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DECLARATION

I, S.MADHURIMA REG NO. (361398048) pursuing M.B.A Programme in the Department of Business Administration , Sri Kalahastiswara Institute of Information & Management Sciences, Kapugunneri here b declare that the pro!ect wor" entitled A Study on FINA IA! "ERFORMAN E E#A!U$AION IN S$A$E %AN&

OF INDIA' (t S)*+(,(-(.t*. Submitted to Sri #en"ateswara $ni%ersit , &irupati in partial fulfillment of the re'uirements for the ward of the degree of MAS$ER OF %USINESS ADMINIS$RA$ION is a bonafied wor" done b me under the guidance of $. N()(y(n( Go/d, M.B.A, PhD, S&IIMS0 M%A. &o the best of m "nowledge the wor" reported in this does not form part of other the is or wor" based on which a degree or award was conferred on earlier occasion.

Place( Sri"alahasti Date( )S.MADHURIMA*

ON$EN$S
HA"$ER NO. 1. 1. $I$!E IN$RODU $ION DESIGN OF $HE S$UD2 3. 4. =. 6. N33d 4o) t-3 .tudy O5637t*83. o4 t-3 Study S7o93 o4 t-3 Study R3.3()7- M3t-odo,o:y !*;*t(t*on. o4 t-3 Study O83) 8*3/ o4 t-3 -(9t3) .7-3;3 "AGE NO

"ROFI!ES Indu.t)y ")o4*,3 o;9(ny 9)o4*,3

DA$A ANA!2SIS < IN$ER"RE$A$ION FINDINGS SUGGES$IONS < ON !USION ANNE>URES %I%I!OGRA"H2

!IS$ OF $A%!ES

$A%!E NO. 1 1 3 4 = 6 A 8 9 10

$I$!E OF $HE $A%!E u))3nt R(t*o (.- R(t*o D35t0 E?u*ty R(t*o Int3)3.t o83)(:3 R(t*o F*@3d A..3t. $u)no83) R(t*o u))3nt A..3t. $u)no83) R(t*o $ot(, A..3t. $u)no83) R(t*o O93)(t*n: E@93n.3. R(t*o N3t ")o4*t S(,3. R(t*o R3tu)n on In83.t;3nt R(t*o

"AGE NO.S

!IS$ OF GRA"HS
GRA"HS NO. 1 1 3 4 = 6 A 8 9 10 $I$!E OF $HE GRA"HS u))3nt R(t*o (.- R(t*o D35t0 E?u*ty R(t*o Int3)3.t o83)(:3 R(t*o F*@3d A..3t. $u)no83) R(t*o u))3nt A..3t. $u)no83) R(t*o $ot(, A..3t. $u)no83) R(t*o O93)(t*n: E@93n.3. R(t*o N3t ")o4*t S(,3. R(t*o R3tu)n on In83.t;3nt R(t*o "AGE NO.S

DA$A ANA!2SIS < IN$ER"RE$A$ION 1. !*?u*d*ty R(t*oB0


() u))3nt R(t*oB0 &he +urrent ,atio establishes the relationship between +urrent Assets and +urrent -iabilities. &he ob!ecti%es of computing this ,atio is to measure the abilit of the firm. It indicates the a%ailabilit of +urrent Assets in ,upees for e%er ,upee of +urrent -iabilit . &he Satisfactor +urrent ,atio is .(/. &he +urrent ,atio is calculated b di%iding +urrent Assets b +urrent liabilities. A ,ation of greater than one means that the firm has more +urrent assets than +urrent claims against them. +urrent Assets +urrent ,atio 0 111111111111111111111111111111 +urrent -iabilit URREN$ 2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6 ASSE$S /255267438 48/3635/8 /..375/577 47/86/854 //53.2/859 URREN$ !IA%I!I$IES /34.43782 ./243.936 ./7265473 .29253933 /483853.7 URREN$ RA$IO 9.9/9.4..8/ 5.99339../8 9.88/54299 5.763956578 9.36.5687/8

Int3)9)3t(t*on B0
&he abo%e tables shows the current assets, current liabilities and current ratio from the period of .223124 to .2/.1/6. In .223124 the +urrent ratio is 9.9/ of this is same in to the ears .2/21// of .2/.1/6. &he +urrent ratio is decreased in the ears .2241/2 & .2//1/. is 5.99 & 5.76.

5) (.- R(t*oB0
+ash ,atio is the most stringent measure of li'uidit . +ash is the mostl li'uid asset. It is suggested that is would be useful for the Management if the li'uidit measure also ta"e into account reser%e borrowing power. If the compan carried a small amount of cash, there is nothing to be worried. &his +ash ,atio is also called as absolute -i'uid ,atio. &he absolute -i'uid Assets include +ash : in : hand , +ash at Ban" and Mar"etable Securities and temporar Absolute -i'uid ,atio 0 In%estments. +ash ; Mar"etable Securities 111111111111111111111111111111111111111 +urrent -iabilities ASH C MAR&E$A%!E SE URI$IES 6533397388 6.9/257888 674/36.9.5 678632.53. 57496959/9 URREN$ !IA%I!I$IES /34.43782 ./243.936 ./7265473 .29253933 /483853.7

2EAR .223124 .2241.2/2 .2/21.2// .2//1.2/. .2/.1.2/6

ASH RA$IO /3.56256/84 /9.52423274 /7.57/28858 /3.69988/99 .5.6938/546

Int3)9)3t(t*on B0
&he abo%e table shows the each ratio from the period of .223124 to .2/.1/6. &he cash ratio is /3.56 in .223124 & it is continuousl increased in .5.69 in .2/.1/6.

1. !E#ERAGE RA$IO B
() D35t E?u*ty R(t*o B0
Debt <'uit ,atio describing the lenders contributing for each rupee of the =wners contributing. Debt <'uit ,atio indicates relati%e proportion to debt and e'uit in a financing the assets of a firm. It reflects the relati%e contribution of creditors and owners of business in its financing. &he Satisfactor debt e'uit ratio is /( .. A high ratio shows large share financing b creditors of the firm. A low ratio implies a smaller claim of creditors. Debt <'uit ,atio is calculated to "now the e>tent of total debts and net worth used in ac'uiring the assets for firm -ong term -iabilities Debt <'uit ,atio 0 1111111111111111111111111111 <'uit !ONG $ERM !IA%I!I$IES 967/683./ /262//82// //49834992 /.72299832 /84/3.7/68 DE%$ EDUI$2 RA$IO 2.4.8466386 /.98/435/.. /.3644/759. /.9/.354367 /.7/24.8593

2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6

EDUI$2 974578485 89454/438 85438256. 3649/.293 433368395

Int3)9)3t(t*on B0
&he abo%e shows the long term liabilities e'uit and debt e'uit ratio from the period .223124 to .2/.1/6. In the ear .223124 the debt e'uit ratio is 2.4. and it is increased in /.98 in the other ears.

3. A7t*8*ty R(t*o.B0
() Int3)3.t o83)(:3 R(t*o B
<%er firm has to maintain a certain le%el of in%entor of finished goods so as to be able to meet the re'uirements of the business. &his ratio indicates the number of times in%entor is replaced during the ear. It measures how 'uic"l in%entor is sold. &he Interest turno%er reflects the efficienc producing and selling its products. &his of the firm in of the

,atio indicates the %elocit

mo%ement of goods during the ear. A high Interest turno%er is indicati%e of good Interest management . It is ad%isable to maintain reflect dull business.

?et Profit Interest & &a> ) <BI&* Interest +o%erage ,atio 0 1111111111111111111111111111111111111111111 @i>ed Interest +harges

2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6

E%I$ 4/./..89 4/882962 3.859/42 //727.338 /5/254354

FI>ED IN$ERES$ HARGES 5.4/9.467 8785//932 576..5732 86.626837 576..5732

IN$ERES$ O#ERAGE RA$IO 2../.952.6. 2./69924449 2./7585.988 2./39/9.464 2..43282449

Int3)9)3t(t*on B0
&he abo%e table shows the operating e>penses ratio from the period .223124 to .2/.1/6. In the ear .223 1 .2/. increasing operating e>penses.

5) $ot(, A..3t. tu)no83) R(t*o

B0

Assets are used to generate sales. &here fore, a firm should manage its assets efficientl to ma>imiAe sales. &he relation between sales and assets is called assets turno%er . &his ratio shows the firmBs abilit resources committed to total assets. Sales &otal Asset &urno%er ,atio 0 11111111111111111111111111 &otal Assets $O$A! ASSE$S 2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6 SA!ES 78574...3 3948.272. 47./34932 /.237.344/ /6984/45.6 $O$A! ASSE$S 48556.2327 /2965/67629 /..6768.229 /6699/4.627 /988.8/2526 $URNO#ER RA$IO 2.274.447544/ 2.23/82666/36 2.2745556796. 2.242928.48.. 2.23886562394 in generating sales from all financial

18000000000 16000000000 14000000000 12000000000 10000000000 8000000000 6000000000 4000000000 2000000000 0 2008-09 2009-10 2010-11 2011-12 2012-13

SALES TOTAL ASSETS TOTAL ASSETS TURNOVER RATIO SALES TOTAL ASSETS TOTAL ASSETS TURNOVER RATIO

Int3)9)3t(t*on B0
&he abo%e table shows the total assets turno%er ratio from the period .223124 to .2/.1/6. &he total assets turno%er ration in .223124 is 2.274 and this is same in to the other ears.

7) F*@3d A..3t. $u)no83) R(t*o B0

&he firm ma "now its efficienc of utiliAing fi>ed assets and current Assets separatel . &his ,atio measures sales to rupee of in%estment in fi>ed assets and current assets. A high ratio indicates a high degree of efficienc in assets utiliAation and low ratio reflects inefficient use of assets.

Sales @i>ed Assets &urno%er ,atio 0 111111111111111111111111111111 @i>ed Assets FI>ED ASSE$S 2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6 FI>ED SA!ES 78574...3 3948.272. 47./34932 /.237.344/ /6984/45.6 FI>ED ASSE$S 6367357. 55/.4287 5785/346 9588954. 72292... $URNO#ER RA$IO /4.4.7868. /4.57484699 .2.528/4/.9 ...///67/6 /4.67288998

Int3)9)3t(t*onB0
&he abo%e tables shows the fi>ed assets turno%er ratio from the period .223124 to .2/.1/6 . in the ears .223124, .224 1/2 & .2/.1/6 the fi>ed assets turno%er ratio is /4.4. & if is increased in to .../// in .2//1/.. .

4. ")o4*t(5*,*ty R(t*o B0
() N3t ")o4*t R(t*o B
C&he net profit is obtained when operating e>pense, interests and ta>es subtracted from the Dross Profit. ?et profit margin establishes a relationship between ?et Profit and Sales indicating the Management efficienc in manufacturing administrating and selling the product. &his ratio is the o%erall measure of the firms abilit to turn each ,upee. Sales into net profit. A ?et Profit margin shows the earning left for shareholders as a percentage of ?et Sales. &his ratio also indicates the firmBs capacit to with stand ad%erse economic conditions. ?et Profit ?et Profit Sales ,atio 0 111111111111111111111111111111 E /22 ?et Sales NE$ "ROFI$ SA!ES RA$IO //.4.85//23 /2.88.42647 3.92246696. 4.8398/4243 /2.645393/6

2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6

NE$ "ROFI$ 4/./..89 4/882962 3.859/42 //727.338 /5/254354

NE$ SA!ES 78574...3 3948.272. 47./34932 /.237.344/ /6984/45.6

Int3)9)3t(t*on B0
&he abo%e tables shows the ?et Profit to sales ratio from the period .223124 to .2/.1/6. In the ear .223124 is //.4. and it is continuousl decreased in .2/.1/6 is /2.64.

5) G)o.. ")o4*t S(,3. R(t*o

O93)(t*n: E@93n.3. R(t*oB0


&he =perating <>penses ,atio is a ard stic" of operating efficienc . =perating e>pense include +ost of goods sold plus selling e>penses and general and administrati%e e>penses. &his ratio indicates the a%erage aggregate %ariations in e>penses where some of the e>penses ma be increasing while other ma be falling. =perating e>penses ratio is affected b a number of factors such as internal factors, emplo ees, Managerial =perating <>penses =perating <>penses ,atio 0 1111111111111111111111111 E /22 Sales efficienc and e>ternal uncontrollable factors.

2EAR .223124 .2241/2 .2/21// .2//1/. .2/.1/6

O"ERA$ING E>"ENSES /98537255 .26/38322 .62/956.8 .828344./ /./9384975

O"ERA$ING SA!ES 78574...3 3948.272. 47./34932 /.237.344/ /6984/45.6 E>"ENSES RA$IOS 2..258/63 2..6868747 2..68763//. 2../987.786 2.34829/5/4

Int3)9)3t(t*onB0
&he abo%e table shows the operating e>penses ratio from the period .223124 to .2/.1/6 in the ear continuousl increasing the operating e>penses.

d* ,eturn to in%estment &he term in%estment ma refer to total assets or net assets. &he funds emplo ed in net assets are "now as a capital emplo ed. ?et assets net fi>ed assets plus current assets minus current liabilities e>cluding ban" loans capital emplo ed is e'ual to net worth plus debt. ,eturn on in%estment s calculated b di%iding earnings before interest and ta> b assets or capital emplo ed. <BI& ,eturn on In%estment ) ,=I * 0 ?et Asset E /22