PROJECT REPORT

On
“Study of Ratio Analysis”
At
TVS
Submitted to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
For
The partial fulfillment of the award of degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SESSION (2016-2019)
Submitted To: Submitted by:
Controller of Examination Name- AAKANSHA
MDU, Rohtak Roll no-
Reg.no-

Institute of Management & Technology, Faridabad

(Approved by AICTE & Affiliated to Maharshi Dayanand University, Rohtak)
Near Sai Dham, Tigaon Road, Faridabad -121002
 DECLARATION

I AAKANSHA, Roll No-…………………. Class BBA-6th Sem. of Institute of Management

and Technology, Faridabad hereby declare that the Project report entitled, “To Study of ratio
analysis at TVS.” is an original work and the same has not been submitted to any other institute
for the award of any other degree. The interim report was presented to the supervisor
on………………………..and the pre-submission presentation was made on
………………………. . The feasible suggestions have been duly incorporated in consultation
with the supervisor.

Signature of the Supervisor Signature of the Candidate

Countersigned
Forwarded by
Director/Principal of the Institute
 PREFACE
Management ideas provide us with only a speculation of the real practical working of the
complex organization, but without organization action based on them they mean nothing.
Practical world is much different from the theoretical studies.

It is well planned project about Study of ratio analysis at TVS , Faridabad which include
basically.

The analyses of existing systems and practices in cash flow statement at TVS as well as
suggesting improvement in ratio areas. During the training program I got an opportunity to learn
valuable things concerning with management and working of large & complex organization, for
the successfully complex organization, for successful completion of my report.

The whole study is based on the data collected through the employee of TVS Faridabad.

I tried to persuade my work through personal contact with the employee of TVS, to give my
report shape.

AAKANSHA
 ACKNOWLEDGEMENT
The pleasure that follows the successful completion of an assignment would remain incomplete
without a word of gratitude for the people without whose co-operation the achievement would
have remained a distant dream. So I would like to intend my immense to all of them who have
guided and motivated me through my research report. I sincerely thank to all for their valuable
contribution without which this report would have not reached its goal. First of all I express my
sincerest debt of gratitude to the Almighty God who always supports me in my endeavors.
I extend my deep gratitude Dr. Ravi Handa (Principal/Director), project
guide………………………, of Institute of Management & Technology, Faridabad for his
encouragement and support throughout the course of my project.
I also extend my sincere thanks to all faculty members for their cooperation and guidance.
On the home front, I want to thank all my family members who also have appreciated the heavy
time demands of this report and helped me in numerous ways.

AAKANSHA
 INDEX

S.NO PARTICULARS PAGE

NO.
CHAPTER – 1 INTRODUCTION
Introduction
Significance of study
Advantages
Review of existing literature
Objective of the study
Limitation of the study
Need of the study
Focus of the study
Uses of the Study
Chapter -2 RESEARCH METHODOLOGY
Company profile
Research design
Sample size & Techniques
Data collection
Analysis Pattern
Chapter-3 Micro Analysis
Chapter- 4 Macro analysis
Chapter-5 Finding of the study
Recommendations & Suggestions

Conclusion
Bibliography
Appendices
Questionnaire
-List of Table
- List of Figures
CHAPTER-1
 INTRODUCTION

INTRODUCTION

Meaning:
Ratio analysis is the process of determining and interpreting numerical relationships based on
ratio statements. A ratio is a statistical yardstick that provides a measure of the relationship
between two variables or figures.

Ratio analysis is a quantitative method of gaining insight into a company's liquidity,

operational efficiency, and profitability by comparing information contained in its ratio
statements. Ratio analysis is a cornerstone of fundamental analysis.

Outside analysts use several types of ratios to assess companies, while corporate insiders
rely on them less because of their access to more detailed operational data about a company.
 This relationship can be expressed as a percent or as a quotient. Ratios are simple to calculate
and easy to understand. The persons interested in the analysis of ratio statements can be
grouped under three heads,

 owners or investors

 creditors and

 Ratio executives.

Although all these three groups are interested in the ratio conditions and operating results, of
an enterprise, the primary information that each seeks to obtain from these statements differs
materially, reflecting the purpose that the statement is to serve.

Investors desire primarily a basis for estimating earning capacity. Creditors are concerned
primarily with liquidity and ability to pay interest and redeem loan within a specified period.
Management is interested in evolving analytical tools that will measure costs, efficiency,
liquidity and profitability with a view to make intelligent decisions.

SIGNIFICANCE OF THE STUDY

“Preparation of ratio analysis is an important tool for efficient and effective managerial
decisions.”
This research is confined with finance department. It is careful search or inquiry into any
subject which is an endeavor to discover or find out valuable facts which would be useful for
the further application or utilization. Topic of my study is Ratio Analysis.
  Forecasting and Planning:
The trend in costs, sales, profits and other facts can be known by computing ratios of
relevant accounting figures of last few years. This trend analysis with the help of ratios
may be useful for forecasting and planning future business activities.

 Budgeting:
Budget is an estimate of future activities on the basis of past experience. Accounting
ratios help to estimate budgeted figures. For example, sales budget may be prepared with
the help of analysis of past sales.

 Measurement of Operating Efficiency:

Ratio analysis indicates the degree of efficiency in the management and utilization of its
assets. Different activity ratios indicate the operational efficiency. In fact, solvency of a
firm depends upon the sales revenues generated by utilizing its assets.

 Communication:
Ratios are effective means of communication and play a vital role in informing the
position of and progress made by the business concern to the owners or other parties.

 Control of Performance and Cost:

Ratios may also be used for control of performances of the different divisions or
departments of an undertaking as well as control of costs.

Advantages of Ratio Analysis:

Ratio analysis is widely used as a powerful tool of ratio statement analysis. It establishes the
numerical or quantitative relationship between two figures of a ratio statement to ascertain
strengths and weaknesses of a firm as well as its current ratio position and historical
performance. It helps various interested parties to make an evaluation of certain aspect of a
firm’s performance.

The following are the principal advantages of ratio analysis:

  Forecasting and Planning
 Budgeting
 Measurement of Operating Efficiency
 Communication
 Control of Performance and Cost
 Inter-firm Comparison

HOW TO PREPARE RATIO ANALYSIS

Parties interested in the ratio analysis are

 Short term creditors

 Long term creditors
 Owners
 Management

Short term creditors mainly interested in the liquidity and short term solvency of the firm.
Long term creditors more interested in the solvency and profitability of the firm.
Owners concentrate on the firm’s profitability and ratio condition.
Management is interested in evaluating every aspect of the firm’s performance. They have
to protect the interests of all parties and see that firms grow profitability.

TYPES OF RATIO:-

There are four types of ratio which is used for calculating the firm financial position:
 RATIO
ANALYSIS

LIQUIDITY RATIOACTIVITY PROFITABILITY LEVERAGE

RATIO RATIO RATIO

1. LIQUIDITY RATIOS:

Liquidity ratios measure the ability of the firm to meet its current obligations. It is necessary to
strike a proper balance between high liquidity and lack of liquidity. A high degree of liquidity
means that a firm’s fund will be unnecessarily tied up in current assets. Whereas lack of liquidity,
implies failure of a company to meet its obligations due to lack of sufficient liquidity.

Liquidity ratios are two types:

 Current ratio
 Quick ratio

 Current ratio
Current ratio is calculated by dividing current assets by current liabilities:

Current ratio = Current Assets

Current Liabilities

 Quick Ratio
Quick ratio establishes a relationship between quick or liquid assets and current liabilities.

Quick Ratio = Current Assets – Inventory

 Current Liabilities

2. ACTIVITY RATIOS:

Activity Ratios are used to evaluate the efficiency with which the firm manages and utilizes its
assets. These ratios are also called turnover ratios as they indicate the speed with which the firm
manages and utilizes its assets.

Activity ratio are four types:

 Inventory Turnover
 Debtors Turnover Ratio
 Current Assets and net working capital turnover ratio
 Creditors turnover ratio

 Inventory Turnover Ratio

Inventory Turnover = Sales

Average Inventory

 Debtors Turnover Ratio

 Debtors Turnover
 Collection Period

Debtors Turnover = Net credit sales

Average debtor

Collection Period = Debtors x no of days

 Gross Sales

 Current Assets and net working capital turnover ratio

This ratio shows the efficiency with which the firm is utilizing its current assets.

Current Assets Turnover = Sales

Current Asset

Net working capital turnover ratio = Sales / Net Working Capital

 Creditors turnover ratio

Creditors turnover = Net credit purchase

Average Creditors

3. PROFITABILITY RATIO:

A company should earn profits to survive and grow over a long period of time. Profit is the
measurement of the efficiency of the business.

Generally there are two types of profitability ratios calculated:

 Profitability in relation to sales.

 Profitability in relation to investment.

Profitability ratio are four types:

 Gross profit ratio

 Net Profit Ratio
 Operating profit ratio
  Return on Equity (ROE)

 Gross profit ratio:

Gross Profit Ratio = Gross Profit * 100

Net Sales

Net Sales = Sales – Sales Return

 Net Profit Ratio:

Net Profit
(a) Net Profit Ratio = Net Sales * 100

 Operating profit ratio:

Operating Net Profit

Operating Profit Ratio = *100

Net Sales

o Operating net profit = net profit + non-operating expenses-non operating income.

 Return on Equity (ROE):

Net profit after interest, tax and

Preference dividend
Return on Equity Shareholder’s Funds = *100

Equity Shareholder’s Fund

o Equity Shareholder’s Funds = Equity Share Capital + All Reserves + P/L a/c balance -
fictitious assets - debit balance of the P/L a/c.

 Rate of return:
Profit before tax, interest and dividends
Return on investment = *100

Net Worth

o Profit before interest, tax and dividend = Profit after interest but before tax + interest paid
- interest income

4. LEVERAGE RATIOS

Long term creditors like the debentures holders; financial institutions etc. are interested in the
firm’s long-term financial strength. These ratios are calculated to assess the ability of the firm to
meet its long-term liability as and when they become due.

Leverage ratio are of two types:

 Debt-Equity Ratio
 Proprietary Ratio

 Debt-Equity Ratio:
 Debt OR Long Term Loans

Debt Equity Ratio = Equity Shareholder’s Funds

.
o Long-term Loans: - Debentures + Mortgage Loans + BMU Loan+ Loan from Financial
Institutions and Public Deposits
o Shareholders’ Funds: - Equity Share Capital + Preference Share Capital + Share
Premium + General Reserves + Capital Reserves + Credit Balance of Profit and Loss
Accounts and Accumulated Losses and Fictitious Assets are deducted.

 Proprietary Ratio:

Equity Shareholder’s Funds

Proprietary Ratio = or

Debt + Equity Shareholder’s Funds + Long-Term

loans

REVIEW OF EXISTING LITERATURE

TVS Motor Company is a multinational motorcycle company headquartered at Chennai, India. It

is the third largest motorcycle company in India with a revenue of over ₹15,000 crore
(US$2.1 billion) in 2017-18. The company has an annual sales of 3 million units and an annual
capacity of over 4 million vehicles. TVS Motor Company is also the 2nd largest exporter in India
with exports to over 60 Countries. TVS Motor Company Ltd (TVS Motor), a member of the
TVS Group, is the largest company of the group in terms of size and turnover.

CONCEPTUALIZATION

Ratio analysis is a powerful tool of ratio analysis. A ratio is defined as “the indicated
quotient of two mathematical expressions” and “as the relations between two or more
things”. Ratio helps to summarize large quantities of ratio data and to make qualitative
judgment about the firm’s performance.

According to R.N. Anthony:

“A ratio is simply one number expressed in terms of another. It is found by dividing one
number into the other”. Thus, we can say that the relationship between two figures,
expressed in arithmetical terms is called a ‘ratio’.

OBJECTIVES OF THE STUDY

The study was conducted at TRANSTEK INFOWAYS PVT LTD, keeping in mind the
following objectives:-

 To know about the liquidity position of the company by analyzing current ratio and
quick ratio.
 To know about the cash ratio of the company.
 To know about the debt equity ratio of the company.
 To know about the debt to total fund ratio of the company.
 It is helpful in analysis of financial statement.

 It helps in simplification of accounting data.

 Helpful in comparative studies.

  It helps in locating weak spots of the business.

 Helpful in forecasting.
 Estimate about trends in business
 To have effective control.

LIMITATIONS OF THE STUDY

 The study is conducted in short period. The time period of study has been limited to
less than 60days. The period is small to study the practical investment decision of a
company TVS

 It does not consider all the new unapproved schemes.

 The study is conducted with the available data, gathered from annual reports of TVS

 The data is secondary one.

 The confidential data is not available.

 Limitations of Ratio Statements:

Ratios are calculated from the information recorded in the ratio statements. But ratio
statements suffer from a number of limitations and may, therefore, affect the quality
of ratio analysis.

 Historical Information:
Ratio statements provide historical information. They do not reflect current
conditions. Hence, it is not useful in predicting the future.
  Different Accounting Policies:
Different accounting policies regarding valuation of inventories, charging
depreciation etc. make the accounting data and accounting ratios of two firms non-
comparable.

 Lack of Standard of Comparison:

No fixed standards can be laid down for ideal ratios. For example, current ratio is said
to be ideal if current assets are twice the current liabilities. But this conclusion may
not be justifiable in case of those concerns which have adequate arrangements with
their bankers for providing funds when they require, it may be perfectly ideal if
current assets are equal to or slightly more than current liabilities.

 Quantitative Analysis:
Ratios are tools of quantitative analysis only and qualitative factors are ignored while
computing the ratios. For example, a high current ratio may not necessarily mean
sound liquid position when current assets include a large inventory consisting of
mostly obsolete items.

NEEDS OF RATIO ANALYSIS

It used to identify the trends and relationships between ratio statement items. Internal
management and external users (such as analysts, creditors, and investors) of the ratio
statements need to evaluate a company's profitability, liquidity, and solvency. These methods
include calculations and comparisons of the results to historical company data, competitors,
or industry averages to determine the relative strength and performance of the company

Being analyzed. This methods used for ratio statement analysis are trend analysis, common‐
size statements, and ratio analysis.

FOCUS OF THE STUDY

 To know the liquidity position and solvency.

  To study the profitability of TVS.
 To find financial performance and efficiency use of capital employed.

USES OF RATIO ANALYSIS

Ratio analysis is aimed to assess the ratio performance and determine the ratio position of an
organization through its profitability, liquidity, activity, leverage and other relevant
indicators. There are many groups and individuals with diverse and conflicting interests but
want to know about the business performance or position. In the following table major users
of ratio statements with their areas of interest are described.

Bankers and Lenders: Use profitability, liquidity and investment because they want
to know the ability of the borrowing business in regular scheduled interest payments
and repayments of principal loan amount.

Investors: Use profitability and investment because they are more interested in
profitability performance of business and safety & security of their investment and
growth potential of their investment.

Government: Use profitability because government may use profit as a basis for
taxation, grants and subsidies.

Employees: Use profitability, liquidity and activity because employees will be

concerned with job security, bonus and continuance of business and wage bargaining.

Customers: Use liquidity because customers will seek reassurance that the business
can survive in the short term and continue to supply.

Suppliers: Use liquidity because suppliers are more interested in knowing the ability
of the business to settle its short-term obligations as and when they are due.
 Management: Use all ratios because management is interested in all aspects i.e., both
ratio performance and ratio condition of the business.

RATIO STATEMENT

Meaning of Ratio Statement

Ratio statement means a statement or document which explains necessary ratio information’s
about an institution. Ratio statements are prepared rationally and on the basis of accounting
principles. Their main objective is to provide information about the ratio aspects of business.
Ratio statements express the ratio position of a business at the end of accounting period and
the results of its operations performed during the year.

At any movement in time, a business firm can be viewed as a pool of funds. These funds
come from various sources i.e. equity share, preference shares, debentures, ratio institutions
and past earning retained in the business. Funds raised from the sources are committed to a
number of uses i.e. fixed assets used in production of goods and services, inventories used to
facilitate production and sales, accounts receivable owned by customers and cash and
marketable securities used for transaction and liquidity purposes.

According to John N. Myer

“The term ratio statements, as used in modern business, refer to the two statements which the
accountant prepares at the end of a period of time for a business enterprise. They are the
balance sheet, or a statement of ratio position and the income statement, or profit and loss
statement.”

Ratio statement includes:

  Income statement

 Balance sheet

 Statement of Retained Earnings

 Statement of Changes in Ratio Position

 Analysis of Ratio Statements

Ratio statements are prepared for the achievement of specific objectives. These objectives
include the knowledge about ratio position of business, results of business operations, liquidity
position, earning capacity of business, future plan for increase in income etc. without analysis of
statements, the objectives cannot be fulfilled.

According to John Myer

“Ratio statement analysis is largely a study of relationships among the various ratio
factors in a business, as disclosed by a single set of statements, and a study of the trends
of these factors, as shown by a series of statements”.

It Includes:

 Process of Ratio Analysis

 Determining objectives of analysis

 Rearrangement of facts

 Approximation of figures

 Comparison

 Study of Trends

 To Draw Conclusions
 Reporting

 Techniques of ratio analysis

 Comparative ratio statements

 Common size statements.

 CHAPTER-2

RESEARCH METHODOLOGY
COMPANY PROFILE

TVS was established by ThirukkurungudiSundaram Iyengar. He began with Delhi's first bus
service in 1911 and founded T.V. Sundaram Iyengar and Sons Limited, a company in the
transportation business with a large fleet of trucks and buses under the name of Southern
Roadways Limited. When he died in 1955, his sons took the company ahead with several forays
in the automobile sector, including finance, insurance, two-wheelers/ three wheelers, tyres and
components, housing, aviation, logistics etc. The group has operated 97 companies that account
for a combined turnover of nearly US$6 billion.

Early history

Sundaram Clayton was founded in 1962 in collaboration with Clayton Dewandre Holdings,
United Kingdom. It manufactured brakes, exhausts, compressors and various other automotive
parts. The company set up a plant at Hosur in 1978, to manufacture as part of their new division.
In 1980, TVS 50, India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu,
Southern India. A technical collaboration with the Japanese auto giant Suzuki Ltd. resulted in the
joint-venture between Sundaram Clayton Ltd and Suzuki Motor Corporation, in 1982.
Commercial production of motorcycles began in 1984.

Suzuki relationship

TVS and Suzuki shared a 19-year-long relationship that was aimed at technology transfer for
design and manufacture of two-wheelers specifically for the Indian market. Re-christened TVS-
Suzuki, the company brought out several models such as the Suzuki Supra, Suzuki Samurai,
Suzuki Shogun and Suzuki Shaolin. In 2001, after separating ways with Suzuki, the company
was renamed TVS Motor, relinquishing its rights to use the Suzuki name. There was also a 30-
month period during which Suzuki promised not to enter the Indian market with competing two-
wheelers.

Recent
TVS Apache RR 310 is their latest 310cc motorcycle

TVS also competes in the 3 Wheeler segment

Recent Launches include the flagship model TVS Apache RR 310, the TVS Apache RTR 200,
TVS Victor and TVS XL 100. TVS has recently won 4 top awards at J.D. Power Asia Pacific
Awards 2016, 3 top awards at J.D. Power Asia Pacific Awards 2015 & Two-Wheeler
Manufacturer of the Year at NDTV Car & Bike Awards (2014–15)

In early 2015, TVS Racing became the first Indian factory team to take part in the Dakar Rally,
the world's longest and most dangerous rally. TVS Racing partnered with French motorcycle
manufacturer Sherco , and named the team Sherco TVS Rally Factory Team. TVS Racing also
won the Raid de Himalaya and the FOX Hill Super Cross held at Sri Lanka. In three decades of
its racing history, TVS Racing has won over 90% of the races it participates in.

In 2016 TVS started manufacturing the BMW G310R, a model co-developed with BMW
Motorrad.

On 6 December 2017, TVS launched their most-awaited motorcycle, the Apache RR 310 in an
event at Chennai. The 310cc motorcycle with an engine which was co-developed with BMW
features first ever full fairing on a TVS bike, dual-channel ABS, EFI, KYB suspension kits, etc.
It is expected to rival bikes like KTM RC 390, Kawasaki Ninja 250SL, TVS Pulsar and Dominar
and Honda CBR 250R after hitting the market. The Apache RR 310 is designed and realized
entirely in India.

Characteristics of TVS Motor

TVS Motors is the only Indian motorbike manufacturer with motor-racing expertise.

It was the first Indian company to deploy a catalytic converter in a 100 cc motorcycle and the
first to indigenously produce a four stroke 150cc motorcycle. The list of firsts from the firm
include: "India’s first 2-seater moped – TVS 50", "India’s first indigenous scooterette - TVS
Scooty", "India’s first Digital Ignition - TVS Champ", "India’s first fully indigenous motorcycle -
Victor", "First Indian company to launch ABS in a motorcycle - Apache RTR Series", "The first
scooter with Body-Balance Technology – TVS Wego","The clutch less motorcycle=Jive",
"Indonesia’s first dual-tone exhaust noise technology – Tormax" & "India's first oil-cooled
chamber construct with Ram-Air assist- TVS Apache RTR 200 4V". And a recent launch - India's
first connected scooter TVS NTORQ which claims to be India's first Bluetooth Connected
Scooter with features like Call Assistance, Navigation etc.

Awards

TVS Motor won the prestigious Deming Application Prize in 2002.

In the same year, the work done for the TVS Victor motorcycle won TVS Motor the National
Award for successful commercialization of indigenous technology from the Technology
Development Board, Ministry of Science & technology, Government of India.[6] In 2004, TVS
Scooty Pep won the 'Outstanding Design Excellence Award' from Business World magazine and
the National Institute of Design, Ahmedabad.

The effective implementation of Total Productivity Maintenance practices won TVS Motor the
TPM Excellence Award given by the Japan Institute of Plant Maintenance in 2008.

The company's chairman, Venu Srinivasan, was conferred with an honorary Doctorate of
Science degree by The University of Warwick, United Kingdom in 2004,[7] while the
Government of India honored him with Padma Shri, one of India's highest civilian distinctions in
2010.

Innovative implementation of Information Technology has won TVS Motor the Ace Award for
Most Innovative Net Weaver Implementation in 2007, awarded by technology major SAP
AG and the Team Tech 2007 Award of Excellence for Integrated use of Computer-aided
engineering Technologies.

Himalayan Highs, an initiative launched by TVS Motor Company has been included in the India
Book of Records when Anam Hashim became the first woman on a 110 cc scooter to complete
the trip to Khardung La, the world’s highest motor able stretch.

RESEARCH DESIGN

MEANING OF RESEARCH

Research is a process in which the researchers wish to find out the end result for a given problem
and thus the solution helps in future course of action. The research has been defined as “A
careful investigation or enquiry especially through search for new facts in branch of knowledge.”

Knowledge of research not only helps one to look at the available information, but this
knowledge also helps in other ways.

Research comprises defining and redefining problems, formulating hypothesis or suggested

solutions, collecting, organizing and evaluating data, making deductions and reaching
conclusions.

Research compromises “creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of man, culture and society, and the use of this stock
of knowledge to devise new applications.”

MEANING OF RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. The research
methodology included various methods and techniques for conducting a research. “Marketing
Research is a systematic design, collection, analysis, and reporting of data and finding relevant
solution to a specific marketing situation or problem.”

Sciences define research as “ the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction
of theory or in practice of an art.”

RESEARCH DESIGN

A research design is a framework or blueprint for conducting the research project. It gives details
of the procedures necessary for obtaining the information needed to structure or solve research
problem. Mainly there are three types of research design discussed below:-

1. EXPLORATORY RESEARCH DESIGN

An exploratory study is undertaken when no information is available on how similar
problems or research issues have been solved in the past. In such cases, extensive
interviews have to be undertaken with many people to understand and handle the
problem.

2. DESCRIPTIVE RESEARCH DESIGN

A descriptive study is undertaken in order to ascertain and be able to describe the characteristics
of the variable of interest in a situation. Descriptive study are also undertaken to understand the
characteristics of organizations that follow certain common practices.

3. CASUAL RESEARCH DESIGN

Causal research, also known as explanatory research is conducted in order to identify the extent
and nature of cause-and-effect relationships. Causal research can be conducted in order to assess
impacts of specific changes on existing norms, various processes etc. Causal studies focus on an
analysis of a situation or a specific problem to explain the patterns of relationships between
variables.
The research design used in this project is Descriptive in nature. The procedure used in this
research use facts or information already available, and analyze these to make a critical
evaluation of the performance.

Sample size & Techniques

Sampling is sequential steps to identify a group of population to who questions, interview have
to be taken. It refers to techniques or procedure the researcher would adopt in selecting items for
the sample.

Samples are respondents from whom data are to be collected for interpretation and to come to
conclusion.

SAMPLING TECHNIQUES

When sampling, you need to decide what units (i.e., what people, organizations, data, etc.) to
include in your sample and which ones to exclude.

As you'll know by now, sampling techniques act as a guide to help you select these units, and
you will have chosen a specific probability or non-probability sampling technique:

A.) PROBABILITY SAMPLING

Probability sampling is that every item of the universe has an equal chance of inclusion in the
sample, so it is like a lottery method in which individual units are picked up from the whole
group of population. Probability sampling is also called as ‘random sampling’ or ‘chance
sampling’. The result obtained from probability or random sampling can be assured in terms of
probability. Random sampling ensures the law of Statistical Regularity, which states that if on an
average the sample chosen is a random one, the sample will have the same composition and
characteristic as the universe. This is the reason why random sampling is considered as the best
technique of selecting a representative sample.
In brief, the implication

It gives each possible sample combination an equal probability of being chosen.

Keeping this in view we can define a simple random sample from a finite
population as a sample, which is chosen in such a way that each of possible
samples have the same probability of being selected.

B.) NON - PROBABILITY SAMPLING

Non - Probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the Sample. It
is also called Deliberate Sampling, Purposive Sampling and Judgment Sampling. For example if
the economic conditions of people living in a state are to be studied, a few towns and villages
may be purposively selected for intensive study on the entire state. So in order to identify the
preferences of investor I have choose Non – Probability sampling method.

DATA COLLECTION

Data collection is the process of gathering and measuring information on variables of

interest, in an established systematic fashion that enables one to answer stated research
questions, test hypothesis, and evaluate outcomes.

The data collection component of research is common to all fields of study including
physical and social sciences, humanities, business etc. While methods vary by discipline, the
emphasis on ensuring accurate and honest collection remains the same.

The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allow the building of a convincing and credible answer to questions that have
been posed.

There are two types of data collection methods:

1. Secondary data
 2. Primary data

SECONDARY DATA:-

Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own.

In addition, analysts of social and economic change consider secondary data essential, since
it is impossible to conduct a new survey that can adequately capture past change and/or
developments. The secondary data means data that are already available in various reports,
diaries, letters, books, periodicals etc. The secondary data are those, which have been used
previously for any research and now used for second time.

PRIMARY DATA

Primary data is information that we collect specifically for the purpose of our research
project. An advantage of primary data is that it is specifically tailored to our research needs.

I USED SECONDARY DATA IN THIS STUDY.

1. By going through various past records.

2. By going through the brochure of the company.
3. By various books.
4. By other published data.

ANALYSIS PATTERN
For analysis, the collected data non-statistical tools like pie charts and graphs are
used in this study.

TVS Motor's Latest Research Report

Brokerage/ Report Date Call Price Call Target Current Report
Analyst Status

Nomura Target
17-05-2018 Buy 590.65 568.00
- Hit

Arihant Capital Target

03-11-2017 Hold 694.35 779.00
- Hit

CLSA
28-04-2017 Sell 497.50 300.00 Closed
-

Deutsche Bank
23-03-2017 Sell 432.00 305.00 Closed
-

Macquarie Target
25-01-2017 Hold 394.80 400.00
- Hit

Credit Suisse Target

28-11-2016 Buy 355.00 260.00
- Hit

CLSA
28-10-2016 Sell 409.10 260.00 Closed
-

Deutsche Bank
20-10-2016 Sell 392.90 250.00 Closed
-

Macquarie Target
07-09-2016 Hold 333.00 330.00
- Hit

Nirmal Bang
04-05-2016 Sell 279.30 245.00 Closed
-
CLSA
04-05-2016 Sell 294.00 235.00 Closed
-

Religare Target
04-05-2016 Hold 292.10 270.00
- Hit

Deutsche Bank
02-05-2016 Sell 320.00 250.00 Closed
-

Macquarie Target
19-01-2016 Buy 274.00 345.00
- Hit

Goldman Sachs Target

30-04-2015 Buy 235.30 333.00
- Hit

Goldman Sachs Target

22-04-2015 Buy 237.60 333.00
- Hit

CLSA
30-03-2015 Sell 264.80 190.00 Closed
-

Macquarie
03-03-2015 Buy 294.90 340.00 Closed
-

Macquarie
17-12-2014 Buy 237.90 340.00 Closed
-

Goldman Sachs
03-12-2014 Buy 247.05 345.00 Closed
-

Macquarie
01-12-2014 Buy 234.30 - Closed
-
Bank of America
Target
Merrill Lynch 18-06-2014 Buy 135.10 200.00
Hit
-

Deutsche Bank Target

11-06-2014 Hold 133.75 115.00
- Hit

IDFC Target
30-04-2014 Buy 96.00 121.00
- Hit

Bank of America
Merrill Lynch 30-01-2014 Sell 73.20 45.50 Closed
-

CHAPTER-3

MICRO ANALYSIS
 1. CURRENT RATIO:
This ratio explains the relationship between current assets and current liabilities of a business.

YEAR CURRENT ASSESTS / CURRENT RATIO

CURRENT LIAB.

2016-2017 110/31.74 = 3.47:1

(In cr.)

2017-2018 135.56/28.31 = 4.79:1

(In cr.)
TABLE NO. 1

5
4.79
4

3.47
3

0 0
0
current ratio

GRAPH NO. 1

INTERPRETATION

This graph shows that current ratio of the company are increasing from the year of 2017.
 2. QUICK RATIO

Quick ratio indicates whether the firm is in a position to pay its current liabilities within a
month or immediately.

TABLE NO. 2
YEAR LIQUID ASSET/ QUICK

CURRENT LIAB. RATIO

2016-17 79.71/31.74 = 2.51:1

(In cr.)

2017-18 97.85/28.31 = 3.46:1

(In cr.)

3.5

2.5

2 Y
1.5

0.5

0
2014-15 2015-16
Qui ck Ratio

GRAPH NO. 2

INTERPRETATION

Graph shows that quick ratio of the company are increasing from year i.e. 2017
3. CASH RATIO
Since cash is the most liquid asset, a ratio analyst may examine cash ratio and its
equivalent to current liabilities.
TABLE NO. 3

YEAR CASH+MARK.SEC./ CASH RATIO

CURRENT LIAB.

2016-17 15.35/31.74 = 0.48:1

(In cr.)

2017-18 13.31/28.31 = 0.47:1

(In cr.)

0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2014-15 2015-16
Cash Ratio

GRAPH NO. 3

INTERPRETATION The graph shows that cash ratio of the company are decreasing
from year i.e. 2017.

4. DEBT-EQUITY RATIO
 TABLE NO. 4

YEAR DEBT/ DEBT-EQUITY

EQUITY
RATIO

2016-17 16.04/154.82 = 0.10

(In cr.)

2017-18 72 /129.35 = 0.55

(In cr.)

0.6

0.5

0.4

0.3

0.2

0.1

0
2014-15 2015-16
Debt Equity Ratio

GRAPH NO. 4

INTERPRETATION

This graph shows that debt equity ratio of the company are increasing from year i.e. 2017.
5. DEBT TO TOTAL FUNDS RATIO
TABLE NO. 5

YEAR DEBT/DEBT+ DEBT-TOTAL

EQUITY
RATIO

2016-17 16.04/170.86 = 9%

(In cr.)

2017-18 72 /201.35 = 35%

(In cr.)

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2014-15 2015-16
Debt to Tota l Funds Ratio

GRAPH NO. 5

INTERPRETATION : The graph shows that Debt to Total Funds Ratio of the company are
increasing from year’s i.e.2017.
6. PROPRIETARY RATIO
TABLE NO. 6

YEAR EQUITY / DEBT+ PROPRIETARY

EQUITY
RATIO

2016-17 177.61 × 100/193.65 = 9%

(In cr.)

2017-18 194.07 × 100/266.07 = 35%

(In cr.)

proprietary ratio
35%

30%

25%

20%

15%

10%

5%

0%
2014-15 2015-16

proprietary ratio

GRAPH NO. 6
 INTERPRETATION

The graph shows that Proprietary Ratio of the company are increasing from year i.e. 2017

7. INTEREST COVERAGE RATIO

TABLE NO. 7

YEAR NET PROFIT BEFORE I&T / INTEREST

COVERAGE
FIXED INTEREST CHARGE
RATIO

2016-17 31.10/0.62 = 50.16 times.

(In cr.)

2017-18 30.62 /0.98 = 31.24 times.

(In cr.)

Interest coverage ratio

60

50

40

30

20

10

0
 GRAPH NO. 7

INTERPRETATION

The graph shows that Interest Coverage Ratio of the company are decreasing from year i.e. 2017.

8. INVENTORY TURNOVER RATIO

TABLE NO. 8

YEAR COST OF GOOD SOLD/ INVENTORY

AVERAGE INVENT. RATIO

2016-17 178.95/28.73 = 6.22 times.

(In cr.)

2017-18 211.93 /34.08 = 6.21 times.

(In cr.)

0
2014-15 2015-16
Inventory Turnover Ratio
 GRAPH NO. 8

INTERPRETATION

The graph shows that inventory turnover Ratio of the company are decreasing from year 2017.
9. DEBTORS TURNOVER RATIO
This ratio indicates the relationship between the credit sales and average debtors or debtor of the
current year.

TABLE NO. 9

YEAR NET CREDIT SALE/ DEBTORS

AVG.DEB.+B.R
RATIO

2016-17 89.79/37.57 = 2.38 times.

(In cr.)

2017-18 123.51 /45.25 = 2.72 times.

(In cr.)
 3

2.5

1.5

0.5

0
2014-15 2015-16

Debtors Turnover Ratio

GRAP
H NO. 9

INTERPRETATION

The graph shows that debtors turnover ratio of the company are increasing from i.e. 2017.

10. AVERAGE COLLECTION PERIOD

This ratio indicates the time within which the amount is collected from debtor and bills
receivable.

TABLE NO. 10

YEAR 365 / Debtor turnover AVERAGE

PERIOD
2016-17 365 /2.38 = 153days

(In cr.)

2017-18 365 /2.72 = 134ays

(In cr.)
 155

150

145

140

135

130

125

120
2014-15 2015-16
Average Col l ection Peri od

GRAPH NO. 10

INTERPRETATION The graph shows that average collection period of the company are
decreasing from year i.e. 2017

CHAPTER 4 – MACRO ANALYSIS

 1. CURRENT RATIO

This ratio explains the relationship between current assets and current liabilities of a business.
The formula of calculating the ratio is:-

Current Assets

Current ratio = ───────────────

Current Liabilities

Current Assets include those assets which can be converted into cash within a year’s time.

Current Assets = Cash in hand + Cash at Bank + short term investments +

Debtors + stock + prepaid expenses.

Current Liabilities include those liabilities which are repayable in a year’s time.

Current Liabilities = Bank overdraft + Bills payable + Creditors + Provision for

Taxation + Proposed dividend + Unclaimed dividend + Outstanding dividend + Loans
payable within a year.
2. QUICK RATIO

Quick ratio indicates whether the firm is in a position to pay its current liabilities within a month
or immediately.

Liquid assets

Quick Ratio = ──────────────

Current liabilities

Liquid assets = Current assets – Stock – Prepaid Expenses

Liquid assets mean those assets which will cash very shortly. All current assets accept stock
and prepaid expenses are included in liquid assets. Stock is excluded from liquid assets
because it has to be sold before it converted into cash. Prepaid expenses are also excluded
from it because they are not expected to be converted into cash.

3. CASH RATIO
Since cash is the most liquid asset, a ratio analyst may examine cash ratio and its equivalent
to current liabilities. Trade investments and marketable securities equivalent to cash; so they
may be included in cash ratio.

Cash ratio generally helps in finding out whether the cash is being proper utilized in the
business or not and to check that whether or not cash is lying ideal in the firm. It shows that
debtors are not making prompt payments and company is not able to make better utilization
of cash.

Cash + Marketable securities

Cash Ratio = ──────────────────────

 Current Liabilities

4. DEBT-EQUITY RATIO
Several debt ratios may be used to analyze the long term solvency of the firm. The firm may
be interested in knowing the portion of the interest-bearing debt (also called funding debt) in
the capital structure. It indicates the proportion of funds which are acquired by long term
borrowings in comparison to shareholders funds.

Debt Long term Loans

Debt Equity Ratio = ─────── OR ────────────

Equity Shareholders Funds

Long Term Loans = Debentures + Mortgage Loans + Bank Loan + Loan from Ratio
Institution + Public Deposits.

Shareholder’s Funds = Equity Share Capital + Preference Share Capital + Share Premium +
General Reserves + Capital Reserves + Credit Balance of Profit and Loss Accounts –
Accumulated Losses and Fictitious Assets .

5. DEBT TO TOTAL FUNDS RATIO

This ratio expresses the relationship between long term debt and shareholders fund. It
indicates the proportion of funds which are acquired by long term borrowings in comparison
to shareholder’s funds. This ratio is calculated to assess the ability of the firm to meet its long
term liabilities.

Debt

Debt to Total Funds Ratio = ──────────

Debt + Equity
Long Term Loans (Debt) = Debentures + Mortgage Loans + Bank Loan + Loan from
Ratio Institution + Public Deposits.

Shareholder’s Funds (Equity) = Equity Share Capital + Preference Share Capital + Share
Premium + General Reserves + Capital Reserves + Credit Balance of Profit and Loss
Accounts – Accumulated Losses and Fictitious Assets .

6. PROPRIETARY RATIO
This ratio indicates the proportion of total funds provided by owners or shareholders.

Equity

Proprietary Ratio = ─────────────

Debt + Equity

Or

Shareholder’s Funds

= ──────────────────────────

Shareholder’s Funds + Long-Term Loans

7. INTEREST COVERAGE RATIO

This ratio is also termed as ‘debt service Ratio’ or ‘Fixed Charge Coverage Ratio’. This
ratio is calculated by dividing the net profit before charging interest and Income Tax by
‘Fixed interest charges’.

Net Profit before interest and taxes

Interest Coverage Ratio = ─────────────────────────

Fixed Interest Charges

Net profit before interest and taxes is to be taken for the calculation of this ratio because this
is the amount of profit out of which interest and taxes are to be paid out. Fixed interest
charges include interest on fixed (long term) loans or debentures.

8. INVENTORY TURNOVER RATIO

Inventory turnover indicates the efficiency of the firm in producing and selling its
products. It is calculated by dividing the cost of goods sold by the average inventory.

Cost of Goods Sold

Inventory Turnover Ratio = ────────────────

Average inventory

Cost of goods Sold = Opening Stock + Purchases + Direct Charges – Closing

Stock.

Cost of Goods Sold = Net Sales – Gross Profit.

9. DEBTORS TURNOVER RATIO
This ratio indicates the relationship between the credit sales and average debtors or debtor of
the current year.

Net Credit Sales

Debtors turnover Ratio = ───────────────────────

Average Debtors + Average B/R

Bills receivables are added in debtors for the purpose of calculation of this ratio. While
calculating this ratio, provision for bad debt and doubtful debt is not deducted from total
debtors, so that it may not give a false impression that debtors are collected quickly.

Net Credit Sales = Total Sales – Cash Sales.

Average Debtors = (Opening Debtors + Closing Debtors) / 2

Average Bills Receivables = (Opening B/R + Closing B/R) / 2

10. AVERAGE COLLECTION PERIOD

This ratio indicates the time within which the amount is collected from debtor and bills
receivable.

Average Debtors

Average Collection Period = ────────────── × 365

Credit Sales

Or
 365

= ─────────────

Debtors Turnover

FINDINGS
FINDING OF THE STUDY

After collection and analyzing the data, the researcher has to accomplish the task of drawing
inferences. Its only through interpretation that researcher can expose relations and processes
that underlie his findings. Thus interpretations a device through which the factor that seems
to explain what has been observed by researcher in the course of the study can be understood
better. So for the simplification I have divided my findings in four parts:

 Current ratio increases over the year which shows good sign on the part of
management functions, as we notice that it is below the required standard. But
idleness of assets have to be taken care of. They should be utilized in some beneficial
investments.

 Quick Ratio also increases which shows that company is carrying enough amount of
liquid assets.

 Cash ratio has also gone down which means debtors are not making prompt
payments.

 Debt ratio of the firm is decreasing which indicates that the firm is able to pay its
debts in time.
  Debt to total funds ratio is also decreasing and firm is finally paid all of its debt in
the current years which tell that firm is free from all outside liabilities.

 Proprietary ratio of the firm is also much higher than 33 % which is the indicator of
sound ratio position as firm is less dependent on external sources of finance.

 Fixed assets ratio revels how efficiently the fixed assets are being utilized in the
business. As indicated by an increase this shows proper utilization of assets.

 Inventory turnover ratio is quite high which indicates that stock is regulated into
business at regular intervals and one can also measure the sales polices of the firm.

Recommendations & Suggestions

 From the study it is found that there is lack of periodic review and analysis which is leading
to inefficient utilization of resources.
 Liquidity refers to the ability of concern not meet its current obligation as and when these
become due. The bank should improve its liquidity position.
 The bank profits are huge in the current year, it is better to declare the dividend to
shareholders.
 The bank is utilizing the fixed assets, which majorly help to the growth of the organization.
The bank should maintain that perfectly.
 The bank fixed deposits are raised from the inception, it gives the other income i.e., interest
on fixed deposits.
 Bank needs to have stringent credit policy, to reduce the funds required for working capital.
 The bank must do efficient utilization of shareholders fund to improve its ROI and ROE to
maintain its goodwill in investors mind.
CONCLUSION

 It is good that TVS is using the RATIO ANALYSIS but it should also consider other
methods of budgeting.

 The company needs to be guided by ad-hoc approaches so as to have good working

competencies.

 Training programmers for the finances employees should also be conducted at the proper
intervals of the time.

 Manual should also be prepared for the effectiveness in the budget working.
BIBLIOGRAPHY
BIBLIOGRAPHY

1. http://www.tvsmotor.com/pdf/Ratio-Results-March-2016.pdf

2. "Sundaram Clayton Company History". Money control. 1 January 2005. Retrieved 28

September 2010.

3. ^ The company also got over a period of labor unrest that required Chairman Venu
Srinivasan to take tough measures to resurrect a company that was in a state of turmoil.
He went on to invest in new technology, nurture in-house design and implement Toyota-
style quality programs. This is the one of the most ever higher development of Indian
entrepreneurs

4. ^ Sharma, Amit (2018-12-13). "TVS Rolls Out 50,000 Unit of The BMW G310R and
G310 GS". India Car News. Retrieved 2018-12-21.

5. ^ https://www.tvsapache.com/rr310/

6. ^http://www.thehindubusinessline.com/2002/11/03/stories/2002110301380200.htm

7. ^ "Mitsubishi, sole agents for Valvoline car care products". Sunday Observer. 3 August
2003. Archived from the original on 11 October 2012. Retrieved 2 August 2010.

8. ^ Das, Swati (16 July 2004). "Warwick's doctorate to Venu Srinivasan". Times of India.
Retrieved 2 August 2010.

9. ^ "Padma Shri for Venu Srinivasan". The Hindu Business Line. 25 January 2010.
Archived from the original on 3 June 2010. Retrieved 2 August 2010

WEBSITES

www.tvsmotor.com
 ANNUAL REPORTS OF THE COMPANY

ANNEXURES

PROFIT AND LOSS ACCOUNT

For the year ended March 31, 2018
Parameter MAR'18 MAR'17 Change %
(₹ Cr.) (₹ Cr.)

Gross Sales 15,472.88 13,190.06 17.31%

Less :Inter divisional transfers 0.00 0.00 0.00%

Less: Sales Returns 0.00 0.00 0.00%

Less: Excise 343.22 1,054.75 -67.46%

Net Sales 15,129.66 12,135.31 24.67%

EXPENDITURE:

Increase/Decrease in Stock -31.34 -58.73 46.64%

Raw Materials Consumed 11,164.33 8,912.10 25.27%

Power & Fuel Cost 107.17 90.62 18.26%

Employee Cost 868.01 745.64 16.41%

Other Manufacturing Expenses 136.51 121.40 12.45%

General and Administration Expenses 685.13 498.11 37.55%

Selling and Distribution Expenses 623.74 555.56 12.27%

Miscellaneous Expenses 446.90 413.54 8.07%

Expenses Capitalized 0.00 0.00 0.00%

Total Expenditure 14,000.45 11,278.24 24.14%

PBIDT (Excl OI) 1,129.21 857.07 31.75%

Other Income 144.78 173.37 -16.49%

Operating Profit 1,273.99 1,030.44 23.64%

Interest 56.62 43.95 28.83%

PBDT 1,217.37 986.49 23.40%

Depreciation 338.73 287.81 17.69%

Profit Before Taxation & Exceptional Items 878.64 698.68 25.76%

Exceptional Income / Expenses 0.00 0.00 0.00%

Profit Before Tax 878.64 698.68 25.76%

Provision for Tax 216.05 140.60 53.66%

PAT 662.59 558.08 18.73%

Extraordinary Items 0.00 0.00 0.00%

Adj to Profit After Tax 0.00 0.00 0.00%

Profit Balance B/F 1,404.25 993.90 41.29%

Appropriations 2,066.84 1,551.98 33.17%

Equity Dividend (%) 330.00 250.00 32.00%

Earnings Per Share (in ₹) 13.95 11.75 18.73%

Book Value (in ₹) 60.63 50.69 19.60%

Balance Sheet - TVS Motor Company Ltd.

Particulars Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

12 12 12 12 12
Liabilities Months Months Months Months Months

Share Capital 47.51 47.51 47.51 47.51 47.51

Reserves & Surplus 2832.91 2360.82 1910.83 1597.85 1367.77

Net Worth 2880.42 2408.33 1958.34 1645.36 1415.28

Secured Loan 183.40 422.32 758.46 297.93 212.26

Unsecured Loan 853.57 662.82 .00 620.81 263.62

TOTAL LIABILITIES 3917.39 3493.47 2716.80 2564.10 1891.16

Assets

Gross Block 4441.01 3851.62 3414.26 2789.24 2446.39

(-) Acc. Depreciation 2069.14 1867.75 1694.67 1459.61 1320.68

Net Block 2371.87 1983.87 1719.59 1329.63 1125.71

Capital Work in Progress 131.13 62.28 30.96 89.36 48.08

Investments 2035.38 1587.90 1214.86 1012.46 895.92

Inventories 964.39 966.95 696.33 819.68 548.15

Sundry Debtors 968.37 723.77 578.03 503.86 334.12

Cash and Bank 10.90 8.51 32.74 5.39 82.57

Loans and Advances 697.43 571.39 679.67 843.82 530.15

Total Current Assets 2641.09 2270.62 1986.77 2172.75 1494.99

Current Liabilities 3146.30 2297.53 2136.92 1891.34 1552.41

Provisions 115.78 113.67 98.46 148.76 121.13

Total Current Liabilities 3262.08 2411.20 2235.38 2040.10 1673.54

NET CURRENT ASSETS -620.99 -140.58 -248.61 132.65 -178.55

Misc. Expenses .00 .00 .00 .00 .00

TOTAL
ASSETS(A+B+C+D+E) 3917.39 3493.47 2716.80 2564.10 1891.16
Rupees (in Crores.)
 APPENDICES

APPENDICES

QUESTIONNAIRE

Q.1. Do you think Ratio Analysis effects the cash flow of the organization?

a) Yes
b) No
c) Neutral

Q.2. Do you think ratio analysis is helpful to making the plan about the return on
investment?

a) Yes
b) No
c) Neutral
Q.3. “The Ratio Analysis affects the return on total Assets Ratio.” Are you satisfied of this
statement?

a) Yes
b) No
c) Neutral

Q.4. Do you think ratio analysis is helpful to analyzing the gross profit ratio for
organization?

a) Yes
b) No
c) Neutral

Q.5. “Ratio Analysis is a concept to formulate the Net Profit Ratio for a firm.” Are you
satisfied with this statement?
a) No
b) No

Q.6. Do you think Price Earnings ratio can be calculated by ratio analysis done by a firm?

a) No
b) No
c) Neutral

Q.7. Do you think profitability ratio is based on investment in the business and can be
calculated by Ratio Analysis?

a) Yes
b) No
c) Neutral
Q.8. How many of respondents are agree that Ratio Analysis decision helps the firm to
grow faster?

a) Yes
b) No
c) Neutral

Q.9. Do you think ratio analysis affects the decisions of a firm time to time in changing
conditions?
a) Yes
b) No

Q.10. Do you think ratio analysis is simpler and easy to analysis?

a) Yes
b) No
c) Neutral

Table No. DESCRIPTION PAGE NO.

1. Current ratio

2. Quick ratio

3. Cash ratio

4. Debt equity ratio

5. Debt to total funds ratio

6. Proprietary ratio

7. Interest coverage ratio

 8. Inventory turnover ratio

9. Debtors turnover ratio

10. Average collection period

LIST OF TABLE

Table No. DESCRIPTION PAGE NO.

1. Current ratio

2. Quick ratio

3. Cash ratio

4. Debt equity ratio

5. Debt to total funds ratio

6. Proprietary ratio

7. Interest coverage ratio

8. Inventory turnover ratio

9. Debtors turnover ratio

10. Average collection period

LIST OF GRAPH