A STUDY ON THE OPERATIONAL

EFFICIENCY OF SAKTHI
FINANCE LIMITED
CONTENTS
 CONTENTS

Chapter Title Page

List of Tables

List of Exhibits

I Design and Introduction of the Study

II Introduction of the Company

III Liquidity, Solvency & Profitability Analysis

IV Operational Efficiency Analysis

V Findings and Suggestions

Conclusion

Bibliography
LIST OF TABLES
 LIST OF TABLES

Table Description Page

3.1 Current Ratio

3.2 Liquid Ratio

3.3 Absolute Liquid Ratio

3.4 Debt – Equity Ratio

3.5 Solvency Ratio

3.6 Fixed Asset Ratio

3.7 Proprietary Ratio

3.8 Capital Gearing Ratio

3.9 Return on Total Investment Ratio

3.10 Return on Shareholders’ Fund Ratio

3.11 Return on Investment Ratio

3.12 Earning Per Share Ratio

4.1 Reserve to paid up Capital Ratio

4.2 Current Asset to Net Worth Ratio

4.3 Aggregate Deposits to Net Worth Ratio

4.4 Investment in Government Securities to Current Asset

4.5 Advances to Current Assets Ratio

4.6 Investment in Government Securities to Total Deposits

4.7 Total Investment to Aggregate Deposit

4.8 Total Advances to Aggregate Deposits

4.9 Operating Income to Net Worth

4.10 Deposits/ Advances/ Business per Branch

LIST OF EXHIBITS
 LIST OF EXHIBITS

Chart Title Page

3.1 Current Ratio

3.2 Liquid Ratio

3.3 Debt – Equity Ratio

3.4 Proprietary Ratio

3.5 Return on Total Asset

3.6 Return On Investment

4.1 Reserve to paid up Capital

4.2 Advance to current Asset Ratio

4.3 Total Advances to Aggregate Deposits

4.4 Operating Income to Net Worth Ratio

 CHAPTER I

Design & Introduction of the Study

1.1 Introduction of the study

In our present day economic finance is defined as the provision of money at the time
when it is required. Every enterprise whether big,, medium, or small needs finance to carry
on its operations and to achieve its targets. Infect finance is so indispensable today that is
rightly said to be without adequate finance no enterprise can possibly accomplish its
objectives.

The subject of finance has been traditionally classifies into two classes.

1) Public Finance
2) Private Finance

Public Finance

Public finance deals with the requirements, receipts and distribution of funds in the
government institutions like states, local self government and Central government.

Private Finance

Private finance is concerned with requirements, receipts and distribution of funds in

case of individuals like a profit seeking business organization and a non profit
organization.

Thus, private finance can be classified into

a) Personal Finance
b) Business Finance
c) Finance of Non-Profit Organization

Personal Finance

Personal finance deals with the analysis of principles and practice involved in
managing ones own daily needs of funds.

Business Finance

The study of principles, practice, procedures, and problems concerning financial

management profit making organization engaged in the field of industry, trade, and
commerce is undertaken under the discipline of business finance.
The Finance of Non-profit Organization

It is concerned with the practices, producers, and problems involved in financial

management of charitable religions educational, social and the other similar organization.

According to John N.Myer. Financial provides summary of the accounts of business

enterprises. The balance sheet reflecting as assets, liabilities and capital as on a certain data
and the Income statement showing the results of operation during a certain Period.

1.2 STATEMENT OF THE PROBLEM

The financial statement is a mirror, which reflects the financial position and
operational strength or weakness of the concern. But a mere look at the financial
statement will not reveal some crucial Information. To bring out the hidden
information, financial statements over a period are to be studied. Hence the study is
conducted to evaluate the relationship between component parts of the financial
statement of Sakthi Finance Limited, and to obtain a better understanding of the
company position and performance. A finance analysis reveals the financial strength
and weaknesses of the firm by properly establishing relationship between the items of
the balance sheet and profit and loss Account.

1.3 OBJECTIVES OF THE STUDY

 To find out liquidity and solvency position of the concern.
 To analyze the profitability performance of the company
 To study the productivity per branch.
 To analyze the financial and operational efficiency of Sakthi Finance Limited.
 To Study the financial statement analysis.
1.4 Scope of the Study

Each and every business concern should know it is financial liability to predict it for the
future action. Even through a firm is not financially viable for getting the debt resources
from outsiders, viability analysis is essential. Liability over the assets results insolvency
position of the company in that situation it becomes difficult to serve in the market scope of
the viability study helps to avoid the critical situation.

1.5 Methodology

According to Robert “research” is essentially an investigation a recording and analysis

of evidence the following methodology was adopted for the study.

1.5.1 Secondary Data

The secondary data required for the study is collected from the balance sheet and the
income statement published in the companies’ annual report. It analysis, the information
flow the report being generated from the manufacturing units and sales branches were
utilized.

1.6 Tools Used

The financial performances of the company was analyzed with the help of following
tools, they are as follows

 Ratio Analysis
 Financial Statement Analysis

o Comparative Balance Sheet

o Common Size Balance Sheet

1.7 Period of Study

The study covers a period of five years from 2003 to 2007 in order to study the financial
performance of the company.
1.8 Limitation of the Study

The study could have been improved much with adequate resources and time. The
sources of data purely from the books of accounts of the company i.e. secondary data. So it
is not that much reliable and has its own limitation.

Financial efficiency of the company has been studied. The other aspect like managerial
efficiency , market efficiency etc., have not been analyzed.

The study covers the period of only 5 years (2003-2004) the before and after this period
were not been taken into account.

The correct decision regarding the financial efficiency of sakthi finance limited is based
on the ratio calculated and it depends upon the accuracy of their financial statement.

1.9 Chapter scheme

The report of the study is present in six chapters

Chapter 1 : Design & introduction of study.

Chapter 2 : History & profile of the company.

Chapter 3 : Study the liquidity and solvency and profitability position of the company.

Chapter 4 : Analyze the operational efficiency of the company.

Chapter 5 : Financial statement analysis.

Chapter 6 : Suggestion offer based on finding.

 CHAPTER 2

History and profile of the company

2.1 The origin of sakthi

Our story begins with a bullock cart. A very special one. That of late P. Nachimuthu
Gounder of pollachi a small farmer, he supplemented his income by renting out his bullock
cart. Soon he had saved enough to buy another and yet another till he had a whole fleet of
them.

In 1921, Nachimathu Gounder made a transition from the bullock cart to the auto
mobile. Pioneering a taxi service, he acquired a bus in 1927. Four years later, along with
some other operators, he founded the Anamallais bus transport company with a fleet of 21
buses. By 1940, ABT’s fleet strength had registered a five fold increase and its operations
covered every nook and corner of south India. The transition from the bullock cart age to
the automobile area was complete.

Nachimuthu Gouder did not rest laurels. But aided by his son Mahalingam who had
joined him in the business, he diversified into manufacturing and trading allied lines and a
whole group of companies sprang up. From the bullock cart, the trail led to a wide range of
interests, to the establishment of one of the big industrial houses of south India.

2.2 History of Sakthi Finance Limited

Sakthi finance limited was incorporation in 1955 as “Pollachi credit society” as

Group’s in – house financing arm for TELCO dealership. A deep understanding of the
transport industry has made sakthi one of the most trusted names in financing for
commercial vehicles. A wide variety of loans for cars, commercial vehicles, plant
machinery and equipment are available. One of the First companies to introduce used
vehicle financing.

Sakthi finance ltd has 20 branches spread all over India. Over1,00,000 happy
customers and still growing. The locker operations are carried out by sakthi financial
service ltd an associate company.
2.3 General Information

Company Name : Sakthi Finance Limited

Board of Directors

Chairman :Dr.N.Mahalingam

Vice Chairman : Sri.M.Manikam

Managing Director : Sri.M.Balasubramanian

Sri.S.A.Murali Prasad

Sri.P.S.Gopalakrishnan

Sri.M.Srinivasan

Dr.A.Selvakumar

Principal Executives

Vice President : Sri.N.Srinivasan

Vice President(Strategy) : Sri.P.A.Muralidharan

General Manager(Operations) : Sri.S.Anand

Company Secretary : Dr.S.Velusamy

Bankers : The Karnataka Bank Ltd

Canara Bank

State Bank of Travancore

The Catholic Syrias Bank Ltd

Central Bank of India

Bank of India
 The South Indian Bank Ltd

Union Bank of India

The Lakshmi vilas Bank Ltd

Vijaya Bank

Auditor :M/S.P.N.Raghavendra Rao & Co

Chartered Accountants

33, Desabandhu Street

Ram Nagar

Coimbatore – 641009

Registered Office :New No.62,Dr.Nanjappa Road

Coimbatore – 641018

Phone :(0422)2231471 – 74(4lines)

Fax :(0422)2231915

E – Mail :Sakthi@Giasmdol.Rsnl.Net.In

2.4 Share Capital

The share capital of the company is Rs. 45,00,00,000 (Rupees Forty Five Crores
only) Dividend into 4,00,00,000.equity shares of Rs.10/-each and 5,00,000 redeemable
cumulative preference shares ofRs.100/-each subject to be increased, decreased,
consolidated, subdivided or otherwise dealt with in accordance with the provision of the
companies Act,1956, and the statutory regulations for the time being in force in this regard.
2.5 Objects of the Company

 To lend and or advance money or grant loans on any terms that may be thought fit
with or with out security to persons, firms, individuals, companies, local bodies or
government and particularly to customers and other persons having dealings with
the company.
 To act as secretaries and financiers to enterprises.
 To act as an issue house, registrars and share transfer agents, financial advisers,
technical consultants, system analysts and data processors.
 To purchase, sell, exchange, deal in or invest in shares, debenture, bonds, stocks of
joint stock companies, firms, and local bodies or of government.
 To carry on the business of underwriters, sub-underwriters, brokers, managers,
advisers, consultants to issues of shares, debentures, bonds, fixed deposits and other
securities and of syndication of loans, project finance, working capital facilities and
deterred payment facilities.

2.6 Group of Industries

The sakthi group today is one of the foremost industrial houses with combained
turnover exceeding Rs.1500 crores. Currently the sakthi groups are,

 Sakthi Sugars Limited

 Sakthi Textiles
 Sakthi Transport
 Sakthi Soya Products
 CHAPTER III

Liquidity, Solvency & Profitability

Analysis
3.1 Introduction

In this chapter the research has analyzed the liquidity, solvency, and profitability
position of the company. It can be done through ratio analysis.

3.2 Ratio Analysis

The ratio analysis is one of the most powerful tools of financial analysis. It is the
process of establishing and interpreting various ratios. It is done with the help of ratio that
the financial statements can be analyzes more clearly and decisions made from such
analysis.

“A ratio is an expression of the quantitative relationship between two numbers”.

-Wixon, kill and Bedford.

In financial analysis, a ratio is used as a benchmark for evaluating the financial

position and performance of a concern. Ratios help to summarize large quantities of
financial data and to make qualitative judgments about the forms performance.

3.3 Guide Lines for the Use of Ratios

The following factors may be kept in mind while interpreting various ratios

3.3.1 Accuracy of Financial Statement

The reliability of the ratios is linked to accuracy of Information in financial

statements. The precautions will establish the reliability of data given in the financial
statements.

3.3.2 Purpose of Analysis

The object for which ratios are required to be studied should always be kept in mind
for studying various ratios. Different may required the study of ratios.

3.3.3 Selection of Ratios

Calculation of large number of ratios without determining their needs in the present
context may confuse the things instead of solving them. Only those ratios should be selected
which can throw proper light on the matter to be discussed.
3.3.4 Use of Standards

Unless otherwise those ratios are compared with certain standards one will not be able
to reach at conclusions.

3.3.5 Caliber of the Analyst

The ratio are the only tools of analysis and their interpretation will depend upon the
caliber and competence of the analyst.

3.3.6 Ratios Provide Only Abase

The ratios are only guidelines for the analyst he should not base his decisions entirely
on them. The interpreter should use the ratios as a guide and may try to solicit any other
relevant information which helps in reaching a correct decision.

3.4 Significance of Ratio Analysis

The ratios have wide applications and are immense use today.

3.4.1 Managerial Uses of Ratio Analysis

 It helps in decision making

 It helps in financial forecasting and planning
 It helps in communication
 It is useful for co ordination
 It is used for control

3.4.2 Utility to Shareholders

Easy assess of the value of fixed assets and loans raised against them, it is useful to
determine the profitability position. It is helps in assessing the long term solvency.

3.4.3 Utility to Creditors

It is useful for assessing the financial position extension of credit facilities is possible
through this analysis it gives a correct idea about the current financial position.
3.4.4 Utility to Employees

It is useful in knowing the profitability the employees make use of information

available in financial statement. It enable the employees to put forward their view point for
the increase of wages and other benefits.

3.4.5 Utility to Government

It helps to know the overall strength of a concern. Profitability indexes can also be
proposed with the help of ratios.

3.5 Limitations

There are some variations in accounting methods

 No consideration is made to the changes in price level.

 A ratio has no substitutes
 It lacks adequate standards
 In this different meanings are assigned to the same term.
 It ignores qualification factors
 It is primarily a quantitative analysis and not a qualitative analysis
 It is only a means of financial analysis and not an end in itself
 No use it ratios are worked out for insignificant and unrelated figures

3.6 Classification of Ratios

For the purpose of analysis, the ratio can be classified into four categories, namely

3.6.1 Liquidity Ratios

3.6.2 Solvency Ratios

3.6.3 Profitability Ratios

3.6.4 Activity Ratios

In this chapter the researcher has analyzed the liquidity, solvency and profitability
ratios.
3.6.1 Liquidity Ratios

Liquidity ratio is otherwise called as financial ratios. In other words they are short term
solvency ratios, they are current ratio, liquid ratio, cash position ratio.

3.6.1.1 Current Ratio

Current Ratio is defined as the ratio of current assets to current liabilities. The term
current assets includes cash bills receivables, sundry debtors, inventories and prepaid
expenses. The current liability includes sundry creditors, bills payable, bank over draft and
out standing expenses.

The ratio equal or near the rule of thumb is 2.1 is considered to be satisfactory.

Formulation

Current Ratio = Current Assets/Current Liabilities

The current Assets, Current Liabilities and the Current Ratio of Sakthi Finance
Limited is shown in the Table 3.1
 TABLE 3.1

Current Ratio

(Rs in Lakhs)

S. No Year Current Assets Current Liabilities Ratio in Times

1 2013-2014 18772.55 1348.10 13.92
2 2014-2015 18568.17 1042.53 17.81

3 2015-2016 18985.91 1147.52 16.54

4 2016-2017 20265.64 1871.22 10.83

5 2017-2018 23699.48 2797.56 8.47

Source: Annual Report

The Table 3.1 shows that the current assets and current assets and current liabilities of
the company were fluctuated during the study period. The ratio of current assets to current
liabilities was above the standard norm during the study period.
 CHART 3.1

Current Ratio

2017-2018

2016-2017

2015-2016

2014-2015

0 2 4 6 8 10 12 14 16 18
3.6.1.2 Liquid Ratio

Liquidity means the ability of the firm to pay the short term obligations as and when
they become due liquidity ratio may be defined as “ the relationship between liquid assets
and current assets current liabilities”. It includes bills receivables, cash, sundry debtors,
marketable security, short term or temporary investment.

Formulation

Liquid Ratio = Liquid Assets/Current Liabilities

The rule of thumb for liquid ratio is 1:1 which is considered as satisfactory.

The Liquid Assets, Current Liability and the Liquid Ratio of Sakhi Finance Limited
Shown in the Table 3.2
 TABLE 3.2

Liquid Ratio

(Rs in Lakhs)

S. No Year Current Assets Current Liabilities Ratio in Times

1 2013-2014 4298.84 1348.10 3.18
2 2014-2015 3148.47 1042.53 3.02

3 2015-2016 3220.54 1147.52 2.80

4 2016-2017 2777.49 1871.22 1.48

5 2017-2018 3093.89 2797.56 1.10

Source: Annual Report

The Table 3.2 shows that the Liquid assets of the company declined during the period.
The liquid ratio of the company is above standard norms during the study period.
 CHART 3.2

Liquid Ratio

2017-2018

2016-2017

2015-2016

2014-2015

0 0.5 1 1.5 2 2.5 3 3.5

3.6.1.3 Absolute Liquid Ratio

Although receivable, debtors and bills receivable are generally more liquid than
inventories, yet there may be doubt regarding their realization into cash immediately or in
time. Hence, same authorities are of the opinion that the absolute liquid ratio should also
calculated together with current ratio and acid test ratio so as to exclude even receivables
from the current assets and find out the absolute liquid assets.

Formulation

Absolute Liquid Ratio = Absolute Liquid Assets/Current Liabilities

The standard norm for absolute liquid ratio is 0.72:1

The Absolute liquid assets, current liability and the Absolute liquid Ratio of sakthi
finance limited shown in the Table 3.3
 TABLE 3.3

Absolute Liquid Ratio

(Rs in Lakhs)

S. No Year Absolute Liquid Current Liabilities Ratio in Times

Assets
1 2013-2014 210.50 1348.10 0.16
2 2014-2015 432.52 1042.53 1.41

3 2015-2016 886.80 1147.52 0.77

4 2016-2017 773.08 1871.22 0.41

5 2017-2018 1197.02 2797.56 0.43

Source: Annual Report

The Table 3.3 shows that the Absolute Liquid assets of the company was increased
during the study period except 2016-2017. The absolute liquid ratio of the company was the
highest (0.77) in 2015-2016 and it was the lowest (0.16) in 2013-2014.
3.6.2 Solvency Ratios

Solvency ratios which express financial position of the concern. Financial position
may mean differently to different persons interested in the business concern. Creditors,
banks, management and investors have different views about finance position. The
following solvency ratios have been worked out to analyze the solvency position of the
company.

3.6.2.1 Debt – Equity Ratio

Debt Equity Ratio is also known as external – internal equity ratio and is calculated to
measure the relative claims of outsiders and the owners against the firm’s assets. This ratio
indicate the relationship between the external equities or the outsider’s funds and the
internal equities or the shareholders funds. Ideal ratio is one.

Formulation

Debt-Equity Ratio = Outsider’s Fund/Shareholder’s fund

The outsider’s fund and the debt – equity ratio of sakthi finance limited is disclosed in
the Table 3.4
 TABLE 3.4

Debt Equity Ratio

(Rs in Lakhs)

S. No Year Outsiders’ Fund Shareholders’ Ratio in Times

Fund
1 2013-2014 16161.57 4089.60 3.95
2 2014-2015 15464.82 3168.28 3.95

3 2015-2016 15900.02 5107.72 6.01

4 2016-2017 16125.60 5188.71 3.10

5 2017-2018 18105.63 5390.64 3.36

Source: Annual Report

The Table 3.4 States that the Outsiders’ Fund of the company shows the fluctuation
trend. The shareholders’ fund of the company was increased except in 2014-2015. The debt
equity ratio was the highest (6.01) in 2015-2016 and it was the lowest (3.10) in 2016-2017.
 CHART 3.3

Debt – Equity Ratio

Debt - Equity Ratio

2017-2018

2016-2017

2015-2016 Debt - Equity Ratio

2014-2015

2013-2014

0 1 2 3 4 5 6 7
3.6.2.2

It is also known as debt ratio. It is a different of 100 and proprietary ratio. This ratio id
found out between total assets and external liabilities of the company. External liabilities
mean all long period and short period liablilities.

Formulation

Solvency ratio = Total outsiders liabilities / Total Assets

Solvency generally refers to the capacity or ability of the business to meet its short term
and long term obligations.

The total outsiders liabilities, total assets and the solvency ratio of sakthi finance limited
shown in the table 3.5.
 TABLE 3.5

Solvency Ratio

(Rs in Lakhs)

S. No Year Total Outsiders Total Assets Ratio in Times

Liability
1 2013-2014 16795.27 21676.90 0.77
2 2014-2015 16501.90 21446.49 0.76

3 2015-2016 16583.76 22155.28 0.74

4 2016-2017 17753.34 23185.56 0.76

5 2017-2018 20756.84 26293.85 0.78

Source: Annual Report

It can be understand from the Table 3.5 that the total outsiders liability and total asset
of the company was declined till 2014-2015 and afterwards it was increased. The solvency
ratio of the company was the highest (0.78) in 2017-2018 and it was the lowest (0.74) in
2015-2016.
3.6.2.3 Fixed Assets Ratio

Fixed assets ratio establishes the relationship between fixed assets and long term
funds. The objective of calculating this ratio is to ascertain proportion of long term funds
invested in fixed assets. Fixed assets ratio of more than 1 implies that fixed assets are
purchased with short term funds.

An ideal fixed assets ratio is 0.67

Formulation

Fixed Assets Ratio = Fixed Assets / Long Term Funds

Fixed Assets, Long – Term funds and the Fixed Assets Ratio of Sakthi Finance Limited
shown in the Table 3.6
 TABLE 3.6

Fixed Asset Ratio

(Rs in Lakhs)

S. No Year Current Assets Current Liabilities Ratio in Times

1 2013-2014 2898.94 16161.57 0.18
2 2014-2015 2878.32 15464.82 0.19

3 2015-2016 2828.74 15900.02 0.18

4 2016-2017 2657.15 16125.60 0.16

5 2017-2018 2472.43 18105.63 0.14

Source: Annual Report

It can be understand from the Table 3.6 that the fixed assets of the company was
decreased during the study period. The long term fund of the company was decreased till
2014-2015 and after word it was increased. The fixed assets ratios of the company was
highest (0.19) in 2014-2015 and it was the lowest (0.14) in 2017-2018.
3.6.2.4 Proprietary Ratio

This ratio compares the shareholders funds or owner’s funds and total tangible assets.
This ratio indicates the general strength of the company. A high ratio indicates safety to the
creditors and low ratio shows greater risk to the creditors.

This ratio shows the general soundness of the company. It is a particular interest to the
creditors of the company as it helps to ascertain the shareholders funds in the total assets of
the business.

Formulation

Proprietary Ratio = Shareholders funds / Total Tangible Assets

The shareholders funds , total tangible assets and the proprietary ratio of sakthi finance
shown in the table 3.7.
 TABLE 3.7

Proprietary Ratio

(Rs in Lakhs)

S. No Year Shareholder’s fund Total Tangible Ratio in Times

Assets
1 2013-2014 4089.60 21671.49 0.18
2 2014-2015 4937.13 21446.49 0.23

3 2015-2016 5107.72 22155.28 0.23

4 2016-2017 5188.71 23185.56 0.22

5 2017-2018 5390.64 26293.85 0.20

Source: Annual Report

Table 3.7 shows that the shareholder’s fund of the company increased during the study
period. The total tangible assets of the company the company was increased during the
study period except 2014-2015. The proprietary ratio of the company was the highest (0.23)
in 2014-2016 and it was lowest (0.18) in 2013-2014.

CHART – 3.4

Proprietary Ratio
 Proprietary Ratio

2017-2018

2016-2017

2015-2016 Proprietary Ratio

2014-2015

2013-2014

0 0.05 0.1 0.15 0.2 0.25

3.6.2.5 Capital Gearing Ratio

This ratio is also known as capitalization or leverage ratio. It is one of the long term
solvency ratios. It is used to analysis the capital structure of the company. A low gearing
ratio indicates over capitalization. The aim should be to avoid both high gearing and low
gearing and achieve ‘fair capitalization’.

Formulation

Capital Gearing Ratio = Long term Loans + Preference Capital + Debentures /

Equity Shareholders’ funds

The long Term Loan, Shareholder’ Funds and the capital gearing Ratio of Sakthi
Finance Limited shown in the Table 3.8
 TABLE 3.8

Capital Gearing Ratio

(Rs in Lakhs)

S. No Year Long Term Loans + Equity Ratio in Times

Preference Capital + Shareholder’s
Debentures Fund
1 2013-2014 16161.57 4089.60 3.95
2 2014-2015 15464.82 4937.13 3.13

3 2015-2016 15900.82 5107.72 3.11

4 2016-2017 16125.60 5188.71 3.10

5 2017-2018 18105.63 5390.64 3.35

Source: Annual Report

It can be noted from the Table 3.8 that the long term loan of the company was declined
till 2014-2015 and after words it was increased during the study period. The capital gearing
ratio of the company was the highest (4.45) in 2012-2013 and it was the lowest (3.10) in
2016-2017.
3.6.3 Profitability Ratios

Profit is the main objective of business. Aim of every business concern is to earn
maximum profits in absolute term and also in relative term i.e. profit is to be maximum in
terms of risk undertaken and capital employed. Ability to make maximum profit from
optimum utilization of resources by a business concern is term as “profitability”.

Profit is an absolute measure of earning capacity. Profitability depends on sales, cost

and utilization of resources. Profitability analysis consist of different elements i.e., study of
Sales, cost of goods sold, analysis of gross margin on sales, analysis of operating expenses,
operating profit in relation to capital employed. Following ratios have been worked out to
analyze the profitability of sakthi finance Limited.

3.6.3.1 Return on Total Asset

3.6.3.2 Return on Shareholders’ Fund

3.6.3.3 Return on Investment

3.6.3.4 Earning Per Share

3.6.3.1 Return on Total Asset

Return on Total Assets ratio is also known as profit-to-Assets ratio profitability can be
measured in terms of relationship in terms of relationship between net profit after tax and
the total assets. It helps to measures the overall profitability of the business concern.

Formulation

Return on Total Assets = Net Profit After Tax / Total Assets x 100

The Net Profit After Tax, Total Asset and the return on Total Asset Ratio of Sakthi
Finance Limited shown in the Table 3.9
 TABLE 3.9

Return on Total Asset Ratio

(Rs in Lakhs)

S. No Year Net Profit after Tax Total Asset Ratio in %

1 2013-2014 33.61 21676.90 0.16
2 2014-2015 65.87 21446.49 0.31

3 2015-2016 195.24 22155.28 0.88

4 2016-2017 318.83 23185.56 1.38

5 2017-2018 316.35 26293.85 1.20

Source: Annual Report

Table 3.9 states that the net profit after tax of the company was increased during the
study period except 2017-2018. The total assets of the company was fluctuated during the
study period. The return on total asset of the company was the highest (1.38 percent) in
2016-2017 and it was lowest (0.16 percent) in 2013-2014.
 CHART 3.5

Return on Total Asset

Return on Total Asset

2017-2018

2016-2017

2015-2016 Return on Total Asset

2014-2015

2013-2014

0 0.2 0.4 0.6 0.8 1 1.2 1.4

3.6.3.2 Return on Shareholders’ Fund

This ratio signifies the return on equity shareholders fund. The profit considered for
computing this ratio is taken after payment of preference dividend.

Formulation

Return on Shareholders’ Fund = Net Profit After Tax / Shareholders’ Fund x100

The Net Profit after Tax, Shareholders’ fund and the return on shareholders fund of
sakthi finance limited shown in the Table 3.10
 TABLE 3.10

Return on Shareholder Ratio

(Rs in Lakhs)

S. No Year Net profit After Tax Shareholders Fund Ratio in%

1 2013-2014 16161.57 4089.60 0.82
2 2014-2015 15464.82 4937.13 1.33

3 2015-2016 15900.82 5107.72 3.82

4 2016-2017 16125.60 5188.71 6.14

5 2017-2018 18105.63 5390.64 5.86

Source: Annual Report

Table 3.10 exposes that the net profit after tax was increased during the study period
except 2017-2018. A shareholder fund of the company was increased during the study
period. The return on shareholders’ fund of the company was the highest (6.14 percnt) in
2016-2017 and it was the lowest (0.82 percent) in 2013-2014.
3.6.3.3 Return on Investments

This ratio is called Return on Investment or return on Capital Employed. It masures

the sufficiency or otherwise of profit in relation to capital employed.

Formulation

Return on Investment = Operating Profit / Capital Employed x100

Capital employed consists of Net Working Capital + Fixed Assets. The term Operating
Profit means profit before interest and tax.

The Operating profit, Capital Employed and the Return on Investment of Sakthi
finance Limited shown in the Table 3.11
 TABLE 3.11

Return on Investment

(Rs in Lakhs)

S. No Year Operating Profit Capital Employed Ratio in %

1 2013-2014 35.46 18478.69 0.19
2 2014-2015 457.87 18519.05 2.47

3 2015-2016 643.93 18804.25 3.42

4 2016-2017 827.71 19291.09 4.29

5 2017-2018 1242.20 21842.83 5.68

Source: Annual Report

Table 3.11 shows that the operating profit and capital employed of the company was the
increased during the study period. The ratio of return on investment of the company was
the highest (5.68 percent) in 2017-2018 and it was the lowest (0.19 percent) in 2013-2014.
 CHART 3.6

Return on Investment

Return on Investment

2017-2018

2016-2017

2015-2016 Return on Investment

2014-2015

2013-2014

0 1 2 3 4 5 6
3.6.3.4 Earning Per Share

This ratio highlights the overall sources of the concern from the owner’s point of view
and it is helpful in determining market price of equity shares. It reflects upon the capacity
of the concern to pay dividend to its equity shareholders. This ratio is calculated by
dividing the net profit after tax and preference dividend by number of equity share.

Formulation

Earning Per Share = Net Profit After Tax / Number of Equity Shareholders

The Net Profit After Tax, Number of Equity Shares and the Earning per Share value of
Sakthi finance limited shown in the Table 3.12
 TABLE 3.12

Earning Per Share

(Rs in Lakhs)

S. No Year Net Profit After Tax No of Equity Share Ratio

1 2013-2014 33.61 175.71 0.19
2 2014-2015 65.87 200.71 0.32

3 2015-2016 195.24 200.71 0.97

4 2016-2017 318.83 200.71 1.59

5 2017-2018 316.35 200.71 1.58

Source: Annual Report

It can be understood from the Table 3.12 that the net profit after tax of the company
was inclined except 2017-2018. No of equity share are inclined. The earning per share ratio
of the company was the highest (1.59) in 2016-2017 and it was the lowest (0.19) in 2013-
2014.
 CHAPTER IV
OPERATIONAL EFFICIENCY
ANALYSIS
4.1 Introduction

Financial analysis is a process of identifying the financial strength and weakness of

the company by proper establishing relationship between the item of the balance sheet and
the profit & Loss account. Ratio analysis is one among the various methods of analyzing
the financial statement. A ratio is an expression of quantitative relationship between two
numbers. In simple language ratio is one number expressed in terms of another and can be
worked out by dividing one number to the other.

The ratio analysis is one of the most powerful tools of financial analysis. It is used as
a devise to analysis and interprets the financial health of the enterprise. A ratio is known as
a symptom of low blood pressure, the pressure, the pulse rate of the temperate of an
individual.

It is with of ratios that the financial statements can be analysis more clearly. The
researcher has made an attempt to study the financial strength of the Sakthi Finance
Limited by using the financial ratios.
4.2 Relative Solvency of the Company

The relative solvency of Sakthi Finance Limited has been measured through

4.2.1 Stability Ratio

4.2.2 Liquidity Ratio

4.2.3 Credit Ratio

4.3 The Effectiveness of the Service Policies

The effectiveness of Sakthi Finance Limited service policies have been judged
through activity.

4.3.1 Advance to Total Deposits

4.3.2 Operating Income to Net Worth

4.4 Productivity Ratio

Productivity may be defined as the ratio between output and inputs. Output means
the amount produced or the number of items produced and inputs are the various
resources employed.

4.4.1 Deposits/Advances/Business Per Branch

4.2 Relative Solvency of the Company

4.2.1 Stability Ratio

The following three stability ratios have been computed for the company for each
year such as,

4.2.1.1 Reserves to paid up Capital

 4.2.1.2 Current Assets to Net Worth

4.2.1.3 Aggregate Deposits to Net Worth

4.2.1.1 Reserves to paid up Capital

The ratio expresses the shareholders reserves as percentage of the paid up capital.
There is a statutory restriction on every company to maintain a reserve fund and to
transfer to its fund 34% of the profit every year. The higher percentage greater stability of
the company.

Formulation

Reserves to paid up capital = Shareholders’ Reserve/Paid up Capital x 100

The Reserves, paid up Capital and Ratio of Reserve to paid up Capital of Sakthi
Finance Limited is shown in the Table 4.1
 TABLE 4.1

Ratio of reserves to Paid up Capital

(Rs in Lakhs)

Year Reserves Paid up Capital Ratio in %

2013-2014 1627.37 1757.13 92.62

2014-2015 1768.85 2007.13 88.13

2015-2016 1939.45 2007.13 96.63

2016-2017 2035.44 2007.13 101.41

2017-2018 2237.37 2007.13 111.47

Source: Annual Report

It can be understood from the Table 4.1 that the reserves of the company was
increased and paid up capital also increased. The ratio of reserves to paid up capital of the
company was the highest (111.47 per cent) in 2017-2018 and it as the lowest (88.18 per cent)
in 2014-2015.
 CHAPTER 4.1

Reserve to Paid up Capital Ratio

120

100

80

60

40

20

0
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
4.2.1.2 Current Assets to Net Worth

This ratio indicates the extend to which proprietors funds are invested in current
assets. A higher percentage of current assets to net worth reflect a greater stability and
solvency of the company. Net worth comprises shareholder’s fund of the company.

Formulation

Current Assets to Net Worth = Current Assets / Net Worth x 100

The current Assets, Net Worth and the Ratio of Current Assets to Net Worth of
Sakthi Finance Limited is shown in the Table 4.2
 TABLE 4.1

Ratio of Current Assets to Net Worth

(Rs in Lakhs)

Year Current Assets Net worth Ratio in %

2013-2014 18772.55 4089.60 459.03

2014-2015 18568.17 4937.13 376.09

2015-2016 18985.91 5107.72 371.71

2016-2017 20265.64 5188.71 390.57

2017-2018 23699.48 5390.64 439.64

Source: Annual Report

The Table 4.2 shows that the Current Assets of the company were fluctuated and
the net worth of the company was increased during the study period. The ratio of current
assets to net worth of the company was the highest (459.03 per cent) in 2013-2014 and it as
the lowest (371.71 Per cent) in 2015-2016
4.2.1.3 Aggregate Deposits to Net Worth

This ratio expresses deposits and other accounts as a percentage of net worth.
Deposits are loans to the company at lower rate of interest and represent the major source
of funds to the company. Deposits when used in such a way to earn more than what is to be
paid on them increase the profit earning capacity of the company and assets acquired from
these funds run the risk of shrinkage in value.

Formulation

Aggregate Deposits to Net Worth = Aggregate Deposits / Net Worth x 100

The aggregate Deposits, Net Worth and Ratio in Aggregate Deposits to Net Worth
of Sakthi Finance Limited is shown in the Table 4.3
 TABLE 4.3

Ratio of Aggregate Deposits to Net Worth

(Rs in Lakhs)

Year Aggregate Deposits Net Worth Ratio in %

2013-2014 10725.54 4089.60 262.26

2014-2015 10015.69 4937.13 202.86

2015-2016 9453.23 5107.72 185.08

2016-2017 8170.56 5188.71 157.47

2017-2018 8186.11 5390.64 151.86

Source: Annual Report

It can be understood from the Table 4.3 that the aggregate deposits of the company
was decreased and the net worth of the company was increased. The ratio of aggregate
deposits to net worth of the company was the highest (262.26 per cent) in 2013-2014 and it
as the lowest (151.86 per cent) in 2017-2018.
4.2.2 Liquidity Analysis

The following ratios have been computed for each year to evaluate the liquidity of
the company.

4.2.2.1 Investment in Government Securities to Current Assets

4.2.2.2 Advances to Current Assets

4.2.2.1 Investment in Government Securities to Current Assets

Government securities are in the order of liquidity among current assets. Whenever
necessary, they can be readily sold to replenish the cash and bank balances. A higher
percentage indicates better liquidity and stability, but beyond a certain point, it implies an
economic utilization of resources, which could be used in other ways for earning a higher
income.

Formulation

Investment in Government Securities / Current Assets x 100

The Investment in Government Securities, Current Assets and Ratio of Investment

in Government Securities to Current Assets of Sakthi Finance Limited is shown in the
Table 4.4
 TABLE 4.4

Ratio of Investment in Government Securities to Current Assets

(Rs in Lakhs)

Year Investment in Current Assets Ratio in %

Government
Securities
2013-2014 1505.31 18772.55 8.01

2014-2015 1579.04 18568.17 8.50

2015-2016 1539.19 18985.91 8.11

2016-2017 1449.78 20265.64 7.15

2017-2018 1240.83 23699.48 5.24

Source: Annual Report

It can be noted from the Table 4.4 that the investment in government securities of
the company was fluctuated and current assets of the company was increased except 2014-
2015 . The ratio of investment in government securities to current assets of the company
was the highest (8.50 per cent) in 2014-2015 and it was the lowest (5.24 per cent) in 2017-
2018.
4.2.2.2 Advances to Current Assets

Advances consist of loans, cash credits, and purchases. They are the major sources
of income of the company. A large proposition of advance brings highest income.
Therefore, a high percentage indicates a less liquid position.

Formulation

Advances to Current Assets = Total Advances / Current Assets x 100

The Total Advances, Current Assets and the Ratio of Advances to Current Assets of
Sakthi Finance Limited us shown in the Table 4.5
 TABLE 4.5

Advances to Current Assets

(Rs in Lakhs)

Year Total Advances Current Assets Ratio in %

2013-2014 3890.91 18772.55 20.73

2014-2015 3265.40 18568.17 17.59

2015-2016 2552.68 18985.91 13.44

2016-2017 2123.07 20265.64 10.47

2017-2018 2043.49 23699.48 8.62

Source: Annual Report

It can be noted from the Table 4.5 states that the total advances of the company
were decreased in during the study period. The ratio of advances to current assets of the
company was the highest (20.79 per cent) in 2013-2014 and it as the lowest (8.62 per cent)
in 2017-2018.
 CHART 4.2

Advance to Current Asset Ratio

Avance to Current Asset Ratio

25

20

15

10

0
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
4.2.3 Credit Analysis

The credit ratio also reveals the relative solvency of the company. The following two
credit ratios have been computed for each year, namely

4.2.3.1 Investment in Government Securities to Total Deposits

4.2.3.2 Total Investment to Aggregate Deposit

4.2.3.1 Investment in Government Securities to Total Deposits

They are readily marketable when cash and bank balance fall to an undesirable low
level, the decline could be arrested by selling government securities. Government securities
also provide an income to the company. A higher percentage indicates better liquidity and
stability to the depositors.

Formulation

Investment in Government Securities / Total Deposits x 100

The Investment in Government Securities, Total Deposits and Ratio of investment in

Government Securities to Total Deposits of Sakthi Finance Limited is shown in the Table
4.6
 TABLE 4.6

Ratio of Investment in Government Securities to Total Deposits

(Rs in Lakhs)

Year Investment in Total Deposits Ratio in %

Government
Securities
2013-2014 1505.31 10725.54 14.03

2014-2015 1579.04 10015.69 15.76

2015-2016 1539.19 9453.23 16.28

2016-2017 1449.78 8170.56 17.74

2017-2018 1240.83 8186.11 15.15

Source: Annual Report

Table 4.6 states that the investment in government securities of the company was
fluctuated during the year. The ratio of the investment in government securities to total
deposits of the company was the highest (17.14 per cent) in 2016-2017 and it was the lowest
(14.03 per cent) in 2013-2014.
4.2.3.2 Total Investment to Aggregate Deposit

The ratio indicates what percentage of the deposit had been used to acquire
investment. A higher percentage of investments in readily marketable securities show
greater safety for the deposits.

Formulation

Total Investment to Aggregate Deposit = Total Investment / Aggregate Deposit x100

The Total Investment, Aggregate Deposit and Ratio of Total Investment to

Aggregate Deposit of Sakthi Finance Limited is Shown in the Table 4.7
 TABLE 4.7

Ratio of Total Investment to Aggregate Deposit

(Rs in Lakhs)

Year Total Investment Aggregate Deposits Ratio in %

2013-2014 1844.70 10725.54 17.20

2014-2015 1884.91 10015.69 18.82

2015-2016 1862.88 9453.23 19.71

2016-2017 1760.47 8170.56 21.55

2017-2018 1531.53 8186.11 18.71

Source: Annual Report

It can be understood from the Table 4.7 that the total investment of the company
fluctuated during the study period. The ratio of total investment to aggregate deposit of the
company was the highest (21.55 per cent) in 2016-2017 and it as the lowest (17.20 per cent)
in 2013-2014.
4.3.1 Effectiveness of the Service Policies

To measure the effectiveness of Sakthi Finance Limited Service policies, the

following turnover ratios have been computed for each year namely,

4.3.1.1 Total Advances to Aggregate Deposits

4.3.1.2 Operating Income to Net worth

4.3.1.1 Total Advances to Aggregate Deposits

Advances represent the major sources of income for a company. A part of fund
received through deposit is used for the purpose of Advances. As advances increases, the
liquidity of the company is correspondingly reduced. A higher ratio indicates greater
turnover of deposit and higher profit earning potentiality.

Formulation

Total Advances to Aggregate Deposits = Total Advances / Aggregate Deposits x 100

The Total Advances, Aggregate Deposits and Ratio of Total Advances to Aggregate
Deposits of Sakthi Finance Limited is shown in the Table 4.8
.

Total Advance to Aggrgate Deposit

40

35

30

25
Total Advance to Aggrgate
20
Deposit
15

10

0
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
4.3.1.2 Operating Income to Net Worth

This ratio indicates the turnover of the company’s net worth to make operating
income. Operating income is the major source of income for the company, which comprises
of interest and discount, commission, exchange and brokerage. Therefore a high ratio is
favorable and also profitable.

Formulation

Operating Income to Net Worth = Operating Income / Net worth x 100

The operating income, Net worth and the Ratio of Operating Income to Net Worth
of Sakthi Finance limited is shown in the table 4.9
 TABLE 4.9

Ratio of Operating Income to Net Worth

(Rs in Lakhs)

Year Operating Income Net worth Ratio in %

2013-2014 442.78 4089.60 10.82

2014-2015 153.44 4937.13 3.10

2015-2016 174.80 5107.72 3.52

2016-2017 172.96 5188.71 3.33

2017-2018 173.61 5390.64 3.22

Source: Annual Report

Table 4.9 states that the operating income of the company was fluctuated and net
worth of the company was increased during the study period. The ratio of operating
income to net worth of the company was the highest (10.82 per cent) in 2013-2014 and it
was lowest (3.10 per cent) in 2014-2015.
 CHART 4.4

Operating Income to Net Worth Ratio

Operating Income to Net Worth Ratio

12

10

6
Operating Income to Net Worth
4 Ratio

0
4.4 Productivity Ratio

Productivity may be defined as the ratio between output and inputs. Output means
the amount produced or the number of items produced and inputs are the varies resources
employed e.g. land and building, equipment and machinery, materials and labour.

4.4.1 Deposit/ Advances/ Business per Branch

The mobilization of deposits, lending of advances and business per branch indicates
the branch effectiveness in mobilizing deposits and lending advances. The total business
consists of total deposits and advances. The higher ratio indicates the greater ability of the
bank and vice versa. This can be calculated as follows.

Formulation

Per Branch = Deposits / Advances / Business Per branch /

Total Number of Branches

Business = Total Advances + Total Deposits

The Deposits/ Advances/ Business per Branch, Total Number of Branches and the
Ratio of Deposits/ Advances/ Business per Branch of Sakthi Finance Limited is Shown in
the Table 4.10
 Table 4.10

Deposits/ Advances / Business Per Branch

(Rs. In Lakhs)

Year Total Total Total No of Deposit Advance Business

Deposit Advances Business Branch Per Per Per
Branch Branch Branch

2013-2014 10725.54 3890.91 14616.45 25 429.02 155.64 584.66

2014-2015 10015.69 3265.40 13281.09 25 400.63 130.62 531.25

2015-2016 9453.23 2552.68 12005.91 25 378.13 102.11 480.24

2016-2017 8170.56 2123.07 10293.63 25 326.82 84.92 411.74

2017-2018 8160.11 2043.49 10229.60 25 327.44 81.74 409.18

Source : Annual Report

Interpretation

It can be understood from the Table 4.10 that the total deposit, total advances and
total business of the company was decreased during the study period. Per Branch advances
of the company was the highest (155.64 lakhs) in 2013-2014 and it was the lowest (81.74
lakhs) in 2017-2018. Per branch business of the company was the highest (584.66 lakhs) in
2013-2014 and it was the lowest (409.18 lakhs) in 2017-2018.
 CHAPTER V

FINDINGS & SUGGESTIONS

5.1 Introduction

The financial statements are mirror which related to financial position as well as the
operating result be in favorable or unfavorable to the company. The purpose of evaluation
of financial statement differ among various groups interested in the results of the company.
Thus it is responsible for the company, maintaining its solvency at the same time ensuring
an adequate rate of return.

5.2 Findings

1. Current Ratio

The current ratio of the company was above the standard norms during the study
period

2. Liquidity Ratio

The liquid ratio of the company was the highest (3.18) in the year 2013-2014 and it
was the lowest (1.10) in the year 2017-2018.

3. Absolute Liquid Ratio

Absolute liquid ratio of the company was the highest (0.77) in the year 2015-2016
and it was the lowest (0.08) in 2013-2014.

4. Debt Equity Ratio

The debt equity ratio was the highest (6.01) in 2015-2016 and it was the lowest in
(3.10) 2016-2017.

5. Solvency Ratio

The Solvency ratio was the highest (0.78) in 2017-2018 and it was the lowest in (0.74)
2015-2016.

6. Fixed Asset Ratio

The fixed asset ratio was highest (0.19) in 2014-2015 and it was the lowest in (0.14)
in the year 2017-2018.
7. Proprietary Ratio

The Proprietary ratio of the company was the highest (0.23) in 2014-2015 and it was
the lowest in (0.16) 2013-2014.

8.Capital gearing ratio

The capital gearing ratio of the t was the highest (3.95) in 2013-2014 and it was the
lowest (3.10) in 2017-2018.

9. Return on Total Assets

The ratio of return on total assets was the highest (1.38 per cent) in 2017-2018 and it
was the lowest (0.16 per cent) in 201-2014.

10. Return on Shareholder’s Fund

The return on Shareholder’s fund ratio was the highest (6.14 per cent) in 2016-2017
and it was the lowest (0.82 per cent) in 2013-2014

11.Return on Investment

The Ratio of Return on Investment was the highest (2.25 per cent) in 2013-2014 and
it was lowest (0.02 per cent) in 2015-2016.

12. Earning Per Share

The Earning Per Share ratio of the company was the highest (1.59) in 2016-2017 and
it was lowest (0.19) in 2013-2014.

13. Reserve to Paid Up Capital Ratio

Reserve to paid up capital ratio of the company was the highest (111.47 per ccent)
during 2017-2018 and it was the lowest (88.13 per cent) during 2014-2015.

14. Current Ratio to Net Worth

Current Ratio to Net Worth ratio of the company was the highest (459.03 per cent)
during 2013-2014 and it was the lowest (376.09 per cent) during 2014-2015.

15. Aggregate Deposits to Net Worth

Aggregate deposits to net worth ratio of the company were the highest (262.26 per
cent) in 2013-2014 and it was lowest (151.86 per cent) during 2017-2018.
16. Investment in government Securities to Current Assets

Investment in government securities to current assets ratio of the company was the
highest (20.73 per cent) during 2013-2014 ad it was the lowest (8.62 per cent) during 2017-
2018.

17. Advance Current Assets

Advance to current assets ratio of the company was the highest (20.73 per cent) in
2013-2014 and it was the lowest (8.62 percent) in 2017-2018.

18. Investment in government Securities to Current Assets

Investment in government securities to current assets ratio of the company was

highest (17.74 per cent) in the year 2017-2017 and it was the lowest (14.03 per cent) during
2013-2014.

19. Total Investment to Aggregate Deposits

Total investment to aggregate deposits ratio of the company was the highest (21.55
per cent) in 2016-2017 and it was the lowest (17.20 per cent) during 2013-2014.

20. Total Advances to Aggregate Deposits

Total advances to aggregate deposits ratio of the company was the highest (36.27 per
cent) in 2013-2014 and it was the lowest (24.96 per cent) in 2017-20188.

21. Operating Income to Net Worth

Operating income to Net worth ratio of the company was the highest (10.2 per cent)
during 2013-2014 and it was the lowest (3.10 per cent) during 2014-2015.

22. Deposit/ Advances/ Business per Branch

Business per branch of the company was the highest (584.66 lakhs) in 2013-2014 and
it was the lowest (409.18 lakhs) in2017-2018.
5.3 Suggestions

1. Liquidity Position

The company should not make excessive investment in current assets. The excessive
investment should be used for leading operations so that company should maintain
adequate current assets.

2. Financial Position

The company should maintain optimum capital structure in order to ensure sound
solvency position. In this connection, the company should follow the standard norms.

3. Profitability Position

The company should accelerated profit earning capacity through lending loans and
advances to the needy and open more number of branches, also the company should reduce
operating cost.

4. Operating Efficiency

The company should enhance it business through accepting deposits, lending loans
and advances. The productivity per branch should be increased through opening up
branches and offering attractive interest for the deposits mobilization.
CONCLUSION
 Conclusion

The study has been undertaken with the objective of evaluating the financial and
operational performance of Sakthi Finance Limited. From the study it is concluded that the
company’s overall financial and operational efficiency was satisfactory. The researcher has
found that the company suffers from certain weakness and has given some suggestions to
overcome it. If the suggestions are implemented, the company can increase its profitability
and overall performance.
BIBLIOGRAPHY
 Bibliography

 Management accounting – R.K Sharma Shashi K Gupta year 2001 (New Delhi).

 Management Accounting – RSN. Pillai and Bagavathi Sultan chand and company
Limited Reprint year 2002.

 Management Accounting and Financial control – Dr.S.N.Maheswari – 2000 (Sultan

Chand and sons) New Delhi.

 Management Accounting – T.S Reddy Y. Hariprasad Reddy Margham Publications

– Chennai. Year – 2005.

 Financial Management – M.k. Khan P.K.Jain Tata Mcgraw – hill Publishing

Company Limited – 1998.

 Business Research Methodology – N. Thanulingom Himalaya Publishing House

Mumbai – year 2001.

 Business Resarch Methodology – Saravanavel Published by Kitab Mahal Allahabad

year – 2005.

 Annual Reports of Sakthi Finance Limited (Coimbatore)

Websites

www.google.com