CHAPTER-IV

DATA ANALYSIS AND INTERPRETATIONS

CASH FLOW STATEMENT:

A cash flow statement is used in conjunction with the other financial

statements, provides information that enables users to evaluate the change in net
assets of an enterprise, its financial structure (including its liquidity and
solvency), and its ability to affect the amounts and timing of cash flow in order
to adapt to changing circumstance and opportunities. Cash flow information is
useful in assessing the ability of the enterprises to generate cash and cash-
equivalents and enables users to develop models to assess and compare the
present value of the future cash flows of different enterprises. It also enhances
the comparability of the reporting of operating performance by different
because it eliminates the effects of using different accounting treatments for the
same transactions and events.
 CASH FLOW STATEMENT (2011-2012)

TABLE NO: 5.1

31-03- 31-03-
PARTICULARS 2011 2012

OPENING BALANCES

Cash in Hand 61738

SOURCE OF CASH

Central Excise 2151 779 1372

Secured Loan 3363880 3406134 42254

CASHFROMOPERATION

Net Profit 247341 206964 40377

ADD: Increase in Sundry

Creditors 3363458 3747384 383926

Increase in Other Liabilities 300217 300466 249

Less Increase in Inventories 7310787 7466168 155381

-
Increase in Sundry Debtors 2154425 2473039 318614 49443

TOTALCASHAVAILABLE 16742259 17600934 55921

APPLICATION OF CASH

Purchases of Fixed Assets 744630 749327 4697

Loans & Advance 162581 194320 31739

Income Tax 77494 84556 7062

CLOSING BALANCE

Cash in Hand 12423

TOTALAPPLICATION
AVAILABLE 984705 1028203 55921
 CASH FLOW STATEMENT (2012-13)

TABLE NO-5.2

31-03-
PARTICULARS 2012 31-03-2013

OPENING BALANCES

Cash in Hand 12423

SOURCE OF CASH

Income Tax 194320 206000 2650

Sale of Fixed Assets 726292 749327 23035

CASH FROM
OPERATION

Net Profit 247341 261547 14206

ADD Increase in Other

Liabilities 300466 379275 78809

Decrease in Inventories 7466168 5698609 1767559

LESS Decrease in Sundry

Creditors 3747384 2470569 1276815

Increase in Sundry
Debtors 2473039 2651776 178737 405022

TOTAL CASH
AVAILABLE 15155010 12417103 443130
APPLICATION OF
CASH

Loans & Advance 194320 206000 11680

Secured Loan 3406134 3135484 270650

Unsecured Loan 1255000 1105000 150000

Central Excise 779 5313 4534

CLOSING BALANCE

Cash in Hand 6266

TOTAL APPLICATION
AVAILABLE 4856233 4451797 443130
 CASH FLOW STATEMENT (2013-2014)

TABLE NO: 5.3

31-03-
PARTICULARS 2013 31-03-2014

OPENING BALANCES

Cash in Hand 6266

SOURCE OF CASH

Central Excise 5313 2596 2717

CASH FROM
OPERATION

Net Profit 261547 267548 5999

ADD Increase in Sundry

Creditors 2470569 3553092 1082523

Increase in Other
Liabilities 379275 530420 151145

Decrease in Inventories 5698609 4378883 1319726

LESS Increase in Sundry

Debtors 2651776 4542399 1890623 668770
TOTAL CASH
AVAILABLE 11467089 13274938 677753

APPLICATION OF
CASH

Purchases of Fixed Assets 726292 991175 264883

Loans & Advance 206000 332424 126424

Secured Loan 3135484 3088824 46660

Unsecured Loan 1105000 900000 205000

Income Tax 81906 107401 25495

CLOSING BALANCE

Cash in Hand 9291

TOTAL APPLICATION
AVAILABLE 5254682 5419824 677753
 CASH FLOW STATEMENT (2014-15)

TABLE NO-5.4

31-03-
PARTICULARS 2014 31-03-2015

OPENING BALANCES

Cash in Hand 9291

SOURCE OF CASH

Sale of Fixed Assets 991175 792972 198203

Unsecured Loan 900000 1200000 300000

CASH FROM
OPERATION
 Net Profit 267546 309347 41801

ADD Increase in Other

Liabilities 530420 531981 1561

Decrease in Sundry
Debtors 4542399 3652395 890004

Decrease in Inventories 4378883 3950640 428243

LESS Decrease in Sundry

Creditors 3553092 3258702 294390 1067219

TOTAL CASH
AVAILABLE 15163515 13696037 1574713

APPLICATION OF
CASH

Loan & Advance 332424 377608 45184

Unsecured Loan 3088824 15892601 1499564

Central Excise 2596 24695 22099

Income Tax 107401 108612 1211

CLOSING BALANCE

Cash in Hand 6655

TOTAL APPLICATION
AVAILABLE 3531245 16403516 1574713
 CASH FLOW STATEMENT (2015-16)

TABLE NO-5.5

PARTICULARS 31-03-2015 31-03-2016

OPENING BALANCES

Cash in Hand 6655

SOURCE OF CASH

Central Excise 24695 9867 14828

Secured Loan 1589260 1163089 350000

CASH FROM
OPERATION

Net Profit 309347 413155 103808

ADD Increase in Other

Liabilities 531981 735107 203126

Decrease in Sundry Debtors 3652395 3596559 55836

LESS Decrease in Sundry

Creditors 3258702 3250590 8112
 Increase in Inventories 3950640 4018625 67985 286673

TOTAL CASH
AVAILABLE 13317020 13186992 658156

APPLICATION OF
CASH

Purchases of Fixed Assets 792972 944278 151306

Loans & Advance 377608 432320 54712

Secured Loan 1163089 1589260 426171

Income Tax 108612 114142 5530

CLOSING BALANCE

Cash in Hand 20437

TOTAL APPLICATION
AVAILABLE 2442281 3080000 658156
 CASH FLOW STATEMENT

TABLE NO-5.6

PARTICULARS 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

OPENING BALANCES
Cash in Hand 0.61 0.124 0.06 0.09 0.06
SOURCE OF CASH
Central Excise 0.013 0.02 0.14
Secured Loan 0.422
Income Tax 0.02
Sale of Fixed Assets 0.23 1.98
Unsecured Loan 3 3.5
CASH FROM
OPERATION
NET PROFIT 0.4 0.14 0.05 0.42 1.04
ADD Increase in Sundry
Creditors 3.84 - 10.82
Increase in Other
Liabilities 0.002 0.78 1.51 0.015 2.03
Decrease in Inventories 17.67 14 4.28
Decrease in Sundry
Debtors 3.18 8.9 0.56
LESS Increase in
Inventories 0.68
Increase in Sundry Debtors 1.78 18.9
12.76 2.94 0.08
Decrease in Sundry
 Creditors
TOTAL CASH
AVAILABLE 0.55 4.42 6.76 15.7 6.57
APPLICATION OF
CASH
Purchases of Fixed Assets 0.046 2.65 1.51
Loans & Advance 0.31 0.11 1.26 0.45 0.54
Secured Loan 2.7 0.46 4.26
Unsecured Loan 1.5 2.05 15
Central Excise 0.04 0.22
Income Tax 0.07 0.25 0.012 0.055
CLOSING BALANCE
Cash in Hand 0.12 0.06 0.09 0.22 0.2
TOTAL APPLICATION
AVAILABLE 0.55 4.42 6.76 15.7 6.57
INTERPRETATION:

Theabove table explains that the beginning of the (2011-2012) opening

balance is in0.61 but in the other year it reduced gradually. So the
concern should take necessary step to overcome the default.
The concern is purchase the fixed assets in the year 2011-2012,2012-
2013,2013-2014,2014-2015,2015-2016 at 0.046,2.65 and 1.51. The
concern purchase high asset in the year 2013-2014 at 2.65 it clearly
determine the outflow of cash in the concern.
The borrowing of concerns high in the year 2013-2014 at 1.26 it indicates
that the concern uses more loan. The concern should reduce to borrow the
money from the various resources. It leads to take more advantage to the
borrowers.
The closing balance is not high than the opening balance .it indicates that
the cash is not properly managed in the concern.
 5.2 CASH OPERATION :

A firm is well advised to hold adequate cash balance but should avoid
excessive balances. The firm has, therefore, to assess its need for cash properly.
The cash budget is probably the most important tool in cash management. It is
device to help a firm to plan and control the use of cash. It is a statement
showing the estimated cash inflows and cash outflows over the planning
horizon. In the other words, the net cash position of a firm as it moves from one
budgeting sub period to another is highlighted by the cash budget

CASH OPERATION

TABLE NO 5.7

PARTICULARS 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

a) OPENING CASH
BALANCE 61738 12423 6266 9291 6655

b Receipts 16315437 18064710 19929244 20520232 23938082

c Payments 16093407 17892478 19664631 20253149 23608102
d NET CASH FLOW
(b-c) 222030 172232 264613 267083 329980
e Cumulative Net Cash
Flow 222030 394262 658875 925958 1255938
f (a+e) 283768 406685 665141 935249 1262593
g Minimum Cash Balance
Requirement 100000 100000 100000 100000 100000
SURPLUS RELATION
TO THE MINIMUM
CASHBALANCE
REQUIREMENT(F-G) 183768 306685 565141 835249 1162593
 CHART NO 5.1

12

10

6
cash
4 required

0
2011- 2012- 2013- 2014- 2015-
2012 2013 2014 2015 2016

INTERPRETATION:

In the above table it clearly determines the availability of the cash balance
in the subsequent year. It will clearly determine the minimum cash balance
requirement of the concern. In the 2015-16 leads to higher need of cash balance
11.62 lakhs. The cash balance is highly required for the day- to day transaction.

5.3 RATIO ANALYSIS:

 An analysis of financial statements based on ratios is known as ratio analysis.
Ratio analysis involves the process of computing determining and resenting the
relationship of items or group of items of financial statements. Ratio analysis is a
widely used tool of financial analysis. It can be used to compare the risk and return
relationship of firms of different sizes. It is defined as the systematic use of ratio to
interpret the financial statements so that the strengths and weaknesses of a firm as well
as its historical performance and current financial condition can be determined. The
term ratio refers to the numerical or quantitative relationship between two items.

5.3.1 NET WORKING CAPITAL:

Net working capital represents the excess of current assets over current
liabilities. The term current assets refers to assets which in the normal course of
business get converted into cash without dimunition in value over a short period
,usually not exceeding one year or length of operation cycle whichever is more.
The greater is the amount of net working capital, the greater is the liquidity of
the firm, accordingly net working capital is a measure of liquidity, and
inadequate working capital is the first sign of financial problem for a firm.
FORMULA:

NET WORKING CAPITAL = CURRENT ASSETS-CURRENT

LIABILITIES.

RATIO ANALYSIS
TABLE 4.21
CURRENT RATIO:
Year Current asset Current Ratio
Liabilities

2011-2012 1,910.48 704.59 2.71

2012-2013 2,157.99 851.18 2.54

2013-2014 2,659.86 1,183.63 2.25

2014-2015 2,489.10 1,346.81 1.84

2015-2016 2,767.82 1,209.43 2.29

INTERPRETATION:

From the above table 4.21 current ratio analysis it was found that in the
year 2011-2012 current ratio is 2.71, in the year 2012-2013 current ratio is 2.54,
decreased compare 2011-2012, in the year 2013-2014 current ratio is 2.25, in
the year 2014-2015 current ratio is 1.84 and in the year 2015-2016 current ratio
is 2.29 increased compare to above 4 years.

CHART 4.1

CURRENT RATIO:

Current Ratio

4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Current asset Current Liabilities Ratio

 TABLE 4.22

CURRENT ASSET TO FIXED RATIO

Year Current asset Fixed asset Ratio

2011-2012 1,910.48 2,195.16 0.87

2012-2013 2,157.99 2,335.52 0.92

2013-2014 2,659.86 2,774.68 0.96

2014-2015 2,489.10 2,496.27 0.99

2015-2016 2,767.82 2,488.35 1.11

INTERPRETATION:

From the above table 4.22 current asset to fixed asset ratio analysis it was
found in the year of 2011-2012 current asset to fixed asset ratio is 0.87, in the
year of 2012-2013 current asset to fixed asset ratio is 0.92 and the next year of
2013-2014 current asset to fixed asset ratio is 0.96, in the year of 2014-2015
current asset to fixed asset ratio is 0.99 and the year of 2015-2016 current asset
to fixed asset ratio is 1.11.
 CHART 4.2

CURRENT ASSET TO FIXED ASSET

Current Asset To Fixed Asset

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

0.00
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Current asset Fixed asset Ratio

 TABLE 4.23

INVENTORY TO CURRENT ASSET RATIO

Year Inventory Current asset Ratio

2011-2012 1,315.23 1,910.48 0.69

2012-2013 1,499.44 2,157.99 0.69

2013-2014 1,871.54 2,659.86 0.70

2014-2015 1,636.73 2,489.10 0.66

2015-2016 1,809.12 2,767.82 0.65

INTERPRETATION:

From the above table 4.23 is Inventory to Current Asset ratio analysis it
was found that in the year 2011-2012 Inventory to Current Asset ratio is 0.69, in
the year of 2012-2013 is Inventory to Current Asset ratio is 0.69, and the next
year of 2013-2014 Inventory to Current Asset ratio is 0.70,in the year of 2014-
2015 Inventory to Current Asset ratio is 0.66,and in the year of 2015-2016 in
the year of Inventory to Current Asset ratio is 0.65.
 CHART 4.3

INVENTORY TO CURRENT ASSET RATIO

Inventory To Current Asset Ratio

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

0.00
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Inventory Current asset Ratio

TABLE 4.24
 LOAN TO CURRENT ASSET RATIO

Year Loan Current asset Ratio

2011-2012 377.75 1,910.48 0.19

2012-2013 657.62 2,157.99 0.30

2013-2014 648.72 2,659.86 0.24

2014-2015 568.50 2,489.10 0.23

2015-2016 480.87 2,767.82 0.17

INTERPREATATIONS:

From the above table 4.24 is Loan to Current Asset ratio analysis it was
found that in the year 2011-2012 Loan to Current Asset ratio is 0.19, in the year
of 2012-2013 is Loan to Current Asset ratio is 0.30, and the next year of 2013-
2014 Loan to Current Asset ratio is 0.24, in the year of 2014-2015 Loan to
Current Asset ratio is 0.23,and in the year of 2015-2016 in the year of Loan to
Current Asset ratio is 0.17.
 CHAR 4.4

LOAN TO CURRENT ASSET RATIO

Loan To Current Asset

3500
3000
2500
2000
1500
1000
500
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Loan Current asset Ratio

 TABLE 4.25

CASH TO CURRENT ASSET RATIO

Year Cash Current asset Ratio

2011-2012 58.42 1,910.48 0.03

2012-2013 26.63 2,157.99 0.01

2013-2014 52.75 2,659.86 0.02

2014-2015 175.55 2,489.10 0.07

2015-2016 276.77 2,767.82 0.09

INTERPRETATION:

From the above table 4.25 is Cash to Current Asset ratio analysis it
was found that in the year 2011-2012 Cash to Current Asset ratio is 0.03, in the
year of 2012-2013 is Cash to Current Asset ratio is 0.01, and the next year of
2013-2014 Cash to Current Asset ratio is 0.02, in the year of 2014-2015 Cash to
Current Asset ratio is 0.07, and in the year of 2015-2016 in the year of Cash to
Current Asset ratio is 0.09.
 CHART 4.5

CASH TO CURRENT ASSET RATIO

Cash To Current Asset Ratio

3500
3000
2500
2000
1500
1000
500
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Cash Current asset Ratio

 TABLE 4.26

CASH TO SALES RATIO

Year Cash Sales Ratio

2011-2012 58.42 3,826.63 0.02

2012-2013 26.63 4,081.86 0.01

2013-2014 52.75 5,063.69 0.01

2014-2015 175.55 5,606.70 0.03

2015-2016 276.77 5,468.15 0.05

INTERPRETATIONS:

From the above table 4.26 is Cash to Sales ratio analysis it was found that
in the year 2011-2012 Cash to Sales ratio is 0.02, in the year of 2012-2013 is
Cash to Sales ratio is 0.01, and the next year of 2013-2014 Cash to Sales ratio is
0.01, in the year of 2014-2015 Cash to Sales ratio is 0.03, and in the year of
2015-2016 in the year of Cash to Sales ratio is 0.05.

CHART 4.6
 CASH TO SALES RATIO

Cash To Sales Ratio

6000

5000

4000

3000

2000

1000

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Cash Sales Ratio

 CHART 4.27

GROSS PROFIT RATIO

Year Gross profit Net Sales Ratio

2011-2012 3,956.35 3,826.63 1.03

2012-2013 4,317.17 4,081.86 1.06

2013-2014 5,018.49 5,063.69 0.99

2014-2015 5,274.92 5,606.70 0.94

2015-2016 5,586.48 5,468.15 1.02

INTERPRETATIONS:

From the above table 4.27 is Gross profit ratio analysis it was found that
in the year 2011-2012 Gross profit ratio is 1.03, in the year of 2012-2013 is
Gross profit ratio is 1.06, and the next year of 2013-2014 Gross profit ratio is
0.99, in the year of 2014-2015 Gross profit ratio is 0.94,and in the year of
2015-2016 in the year of Gross profit ratio is 1.02.
 CHART 4.7

GROSS PROFIT RATIO

Gross Profit Ratio

12,000.00

10,000.00

8,000.00

6,000.00

4,000.00

2,000.00

0.00
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Gross profit Net Sales Ratio

 TABLE 4.28

WORKING CAPITAL ANALYSIS

Year Current asset Current Ratio

Liabilities

2011-2012 1,542.80 704.59 2.19

2012-2013 1,911.47 851.18 2.25

2013-2014 2,037.27 1,183.63 1.72

2014-2015 1,621.97 1,346.81 1.20

2015-2016 2,028.12 1,209.43 1.68

INTERPRETATION:

From the above table 4.28 current ratio analysis it was found that in the
year 2011-2012 current ratio is 2.19, in the year 2012-2013 current ratio is 2.25,
increased compare 2011-2012, in the year 2013-2014 current ratio is 1.72, in the
year 2014-2015 current ratio is 1.20, in the 2013-2014 year and in the year
2015-2016 current ratio is 1.68 increased compare to above 4 years.

CHART 4.8

WORKING CAPITAL ANALYSIS

 Working Capital Analysis

3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Current asset Current Liabilities Ratio

 TABLE 4.29

FIXED ASSET TURNOVER RATIO

Year Sales Fixed asset Ratio

2011-2012 3,826.63 2,195.16 1.74

2012-2013 4,081.86 2,335.52 1.75

2013-2014 5,063.69 2,774.68 1.82

2014-2015 5,606.70 2,496.27 2.25

2015-2016 5,468.15 2,488.35 2.19

INTERPRETATION:

From the above table 4.29 Fixed asset turnover ratio analysis it was found
that in the year 2011-2012 Fixed asset turnover ratio is 1.74, in the year 2012-
2013 Fixed asset turnover ratio is 1.75, increased compare 2011-2012, in the
year 2013-2014 Fixed asset turnover ratio is 1.82,in the year 2014-2015 Fixed
asset turnover ratio is 2.25, in the 2013-2014 year and in the year 2015-2016
Fixed asset turnover ratio is 2.19 increased compare to above 4 years.
 CHART 4.9

FIXED ASSET TURNOVER RATIO

Sales To Fixed Asset Turnover Ratio

9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Sales Fixed asset Ratio

 TABLE 4.30

CURRENT RATIO TREND

Year Ratio Trend

2011-2012 2.71 100

2012-2013 2.54 93.73

2013-2014 2.25 83.03

2014-2015 1.84 67.89

2015-2016 2.29 84.50

INTERPRETATION:

From the above table 4.30 found that the current ratio trend analysis in
the year 2011-2012 to 2012-2013 is increasing the trend and again decreasing
the trend in the year 2015-2016.
 CHART 4.10

CURRENT RATIO TREND

Current Ratio Trend

120

100 100
93.73
83.03 84.5
80
67.89
60

40

20

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
 TABLE 4.31

INVENTORY TO CURRENT ASSET RATIO TREND

Year Ratio Trend

2011-2012 0.69 100

2012-2013 0.69 100

2013-2014 0.70 101.45

2014-2015 0.66 95.65

2015-2016 0.65 94.20

INTERPRETATION

From the above table 4.31 found that the Inventory to current asset ratio trend
analysis in the year 2011-2012 to 2013-2014 is increasing the trend. And 2014-
2015 to 2015-2016 decreasing the trend.

CHART 4.11
INVENTORY TO CURRENT ASSET TURNOVER RATIO TREND

Current Asset Turnover Ratio Trend

102
101.45

100 100 100

98

96
95.65

94 94.2

92

90
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.32

CURRENT RATIO TO FIXED RATIO TREND

Year Ratio Trend

2011-2012 0.87 100

2012-2013 0.92 105.75

2013-2014 0.96 110.34

2014-2015 0.99 113.79

2015-2016 1.11 127.59

INTERPRETATION

From the above table 4.32 found that the current ratio to fixed ratio trend
analysis in the year 2011-2012 to 2015-2016 is increasing the trend.

CHART 4.12

CURRENT RATIO TO FIXED RATIO TREND

 Current Ratio To Fixed Ratio Trend
140
127.59
120
110.34 113.79
105.75
100 100

80

60

40

20

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.33

LOAN TO CURRENT ASSET RATIO TREND

Year Ratio Trend

2011-2012 0.19 100

2012-2013 0.30 157.89

2013-2014 0.24 126.32

2014-2015 0.23 121.05

2015-2016 0.17 89.47

INTERPRETATION

From the above table 4.33 found that the Loan to current asset ratio trend
analysis in the year 2011-2012 to 2012-2013 is increasing the trend. And 2012-
2013 to 2015-2016 decreasing trend.

CHART 4.13

LOAN TO CURRENT ASSET RATIO TREND

 Loan To Current Asset Ratio Trend
180
160 157.89
140
126.32
120 121.05
100 100
89.47
80
60
40
20
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.34

CASH TO CURRENT ASSET RATIO TREND

Year Ratio Trend

2011-2012 0.03 100

2012-2013 0.01 33.33

2013-2014 0.02 66.67

2014-2015 0.07 233.33

2015-2016 0.09 300

INTERPRETATION

From the above table 4.34 found that the Cash to current asset ratio trend
analysis in the year 2011-2012 to 2013-2014 is decreasing the trend. And 2014-
2015 increasing trend, and again 2015-2016 increasing the trend.

CHART 4.14

CASH TO CURRENT ASSET RATIO TREND

 Cash To Current Asset Ratio Trend
350

300 300

250
233.33
200

150

100 100
66.67
50
33.33
0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.35

CASH TO SALES RATIO TREND

Year Ratio Trend

2011-2012 0.02 100

2012-2013 0.01 50

2013-2014 0.01 50

2014-2015 0.03 150

2015-2016 0.05 250

INTERPRETATION

From the above table 4.35 found that the Cash to Sales ratio trend analysis in
the year 2011-2012 to 2012-2013 is decreasing the trend. And 2012-2013 to
2013-2014 ratio of the trend is same, and again 2014-2015 to 2015-2016
increasing the trend.

CHART 4.15

CASH TO SALES RATIO TREND

 Cash To Sales Ratio Trend
300

250 250

200

150 150

100 100

50 50 50

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.36

GROSS PROFIT RATIO TREND

Year Ratio Trend

2011-2012 1.03 100

2012-2013 1.06 102.91

2013-2014 0.99 96.12

2014-2015 0.94 91.26

2015-2016 1.02 99.03

INTERPRETATION

From the above table 4.36 found that the Gross profit ratio trend analysis in the
year 2011-2012 to 2013-2014 is increasing the trend. And 2014-2015 to 2015-
2016 decreasing trend.

CHART 4.16

GROSS PROFIT RATIO TREND

 Gross Profit Ratio Trend
104
102.91
102
100 100
99.03
98
96 96.12
94
92
91.26
90
88
86
84
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.37

WORKING CAPITAL ANALYSIS TREND

Year Ratio Trend

 2011-2012 2.19 100

2012-2013 2.25 102.74

2013-2014 1.72 78.54

2014-2015 1.20 54.79

2015-2016 1.68 76.71

INTERPRETATION

From the above table 4.37 found that the working capital ratio trend analysis in
the year 2011-2012 to 2013-2014 is increasing the trend. And 2014-2015
Decreasing the trend again 2015-2016 in the year decreasing the trend.

CHART 4.17

WORKING CAPITAL RATIO TREND

 Working Capital Ratio Trend
120

100 100 102.74

80 78.54 76.71

60
54.79

40

20

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

TABLE 4.38

FIXED ASSET TURNOVER RATIO

Year Fixed asset Trend

 2011-2012 1.74 100

2012-2013 1.75 100.57

2013-2014 1.82 104.59

2014-2015 2.25 129.31

2015-2016 2.19 125.86

INTERPRETATION:

From the above table 4.37 found that the fixed asset turnover ratio trend
analysis in the year 2011-2012 to 2015-2016 is increasing the trend.

CHART 4.18

FIXED ASSET TURNOVER RATIO TREND

 Fixed Asset Turnover Ratio Trend
140
129.31 125.86
120

100.57 104.59
100 100

80

60

40

20

0
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Cash Conversion Cycle :

S.no Name Cash conversion cycle Market Cap

Days RS

1 Mohib Shoes Pvt Ltd 45.73 179.160

2 Ambur Shoes 5.92 150.747

3 Bonaventure 30.32 24.343

Shoes Pvt Ltd

4 MM Shoes 41.70 2.468

We note the following

Average Cash conversion ratio of graak shoe industry 30.40 days.

 Bonaventure Shoes Pvt Ltd has a cash conversion cycle of 59.83 days (way above the

industry average).

Ambur Shoes, however, has a cash conversion cycle of 8.18 days ( below the industry

average).

CHAPTER-V

FINDINGS, SUGGESTION, CONCLUSION

FINDINGS:

1. The net working capital of the organization is not satisfactory.

2. The current ratio for the four year it is as per the standard norms (2:1)
concept for the year 2015-16 which is 1.9:1. On an average current ratio
is formed to be satisfactory.
3. Quick ratio of the company is not satisfactory as it is not up to the
standard norms (1:1).
4. Cash turnover ratio is found to be not satisfactory as it is maintain low
cash.
 5. Debtor turnover ratio is decline indicates it is not satisfactory.
6. Creditors turnover ratio showing increasing ratio indicates that the
company is enjoying. Its credit facilities to the possible amount.
7. In the year 2015-16 is leads to higher requirement of cash balance 11.62
lakhs.
8. Cash reflects the liquidity position of the concern is reduced in the year
2015-2016 is 0.06 lakhs decreasing cash position indicated that the
company is not managing its cash position satisfactorily.

SUGGESTION & RECOMMENDATION:

The various suggestions are followed after analyzing the main finding of this
study.

The cash management of the company is failed to strengthen the cash

position so the company so required to table steps to improve the cash
position by concentrating on receivables, inventories avoiding to much on
borrowings.
The company failed to manage the receivable in the normal level because
of poor performance of the collection procedure and inefficient
performance related with managing the receivables.
 The inventories play a major role in production. So, the concern should
take measure to maintain the inventories that are required to in order
reduce the e cost, and keep the production flow continuously.
In 2014-15 the net profit is increased compare to the other four year. So
the concern should maintain the same position to improve the net profit.
The cash and bank balance indicate high liquidity position of a company,
The Graak shoe and cloths maintain cash including bank balance is at a
optimum level and it is enough to meet day to day requirement.

CONCLUSION

Analysis and Interpretation of the financial data of The graak Fashion and
cloths, ascertain the cash position of the firm. The results explores that the firm
is unable toe meet its short term obligations.

The concern should reduced the long term loan and obtain the profit.

The concern should take various measures to increase the net profit.
 BIBLIOGRAPHY
Khan M.Y and P.K. Jani

Financial Management, New Delhi, Tata Mc Graw Hill, 1992.

Dr.S.N. Maheshwari, Principles of Management Accounting.

Prasanna Chandra, Financial Management Theory and Practice

 BALANCE SHEET

2016 2015 2014 2013 2012

Sources Of Funds
Total Share Capital 63.65 63.65 63.65 63.65 63.65
Equity Share Capital 63.65 63.65 63.65 63.65 63.65
Reserves 3,589.53 3,019.73 2,784.67 2,212.92 1,932.37
Networth 3,653.18 3,083.38 2,848.32 2,276.57 1,996.02
Secured Loans 1,888.33 1,772.23 2,722.57 2,741.13 2,402.89
Unsecured Loans 65.38 13.58 37.99 1.48 35.68
Total Debt 1,953.71 1,785.81 2,760.56 2,742.61 2,438.57
Total Liabilities 5,606.89 4,869.19 5,608.88 5,019.18 4,434.59
2016 2015 2014 2013 2012
Application Of Funds
Gross Block 5,586.48 5,274.92 5,018.49 4,317.17 3,956.35
Less: Accum. Depreciation 3,098.13 2,778.65 2,243.81 1,981.65 1,761.19
Net Block 2,488.35 2,496.27 2,774.68 2,335.52 2,195.16
Capital Work in Progress 84.83 76.78 84.58 212.90 181.91
Investments 1,005.61 674.17 712.34 559.30 514.72
Inventories 1,809.12 1,636.73 1,871.54 1,499.44 1,315.23
 Sundry Debtors 681.93 676.82 735.57 631.92 536.83
Cash and Bank Balance 276.77 175.55 52.75 26.63 58.42
Total Current Assets 2,767.82 2,489.10 2,659.86 2,157.99 1,910.48
Loans and Advances 480.87 568.50 648.72 657.62 377.75
Total CA, Loans & Advances 3,248.69 3,057.60 3,308.58 2,815.61 2,288.23
Current Liabilities 1,209.43 1,346.81 1,183.63 851.18 704.59
Provisions 11.14 88.82 87.68 52.96 40.84
Total CL & Provisions 1,220.57 1,435.63 1,271.31 904.14 745.43
Net Current Assets 2,028.12 1,621.97 2,037.27 1,911.47 1,542.80
Total Assets 5,606.91 4,869.19 5,608.87 5,019.19 4,434.59
Contingent Liabilities 844.89 962.91 308.97 595.33 735.87

Book Value (Rs) 573.93 484.41 447.48 357.66 313.58

PROFIT AND LOSS BALANCE SHEET:

2016 2015 2014 2013 2012

INCOME
Revenue From Operations [Gross] 5,468.69 5,607.30 5,064.25 4,082.92 3,828.09
Less: Excise/Sevice Tax/Other Levies 0.54 0.60 0.56 1.06 1.46
Revenue From Operations [Net] 5,468.15 5,606.70 5,063.69 4,081.86 3,826.63
Other Operating Revenues 118.99 135.34 107.62 77.88 91.37
Total Operating Revenues 5,587.14 5,742.03 5,171.31 4,159.74 3,918.00
Other Income 227.32 158.07 64.58 54.90 60.57
Total Revenue 5,814.46 5,900.10 5,235.89 4,214.64 3,978.57
EXPENSES
Cost Of Materials Consumed 2,667.15 2,900.52 2,512.39 2,096.37 2,200.34
Purchase Of Stock-In Trade 67.15 74.42 57.13 26.90 31.02
Changes In Inventories Of FG,WIP And
12.20 131.03 -229.47 -89.81 126.90
Stock-In Trade
Employee Benefit Expenses 410.38 350.83 320.17 268.34 221.13
Finance Costs 86.85 121.54 151.83 174.35 173.22
Depreciation And Amortisation Expenses 361.92 488.85 294.13 253.86 234.67
Other Expenses 1,344.16 1,343.65 1,250.34 1,029.80 845.83
Cost Of Sales 9388.64 9079.10 9119.10 9215.09 1015.99
Total Expenses 4,949.82 5,410.83 4,356.51 3,759.80 3,833.11
2015 2014 2013 2012 2011
Profit/Loss Before Exceptional,
864.64 489.27 879.38 454.84 145.46
ExtraOrdinary Items And Tax
Profit/Loss Before Tax 864.64 489.27 879.38 454.84 145.46
Tax Expenses-Continued Operations
Current Tax 221.82 186.00 188.50 106.82 29.75
Deferred Tax -10.23 -55.84 39.00 24.29 6.05
Total Tax Expenses 211.59 130.16 227.50 131.11 35.79
Profit/Loss After Tax And Before
653.05 359.11 651.88 323.73 109.67
ExtraOrdinary Items
Profit/Loss From Continuing
653.05 359.11 651.88 323.73 109.67
Operations
Profit/Loss For The Period 653.05 359.11 651.88 323.73 109.67
2016 2015 2014 2013 2012
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 102.60 56.42 102.41 50.86 17.23
Diluted EPS (Rs.) 102.60 56.42 102.41 50.86 17.23
VALUE OF IMPORTED AND INDIGENIOUS
RAW MATERIALS
Imported Raw Materials 246.40 210.74 209.90 157.46 116.18
Indigenous Raw Materials 2,415.13 2,680.76 2,322.24 1,949.04 2,070.31
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 57.60 83.05 54.86 50.16 46.78
Indigenous Stores And Spares 370.60 341.56 327.92 259.11 154.70
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 95.48 63.65 70.02 38.19 28.64
Tax On Dividend 1.08 13.32 10.11 6.49 4.65
Equity Dividend Rate (%) 150.00 100.00 110.00 60.00 45.00