industry has to gear it self for the new challenges of global competitveness and quality Ludhiana, the industrial hub of Punjab stands out as a symbol of handwork and entrepreneurial skills of its citizens. Ludhiana district has now come to occupy a places of priced in the field of small scale industry. The industries of the district are for the most part centralized at Ludhiana. Some industrial units are coming up in the adjoining towns like khanna, gobindgarh The most independence period gave a big stimulus to the industrial growth of Ludhiana and industries like hosiery, manufacture of cycle parts serving machines, dying which has made tremendous progress under the various five year plans. With more and more state help and made R&D activities now the manufacturing is also done in textiles, machine tools, motor parts, oil engines, oil expellers, threshing machines, surgical instruments, steel pipes, cuttery, fountain pens, belt fasteners, electric radios, automobile industry (auto parts, auto components) pf trucks, tractors, cars, scooters etc. Automobile is the assembly of several auto parts with each part contributing to its machinery and polishing its quality. The production has grown in Ludhiana to Rs. 60 crores in 96-97. present era has witnessed expansion in industrial economy in Ludhiana. Domestic market is just 15% while auto parts contribute 50% of exports. But the industry has faced many limitation like power shortages, labour crisis, technology, china products “however a drastic changes in the technology being used by Punjab auto part industry and improvement in production technology are required to put it on growth trajectory” EDI survey.

However, Ludhiana has managed to absorb the worst. Information system has helped and is now gearing up for uptrend.

Baba Gurmukh Singh was the founder of “G.S. Auto”. He is grandfather of Sardar Surinder Singh Ryait (Managing Director of Akal Sales Pvt. Ltd). Akal Sales Pvt. Ltd. was formed as a separate entity from G.S. Auto in 1995. Akal Sales Pvt. Ltd. is an existing profit making closely held company leaded by Sardar Surinder Singh Ryait as the managing director. The company has established its name in the local and now in National Market (Indian subcontinent) as the manufacturers and suppliers of auto parts and motor spare parts. M/s Akal Sales Pvt. Ltd. was floated in the year 1995 to deal in Auto and motor spare parts like U – Bolts, Centre Bolts, Spring Pins, Jack Roads, Bushes, Shaft components. U.J. cross and other allied items. It was floated then as a part of “G.S.” Group holding. The company is located in 3705 Sq. yards plot with good infrastructure like roads, goddowns, office docks with computerized working. The company was incorporated under the Companies Act, 1956 as a Pvt. Ltd. Company with the main object of manufacturing auto parts and motor spare parts of trucks, tractors etc. under the brand name of ‘Akal’. Their product is marketed with this brand name and is enjoying good brand image all over India. The company is an ISO 9001-2008 certified company. ISO 9001 certification has been in place for 20 years and used by companies as a means of assuring products and services meeting specifications. The standard provides a framework to manage business and ensure a philosophy of continual improvement in all aspects of business. It is externally assessed on an on going basis to ensure good business practices are maintained and improved.

The company is having dealer network all over India and has accepted dealer deposit of Rs. 806660.24 in the year 2009. The company conducts regular interactions with their dealers through seminars and meetings. S. Surinder Singh Ryait (MD) and S. Harinder pal Singh (Director) are looking after the day to day operations of the company and today Akal Sales Pvt. Ltd. is supported by a chain of 500 distributors, 1000 authorised dealers and 50 service dealers all over India. The prestigious company is employing 500 workers. The company is enrolled in ESI scheme of India. Within a short term of time, the company’s turnover has increased from Rs. 60 lakhs un 1996-97 to Rs. 17.92 crore in 2012.

Within a short span of time, ASPL has meteorically risen to emerge as one of the leading quality and customer oriented brand in India. The company is now planning to venture into overseas market and develop a niche for its products abroad (Global Market). The export division of the company has been planned to be located in Delhi for international trading in Auto parts. • The Guiding Force:-

A never ending urge for betterment and innovative ideas are the hallmark of company’s guiding force. It is because of the vision and leadership qualities of the management of the company, having a strength of 500 employees and a strong network of the dealers has millons of satisfied and proud customers around the country. Finding newer and better ways to improve upon its offerings, the company has felt the pulse of almost all segments of auto customers.

Quality consciousness at Akal Sales Pvt Ltd. does not end at modern factories and the equipment within them. It is a rich blend of high technology with hardcore experience of the managing director. Conformance to quality standards at AKAL begins on the shop floor where every worker is committed to the fact that he has not let anything faulty pass through his hands. Right from raw material, procurement, processing to assembling stage, every step is monitored. Efforts are being made to establish a highly advanced Research and Design Centre so as devise ways to produce auto parts with best technology by keeping cost under control. An important step towards quality was undertaken with achievement of ISO certification. The past 10 years have been some exciting developments in standardization and harmonization of fundamental quality management systems requirements and certification infrastructure in Auto Components. Under the dynamic leadership of its visionary Managing Director, Mr. Suriender Singh, the company has achieved spectacular progress.


Auto Parts and motor spare parts U Bolts Centre Bolts Spring Pins Jack Rods Bushes Shaft Components U.J. Cross And other allied items. Along with the finished products, the raw material is also thoroughly tested before bring processed in the production department.





Name of the allocation of office Name & Regd. Office Akal Sales Pvt. LTd. Village Jugiana, Kanganwal Road, Ludhiana – 141420 Administrative Body Board of Directors S. Surinder Singh Ryait (Managing Director) Mrs. Mehar Kaur (Director) S. Harinder Pal Singh (Director) Executives Finance & Accounting Auditors Bankers Quality E-mail S. Ravinderjeet Singh (Sr. Manager) M/s Rajesh Mehru & Co. Fountain Chowk, Ludhiana IDBI Bank Ltd. Ludhiana ISO 9001-2008 Certified Company


Ball and Brown (1968) were the first to highlight the relationship between stock prices and information disclosed in the financial statements. Empirical research on the value relevance has its roots in the theoretical framework on equity valuation models.

Ohlson(1995) depicted in his work that the value of a firm can be expressed as a linear function of book value, earnings and other value relevant information. Financial statement lending is rarely used for small business lending as it looks at the audited financial statement of companies that have a access to public credit market. In contrast, relationship lending, is based on “soft” information about the potential borrower. In other words, banks rely on the subjective information about a borrower that they received out of the lasting relationships rather than on financial condition of the borrowers. Another indication of relationship lending as reported by Cavalluzzo, Cavalluzzo, and Wolken (2001) is that 84 percent of the loans received by small businesses came from lending institutions located in the same city. The median distance between the firm and the lender was just three miles.

Allen Berger (1999) defines three conditions that should be met for relationship-based finance to occur. First, information other than data from financial statements, collateral and other public resources is collected. Second, the information is collected via continuous communication between the lender and the small business, the customers of the small business, and local community. Third, the information is confidential and can be used only for making further lending decisions.



OBJECTIVES OF THE STUDY The title of the study is, “Financial Analysis of Akal Sales Pvt. Ltd.” The primary objective of the study was to have knowledge of financial aspects of the company. Specifically the objectives of the study are as follows:-

1. 2. 3. 4. 5. 3.2

To know the company’s ability to meet it’s current and short terms obligations. To know the company’s profitability position. To know the company’s ability to tackle the long term obligations. To know about the trend of the profit and sales of the company. To know about the working capital requirements of the company. RESEARCH DESIGN AND METHODOLOGY Description of Research Design Research design is the choice of appropriate method of doing research keeping in view the nature of problem, the environment and the merits and demerits of each method. Exploratory Research To study the, “Financial Analysis of Akal Sales Pvt. Ltd.” I had undergone exploratory research. For carrying out exploratory research, two approaches were adopted, these are:1. Literature Survey 2. Experience Survey


Literature Survey:- It is the quickest and most economical way of doing research. Under this, one is to review the work of fellow researchers in the field who had been these before. After this, I made a through search of secondary source of information such as: [a] Books [b] Company records [c] Newspapers/Magazines [d] Trade Journals [e] Websites.


Experience Survey:- I have attempted to top the experience and expertise by interacting with the knowledgeable persons concerned with the area of research such as finance, account manager of Akal Sales Pvt. Ltd.. Through a series of structured and unstructured interviews, these persons were requested to give their views and options on the various aspects.


SOURCES OF DATA Data may be obtained either from primary or from secondary sources. A primary is one that itself collects the data and secondary source is one that makes available data which was collected by some other agency. Various books, company’s records, newspapers, internet etc. were used for collecting data.


SAMPLING PROCEDURE Sampling procedure is adopted when secondary data are not available for the problem under study. As my study was mainly on secondary data and it was easily available to me. Therefore, no sampling procedure was applicable. To fulfill the objectives financial analysis tools namely Ratio Analysis has been choosen.




The term “Financial Analysis” also known as analysis and interpretation of financial statements refers to the process of determination of financial strengths and weaknesses of the firm by establishing strategic relationship between the items of profit and loss account and balance sheet. Purpose:• - Financial performance To use financial statements to evaluate an organization. Past Present Future - Financial Position Solvency Growth Earning Capacity • To have a means of comparative analysis across time in terms of In a Company Inter Company Industrial Averages • To apply analytical tools and techniques to financial statements to obtain useful information to aid decision making. Financial Analysis is the starting point for making plans, before using sophisticated forecasting and planning procedure. Moreover, analysis and interpretation both are complementary to each others. Interpretation requires analysis while analysis is useless without interpretation. Financial analysis involves comparison for similar figures in different periods, different figures in the same period and similar figures of different enterprises.

Information provided by financial statements is not an end in itself as no meaningful conclusions can be drawn from statements alone. The information is made useful through analysis and interpretation. 4.2 TOOLS OF FINANCIAL ANALYSIS

There are number of methods and techniques that are used to analyses the financial position of a firm. The following are the methods that are generally used for analysis:1. 2. 3. 4. 5. 6. 7. Ratio Analysis Trend Analysis Comparative Statement Analysis Common Size Statement Analysis Fund Flow Statement Analysis Cash flow Statement Analysis CVP Analysis The tools that I have used in my study are    Ratio Analysis Trend Analysis Comparative Statement Analysis The theoretical details of these are discussed as follows. 4.3 OBJECTIVES ANALYSIS:To assess the earning capacity or profitability of the firm. To assess the operational efficiency and managerial effectiveness. To assess the short term as well as long term solvency position of the firm. To identify reasons for the change in profitability and financial position of the firm. To make inter firm comparisons. To make forecasts of future prospects. To assess progress over a period of time. AND IMPORTANCE OF FINANCIAL STATEMENT

To help in decision making and control. To provide information for taking credit. 4.4 PROCEDURE FOR FINANCIAL STATEMENT ANALYSIS

Broadly speaking there are three steps involved in the analysis of financial statements. These are:i. ii. iii. Selection:- It involves selection of information [data relevant to the purpose of analysis of financial statements]. Classification:- It involves methodicating the way of classifying the data. Interpretation:conclusions. Steps 1st Step:- Analyst should acquitain himself with principles postulates of accounting. 2nd Step:- Extent of analysis should be determined. Objectives of analysis should be set. 3rd Step:- Financial data given in statements should be re-organized and re-arranged. 4th Step:- Relationship should be established with the help of financial tools like ratio, trend etc. 5th Step:- Interpret the information. 6th Step:- Draw conclusion in the form of report. 4.5 COMPARATIVE STATEMENT ANALYSIS It involves drawing inferences and

The comparative financial statements are statements of the financial position at different periods of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods. From practical point of view, generally, two financial statements (balance sheet and income statement) are prepared in comparative form for financial analysis purposes. Not only the comparison of the figures of two periods but also relationship between balance sheet and income statements enables an indepth study of financial position and operative results. The two comparative statements are:-

i. ii. i.

Comparative Balance sheet Income Statement

Comparative Balance Sheet :- The comparative balance sheet is the study of the trend of the same items or group of items in two or more balance sheets of the same business enterprise on different dates. The changes can be observed and reflect the conducts of business.


Comparative Income Statement:- The income statement gives the results of the operations of a business. The comparative income statement gives an idea of the progress of a business over a period of time. The changes in absolute data money values and percentages can be determined to analyse the profitability of the business. Akal Sales Pvt. Ltd.. . uses comparative statements to access its financial performance for current year with past years performance. It also uses the technique for making inter company comparison. 4.6 TREND ANALYSIS

The financial statements can be analysed by computing trends of series of information. This method determines the direction upwards or downwards and involves the computation of the percentage relationship of each statements item base to the same item in the base year. The information for a number of years is taken and one year, generally, the first years is taken as a base year. The figures of the base years are taken as 100 and the trend ratios for other years are calculated on the basis of the base year. The analyst is able to see the trend of figures whether upwards or downwards. Procedure for calculating trends 1. 2. 3. One year is taken as base year. Generally, the first year is taken as base year. The figure of base year are taken as 100. Trend percentages are calculated in relation to the base year.

If a figure in other year is less than the figure in base year the trend percentage will be less than 100 and it will be more than 100 if figure is more than the base year figure. Each year figure is divided by the base years figure. The base period should be carefully selected and should be a normal period. Akal Sales Pvt. Ltd.. . uses trend analysis techniques to estimate its progress in corporate world. 4.7 INTRODUCTION TO RATIO ANALYSIS

The ratio analysis is one of the most powerful tools of financial analysis. It is the process of establishing and interpreting various ratios [quantitative relationship between figure and groups of figures]. It is with the help of ratios that the financial statements can be analyzed more clearly and decisions made from such analysis. Nature of Ratio Analysis Ratio Analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions. However, ratio analysis is not an end in itself. It is only a means of better understanding of financial strengths and weaknesses of a firm. There are a number of ratios which can be calculated from the information given in the financial statements but the analyst has to select the appropriate data and calculate only a few appropriate ratios keeping in mind the objectives of analysis. Steps involved in the Ratios Analysis i. ii. iii. Selection of relevant data from the financial statements depending upon the objective of the analysis. Calculation of appropriate ratios from the above data. Comparison of calculated ratios with the ratios of the same firm in the past or the ratios developed from projected financial statements or the ratios of some

others firms or comparison with the ratios of the industry to which the firm belongs. iv. Interpretation of the ratios.

Use or Significance of Ratio Analysis It is with the help of ratios that the financial that the financial statements can be analyzed more clearly and decision made from such analysis. The use of ratios is not confined to financial managers only. There are different parties interested in the ratio analysis for knowing the financial position of a firm for different purposes. With the use of financial ratios, one can measure the financial condition of a firm and can point out whether the condition it strong, good, questionable or poor. (a). 1. 2. 3. 4. 5. 6. (b). Managerial uses of ratio analysis Helps in decision making – from the information provided in the financial statements. Helps in communicating – the financial strength weakness of a firm in an understandable manner to the interested parties. Helps in co-ordination – for efficient and effective business management. Helps in control – standard ratios can be based upon Performa financial statements and deviations, if any, can be checked and removed by taking timely actions. Helps in financial forecasting and planning - planning is looking ahead and the ratios calculated for a number of years work as a guide for the future. Other uses – budgetary control, standard costing etc. Utility to shareholders/Investors An investors in the company will like to assess the financial position of the concern where he is going to invest his first interest will be the security of his investment and then the return in the form of dividend or interest. He will assess the value of fixed assets and loans raised against them. (c). Utility to creditors

The creditors or supplies extend short term credit to the concern. They are interested to know whether financial position of the concern warrants their payments at the specified time or not. If the current assets are quite sufficient to meet current liabilities then the creditors will not hesitate in extending credit facilities. (d). Utility to employees The employees are also interested in the financial position of the concern especially profitability. Their wage increases and amount of fringe benefits are related to the volume of profits earned by the concern like gross profit, operating profit, net profit ratios etc. (e). Utility to Government Government is interested to know the overall strength of the industry. Various financial statements published by industrial units are used to calculate ratios for determining short term, long term, and overall financial position of the concerns. Government may base it’s future policies on the basis of industrial information. (f) Tax Audit requirements Section 44 AB was inserted in Income Tax Act by the Finance Act, 1984. Under this section, every assessor engaged in any business and having a turnover or gross receipts exceeding Rs. 40 lakhs in required to get the accounts audited by chartered accountant and submit the tax audit report. Clause 32 of Income Tax Act requires that the following accounting ratios should be givem: (i). Gross profit/turnover (ii). Net profit/turnover (iii). Stock in trade /turnover (iv). Material consumed/Financial goods produced Limitations Of Ratio Analysis Though ratios are simple to calculate and easy to understand yet they suffer from some serious limitations.

1. Limited use of a single ratio:- A single ratio, usually does nor convey much of a sense. To make a better interpretation a number of ratios have to be calculated which is likely to confuse the analyst than help in making any meaningful conclusion. 2. Lack of adequate standards:- There are no well accepted standards or rules of thumb for all ratios which can be accepted as norms. 3. Inherent limitations of Accounting:- Like financial statements, ratios also suffer from the inherent weakness of accounting records such as their historical nature. Ratios of past are not necessarily true indicators of the future. 4. Change of accounting procedure:- Change in accounting procedure by a firm often makes ratio analysis misleading eg. a change in valuation methods of inventories from FIFO and LIFO increases the cost of sales and reduces considerably the value of closing stocks which makes stock turnover ratio to be lucrative and unfavourable gross profit ratio. 5. Window Dressing:- Financial statements can easily be window dressed to present a better picture of its financial and profitability position to outsiders. Hence, one has to be very careful in making decisions from ratio calculated from which such statements. 6. Personal Bias:- Ratio are only means to financial analysis and not an end itself. Ratio has to be interpreted and different people may interpret the same ratio in different ways. 7. Incomparable:- Not only the industries differ on their nature but also the firms of a similar business widely differ in their size and accounting procedures etc. Hence, it makes comparison of ratios difficult and misleading. 8. Absolute Figure Distortive:- Ratios devoid of absolute figures may prove Distortive as ratio analysis is primely a quantitive analysis and not a qualitative analysis. 9. Price level changes:- while making ratio analysis, no consideration is made to changes in price levels and this make the interpretation of ratios invalid. 10. Ratios no substitutes:- Ratio analysis is merely a tool of financial statement analysis. They are meaningless in absence of such statements. 11. Cures not conclusion:- Ratios provide only dues to analyst and not final conclusions. They are to interpreted by experts and there are no standards rules of interpretation. 4.4 CLASSIFICATION OF RATIOS

In view of various users of ratios, there are many types of ratios which can be calculated from the information given in the financial statements. Eg. a supplier of goods of a firm on credit or a banker advancing a short term loan to a firm, is interested primilarly in short term paying capacity of the firm or say its liquidity.

Classification of Ratios a. Traditional classification b. Functional classification c. Significance classification


Functional Classification or Classification according to assets

Long term Solvency Liquidity Ratios A. 1. Current Ratio 2. Liquid Ratio 3. Absolute Liquidity Ratio 4. Interval measure b. 1. Debtor turnover Ratio 2. Creditors turnover ratio 3. Inventory turnover Ratio Debt equity ratio Debt to total capital ratio Interest coverage ratio Cash flow/ debt ratio Capital gearing Or Leverage Ratios

Activity Ratios or Asset Mgt. Ratios Inventory turnover Ratio Debtor turnover Ratio Fixed Assets turnover Total asset turnover ratio Working cap turnover ratio Payable Turnover Ratio Capital Employed turnover In relation to investment Return on investments Return on capital Return on capital employed Return on total resources EPS P/E Ratio In relations to sales :Gross profit ratio Operating ratio Operating profit ratio Net profit ratio Expense Ration Profitability Ratios


Classification according to significance or importance

The ratios have also been classified according to their significance or importance. Some ratios are more important than others and a firm may classify them as primary and secondary ratios. The primary ratios are one which are of prime importance to a concern. The other ratios which support or explain the primary ratios are called secondary ratios. eg. return on capital employed is a primary ratio and relationship of operating profit to sales or relationship of sales to total assets is a secondary ratio.

Akal Sales Pvt. Ltd. . uses ratio analysis along with trend and comparative statement analysis to judge it’s past, present and future performance. To see it’s growth it’s ditches and how to overcome item. It uses it to see it’s solvency, liquidity and profitability position.


RATIO ANALYSIS OF Akal Sales Pvt. Ltd..


Analysis of Ratios


Liquidity Ratio Liquidity refers to the ability of the concern to meet it’s current obligations as and when these become due liquidity ratios, by establishing a relationship between cash and other current assets to current liabilities, provide a quick measure of liquidity. The failure to meet it’s obligations due to lade of sufficient liquidity, will results in poor credit worthiness. A high degree of liquidity is also bad, idle assets earn nothing. Therefore, there must be balance between high liquidity and lack of liquidity. To measure the liquidity of a firm, the following ratios can be calculated.


Current Ratio:- Indicates the availability of current assets in rupee for every one rupee of current liabilities. Current Assets Current ratio = -----------------------Current Liabilities Current Ratio of Akal Sales Pvt. Ltd. Years Current Assets Current Liabilities Current Ratio Interpretation A ratio equal or near to the rule of thumb of 2:1 i.e. current assets double the current liabilities is considered to be satisfactory. So, in the year 2010, 11, the company has a very high current ratio which is not favourable. But in the year 2012, it has a favourable current ratio. 2010 36403063.42 11801247.73 3.08 2011 32557122.96 9441802.71 3.45 2012 40810103.51 14609005.03 2.79


Quick Ratio:- This ratio is also known as acid test ratio. It refers to the ability of the firm to pay its short term obligations as and when they become due. An asset is said to be liquid if it can be converted into cash within a short period of time without lose of value. Quick Assets = Quick Assets -----------------------Current Liabilities Quick Ratio of Akal Sales Pvt. Ltd. Years Quick Assets Current Liabilities Quick Ratio Interpretation 2010 30584146.62 11801247.73 2.59 2011 23952272.17 9441802.71 2.54

Quick Assets = Total Current assets - [Inventory + prepaid expense]

As a rule of thumb, quick ratio of 1:1 is considered satisfactory. If quick assets are equal to current liabilities then the concern may be able to meet it’s short turn obligations.

The quick ratio of Akal Sales Pvt. Ltd.. is not fluctuating much. But they may considered satisfactory as the quick assets are sufficient to pay its current liabilities. 3. Absolute Liquid Ratio:- some authorities are of the opinion that the absolute liquid ratio should also calculated together with current ratio and acid test ratio so as to exclude even receivables from current assets and find out absolute liquid assets. Absolute liquidities Absolute liquid ratio =-----------------------Current Liabilities Absolute liquid assets = Cash and bank + short term securities Absolute liquid Ratio of Akal Sales Pvt. Ltd. Years Absolute liquid Assets Current Liabilities Absolute liquid ratio [in times]
0.1 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 2010 2011 2012 Quick Ratio

2010 1089090.61 11801247.73 0.09

2011 23952272.17 9441802.71 0.06

2012 511219.42 14609005.03 0.03





Current Assets movement or efficiency ratio activity ratios measure the efficiency or effectiveness with which a firm manage it’s resources or assets. These ratios are also called turnover ratios because they indicate the speed with which the assets are converted or turned over into sales.


Inventory Turnover Ratio:- It indicates whether the inventory has efficiently used or not. The purpose is to see whether only the required minimum funds have been locked up in inventory. It indicates the number of times the stock has been turned over during the period. Net Sales ------------Inventory

Inventory Turnover Ratio Quick Assets =

Inventory turnover Ratio of Akal Sales Pvt. Ltd. Years Net sales Inventory Inventory Turnover Ratio [in times] Inventory Conversion Period [365] Approx 2010 51986696.62 5681500 9.15 40 days Approx 2011 50928182.74 7682905 6.6 55 days Approx

The inventory has been disposed off in 40 days on an average in 2010 and in 55 days in 2011.


Debtors/Receivables turnover Ratio:- Debtors velocity indicates the number of times the debtors are turned over during a year. Generally, the higher value of debtors turnover, the more efficient is the management of debtors/sales or more liquid are the debtors. Debtors Turnover ratio = Total credit sales -----------------------Debtors 2010 51986696.62 29495056.01 1.76 2011 50928182.74 23350333.58 2.18 2012 70400766.12 30582072.33 2.30

Debtors turnover of Akal Sales Pvt. Ltd. . Years Total Sales Debtors Debtors Turnover Ratio

2.18 1.76



1.5 Debtors turnover ratio 1


0 2010 2011 2012

Interpretation Since, there is no rule of thumb to interpret this ratio. Generally, the higher value of debtors turnover is considered as a reflection of efficient management. Therefore, the debtors turnover ratio of Akal Sales Pvt. Ltd. is improving from year to year. It has improved from 1.76 times to 2.3 times in 2012.

Average collection period =

No. of working days -----------------------Debtors turnover ratio 2011 360 -----------2.18 = 165 days Approx 2012 360 -----------2.30 = 156 days Approx

2010 360 -----------1.76 = 204 days Approx Interpretation

Average collection period ratio represents the average no. of days for which a firm has to wait before its receivables are converted into cash. Generally, shorter collection period represents better quality of debtors which implies quick payment. Hence, average collection period of Akal Sales Pvt. Ltd. is not satisfactory through they are improving.


Creditors/payable turnover Ratio:- A supplier of goods i.e. creditor is generally interested in finding out how much time the firm is likely to take in repaying its creditors. Creditors Turnover ratio = Net credit annual purchases -------------------------------Average trade creditors 2011 47089402.41 9082532.71 5.2 2012 65367002.33 14325913.03 4.6

Creditors turnover of Akal Sales Pvt. Ltd. . Years Purchases Creditors Creditors Turnover Ratio 2010 47196396.65 10261402.29 4.6

5.3 5.2 5.1 5 4.9 4.8 4.7 4.6 4.5 4.4 4.3 2010


Creditors turnover ratio





Interpretation Generally, higher the creditors velocity is considered better. Hence, the creditors velocity of 2011 is favourable. Average payment period = No. of working days -----------------------Creditors turnover ratio

2010 360 -----------4.6 = 78 days Approx

2011 360 -----------5.2 = 69 days Approx

2012 360 -----------4.6 = 78days Approx

Interpretation Average payment period ratio represents the average no. of days taken by the firm to pay its creditors. Generally, lower the ratio the better is the liquidity position. Hence, it is favourable in 2011.


Working Capital Turnover Ratio:- Working capital of a concern is directly related to sales, current assets and increase/decrease in sales. Working capital = current assets – current liabilities It indicates the velocity of utilization of net working capital. This ratio indicates the no. of times the working capital is turned over in the course of a year. It reflects the efficiency with which the working capital is being used by a firm. Working Capital turnover ratio = Cost of sales/ Sales -----------------------Average working capital 2010 24601815.69 51986696.62 2.1 2011 23115320.25 50928182.74 2.2 2012 26201098.48 70400766.12 2.7

Working capital turnover ratio of Akal Sales Pvt. Ltd. . Years Working capital Sales Working capital turnover ratio [in times] Interpretation It is evident that the working capital turnover is improving.

5.1.2. Analysis of long term financial position or tests of solvency a. • • • • • • • Capital Structure Ratios Debt – equity ratio Funded debt to total capitalisation ratio Proprietory Ratio Solvency Ratio Fixed assets to Net worth Ratio Fixed assets ratio Ratio of current assets to proprietor’ funds a. Leverage Ratio Financial leverage or leverage ratios are calculated to judge the long term financial position of the firm. These ratios indicate a mix of funds provided by owner’s equity in financing the firm’s assets. b. Coverage Ratios Interest coverage ratio

1. assets.

Debt equity ratio:- debt equity ratio is known as external –internal equity ratio is

calculated to measure the relative claims of outsiders and the owners against the firms’s External equity / Outsider’s fund -----------------------------------------Internal equity/ Shareholder’s fund Debt equity ratio of Akal Sales Pvt. Ltd. . Years 2010 2011 2012 Shareholder’s fund 6144104.52 5836222.63 5842608.24 Outsider’s fund 35906683.35 31763511.77 39562634.71 Debt equity ratio [in times] 5.8 5.4 6.8 Shareholder’s fund = Equity share capital + preference share capital + reserve & surplus Outsider’s fund = all debts/liabilities to outsiders whether long term or short term Interpretation A ratio of 1:1 may be usually considered to be satisfactory ratio although there is no rule of thumb or standard norm. Generally, speaking a low ratio i.e. debt being low in comparison to shareholders funds is considered as favourable from the long term creditors ratio. But here, the company is using more debt than any other source of fund. Hence, the situation is unfavourable. 2. Funded debt to total capitalisation ratio:- The ratio establishes a link between long term raised from outsiders and total long term funds available in the business. Funded debt to total capitalisation ratio = Funded debt ------------------------ × 100 Total capitalisation

Debt equity ratio =

Funded debt = Debentures +Mortgage loans +Bonds +other long term loans Total capitalisation = Equity share capital + preference share capital + reserves & surplus + other undistributed reserves + Debentures +Mortgage loans +Bonds +other long term loans Funded Debt to Total Capitalisation ratio of Akal Sales Pvt. Ltd. . Years Funded Debt Total capitalisation Funded Debt to total capitalisation ratio [in times] 2010 237227960.62 30249540.14 78% 2011 21944234.06 28157931.639 77% 2012 24548262.68 30796237.92 79%

Interpretation The company has relied too much on outsider’s source for raising the long term funds and it’s not good for the company.


Proprietory Ratio or Equity ratio:term, solvency of the firm. Proprietory ratio =

This ratio establishes relationship between

shareholder’s funds to total assets of the firm. It is an important ratio for determining long Shareholder’s fund -----------------------Total assets Proprietory ratio of Akal Sales Pvt. Ltd. . Years Shareholder’s fund Total assets Proprietory ratio [in times] 2010 6144104.52 41959391.86 14.64% 2011 5836222.63 37534490.4 15.55% 2012 5842608.24 45339998.95 12.89%

Interpretation Higher the ratio, better is the long term solvency position. This ratio indicates the extent to which the assets of the company can be lost without affecting the interest of the creditors. But the proprietory ratio of Akal Sales Pvt. Ltd. . is not satisfactory. 4. Solvency ratio:- This ratio indicates the relationship between the total liabilities to outsiders to total assets of a firm. Solvency ratio = Total liabilities to outsiders ---------------------------------- ×100 Total Assets

Total liabilities to outsiders = Secured loans + Unsecured loans + current liabilities Solvency ratio of Akal Sales Pvt. Ltd. . Years Total liabilities to outsiders fund 2010 33354596.35 2011 29247352.77 2012 36740583.71

Total Assets Solvency ratio [in times] Interpretation

41959391.86 79.49%

37534490.4 77.92%

45339998.95 81.03%

Generally, lower the ratio, more satisfactory or stable is the long term position of the firm. But the ratio of Akal Sales Pvt. Ltd is quite high. Hence, the solvency position of not at all satisfactory.


Fixed assets to Net worth ratio or Fixed asset to proprietor’s funds ratio ratio:- This ratio establishes the relationship between fixed assets and shareholder’s funds. Fixed assets to Net worth = Fixed assets (After Depreciation) -------------------------------------Shareholder’s fund 2010 5556328.44 6144104.52 90.43% 2011 4977367.44 5836222.63 85.28% 2012 4529895.44 5842608.24 77.53%

Fixed assets to Net worth ratio of Akal Sales Pvt. Ltd. . Years Fixed Assets Net worth Fixed assets to Net worth ratio [in times] Interpretation Generally, the purchase of fixed assets should be financed by shareholder’s equity. If the ratio is less than 100%, it implies that owner’s funds are more than the total fixed assets and a part of working capital is provided by the shareholders. There is no ‘rule of thumb’ to interpret this ratio but 60 to 65% is considered satisfactory. Hence, the ratio in case of Akal Sales Pvt. Ltd. is satisfactory. 6. Fixed assets to long term funds or Fixed asset ratio:- This ratio indicates the extent to which total of fixed assets are financed by long term funds of the firm. Fixed assets ratio = Fixed assets (After Depreciation) -------------------------------------Total long term funds 2010 5556328.44 30249540.14 18.37% 2011 4977367.44 28157931.69 17.68% 2012 4529895.44 30796237.92 14.71%

Fixed assets ratio of Akal Sales Pvt. Ltd. . Years Fixed Assets Total long term funds Fixed assets ratio [in times] Interpretation

Generally, the total of fixed assets should be equal to total long term funds or say the ratio should be 100%. But in case the fixed assets exceed the total long term fund, it implies that the firm has financed are part of fixed assets out of current assets or working capital which is not good. Here, Akal Sales Pvt. Ltd. , the fixed assets, it means that a part of working capital requirements are met out of long term funds, hence, the firm’s financial policy’s good.


Ratio of Current Assets to proprietor’s funds:- This ratio indicates the extent to which proprietor’s funds are invested in current assets. Current assets ---------------------------Shareholder’s funds

Ratio of Current assets to proprietor’s funds =

Ratio of Current assets to proprietor’s funds of Akal Sales Pvt. Ltd. . Years Current assets Proprietor’s fund Ratio [in times] Interpretation The current assets of Akal Sales Pvt. Ltd. are more than the proprietor’s fund. 2010 36403063.42 6144104.52 5.92 2011 32557122.96 5836222.63 5.58 2012 40810103.51 5842608.24 6.98


Coverage Ratio 1. Debt service ratio or interest coverage ratio:- Net income to debt service ratio is used to test the debt – servicing capacity of a firm. It indicates the number of times interest covered by the profits available to pay the interest charges. Interest Coverage Ratio = Net Profit (Before Interest & TAXES) ---------------------------------------------Fixed Interest Charges

Interest Coverage ratio of Akal Sales Pvt. Ltd. Years 2010 2011 Net profit (before interest & tax) 2123003.27 2925846.75 Fixed interest charges 2052598.73 2892713.64 Interest coverage Ratio [in times] 1.03 1.01 Interpretation The interest coverage ratio through is not much higher but it can be considered satisfactory so long as the NP is more than the fixed interest charges of Akal Sales Pvt. Ltd. .


Analysis of Profitability Ratios a. General Profitability ratios 1. Net profit ratio 2. Gross profit ratio 3. Operating ratio 4. Operating profit ratio b. Overall profitability ratios 1. Return on shareholders funds 2.Return on equity share capital


General profitability ratio:- The primary objectives of a concern is to earn profits. A business needs profits not only for its existence but also for expansion & diversification. A business enterprise can discharge it’s obligations to various segments of society only through earning of profit. Profits are thus, a useful measure of overall efficiency of a business. Generally, profitability ratios are calculated either in relation to sales or in relation to investment.


Net profit ratio:- Net profit ratio establishes a relation between net profit (after tax) and sales, it includes the efficiency of management in manufacturing, selling, administrative and other activities of the firm. Net profit Ratio = Net Profit after tax ----------------------------- × 100 Net sales 2012 6385.61 70400766.12 0.009%

Net profit ratio of Akal Sales Pvt. Ltd. Years 2010 2011 Net profit (before interest & tax) (123922.46) 22892.11 Net sales Net profit Ratio [in times] Interpretation 51986696.62 50928182.74 0.045%

This ratio indicates the firm’s capacity to face adverse conditions and to pay return on investments. Obviously, high ratio is better. Hence, the net profit of Akal Sales Pvt. Ltd. in 2010 are negative. But gradually it has enabled to earn profit through the profitability ratio is very low in 2011 & 2012. Due to increased indirect expenses like salaries, depreciation, financial exp. etc. 2. Gross profit ratio:- This ratio express the relationship between gross profit and net sales. It indicates the degree to the which the selling price of goods for unit may decline without resulting in losses from operation to the firm. It reflects the efficiency with which the firm can produce its products. Gross profit Ratio = Gross Profit ---------------- × 100 Total sales Gross profit ratio of Akal Sales Pvt. Ltd. Years Net profit (before interest & tax) 2010 (123922.46) 2011 22892.11 2012 6385.61 70400766.12 6.56%

Total sales 51986696.62 50928182.74 Gross profit ratio [in times] 8.60% 10.61% GIP = Sales + + increase in stock – purchase – direct expense Interpretation

Higher gross profit is a sign of good management. A low gross profit ratio may reflect high cost of good sold to the firms in ability to purchase raw material at favourable terms. Hence, gross profit ratio of Akal Sales Pvt. Ltd. has increased from 2009 – 10 to 2010 – 11. This is good sign for the company. But in 2011 – 12 this ratio has decreased due to increase in sales. 3. Operating ratio:- Operating ratio measures the cost of operations per rupee of sales. In other words, this ratio indicates the percentage of sales, which is consumed by operating cost. Operating Cost ---------------Net sales Operating cost = Cost of goods sold + operating expenses Operating Ratio = COGS = Sales – GP Operating profit ratio of Akal Sales Pvt. Ltd. Years 2010 2011 Operating cost 49244644.35 47459146.99 Net sales 51986696.62 50928182.74 Operating ratio [in times] 94.72% 93.19% GIP = Sales + + increase in stock – purchase – direct expense Interpretation This ratio indicates the percentage of sales that have been consumed by operating cost. Higher operating cost is less favourable because it would have a small margin (operating profit) to cover interest, income tax, dividend & reserves upto 75 to 85%. However in a manufacturing concern is considered satisfactory. The operating ratio of Akal Sales Pvt. Ltd.. is quite high as it increased to 96% in 2012 which above the tolerance level. 4. Operating profit ratio:- This ratio is calculated by dividing operating profit is sales. Operating profit Ratio = Operating profit ------------------------- × 100 Sales 2012 67642475.13 70400766.12 96.08%

Operating profit ratio of Akal Sales Pvt. Ltd. Years Operating profit ratio [100 operating ratio] 2010 5.28% 2011 6.81% 2012 3.92%

Interpretation Operating profit of Akal Sales Pvt. Ltd. is quite low is not satisfactory


Overall profitability ratio:- Profits are the measure of overall efficiency of business. The higher the profits, the more efficient a concern is.


Return on shareholder’s investment:- Also known as ROI is the relationship between net profits and proprietor’s funds allover efficiency of a firm. It includes the extent of which the primary objective of a concern i.e. to maximize the earnings is achieved. Net Profit (after Interest & tax) ---------------------------------Shareholder’s fund 2012 6385.61 5842608.24 0.11%

Return on shareholder’s investment =

Return on shareholder’s investment of Akal Sales Pvt. Ltd. Years 2010 2011 Net profit (before interest & tax) (123922.46) 22892.11 Shareholder’s fund Return on shareholder’s investment Interpretation 6144104.52 5836222.63 0.39%

As the ratio reveals how well the resource of a firm are being used. Higher the ratio, better are the results. Hence, the ratio of Akal Sales Pvt. Ltd.. is not at all satisfactory because its quite low and it even declined in 2012. 2. Return on Equity share capital:- In real sense, ordinary shareholders are the real owners of the company. They assume high risk in the company. The rate of dividend varies with the availability of profit in case of ordinary shares only. Return on Equity share capital = Net Profit ------------------------- × 100 Equity Share capital 2012 6385.61 5842608.24 0.11%

Net profit

Return on Equity share capital of Akal Sales Pvt. Ltd Years 2010 2011 (123922.46) 22892.11 6144104.52 5836222.63 0.39%

Shareholder’s fund Return on shareholder’s

investment Interpretation The ordinary shareholders are more interested in the profitability of a company & the performance of a company should be judged on the basis of this ratio. Equity share capital of Akal Sales Pvt. Ltd. has not increased and net profits increased in 2011 but they declined in 2012. The ratio of Akal Sales Pvt. Ltd. is quite low.



Turnover Trend Years Turnover Trend (%) 2010 51986696.62 100 2011 509218182.74 98 2012 70400766.12 138

Turnover trend of Akal Sales Pvt. Ltd.. .

140 120


Turnover Trend






0 2010 2011 2012

Interpretation Sales are the one and only source of any company. what a company produces is for selling purposes and to earn. In three years analysis of Sales of Akal Sales Pvt. Ltd. it was fount that the company sales reduced in 201 but it again increased remarkably in 2012 because of good management policies. Company has reached a satisfactory level in a very short span of time.

i. Gross Profit Trend Years Gross profit Trend (%) 2010 4471853.97 100 2011 540233133 121 2012 4617494.79 85

Gross profit trend of Akal Sales Pvt. Ltd.. .



Gross profit Trend





0 2010 2011 2012

Interpretation Gross profit of Akal Sales Pvt. Ltd.. . has shown a positive increase in 2011, but got reduced in 2012 due to increased manufacturing & direct expenses.


Net Profit Trend Years Net profit Trend (%) 2010 (123922.46) - 100 2011 22892.11 100 2012 6385.61 27

Gross profit trend of Akal Sales Pvt. Ltd.. .



Net profit Trend 2010 2011 2012





Interpretation Net profit of Akal Sales Pvt. Ltd.. . was negative in 2010. The net profits increased substantially in 2011. Though they reduced a bit in 2012.



Comparative Balance sheet of Akal Sales Pvt. Ltd. for the Year 2010, 2011, 2012. Years 2010 Sources of Fund 2011 2012

Equity share capital (i) Reserves & Surplus (ii) Total (i +ii)

(a. Shareholder’s Fund ) 5035948 5035948 1108156.52 6144104.52 (b. Total Debt) 21243165.62 310183 21553348.62 Applications of fund 800274.63 5836222.63 19577867.06 227683 19805550.06

5035948 806660.24 5842608.24 21903895.68 227683 22131578.68

Secured Loans (i) Unsecured Loans (ii) Total (i +ii)

Gross block ( - ) Deprecation Net Block Investment

(c. Fixed Assets) 10189403.55 4633075.11 5556328.44 (D. Investment) 65244

10225631.55 5248264.11 4977367.44 65244

10412051.55 5882156.11 4529895.44 91396.01

(E. Current Assets, Loans & Advances) Sundry Debtors (i) Loans & Advances (ii) Inventories (iii) Cash & bank balance (iv) Total (i+ii+iii+iv) 29495056.01 137416.80 5681500 0.00 36403063.42 23350333.58 921945.79 7682905 20666.91 32557122.96 30582072.33 790360.44 9417003.83 20666.91 40810103.51

Sundry creditors (i) Provision (ii) Advances (iii) Total (i+ii+iii)

(f. Current liabilities & provisions) 10261402.29 9082532.71 244645.26 1295200.18 11801247.73 (g. Net Current Assets) 359270 0.00 9441802.71

14325913.03 283092 0.00 14609005.03

(e – f )




Interpretation The comparative balance of Akal Sales Pvt. Ltd... reveals the following facts. I. II. III. There has been an increase in fixed assets of the company in 2011 by Rs. 9166842 which further increased in 2012 by Rs. 186420. The investment of the company remained same for 2010 and 2011 but increased in 2012 by Rs. 26152.01. The current assets of the company increased in 2012 by Rs. 8252980.55. The current liabilities also increased in 2012. Hence, the net current assets of the company increased to R. 26201098.48 in 2012. IV. V. The debts reduced by Rs. 1747798.56 in 2011 but it again increased in 2012 due to increase in secured loans. The equity share capital of the capital remained same in all the 3 years.

c. Comparative Income Statement of Akal Sales Pvt. Ltd.. for the Year 2010, 2011, 2012. Years Sales Rent Received Increase in Stock Total (A) Purchases Direct Expenses Administrative & Selling expense Financial Expense Payment & Provision for employees Repair & maintenance expenses Miscellaneous expense W/off Director remuneration Depreciation Total (B) Profit before tax Previous year tax Current tax Deferred tax asset Profit after income tax 2010 Revenues (A) 51986696.62 40000 175725 6144104.52 Expenditure (B) 47196395.65 494172 365969 2052598.73 638151 383681.70 780 342000 723219 52196967.08 5454.54 64950 33132 31295 (123922.46) 2011 50928182.74 72000 2001405 53001587.74 47089402.41 437854 418385.58 2892713.64 862234 205676 0.00 447000 615189 52968454.63 33133.11 0.00 10241 0.00 22892.11 2012 70400766.12 60000 1466210 71426976.12 65367002.33 416269 375096.80 3596836.38 740408 296699 0.00 583000 543629 71918940.51 3035.61 0.00 1650 0.00 6385.61

Interpretation i. ii. Sales of Akal Sales Pvt. Ltd increased continuously in 3 years. However, the expenses of the company are high which led to loses in 2010. The company was able to earn profit in 2011 and 2012. The profitability however reduced in 2012.



CONCLUSION Finance is the basic pillar on which the structure of an industrial undertaking is based. This pillar should be properly placed. A hot working environment and attractive incentives for the achievement of targets have obviously created ideal condition in Akal Sales Pvt. Ltd. for both the management and workers. From the very beginning, the profitability position of the concern was improving though sometimes like in 2010 the company had to face losses ; but that was due to the period of depression in economy. Due costly raw material, low technology, high labour cost; the production cost is high. But still the company has generated profits. This shows the efficiency of the management. From the analysis of the financial conditions of the firm, I hereby conclude that any reduction in operation cost as a result of improved technology, efficient & effective management of finance or better source of material would improve the profitability, liquidity and solvency of the organization.


LIMITATIONS Although the training at Akal Sales Pvt. Ltd.. was a great experience, yet the following problems were encountered by me during the course of my training.

1. 2. 3. 4. 5.

There was lack of co-operation at many times. Many difficulties were encountered while interviewing different personnel. There was no proper sitting arrangement for trainees which caused a lot of trouble. There was no special cell or staff for training purposes. The staff does not spare enough time for answering the questions of trainees.


RECOMENDATIONS After undergoing training for a limited period of six weeks in this organization, I found during my training some suggestions but these are merely my own opinion. I hope these will be helpful, of implemented. Following are some of the suggestions that are based on my observations of the company.


Company is having too much loans which results in financial expenses. So, proper strategies and techniques of budgeting should be used. This will result in better utilization of finances.


Company should use (MIS) Management information system as it provides very effective information which ultimately helps in decision making.


Company should install modernized of equipments and machines in production plants and new techniques should also be used to reduced cost and improve quality.

4. 5. 6.

Recruitment should be made on merit basis, qualifications & efficiency. Improve co-operations & co-ordinations among departments. Establishment of separate marketing department.

Book Management Accounting Author R.K.Sharma

Jing Liu, Doron Nissim, and Jacob Thomas; “Is Cash Flow King in Valuations” (2007) Financial Analysts Journal Vol.63 No02, 2007 CFA Institute [12] Kallunki, Juha-Pekka and Paakki, Eija, "Stock Market Response to IFRS/IAS Cash Flows" (August 11, 2005). Available at SSRN. [13] Lev, Baruch and Paul Zarowin, 1999, "The Boundaries of Financial Reporting and How to Extend Them", Journal of Accounting Research [14] Liu, Nissim, and Thomas (March 2002) “Equity Valuations using Multiples” Journal of Accounting Research 40(1). [15] Mingyi Hung, “Accounting Standards and Value Relevance of Financial Statements- An International Analysis” Journal of Accounting and Economics, Vol.30 No.3, Dec.,2000. Rosplock. (1998). Risk and the financial analyst of the year 2000. Business Credit, Vol. 100(Iss. 3), pg. 57. Annual Reports of Akal Sales Pvt. Ltd... at ending year 31ST MARCH 2010, 2011 AND 2012 Sites: