A

Project Report
On
“A Study of Ratio Analysis with Reference To
“KANSAI NEROLAC PAINTS LTD”

Submitted To
Mumbai University, Mumbai.

In Partial Fulfilment of the Award of the Degree Of

Master of Management Studies

Submitted By
Miss. Pallavi Vijay Satardekar
(B.Com)

Under The Guidance Of

Miss. Masooma M. Pagarkar.
(BMS, MMS)

Through
The Principal,
Rajendra Mane College of Engineering and Technology,
Ambav, Devrukh.
Department of Master of Management Studies.

2019-2020
 Institute Recommendation

This is to certify that, Miss Pallavi Vijay Satardekar is a bonafied student admitted for
M.M.S in academic year 2019-20. She has completed summer project entitled “A study of
Ratio Analysis with reference to Kansai Nerolac Paints Ltd” under the guidance of Miss.
Pagarkar M. M satisfactorily and submitted to Mumbai University, Mumbai for the partial
fulfillment of the requirement of the award of the degree of Master of Management Studies.
The matter presented in the summer project has not been submitted earlier.

Place: -Ambav

Date: -

Dr. M. M. Bhagwat.
Principal
R.M.C.E.T., Ambav
 Guide Certificate

This is to certify that the summer project titled as “A Study of Ratio Analysis with reference
Kansai Nerolac Paints Ltd”which is being submitted here with for the award of the Degree
of Master of Management Studies.

I hereby declare that the project entitled “A Study of Ratio Analysis with reference to
Kansai Nerolac Paints Ltd” under the faculty of Management of Mumbai university,
Mumbai is the result of the original research work completed by Pallavi Vijay Satardekar.
Under my supervision and guidance and to the best of my knowledge and belief the work
embodied in this project has not formed earlier the basis for the award of any degree or
similar title of this or any other university or examining body.

Place: Ambav

Date:

Miss. Masooma M. Pagarkar.

Research Guide
Assistant Professor
R.M.C.E.T., Ambav
 Declaration

I, the undersigned Miss. Pallavi Vijay Satardekar Hereby declare that the project report
entitled “A Study of Ratio Analysis with reference Kansai Nerolac Paints Ltd” written and
submitted to Rajendra Mane College of Engineering and Technology, Ambav this year by
me under the guidance of lecturer Miss. Masooma M. Pagarkar is my original work. The
empirical findings and data collected by me are to the best of my knowledge. I have not
copied it from any report submitted to any of the university / institutions.

I understand that any copying is liable to be punishable by the authorities.

Place : Ambav

Date :

Miss.Pallavi Vijay Satardekar

(MMS/MBA 2019-2020)
 Acknowledgment

It is a profound privilege for me the record here my deep sense of gratitude to the "Kansai
Nerolac Paints Ltd, Lower Parel (Mumbai)", for allowing me to conduct an "A Study of
Ratio Analysis with referenece to Kansai Nerolac Paints Ltd, Lower Parel (Mumbai)” in this
company.

I would like to express my genuine thanks to all the other Director. I am also gratified to
without their guidance and co-operation this project effort would have been incomplete.

I would like to express my gratitude to Miss. Masooma Pagarkar Madam whose guidance,
support, and keen observation helped me to make this report in a logical order.

I offer my special thanks to Course Coordinator and all the other faculty members of
Rajendra Mane College for their guidance and support.

I am greatly indebted to my family members and friends without their support and
inspiration it would have been difficult to get this report to this stage.

Ms. Pallavi Vijay Satardekar

(MMS/MBA 2019-2020)
 Executive Summary

During the summer internship at, “Kansai Nerolac Paints Ltd, Lower Parel (Mumbai)”. I
have tried to cover all the sight at the time of work in organisation. This project is specially
designed to understand the subject matter of Financial Statement Analysis through various
ratios in the company. This project gives us information and report about company’s
Financial Position. Throughout the project the focus has been on presenting information and
comments in easy and intelligible manner. The purpose of the training was to have practical
experience of working in an organisation and to have exposure to the various management
practices in the field of Finance. This training has also given me an on the job experience of
Financial Management.
 Table of Contents
Sr. No. Particulars Page No.

1. Chapter No.1 – Introduction of the Study

1.1 Introduction
1.2 Research Problem
1.3 Statement of Research Problem
1.4 Objectives of the Study
1.5 Importance Of the Study
1.6 Scope of the Study
1.7 Research Methodology
1.8 Limitations of the Study
2. Chapter No.2 – Organizational Profile
2.1 Name of the Company
2.2 Location & Address of the Company
2.3 History of the Company
2.4 Financial Position of the Company
2.5 Awards
2.6 Product / Services of the Company
2.7 Future Plan of Company
2.8 Organizational chart
3. Chapter No.3 – Conceptual Framework
3.1 Introduction of the ratio analysis
3.2 Meaning
3.3 Definitions
3.4 Importance & significance
3.5 Classification of ratio
3.6 Nature of Ratio Analysis
3.7 Advantages and Uses of Ratio Analysis
3.8 Methods or Techniques of Ratio analysis
3.9 Limitations of ratio analysis
 3.10 Types of ratios

4. Chapter No.4 – Data Analysis & Interpretation

4.1 Introduction
4.2 Data Analysis & Interpretation
5. Chapter No.5– Findings, Suggestions & Conclusion
5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusion
6. Bibliography
7. Appendices
 List of Tables

Sr. No. Particulars Page No.

2.4

2.7

2.7.1

2.7.2

4.2.1

4.2.2

4.2.3

4.2.4

4.2.5

4.2.6

4.2.7

4.2.8

4.2.9
 List of Graphs

Sr. No. Particulars Page No.

4.2.1

4.2.2

4.2.3

4.2.4

4.2.5

4.2.6

4.2.7

4.2.8

4.2.9
 Chapter No. 1
Introduction to the Study

1.1 Introduction
1.2 Research Problem
1.3 Statement of Research Problem
1.4 Objectives of the Study
1.5 Importance Of the Study
1.6 Scope of the Study
1.7 Research Methodology
1.8 Limitations of the Study
 Chapter No. 1
Introduction to the Study
1.1 Introduction:-
Ratio analysis is a tool brought into play by individuals to carry out an analysis of
information in the financial statements of a company. These ratios are calculated from
current year figures and then compared to past years, other companies, the industry, and also
the company to assess the performance of the company. Besides, ratio analysis is used
predominantly by proponents of financial analysis.
As stated by Investopedia, there are numerous ratios that can be estimated from the financial
statements pertaining to a business company’s activity, performance, liquidity, and
financing. Some of the most common ratios include the debt-equity ratio, price-earnings
ratio, asset turnover, earnings per share, and working capital.
1.2 Research Problem:-
Firms may be using different formulas for the ratios. One such example is Current
Ratio, where some firms take into consideration all current liabilities but others ignore bank
overdraft from current liabilities while calculating current ratio.

1.3 Statement of Research Problem:-

Statement of Research Problem is “A Study of Ratio Analysis with reference to
Kansai Nerolac Paints Limited Lower Parel, Mumbai”

1.4 Objective of the Study:-

1. To evaluate the performance of the company by using ratios as a yardstick to measure the
efficiency of the company
2. To make comparisons between the ratios during different period
3. To assess the factors influencing the financial performance of the organization.

1.5 Importance of the Study:-

1.5.1 Importance to the Organization: -
Ratio analysis isan important technique of financial statement analysis. Accounting
ratios are for understanding the financial position of the company. Different users such as
investors, management.

1.5.2 Importance to the researcher:-

It helps the researcher to get practical knowledge about ratio analysis. The study helps
researcher to improve financial knowledge of the researcher. The study helps researcher to
know the organization structure and how to analyze the financial statements with the help of
ratio analysis study.
1.6 Scope of the Study:-
1.6:1 Geographic Scope: - The Study was conducted in Kansai Nerolac Paints, Lower
Parel Mumbai, State Maharashtra. The geographic study is Limited to Head Office of
Kansai Nerolac in Lower Parel, District Mumbai.

1.6.2 Conceptual Scope:-

Statement of Research Problem is “A Study of Ratio Analysis with reference to Kansai
Nerolac Paints Limited Lower Parel, Mumbai”

1.6.3 Analytical Scope: - Data has been analyzed with the help of MS-EXCEL and it
is analyzed with the help of Bar Chart, Table

1.6.4 Periodic Scope:-

“A study on Ratio Analysis” duration was 50 days in the Kansai Nerolac Paints Limited.

1.7 Research Methodology:-

Research Methodology is the specific procedures or techniques used to identify, select,
process, and analyze information about a topic. The research methodology process includes
collection of information and data for the purpose of making business decisions.

1.7.1 Type of Research:-

In this project the exploratory research has been used. Exploratory research is one which is
largely interprets and already available information and it lays particular emphasis on
analysis an interpretation of the existing and available information

1.7.2 Data Required:-

For this Project, Secondary data is required of previous three year balance sheet i.e. from 31-
3-2016 to 31-03-2019 and other information is collected through company’s annual report
and internet sources.
1.7.3 Data Sources:-
a) Secondary Data: -Secondary Data is already existing data. The various sources used to
collect data are Balance Sheet of Company, Annual Reports of the Company and website: -
www.nerolac.com

1.8 Limitation of the Study:-

a) False results if based on incorrect accounting data
b) No common standards
c) Ignore qualitative factors
d) Different meaning assigned to the same terms
 Chapter No. 2
Organizational Profile

2.1 Name of the Company

2.2 Location & Address of the Company
2.3 History of the Company
2.4 Financial Position of the Company
2.5 Achievements / Awards
2.6 Product / Services of the Company
2.7 Future Plan of the company
2.8 Organizational chart
 Chapter No. 2
Organizational Profile

2.1 Name of the Organization:-

Kansai Nerolac Paints Limited (Head Office)

2.2 Address of the Organisation :-

Ganpatrao Kadam Marg Near Shri Ram Mills,Lower Parel Mumbai, Maharashtra 400013.

2.3 History of the Organization:-

Kansai Nerolac Paints Limited (formerly known as Goodlass Nerolac Paints Ltd) is the
largest industrial paint and third largest decorative paint company of India based in Mumbai.
It is a subsidiary of Kansai Paint of Japan. As of 2015, it has the third largest market share
with 15.4% in the Indian paint industry. It is engaged in the industrial, automotive and
powder coating business. It develops and supplies paint systems used on the finishing lines
of electrical components, cycle, material handling equipment, bus bodies, containers and
furniture industries. Kansai Nerolac Paint has 6 paint manufacturing plants and about 6-7
contract manufactures. The Nerolac owned plants are at Jainpur (Uttar Pradhesh), Bawal
(Haryana), Lote (Chiplun), Hosur (Tamil Nadu), Sayakha (Gujarat) and Goindwal (Punjab).
The Mumbai –based company is the leader in the industrial paints segment with a market
share of over 40%. It is the third-largest player in the decorative paints segment with the
modest market share of 13%. Nearly 75% of the Indian paints industry consists of the
decorative segment
  1920 : It started as Gahagan Paints & Varnish Co. Ltd at Lower Parel in Mumbai

 1957: Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd.
Also, it went public in the same year and established itself as Goodlass Nerolac
Paints Ltd. .

 1976: Goodlass Nerolac Paints Ltd. became a part of Tata Forbes Group on
acquisition of a part of the foreign shareholdings by Forbes Gokak.

 1983 : Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical

collaboration agreement by Kansai Paint Co. Ltd., Japan and Nihon Tokushu Tokyo
Co. Ltd., Japan

 1999: Kansai Paint Co. Ltd. , Japan took over the entire stake of Tata Forbes group
and thus Goodlass Nerolac Paints became wholly owned subsidiary of Kansai Paint
Company Ltd.

 2006: On 11 July, Goodlass Paint Ltd. name has been changed to Kansai Nerolac
Paints Ltd.

2.4 Financial Position of the Company:-

Sr.No Particulars 31-03-2019 (In Crores)
1) Total Share Capital 53.89
2) Total Capital and Liabilities 4,305.92
3) Total Assets 4,305.92
4) Total Current Investments 2,162.17
5) Short Term Loans and Advances 4.58
6) Total Reserves and Surplus 3,370.58
7) Capital work in progress 314.69
2.5 Awards:-
1) Kansai Nerolac Paints Limited won the prize for “Best of Best Practices” held between
all Kansai Paints subsidiaries across the world.

2) Kansai Nerolac Paints was named as one of the 40 most valuable Indian brands of 2019
by interband, one of the world’s leading brand consultancies.

3) Economic Times recognized Kansai Nerolac as one of the Best Brands in 2018-2019.

4) Kansai Nerolac Paints Limited received the “Best Supplier” award at the Honda
Motorcycle & Scooters India vendor conference held at Gurgaon.

2.6 Products/Services of the Company:-

Company provides products/ services such as:-
a) Wonderwood Gloria, Impressions Ultra HD, Nerofix Adhesive which are newly
launched.
b) The company has launched products in the Rebar Powders segment which is expected to
grow further in times.
c) The company is popular for decorative paint.
d) Also Interior wall paints and Exterior wall paints.
e) Wood coatings, Metal Enamel Paints, Paint Ancillary.

2.7) Future Plan of the Company:-

1) To be 1st in position in decorative paint.
2) Also to expand the subsidiaries.
2.8) Organizational Chart:-
MANAGEMENT
NAME OF PERSON DESIGNATION
P.P SHAH CHAIRMAN
H.M. BHARUKHA VICE CHARIRMAN AND MANAGING
DIRECTOR
N.N. TATA DIRECTOR
BRINDA SOMAYA DIRECTOR
ANUJ JAIN WHOLE TIME DIRECTOR
G.T. GOVINDARAJAN CO.SECRETARY
HIDESHI HASEBE NON EXECUTIVE DIRECTOR
HITOSHI NISHIBAYASHI NON EXECUTIVE DIRECTOR
P.D PAI CHIEF FINANCIAL OFFICER
SONIA SINGH INDEPENDENT DIRECTOR
 Chapter No. 3
Conceptual Framework

3.1 Introduction:-
Ratio analysis is the process of identifying the financial strength and weaknesses of
the firm and establishing relationship between the items of the balance sheet and profit &
loss account.
Ratio analysis is the calculation and comparison of ratios, which are derived from the
information in a company’s financial statements.

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

3.3 Definition:-
According to the Hornby A.S. ratio analysis is “a relation between two amount
determined by the number of times one contains the other”

3.4 Characteristics:-
1. Financial Statements Analysis: -
It enables the financial statements user to make informed decisions about the company.
2. Forecasting and Planning:-
The trend in costs, sales, profits and other facts can be known by computing ratios of
relevant accounting figures of last few years.
3. Inter Firm Comparison: -
Comparison of performance of two or more firms reveals efficient and inefficient firms,
thereby enabling the inefficient firms to adopt suitable measure
4. Aid to Decision Making: -
Ratio analysis help to take decisions like whether to supply goods on credit to a firm,
whether bank loans will be made available etc.

3.4 Importance:-
1. Analysis of financial position:-
Ratio analysis is an analytical process which helps to analysis of financial position of
business organization.
2. Comparison of performance:-
It helps to compare between current performances with previous and helps to ascertain
financial statements.
3. Measurement of operating efficiency:
It also helps organization to measureefficiency and helps to identify and monitor company
issues.
4. Inter-firm comparison:
This process helps business organization to compare its performance with other
organization. The best way of inter-firm comparison is to compare the relevant ratios of the
organization with the average ratios of the industry.
5. Financial Forecasting and Planning:
Planning and forecasting can be done only by knowing the past and the present. Ratio help
the management in understanding the past and the present of the unit. These also provide
useful idea about the existing strength and weaknesses of the unit. This knowledge is vital
for the management to plan and forecast the future of the unit.

3.5 Advantages:-
1. Budgeting: -
Budget is an estimate of future activities on the basis of past experience. Accounting ratios
help to estimate budgeted figures.
2. Measurement of Operating Efficiency: -
Ratio analysis indicates the degree of efficiency in the management and utilization of its
assets. Different activity ratio indicate the operational efficiency.
3. Indication of Liquidity Position:-
Ratio analysis helps to assess the liquidity position i.e. short-term debt paying ability of a
firm. Liquidity ratio indicate the ability of the firm to pay and help in credit analysis by
banks, creditors and other suppliers of the short term loans.
4. Control of Performance and Cost :- Ratios may also be used for control of
performances of the different divisons or departments of an undertaking as well as control of
costs.

3.6 Disadvantages:-
1. Historical Information: - Financial statements provide historical information. They do
not reflect current conditions. Hence, it is not useful in predicting the future.
2. Lack of Standard of Comparison: - No fixed standards can be laid down for ideal
ratios. So there is lack of standard comparison.
3. Window Dressing: - The term “window dressing” means presenting the financial
statements in such a way to show a better position, than what it actually is
4. Changes in Price Level: - Fixed assets show the position statement at cost only. Hence, it
does not reflect the changes in price level. Thus, it makes comparison difficult.

3.7 Classification of Ratio:-

A) Liquidity Ratio: -
Liquidity ratio measure the adequacy of current and liquid assets and help evaluate the
ability of the business to pay its short-term debts. The ability of a business to pay its short-
term debts is frequently referred to as short-term solvency position or liquidity position of
the business. Generally a business with sufficient current and liquid assets to pay its current
liabilities as and when they become due is considered to have a strong liquidity position and
a businesses with insufficient current and liquid assets is considered to have weak liquidity
position.
(a)Current Ratio: - Current ratio (also known as working capital ratio) is a popular
tool to evaluate short-term solvency position of a business. Short-term solvency refers to the
ability of a business to pay its short-term obligations when they become due. Short term
obligations (also known as current liabilities) are the liabilities payable within a short period
of time, usually one year. A higher current ratio indicates strong solvency position and is
therefore considered better. Standard current ratio is 2:1.

Current Ratio= Current Assets

Current Liability

(b)Quick Ratio: -
Quick ratio (also known as “acid test ratio” and “liquid ratio”) is used to test the ability of a
business to pay its short-term debts. It measures the relationship between liquid assets and
current liabilities. Liquid assets are equal to total current assets minus inventories and
prepaid expenses. Standard Quick ratio is 1:1

Quick Ratio = Quick Assets

Quick Liabilities

B) Profitability Ratio: -
Profitability ratios measure the efficiency of management in the employment of business
resources to earnprofits. These ratios indicate the success or failure of a business enterprise
for a particular period of time.Profitability ratios are used by almost all the parties connected
with the business.A strong profitability position ensures common stockholders a higher
dividend income and appreciation in the value of the common stock in future.
(a) Operating Profit Ratio: -
It indicates profitability of entire business after meeting all operating cost including direct
and indirect cost of administrative and distribution expenses.

Operating Profit Ratio = Operating Profit × (100)

Sales

(b) Net Profit Ratio: -

It shows the overall efficiency of the business. Higher the ratio indicates higher efficiency of
business and better utilization of total resources. In addition it indicates efficiency of
financing operations as well as tax management.

Net profit after tax

Net Profit Ratio = × 100
Sales

(C) Turnover Ratio: -

Turnover ratio (also known as activity ratio) measure the efficiency of a firm or company in
generating revenues by converting its production into cash or sales. Generally a fast
conversion increases revenues and profits. Turnover ratios show how frequently the assets
are converted into cash or sales and, therefore, are frequently used in conjunction with
liquidity ratios for a deep analysis of liquidity.

(a) Inventory Turnover Ratio: -

It indicates number of times the replacement of inventory during the given period usually a
year. Higher the ratio more efficient is the management of inventory. But higher inventory
turnover ratio is not always good if it is lower level of inventory because it invites problem
of frequency stock outs and loss of sales and customer or goodwill.
Cost of Goods Sold
Inventory Turnover Ratio =
Average Stock in Hand

(b) Fixed Assets Turnover Ratio: - Fixed assets turnover ratio (also known as sales to
fixed assets ratio) is a commonly used turnover ratio that measures the efficiency with which
a company uses its fixed assets to generate its sales revenue. It is computed by dividing
net sales by average fixed assets.

Net Sales
Fixed Asset Turnover =
Ratio Fixed Assets

(c) Debtors Turnover Ratio: - Debtors turnover ratio (also known as receivables turnover
ratio) is computed by dividing the net credit sales during a period by average receivables.
Accounts receivable turnover ratio simply measures how many times the receivables are
collected during a particular period. It is a helpful tool to evaluate the liquidity of
receivables.

Debtors + Bills Receivable

Debtors Turnover Ratio = × 100
Total Credit Sales
 Chapter No. 4

Data Analysis & Interpretation

4.1 Introduction
4.2 Data Analysis & Interpretation
4.2.1 Current Ratio
4.2.2 Quick Ratio
4.2.3 Operating Profit Ratio
4.2.4 Net Profit Ratio
4.2.5 Inventory Turnover Ratio
4.2.6 Debtors Turnover Ratio
4.2.7 Fixed Assets Turnover Ratio
 DATA ANALYSIS & INTERPRETATION
4.1 Introduction:-
Data collection is the systematic recording of information; data analysis involves working
to uncover patterns and trends in data sets; data interpretation involves explaining those
patterns and trends. Before the data can be tabulated meaningful categories must established
and coded the answer thus collected are processed eliminating intermediate stirs. The
analysis is the application of resources to understand and interpret data that have been
collected. In this study a simple descriptive research is used, where in analysis involves
determining consistent patterns and summarizing the appropriate details.

4.2 Data Analysis and Interpretation:-

Data interpretation refers to the implementation of process through which data is reviewed
for the purpose of arriving at an informed conclusion. The interpretation of data assigns a
meaning to the information analyzed and determined its significant and implications. The
importance of data interpretation is evident and this is why it needs to be done properly.
Data is very likely to arrive from multiple sources and has a tendency to enter the analysis
process with haphazard ordering. Data analysis trends to extremely subjective.

4.2.1 Liquidity Ratio: - To measure the liquidity of a firm the following ratios can be
calculated.

a) Current Ratio:-

Current Ratio: Current Assets

Current Liability
Table 4.2.1 a: (rupees in Crores)

Year Current Assets Current Liability Ratio

2016-17 2354.66 772.95 3.04
2017-18 2530.63 852.61 2.96
2018-19 2162.17 694.5 3.11

Interpretation:-

Graph 1:-

Current Ratio
3.15

3.1

3.05

3
Current Ratio

2.95

2.9

2.85
2016-17 2017-18 2018-19
4.2.2 Quick Ratio :-

Quick Ratio: Quick Assets

Quick Liability

Table 4.2.2 (a) :- (In Crores)

Year Quick Assets Quick Liability Ratio
2016-17 1663.35 694.5 2.39
2017-18 1724.87 852.61 2.02
2018-19 1109.4 772.95 1.43

Interpretation:-

Graph 2 :-

Quick Ratio
3

2.5

1.5
Quick Ratio

0.5

0
2016-17 2017-18 2018-19
4.2.3 Operating Profit Ratio:-
Operating Profit EBTI
Ratio = × 100
Sales

Table 4.2.3(a)
(in crores)
Year EBIT SALES RATIO
2016-17 824.18 3999.07 20.60%
2017-18 861.1 4586.57 18.77%
2018-19 803.88 5173.62 15.53%

Interpretation :-

Graph 3:-

Operating Profit Ratio

25.00%

20.00%

15.00%

Operating Profit Ratio

10.00%

5.00%

0.00%
2016-17 2017-18 2018-19
4.2.4 Net Profit Ratio:-

Net Profit Net Profit

Ratio = × 100
Sales

Table 4.2.4:-
(In Crores)
Year Net Profit Sales Ratio
2016-17 505.94 3999.07 12.65%
2017-18 516.4 4586.57 11.25%
2018-19 467.35 5173.62 9.03%

Interpretation:-

Graph 4 :-

Net Profit Ratio

14.00%

12.00%

10.00%

8.00%

Net Profit Ratio

6.00%

4.00%

2.00%

0.00%
2016-17 2017-18 2018-19
4.2.5:- Inventory Turnover Ratio

Inventory Turnover Net Sales

Ratio =
Closing Stock

Table 4.2.5 :-
(In Crores)
Year Net Sales Closing Stock Ratio
2016-17 3999.07 691.31 5.78
2017-18 4586.57 805.76 5.69
2018-19 5173.62 1052.77 4.91

Interpretation:-

Graph 5:-

Inventory Turnover Ratio

6

5.8

5.6

5.4

5.2
Inventory Turnover Ratio
5

4.8

4.6

4.4
2016-17 2017-18 2018-19
4.2.6:- Debtors Turnover Ratio

Debtors Turnover Total Sales

Ratio =
Account Receivables

Table 4.2.6 (In Crores)

Year Total Sales Account Receivables Ratio
2016-17 3999.07 691.31 5.68
2017-18 4586.57 805.76 5.69
2018-19 5173.62 1052.77 4.91

Interpretation:-

Graph 6:-

Debtors Turnover Ratio

6

5.8

5.6

5.4

5.2
Debtors Turnover Ratio
5

4.8

4.6

4.4
2016-17 2017-18 2018-19
4.2.7:- Fixed Assets Turnover Ratio

Fixed Assets Turnover Income from Services

Ratio =
Net Fixed Assets

Table 4.2.7:-
(In Crores)
Year Income From Net Fixed Assets Ratio
Services
2016-17 4126.82 1088.72 3.79
2017-18 4772.35 1349.67 3.53
2018-19 5433.48 1630.60 3.32

Interpretation:-

Graph 7:-

Fixed Assets Turnover Ratio

3.9

3.8

3.7

3.6

3.5

3.4 Fixed Assets Turnover Ratio

3.3

3.2

3.1

3
2016-17 2017-18 2018-19
4.2.8:- Total Assets Turnover Ratio

Total Assets Turnover Income from Services

Ratio = Total Assets

Table 4.2.8:- (In Crores)

Year Income from Services Total Assets Ratio
2016-2017 4126.82 3597.36 1.14
2017-2018 4772.35 4067.86 1.17
2018-2019 5433.48 4305.92 1.26

Interpretation:-

Graph 8:-

Total Assets Turnover Ratio

1.28
1.26
1.24
1.22
1.2
1.18
Total Assets Turnover Ratio
1.16
1.14
1.12
1.1
1.08
2016-2017 2017-2018 2018-2019
 Chapter No. 5
Findings, Suggestions & Conclusion

5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusion
Bibliography
Appendices