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Project Report

MS-100

School of Management Studies, INDIRA GANDHI NATIONAL OPEN UNIVERSITY (IGNOU), New Delhi Study Centre Delhi PROJECT REPORT (MS-100)

Analysis of Financial Statements On Haryana Leathers Chemicals Ltd.

In partial fulfillment of the requirement of the degree of MASTER OF BUSINESS ADMINISTRATION (MBA)

BY Iftikhar Ahmed M.B.A Enrolment No. 111070280

Under the Supervision of Prof. P.P. Sovani [M.Com] Retd. Lecturer Dept. of Commerce C.P. & Berar College Nagpur

INTRODUCTION OF COMPANY M/s Haryana Leather Chemicals Ltd. is a company manufacturing chemicals for leather industries. The company has technical collaboration with ICAP (ITALY), HELMITIEN (GERMANY) AND VISMON (SPAIN). It is the only company in northern India having its registered office & works at Jind and corporate office at Delhi. The company has started its commercial production on (01/04/1988) and presently successfully running into profit for the last many years. The company manufacturing leather chemicals and Auxiliaries, Acrylic Emulsion and Adhesives as complete processes for manufacturing various types of leathers. The company has achieved a stable market in India and also exporting its material to number of countries like China, Bangladesh, Ethopia, Pakistan and Kenya etc. initially company has started one E.O.U division at Jind, which is also showing tremendous results by exporting material to various countries. To promote the sale of company some sale office has been working in Madras, Calcutta, Agra and Jalandhar. Although company has a small turnover in the market and having multinational competitors in the field of leather chemicals. Moreover company has established its wide range products that are well known as HL Chemicals. To maintain their quality standards in the market company has having very sophisticated and advanced quality control and a research and development laboratory in which company continuously working for new products for the satisfaction of the customer and receiving latest technology by making technical collaboration with multinational companies. Haryana Leather Chemicals Ltd. Is a public limited company having listing in the Bombay Stock Exchange and its total paid up capital of Rs. 49, 84,700 as well as company having Reserve & Surplus amount 65,574,288 as on Balance Sheet of 31st march 2009It is a matter of great achievement that company is running its Business in profit for the last many years. China is the main market of the products of HLCL.

OBJECTIVES

The basic objective of studying the ratios of the company is to know the financial position of the company. Another reason is to study that the company is going in profit or loss. To know the borrowings of the company as well as the liquidity position of the company. To study the current assets and current liabilities so as to know whether the shareholders could invest in Haryana Leather Chemicals Ltd. or not. To study the profits of the business and net sales of the business and to know the stock reserve for sales of the business. To know the solvency of the business and the capacity to give interest to the long-term loan lenders (debenture holders) and dividend to the shareholders. To study the balance of cash and credit in the organization.

RESEARCH METHODOLOGY

For making this report, I used the following methodology 1. First of all I have collected data from previous annual reports and done ratios analysis after that from collected data. 2. Than taken current year branches capital expenditure and made whole branch capital expenditure. 3. Than I have made the comparisons of how the company has grown in previous years, and done analysis by ratios. Limitation behind this methodology is that whenever we represent through ratios in we are not having an idle situation it become different from company to company depending upon companies values, Missions, Goals.

CONCLUSION By studying the Ratio Analysis and Accounting Process of Haryana Leather Chemicals Ltd. it was found that it consist that company is in good position to meet all type of debt and paid them fully and maintain Assets. Evolving business area where there is stiff competition HLCL proves to have global presence in almost 7 countries and in North India, which has a positive impact on the actual position of the company, and help in maintain the ideal position of the entire ratio. After studying the Accounting Process of the company conclusion is Accounting Process is very necessary for every organization because with accounting process as organization or company cant know his/her company running in profit/loss and also know the financial position of the company. We know that what are the current liability of the company and also know the current Assets of the company with the help of accounting process we make the accounts and written all transaction related to expenditure, profit, Assets, liability, daily routine expenses. It provides important and true information to every one who want to know about the company like shareholders, creditors, bankers and employees of the company etc. so in every organization accounts are made by the company because it help in the smooth running of the company. Like if company makes their A/C properly than they know about all information like how much stock available in the company. How much amount is taken from debtors and how much amount reserve surplus company have. If company has not sufficient amount if reserve and surplus then they done the arrangement of the funds by issuing share or buy sale. So it helps company for future forecasting so in the end we can say that accounting process is very essential for every company. Its value of firm and EPS is increasing which lead to increase in goodwill. Financial ratios relating to the capital structure is improving and showing great sign of improvement. By implementing channel financing there is a discipline among distributors which provides a solution in terms of lower cost, better credit terms and services to the dealers.

BIBLIOGRAPHY

In completing this project report many books, annual reports of Haryana Leather Chemicals Ltd. And many websites are being used. I pay my respect and thanks to them.

Annual reports of Haryana Leather Chemicals Ltd. Financial Management by Mr. I.M Panday. Profile of Financial Management by Mr. Sushil Mukherjee and Pardeep Kumar Chandra. www.leatherchem.com www.wikipedia.org www.bseindia.com www.managementparadise.com www.financescholar.com www.icicidirect.com