Fixed Assets Management

A Study on
“FIXED ASSETS MANAGEMENT”
On
“TGV SRAAC LTD”
Submitted to
Rayalaseema University, Kurnool
For the Post Graduate Degree of
Master of Commerce (Professional)
BY
M.Zelani
R.I.E. PG College, Kurnool
College Admin No: 0991 Year: 2017
Exam Hall Ticket No: 17305111019 Year: 2019
Under the Guidance of
MR. A. UMA MAHESHWAR Rao, M.com
Associate Professor of
R.I.E PG COLLEGE, Kurnool
DEPARTMENT OF COMMERCE
R.I.E.P.G COLLEGE, KURNOOL
(Affiliated to Rayalaseema University, Kurnool)
2017-2019
Fixed Assets Management
DECLARATION
I the Undersigned M. Zelani hereby solemnly declare that the report

titled “A Study on Fixed Assets Management” is prepared and completed
by me under the supervision and guidance of Mr. A. Uma Maheshwar Rao,
Lecturer in Commerce. This report has not been previously submitted to any
other university, college or organization for an academic, qualification,
certificate.
I hereby warrant that the work I have presented does not breach any existing
copyright.
……………………………………
-
Name & Signature

M.Zelani
(M.com)
R.I.E PG COLLEGE KURNOOL Page 2

Acknowledgement
The success and final outcome of this project required a lot of guidance and
assistance from many people and I am extremely privileged to have got this all
along the completion of my project. All that I have done is only due to such
supervision and assistance
I respect and thank to my Sir Mr. A. Uma Maheshwar Rao, for providing me
an opportunity to do the project work and giving us all support and guidance
which made me complete the project duly. I am extremely thankful for
providing such a nice support and guidance, although he had busy schedule
managing the corporate affairs.
I would not forget to remember K Karunakar Rao and Sheshmani, sir of TGV
SRAAC Ltd for their encouragement and more over for their timely support
and guidance till the completion of our project work.
I heartily thank our internal project guide, A. Uma Maheshwar Rao Retd,
Associate Professor of Commerce Department for his guidance and
suggestions during this project work.
I am thankful to and fortunate enough to get constant encouragement, support

and guidance from all Teaching staffs of Commerce Department which helped
us in successfully completing our project work. Also, I would like to extend
our sincere esteems to all staff for their timely support.
M.Zelani
Regd. No:17305111019

Contents
CHAPTERS TITLE PAGE NO

I. INTRODUCTION
5 – 11
 Fixed Assets
II. RESEARCH METHODOLOGY
 Review of Literature
 Need for the study
 Objectives
 Scope of study 12 - 18
 Limitations
 Sources of data
III. PROFILES
 Industry profile
19 – 32
 Company profile
IV. DATA ANALYSIS & INTERPRETATION 33 – 52
V. FINDINGS , SUGGESTIONS &CONCLUSION

53 – 56
 Profit & loss A/c 57 - 60

 Balance Sheets
VI.
 Bibliography

CHAPTER - 1
INTRODUCTION

INTRODUCTION:-
Fixed Assets are the assets held with the intention of being used on continuous basis
for the purpose of producing or providing goods or services and are not held for resale in
the normal course of business.e.g. Land and Buildings, Plant and Machinery, Motor
Vehicles, Furniture and Fixtures.
Valuation of fixed assets is important to have fair measure of profit or

loss and financial position of the concern. Fixed assets are meant for use for many years.
The value of these assets decreases with their use or with time or many other reasons. A
portion of fixed assets are reduced by usage are converted into cash through charging
depreciation. For correct measurement of income, proper measurement of depreciation is
essential, as depreciation constitutes a part of total cost of production.
Financial transactions are recorded in the books, keeping in view the going concern
aspect of the business unit. In going concern aspect it is assumed that the business unit has
reasonable expectation of continuing the business for a profit for an indefinite period of
time. This assumption provides much of the justification for recording fixed assets at
original cost and depreciating them in a systematic manner without reference to their
current realizable value.
It is useless to record the fixed assets in the balance sheet at their estimated
realizable values if there is no immediate expectation of selling them. So, they are shown at
their book value (i.e. Cost –Depreciation) and not at current realizable value. The market
value of the fixed assets may change with the passage of time, but for accounting purpose it
continues to be shown in the books in historical cost.
The cost concept of accounting states that depreciation calculated on the basis of
historical cost of old assets is usually lower than the amount calculated at current value/
replacement value. These results in more profits, which if distributed in full will lead to
reduction in capital.

ACCOUNTING STANDARD FOR FIXED ASSETS (AS-10):-
AS-10 on Accounting for Fixed Assets has been made mandatory with effect from
01.04.1991. According to the AS-10, “Fixed Asset is an asset held with the intention of
being used on continuous basis for the purpose of producing or providing goods or services
and is not held for resale in the normal course of action”. Gross book value of fixed asset is
its historical cost or other amount substituted for historical costs in the books of accounts or
financial statements. When the amount of depreciation is deducted from gross book value
then it is Net Book Value.
Cost of Fixed Assets should consist of purchase price including import duties etc.,
and attributable cost of bringing the asset to its working condition for its intended use.
Financing costs relating to borrowed funds attributable to construction or acquisition of
fixed assets for the period up to the acquisition or completion. Expenditure incurred in start-
up and commissioning of the project including test runs.
Revaluation of assets: Fixed assets may be restated in the value with the help of
appraisal under taken by the competent values .Such valuation of assets is called
revaluation.
FIXED ASSETS MANAGEMENT CYCLE:-
The fixed assets management cycle is the cycle of activities from the acquisition of
the asset to the final disposition of the assets at the end of their useful life. The cycle has 7
steps:
Acquisition: The cycle begins with the acquisition, purchase, gift or otherwise, of an asset
and the determination that the asset is to be capitalized. To be capitalized the asset has to
meet the agency’s capitalization limit and have a useful life of one year or more.
Receiving: The asset is formally received and accepted by the agency. Receipt may be
verified by entry into an automated purchasing system or by hard copy document. In the
case of donated fixed assets, receipt can be verified by a letter to the donor.
Payment: Payment is made for the asset according to the terms of the purchase order or
recognition of acceptance of a gift to the donor. The payment includes the acquisition cost,

freight and all other costs to put the asset. Acquisition cost of donated fixed assets is
determined by its fair market value.
Identification: the asset is identified as an asset, tagged or otherwise identified and entered
into the fixed assets management inventory system. Assets are identified with a
permanently attached identification tag or by painting on the identification number.
Inventory: The longest step in the cycle. The asset is used over its useful life. Assets are
inventoried and accounted for during this step until they are no longer needed. The
agency’s policies and procedures determine the inventory interval.
Excess: the asset is declared as excess to the user’s needs. The asset may be transferred to
another user where it will continue to be used, accounted for and inventoried. Assets may
be declared as excess more than once until the asset is no longer needed.
Surplus: The last step in the fixed assets management cycle. The asset is declared to be
surplus property and to have no further value to the agency. The asset is disposed of by
sale or discarding depending on the residual value. Sale can be by auction, sealed bid, spot
sale, or through a sales store.

FIXED ASSETS MANAGEMENT CYCLE:-
MANAGEMENT OF FIXED ASSETS:-
The selection of various fixed assets required for creating the desired production
facilities and the decision regarding the determination of level of fixed assets in the capital
structure is an important decision for the company to take for the smooth running of
business. The decisions relating to fixed assets involve huge funds for long period of time
and are generally of irreversible nature affecting the long profitability of the business. Thus,
management of fixed asset is of vital importance to any organization.
The process of Fixed Assets Management involves:
1. Selection of most worthy projects from the different alternatives of fixed assets.
2. Arranging the requisite funds/capital for the same.

The first important consideration is to acquire only that amount of fixed assets,
which will be just sufficient to ensure smooth and efficient running of the business. In some
cases it may be economical to buy certain assets in a lot size. Another important
consideration to be kept in mind is possible increase in the demand of the firm’s product
needs the expansion of activities. Hence a firm should have that amount of fixed assets,
which could adjust to increase demand.
Another aspect of fixed assets management is that a firm must ensure buffer stocks
of certain essential equipments to ensure uninterrupted production in the events of
emergencies. Sometimes, there may some breakdown in some equipments or services
affecting the entire production. It is always better to have some alternative arrangements to
deal with such situations but at the same time the cost of carrying such buffer stock should
also be evaluated. Efforts should also be made to minimize the level of buffer stock of fixed
assets so that there will be maximum utilization during that period.
Fixed assets management is an accounting process that seeks to track fixed assets for
the purposes of financial accounting, preventive maintenance, and theft. Many
organizations face a significant challenge to track the location, quantity, condition,
maintenance and depreciation status of their fixed assets. A popular approach to tracking
fixed assets utilizes serial numbered asset tags, often with bar codes for easy and accurate
reading. Periodically, the owner of the assets can take inventory with a mobile barcode
reader and then produce a report.
Off-the-shelf software packages for fixed asset management are marketed to

businesses small and large. Some Enterprise Resource Planning systems are available with
fixed assets modules.
Investment management is the professional management of various securities

(shares, bonds etc) and other assets (e.g. real estate), to meet specified investment goals for
the benefit of the investors. Investors may be institutions (insurance companies, pension
funds, corporations etc.) or private investors (both directly via investment contracts and
more commonly via collective investment schemes eg.Mutual funds). The term asset

management is often used to refer to the investment management of collective investments,

whilst the more generic fund management may refer to all forms of institutional
investment as well as investment management for private investors. Investment managers
who specialize in advisory or discretionary management on behalf of (normally wealthy)
private investors may often refer to their services as wealth management or portfolio
management often within the context of so-called “private banking".
The provision of 'investment management services' includes elements of financial

analysis, asset selection, stock selection, plan implementation and ongoing monitoring of
investments. Investment management is a large and important global industry in its own
right responsible for caretaking of trillions of dollars, euros, pounds and yen. Coming under
the remit of financial services many of the world's largest companies are at least in part
investment managers and employ millions of staff and create billions in revenue.
Fund manager (or investment advisor in the U.S.) refers to both a firm that
provides investment management services and an individual(s) who directs 'fund
management' decisions.\
Fixed asset, also known as property, plant, and equipment (PP&E), is a term used in
accountancy for assets and property which cannot easily be converted into cash. This can be
compared with current assets such as cash or bank accounts, which are described as liquid
assets. In most cases, only tangible assets are referred to as fixed.
Fixed assets normally include items such as land and buildings, motor, furniture,
office equipment, computers, fixtures and fittings, and plant and machinery. These often
receive favorable tax treatment (depreciation allowance) over short-term assets because they
depreciate over time.

Chapter-2
RESEARCH
METHODOLOGY

REVIEW OF LITERATURE:-
Fixed asset, also known as a non-current asset or as property, plant, and equipment
(PP&E), is a term used in accounting for assets and property which cannot easily be
converted into cash. This can be compared with current assets such as cash or bank
accounts, which are described as liquid assets. In most cases, only tangible assets are
referred to as fixed.
Moreover, a fixed/non-current asset can also be defined as an asset not directly sold to a
firm's consumers/end-users. As an example, a baking firm's current assets would be its
inventory (in this case, flour, yeast, etc.), the value of sales owed to the firm via credit (i.e.
debtors or accounts receivable), cash held in the bank, etc. Its non-current assets would be
the oven used to bakebread, motor vehicles used to transport deliveries, cash registers used
to handle cash payments, etc. Each aforementioned non-current asset is not sold directly to
consumers.
These are items of value which the organization has bought and will use for an
extended period of time; fixed assets normally include items such as land and buildings,
motor vehicles, furniture office equipment, computers, fixtures and fittings, and plant and
machinery. These often receive favorable tax treatment (depreciation allowance) over short-
term assets. According to International Accounting Standard (IAS) 16, Fixed Assets are
assets whose future economic benefit is probable to flow into the entity, whose cost can be
measured reliably.
It is pertinent to note that the cost of a fixed asset is its purchase price, including
import duties and other deductible trade discounts and rebates. In addition, cost attributable
to bringing and installing the asset in its needed location and the initial estimate of
dismantling and removing the item if they are eventually no longer needed on the location.
The primary objective of a business entity is to make profit and increase the wealth of its
owners In the attainment of this objective it is required that the management will exercise

due care and diligence in applying the basic accounting concept of “Matching Concept”.
Matching concept is simply matching the expenses of a period against the revenues of the
same period.
Depreciating a Fixed Asset:-
Depreciation is, simply put, the expense generated by the use of an asset. It is the
wear and tear of an asset or diminution in the historical value owing to usage. Further to
this; it is the cost of the asset less any salvage value over its estimated useful life. It is an
expense because it is matched against the revenue generated through the use of the same
asset. Depreciation is usually spread over the economic useful life of an asset because it is
regarded as the cost of an asset absorbed over its useful life. Invariably the depreciation
expense is charged against the revenue generated through the use of the asset. The method
of depreciation to be adopted is best left for the management to decide in consideration to
the peculiarity of the business, prevailing economic condition of the assets and existing
accounting guideline and principles as implied in the organizational policies.
It is worth noting that not all fixed assets depreciate in value year-over-year. Land
and building for example, may often increase in value depending on local real-estate
conditions.
A long-term tangible piece of property that a firm owns and uses in the production
of its income and is not expected to be consumed or converted into cash any sooner than at
least one year's time.

NEED FOR THE STUDY:-
Fixed assets play an important role in company’s objectives. These fixed assets
are not convertible or not liquidable over a period of time. The owner’s funds and long term
liabilities are invested in fixed assets, fixed assets play dominant role in the business and the
firm has utilization of fixed assets. So, ratio contributes in analyzing and evaluating the
performance of the business.
If firms fixed assets are idle and not utilized properly it affects the long-term
sustainability of the firm, which may affect liquidity and solvency and profitability
positions of the company. The idle fixed assets lead to a tremendous loss in financial cost
and intangible cost associate of it. So, this will lead to evaluation of fixed assets
performance, comparing with similar company and comparison with industry standards.
OBJECTIVES OF THE STUDY:-
The following are the objectives of the study
1. The study is conducted to know the amount of capital expenditure made by the company
during study period.
2. To evaluate fixed assets performance of TGV SRAAC To evaluate the fixed assets
turnover of TGV SRAAC.
3. To evaluate depreciation and method of depreciation adopted by TGV SRAAC To know
the amount of finance made by long-term liabilities and owners funds towards fixed assets.
4. To evaluate whether fixed assets are giving adequate returns to the company.
5. To evaluate that if fixed assets are liquidated, what proportion of it will contribute for the
payment of owners fund and long-term liabilities

SCOPE OF THE STUDY:-
1. The project is covered on fixed assets of TGV SRAAC.

2. Drawn from annual reports of the company.
3. The subject matter is limited to fixed assets, its analysis and its performance but not to any
other areas of accounting corporate, marketing and financial matters.
4. Fixed assets are the assets which cannot be liquidated into cash within one year.
5. The huge amounts of funds of the company are invested in these assets. Every year
company invests an additional fund in these assets directly or indirectly.
6. The survival and other objectives of the company depend on operating performance of
management i.e. effective utilization of these assets.
7. Firm has evaluated the performance, of fixed assets with proportion of capital employed on
net assets turnover and other parameters which are helpful for evaluating the performance of
fixed assets.
LIMITATIONS:-
The following are the limitations for the study
• The study is limited into the date and information provided by the company and its annual
reports.
• The report may not provide exact fixed assets status and position of
TGV SRAAC company.
• This report is aid as an investing tool.
• The accounting procedure and other accounting principles are limited by the changes made
by the company which may vary fixed assets performance.

DATA COLLECTION METHODS:-
The research has been done to know the financial methodology of

SRAAC LTD, Kurnool.
The data collection methods include both the primary data and secondary data collection
methods.
• Primary Data collection method: The Primary Data is collected by interacting with
the finance manager and other concerned executives at the administration office
of the company. The primary data is collected through interaction and discussion
with the officials and the staff of the company.
• Secondary Data collection method: All the secondary data used for study has been
extracted from the previous annual reports and the other published materials of
the company.
Sources of data:
The nature of data collected was secondary.
1. Annual reports.
2. Files and records of the company.
Data Analysis: Data Analysis is by implementing various tools like Ratio Analysis. Trend
Analysis techniques are used.

METHODOLOGY:-
The data used for the analysis and interpretation is from annual reports of the
company i.e., secondary forms of data. Ratio analysis is used for calculation purpose.
The project is presented using tables, graphs and with their interpretations. No
survey is undertaken or observation study is conducted by evaluating fixed assets
performance of the company.
SOURCES OF DATA:-
The data needed for this project is collected from the following sources:
1. The data is adopted purely from secondary sources
2. The theoretical contents are gathered purely from eminent text books and
references.
3.The financial data and information is gathered from annual reports of the
company.

Chapter-3
INDUSTRY PROFILE
&
COMPANY PROFILE

INDUSTRY PROFILE
CHEMICAL INDUSTRY OVERVIEW
India ranks twelth in the world for production of chemicals by volume. India’s
chemical industry contributes about 3% to the nation’s Gross Domestic Product (GDP). The
industry has a turnover of about US$ 30 billion, and accounts for about 14% in the general
Index of Industrial Production (IIP) and 17.6% in the manufacturing sector.
It also accounts for about 13-14% of total exports and 8-9% of total imports of the
country. The industry is mostly concentrated in western India, which accounts for 45-50%of
the total industry size .

ORGANIZATION STUCTURE
This company is a family owned concern, the other name given to it is “CLOSELY
HELD COMPANY”. The company is headed by the chairman, the managing director’s
plans the strategic issues, the executive director gets them completed through the vice
presidents. The vice-presidents have their respective departments. Executive director has
over all executive authority along with senior vice-president (finance). Reporting them are
different officials under the department.
The Chemical Industry in India which generates almost 13% of country's total export
is growing annually at a growth rate anywhere between 10% and 12%. Now we can discuss
the growth rates and other important things of Chemical Industry in India sector wise.
The Chemical Industry in India is based on the idea of Diversification. The industry is a
multi product and multi-faceted one. Depending on these product categories we can divide
the Chemical Industry in India in following sectors:-
Inorganic Chemicals - In this sector the growth rate is near about 9% and the chemicals
produced in this sector are mainly used in alkalis, fertilizers, detergents and glass.
Drugs and Pharmaceuticals- This sector of Indian Chemical Industry holds the 4th place
in the world in terms of volume. Export led growth is the characteristics of this sector.
Plastics and Petrochemicals-This sector of the Indian Chemical Industry is the fastest
growing one among all the sectors. Reliance Petrochemical is the company which
dominates this sector.
Pesticides, Fertilizers and other Agro-chemical products- This sector of the Chemical
Industry in India account for almost 2.5% of the global market. It possesses an impressive
domestic market growth rate of 10%.

Specialty and Fine Chemicals like Dyes and Paints- This sector is characterized by high
level of fragmentation. The sector is involved in production of paints, dyes, inks, polymers
and a lot of other chemical products. The sector has a growth rate of near about 12%.
(a) LIST OF COMPANIES
• Sree Rayalaseema Alkalies and Allied Chemicals Ltd.

• Sree Rayalaseema Hi-Strength Hypo Ltd.
• Sree Rayalaseema Dutch Kassenbow Ltd.
• Sree Rayalaseema Galaxy Projects Ltd.
• Sree Rayalaseema Agrochemicals (P) Ltd.
GROUP PROFILE OVERVIEW
The companies head the TGV GROUP companies with an asset base of750crores.
SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LTD
SRAACL was incorporated on 24 Jan 1981 in the state of A.P & certificate of
commencement of business was obtained on 8 July 1981.SRAACL was pioneering venture
with bipolar membranes cell technology in an Indian Alkali industry. SRAACL, which is
engaged in manufacture of caustic soda, chlorine & hydrochloric acid, is an existing profit
making &dividend paying Company.
SREE RAYALASEEMA HI-STRENGTH HYPO LTD

SRHHL formerly known as Itachi Hi-strength Hypo Ltd was incorporated on 24

Oct 1993 in the state of A.p and certificate of commencement of business was Obtain on 30
Oct 1986. The name change has taken place in the year 1993 and bits members at their
annual general meeting on 30 Dec 1993 have approved the same. SRHHL is engaged with
bleaching powder, sulphuric acid etc.
SREE MARUTHI MARINE INDUSTRIES LTD
SMMIL formerly as maruthi crystal salt company ltd was incorporated in 1973 in
the state of TamilNadu. SMMIL is a joint venture project with TIDCO Chennai Stock
exchange. It was a loss making company, which was taken over TGV in May 1990. And it
was turned successful profits.
TGV PROJECTS AND INVESTMENTS LTD
VVPIL formerly had known as VV Tran investments ltd was incorporated on 12

may 1986 in the state of A.P VVPIL is engaged in the manufacture of Chlorinated paraffin &
hydrochloric acid. VVPIL is also engaged in the hire purchase and investments. A 3-star
hotel with a commercial complex of 200 shops located in the heart of the Kurnool is a unit
of the company.
BRILLIANT INDUSTRIES LTD
Brilliant industries formerly known as brilliant investments ltd was incorporated

on 1 Feb. 1998 in the state of A.P BIL is also engaged in the investments in bottling and
sale of hydrogen gas. BIL is engaged in investments, hire purchase, leasing etc. BIL is
category merchant banker with branch offices at Bangalore, Mumbai, Chennai and Delhi.
The bulk drug project of the company is under implementation.
SREE RAYALASEEMA DUTCH KASENBOW LTD
SRDKL formerly known as sree bleaching chemicals ltd was incorporated on 3

Sep 1990 in the state of A.P. SRDKL is engaged in the manufacture of stable Bleaching
powder at its plant located at Gondiparla, Kurnool.
SREE RAYALASEEMA GALAXY PROJECTS LTD

SRGPL is a SSI-Exporter engaged in the manufacture of industrial grade non-

ferric alum, commonly known as aluminum sulphate. SRGPL is in its purest form and
comes in fine white powder, and crystalline forms. The company’s manufacturing capacity
stands at an impressive of 12000 TPA
SREE RAYALASEEMA AGRO-CHEMICALS LTD
The company helps farmers to get better yields by manufacturing agro chemicals
of proven quality. It is efficiency and the central tobacco research institute by the Gujarat
Agricultural University has certified potency.
THE MOURYA-INN
The conglomerate has made a successful floral into the hospitality sector, with a
centrally air-conditioned 3- star hotel. The mourya-inn at Kurnool with 8 grand suites 92
well appointed rooms and conference hall and banquet hall.
TGV INFOSYSTEM LTD
TGV info system ltd the division of the illustrated of TGV conglomerate is a
reflection of the change embracing attitude. TGV info systems ltd has a clear objective of
providing exhaustive and comprehensive software solutions and services.
BRILLIANT SECURITIES LTD
BSL is a member of NSE and Bangalore stock exchange has made a public issue
of ``250 lakhs in March 1996.

COMPANY PROFILE:-
Sree Rayalseema Alkalies and Allied Chemicals Ltd is an India-based company.

The Company operates through three divisions. Under the Chemicals Division, caustic
soda, potassium hydroxide, chlorine and hydrochloric acid are manufactured. During the
fiscal year ended March 31, 2010 (fiscal 2010), the caustic unit produced 99,452 metric
tons of caustic soda. The Oils and Fats Division produces castor oil derivatives, fatty acids,
soap noodles, glycerin and bathing/toilet soap. The Castor oil plant yielded 10,231 metric
tons of oil processing during fiscal 2010. Under the Power Division, the power plant at
Bellary is being operated with furnace oil as feed stock and the Company delivers its
generation to Karnataka Power Transmission Corporation Limited (KPTCL) under a power
purchase agreement. The Power plant billed 182.8 million kilowatt hours of electricity
(including deemed generation) to KPTCL during fiscal 2010
SRAAC LTD .Kurnool, Andhra Pradesh, India Chemicals Products - Manufacturer,

Export / Import, Pvt. Ltd.
Firm Since 1985It gives us pleasure to write to you from one of the leading
producers of Castor Derivatives in India. We are the Flagship Company of US$ 150 Million
TGV Group, a conglomerate of diversified activities with major interests in Chlor-Alkali
products, Fatty Acids besides Castor Derivatives. We have also diversified into Information
Technology and FMCG business recently.
We are an ISO 9001-2000, ISO 14001 and 18001 Certified Company. We have to our credit
National Awards for best R&D and many more awards for environmental friendliness and
social awareness. We have been supplying the Castor Derivatives to International Markets
since the inception in 1996.Today, we have got a very articulated Marketing Network and
operational system to satisfy the International Standards of Quality and practices. To
further strengthen our market presence towards attaining market leadership, we felt it
appropriate to approach a World Class company like yours for Castor Derivatives.

Our quality CASTOR DERIVATIVES PRODUCTS includes:
• Refined Castor Oil (BSS Grade).

• Hydrogenated Castor Oil (Flakes / Powder).
• 12 HydroxyStearic Acids (Flakes).
• Ricinoleic Acid (Liquid).
.
Products:
Manufacturers, Exporters and Distributors of chemicals are as follows. * Caustic Potash
Flakes (KOH - 90%) * Caustic Soda Flakes (NaOH - 48% / 98%) * Refined Glycerine * Stearic
Acid (Various Grades) * Soap Noodles (80:20 , 90:10) * Hydrochloric Acid (HCL) * Liquid
Chlorine * Barium Sulphate (Ba2SO4) * Sodium Sulphate (Na2SO4) * Sodium Hypochlorite
* Potassium Carbonate (K2CO3) * Toilet Soaps Our Group Of companies manufacture *
Calcium Hypochlorite * Mono Chloro Acetic Acid * Alum * Bleaching Powder * Sulphuric
Acid.

Awards / Recognition
• Best Entrepreneur of the year 1989 on 16.06.90 by Hyderabad Management

Association, Hyderabad for his individual caliber and industrial reforms.
• Vijaya Shree Award on 5.8.90 by Indian International Friendship Society, New
Delhi for enriching Human Life and outstanding attainments.
• Udyog Shree Award on 29.8.90 by Department of Labour, New Delhi for his
Excellent Social Service.
• Rajiv Ratna – Excellent Chief Executive on 28.9.91 by A.P.Central Public Sector
Employees Federation, Hyderabad for excellence in Indian Industry.
• The Amancharla Ramamurthy Silver Rolling Trophy on 1.10.91 by the Federation
of A.P .Chambers of Commerce and Industry, Hyderabad for best all round
performance in Industrial activity.
• CITD Gold Medal and Trophy on 13.10.91 by Council for Industrial Trade &
Development, Hyderabad for industrial promotion during the year 1990-91.

Sree Rayalaseema Alkalies and Allied

Chemicals Ltd. is the flagship company of the
TGV Group It is the leading producer of Chlor-
Alkali products and also manufactures Castor
Derivatives and Fatty Acids. Besides operating
a commercial Power Project of 28MW.
The company uses only state-of-the-art

equipment and up-to- the minute
technologies including the Costruzioni
Meccaniche Bernardini (CMB) technology
from Italy for its fatty acids division.
The captive power plant used, assures

uninterrupted and cost-effective power
supply to the manufacturing plant.Its
voluminous plants endow the company
withthe capacity to meet its market demand
on time and within costs.

LIST OF COMPANIES
MANUFACTURING & EXPORTS
1. SREE RAYALASEEMA ALKALIES AND ALLIED CHEMICALS LTD
Sree Rayalaseema Alkalies and Allied Chemicals Ltd. is the flagship company of the TGV
Group It is the leading producer of Chlor-Alkali products and also manufactures Castor
Derivatives and Fatty Acids.
2.SREE RAYALASEEMA HI-STRENGTH HYPO LTD
Sree Rayalaseema Hi-Strength Hypo Ltd, the torchbearer of the TGV Group is the only
Indian manufacturer of Calcium Hypochlorite. Sree Rayalaseema Hi-Strength Hypo is one
of the very few in the world.
3. SREE RAYALASEEMA GALAXY PROJECTS PVT. LTD
Shree Rayalaseema Galaxy Projects Private Limited., An ISO 9001 : 2000 Certified SSI
unit engaged in the manufacture of Industrial grade Non-Ferric Aluminium Sulphate
4. SREE MARUTHI MARINE INDUSTRIES LTD

The company, a joint venture with the Tamilnadu Industrial Development Corporation
Ltd.(TIDCO), is the first of its kind to undertake integrated salt works i.e. production of Salt
(plus other by-products),
5. TGV SECURITIES
The Farm was started with the objective of undertaking broadbased activities in the
field of securities trading and financial services.
POWER & INFRASTRUCTURE:
6. TGV PROJECTS & INVESTMENTS PVT LTD
TGV Projects and Investments Pvt. Ltd is a leading manufacturer of Chlorinated Paraffin
and a hospitality sector participant, with The Mourya Inn, a 3-star hotel at Kurnool.
PHARMA & HEALTH CARE
1. BRILLIANT BIO PHARMA LTD
Brilliant Bio Pharma is promoted by Sri T.G. Venkatesh, who has vast experience in
managing effectively the Industries as a leader in production of caustic soda in the country.

2. TGV PHARMA PVT. LTD
TGV Pharma is the key producer of non-mercury Sodium Methoxide and Sodium
Hydride.With a team of 35 years of experience, TGV Parma’s strength lies in the example
supply of Sodium dioxide and Hydrogen gas.
1. GOWRI GOPAL HOSPITALS PVT LTD
Established in 1991, Gowri Gopal Hospital has served with dedication and has earned
the reputation of being the complete family hospital. The hospital has graduated from a
secondary hospital into a state-of-the-art multispecialty hospital.
HOSPITALITY & EDUCATION:
1. THE MOURYA INN
Mourya inn, a centrally air-conditioned three star hotel located in the heart of the city
Kurnool, has 8 grand suites, 8 Deluxe, 92 well-appointed rooms, 2 restaurants.

2. LAKSHMI VENKATESH TG COLLEGE OF PHYSIOTHERAPHY
LVTG College of Physiotherapy was started in the academic year 1998-99. Under the
able, excellent and experienced management of Gowri Gopal Educational Society,Kurnol.
3. LAKSHMI VENKATESH TG COLLEGE OF NURSING
LVTG College of Nursing was started in the academic year 2003-04. Under the
able, excellent and experienced management of T.G. Lakshmi Venkates Educational
Academy, Kurnool.
VALUES
Openness and Transparency
Company foster honesty and frankness in all their dealings and be clearly discernible to
everybody we deal with.

Chapter-4
DATA ANALYSIS
&INTERPRETATION

DATA ANALYSIS
COMPONENTIAL ANALYSIS
The componential analysis of the fixed assets of TGV SRAAC includes net
blocks, capital work in progress and construction stores and advances.
The data relating to different components of fixed assets of the for 5 years commencing
from 2014 to 2018 are set out in the following table analysis:
GROWTH IN FIXED ASSETS
year Net Block Capital Total

2013-14 431.03 93.71 524.74
2014-15 444.46 97.65 542.11
2015-16 660.36 101.79 762.15
2016-17 698.40 106.15 804.55
2017-18 668.74 91.86 760.60
Growth in Fixed Assets

1000
800
600 Net Block

400 Share Capital
200 Total
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:
From the above table of Growth in Fixed Assets, for the year 2013-14 the ratio was 524.74
and in the year 2014-15 there is an increase in ratio at 542.11 & in the next year 2015-16
again there is an increase in ratio at762.15 and for the later year 2016-17 there we see a
gradual increase at 804.55 and for the last year 2017-18 there is a slight decrease in the
ratio at 760.60.

TREND ANALYSIS:
In financial analysis the direction of change over a period of years is of initial

importance. Time series and trend analysis of ratio indicates the direction of changes. This
kind of analysis is particularly applicable to the profit and loss account. It is advisable that
trends of sales and net income may be studied in the light of two factors. The general price
level that might be found in practice is that a number of firms would be shown at persistent
growth over period of years but to get a true trend of growth, the sales figure should be
adjusted by a suitable index of general prices.
In other words, sales figures should be deflated for raising price level. Another
method of securing trend of growth and the one which can be used instead of adjusted sales
figure or as to check on them is to tabulate and lot the output of physical volume of the sales
expressed in suitable units of measure. The general price level is not considered while
analyzing trend in growth as it can mislead management. They may become unduly
optimistic in period of prosperity and pessimistic in dual periods.
For trend analysis the use of index numbers is generally advocated, the procedure
followed is to assign the numbers to items of base years and at calculated percentage change
in each item of other years in relation to base year. This procedure may be called as “Fixed
percentage method”.
This margin determines the direction of upward or downward and involves the
implementation of the percentage relationship of each statement item means on the same in
the base year. Generally the first year is taken as the base year. The figures of the base year
are taken as 100 and trend ratio for the other years is calculated on the basis of first year.
Here an attempt is made to know the growth rate in total investment and fixed assets of the
TGV SRAAC for 5 years i.e. 2014-2018.

GROWTH IN TOTAL INVESTMENT
year Investment Trend percentage
2013-14 1.71 100.00

2014-15 1.71 100.00
2015-16 1.71 100.00
2016-17 8.64 505.26
2017-18 14.04 821.05
GRAPH SHOWING GROWTH IN TOTAL INVESTMENT
Investment
2013-14
2014-15
2015-16
2016-17
2017-18
INTERPRETATION
From the above table of Growth in Total Investment the Trend

Percentage for the year 2014-16 is 100.00 and again in the year 2016-17 there
is an increase in the Trend Percentage up to 505.26 and in the last year 2017-
18 the Trend Percentage has a gradual increase at 821.05.

GROWTH RATE IN FIXED ASSETS
year Fixed assets Trend percentage
2013-14 431.03 100.00

2014-15 444.46 103.11
2015-16 660.36 153.20
2016-17 698.40 162.03
2017-18 668.74 155.14
GRAPH SHOWING GROWTH RATE IN FIXED ASSETS
700
600
500
400
300
200
100
0
2013-14
2014-15
2015-16
2016-17
2017-18
Fixed Assets TrendPercentages
INTERPRETATION
From the above table of Growth rate in Fixed Assets, for the year 2013-14 the
Trend Percentage is 100.00 & in the next year 2014-15 there is an increase at
103.11 and in the upcoming year 2015-16 there is again an increase in Trend
Percentage up to 153.20 and in the next year 2016-17 there is an increase level of
Trend Percentage at 162.03 and at the last year 2017-18 there is decrease in the
Trend Percentage at 155.14.

RATIO ANALYSIS
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the

indicated Quotient of two mathematical expressions and Ratios look at the relationship
between individual values and relate them to how a company has performed in the past, and
might perform in the future.
The absolute accounting figure reported in financial statement does not provide a
meaningful understanding of the performance and financial position of the firm. Ratios help
us to summarize large quantities of financial data and to make qualitative judgment about
firm’s financial performance.
1. FIXED ASSETS TO NET WORTH RATIO

This ratio establishes the relationship between fixed assets and net worth.
Net worth = share capital + reserves and surplus + retained earnings
Fixed assets to net worth ratio = Fixed assets / Net worth
The ratio of “Fixed assets” to “Net worth” indicates the extent to which
shareholders’ funds are sunk into the fixed assets. Generally, shareholders should finance
for Purchasing fixed assets and equity including the reserves and surpluses and retained
earnings. If the ratio is less than 100% it implies that owner’s funds are more than total
fixed assets and the share holder provide a part of working capital.
When the ratio is more than 100% it implies that owner’s funds are not sufficient to
finance the fixed assets and financier has to depend upon outsiders to finance the fixed
assets. There is no “Rule of Thumb” to interpret but 60%-65% is considered to be
satisfactory ratio in case of industrial undertaking.
2. FIXED ASSET RATIO
This ratio explains whether the firm has raised adequate long term fund to meet its fixed
assets required and is calculated as under:
= Fixed assets (after depreciation) / Capital Employed

This ratio gives an idea as to what part of the capital employed has
been used in purchasing the fixed assets for the concern. If the ratio is less than 1 it is good
for the concern.
3. FIXED ASSETS AS A PERCENTAGE TO CURRENT LIABILITIES:
The ratio measures the relationship between fixed assets and the funded debts and is
very useful to the long term erection. The ratio can be calculated as shown below
Fixed assets as a percent of current liabilities
= Fixed Assets / Current Liabilities
4.TOTAL ASSETS TURN OVER RATIO:

The ratio is calculated by dividing the net sales by the value of total assets that is
(net sales/total investment) or (sales/total investment).A high ratio is an indicator of over
trading of total assets while a low ratio reveals idle capacity. The traditional standard for the
ratio is two times.
= Net sales / Total Assets
5.FIXED ASSETS TURNOVER RATIO:

The ratio expresses the no. of times fixed assets are being turned over in a stated
period. It is calculated under.
= Sales / Net fixed assets (after depreciation)
This ratio shows how well the fixed assets are being used in business. The ratio is
important in case of manufacturing concern because sales are produced not only by use of
current assets but also by amount invested in fixed assets the higher ratio, the better is the
performance. On the other hand, a low ratio indicates that fixed assets are not being
effectively utilized.

6. RETURN ON TOTAL ASSETS:
= Profit after tax / Total assets
This ratio is calculated to measure the profit after tax against invested in total assets
to ascertain whether assets are being utilized properly or not.
The higher the ratio the better it is for the concern.
FIXED ASSETS TO NET WORTH RATIO:
The ratio indicates the extent to where the shareholders funds are struck in the fixed
assets. The formula to compute fixed assets to net worth is calculated as follows:
Fixed assets (after depreciation) / Net worth
NET WORTH = share capital + reserves and surplus + retained earnings-net

loss.
If the ratio is less than 100% it implies that owner’s funds are more than the fixed
assets and the shareholders and vice versa provide a part of working capital.

Fixed assets to net worth ratio = Net fixed Asset / Net Worth
FIXED ASSETS TO NET WORTH RATIO
year Net Fixed Assets Net Worth Ratio
2013-14 431.03 274.89 1.56

2014-15 444.46 297.04 1.49
2015-16 660.36 337.56 1.95
2016-17 698.40 365.63 1.71
2017-18 668.74 382.35 1.74
Fixed Assets Net Worth Ratio:-

800
700
600
500
400 Fixed Assets
300
200 Net worth
100
Ratio
0
INTERPRETATION:-
This gives the use of net worth i.e share capital and reserves and surplus in fixed assets.
The ratio for the year 2013- 14 is 1.56 and increased to 1.95 in 2015-16 after shot fall in
2014-15, then from 2016-17 and 2017 -18 there is a gradual decrease in the ratio is 1.91
and 1.76 respectively.

FIXED ASSETS Ratio:-
Fixed Assets Ratio is calculated as follows:-
= Fixed assets {After depreciation} / Capital Employed
FIXED ASSETS RATIO:-
Year Fixed Assets Capital Employed Ratio
2013-14 431.03 668.38 0.64

2014-15 444.46 692.53 0.64
2015-16 660.36 969.86 0.68
2016-17 698.40 1069.40 0.65
2017-18 668.70 1062.94 0.62
FIXED ASSETS RATIO
1200
1000
800
Fixed Assets
600
CapitalEmployed
400
Ratio
200
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
For this fixed Assets ratio, The ratio for the year 2013-15 was 0.64 but in the year 2015-16
there is a slight increase in the ratio 0.68 and in the year 2016-17 there is the decrease in
the ratio at 0.65 and again there is a slight decrease in the ratio at 0.62 in the year 2017-18
decrease in the ratio at 0.62 in the year 2017 -18

FIXED ASSETS AS A PERCENTAGE TO CURRENT LIABILITIES
Fixed assets as a percentage to current Liabilities is calculated as follows:-
= Fixed assets / Current Liabilities
FIXED ASSETS AS A PERCENTAGE TO CURRENT LIABILITIES RATIO
Year Fixed Assets Current liabilities Ratio
2013-14 431.03 260.66 1.65

2014-15 444.46 247.88 1.79
2015-16 660.36 249.29 2.64
2016-17 698.40 316.71 2.20
2017-18 668.70 338.25 1.97
FIXED ASSETS AS A PERCENTAGE TO CURRENT LIABILITIES RATIO
800
700
600
500
Fixed Assets
400
300 C.Laibilities
200 Ratio%
100
0
INTERPRETATION:-
For this Fixed Assets as a Percentage to the Current Liabilities, the ratio for the year 2013-
14 is 1.65 and there is a slight increase in the ratio at 1.79 in the 2014-15 but there is a
gradual increase at 2.64 in the year 2015-16. In the year 2016-17 there is decrease in the
ratio at 1.97 in the year 2017-18.

TOTAL ASSETS TURN OVER RATIO
The total assets turnover ratio can be calculated by the formula as given under
Total assets ratio = Sales / Total assets [ after depreciation]
TOTAL ASSETS TURN OVER RATIO
Year Sales Investment ratio

2013-14 769.03 274.89 2.79
2014-15 776.66 294.04 2.61
2015-16 816.40 338.56 2.41
2016-17 907.41 365.63 2.48
2017-18 1046.20 382.35 2.73
GRAPH SHOWING TOTAL ASSETS TURNOVER RATI0
1200
1000
800
Net Sales
600
Total Assets
400 Ratio
200
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
For the total assets turnover ratio the ratio for the year 2013-14 is 2.79 and there is a
decrease of 2.61 in the year 2014-15 and again there is a slight decrease of 2.41 in the year
2015-16. But there is a slight increase in the ratio at 2.48 in the year 2016-17 and again
there is increase of ratio at 2.73 in the year 2017-18.

FIXED ASSETS TURN OVER RATIO:-
Fixed assets turnover ratio is calculated as follows:-
= Net Sales / Net Fixed Assets
FIXED ASSETS TURN OVER RATIO
year Net Sales Net Fixed Assets Ratio
2013-14 769.03 431.03 1.78

2014-15 776.66 444.46 1.74
2015-16 816.40 660.36 1.23
2016-17 907.41 698.40 1.29
2017-18 1046.20 668.74 1.56
FIXED ASSETS TURN OVER RATIO
1200
1000
800
Net Sales
600 Net Fixed Assets
400 Ratio
200
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
For this fixed Asset turnover ratio, the ratio for the year 2013-14 was 1.78. For the 2014-15
there is a slight decrease in the year at 1.74. In the year 2015-16 again there is a decrease
in the ratio at 1.23. But in the 2016-17 there is a slight increase in the ratio at 1. 29. Finally
in the year 2017-18 there is a sudden increase in the ratio at 1.56.

RETURN ON TOTAL ASSETS:
This ratio is calculated to measure the profit after tax against invested in total assets
to ascertain whether assets are being utilized properly or not.
= Profit after tax / Total assets *100
RETURN ON TOTAL ASSETS :-
year Profit After Tax Total Assets Ratio
2013-14 4.7 274.89 1.70

2014-15 22.15 297.04 7.45
2015-16 24.42 337.56 7.23
2016-17 16.58 365.63 4.53
2017-18 29.61 382.35 7.74
GRAPH SHOWING RETURN ON TOTAL ASSETS
450
400
350
300
250 Profit After Tax
200 Total Assets
150 Ratio
100
50
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
For this Return on Total Assets ratio, In the year 2013-14 the ratio is 1.70. Then in the year
2014-15 there is a sudden increase 27.45. In the year 2015-16 there is a gradual decrease
to 7.23 . Later in the year 2016-17 there is a sudden decrease 4.5 3. In the last year 2017-
18 the ratio is again increased to 7.74.

TOTAL INVESTMENT TURN OVER RATIO
The total investment turnover ratio can be calculated by the formula as given under
Total investment ratio = Sales / Total investment
TOTAL INVESTMENT TURN OVER RATIO
year Sales Investment Ratio

2013-14 769.03 1.71 449.72
2014-15 776.66 1.71 454.18
2015-16 816.40 1.71 477.42
2016-17 907.41 8.64 105.02
2017-18 1046.20 14.04 74.51
GRAPH SHOWING TOTAL INVESTMENT TURNOVER RATI0
1200
1000
800
Net Sales
600
Total Investments
400
Ratio
200
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
From the above table in the year 2013-14 the ratio is 449.72. In the year 2014-15 there is
a slight increase 454.18. But in the year 2015-16 there is again a good increase at 477.42
and in the year 2016-17 there is a decrease of ratio at 105. 02 and again there is and
decrease of ratio at 74.5 one in the year 2017-18.

GROSS CAPITAL EMPLOYED RATIO:
The Gross Capital Employed ratio can be calculated by the formula as given below
Gross Capital Employed = Net Fixed Assets + Current Assets
GROSS CAPITAL EMPLOYED RATIO
year Net Fixed Assets Current Assets Ratio
2013-14 431.03 237.35 668.38

2014-15 444.46 248.07 692.53
2015-16 660.36 309.50 969.86
2016-17 698.40 371.00 1069.40
2017-18 668.74 394.20 1062.94
GRAPH SHOWING GROSS CAPITAL EMPLOYED RATIO
1200
1000
800
Fixed Assets
600
Current Assets
400 Capital Employed
200
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
From the above table, In the year 2013-14 the value of the ratio is 668.38. In the year
2014-15 there is a slight increase at 692.53. Letter in the year 2015-16 there is a
gradual increase in the ratio at 969. 86. In the year 2016-17 there is increase in the ratio up
to 106 9.40. In the last year of 2017-18 there is a decrease in the ratio up to 1062.94.

FIXED ASSETS AS A PERCENTAGE TO TOTAL ASSETS
Fixed assets as a percentage to total assets is calculated as follows:-
= Fixed assets / Total Assets
FIXED ASSETS AS A PERCENTAGE TO TOTAL ASSETS RATIO
Year Net Fixed Assets Total Assets Ratio
2013-14 431.03 274.89 1.56

2014-15 444.46 297.04 1.49
2015-16 660.36 337.56 1.95
2016-17 698.40 365.63 1.91
2017-18 668.74 382.35 1.74
FIXED ASSETS AS A PERCENTAGE TO TOTAL ASSETS RATIO
800
700
600
500
Fixed Assets
400
Total Assets
300
200 Total Assets%
100
0
INTERPRETATION:-
From the given table in the year 2013-14 the ratio is 1.56. In the next year 2014-15 the
ratio is decreased up to 1.49. In the later year 2015-16 there exist an increase in the ratio
at 1.95. In the year 2016-17 the ratio decreases to 1.91. In the year 2017-18 the value of
ratio is again decreases up to 1.74.

RETURN ON GROSS EMPLOYED
The return on gross employed can calculate as under:
Return on Gross Employed = Profit after tax / Capital Employed *

100
RETURN ON GROSS EMPLOYED
year Profit after tax Capital Employed Ratio

2013-14 4.7 668.38 0.70
2014-15 22.15 692.53 3.19
2015-16 24.42 969.86 2.51
2016-17 16.58 1069.40 1.55
2017-18 29.61 1062.94 2.78
GRAPH SHOWING RETURN ON GROSS EMPLOYED
1200
1000
800
Profit after Tax
600
Capital Employed
400 Ratio
200
0
2013-14 2014-15 2015-16 2016-17 2017-18
INTERPRETATION:-
From the given table in the year 2013-14 the ratio is 0.70. But in the year 2014-15 the
ratio is increased up to 3.19. In the next year 2015-16 the values decreased up to 2.51. But
again in the year 2016-17 the value of the ratio decreases up to 1.55. In the last year 2017-
18 the value of ratio increases up to 2.78.

VALUATION OF FIXED ASSETS
Article II.
1) Historical cost method in the valuation of fixed assets.
2) The fixed assets do not include assets acquired on sale-cum-lease basis from various
Financial Institutions whereon the lease rent paid for the year is charged to revenue.
3) Plant and Machinery includes the value of tractors units which were transferred and vested
with the Corporation under the transfer scheme. The gross value and depreciation thereon
are not segregated in the absence of break up details under the transfer scheme. The value
thereof, however, is insignificant.
4) Investments are intended for long term and are carried at cost. Income on investment is
accounted on accrual basis.
5) Capital expenditure on assets not owned by the company is reflected as a distinct items in
capital WIP till the period of completion and therefore in the Fixed assets.
6) The Company evaluates the impairment of losses on the fixed assets whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. If
such assets are considered to be impaired the impairment loss is then recognized for the
amount by which the carrying amount of the assets exceeds its recoverable amount, which
is the higher of an asset's net selling price and value in use. For the purpose of assessing
impairment, assets are grouped at the smallest level for which, there are separately
identifiable cash flows.
7) Fixed assets is adjusted in their carrying cost in respect of foreign currency transactions
entered before 1-4-2008 and that related to current assets is recognized as
revenue/expenditure during the year.
8) In case of commissioned assets, where final settlement of bills with contractors is yet to be
effected, capitalization is done on provisional basis subject to necessary adjustment in the
year of final settlement.

CALCULATION OF DEPRECIATION
Depreciation methods followed by TGV SRAAC.ltd is as follows
1. Depreciation is charged on straight-line method as per rates notified by the Government of

India except where actual cost does not exceed 5000 in which case it is charged 100% in
the same year. In respect of assets, where rate is not laid down, depreciation is provided on
straight-line method under the schedule XIV of the Companies Act 1956.
2. Depreciation is provided on pro-rata basis in the year in which the asset becomes available
for use.
Where the cost of depreciable assets has undergone a change during the year due to
increase/decrease in long term liabilities on account of exchange fluctuation, price
adjustment, change in duties or similar factors, the unamortized balance of such asset is
depreciated prospectively over residual life determined on the basis of the rate of
depreciation.

Chapter-5
FINDINGS,SUGGESTION &
CONCLUSIONS

FINDINGS
• Regarding to the fixed assets to net worth ratio shows a continuous increase in net worth
and fixed assets.
• The total investment ratio it is observed that sales had an increase from 2014-18
• The fixed Asset turnover ratio, sales had an increased.
• The Return on total assets ratio in the year 2014-18 was satisfactory
• From the above study it can be said that the TGV SRAAC overall financial position on
fixed assets is satisfactory.

SUGGESTIONS
• It is suggested to improve the position of the company by effective utilization of fixed

assets.
• Growth rate in fixed assets can be increase by employing more investment.
• Total investment to sales can be improved.

CONCLUSION
After analyzing the financial position of TGV SRAAC and evaluating its fixed
assets management, TGV SRAAC trend analysis and ratio analysis, it can be conclude that
fixed assets management is satisfactory and its fixed assets to net worth and return on total
assets ratios are showing an increasing trend. So, the company’s overall financial position
on fixed assets is satisfactory.

Chapter-6
Biblography
Profit & Loss A/c &
Balance Sheets

BIBLOGRAPHY:-
Books:-
S.No Title Author Publisher Edition
1. Financial I.M.Pandey Vikas 8th

Management
2. Financial Dr.S.N.Maheswari Vikas 1st

Management
3. Financial M.Y.Khan Mc.Graw Hill 2nd

Management
WEBSITE :
WWW.TGVGROUP.Com
www.moneycontrol.com

TGV Sraac Ltd Previous Years »

Standalone Profit & Loss
------------------- in Rs. Cr. -------------------
account
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 1,072.08 1,004.97 921.71 876.44 873.31
Excise Duty 25.88 97.56 105.31 99.78 104.29
Net Sales 1,046.20 907.41 816.40 776.66 769.02
Other Income -14.20 3.30 -0.45 -0.14 -19.06
Stock Adjustments -2.08 -3.38 10.82 -1.64 2.12
Total Income 1,029.92 907.33 826.77 774.88 752.08
Expenditure
Raw Materials 309.52 344.51 328.94 319.17 311.44
Power & Fuel Cost 393.28 319.18 284.02 264.06 276.80
Employee Cost 41.50 38.00 33.49 31.18 31.61
Selling and Admin Expenses 0.13 0.26 0.21 0.00 0.00
Miscellaneous Expenses 104.79 71.74 73.69 59.06 58.18
Total Expenses 849.22 773.69 720.35 673.47 678.03
Operating Profit 194.90 130.34 106.87 101.55 93.11

PBDIT 180.70 133.64 106.42 101.41 74.05
Interest 51.76 52.74 38.10 33.40 34.21
PBDT 128.94 80.90 68.32 68.01 39.84
Depreciation 76.56 46.60 35.47 36.43 35.53
Profit Before Tax 52.38 34.30 32.85 31.58 4.31
PBT (Post Extra-ord Items) 52.38 34.30 32.85 31.58 4.31
Tax 23.19 17.72 8.43 9.44 -0.45
Reported Net Profit 29.61 16.58 24.42 22.15 4.77
Total Value Addition 539.70 429.18 391.41 354.30 366.59
Preference Dividend 0.00 0.00 0.03 0.00 0.00
Corporate Dividend Tax 0.00 0.00 0.01 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 918.16 872.25 828.64 787.21 747.85
Earning Per Share (Rs) 3.23 1.90 2.94 2.81 0.64
Book Value (Rs) 41.64 39.53 37.36 35.33 33.71

TGV Sraac Ltd Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Sources Of Funds
Total Share Capital 91.86 106.15 101.79 97.65 93.71
Equity Share Capital 91.86 87.27 82.91 78.76 74.83
Share Application Money 0.00 1.95 9.08 0.00 3.94
Preference Share Capital 0.00 18.89 18.88 18.88 18.88
Reserves 290.49 257.53 226.69 199.39 177.24
Networth 382.35 365.63 337.56 297.04 274.89
Secured Loans 361.76 388.65 374.88 246.54 236.40
Unsecured Loans 7.50 7.12 9.84 26.70 24.46
Total Debt 369.26 395.77 384.72 273.24 260.86
Total Liabilities 751.61 761.40 722.28 570.28 535.75
Application Of Funds
Gross Block 1,366.83 1,299.68 1,210.17 953.94 900.77
Less: Accum. Depreciation 698.09 601.28 549.81 509.48 469.74
Net Block 668.74 698.40 660.36 444.46 431.03
Capital Work in Progress 13.54 0.07 0.00 123.92 126.32
Investments 14.04 8.64 1.71 1.71 1.71
Inventories 65.04 65.76 69.77 43.04 62.49
Sundry Debtors 106.20 75.36 64.98 52.74 52.49
Cash and Bank Balance 52.99 60.09 42.17 33.14 22.04
Total Current Assets 224.23 201.21 176.92 128.92 137.02
Loans and Advances 169.97 169.79 132.58 119.15 100.33
Total CA, Loans & Advances 394.20 371.00 309.50 248.07 237.35
Current Liabilities 338.25 316.29 242.00 240.67 259.16
Provisions 0.65 0.42 7.29 7.21 1.50
Total CL & Provisions 338.90 316.71 249.29 247.88 260.66
Net Current Assets 55.30 54.29 60.21 0.19 -23.31
Total Assets 751.62 761.40 722.28 570.28 535.75
Contingent Liabilities 142.54 110.34 100.25 102.30 70.02

Book Value (Rs) 41.64 39.53 37.36 35.33 33.71



Fixed Assets Management

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Fixed Assets Management

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A Study on

“FIXED ASSETS MANAGEMENT”

“TGV SRAAC LTD”

Rayalaseema University, Kurnool

For the Post Graduate Degree of

Master of Commerce (Professional)

College Admin No: 0991 Year: 2017

Exam Hall Ticket No: 17305111019 Year: 2019

Under the Guidance of

MR. A. UMA MAHESHWAR Rao, M.com

R.I.E PG COLLEGE, Kurnool

R.I.E.P.G COLLEGE, KURNOOL

(Affiliated to Rayalaseema University, Kurnool)

I the Undersigned M. Zelani hereby solemnly declare that the report

Name & Signature

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I am thankful to and fortunate enough to get constant encouragement, support

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CHAPTERS TITLE PAGE NO

V. FINDINGS , SUGGESTIONS &CONCLUSION

 Profit & loss A/c 57 - 60

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Valuation of fixed assets is important to have fair measure of profit or

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ACCOUNTING STANDARD FOR FIXED ASSETS (AS-10):-

FIXED ASSETS MANAGEMENT CYCLE:-

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FIXED ASSETS MANAGEMENT CYCLE:-

MANAGEMENT OF FIXED ASSETS:-

The process of Fixed Assets Management involves:

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Off-the-shelf software packages for fixed asset management are marketed to

Investment management is the professional management of various securities

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management is often used to refer to the investment management of collective investments,

The provision of 'investment management services' includes elements of financial

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NEED FOR THE STUDY:-

OBJECTIVES OF THE STUDY:-

The following are the objectives of the study

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SCOPE OF THE STUDY:-

1. The project is covered on fixed assets of TGV SRAAC.

The following are the limitations for the study

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DATA COLLECTION METHODS:-

The research has been done to know the financial methodology of

The nature of data collected was secondary.

2. Files and records of the company.

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CHEMICAL INDUSTRY OVERVIEW

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(a) LIST OF COMPANIES

• Sree Rayalaseema Alkalies and Allied Chemicals Ltd.

GROUP PROFILE OVERVIEW

SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LTD